Punjab National Bank (PNB), the country’s second largest public sector bank, has said that its board of directors has given its approval to raise funds up to ₹ 12,000 crore.
The capital raising of ₹12,000 crore would be completed in multiple tranches through issue of Basel III compliant AT-1 bonds (upto ₹ 5,500 crore) and tier-II bonds (upto ₹ 6,500 crore), PNB said in a filing with the stock exchanges.
PNB’s board of directors met on Tuesday evening for the capital raising approval.
The latest move comes within two years after the bank decided to mobilise as much as ₹14,000 crore capital through a mix of debt and equity, said a banking industry observer.
PNB has in the last 18 months been raising capital through mix of qualified institutional placement and other routes under the overall planned capital raise of ₹ 14,000 crore.