Canara Bank Board Approves Fund Raise Plan

Canara Bank's board on Friday, May 31 approved fundraising of up to 8,500 crore rupees for the financial year 2024-25 via debt instruments. 

 

Key Takeaways from Canara Bank’s Fundraising:

  • Canara Bank's board approved fundraising of up to 8,500 crore rupees for FY25 via debt instruments. 
  • The Board approved the plan to raise capital of 4,000 crore rupees through Basel III-compliant additional Tier I bonds.
  • The remaining 4,500 crore rupees through Basel III-compliant Tier II bonds during the fiscal year 2024–25.

 

‘The Board of Directors of the bank in its meeting held today on 31.05.2024 has approved the Capital Raising Plan of the bank for the financial year 2024-25 amounting up to ₹8500 Crore by way of Debt Instruments (Additional Tier I / Tier II Bonds),’ the lender informed exchanges.

 

As part of the capital raising plan, the Board approved the plan to raise capital of 4,000 crore rupees through Basel III-compliant additional Tier I bonds and 4,500 crore rupees through Basel III-compliant Tier II bonds during the fiscal year 2024–25, depending on the market conditions and necessary approvals.

 

Tier 1 and Tier 2 bonds are instruments banks use to boost their capital reserves, as the Basel III framework mandates, to enhance a bank's resilience and stability.

 

Tier 1 bonds are typically considered the highest quality capital, with greater loss-absorption capacity and flexibility during financial stress. In contrast, Tier 2 bonds provide additional loss-absorption capacity, with lower priority in the repayment hierarchy compared to Tier 1 capital.

 

About Canara Bank:

Canara Bank was founded by Ammembal Subba Rao Pai in July 1906, at Mangalore, then a small port town in Karnataka. The bank has gone through various phases of its growth trajectory over the hundred years of its existence. Canara Bank saw phenomenal growth, especially post-nationalization in 1969, attaining the status of a national-level player in terms of geographical reach and clientele segments. In June 2006, the bank completed a century of operation in the Indian banking industry. Today, Canara Bank occupies a premier position in the community of Indian banks.

 

Read More About Canara Bank Limited Share Price Here!

Related Blogs
blog-logo

Share Market

blog-logo

8 mins read . 19 Jul 2024

Stock Market Trading Time in India

  • 0 people read
blog-logo

Share Market

blog-logo

11 mins read . 19 Jul 2024

How To Trade in T2T Stocks

  • 0 people read
Kickstart your equities journey today You've got this
By submitting this I agree to the terms & conditions