Canara Bank share price gained 1% on Tuesday, February 24, 2026, following the bank’s announcement of a ₹5,000 crore Tier 2 bond issue. The move is aimed at strengthening the lender’s capital base and supporting future growth plans.
Market Performance: Canara Bank Stock on the Rise
The PSU stock advanced to an intra-day high of ₹158.80, inching closer to its 52-week peak of ₹160.80 hit in January 2026. Over the past year, Canara Bank has delivered strong returns:
- 1 year: +86%
- 6 months: +45%
- 3 months: +6%
- 1 month: +4%
Long-term investors have seen exceptional growth, with the stock rallying 383% over five years. The recent uptick reflects renewed investor confidence following the bond announcement.
Main News: ₹5,000 Crore Tier 2 Bond Issue
Canara Bank plans to raise up to ₹5,000 crore via Tier 2 bonds. Here’s the breakdown:
- Base issue size: ₹2,000 crore
- Green shoe option: Up to ₹3,000 crore
- Scheduled date: Thursday, February 26, 2026
- Platform: National Stock Exchange (NSE) electronic bidding
Tier 2 bonds are long-term subordinated debt instruments. They help banks enhance their capital structure and comply with regulatory requirements under Basel III norms. This bond issue continues Canara Bank’s strategy of strengthening its capital position for sustainable growth.
Canara Bank Q3 FY26 Performance Highlights
The bank reported a robust performance in the third quarter of FY26:
- Net Profit: ₹5,155 crore, up 25.6% YoY
- Net Interest Income (NII): ₹9,252 crore, +1.1% YoY
- Gross NPAs: 2.08% (down from 2.35% in Q2 FY26)
- Net NPAs: 0.45% (improved from 0.54% in Q2 FY26)
Gross advances stood at ₹11.92 lakh crore by December 31, 2025, marking a 14% YoY growth. The retail, agriculture, and MSME (RAM) segment led this expansion with a 19% increase, while corporate credit grew 7%.
The bank’s capital adequacy remains solid, with CRAR at 16.50% as of December 2025. Earlier, in November 2025, Canara Bank had strengthened its capital by raising ₹3,500 crore through additional Tier 1 bonds.
Company Details: Driving Growth Through Strategic Initiatives
Canara Bank continues to focus on building a resilient balance sheet and improving asset quality. The combination of strong Q3 performance and the upcoming bond issue reflects a steady approach to capital management and future growth.
Summary
Canara Bank share price rose 1% on the back of a ₹5,000 crore Tier 2 bond announcement, highlighting investor optimism. With robust Q3 results, improving asset quality, and a solid capital base, the bank’s position in the market remains strong. The growth in retail, agriculture, and MSME lending, coupled with consistent advances, underscores Canara Bank’s continued momentum in FY26.
Source: Livemint
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