The board of directors gave its nod for the capital raising programme at a meeting held on Thursday.
The capital will be raised through debt instruments, specifically Basel III-compliant additional Tier-I and Tier-II bonds. The plan is subject to market conditions and requisite approvals, the bank informed the stock exchanges.
As part of the plan, the bank will raise up to ₹3,500 crore via additional Tier-I bonds and up to ₹6,000 crore through Tier-II bonds during the current financial year.
In a related development, Canara Bank has also announced a revision in its Marginal Cost of Funds-Based Lending Rates (MCLR) across tenors, effective June 12, 2025. The revised rates are as follows:
Overnight MCLR is reduced from 8.20% to 8.00%
One Month MCLR is cut from 8.25% to 8.05%
Three Month MCLR is dropped from 8.45% to 8.25%
Six Month MCLR is slashed from 8.80% to 8.60%
One Year MCLR is brought down from 9.00% to 8.80%
Two Year MCLR is lowered from 9.15% to 8.95%
Three Year MCLR comes down from 9.20% to 9.00%
The rate cut is expected to provide relief to borrowers and support credit demand.
