Canara Bank has announced its decision to exercise the call option on specific Basel III Compliant Additional Tier I Bonds. The bonds, with ISINs INE476A08159, INE476A08134, and INE476A08126, are subject to approval from the Reserve Bank of India and other regulatory authorities. This action will affect the bank’s capital management and future interest expenses.
Canara Bank Exercising Call Option on Tier I Bonds
Canara Bank has officially informed the stock exchanges of its intention to exercise the call option on three series of its Basel III Compliant Additional Tier I Bonds. This strategic move is subject to the necessary approvals from the Reserve Bank of India and any other relevant regulatory bodies. The decision was communicated via a letter dated September 3, 2026.
Details of Bonds Subject to Call Option
The call option is being exercised on the following bonds:
- ISIN: INE476A08159, Instrument: BASEL III AT I, Issued Amount: ₹1000.00 Cr, Interest Rate: 8.07% p.a., Date of Issue: 04.03.2022, Call Option Date: 04.03.2027, Record Date: 17.02.2026
- ISIN: INE476A08134, Instrument: BASEL III AT I, Issued Amount: ₹1500.00 Cr, Interest Rate: 8.05% p.a., Date of Issue: 02.12.2021, Call Option Date: 02.12.2026, Record Date: 17.11.2026
- ISIN: INE476A08126, Instrument: BASEL III AT I, Issued Amount: ₹1500.00 Cr, Interest Rate: 8.40% p.a., Date of Issue: 25.10.2021, Call Option Date: 25.10.2026, Record Date: 09.10.2026
The bank’s decision to exercise the call option is part of its ongoing capital management strategy. This action aims to potentially optimize the bank’s funding costs and capital structure moving forward. Further details regarding the implications of this call option exercise will be provided as approvals are secured.
Source: BSE
