Punjab & Sind Bank raises Rs 1,000 cr from bonds

State-owned Punjab & Sind Bank today raised Rs 1,000 crore through issuing bonds to fund business growth.

The fund raised through Basel-III compliant AT-1 Bonds, the bank said in a regulatory filing on stock exchanges.

The issue was fully subscribed and bids for Rs 1,000 crore with coupon of 10.90 per cent were accepted, 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 Reserve Bank of India.

AT-1 bonds qualify as core or equity capital are one of the means of raising capital by public sector banks.