Canara Bank Secures ICRA Rating Reaffirmations For ₹22,500 Crore Bonds

Bengaluru: Canara Bank has announced fresh credit rating updates from rating agency ICRA for several of its debt instruments, including bonds and certificates of deposit.

ICRA reaffirmed the rating of [ICRA]AA+ with a Stable outlook for the bank’s Basel III Tier I bonds amounting to Rs 11,000 crore. The rating agency also reaffirmed the highest rating of [ICRA]AAA with a Stable outlook for Basel III Tier II bonds totaling Rs 11,500 crore. These reaffirmations indicate continued confidence in the bank’s financial stability and ability to meet its obligations on these instruments.

ICRA also assigned and reaffirmed an [ICRA]A1+ rating for the bank’s certificates of deposit, with the rated amount increased to Rs 20,000 crore from Rs 10,000 crore earlier. With this enhancement, the total value of rated instruments increased from Rs 32,500 crore to Rs 42,500 crore. The rating action reflects the agency’s assessment of the bank’s short-term liquidity strength and funding profile.

According to the rating rationale, the bank’s credit profile benefits from strong sovereign ownership and a well-established banking franchise. As of September 30, 2025, Canara Bank held a market share of 5.91 percent in net advances and 6.55 percent in total deposits. The Government of India remained the largest shareholder with a 62.93 percent equity stake as of December 31, 2025, which the rating agency views as a source of potential capital support if required.

The bank’s capital and profitability metrics have remained healthy, with core equity capital at 12.37 percent and Tier I capital at 14.60 percent as of December 31, 2025. Asset quality has also improved, with the gross non-performing assets ratio declining to 2.08 percent from 3.34 percent a year earlier. ICRA expects the bank’s profitability and capitalisation levels to remain stable, supported by strong internal accruals and controlled credit costs. The Stable outlook reflects expectations that Canara Bank will maintain steady asset quality, liquidity, and profitability in the coming period.

Disclaimer: This article has been generated solely from the information contained in the provided regulatory disclosure and rating rationale document and does not include verification or information from external sources.