Comments
Punjab National Bank (PNB), country’s second largest public sector bank, on Thursday said that it has raised ₹1,153 crore capital via Additional Tier-1 bonds.
These Basel III-compliant additional Tier-1 bonds have been issued and allotted on a private placement basis, PNB said in a stock exchange filing.
The bonds have been raised at a coupon of 8.55 per cent per annum. There were ten allottees under the private placement. These bonds, which qualify as Tier-I capital, have a face value of ₹ 1 crore each.
PNB Board had earlier approved fund raise of ₹12,000 crore this fiscal. Of this approved amount, PNB had, till September this fiscal, raised ₹ 6090 crore —₹ 3,000 crore AT-1 bonds and ₹3,090 crore in Tier-II capital.
Targets for this fiscal
PNB is looking to close the current fiscal with profits of at least ₹6,000 crore, higher than the earlier guided level of ₹ 4,000 crore. Already in the first half this fiscal, PNB had recorded profit of ₹3,000 crore.
In the second quarter ended September 30, 2023, PNB had reported a 327 per cent increase in net profit at ₹1,756 crore (₹411 crore). This was up 40 per cent over the net profit of ₹1,255 crore in the first quarter this fiscal.
On the asset quality front, PNB has now set its sights on bringing down GNPA to 6 per cent by end March 2024 and net NPA to below 1 per cent by the end of this fiscal.
PNB is targeting recoveries of ₹22,000 crore this fiscal, of which the bank has already recovered ₹ 11,000 crore (as of October 2023).
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.