CANARA BANK GETS BOARD NOD TO RAISE FUNDS

NEW DELHI: State-owned Canara Bank is looking to raise up to ₹9,000 crore through equity and debt this financial year, as per the approval granted by the board of directors on Friday.

The board of directors of the bank approved the capital raising plan for the year 2021-22 amounting up to ₹9,000 crore by way of equity and debt instruments, the bank said in a regulatory filing.

Under this capital raise approval, the bank will raise equity capital amounting up to ₹2,500 crore by way of qualified institutional placement (QIP) during the current fiscal it said.

Capital up to ₹4,000 crore is to be raised by issuing additional tier I Basel III compliant bonds, and the rest of ₹2,400 crore is to be raised by issuing additional tier II Basel III compliant bonds. The bank said the debt instruments will be issued subject to market conditions and necessary approvals.