RBI permits Canara Bank to exercise call option of Tier-II bonds
Earlier in March, Canara Bank had raised Rs 1,000 crore by issuing Basel-III compliant additional tier I bonds.
- Apr 5, 2022,
- Updated Apr 5, 2022 5:06 PM IST
The Reserve Bank of India (RBI) on Tuesday gave its approval to Canara Bank to exercise the call option of tier-II bonds, the state-owned lender said in a regulatory filing.
"Reserve Bank of India has permitted the bank to exercise the call option of 8 per cent Unsecured Non-Convertible Basel III Compliant Tier II Bonds vide letter dated 4 April 2022," Canara Bank stated.
Further, the bank is in process of exercising the call option on the due date, that is, 3 May 2022, it added.
Shares of Canara Bank on Tuesday closed 0.68 per cent higher at Rs 243 apiece on BSE.
Earlier in March, Canara Bank had raised Rs 1,000 crore by issuing Basel-III compliant additional Tier I bonds. The bonds carry coupon rate of 8.07 per cent per annum.
The issue received overwhelming response from investors, with bids for more than Rs 3,133 crore against a base issue size of Rs 250 crore and greenshoe option of Rs 750 crore, Canara Bank said in a release.
During FY22, the bank has issued Basel-III compliant additional Tier-I bonds of Rs 4,000 crore and tier-II bonds of Rs 2,500 crore.
In the quarter ended December 31, 2022, the lender had reported a more that two-fold jump in its profit after tax at Rs 1,502 crore, helped by a rise in net interest income (NII) and lower provisions. Its net profit stood at Rs 696 crore in the same quarter of the preceding financial year. The growth in profit was 115.80 per cent.
The Reserve Bank of India (RBI) on Tuesday gave its approval to Canara Bank to exercise the call option of tier-II bonds, the state-owned lender said in a regulatory filing.
"Reserve Bank of India has permitted the bank to exercise the call option of 8 per cent Unsecured Non-Convertible Basel III Compliant Tier II Bonds vide letter dated 4 April 2022," Canara Bank stated.
Further, the bank is in process of exercising the call option on the due date, that is, 3 May 2022, it added.
Shares of Canara Bank on Tuesday closed 0.68 per cent higher at Rs 243 apiece on BSE.
Earlier in March, Canara Bank had raised Rs 1,000 crore by issuing Basel-III compliant additional Tier I bonds. The bonds carry coupon rate of 8.07 per cent per annum.
The issue received overwhelming response from investors, with bids for more than Rs 3,133 crore against a base issue size of Rs 250 crore and greenshoe option of Rs 750 crore, Canara Bank said in a release.
During FY22, the bank has issued Basel-III compliant additional Tier-I bonds of Rs 4,000 crore and tier-II bonds of Rs 2,500 crore.
In the quarter ended December 31, 2022, the lender had reported a more that two-fold jump in its profit after tax at Rs 1,502 crore, helped by a rise in net interest income (NII) and lower provisions. Its net profit stood at Rs 696 crore in the same quarter of the preceding financial year. The growth in profit was 115.80 per cent.