Canara Bank

Bond call details

• Canara Bank to exercise call option on Basel III AT1 bond ISIN INE476A08126.
• Issued amount Rs 1500 crore; coupon 8.40% p.a.
• Issue date 25 October 2021; call date 23 October 2026.
• Record date 8 October 2026; instrument perpetual.
• RBI approvals obtained on 15 September 2026.
• Interest period 25 Oct 2025 to 24 Oct 2026.
• Principal plus accrued interest payable on 23 Oct 2026.
• Payment to bondholders via RTGS/NEFT/Direct credit.
• Bond extinguished in NSDL/CDSL records after payment.
• Bank liability ceases after payment.

Event details

• Call option and coupon due on 25 Oct 2026; payment moved to 23 Oct 2026 per PM.
• Record date revised from 9 Oct 2026 to 8 Oct 2026 to determine entitlement.

NCD interest payment

• Annual interest payment of Rs 377,00,00,000 was paid on 27 September 2026.
• Payment credited to bondholders via RTGS/NEFT/IBA/DD.
• Record date: 11/09/2026; due date: 27/09/2026; actual payment: 27/09/2026.
• Last interest payment date: 29/09/2025.
• ISIN INE476A08191; Issue size: Rs 5000,00,00,000.

Bond payment date revision

• Interest payment date for Bond ISIN INE476A08191 revised to 27.09.2026 due to working day change.
• Previously intimated date was 28.09.2026; MoF advised 27.09.2026 as a working day.
• Coupon payment remains as per original date in Placement Memorandum dated 27/09/2023.

Canara Bank trading window to close from Oct 1, 2026 up to 48 hours after the declaration of financial results for the quarter ended Sep 30, 2026

Extension of ED term

• Shri Bhavendra Kumar, Executive Director, Canara Bank, term extended beyond 08.10.2026.
• Extension until 31.10.2027 or until further orders, whichever earlier.
• Reason: extension per government notification dated 23 Sep 2026.
• Profile: joined Canara Bank in 1997; CAIIB; ED since 2023.
• Not related to other directors; not debarred from holding office.
• He reported to Head Office on 09.10.2023.

Action & Instrument

• CareEdge Global assigns BBB+/Stable to Canara Bank's USD 3 billion MTN programme.

Instruments & Rating

• Instrument: Medium-term notes, USD 3 billion.
• Rating: BBB+/Stable.
• Notes are senior and pari passu with other senior debt.
• Solicited rating; Date: 23 September 2026.

Agency & Methodology

• Agency: CareEdge Global Ratings.
• GRE-based methodology for Government Related Entities and financial institutions.

Rationale

• Majority GoI ownership (62.9%) underpins sovereign linkage.
• PSB status and GoI backing underscore systemic importance.
• Sovereign support a key driver; two-notch uplift.
• Strong domestic franchise and diversified loan portfolio.
• Capitalisation is comfortable; CAR 17.0%, CET-I 12.8%.
• GNPA 1.8%, NNPA 0.4%; asset quality improving.
• Liquidity robust; LCR above requirements; large retail franchise.
• Vulnerabilities in MSME and agriculture segments; exposure persists.
• Outlook stable; aligned with India's sovereign outlook.
• Notes are senior and pari passu with other senior debt.

Outlook

• Outlook: Stable, in line with India's sovereign rating.

Sensitivity & Change

• Upward factors: Upward sovereign revision or outlook.
• Downward factors: Sovereign downgrade or adverse GoI policy.
• GoI shareholding remaining above majority threshold.
• Sustained capital adequacy and asset-quality resilience required.

Material Change

• New rating assigned; no prior CareEdge rating for this instrument.

Key Metrics

• Total assets ~Rs 18.9 trillion (Mar 31, 2026).
• GNPA 1.8%, NNPA 0.4%.
• CAR 17.0%, CET-I 12.8%.

Offering circular on SGX

• Offering circular uploaded on SGX for Canara Bank's existing MTN programme.

Rating action and programme scope

• Moody's assigns Senior Unsecured (P)Baa3 rating to Canara Bank's US$3 billion MTN programme.
• Ratings do not automatically apply to individual notes issued under the programme.
• Ratings may be revised or withdrawn by Moody's at any time.
• Moody's monitoring depends on receipt of all relevant information from the issuer.
• Notes with credit-linked or non-credit-linked features may not bear the programme rating.