On Wednesday, according to the bank’s exchange filings, the Punjab National Bank (PNB) board approved debt raising of up to Rs 12,000 crore in tranches or multiple tranches.

Of the total Rs 12,000 crore, Rs 7,000 crore will be raised through additional primary bonds and Rs 5,000 crore through secondary bonds for Basel III complaints, according to the notice.

Last week, the bank managed to raise Rs 974 crore through additional Tier 1 bonds at a coupon rate of 8.75%. It was the first AT-I bond issued by a major Indian bank after the Credit Suisse crisis raised concerns about the risks associated with such instruments.

Including PNB’s last fundraising, Indian banks have raised Rs 34,394 crore through AT-1 bonds as of FY23. As of the end of December, the bank’s capital adequacy ratio was 15.15%, of which the tier-one capital adequacy ratio of ordinary shares was 10.84%, the AT-1 capital adequacy ratio was 1.37%, and the tier-two capital adequacy ratio was 2.94%.

Shares of the bank closed 2.9% higher at Rs 46.21 per share on the BSE on Wednesday.