In order to create capital buffer, Canara Bank is planning to raise Rs 2,000 crore. The bank is likely to raise the capital by allotting equity shares/preference shares/securities by way of follow on public issue, rights issue and/or on a private placement basis. The issue proceeds will enable the bank to strengthen its capital adequacy requirements as specified by RBI from time to time. The bank will seek shareholders’ approval in the ensuing annual general meeting in July to raise funds.
Canara Bank is an Indian state-owned bank headquartered in Bangalore, in Karnataka. It was established at Mangalore in 1906, making it one of the oldest banks in the country.
