Canara Bank Plans ₹4,500 Crore AT-1 Bond Issue

Canara Bank has announced plans to raise up to ₹4,500 crore through Basel III-compliant Additional Tier 1 (AT-1) bonds as part of its capital-raising programme. The proposed issue is scheduled for September 16, 2026, through the NSE electronic bidding platform. The bank has indicated a coupon range of around 7.85%–7.90%. The AT-1 securities will be perpetual debt instruments with a five-year call option, subject to regulatory requirements. The bonds have been rated AA+ with a Stable outlook by ICRA and India Ratings. This forms part of Canara Bank's broader capital mobilisation plan, which also includes a proposed ₹4,000 crore Tier-2 bond issue. The additional capital is intended to strengthen the bank's capital base and support its business expansion. The bank is also targeting a ₹30 lakh crore total business size, with growth expected across retail, agriculture, MSME and corporate banking segments. Investor Takeaway: The proposed AT-1 issue could strengthen Canara Bank's capital position and provide additional resources to support future loan growth. However, AT-1 bonds are perpetual instruments and carry specific risks, so investors should distinguish this capital-raising exercise from conventional equity fundraising.