ICRA reaffirms credit ratings of Punjab & Sind Bank; Stock sheds 1%

The Negative outlook on the Additional Tier I bonds factors in the complete erosion of the distributable reserves because of the high losses generated in 9M FY2021.

May 25, 2021 12:05 IST India Infoline News Service

ICRA reaffirms ratings of Punjab and Sind Bank on Tier bonds of the bank.

Basel II Lower Tier II Bonds has been reaffirmed to ICRA AA- (Negative) and Certificates of Deposit has been reaffirmed to ICRA A1+.

The ratings reaffirmation takes into account Punjab & Sind Bank’s (P&SB) sovereign ownership and the Government of India’s (GoI) demonstrated track record of capital infusion into the bank. In this regard,

The reaffirmation further considers P&SB’s established presence and branch network in North India along with its stable deposit base, comfortable liquidity coverage ratio (LCR) and excess statutory liquidity ratio (SLR) holdings in relation to the average net demand and time liabilities (NDTL).

The Negative outlook on the Additional Tier I (AT-I) bonds factors in the complete erosion of the distributable reserves (DRs) because of the high losses generated in 9M FY2021.

At around 12:10 PM, Punjab & Sind Bank was trading at Rs21.05 apiece down by Rs0.3 or 1.41% from its previous closing of Rs21.35 apiece on the BSE.

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