ICRA reaffirms Canara Bank's Tier I and Tier II bond ratings

Canara Bank announced on August 28, 2025, that ICRA has reaffirmed its credit ratings for Basel III Tier II bonds at [ICRA]AAA(Stable) and Basel III Tier I bonds at [ICRA]AA+(Stable). Additionally, ICRA has assigned an [ICRA]A1+ rating to the bank's Certificates of Deposit. The total rated amount for Basel III Tier II bonds is INR 8,900.00 crore, for Basel III Tier I bonds is INR 7,500.00 crore, and for Certificates of Deposit is INR 10,000.00 crore.

The ratings reflect Canara Bank's sovereign ownership, strong franchise with a 5.8% market share in net advances and 6.4% in total deposits as of March 31, 2025, and robust profitability. As of June 30, 2025, the bank's core equity capital (CET I) and Tier I capital stood at 12.29% and 14.58%, respectively. Gross non-performing assets (GNPAs) declined to 2.69% as of June 30, 2025, from 4.14% as of June 30, 2024.

The bank's liquidity position remains strong, with a liquidity coverage ratio of 144.2% and a net stable funding ratio of 127.3% in Q1 FY2026, both well above regulatory requirements. ICRA maintains a stable outlook, expecting Canara Bank to sustain its credit profile, asset quality, profitability, and capitalisation.