Canara Bank is set to tap the debt market on February 26, 2026, to raise up to 5,000 crore via Basel III-compliant Tier-2 bonds. This capital raise includes a base issue of 2,000 crore and a greenshoe option of 3,000 crore, aimed at supporting credit growth and maintaining a robust capital buffer. The lender enters this issuance from a position of financial strength. For the quarter ended December 2025, the bank reported a significant 25.6% year-on-year surge in net profit, reaching 5,155 crore. This growth was largely driven by a sharp 36% rise in non-interest income and a steady 1.1% increase in Net Interest Income, which stood at 9,252 crore. Operational metrics show a clear focus on credit expansion. Global advances increased by 13.6% year-on-year to 11.92 lakh crore, with the bank specifically targeting a 13% growth rate for the current fiscal. This expansion is heavily supported by the "RAM" sectors—Retail, Agriculture, and MSME—which witnessed a nearly 19% jump. Asset quality has improved significantly, reducing the bank's risk profile. The Gross Non-Performing Asset (GNPA) ratio dropped to 2.08% from 3.34% a year ago, while the Net NPA ratio improved to a healthy 0.45%. This recovery momentum has helped the bank maintain a high Provision Coverage Ratio of 94.19%. Capital adequacy remains well above regulatory requirements. As of December 31, 2025, the Capital to Risk Weighted Assets Ratio (CRAR) stood at 16.50%, with a Common Equity Tier-1 (CET-1) ratio of 12.37%. The new bond issuance will further strengthen these levels as the bank prepares for rising loan demand in a shifting interest rate environment. Market sentiment reflects this stability. Shares of Canara Bank recently traded around 157.15, marking a 5% gain over the past week. With a market capitalization of approximately 1.43 lakh crore and a price-to-earnings ratio of 7.7, the bank remains a key focus for institutional investors looking at the public sector banking space. The bank’s liquidity remains superior, supported by a 12.9% growth in global deposits to 15.21 lakh crore. This deep deposit franchise, coupled with a wide network of over 10,000 branches, provides the necessary scale to absorb fresh capital and deploy it efficiently across high-yield retail and agricultural portfolios.