Canara Bank has successfully fulfilled its debt servicing obligations by completing the annual interest payment on its Basel III compliant Tier II bonds on December 24, 2025. The bank credited ₹1,772.5 crores to bondholders' accounts through electronic transfer modes, demonstrating its commitment to timely debt service.

Bond Payment Details

The interest payment pertains to unsecured, subordinated, non-convertible, redeemable, fully paid-up, taxable Basel III compliant Tier II bonds in the nature of debentures. The bank transferred the funds to bondholders through multiple payment channels including RTGS, NEFT, IBA, and demand draft modes as specified in the original terms of issue.

Regulatory Compliance

The bank informed both BSE Limited and National Stock Exchange of India about the successful interest payment in compliance with Regulation 57 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was filed under reference number SD:410/411/11/12:2025-26, ensuring full transparency with regulatory authorities and market participants.

Bond Characteristics

These Basel III compliant Tier II bonds serve as supplementary capital instruments for the bank, supporting its regulatory capital requirements. The bonds carry annual interest payment obligations and represent a significant component of Canara Bank's capital structure. The timely payment reflects the bank's strong financial position and commitment to honoring its debt obligations.

Payment Execution

Canara Bank executed the interest payment seamlessly on the scheduled due date without any delays or complications. The bank utilized multiple electronic payment channels to ensure efficient fund transfer to all bondholders. This marks the continuation of the bank's consistent track record in meeting its debt service obligations as per the agreed terms and conditions.

Canara Bank has been added to the BSE Bankex index as part of today's index restructuring exercise. The inclusion took effect at 3:00 PM today, marking a significant milestone for the public sector banking institution.

Index Addition Details

The BSE Bankex restructuring represents a periodic review and adjustment of the banking sector index composition. Canara Bank's addition to this benchmark index reflects its market performance and sectoral standing among banking stocks.

Market Implications

Index inclusions typically carry positive implications for stocks, as they often result in increased institutional interest and potential fund flows. Fund managers who track the BSE Bankex may need to purchase Canara Bank shares to maintain their portfolio alignment with the index composition.

The BSE Bankex serves as a key benchmark for the banking sector, tracking the performance of major banking stocks listed on the Bombay Stock Exchange. Canara Bank's inclusion in this index positions it among the prominent banking institutions represented in this sectoral benchmark.

About the Development

This index restructuring exercise demonstrates the dynamic nature of market indices, which undergo periodic reviews to ensure they accurately represent their respective sectors. For Canara Bank, this addition represents recognition of its market position within the banking sector.