Canara Bank rose 2.70% to Rs 157.75 after the bank's board approved the capital raising plan of the bank for the year 2021-22 amounting upto Rs 9000 crore by way of equity and debt instruments.
The bank's board has approved raising of equity share capital amounting up to Rs 2500 crore (including premium) by way of Qualified Institutional Placement (QIP) during the Financial Year 2021-22 (FY22).
It has also approved raising of capital via issue of Additional Tier I Basel III Compliant Bonds to the extent of Rs 4000 crore and Additional Tier II Basel III Compliant Bonds to the extent of Rs 2500 crore during FY22.
The fund-raising plans are subject to market conditions and necessary approvals.
Canara Bank is a public sector bank. The Government of India held 69.33% stake in the state-owned commercial bank as of 31 March 2021. As on 31 March 2021, the bank had 10,416 number of branches, out of which 3,069 are Rural, 3,140 Semi- Urban, 2,094 Urban and 2,113 Metro along with 13,452 ATM.
The public sector bank's net profit stood at Rs 1010.87 crore in Q4 FY21 compared with net loss of Rs 3,259.33 crore in Q4 FY20. Total income increased 51.33% to Rs 21,522.60 crore in Q4 FY21 over Q4 FY20.
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