Canara Bank fundraising: Canara Bank share price added 1% on Tuesday, February 24, said it plans to raise up to ₹5,000 crore by issuing Tier 2 bonds as part of its efforts to bolster capital adequacy and fund future growth.
In a press release, the public sector lender said the fundraising is aimed to “strengthen its capital base and support future growth plans.” The proposed Basel III-compliant Tier 2 bond issue will comprise a base size of ₹2,000 crore, along with a green shoe option of up to ₹3,000 crore.
Tier 2 bonds are long-term subordinated debt instruments that banks use to enhance their capital structure and meet regulatory requirements.
The bond issue is scheduled for Thursday, February 26, 2026, and will be conducted through the electronic bidding platform of the National Stock Exchange (NSE), Canara Bank added.
Canara Bank Share performance
The PSU stock advanced as much as 1% to its intra-day high of ₹158.80. It is just 1.4% away from its 52-week high of ₹160.80, hit in January 2026. Meanwhile, it touched its 52-week low of ₹78.58 in March 2025.
The stock has been positive in recent times, rising 86% in 1 year, 45% in 6 months and 6% in 3 months. In last 1 month as well, it added over 4%.
Moreover, in the long term, it gave multibagger returns to its investors, rallying 383% in 5 years.
Canara Bank Q3 results
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 compared with the corresponding quarter last year.
Net interest income (NII) for the quarter edged up 1.1% to ₹9,252 crore.
The bank also posted an improvement in asset quality. Gross non-performing assets (GNPA) declined to 2.08% in Q3 FY26 from 2.35% in the previous quarter, while net NPA improved to 0.45% from 0.54% in Q2 FY26.
In November, the state-owned lender revised its advance growth guidance upward to 13% for the current financial year, from an earlier estimate of 10–11%.
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.
On the business front, gross advances rose 14% year-on-year to ₹11.92 lakh crore at the end of December 2025. Growth was primarily driven by the retail, agriculture and MSME (RAM) segment, which expanded by nearly 19%, while corporate credit increased at a relatively modest pace of 7%.
