Canara Bank will raise Rs 1,500 crore Tier-I capital to support asset growth in the current financial year and maintain comfortable capital adequacy.
"Board of the Bank,...Accorded permission to raise additional Tier-I instruments amounting to Rs 1,500 crore through issue of Basel III complaint additional Tier-I prpetual bonds by way of private placement," the bank said in a filing to the BSE.
The bank said it will raise capital to support the asset growth during 2014-15 and maintain comfortable level of Capital to Risk Assets Ratio (CRAR).
Further, the bank board has also permitted to constitute a Bond Committee to determine the structure of the issue size, tenor, coupon, timing of the issue and to decide on the other connected matters.
"Accordingly, the bank is taking the necessary steps in this regard," it said.
