Canara Bank’s stock fell by 0.63% to ₹107.92 per share on Thursday following the announcement of a $300 million medium-term note (MTN) bond issue. The bonds, with a five-year tenure and a semi-annual coupon rate of 4.896%, are part of the bank’s efforts to fund and expand its international operations.
The net proceeds from this issue will be used by the bank’s IFSC banking unit or other offshore branches for general corporate purposes and business development.
The bank revealed that these bonds will be listed on both the Singapore Exchange Securities Trading and the Global Securities Market of the India INX IFSC. Importantly, the funds raised will not be repatriated to India or generate income within the country.
For Q1 FY25, Canara Bank reported a 10.47% increase in net profit year-on-year (YoY), reaching ₹3,905 crore. Gross advances rose by 9.86% YoY to ₹9,75,183 crore, while global deposits grew by 11.97% YoY to ₹13,35,167 crore. The bank’s global business expanded by 11.07% YoY to ₹23,10,350 crore.
In terms of asset quality, the bank saw a 101 basis points (bps) YoY decrease in its gross non-performing assets ratio to 4.14%. The net non-performing asset ratio improved by 33 bps YoY to 1.24%, and the provision coverage ratio increased by 118 bps to 89.22%.
Since the beginning of the year, Canara Bank’s shares have risen by nearly 22%, and over the past year, they have gained more than 59%. The bank operates a total of 9,623 branches, including 4 overseas locations.
