CRISIL

Public sector lender Punjab National Bank has raised Rs 1,859 crore in capital through additional tier I bonds (AT-I bonds) to meet regulatory norms and support business growth. The coupon for the bonds was fixed at 8.47 per cent.The amount raised by the lender was lower than the indicative amount of Rs 2,000 crore. The base issue size was Rs 500 crore with a green issue option of Rs 1,500 crore. These bonds have a call option at the end of five years.

Punjab National Bank raises Rs 1,859 crore in capital via AT-I bonds

Punjab National Bank is quoting at Rs 105.18, up 1.03% .The stock is up 33.9% in the last one year as compared to a 21.51% jump in NIFTY and a 18.81% jump in the Nifty Bank index. Punjab National Bank is up for a third straight session. The stock is quoting at Rs 105.18, up 1.03%Punjab National Bank is quoting at Rs 105.18, up 1.03%. The stock is up 33.9% in the last one year as compared to a 21.51% jump in NIFTY and a 18.81% jump in the Nifty Bank index. The stock is quoting at Rs 105.18, up 1.03%.

Punjab National Bank up for third straight session

Punjab National Bank (PNB) is aiming to reach a significant Rs 30 lakh crore business milestone by March 2026, surpassing its original target of Rs 29.56 lakh crore. Following a record-breaking first quarter in FY26, where the bank saw an 11.6% growth in total business and its highest-ever operating profit of Rs 7,081 crore, CEO Ashok Chandra highlighted a strategic shift toward "profit-led growth." This strategy involves shedding low-yielding corporate loans in favor of higher-margin MSME and retail lending, supported by a strong corporate loan pipeline of Rs 1.29 lakh crore. To maintain a healthy bottom line, the bank is focusing on low-cost CASA deposits while targeting an overall credit growth of 11–12% for the fiscal year.

PNB Eyes Rs 30 Lakh Crore Business Milestone by March 2026

PNB's asset quality has significantly improved, with GNPA at 4.48% and Net NPA at 0.46\ (as of September 30, 2024). The high provision coverage of 90.2% supports this, though GNPA for Agriculture and MSME remains elevated.


PNB's profitability is improving but still average, with consolidated RoA rising to 1% in the first half of fiscal 2025. This improvement is driven by a significant reduction in credit costs to 0.2%. The bank's ability to sustain this improved earnings profile is a key monitorable.


The issuer has made timely interest payments.

Shri Ashok Chandra MD & CEO

PNB is driven by the strong expectation of government support due to its majority ownership and the criticality of the banking system to the economy. The government has historically shown this commitment through massive recapitalization and is expected to prevent any PSB failure while ensuring they meet Basel III capital norms.


PNB is adequately capitalized, reporting an overall CAR of 16.36% and Tier I CAR of 13.63% as of September 30, 2024. This is supported by recent capital raises, including a  5,000 crore QIP, and the expectation of continued government support to meet Basel III norms.



PNB is the third largest PSB in India, with gross advances of  10,61,904 crore and deposits of 14,58,342 crore as of September 30, 2024. The bank holds a 5.8% market share and maintains a focus on the RAM sector, which accounts for 55.8% of its gross advances.

PNB has a large and stable deposit base of  14,58,342 crore (as of September 30, 2024), which remains healthy despite the domestic CASA ratio declining to 39%. The bank's resources are well-diversified, with 79.8% total deposits coming from term and savings accounts.


Rating agency	Rating	Needle position
IND	AA + /Stable	near High Safety
CRISIL	AA + /Stable	near High Safety

Security Name: 8.75% Punjab National Bank (P) Call : 06 Jul 2027

ISIN: INE160A08225

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