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PNB raises Rs 1,800 cr from bonds to fund infra projects

"The bank has raised Rs 1,800 crore via long-term bonds for infrastructure project finance and affordable housing in the nature of debentures," Punjab National Bank (PNB) said in a statement. The 10-year bonds were issued at an annual coupon rate of 8.35 per cent on private placement basis on March 24, 2015, the statement said. Shares of PNB closed at Rs 161.60 per unit, down 0.95 per cent on
the BSE.

In order to encourage infrastructure development and affordable housing, RBI last year exempted long term bonds from mandatory regulatory norms like cash reserves ratio (CRR), statutory reserves ratio (SLR) if the money raised is used for funding of such projects. CRR is the portion of deposits which the banks are required to have in cash with the central bank.
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