Annual interest paid and AT1 bonds redeemed via call option
Annual interest and principal on Canara Bank's Basel III Additional Tier 1 bonds (ISIN INE476A08126) were credited to bond holders on 23rd October, 2026.
By ScoutQuest · · 2 min read
- Interest paid
- ₹ 126 crore
- Redemption amount
- ₹ 1,500 crore via exercise of call option
- Outstanding amount after redemption
- Nil
What the bank has confirmed
- The annual interest and principal on its Unsecured, Non-Convertible, Redeemable Basel III Compliant Additional Tier 1 Bonds (ISIN INE476A08126) were paid on 23rd October, 2026.
- Total amount credited to bond holders' bank accounts: Rs.1626,00,00,000/- (Rupees One Thousand Six Hundred and Twenty-Six Crore Only), through RTGS/NEFT/IBA/DD as per the terms of issue.
- This total is made up of ₹ 126 crore of annual interest on an issue size of ₹ 1,500 Crore, plus ₹ 1,500 crore of principal.
The redemption came from a call option, not maturity
- The update describes the redemption as full, with the reason stated as "Redemption due to exercise of call option".
- The call option date was 25th October, 2026, which is a Sunday, so redemption was done on the immediately preceding business day, 23rd October, 2026, as per the terms in the Information Memorandum.
- 1,500 NCDs were redeemed, on a lot basis. Outstanding amount on this bond after redemption: Nil.
Dates and payment record
- Record date for interest: 08/10/2026, revised from 09/10/2026; 10th October, 2026 was a holiday, so the preceding business day was first taken as the record date.
- Due date for both interest and redemption: 25/10/2026. Actual payment date: 23/10/2026.
- Interest frequency is annual; the last interest payment was on 27/10/2025.
- Against "Reason for Non-Payment/delay in Payment" the update records "Not Applicable" for both interest and redemption.
What this means in simple terms
Additional Tier 1 bonds are a specific type of bond that banks issue to strengthen their capital base. These bonds usually carry a call option, which lets the issuer repay them on a fixed date before their final maturity. Here the bank has used that option and repaid the full ₹ 1,500 crore face value along with ₹ 126 crore of annual interest, and nothing remains outstanding on this bond.
For someone holding this bond, the position is settled: principal plus the annual interest has been credited. For someone tracking the bank's borrowed funds, this is a routine debt-servicing and bond-closure update, disclosed to the exchanges as a confirmation of payment.
Also from Canara Bank
Strong delivery-based buying noted in Canara Bank today, contrary to broader market weakness
21 Oct 2026
Viewer query on Canara Bank; technical analyst suggests averaging at current price
19 Oct 2026
Q2 FY27 call: total business tops ₹30 lakh crores, Gross NPA at 1.33%
17 Oct 2026
More numbers
- Total principal and annual interest creditedRs.1626,00,00,000/-
- Issue size of the AT1 bonds₹ 1,500 Crore
- Amount of interest paid₹ 126,00,00,000/-
- Amount redeemed₹ 1,500 crore
- Quantity redeemed (no. of NCDs)1,500
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.