Canara Bank Completes ₹2,984 Crore Annual Interest Payment on Basel III Tier II Bonds

Canara Bank has successfully completed its annual interest payment obligation on Basel III compliant Tier II bonds, demonstrating the bank's commitment to timely debt servicing. The payment was executed on March 18, 2026, as per the scheduled timeline communicated to stock exchanges.

Interest Payment Details

The bank paid an annual interest amount of ₹2,984 crore to bondholders on March 18, 2026. The payment was processed through multiple electronic transfer modes to ensure seamless credit to bondholders' accounts.

Parameter	Details
ISIN Number	INE476A08258
Total Issue Size	₹4,000 crore
Interest Amount Paid	₹2,984 crore
Payment Frequency	Annual
Record Date	March 2, 2026
Due Date	March 18, 2026
Actual Payment Date	March 18, 2026

Bond Characteristics

The bonds are classified as Non-Convertible, Taxable, Subordinated, Fully Paid-up, Unsecured Basel III Compliant Tier II instruments. These bonds form part of the bank's regulatory capital structure under Basel III norms, which require banks to maintain adequate capital buffers.

Payment Mechanism

The interest payment was credited to bondholders' bank accounts through various electronic transfer methods including:

Real Time Gross Settlement (RTGS)
National Electronic Funds Transfer (NEFT)
Indian Banks' Association (IBA) clearing
Demand Draft (DD) mode

Record Date Adjustment

The bank noted that the original record date of March 3, 2026, fell on a holiday. Following SEBI guidelines, the record date was adjusted to the immediate preceding business day, March 2, 2026. This ensured proper determination of eligible bondholders for the interest payment.

Regulatory Compliance

The payment confirmation was communicated to both BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 57 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. This regulation mandates timely disclosure of debt servicing activities to maintain transparency with investors and regulatory authorities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.45%	-5.13%	-17.92%	+7.42%	+47.47%	+354.85%

Canara Bank has announced a selective revision in its Marginal Cost of Funds Based Lending Rate (MCLR) structure, effective from March 12, 2026. The bank communicated this update to stock exchanges through a regulatory filing dated March 11, 2026.

MCLR Rate Structure Changes

The revised MCLR rates demonstrate a targeted approach, with increases limited to longer-tenor lending rates. The bank has maintained stability in shorter-term rates while adjusting longer-duration lending costs.

MCLR Tenor:	Existing Rate (%)	Rate w.e.f. 12.03.2026 (%)	Change
Overnight MCLR:	7.85	7.85	No Change
One Month MCLR:	7.90	7.90	No Change
Three Month MCLR:	8.15	8.15	No Change
Six Month MCLR:	8.50	8.50	No Change
One Year MCLR:	8.70	8.70	No Change
Two Year MCLR:	8.85	8.95	+0.10%
Three Year MCLR:	8.90	9.00	+0.10%

Impact on Borrowers

The revision specifically affects borrowers with loans linked to two-year and three-year MCLR tenors. Customers with existing loans tied to these rates will see an increase of 10 basis points in their lending rates. The unchanged shorter-term rates provide stability for borrowers with loans linked to overnight, monthly, quarterly, six-monthly, and annual MCLR benchmarks.

Regulatory Compliance

The bank has fulfilled its regulatory obligations by informing both BSE Limited and National Stock Exchange of India Limited about the MCLR revision. The communication was signed by Santosh Kumar Barik, Company Secretary, ensuring proper corporate governance protocols were followed in the rate announcement process.