ICRA reaffirms Canara Bank’s Basel III Tier I bonds at [ICRA]AA+ (Stable), assigns the same rating to new ₹4,500 crore Tier I bonds and reaffirms Tier II bonds at [ICRA]AAA (Stable).
Mumbai: Canara Bank has informed the stock exchanges about the latest credit ratings assigned by ICRA Limited for its various debt instruments.
The ratings were assigned or reaffirmed by ICRA on September 8, 2026, covering the bank’s Basel III Tier I and Tier II bonds as well as Certificates of Deposit.
ICRA Rating Actions
Basel III Tier I Bonds
- Existing ₹11,000 crore: [ICRA]AA+ (Stable) – Reaffirmed
- New ₹4,500 crore: [ICRA]AA+ (Stable) – Assigned
Basel III Tier II Bonds
- ₹8,500 crore: [ICRA]AAA (Stable) – Reaffirmed
- Earlier ₹3,000 crore: [ICRA]AAA (Stable) – Reaffirmed and withdrawn following full redemption
Certificates of Deposit
- ₹20,000 crore: [ICRA]A1+ – Reaffirmed
Why ICRA Maintained Strong Ratings
According to the rating rationale, ICRA continues to factor in Canara Bank’s sovereign ownership, with the Government of India holding a 62.93% stake as of June 30, 2026.
The rating agency also considers the bank’s strong franchise and market position. Canara Bank is the fourth-largest public sector bank and sixth-largest bank in India by total business, according to the information disclosed by the bank.
The ratings are further supported by the bank’s robust deposit franchise, strong liquidity position, healthy capitalisation and improving profitability.
Canara Bank Financial Snapshot
The bank reported the following key financial and asset-quality indicators as of June 30, 2026:
| Financial Indicator | Position |
|---|---|
| CET 1 Ratio | 12.91% |
| Tier I Capital Ratio | 15.00% |
| CRAR | 17.17% |
| Gross NPA | 1.57% |
| Net NPA | 0.36% |
| Return on Assets – Q1 FY2027 | 1.02% |
The capital ratios indicate that the bank continues to maintain a substantial capital cushion, while the relatively low net NPA ratio reflects an improvement in asset-quality indicators.
Stable Outlook for Canara Bank
ICRA has maintained a Stable outlook, reflecting its expectation that Canara Bank will continue to maintain stable asset quality, healthy profitability and adequate capital buffers.
The rating agency’s assessment also takes into account the bank’s large deposit base, liquidity profile and continued support associated with its government ownership.
Rating Rationale Filed With Stock Exchanges
Canara Bank has submitted the detailed rating rationale to the BSE and NSE in accordance with Regulation 30 of the SEBI Listing Regulations.
The latest ratings provide continued external credit assessment of Canara Bank’s debt instruments and reflect ICRA’s assessment of the bank’s capitalisation, liquidity, asset quality, profitability and overall financial profile.
