PNB raises Rs 3,090 cr via tier-II bonds & SIDBI Rs 3,000 cr

Mumbai: State-owned Punjab National Bank raised ₹3,090 crore worth of funds through the sale of 15-year tier-II bonds on Tuesday.

The cutoff rate - the rate of interest paid to investors - was set at 7.74%, sources aware of the development said. The bonds have a call option 10 years from the allotment date.

The public sector bank had planned a bond sale with a base size of ₹1,000 crore and a green shoe option of ₹3,000 crore.

Meanwhile, financial institution Small Industries Development Bank of India (SIDBI) raised ₹3,000 crore through the sale of bonds maturing in September 2026 at a rate of 7.55%, sources said.

State Bank of India, the country's largest lender, is expected to tap debt capital markets soon, likely through a sale of additional tier-1 bonds, sources said.