Canara Bank plans to raise upto ₹5,000 crore capital via tier-2 bonds

Canara Bank, on Tuesday, February 24, announced that it plans to raise up to ₹5,000 crore through the issuance of Tier 2 bonds.

In a press release, the public sector commercial bank stated that it will raise the proposed issue of the Basel III-compliant Tier 2 bond, comprising a base issue of ₹2,000 crore with a green shoe option of up to ₹3,000 crore.

Tier-2 bonds are long-term subordinated debt instruments that banks issue to strengthen their capital base.

The issue is scheduled on Thursday, February 26, 2026, on the electronic bidding platform of the National Stock Exchange (NSE).

Canara Bank is launching the ₹5,000 crore issue to “strengthen its capital base and support future growth plans.”

Canara Bank Q3 results

The bank reported a 25.6% year-on-year (YoY) growth in its net profit to ₹5,155 crore in the third quarter of the 2025-26 financial year (Q3 FY26), compared to the same period last year.

Its net interest income (NII) increased by 1.1% to ₹9,252 crore for the reporting quarter.

Its asset quality improved, as its gross non-performing assets (GNPA) contracted to 2.08% from 2.35% in the previous quarter. Similarly, its net NPA stood at 0.45%, in comparison to 0.54% in Q2 FY26.

Canara Bank stock performance

Shares of Canara Bank closed 0.38% higher at ₹157.03 per unit on the NSE on Tuesday.

The scrip has gained more than 5% in the past week and 3% over the month. On a year-to-date basis, it has surged 2%.

While the stock hit a 52-week high of ₹160.79 on January 29, 2026, it touched a year’s low of ₹78.60 per equity share on March 3, 2025.

Canara Bank has a total market capitalisation of ₹1.43 lakh crore, as of February 24, 2026, according to data on the NSE.