Banks renew AT-1 sales after two-month gap, PSUs lead pack to raise credit

Public sector lenders would end up issuing around Rs 13,500 cr worth of such bonds in coming weeks

There was a lull in issuing additional tier-1 (AT-1) bonds in October and November, but banks are now showing renewed enthusiasm when it comes to raising capital through such instruments.

Public sector lenders lead the trend, outlining plans to tap debt capital markets by issuing AT-1 bonds. State Bank of India, the country’s largest lender, said on Wednesday its central board had approved plans to raise Rs 10,000 crore through fresh issuances of AT-1 bonds.

According to market sources, Bank of Maharashtra and Punjab National Bank are also likely to sell AT-1 bonds worth around Rs 1,000 crore each.

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