Canara Bank Appoints Former PNB CGM Sunil Kumar Chugh as ED
Sunil Kumar Chugh has been appointed as the Executive Director of Canara Bank starting on November 24, 2025, for a duration of three years. Before this, Chugh held the position of Chief General Manager at Punjab National Bank.
He has dedicated 30 years to working in the banking industry. While working at PNB, Chugh played a key role in leading several important changes, adding value to the bank's digital, retail, and corporate banking plans.
Chugh was responsible for overseeing major corporate branches in Kolkata, Ahmedabad, and Mumbai at the former Oriental Bank of Commerce. He also handled important duties at the Corporate Office and various Controlling Offices in various banks.
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He has extensive experience in various areas such as Corporate Credit, Foreign Exchange, Recovering and Resolving Stressed Assets, and Monitoring Credit.
Canara Bank expressed their approval of Shri Chugh's appointment, noting his vast experience and successful history in leading strategic projects will enhance the bank's leadership team and help in its growth.
Additionally, Canara Bank is planning to raise up to Rs.3,500 crore through an Additional Tier-1 (AT-1) bond issue on November 25, which could be the first issuance of its kind in this financial year. The initial size of the issue is Rs.1,500 crore with an option to increase it to Rs.2,000 crore.
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Banks have not been very active in the domestic debt capital market since the beginning of the financial year, leading to a slowdown in overall corporate bond market activity. However, the recent increase in bond issuances is a result of declining bond yields, the anticipation of a 25-bps repo rate reduction in December, and high demand from provident and pension funds seeking to invest in long-term debt.
The upcoming bond issuance will be the first Tier-1 bond issuance of the fiscal year. Banks are introducing Tier-1 and Tier-2 bonds to the market at this time as it is believed that no more cuts will be made after December. Banks view this period as the best opportunity to issue these bonds as the anticipated rate environment is already factored in, making it the most advantageous time to do so, ensuring the lowest interest rate.
According to market participants, banks have not felt the need to issue bonds quickly due to the abundant liquidity in the banking system. This situation has led to a strategic opportunity for banks to issue bonds now. Some banks are taking advantage of this period by issuing Tier-1 and Tier-II bonds to fulfill their funding requirements.
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Even though banks like Bank of India and Bank of Maharashtra have obtained board approvals for infrastructure bonds, they have not yet made any announcements regarding issuances. In the past fiscal year, banks heavily utilized the domestic debt capital market for infrastructure bonds, as deposit growth was not keeping pace with loan growth.