Canara Bank has successfully completed the full redemption of its Basel III Additional Tier 1 bonds, paying a total amount of Rs. 129,96,00,000/- to bondholders on February 2, 2026. The payment included both the principal redemption and annual interest components for the perpetual subordinated bonds.

Bond Redemption Details

The bank redeemed its Non-Convertible, Taxable, Perpetual, Subordinated, Fully Paid Up, Unsecured Basel III compliant Additional Tier 1 bonds through call option. The bonds carried ISIN number INE476A08118 and had an original issue size of Rs. 120,00,00,000/-.

Interest Payment Components

Alongside the principal redemption, Canara Bank also made the annual interest payment to bondholders. The interest payment was processed on the same date as the redemption, ensuring timely completion of all obligations.

Payment Execution

The total payment of Rs. 129,96,00,000/- was credited to bondholders' bank accounts through multiple electronic modes including RTGS, NEFT, IBA, and demand draft as per the original terms of issue. The bank confirmed that all payments were made on time without any delays.

The successful redemption marks the complete closure of this Basel III AT1 bond issue, with no outstanding amounts remaining. The bank has fulfilled all its obligations under Regulation 57 of SEBI (LODR) Regulations, 2015, and has duly informed both BSE and NSE about the completion of the redemption process.

Canara Bank has announced a significant upward revision in its credit growth target, raising it to 13.5% from the previously announced 10.5%. This adjustment represents a substantial increase of 3 percentage points in the bank's growth projections.

Credit Growth Target Revision

The public sector lender's decision to revise its credit growth target upwards indicates improved business confidence and market conditions. The bank has moved from a more conservative growth estimate to a more ambitious target, suggesting enhanced opportunities in the lending market.

Strategic Implications

This upward revision in credit growth targets reflects the bank's assessment of improved market dynamics and its enhanced capacity to expand lending operations. Such revisions are typically based on factors including:

• Improved demand for credit across various sectors
• Enhanced risk assessment capabilities
• Stronger capital position enabling increased lending
• Favorable market conditions supporting loan growth

The revised target of 13.5% positions Canara Bank for more aggressive expansion in its lending portfolio, indicating management's confidence in achieving higher growth rates than initially projected.