Pub­lic sec­tor banks weigh tier-i bond sales

Mint ST - - THE BRIEFING -

Mum­bai: Banks are plan­ning to sell Basel-iii com­pli­ant ad­di­tional tier-i bonds (AT-1) in a bid to strengthen their cap­i­tal base, at a time when in­vestors’ ap­petite for such in­stru­ments is lower be­cause of pre­vail­ing as­set qual­ity is­sues. State-owned banks such as Bank of Bar­oda, Pun­jab Na­tional Bank (PNB), Cor­po­ra­tion Bank and two other banks may soon sell such bonds, ac­cord­ing to three mer­chant bankers. Bank of Bar­oda has board ap­proval to raise at least Rs500 crore through such AT-1 bonds, ac­cord­ing to the lender’s ex­change fil­ing. PNB has an en­abling ap­proval to raise Rs3,000 crore of th­ese bonds in one or more tranches. PAGE 8

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