Canara Bank To Raise Rs 24,000 Cr From Bond Sale

19 November,New Delhi

State-owned Canara Bank will raise Rs 24,000 crore from the capital market by way of private placement of bonds as per efforts to comply with global BASEL III banking rules.

The board of directors has permitted the bank to raise additional capital of Rs 2400 crore through issue of BASEL-III compliant Tier II bonds by way of private placement at a coupon rate as decided by the Bond Committee of the Bank to support the asset growth during 2015-16 & also to maintain healthy level of CRAR, the bank said in a statement.In August, the bank had raised Rs 947 crore through preferential allotment of equity shares.

The government had allowed seven state-run banks to raise capital from market as part of efforts to help them comply with global Basel III banking rules in the beginning of the year.

The government in its budget has allocated Rs 7,940 crore for capital infusion in state-banks.Top lender State Bank of India and at least two other state-owned lenders have plans to raise funds through share sales.