PNB raises Rs 1,500 cr by issuing Basel III bonds

Punjab National Bank (PNB) on Wednesday said it has raised Rs 1,500 crore by issuing Basel III compliant bonds on private placement basis. The bank has issued and allotted Rs 1,500 crore tier II (Basel III compliant) capital bonds at a coupon of 7.10 per cent per annum on private placement basis, PNB said in a regulatory filing.

The bank has allotted a total of 15,000 bonds to three allottees.

Globally, banks are required to improve and strengthen their capital planning processes under the Basel-III Capital Regulations.

These regulations were put in place in the aftermath of global sub-prime crisis to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Shares of PNB closed at Rs 29.25 apiece on the BSE, down 1.02 per cent from previous close.