Canara Bank to raise up to Rs 2,000 cr equity capital through QIPs

Canara Bank on Friday said it will raise an additional equity capital up to Rs 2,000 crore through Qualified Institutional Placement (QIP).

The QIP issue shall be within the overall maximum limit of board-approved capital raising plan for 2020-21 of Rs 5,000 crore equity capital and is subject to market conditions and necessary approvals, according to a regulatory filing.

The bank's board at its meeting held on Friday decided to raise an "additional equity share capital amounting up to Rs 2,000 crore, including securities premium, through the QIP route, it added.

As per the filing, the number of equity shares of the face value of Rs 10 each in one or more tranches with a premium will be decided as per applicable guidelines/ regulations.

In late afternoon trade, shares of Canara Bank gained nearly five per cent to Rs 87.10 on BSE.