PNB gains on raising Rs 582 cr via AT1 bonds

Punjab National Bank (PNB) rallied 3.02% to Rs 51.20 after the the public sector lender said it has raised Rs 582 crore by issuing bonds at a coupon of 8.40% per annum on a private placement basis.

The state-run bank allotted 8.40% unsecured, subordinated, non-convertible, fully paid-up, taxable, basel III compliant additional tier I bonds of Rs 1 crore each, which will qualify as tier I capital. The bank issued bonds to 10 investors.

PNB is the second largest public sector bank (PSB) and the third largest bank in the Indian banking system. It is engaged in the business of treasury, corporate/wholesale banking, retail banking, and other banking operations. The Government of India (GoI) held 73.15% stake in the bank as on 30 September 2022.

The PSU bank's net profit declined 62.8% to Rs 411.27 crore despite of 8.2% rise in total income of Rs 23,001.26 crore in Q2 FY23 over Q2 FY22.

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