Canara Bank has successfully completed its annual interest payment and redemption obligations for Basel III Tier II bonds, crediting a total amount of ₹814.65 crores to bondholders on December 18, 2025. The bank informed both BSE and NSE about the timely completion of payments under Regulation 57 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Payment Structure and Details

The total payment of ₹814.65 crores was distributed to holders of Unsecured Redeemable, Non-Convertible, Fully Paid Up, Basel III Compliant, Tier II Bonds in the nature of Debentures. The bank processed these payments through multiple modes including RTGS, NEFT, IBA, and DD as per the original terms of issue.

Interest Payment Specifications

The annual interest component covered bonds with ISIN number INE667A08047, with the interest payment record date set as December 3, 2025. The bank maintained its commitment to timely payments, with the actual payment date matching the scheduled due date of December 18, 2025.

Redemption Details

The redemption component involved 7,500 Non-Convertible Debentures (NCDs) with a face value redemption approach. The redemption was processed on a maturity basis, with both the due date and actual redemption date falling on December 18, 2025.

Regulatory Compliance

Canara Bank's announcement demonstrates adherence to regulatory requirements under SEBI listing obligations. The bank provided comprehensive details of both interest and redemption payments to stock exchanges, ensuring transparency for bondholders and market participants. Company Secretary Santosh Kumar Barik signed the regulatory filing, confirming the completion of all payment obligations within the stipulated timeframe.

Canara Bank , a major Indian public sector bank, has successfully raised ₹35 billion through the issuance of Basel III compliant Additional Tier I bonds. This strategic move is set to strengthen the bank's regulatory capital position and enhance its ability to meet Basel III capital adequacy requirements.

Capital Raising Details

Significance of the Bond Issuance

The successful bond issuance by Canara Bank carries several implications for the bank's financial health and regulatory compliance:

1. Capital Adequacy: The additional ₹35 billion will boost Canara Bank's Tier I capital, a crucial component of a bank's overall capital structure.

2. Regulatory Compliance: By raising these funds, Canara Bank is proactively addressing the Basel III capital adequacy requirements, which are designed to improve the banking sector's ability to absorb shocks arising from financial and economic stress.

3. Financial Stability: The strengthened capital position is likely to enhance the bank's stability and its capacity to support lending activities.

4. Investor Confidence: The successful bond issuance may indicate strong investor confidence in Canara Bank's financial health and future prospects.

This capital raising exercise demonstrates Canara Bank's commitment to maintaining a robust capital base and adhering to global banking standards. As the banking sector continues to evolve with stricter regulatory requirements, such proactive measures are crucial for ensuring long-term stability and growth.