Ratings by CareEdge Global Ratings

Ref: SD/286/287/11/12/2026-27 23.09.2026 The Vice President The Vice President BSE Ltd. Listing Department Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Dalal Street Exchange Plaza Mumbai - 400 001 Bandra-Kurla Complex, Bandra [E] Scrip Code: 532483 Mumbai - 400 051 Scrip Code: CANBK Dear Sir/Madam, Sub: Ratings by CareEdge Global Ratings Ref: Disclosure under SEBI (LODR) Regulations, 2015 The Stock Exchanges are hereby informed that CareEdge Global Ratings (Rating Agency) has assigned a ‘CareEdge BBB+/Stable’ rating to Canara Bank’s USD 3 Billion Medium-Term Notes (MTN) programme vide their letter dated 23.09.2026. Copy of the rating letter issued by CareEdge Global Ratings is enclosed herewith. This is for information and records. Thanking You, Santosh Kumar Barik Company Secretary सिचवीय िवभाग Secretarial Department (cid:366)धान काया(cid:330)लय Head Office F +91 80 22248831 112, जे सी रोड, ब(cid:336)गलू(cid:348) - 560002 112 J C Road, Bengaluru - 560002 T +91 80 22100250 E-Mail - hosecretarial@canarabank.com www.canarabank.bank.in Rating Rationale September 23, 2026 ‘CareEdge BBB+/Stable’ rating assigned to medium-term notes of Canara Bank USD 3 billion medium-term notes^ CareEdge BBB+/Stable ^ The notes issued under the programme are expected to be senior and rank pari passu with the issuer’s other senior debt obligations. The facility- specific rating would be evaluated based on the instrument features once these are finalised closer to the issuance. CareEdge Global Ratings has assigned a ‘CareEdge BBB+/Stable’ to Canara Bank’s USD 3 billion medium-term notes (MTN) programme. Rating rationale The rating assigned to Canara Bank factors in the benefits arising from its majority ownership by the Government of India (GoI; rated CareEdge BBB+/Stable ‘Unsolicited’), which holds a 62.9% stake in the bank as of June 30, 2026. The bank’s systemic importance as one of India’s leading public sector banks (PSBs) with sizeable market share in domestic banking, high socio-political relevance, contagion risk, and strong public perception underscores the likelihood of strong, extraordinary sovereign support whenever required. The demonstrated history of capital infusion by the GoI into PSBs, along with Canara Bank’s role in financial inclusion, results in its credit profile being equated to that of the sovereign. The GoI has demonstrated strong and sustained support for PSBs through the Indradhanush framework, recapitalisation programmes and budgetary allocations, with total capital infusions amounting to Rs 3 trillion. During FY16-FY20, the GoI infused a cumulative equity capital of over ~Rs 214 billion into Canara Bank and Syndicate Bank, which was amalgamated with Canara Bank in 2020. Further, the GoI’s majority stake, coupled with substantial board-level representation alongside the Reserve Bank of India (RBI), provides a high degree of oversight and control, thereby promoting institutional stability. Canara Bank’s core credit profile derives strength from its established domestic franchise, strong market position, diversified loan portfolio, comfortable capitalisation, and adequate liquidity and funding. Its extensive network in India especially in southern region and large customer base support a granular and increasingly retail-oriented portfolio. The amalgamation of Syndicate Bank in 2020 further strengthened the bank’s scale, distribution reach and business franchise, while healthy capital buffers provide adequate headroom for future growth. The bank has witnessed a sustained improvement in asset quality, reflected in lower slippages, healthy recoveries, and adequate provisioning coverage. These strengths are tempered by moderate earnings, a current account savings account (CASA) ratio that remains lower than that of certain large peers, and residual credit risks arising from its exposure to the MSME and agriculture segments. Internal Rating Rationale September 23, 2026 Outlook The stable outlook for Canara Bank, in line with the Indian sovereign, reflects CareEdge Global’s expectation of continued support from the GoI and the bank’s strategic importance within the PSB framework. The rating outlook on Canara Bank will move in tandem with our outlook on India’s sovereign rating. Rating sensitivities Upward factors • Any upward revision in the sovereign rating or outlook of India by CareEdge Global Downward factors • Any downward revision in the sovereign rating or outlook of India by CareEdge Global • Material dilution in support philosophy of the GoI or a significant decrease in its shareholding below the majority mark • Significant deterioration in its capitalisation profile or asset quality on a sustained basis, indicating a weakening of systemic importance Analytical approach CareEdge Global has evaluated Canara Bank’s business and financial risk profile on a consolidated basis, including its subsidiaries and associates, considering the business and financial linkages as well as the shared brand. CareEdge Global has equated Canara Bank’s rating with the GoI's rating, using its criteria for rating government-related entities (GRE). Key rating drivers Strengths Systemic importance and GoI ownership support assessment As one of India’s leading PSBs, Canara Bank plays a critical role in promoting financial inclusion and providing banking access to a broad customer base, including rural and semi-urban populations, through its extensive network of over 10,000 branches. As part of the PSB ecosystem, which accounts for nearly 55% of the country's banking assets, Canara Bank supports the GoI’s policy objectives by facilitating credit flow to priority sectors such as agriculture, MSMEs, and infrastructure. PSBs also serve as important stabilising institutions during economic downturns through countercyclical lending, contributing significantly to the country's financial and economic stability. Over the past decade, the GoI has undertaken several measures to strengthen PSBs, including recapitalisation support exceeding Rs 3 trillion during FY16-21, consolidation of 27 PSBs into 12 entities, and various governance and risk management reforms. Given the importance of PSBs within the financial system, their performance has a direct bearing on investor confidence and perceptions of financial sector stability. Consequently, the GoI has a strong incentive to provide timely support to these institutions when required. Furthermore, both the GoI and the RBI have historically demonstrated support for PSBs as well as private sector scheduled Internal Rating Rationale September 23, 2026 commercial banks (SCBs), with no instance of an SCB defaulting on obligations to depositors or lenders in India. Canara Bank’s majority government ownership reflects strong sovereign linkage and underpins the expectation of continued support under normal as well as stressed conditions. Distress at a PSB could have broader systemic repercussions, including adverse effects on market confidence and contagion risks across the financial system. Given Canara Bank’s importance in the banking sector and the demonstrated willingness of the sovereign to support systemically important financial institutions, a strong expectation of sovereign support is factored into the credit assessment. Accordingly, the bank's rating incorporates a two-notch uplift for sovereign support. Strong market position in the domestic banking sector with a diversified portfolio Sizeable operations, a track record of ~120 years, and extensive reach have established Canara Bank's strong position among domestic PSBs. As of March 31, 2026, the bank accounted for over 5% of the Indian banking system’s advances and deposits. Its significant scale is evidenced by consolidated total assets of approximately Rs 18.9 trillion as of March 31, 2026. The bank benefits from a well-diversified distribution network across domestic and overseas markets, comprising over 10,000 branches and around 11,000 ATMs, supported b [Showing first 8,000 characters — download PDF for full document]