PNB Will Raise Rs 12000 Crore By Issuing Bonds

PNB will raise Rs 12000 crore by issuing bonds, this is the planning of the bank.

Punjab National Bank (PNB) on Tuesday said its board of directors has approved a proposal to raise Rs 12,000 crore by issuing bonds to boost business.

PNB said in the filing that the board has approved raising of capital up to Rs 12,000 crore by issuing Basel III compliant AT-1 bonds of up to Rs 5,500 crore and Tier-II bonds of up to Rs 6,500 crore in one or more tranches.

As per Basel III guidelines, AT-1 bonds are considered to be permanent in nature, similar to equity shares. It is part of the Tier-I capital of banks.

Earlier, state-owned Punjab National Bank (PNB), in a regulatory filing on March 21, had informed that its board of directors would consider its plan to raise capital through debt for the next financial year on March 29.

PNB had said, “The meeting of the Board of Directors of the company is scheduled on March 29, 2022.”

“The proposal to raise capital through the issue of additional Tier-I bonds and/or Tier-II bonds or both, as per Basel-III, in one or more phases for FY2022-23.”

In such a situation, earlier the situation was clear that PNB is going to raise capital, but the information about how much capital is to be raised came after the meeting on 29 March.

MD & CEO of PNB.

Let us tell you that only last month, PNB got a new Managing Director and Chief Executive Officer. On February 1, Atul Kumar Goel took over as the Managing Director and Chief Executive Officer of PNB.

In the information given to the stock exchanges, PNB had said that Goyal has taken over the post of MD and CEO of the bank with effect from February 1, 2022.

Earlier, on January 1, 2022, Goyal was made Officer on Special Duty in PNB. Goyal has previously been the Managing Director and Chief Executive Officer of UCO Bank.