Canara Bank to raise Rs 3,400 cr in capital via Additional Tier-I bonds

Ind-Ra said the bank is unlikely to witness a capital erosion in FY22

Public sector lender Canara Bank is planning to raise up to Rs 3,400 crore in capital by issuing fresh Additional Tier-I bonds (AT1) to replace maturing bonds and support growth.

The bonds worth around Rs 2,500 crore are maturing in the current financial year. The bank has not fixed the time for fresh AT1 bonds for now, bank officials said. India Ratings (Indi-Ra) has assigned “AA\stable” rating for proposed offering of AT1 bonds.

The bank is also likely to raise equity capital of up to Rs 2,500 crore from institutional investors in the current quarter (Q2FY22) after announcing results for