India Ratings and Research (Ind-Ra) has downgraded Punjab National Bank's (PNB) additional tier I (AT1) perpetual bonds worth Rs 6,750 crore by one notch to A/negative outlook from A+/negative.
However, the rating agency has affirmed the bank's overall long-term issuer rating at AA+ and the short-term issuer rating at A1+. The outlook reflects the negative return of asset (ROA) for two consecutive years, weak capitalisation with common equity tier (CET) I of 6.21 per cent in the fourth quarter of last fiscal.
PNB is one of the oldest banks in India having a virtual presence in every important center of the country. The Bank caters to a wide variety of audience through spectrum of services including corporate and personal banking, industrial finance, agricultural finance and international finance.
