Canara Bank gets board approval to raise Rs 1,800 crore in FY18

Published On: 13, Dec 2017 | Source:

State-owned Canara Bank on Wednesday said its board has approved a proposal to raise up to Rs 1,800 crore through bonds this fiscal to maintain a healthy capital adequacy ratio.

"The board has permitted to raise capital funds through additional tier I instruments (AT-1 bonds) in rupee terms domestically for an amount not exceeding Rs 1,800 crore," Canara Bank said in a regulatory filing.

The lender said it can raise the money in single or multiple tranches to maintain healthy Capital-to-risk weighted assets ratio (CRAR) during current year.

CRAR or in other words capital adequacy ratio (CAR) is a measure of a bank's capital, as a percentage of risk weighted credit exposure.

Shares of Canara Bank closed 3.27 percent down at Rs 354.90 on BSE.