Canara Bank has confirmed the timely payment of ₹149.60 crore in annual interest on its Unsecured Subordinated Tier 2 Bonds. The payout was credited to bondholders' accounts on August 27, 2026.

The bank issued this disclosure under Regulation 57 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The payment corresponds to the bond series with ISIN INE476A08175, which has an issue size of ₹2,000 crore.

Payment Details

The interest payment was scheduled for August 26, 2026. However, as this date fell on a holiday, the bank executed the transfer on the next business day, August 27, 2026, in accordance with the terms of the Information Memorandum.

Funds were transferred via RTGS, NEFT, IBA, or DD modes. The last interest payment for this series was made on August 26, 2025. There were no delays or non-payments reported for this cycle.

Canara Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) upwards by 5 basis points for tenors ranging from one month to three years, effective August 12, 2026. The Overnight MCLR remains unchanged at 7.95%. This adjustment signals a slight tightening in the bank’s lending cost structure, which may lead to marginal increases in EMIs for borrowers with floating-rate loans linked to these specific tenors.

The bank notified the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) of the rate changes on August 11, 2026. Santosh Kumar Barik, Company Secretary, signed the communication confirming the new rates. The revisions apply to all existing and new loans priced off the MCLR benchmark, impacting both retail and corporate segments.

Revised MCLR Rates

The following table details the existing MCLR rates compared to the revised rates effective August 12, 2026:

Impact on Borrowers

Borrowers with home loans, personal loans, or business loans linked to the One Month, Three Month, Six Month, One Year, Two Year, or Three Year MCLR tenors will see their interest rates increase by 0.05 percentage points. For instance, a loan previously priced at 8.25% under the Three Month MCLR will now be priced at 8.30%. Loans linked to the Overnight MCLR are unaffected by this revision.

What the Numbers Show

The uniform 5 basis point hike across all active tenors suggests a broad-based adjustment in the bank’s cost of funds or risk premium, rather than a targeted change for specific loan durations. The retention of the Overnight MCLR at 7.95% indicates stability in the shortest-term funding costs, while the incremental increases in longer tenors reflect the bank’s strategy to maintain margins over extended periods. This modest adjustment is consistent with gradual monetary policy transmission rather than a sharp shift in lending sentiment.