Canara Bank launches QIP to raise Rs 2,500 crore, floor price Rs 155.58 per share

Canara Bank, India's third largest PSU lender (File image)

Canara Bank on August 17 launched the Qualified Institutions Placement (QIP) of equity shares to raise funds up to Rs 2,500 crore, the public sector lender said in a regulatory filing.

The Board of Canara Bank, while authorising the QIP issue, approved a floor price of Rs 155.58 per equity share, the bank said.

"The bank may at its discretion offer a discount of not more than 5 percent on the floor price so calculated for the QIP," it added.

Earlier, Canara Bank had obtained shareholders' approval for the QIP issue through a special resolution at the Annual General Meeting held on August 3.

The QIP launch comes three weeks after the bank reported a three-fold jump in standalone net profit at Rs 1,177.47 crore for the quarter ending on June 30.

The bank, in the same quarter last year, had logged a net profit of Rs 406.24 crore in the same quarter of the previous financial year.

Notably, Canara Bank had amalgamated Syndicate Bank into itself with effect from April 1, 2020.

Total income in the April-June increased marginally to Rs 21,210.06 crore, from Rs 20,685.91 crore in the same period last year, Canara Bank had stated in a regulatory filing.

The bank's gross non-performing assets (NPAs) had declined slightly at 8.50 per cent of the gross advances as on June 30, 2021 as against 8.84 per cent in the same quarter last year.