State-owned Canara Bank said on Friday that the bank’s board had approved to raise additional capital of up to Rs 2,000 crore through Qualified Institutional Placement (QIP).

The lender in a stock exchange filing said that the QIP shall be within the overall maximum limit of the approved capital by the board for FY21 of Rs 5,000 crore equity capital and is subject to market conditions and necessary approvals. It added that the board meeting of the bank held on Friday decided to raise an “additional equity share capital amounting up to Rs 2,000 crore, including securities premium, through the QIP route”.

According to the filing, the number of equity shares having a face value of Rs 10 per share will be introduced in one or more tranches with a premium and, will be decided as per the applicable guidelines/regulations. On Friday, the shares of Canara Bank were trading at Rs 87.30, 5 per cent up on BSE.