Punjab & Sind Bank Plans Rs 3,000 Crore Infrastructure Bond Issue

05 Dec 2024 CW Team

Punjab & Sind Bank, a state-owned institution, is set to raise Rs 3,000 crore through the issuance of 10-year infrastructure bonds, targeting the domestic capital market in mid-December. The bond issue, which has a base size of Rs 5 billion and a green-shoe option of Rs 25 billion, is rated ‘AA’ by domestic rating agencies CRISIL and IndiaRatings.

This move comes after Bank of India successfully raised Rs 50 billion via similar bonds earlier this year at a coupon rate of 7.41 percent. In FY25, commercial banks’ infrastructure bond issuances are expected to surpass Rs 1 trillion, almost doubling the total raised in FY24. To date, banks have raised approximately Rs 800 billion in FY25, compared to Rs 51,081 crore in FY24. Notably, State Bank of India has already raised Rs 30,000 crore through 15-year infrastructure bonds.

Infrastructure bonds are increasingly favored by banks as they are exempt from regulatory reserve requirements such as the statutory liquidity ratio (SLR) and cash reserve ratio (CRR). Unlike deposits, which require banks to maintain a significant portion as CRR and invest in securities, funds raised through infrastructure bonds can be fully deployed for lending activities.

The demand for infrastructure bonds is growing, with banks preferring them over high-risk instruments like AT-1 bonds and Tier-2 bonds. While AT-1 bonds feature discretionary coupon payments and loss-absorption mechanisms, Tier-2 bonds are less risky with fixed maturities and mandatory coupon payments.

Infrastructure Transport

01 Sep 2025

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..