Canara Bank plans to raise Rs 2,000 crore, which includes Rs 1,000 crore through Basel-III Tier-II bonds maturing in 10-years, market participants said.

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The bidding for the bonds will take place on August 25 between 11 a.m. and 12 p.m. on the BSE's bidding platform.

Most banks were raising funds in the past few weeks either through certificates of deposit, fixed deposits and bonds amid rising credit demand.

This was even after the rates on these instruments were rising after the Reserve Bank of India (RBI) hiked repo rate 50 basis points in the recent policy.