Union Bank of India ,Union Bank of India) raised ₹663 crore on Wednesday. Punjab National Bank ,PNB) And Bank of Maharashtra (BoM) is expected to raise the funds on Thursday.
“Banks had taken board approval to raise capital this fiscal and are now tanking as the busy season approaches. This is probably the last tranche of Tier 1 issues by public sector banks for this fiscal And it sets them up for potential growth.” loan demand in the fourth quarter,” said a banker aware of the transaction.
Improvement in approach of banks and better market sentiment on AT1 issues yes bank Banks have also benefited from failure. On Wednesday, UBI raised ₹663 crore at 8.40%, lower than the 8.69% it paid to raise ₹1,320 crore earlier this year.
PNB expects to raise ₹1,000 crore through these instruments on Thursday including a green shoe option of ₹500 crore and the issue is priced at 8.20%, lower than the 8.30% paid in September. before his month, State Bank of India Received board approval to raise up to ₹10,000 crore through AT1 bonds. corner Funds can be raised through these instruments before the end of the financial year after raising Rs 6,842 crore so far in FY23.
A banker involved in the fund-raising said, “These fund-raising are routine for banks. As credit demand has improved, banks want to ensure that they maintain adequate risk-weighted capital, especially as deposit growth is still Credit lags behind growth.
Latest RBI (reserve Bank of India) Data show that banking sector loans grew by 18% for the fortnight ended December 2, almost double the 9.8% year-on-year increase in deposit growth.