Punjab & Sind Bank to raise Rs 1,500 cr via bonds in FY18

Public sector lender Punjab and Sind Bank plans to raise up to Rs 1,500 crore by issuing Basel III compliant bonds in one or more tranches in next fiscal.

The bonds will be issued on a private placement basis.

"The bank proposes to raise funds through issue of Basel III compliant additional tier I up to Rs 1,000 crore and Basel III compliant tier II bonds up to Rs 500 crore during 2017-18 in one or more tranches," it said in an exchange filing.

The board of directors approved the capital raising plan at a meeting held today.

Globally, banks have to comply with global Basel III standards by March 2019 that prepares banks towards meeting contingencies by strengthening their capital base.

A fallout of the global sub-prime crisis triggered in 2008, India has implemented these norms in phases since April 2013.

Banks in India will be fully compliant with these norms by March 2019, two months behind the internationally agreed time frame.

Stock of Punjab and Sind Bank closed 0.46 per cent up at Rs 55.10 on BSE.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)