State-owned Punjab & Sind Bank has raised Rs 1,000 crore through issuing bonds to fund business growth. The fund raised through Basel-III compliant AT-1 Bonds. The issue was fully subscribed and bids for Rs 1,000 crore with coupon of 10.90 per cent were accepted.
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 Reserve Bank of India.
Punjab & Sind Bank’s primary business is taking deposits, and making advances and investments, and is principally divided into retail banking, corporate banking, priority sector banking, treasury operations and other banking services such as agency functions for insurance, distribution of mutual funds and pension and tax collection services.