PNB, BoB, Syndicate to raise Rs 7,000 crore via AT-1 bonds

Question:-Standard & Poor’s is a …
(a) US rating agency
(b) Famous novel
(c) US guideline on trade
(d) None of the above.
Ans: (a)
Related facts:-

  • Bank of Baroda (BoB), Punjab National Bank (PNB) and Syndicate Bank — are raising a total of Rs 7,000 crore through Tier-I bonds, to bolster their Capital Adequacy Ratio (CAR).
  • Accordingly, PNB is raising up to Rs 3,000 crore, BoB will issue AT-1 bonds for Rs 3,000 crore and Syndicate bank will raise about Rs 1,000 crore.
  • Importantly, AT-1 bonds are also known as perpetual bonds. These allow banks to raise capital in compliance with Basel III norms. Unlike regular bonds, they don’t have a maturity date and the issuing bank can either repay the principal after a pre-determined date or continue paying interest forever.

Reference:
http://www.business-standard.com/article/finance/pnb-bob-syndicate-to-raise-rs-7-000-crore-via-at-1-bonds-117072400022_1.html