Canara Bank gets the green light to raise ₹9,000 crore through equity and debt this year

The board of directors of Canara Bank has approved Rs 9,000 crore in the ongoing financial year by way of equity and debt instruments.

The decision was taken the meeting of the board of directors on Friday.

"The Board of Directors of the Bank in its meeting held today on 28.05.2021 has approved the capital raising plan of the bank for the year 2021-22 amounting up to Rs 9,000 crore by way of equity and debt instruments," it said in a regulatory filing.

The approved plan includes raising equity share capital amounting up to Rs 2,500 crore, including premium, by way of Qualified Institutional Placement (QIP) during FY22 subject to market conditions and necessary approvals.

It also includes raising capital through additional tier-I Basel-III compliant bonds to the extent of Rs 4,000 crore during the FY 2021-22 subject to market conditions and necessary approvals.

The plan also involves raising capital through Additional Tier II Basel-III compliant bonds to the extent of Rs 2,500 crore during the FY22.

Around 1.12 p.m., shares of the bank on the BSE were trading at Rs 157.40, higher by Rs 3.80 or 2.47 per cent from their previous close.

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