Canara Bank to raise Rs 2,400 crore by issuing tier II bonds

Canara Bank today said it will raise an additional capital of Rs 2,400 crore by issuing bonds on private placement basis to support its asset growth.

The decision to raise the additional capital was taken at Board meeting of the bank on Thursday.

"The Board of the bank...has permitted to raise an additional capital of Rs 2,400 crore through issue of Basel-III compliant tier II bonds by way of private placement", Canara Bank said in a regulatory filing.

The public sector lender said the coupon rate on the bonds would be as decided by the Bond Committee of the bank.

The Bengaluru-headquartered bank said the capital raised will be utilised to support the asset growth during 2015-16 and also to maintain healthy level of Capital to Risk Weighted Assets Ratio (CRAR).