The Hindu Business Line : PNB raises Rs 885 cr via bonds

The bank sold bonds aggregating Rs 885 crore to domestic investors through a bond programme that closed on May 31. "We had gone in for a Rs 500-crore bond issue with a greenshoe option of Rs 500 crore. We have raised Rs 885 crore towards tier-II capital. The coupon rate is 8.45 per cent payable annually and the tenure is 118 months," Mr Arun Kaul, General Manager, PNB, told Business Line.

PNB Chairman and Managing Director, Mr S.C. Gupta, said in mid-May that the Board of Directors of the bank had given their approval for raising Rs 1,000 crore towards tier-II capital. He then said that the funds would be raised within the first quarter of the current fiscal itself.

Rating agency ICRA had assigned an LAAA rating to the Rs 1000 crore subordinate bonds programme of PNB.

As on March 31, 2006, PNB's capital to risk asset ratio (CRAR) stood at 11.95 per cent, lower than 14.78 per cent at the end of March 2005. For the financial year ended March 31,2006, PNB reported a net profit of Rs 1,439.31 crore compared to net profit of Rs 1,410.12 crore recorded in the previous year.

More Stories on : Public Sector Banks | Punjab National Bank

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Banks told to claim subsidy on farm credit every quarter

TN postal circle plans warehouse near Chennai

Postal finance mart

Leveraging forex reserves smartly

Rupee gains against dollar

Catholic Syrian Bank net down at Rs 6.14 cr

Malaysia's CGC deploys KASTLE

`Market to determine LIC's product mix'

Mortgage-backed term cover plans face hiccups

Bonds gain as US yields fall

PNB raises Rs 885 cr via bonds

Call rates unchanged

Punjab & Sind Bank hikes NRE, FCNR deposit rates

Westpac ties up with Standard Chartered

Home loan rates seen up 25-50 bps in 6 months