Punjab & Sind Bank to raise Rs 500 cr via Basel III bonds

NEW DELHI: State-owned Punjab & Sind Bank will raise Rs 500 crore by issuing Basel III compliant bonds through private placement.

"The Bank intends to raise Basel III compliant Tier II bonds through private placement aggregating up to Rs 500 crore," the bank said in a regulatory filing.

The proposed bond issue has been rated as 'AA' by CARE & 'AA' (negative outlook) by Crisil.

The bids for issue of bonds shall be invited through electronic bidding platform (EBP), it said.

As per Basel III norms banks need to improve and strengthen their capital planning processes.

The norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Being implemented in phases since April 1, 2013, India is expected to fully implement Basel III standards by March 2019.

This will align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019.

Shares of the bank closed 1.05 per cent up at Rs 52.90 apiece on BSE.