Punjab National Bank raises Rs 994 cr by issuing Basel III compliant bonds

Punjab National Bank (PNB) on Wednesday said it has raised Rs 994 crore by issuing Basel III compliant bonds on private placement basis.

"The bank has issued and allotted Rs 994 crore tier II (Basel III compliant) capital bonds at a coupon of 7.25 per cent per annum on private placement basis," PNB said in a regulatory filing.

The issue opened on July 27 and closed on July 29, PNB said.

There were a total of 17 allottees under this issue, the public sector lender said.

To comply with Basel-III Capital Regulations, banks need to improve and strengthen their capital planning processes.

These norms are being implemented to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks.

The Indian banking system has been implementing Basel III standards in phases since April 1, 2013. Banks were expected to fully implement these norms by March 2020.

PNB stock closed at Rs 32.75 on BSE, up 1.87 per cent from the previous close.