Canara Bank raises $300 million through MTN bonds; stock trades lower

The bank stated that the net proceeds from the issue of the notes will mobilised by the bank’s IFSC banking unit towards general corporate purposes of the IFSC banking unit or any other offshore branch of the bank. The funds will also be utilised to fund, develop, and expand the business of the IFSC banking unit or any other offshore branch of the bank.

The bank stated that the bonds will be listed on the Singapore Exchange Securities Trading and Global Securities Market of the India INX IFSC. Further, the bank reported that the net proceeds from the issue are not intended to be repatriated to India or earn any income within the country.

For the first quarter of FY25, the bank reported a 10.47% year-on-year (YoY) rise in net profit to ₹3,905 crore. The bank’s gross advances came in higher by 9.86% YoY to ₹9,75,183 crore while global deposits for the quarter clocked in growth of 11.97% YoY to ₹13,35,167 crore. The bank’s global business climbed higher by 11.07% YoY to ₹23,10,350 crore.

In Q1FY25, the bank reported a 101 basis points (bps) YoY decline in its gross non-performing assets ratio to 4.14%. Meanwhile, the net non-performing asset ratio declined 33 bps YoY to 1.24%. The bank’s provision coverage ratio for the quarter improved by 118 bps to 89.22%.

At the end of the quarter, the bank had a total of 9,623 branches which includes 4 overseas branches.

Shares of the company have risen by nearly 22% since the beginning of the year. The stock has gained over 59% in the past year.