PNB Plans To Raise Up To Rs 3,000 Crore Through Basel III Compliant Bonds

Punjab National Bank will raise up to Rs 3,000 crore by issuing Basel III compliant bonds in one or more tranches, the state-run lender said on Thursday, adding that its board of directors will meet on Sept. 26 for approval of the fundraising.

PNB will raise funds through additional Tier-I Basel III compliant perpetual bonds worth up to Rs 3,000 crore in one or more tranches, its exchange filing stated.

Basel III is an international regulatory framework with a set of reforms to improve the regulation, supervision and risk management within the banking sector.

Banks need to improve and strengthen their capital-planning process to comply with global Basel III norms. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

The Indian banking system has been implementing Basel III standards in phases since Apr. 1, 2013. The banks are expected to fully implement these norms by March 2020.

On Thursday, PNB shares fell 1.63 percent to Rs 62.00 apiece on the BSE while the benchmark Sensex shed 1.29 percent to end the day at 36,093.47 points.