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PNB gets approval to raise up to ₹6,000 crore through bonds

The board of directors of the Punjab National Bank (PNB) met on Friday to discuss a proposal to raise capital through the issue of Basel-III compliant Additional Tier-1 (AT-1) and Additional Tier-II bonds, or a combination of the two. The PNB Board of Directors approved a capital raise of up to 6,000 crore.

The Bank's Board of Directors "approved raising of capital through issue of Basel III additional Tier-1 (AT-1) bonds or Tier II bonds or a combination of both in one or more tranches up to an amount of ₹6,000 crore" according to a regulatory filing.

Meanwhile, as part of its festival season offering, PNB has abolished all service charges and processing fees on retail products. According to a press statement, the bank has introduced a festival bonanza offer to increase the availability and affordability of loans for consumers.

PNB now has an excellent interest rate starting at 6.80% on home loans and 7.150% on vehicle loans, according to the bank official.

The bank will abolish all service/processing costs and paperwork charges on its retail products such as house loans, auto loans, myProperty loans, personal loans, pension loans, and gold loans as part of the festive offer, according to PNB.

PNB also offers personal loans with rates as low as 8.95 percent, one of the lowest in the sector, according to the bank official.

It also announced that it would offer home loan top-ups at a low rate of interest. Customers can take advantage of these deals till 31 December 2021, according to PNB. The Delhi-based lender is optimistic about a positive rebound in general consumer spending, which would help it expand its lending portfolio.

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