Canara Bank has received approval from the Reserve Bank of India to exercise a call option on its Basel III Additional Tier 1 bonds worth ₹1,500 crore.

RBI approval for AT1 bond call option

The Reserve Bank of India vide letter ref: DOR.CAP.S4776/21-01-002/2026-27 dated September 15, 2026, granted permission to the bank for exercising the call option. The approval is subject to the terms of issue and all applicable laws and regulations.

This regulatory green light pertains to Canara Bank's Basel III compliant Additional Tier 1 (AT1) bonds with ISIN INE476A08126. AT1 bonds are perpetual debt instruments issued by banks to strengthen their capital base under the Basel III framework. A call option allows the issuer to redeem these bonds before their scheduled perpetual tenure.

Key details of the bond action

The following table summarises the key parameters of this development:

The RBI's approval allows Canara Bank to proceed with the redemption of these AT1 instruments. The bank is currently in the process of exercising the call option as per the terms of issuance.

Canara Bank confirmed the timely payment of annual interest on its Additional Tier I bonds, crediting ₹159.80 crore to bondholders on September 15, 2026.

The payment relates to the bank’s Non-Convertible, Taxable, Perpetual, Subordinated, Fully Paid UP, Unsecured Basel III Compliant Additional Tier I Bond. The interest was disbursed via RTGS, NEFT, IBA, or DD modes as per the terms of issue.

Payment Details

The record date for the interest payment was August 31, 2026. The due date and actual payment date both fell on September 15, 2026, with no delays reported. The last interest payment was made on September 15, 2025.

Santosh Kumar Barik, Company Secretary, signed the disclosure under Regulation 57 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.