Canara Bank , one of India's leading public sector banks, has disclosed its interest payment schedule for Basel III Compliant Tier I and Tier II Bonds covering the period from August to December 2025. The announcement, which includes details on record dates and potential call options, reflects the bank's commitment to transparency and regulatory compliance.

Bond Portfolio Overview

The bank's bond portfolio, totaling approximately Rs 26,089.00 crore across 15 instruments, carries interest rates ranging from 7.09% to 8.62%. These bonds play a crucial role in maintaining the bank's capital adequacy under Basel III norms.

Key Highlights

• Interest Payment Dates: The bank has outlined specific interest payment dates for each bond, starting from August 26, 2025, through December 31, 2025.
• Record Dates: Corresponding record dates have been set for each interest payment, with adjustments made for holidays in accordance with SEBI guidelines and bond terms.
• Call Options: Canara Bank has announced its intention to exercise call options on four bonds, subject to RBI approval. These bonds have a combined value of Rs 2,936.10 crore.

Call Options Details

Maturity and Principal Payments

Two bonds are scheduled to reach maturity in December 2025:

1. INE667A08047 with a maturity date of 18-Dec-2025
2. INE476A09264 maturing on 31-Dec-2025

For these bonds, both principal and annual interest amounts will be paid on their respective maturity dates.

Regulatory Compliance

The bank has emphasized that the record dates are fixed to determine eligible bondholders for interest payments. This move aligns with Regulations 50 and 60 (Chapter – V) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Investor Implications

Investors holding these Basel III Compliant Bonds should take note of the specified record dates to ensure they are eligible for interest payments. The announcement of call options also signals potential changes in the bank's debt structure, which may be of interest to market analysts and investors alike.

Canara Bank's proactive disclosure of this detailed payment schedule demonstrates its commitment to keeping investors informed and maintaining transparency in its financial operations. As the banking sector continues to adapt to evolving regulatory requirements, such clear communication on Basel III compliant instruments remains crucial for both the bank and its stakeholders.

Canara Bank , one of India's leading public sector banks, has reported robust financial results for the first quarter of fiscal year 2025-26, while also announcing ambitious growth targets for the coming years.

Q1 FY 2025-26 Financial Highlights

For the quarter ended June 30, 2025, Canara Bank posted impressive year-on-year growth across key financial metrics:

• Net profit surged by 21.69% to ₹4,752.00 crore
• Global business grew by 10.98% to ₹25,63,984.00 crore
• Global deposits increased by 9.92% to ₹14,67,655.00 crore
• Gross advances rose by 12.42% to ₹10,96,329.00 crore

The bank's asset quality showed significant improvement, with the Gross Non-Performing Asset (GNPA) ratio declining by 145 basis points year-on-year to 2.69%. The Net NPA ratio also improved, dropping by 61 basis points to 0.63%.

Canara Bank's Provision Coverage Ratio (PCR) strengthened to 93.17%, marking a 395 basis points improvement compared to the same quarter last year.

Strong Performance in Key Segments

The bank witnessed robust growth in several key segments:

• RAM (Retail, Agriculture, and MSME) credit grew by 14.90%
• Retail credit surged by 33.92%
• Housing loan portfolio expanded by 13.92%
• Vehicle loans increased by 22.09%

Profitability and Efficiency Metrics

Canara Bank's profitability and efficiency metrics also showed positive trends:

• Return on Assets (ROA) improved to 1.14%, up by 9 basis points year-on-year
• Earnings per share (EPS) increased by 21.66% to ₹21.01
• The bank's slippage ratio improved by 52 basis points to 0.80%

FY 2026 Growth Targets

Looking ahead, Canara Bank has set ambitious growth targets for the fiscal year 2026:

• Overall credit growth of at least 12%
• Corporate loan growth of 10%
• RAM sector growth to continue at 15%
• Return on Assets (ROA) target of 1.05%

The bank expects its Net Interest Margin (NIM) to remain around 2.5% in the next quarter, with potential gradual improvement in Q3 and Q4, contingent on the absence of further rate cuts.

Management Commentary

K. Satyanarayana Raju, Managing Director and CEO of Canara Bank, commented on the results and future outlook: "Our strong Q1 performance reflects the bank's resilience and strategic focus. We are committed to maintaining this growth momentum while ensuring robust asset quality. Our ambitious targets for FY26 underscore our confidence in the bank's potential and the broader economic recovery."

Conclusion

Canara Bank's impressive Q1 FY 2025-26 results and ambitious future targets demonstrate the bank's strong position in the Indian banking sector. With its focus on growth across diverse segments, improved asset quality, and enhanced profitability metrics, Canara Bank appears well-positioned to capitalize on the ongoing economic recovery and achieve its long-term objectives.