PNB Raises Rs 3,090 Cr And SIDBI Rs 3,000 Cr Through Tier-II Bond Offerings

Punjab National Bank (PNB), a government-owned bank, successfully generated funds amounting to Rs 3,090 crore by issuing 15-year tier-II bonds on Tuesday. According to informed sources, the cutoff rate, which signifies the interest rate paid to investors, was determined at 7.74 per cent. These bonds come with a call option that can be exercised after 10 years from the date of allotment. Initially, PNB planned to issue bonds with a base size of Rs 1,000 crore, and they also had a green shoe option of Rs 3,000 crore.

In a parallel development, the Small Industries Development Bank of India (SIDBI), a financial institution, managed to raise Rs 3,000 crore by selling bonds that mature in September 2026. The interest rate on these bonds was set at 7.55 per cent, as per sources.

Sources have indicated that the State Bank of India (SBI), the largest lender in the country, is preparing to access the debt capital markets in the near future. It is likely that SBI will issue additional tier-1 bonds as part of its fundraising endeavours.