PNB plans to raise Rs 6,000 cr via bonds

State-owned Punjab National Bank today said it plans to raise Rs 6,000 crore in tranches from bonds to fund business expansion.
The board has approved issuance of Basel III compliant debt instruments - Perpetual Additional Tier I capital bonds worth Rs 3,000 crore and Tier-II bonds of up to Rs 3,000 crore, PNB said in a regulatory filing to stock exchanges.
The fund raising is subject to availability of headroom in one or more tranches, it said.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.

AT-1 bonds qualify as core or equity capital.