PNB to raise Rs 10,000 cr via bonds

Punjab National Bank (PNB) said that its board has approved to raise Rs 10,000 crore through compliant bonds in one or more tranches in financial year 2024-2025.

The bank will raise Rs 10,000 crore through Basel Ill Compliant Bonds (additional Tier-I bonds up to Rs 7,000 crore and Tier- II bonds up to Rs 3,000 crore), to be raised in one or more tranches during FY 2024-25.

On 22 March 2024, the bank has issued and allotted Basel III Compliant Additional Tier-I Bonds at a coupon of 8.47% p.a. aggregating to Rs 1,859 crore on private placement basis.

Earlier in March, the bank in its extraordinary general meeting (EGM) has approved raising equity capital aggregating upto Rs 7,500 crore (including share premium) in one or more tranches during FY 2024-25 through qualified institutions placement (QIP)/follow-on public offer (FPO) or any other permitted mode.

Punjab National Bank is engaged in the business of treasury, corporate/wholesale banking, retail banking, other banking operations. As on 30 June 2023, Government of India held 73.15% take in the bank.

The bank's standalone net profit stood at Rs 1,756.13 crore in Q2 FY24, steeply higher from Rs 411.27 crore in Q2 FY23. Total income increased 27.75% year on year (YoY) to Rs 29,383.20 crore in the quarter ended 30 September 2023.

The scrip rose 1.30% to ends at Rs 124.35 on Thursday, 28 March 2024. The domestic market is closed today, on account of Good Friday.

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