Punjab & Sind Bank's Ambitious Rs 3,000 Crore Infrastructure Bond Debut

Punjab & Sind Bank plans to issue its first infrastructure bonds, targeting Rs 3,000 crore this month. This is part of a larger Rs 5,000 crore initiative to expand its loan portfolio. The bonds, with a 10-year tenure and listed on the NSE, aim to boost credit growth.

Punjab & Sind Bank is set to issue its first-ever infrastructure bonds, seeking to raise Rs 3,000 crore as part of a wider strategy to expand its loan book. The initiative, which has received board approval for a total of Rs 5,000 crore in tranches, reflects the bank's ambition to support credit growth.

According to Managing Director and CEO Swarup Kumar Saha, the bank plans to launch this fundraising exercise tentatively in the third week of this month, beginning with a base issue size of Rs 500 crore, complemented by a greenshoe option of Rs 2,500 crore. Rated 'AA' by domestic agencies, these 10-year tenure bonds are expected to attract significant domestic investment interest.

Listing on the National Stock Exchange, these bonds provide an advantage for lenders like Punjab & Sind Bank as they are exempt from regulatory reserve requirements, allowing full deployment for lending activities. The bank's latest financial results indicate improved asset quality and a 26% rise in net profit, underscoring its robust position despite past challenges with non-performing assets.

(With inputs from agencies.)