Canara Bank to Raise Rs 4,000 Crore via Tier-2 Bonds
Canara Bank Targets ₹4,000 Cr Bond Issue to Fuel Growth
**Capital Raise & Strategic Expansion**
Canara Bank is set to raise **₹4,000 crore** via Tier-2 bonds by March 2026. This move is part of a broader **₹9,500 crore** fundraising plan approved by the board for the current fiscal year. The capital injection is critical to supporting the bank's revised credit growth target, which has been upgraded to **13.5%** (up from the earlier 10.5%) for FY26.
**Q3 FY26 Performance Highlights**
The fundraising aligns with strong financial momentum. For the quarter ending December 31, 2025, the bank reported a **25.6%** year-on-year jump in net profit to **₹5,155 crore**.
* **Advances:** Global advances grew by over **13%**.
* **Retail Growth:** Retail loans surged **31.37%**.
* **Asset Quality:** Gross NPAs improved significantly to **2.94%**, with Net NPAs dropping to **0.70%**.
**Market Position**
The bank plans to reinvest retained profits alongside the bond issue to sustain expansion. Following the Q3 results and the fundraising announcement, the stock is trading in the **₹147–₹150** range on the NSE, reflecting investor confidence in the accelerated growth strategy. Management expects to maintain Net Interest Margins (NIM) around the **2.45–2.5%** level despite a competitive deposit environment.