Punjab & Sind Bank raises Rs 300 cr from bonds

NEW DELHI: State-owned Punjab & Sind Bank (PSB) today raised Rs 300 crore from bonds to fund business growth.

The fund has been raised through unsecured redeemable subordinated Tier II bonds with a coupon rate of 9.73 per cent per annum, PSB informed the Bombay Stock Exchange.

The bank expects to clock 28 per cent increase in advances, while deposits are likely to grow at 30 per cent in the current fiscal.

During 2010-2011, deposits rose by 21.5 per cent to Rs 59,723 crore, while advances jumped 30.8 per cent to Rs 42,833 crore. Thus, the total business of the bank crossed Rs 1,02,555 crore at end of March, 2011.

For the entire fiscal ended March 31, 2011, the net profit of the bank rose marginally by 3.5 per cent to Rs 526.1 crore from Rs 508.8 crore recorded in the previous fiscal.