PNB to raise up to Rs 3,000 crores

New Delhi: Punjab National Bank will raise up to Rs 3,000 crore by issuing Basel III compliant bonds in one or more tranches.

The bank's board of directors will meet on September 26 for approval to the fund-raising proposal, Punjab National Bank said in a regulatory filing.

It will raise funds through additional tier-I Basel III compliant perpetual bonds amounting up to Rs 3,000 crore in one or more tranches, PNB said.

Basel III is an international regulatory framework with a set of reforms to improve the regulation, supervision and risk management within the banking sector.

To comply with global Basel III capital regulations, banks need to improve and strengthen their capital planning process.

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

Indian banking system has been implementing Basel III standards in phases since April 1, 2013. The banks are expected to fully implement these norms by March 2020.