New Delhi, June 2 (IANS) State-owned Canara Bank has approved a plan to raise up to Rs 8,500 crore through debt instruments during FY27 as the lender looks to strengthen its capital base and support future business growth.

In an exchange filing, the public-sector bank said its board had approved raising up to Rs 4,500 crore through Basel III-compliant Additional Tier I (AT1) bonds and up to Rs 4,000 crore through Basel III-compliant Tier II bonds.

The fundraising will be carried out during FY27, subject to market conditions and regulatory approvals.

The decision was taken at the bank’s board meeting held on June 2. The proposed capital infusion is aimed at improving the lender’s capital adequacy position and providing greater flexibility to support credit expansion amid rising loan demand.

Shares of Canara Bank ended 1.13 per cent higher at Rs 129.40 on the National Stock Exchange (NSE) ahead of the announcement.

The fundraising plan comes during a key leadership transition at the bank. Earlier this week, Canara Bank announced that Brajesh Kumar Singh had taken charge as the Managing Director and Chief Executive Officer following a government notification dated May 30.

Singh’s tenure will continue until April 30, 2029, or until further orders from the government.

Prior to joining Canara Bank, he served as Executive Director at Indian Bank, where he handled responsibilities related to corporate credit, retail banking, human resources and strategic operations.

The capital raise announcement also follows the bank’s March quarter earnings, which showed pressure on profitability despite continued improvement in asset quality.

Canara Bank reported a net profit of Rs 4,505 crore for the quarter ended March 2026, marking a decline of 9.9 per cent from the year-ago period, primarily due to lower other income.

Net interest income during the quarter rose 4 per cent year-on-year to Rs 9,809 crore.

Meanwhile, the bank’s gross non-performing asset (NPA) ratio improved to 1.84 per cent from 2.08 per cent in the previous quarter.

Net NPAs stood at 0.43 per cent, compared with 0.45 per cent in the December quarter.

–IANS

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