Canara Bank plans to raise Rs 4,500 crore through AT-1 bonds next week

Canara Bank plans to raise Rs 4,500 crore through Additional Tier 1 (AT-1) bonds next week. This move is part of the bank's fiscal capital plan, which aims to raise a total of Rs 8,500 crore. The bank will issue these bonds at an expected interest rate of 7.85-7.90%, which is a relatively low rate compared to other similar bond issuances. This development is significant for the bond market, as it indicates that banks are still seeking to raise funds at competitive rates, despite the current economic uncertainty.

Why it matters

Canara Bank is raising funds to strengthen its capital base. This move could improve its financial stability and support its business growth.

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