Canara Bank's board approves plan to raise up to Rs 9,000 crore in FY22

State-run Canara Bank’s board approved a plan to raise up to Rs 9,000 crore in the current financial year (FY22), of which Rs 2,500 crore will be through a Qualified Institutional Placement (QIP), to meet regulatory norms and support growth.
 
The total amount would be raised through a mix of equity and debt instruments and is subject to market conditions and necessary approvals, the bank informed the BSE on Friday.
 
The bank had raised Rs 2,000 crore through another QIP in December 2020.
 
Last week another public sector lender — Union Bank of India — raised Rs 1,447 crore through the QIP route.
 
The bank’s stock rose 5.37 per cent to Rs 161.85 apiece on the BSE.
 
Apart from the QIP, it plans to raise capital through additional tier-I bonds of up to Rs 4,000 crore and additional tier-II bonds up to Rs 2,500 crore, the bank said.
 
Its capital adequacy ratio was 13.18 per cent in March 2021 with tier I of 10.08 per cent including common equity portion of 8.61 per cent and tier II of 3.1 per cent.
 
Its advances rose 3.68 per cent to Rs 6.75 trillion in FY21, a first year of operation for the amalgamated entity. Syndicate Bank merged with Canara Bank on April 1, 2020.