INSUBCONTINENT EXCLUSIVE:
(Ind-Ra) has downgraded Punjab National Bank's additional tier I (AT1) perpetual bonds worth Rs 6,750 crore by one notch to 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
and delays in resolution of certain assets under the National Company Law Tribunal (NCLT) process have led to elevated requirements of
the standalone operations of the bank, the release said.PNB CEO Sunil Mehta had said that the lender would raise Rs 5,000 crore through
rights issue or the QIP route.The bank is also expecting a write-back of Rs 4,000 crore from Essar Steel, and Bhushan Power and Steel.
