ICRA has reaffirmed and assigned credit ratings to various debt instruments of Canara Bank, including Basel III Tier I and Tier II bonds, and Certificates of Deposit. The ratings reflect the bank’s strong sovereign ownership, robust franchise, healthy profitability, and comfortable capitalisation. The outlook remains stable for most instruments.
ICRA Affirms Strong Ratings for Canara Bank Debt Instruments
ICRA has announced the reaffirmation and assignment of credit ratings for several debt instruments issued by Canara Bank. The ratings highlight the bank’s continued financial strength and stable outlook. Specifically, the [ICRA]AA+(Stable) rating has been reaffirmed for Basel III Tier I Bonds amounting to Rs. 11,000 crore. Additionally, a new assignment of [ICRA]AA+(Stable) has been given to Basel III Tier I Bonds valued at Rs. 4,500 crore.
Tier II Bonds and Deposit Ratings
For Basel III Tier II Bonds, the [ICRA]AAA(Stable) rating has been reaffirmed for an amount of Rs. 8,500 crore. A tranche of Rs. 3,000 crore Basel III Tier II Bonds has been reaffirmed and withdrawn as it has been fully redeemed. Certificates of Deposit have received a reaffirmed rating of [ICRA]A1+, with an outstanding amount of Rs. 20,000 crore.
Rationale for Ratings
The ratings are supported by Canara Bank’s sovereign ownership and strong franchise, evidenced by its significant market share in net advances and total deposits. The bank’s robust deposit franchise, well-developed retail deposit base, and strong liquidity profile are key strengths. ICRA also notes the bank’s healthy profitability and capitalisation, which are expected to remain robust. The outlook for these ratings is stable, reflecting the expectation that the bank will maintain a steady credit profile with stable asset quality, profitability, and capitalisation.
Source: BSE
