Canara Bank Share Price Rises 1% Following ₹5,000 Crore Bond Issue Announcement

Canara Bank Fundraising Plans

Key Highlights

• ₹5,000 crore: Canara Bank plans to raise up to this amount through the issue of Tier 2 bonds to bolster capital adequacy and fund future growth.
• ₹2,000 crore: Base size of the proposed Basel III-compliant Tier 2 bond issue.
• ₹3,000 crore: Green shoe option for the bond issue.
• Thursday, February 26, 2026: Scheduled date for the bond issue, which will be conducted through the electronic bidding platform of the National Stock Exchange (NSE).

Capital Adequacy and Fundraising

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Canara Bank aims to strengthen its capital base and support future growth plans through the proposed fundraising. The bank will issue Tier 2 bonds, which are long-term subordinated debt instruments used to enhance capital structure and meet regulatory requirements.

Share Performance

The bank's share price advanced 1% to an intra-day high of ₹158.80 on February 24, 2026, and is just 1.4% away from its 52-week high of ₹160.80. The stock has been positive in recent times, rising 86% in 1 year, 45% in 6 months, and 6% in 3 months.

Recent Financial Performance

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Canara Bank reported a strong performance in the third quarter of FY26, with net profit rising 25.6% year-on-year to ₹5,155 crore. Net interest income (NII) for the quarter edged up 1.1% to ₹9,252 crore. The bank also posted an improvement in asset quality, with gross non-performing assets (GNPA) declining to 2.08% in Q3 FY26 from 2.35% in the previous quarter.

Business Performance

Gross advances rose 14% year-on-year to ₹11.92 lakh crore at the end of December 2025, driven by growth in the retail, agriculture, and MSME (RAM) segment, which expanded by nearly 19%.

Capital Position

As of December 31, 2025, Canara Bank's capital to risk-weighted assets ratio (CRAR) stood at 16.50%, reflecting a comfortable capital position. The lender had earlier strengthened its capital base by raising ₹3,500 crore through additional Tier 1 bonds in November 2025.