Canara Bank rises on raising Rs 1,635 cr through tier-I bonds

State-owned Canara Bank on Thursday said it has raised Rs 1,635 crore through issuance of additional tier-I bonds.

Canara Bank rose 1.40% to Rs 130.75 after the bank issued and allotted Basel III compliant additional tier-I bonds amounting to Rs 1,635 crore.

The PSU bank allotted 16,350 units of 8.50%, non-convertible, perpetual, taxable, subordinated, fully-paid up, unsecured basel III compliant additional tier-I bonds series III worth Rs 1,635 crore. The announcement was made after market hours yesterday, 31 December 2020.

This will help the lender increase its capital adequacy ratio.

As at September-end 2020, the bank’s capital to risk-weighted assets ratio (CRAR) stood at 12.77 per cent. Out of this, tier-I was 9.54 per cent and tier-II was 3.23 per cent.

The PSU lender reported 14.9% jump in net profit to Rs 465.88 crore on 46.2% rise in total income to Rs 22,681.05 crore in Q2 September 2020 over Q2 September 2019.

Canara Bank is a state-owned commercial bank. The Government of India held 69.33% stake in the bank as of 30 September 2020.

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