Punjab National Bank said its board has approved a proposal to raise Rs 7,500 crore capital.
The fundraising exercise will be done in one or more tranches during the next financial year, the state-owned bank said in a late-night regulatory filing on Thursday.
The board of directors, during a meeting on Thursday, approved the proposal to raise equity capital in one or more tranches during 2024-25 through qualified institutional placement (QIP) or follow-on public offering (FPO) or any other permitted mode or a combination, it said.
The country’s second largest public sector bank had received board approval to raise capital of Rs 12,000 crore in 2023-24. It had raised Rs 6,090 crore — Rs 3,000 crore AT1 bonds and Rs 3,090 crore in Tier-II capital — till end-September this fiscal.
The Delhi-based lender raised Rs 8,214 crore in capital through AT1 and tier II bonds in 2022-23 against board approval of Rs 12,000 crore.
It issued AT1 bonds worth Rs 4,213 crore and tier II bonds worth Rs 4,000 crore in
2022-23.
The bank also said it has raised Rs 1,153 crore capital via additional tier-I bonds.
These Basel III compliant additional Tier-I bonds have been issued and allotted on a private placement basis, PNB said in another stock exchange filing.
The bonds have been raised at a coupon of 8.55 per cent per annum. There were 10 allottees under the private placement. These bonds, which qualify as Tier-I capital, have a face value of Rs 1 crore each.
Atul Kumar Goel, managing director and CEO, PNB, had said the bank was comfortably placed with a 15-plus per cent capital adequacy ratio.
