Punjab Sind Bank to raise upto Rs 3K cr via Infra bonds, appoint bankers

Punjab & Sind Bank (PSB) plans to raise up to Rs 3,000 crore through infrastructure bonds. This move is part of a broader strategy to secure cost-effective funding amid stiff competition for deposits. The bank's managing director, Swarup Kumar Saha, highlighted that the softening of bond yields has created a favorable environment for raising funds at lower rates. The bonds will be issued in tranches, with CRISIL assigning an "AA/Stable" rating to the proposed bonds. This fundraising effort is part of a larger plan to raise Rs 10,000 crore, which includes a Qualified Institutional Placement (QIP) for Rs 2,000 crore, Rs 5,000 crore in infra bonds, and Rs 3,000 crore in Additional Tier 1 and Tier 2 bonds. The bank's infrastructure loan book grew by 16.65% year-on-year to Rs 15,274 crore in June 2024, with significant investments in the energy sector and infrastructure projects like roads and ports.