PNB raises Rs. 1,500 cr tier-I capital via bonds
Public sector Punjab National Bank (PNB) has raised Rs 1,500 crore additional tier-I capital by issuing bonds on private placement basis. The bond holders will get yield of 8.95 per cent per annum, payable semi-annually.
"The bank raised Rs 1,500 crore additional tier I capital bonds at a coupon rate of 8.95 per cent per annum, payable semi annually on private placement basis," PNB said in a regulatory filing.
The bonds in the nature of unsecured, subordinated, fully paid-up, non-convertible are Basel III compliant.
These are perpetual debt instruments which neither carry maturity date nor are they redeemable, which means these bonds are eligible to be treated as equity than debt.
The global Basel III banking norms are being implemented to improve banks' capital planning to address concerns emanating from potential stresses on asset quality and impact on performance and profitability.
India is implementing Basel III standards in phases since April 2013 and is expected to be fully compliant by March 2019.
India is little behind to meet these standards from internationally agreed deadline of January 1, 2019.
Shares of PNB closed 0.32 per cent up at Rs 139.65 on BSE.