Canara Bank shares rise 4% as board approves raising up to Rs 8,500 crore in FY25

Canara Bank stock rose nearly 4% today after the lender said its board of directors approved the raising of Rs 8,500 crore via debt instruments (Additional Tier I / Tier II Bonds) for the financial year 2024-25. The banking stock rose to a high of Rs 119.30 in the current session. Canara Bank stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. Later, the stock ended 2.56% higher at Rs 118.

Market cap of Canara Bank stood at Rs 1.06 lakh crore on BSE. Total 54.13 lakh shares changed hands amounting to a turnover of Rs 63.56 crore.

Canara Bank shares have gained 33 per cent since the beginning of this year and risen 90 per cent in a year. The banking stock hit a 52-week low of Rs 58.29 on June 26, 2023.

Canara Bank has a one-year beta of 0.9, indicating very low volatility during the period. In terms of technicals, the relative strength index (RSI) of the Canara Bank stock stands at 46.8, signaling the stock is trading neither in the oversold nor overbought zone.

The details of the fundraising are given below.

l. To raise capital through Basel III Compliant Additional Tier I Bonds to the extent of Rs 4,000 crore during the FY 2024-25 subject to market conditions and necessary approvals.

2. To raise capital through Basel III Compliant Tier II Bonds to the extent of Rs 4,500 crore during the FY 2024-25 subject to market conditions and necessary approvals.