Canara Bank raises Rs 1,012 crore by issuing Basel III bonds

Canara Bank on September 11 said it has raised Rs 1,012 crore by issuing Basel III compliant bonds. The bank has issued and allotted Basel III compliant additional tier I bonds amounting to Rs 1,012 crore, it said in a regulatory filing.

The bank said it has issued a total of 10,120 non-convertible, perpetual, taxable, subordinated, fully paid up, unsecured bonds carrying coupon rate of 8.30 percent. There were a total of three allottees to this bond issuance, said the state-owned lender.

Under the globally accepted Basel-III capital regulations, banks need to improve and strengthen their capital planning processes. Basel III norms are being implemented in phases since 2013 by the Indian banks to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks.