State-owned Punjab National Bank on Thursday said it has raised Rs 1,919 crore by issuing Basel compliant bonds. It has issued a total of 1,919 bonds under the issue.
Basel III is an international regulatory accord that introduced a set of reforms designed to mitigate risk within the international banking sector, by requiring banks to maintain proper leverage ratios and keep certain levels of reserve capital on hand.
The bank has issued and allotted Basel III compliant tier-II bonds at a coupon of 7.10 per cent per annum aggregating to Rs 1,919 crore on a private placement basis, it said in a BSE filing.
PNB, The country’s second-largest lender, reported a 78 per cent increase in net profit at Rs 1,105 crore for the second quarter ended September 30. The company had posted a net profit of Rs 620.81 crore during the corresponding quarter a year ago.
At present Punjab National Bank has an overseas presence in 6 Countries. It accounts for 2.6% of the total business of the bank. The bank has a base of more than 18 crore customers post the merge
Earlier this month, rating agency ICRA had upgraded tier I and tier-II bonds of Punjab National Bank (PNB) and Canara Bank due to improvements in their capital position and profitability. Both banks had also reported that their solvency profile has improved. PNB had a capital adequacy ratio of 15.2 per cent in September 2021
Shares of Punjab National Bank closed at Rs 41.70 apiece on BSE, up 2.58 per cent from the previous close.
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