Canara Bank board approves plan to raise ₹8,500 crore via debt instruments

The board of directors of Canara Bank on Friday, May 31, gave its nod for the plan to raise ₹8,500 crore via debt instruments. The amount is to be raised within the ongoing fiscal year.

The board, in the meeting held today, "approved the capital raising plan of the bank for the financial year 2024-25 amounting up to ₹8,500 crore," the state-run lender said in a regulatory filing.

Out of the total amount, up to ₹4,000 crore is to be raised through "Basel III Compliant Additional Tier I Bonds", and up to ₹4,500 crore via "Basel III Compliant Tier II Bonds", it added.

Both the fundraising plans will be subject to market conditions and necessary approvals, the exchange filing further noted.

However, the stock remained lower than the intraday high of ₹119.35 clocked earlier during the trading session.

How Canara Bank performed in Q4?

Earlier in May, the lender released its results for the quarter ended March 2024. The net profit rose 18.3% year-on-year to ₹3,757 crore, as compared to ₹3,174 crore in Q4FY23.

The net interest income (NII), which is the difference between interest earned and interest paid, climbed 11% year-on-year to ₹9,580 crore in Q4FY24.

The bank's board also declared a dividend of ₹16.1 per equity share, at 161% of the face value, for the fiscal year ended March 31, 2024.

Notably, Canara Bank's shares have rallied by 33% year-to-date, and the surge has been sharper at 90.5% in the last one year.