Punjab National’s Board Approves Bond Plan to Raise $816 Million

(Bloomberg) -- Punjab National Bank’s board has approved plans to raise 60 billion rupees ($816 million) through the sale of bonds.

The New Delhi-based lender, which has been hit by a slew of scandals of the past years, can raise funds by issuing one or more tranches of Additional Tier 1 or Tier 2 notes that comply with Basel III capital norms, it said in an exchange filing Friday.

Read more: Fraud-Hit Indian Bank Eyes Image Makeover, Expects Profits

Punjab National Bank in 2018 alleged it was swindled of $2 billion by a jeweler who colluded with bank officials. The lender reported two further incidents stemming from improper loans in 2019. 

©2021 Bloomberg L.P.