ICRA assigns LAAA to PNB's Rs 1,000 cr long term bonds

New Delhi, Jun 2 (UNI) Credit rating agency ICRA today assigned a LAAA rating to the Rs 1,000 crore long-term subordinate bonds of Punjab National Bank (PNB), indicating highest credit quality.

PNB also has ratings of LAAA to the outstanding long-term subordinate bonds, MAAA rating to the fixed deposit programme and an A1+ rating to the Certificate of deposit programme.

All the ratings indicate highest credit quality and take into account the strong franchise of PNB resulting in low cost stable deposit base and a growing credit portfolio.

The rating also factors in stable core profitability of the bank, its improving asset quality, well covered NPAs imparting it a favourable solvency profile and its comfortable liquidity position.

It further gets comfort from the sovereign ownership of the bank and importance of PNB being the third largest commercial bank in the country.

UNI CS PV HT1505