Canara Bank to hit market with equity offering of Rs 5,000 cr in Q4FY21

Lender plans to raise additional tier-I capital of Rs 1,500 crore each in second and third quarters of FY21

Public sector lender Canara Bank plans to hit capital market in the fourth quarter of current fiscal (FY21) with equity capital issue of up to Rs 5,000 crore.  Besides, it would also raise additional tier-I capital of Rs 1,500 crore each in the second and third quarters of FY21. The lender is raising capital to grow business and build buffer for lender to absorb shock from stress due to pandemic.

L V Prabhkar, managing director and chief executive, Canara Bank, told Business Standard the bank is fundamentally strong and prefers to raise capital from the market. It has not sought equity