Punjab & Sind Bank raises Rs 300 crore via issue of lower Tier-II bonds

Punjab & Sind Bank has raised Un-secured Redeemable Non-convertible Subordinated Lower Tier-II Bonds for Rs 300 crore with a coupon of 9.73% p.a. payable annually, tenor of 124 months with call option at the end of 6 years. The Issue opened and closed on June 20, 2011.

Earlier in May, the bank increased the interest rate on Domestic Term Deposits by 50 basis points for tenor of 7-14 days and tenor of 1-2 year maturity period, which were effective from May 30, 2011. Under the revised rates, domestic term deposit with tenor of 7-14 days was at 4.00% p.a. and for 1-2 years was at 9.50% p.a.

Punjab & Sind Bank, a GoI undertaking and one of the 19 nationalized banks in India has significantly grown its branch network with a presence predominantly in north India.