The third largest public sector lender Punjab National Bank (PNB) today raised Rs 1,500 crore from Basel III-compliant bonds through private placement.
"The bank has raised Rs 1,500 crore tier II (Basel III compliant) capital bonds," PNB said in an exchange filling, adding the debt instrument carries an annual coupon of 8.65 per cent.
Domestic banks have to comply with Basel-III standards by March 2019, which require them to have higher capital base to prtotect themselves from financial risks emanating from global headwinds. The new stringent capital norms were framed after the 2008 global financial crisis.
Following this the Reserve Bank has issued the Basel-III norms for implementation in a phased manner till 2019. Many banks have been raising funds to meet these requirements.
A Fitch Ratings report estimates a requirement of USD 140 billion by the banks to fully comply with the Basel III norms by March 2019.
PNB shares today closed 4.07 per cent up at Rs 94.64 on the BSE whose benchmark Sensex rose 279 points.
