CALCULATE YOUR SIP RETURNS

Punjab & Sind Bank to Raise ₹3,000 Crore From First-Ever Infrastructure Bonds

Updated on: Dec 18, 2024, 4:07 PM IST
Punjab & Sind Bank to issue ₹3,000 crore in 10-year infrastructure bonds, exempt from CRR/SLR, boosting credit growth and infrastructure financing.
Punjab & Sind Bank to Raise ₹3,000 Crore From First-Ever Infrastructure Bonds
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Punjab & Sind Bank has successfully concluded its maiden infrastructure bond issuance, raising ₹3,000 crore to strengthen its lending capacity and support infrastructure financing. The bond issue, which was opened and closed on December 18, 2024, included a base size of ₹500 crore and a greenshoe option of ₹2,500 crore.

Details of the Bond Allocation

The bonds, categorized as unsecured, subordinated, redeemable, non-convertible, taxable, and fully paid-up, carry a coupon rate of 7.74% per annum. Each bond was issued with a face value of ₹1 lakh, resulting in a total issuance of 3,00,000 bonds.

The bidding process was conducted on the NSE’s Electronic Bidding Platform (EBP), where 93 bids were received. Out of these, 52 bids were accepted. The deemed date of allotment for the bonds is set for December 20, 2024.

The long-term infrastructure bonds are exempt from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements, enabling the bank to deploy the entire proceeds exclusively for lending activities. This issuance marks a significant step for Punjab & Sind Bank in expanding its financial capabilities and meeting its credit growth target of 13-14% for the fiscal year.

Punjab & Sind Bank H1 FY25 Results

In the second quarter of FY25, the bank posted a 26% growth in net profit, reaching ₹240 crore, driven by a sharp reduction in non-performing loans (NPLs).

The bank’s total income for the quarter rose to ₹3,098 crore, compared to ₹2,674 crore in the same period last year, reflecting a year-on-year increase. Interest income saw a solid 14% rise, climbing to ₹2,739 crore.

In terms of asset quality, the Gross non-performing assets (NPAs) declined to 4.21% of gross advances as of September 2024, improving from 6.23% a year earlier. Similarly, net NPAs stood at 1.46%, down from 1.88% during the same period.

On December 18, 2024, Punjab & Sind Bank share price dropped 1.25% to ₹50.71 on BSE at 2:51 PM (IST).

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 18, 2024, 4:07 PM IST

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 2.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 2.5 Cr+ happy customers