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11 September 2026

Canara Bank AT-1 bond issuance

AT-1 bonds are a specific financial instrument used for capital adequacy under Basel III norms, which is a relevant topic for understanding banking sector resource mobilization and financial stability in the Indian economy.

1 min read 1 questions 1 prelims

Notes

  • Canara Bank plans to raise up to ₹4,500 crore through Basel III-compliant Additional Tier 1 (AT-1) bonds.
  • The bank is also authorized to raise an additional ₹4,000 crore through Tier 2 bonds.
  • AT-1 bonds are classified as perpetual debt instruments.
  • The proposed AT-1 bonds include a call option exercisable after five years, subject to regulatory approval.
  • The issuance is part of a broader capital-raising strategy approved by the bank's Board of Directors.

Questions

  1. Explain the role of Basel III-compliant Additional Tier 1 (AT-1) bonds in strengthening the capital adequacy of public sector banks in India. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00

Prelims

  1. With reference to Additional Tier 1 (AT-1) bonds, consider the following statements: 1. They are perpetual debt instruments. 2. They are part of Basel III capital regulations. Which of the statements given above is/are correct?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-09-11/canara-bank-at-1-bond-issuance