Canara Bank raises Rs 1,635 cr through AT-1 bonds

Canara Bank raises Rs 1,635 cr through AT-1 bonds

State-owned Canara Bank on Thursday said it has raised Rs 1,635 crore through the issuance of additional tier-I bonds.    

“Canara Bank has raised capital by issuing additional tier-1 (AT-1) bonds to the tune of Rs 1,635 crore at 8.50 per cent coupon on December 31, 2020,” a release said.

This will help the lender increase its capital adequacy ratio.

As of September-end 2020, the bank's capital to risk-weighted assets ratio (CRAR) stood at 12.77 per cent. Out of this, tier-I was 9.54 per cent and tier-II was 3.23 per cent.

In the second quarter ended September 2020, the bank reported a 28 per cent dip in profit after tax at Rs 444 crore compared to Rs 616 crore in the same quarter of the previous fiscal.