Punjab National Bank (PNB) has raised Rs 2,000 crore through capital bonds at a lower rate of 8.75 per cent. The public sector lenders were placed at a lower yield against an indicative rate of 9-9.25 per cent. Last week, the 8.75 per cent rate was shown as an aggressive yield bond, the crude oil price was falling, and US Treasury yields.

According to Clearing Corporation of India data, the yield on the benchmark 10-year Government of India bond (6.54 per cent, 2032) closed at 7.37 per cent. On 1 July (Friday), the closing yield on the benchmark was 7.42 per cent.

The Board of Directors (BOD) of PNB has approved a capital raising plan for 2022-23 aggregating to Rs 12,000 crore, via Basel III compliant instruments AT 1 Bond (up to Rs 5,500 crore) and Tier-2 Bonds (up to Rs 6500 crore). It may raise funds in one or more tranches.