Punjab National Bank raises Rs 1,500 cr via bonds

 State-owned Punjab National Bank (PNB) on Thursday said it has raised Rs 1,500 crore by issuing Basel III compliant bonds.

bank will use funds for business expansion.

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"Our Bank has issued and allotted Rs 1,500 crore Tier - II Basel III-compliant capital bonds at a coupon of 8.15 per cent per annum on private placement basis," PNB said in a regulatory filing.

lender has issued 15,000 redeemable Basel III compliant Tier II bonds in nature of debenture of Rs 10 lakh each, it said.

To comply with Basel III capital regulations, banks need to improve and strengn ir capital planning processes.

se rms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

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Indian banking system has been implementing Basel III standards in phases since April 1, 2013, and are expected to fully implement se rms by March 2020.

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