PNB plans to raise up to Rs 4,000 crore through issuance of tier-2 bonds

The latest round of fundraising by banks comes at a time when credit growth has shown sustained momentum even as growth in deposits continues to lag

State-owned lender Punjab National Bank plans to raise up to Rs 4,000 crore through issuance of tier-2 bonds later this week in order to fund firm loan growth, sources said.

The bonds, which are rated AAA and AA+ by India Ratings and CARE, respectively, are likely to have a tenor of 15 years with the first call option after 10 years, the sources said. The bidding for the bond sale is likely to occur on Wednesday. The issue size is of Rs 1,000 crore with a greenshoe option of Rs 3,000 crore, the sources said.

“There is an indication that