Canara Bank has announced a selective revision in its Marginal Cost of Funds Based Lending Rate (MCLR) structure, effective from March 12, 2026. The bank communicated this update to stock exchanges through a regulatory filing dated March 11, 2026.

MCLR Rate Structure Changes

The revised MCLR rates demonstrate a targeted approach, with increases limited to longer-tenor lending rates. The bank has maintained stability in shorter-term rates while adjusting longer-duration lending costs.

Impact on Borrowers

The revision specifically affects borrowers with loans linked to two-year and three-year MCLR tenors. Customers with existing loans tied to these rates will see an increase of 10 basis points in their lending rates. The unchanged shorter-term rates provide stability for borrowers with loans linked to overnight, monthly, quarterly, six-monthly, and annual MCLR benchmarks.

Regulatory Compliance

The bank has fulfilled its regulatory obligations by informing both BSE Limited and National Stock Exchange of India Limited about the MCLR revision. The communication was signed by Santosh Kumar Barik, Company Secretary, ensuring proper corporate governance protocols were followed in the rate announcement process.

Canara Bank has received comprehensive credit rating reaffirmation from ICRA Limited for its debt instruments worth ₹42,500 crore, enhanced from the previous ₹32,500 crore. The rating agency announced the reaffirmation on March 9, 2026, covering Basel III bonds and Certificate of Deposit programs under SEBI Regulation 30 disclosure requirements.

Credit Rating Details

ICRA has reaffirmed ratings across three key instrument categories with stable outlook maintained for all rated instruments. The rating action demonstrates the bank's strong creditworthiness and financial stability with enhanced amounts.

Rating Rationale and Bank Performance

The ratings factor in Canara Bank's sovereign ownership with the Government of India holding 62.93% equity stake as on December 31, 2025. The bank maintains strong market position with 5.91% share in net advances and 6.55% in total deposits as on September 30, 2025, ranking as the fourth largest public sector bank.

Asset Quality and Capital Position

The bank's asset quality continues to improve with gross NPA percentage declining to 2.08% as on December 31, 2025 from 3.34% in the previous year. The annualised gross fresh NPA generation rate stood at 0.79% in 9M FY2026, significantly below historical elevated levels. Core equity capital (CET I) and Tier I capital stood at 12.37% and 14.60% respectively as on December 31, 2025, maintaining comfortable buffer over regulatory ratios.

Regulatory Compliance

The bank disclosed the rating information pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Company Secretary Santosh Kumar Barik signed the disclosure document digitally on March 9, 2026, ensuring compliance with regulatory requirements for timely information sharing with stock exchanges.

Rating Significance

The reaffirmation of high credit ratings reflects Canara Bank's robust financial position supported by sovereign ownership, strong deposit franchise with 10,066 domestic branches, and healthy profitability profile. The stable outlook maintained by ICRA suggests expectation of steady credit profile with stable asset quality and healthy capitalisation over the rating horizon.