Canara Bank & ICICI Bank line up ₹7,500 crore bond raises to bolster capital ratios

and are set to raise a combined ₹7,500 crore from the bond market this week, reflecting strong capital-planning activity by large lenders. ICICI Bank plans to issue ₹4,000 crore of 15-year Tier-2 bonds on November 27 (₹1,000 crore base, ₹3,000 crore green shoe) at around a 7.45% coupon, while Canara Bank will follow on November 28 with ₹3,500 crore of AT1 bonds (₹1,000 crore base) to keep its capital adequacy above 16%.​ Key details * ICICI Bank’s issue: Tier-2, 15-year, ₹4,000 crore, coupon ~7.45%; it already raised ₹1,000 crore in June and had a total capital adequacy of 17% with Tier-1 at 16.35% as of September 30.​ * Canara Bank’s issue: AT1 bonds of ₹3,500 crore, first AT1 issuance by any bank this fiscal, aimed at supporting strong capital ratios and future growth.​ * J&K Bank board is also meeting to consider Tier-1 / Tier-2 capital raising, with an overall approval to raise up to ₹9,500 crore this year.​ Why it matters These issues signal sustained credit-growth readiness and proactive capital management by Indian banks, while offering investors a chance to lock into higher-yield bank paper across AT1 and Tier-2 segments. Demand, pricing, and subscription quality will be key indicators of current appetite for bank credit risk at this stage in the rate and credit cycle. Source: The Economic Times No Recommendations