Canara Bank shares in focus as board approves Rs 9,500 crore fundraise for FY26

Canara Bank shares will be in focus on Friday after the lender said its board has approved a capital-raising plan of up to Rs 9,500 crore for FY26 through the issuance of debt instruments.

In a stock exchange filing, the bank said, “The Board of Directors of the Bank, in its meeting held on 12/06/2025, has approved the Capital Raising Plan for the financial year 2025-26 amounting up to Rs 9,500 crore by way of Debt Instruments (Additional Tier I / Tier II Bonds).”

The fundraising will be done via Basel III-compliant bonds, comprising Rs 6,000 crore in Tier II bonds and Rs 3,500 crore in Additional Tier I (AT1) bonds, subject to market conditions and regulatory approvals.

Also Read: SBI, Bank of Baroda among 10 banks that saw NPA decline in Q4

Canara Bank reported a 33% year-on-year (YoY) jump in net profit to Rs 5,002.7 crore in Q4, compared to Rs 3,757 crore in the same quarter last year. Net interest income (NII) rose marginally by 1.4% YoY to Rs 9,442 crore.

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The bank’s NII and operating profit were ahead of estimates. Asset quality also improved, with the gross NPA ratio declining to 2.94% from 3.34% in the previous quarter. Net NPA fell to 0.70% from 0.89%.The provision coverage ratio (PCR) rose to 92.70% from 91.26% in Q3FY25. However, slippages increased to Rs 2,702 crore from Rs 2,464 crore in the previous quarter, and slightly exceeded market estimates of Rs 2,650 crore.Also Read: JSW Steel, Aurobindo Pharma among 6 large & midcap firms with promoter pledge decline in Q4

Stock performance

According to Trendlyne, the average target price for Canara Bank stands at Rs 113, implying a potential downside of about 2% from current levels. Of the 17 analysts tracking the stock, most have a ‘Buy’ rating.

The stock has rallied 15% in the past month and 40% over the last three months. Canara Bank currently has a market capitalisation of Rs 1,04,947 crore.

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