CRISIL places Punjab National Bank's bond ratings on watch with developing implications

Punjab National Bank announced that CRISIL has placed the ratings of the Bank's bonds on 'Rating watch with Developing Implications'. This has been done on account of the announcements made by the Ministry of Finance (MoF) GoI, with respect to the proposed amalgamation of public sector banks as there has been significant progress on the amalgamation including approvals from the Boards of the banks. CRISIL will resolve the rating watch once clarity emerges, post-merger completion, on the merged entity's business and financial profile. CRISIL will monitor for potential integration challenges and any impact on the earnings profile of the merged entity. The asset quality of the merged entity will also be a monitorable. However, on resolution of the rating watch, the rating on the debt instruments of the merged entity is unlikely to move by more than one notch.

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