State-owned Punjab National Bank today said it plans to raise Rs 6,000 crore in tranches from bonds to fund business expansion.
The board will be considering issuance of Basel-III compliant debt instruments — Perpetual Additional Tier-I capital bonds worth Rs 3,000 crore and Tier-II bonds of up to Rs 3,000 crore, PNB said in a regulatory filing to the stock exchanges.
The fund-raising is subject to availability of headroom in one or more tranches, it said.
The board meeting will be held on November 4, it added.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.
AT-1 bonds qualify as core or equity capital.