PNB board approves Rs 6,000 crore capital raising plan

The plan includes raising of AT-1 bonds or AT-2 bonds or a combination of both. The capital would be raised in one or more tranches

The board of Punjab National Bank has approved raising of capital through Basel III-compliant Additional Tier-1 (AT-1) bonds and Tier II bonds up to an amount of Rs 6,000 crore.

The plan approved by the lender’s board includes raising of AT-1 bonds or AT-2 bonds or a combination of both. The capital would be raised in one or more tranches, the lender said in an exchange filing.

As AT-1 bonds are considered to be risky, the Securities and Exchange Board of India (Sebi) had earlier sought to value banks’ deemed residual maturity of Basel III additional tier 1 (AT1) bonds as 100-year