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 held its Q3FY26 earnings conference call on January 29, 2026, where management discussed the bank's robust financial performance and strategic initiatives. The call was led by MD & CEO Hardeep Singh Ahluwalia along with Executive Directors Bhavendra Kumar, S.K. Majumdar, and Sunil Kumar Chugh.

Key Financial Highlights

The bank delivered impressive results across multiple parameters during the quarter. Global business reached ₹27.10 lakh crores with a growth rate of 13.23% year-on-year, while net profit stood at ₹5,155 crores, representing a substantial 25.61% increase compared to the previous year.

Asset Quality and Capital Metrics

The bank demonstrated significant improvement in asset quality parameters. GNPA declined by 126 basis points year-on-year to 2.08%, while net NPA stood at 0.45%, declining by 44 basis points. The provision coverage ratio improved substantially by 293 basis points to 94.19%.

Retail and MSME Growth

The bank showcased strong momentum in the retail and MSME segments. RAM (Retail, Agriculture, MSME) credit reached ₹7.04 lakh crores with growth of 18.70%. Retail credit demonstrated exceptional performance with 31.37% growth to ₹2.73 lakh crores, while MSME grew by 13.74% to ₹1.60 lakh crores.

Management Outlook and Strategy

During the conference call, management expressed confidence in maintaining growth momentum while addressing margin pressures from recent repo rate cuts. The bank's NIM contracted by 2 basis points due to immediate repricing of repo-linked advances, which constitute 49% of the portfolio. Management expects NIM to stabilize in the range of 2.45% to 2.50% going forward.

The bank reported strong recovery performance with ₹2,051 crores recovered from written-off accounts during the quarter. Management indicated this recovery momentum would continue, supported by various resolution mechanisms including NCLT, DRT, and SARFAESI options.