Canara Bank to Exercise Call Option on ₹1500 Cr AT1 Bonds

Canara Bank announced its decision to exercise the call option on its Basel III compliant Additional Tier I Bonds (ISIN: INE476A08126) amounting to ₹1500 Crore. The call option will be exercised on October 23, 2026, with October 25, 2026 being a holiday. The bonds, issued on October 25, 2021, carry a coupon rate of 8.40% per annum. The bank has obtained the necessary approvals from the Reserve Bank of India (RBI) on September 15, 2026. The record date for determining eligible bondholders for payment has been set as October 8, 2026. The principal amount along with accrued interest for the period from October 25, 2025, to October 24, 2026, will be paid on the call option date, after which the bonds will be discharged and the bank's liability will cease.