Brickwork Ratings Reaffirms PNB’s Basel III AT1 Bonds at AA+ with Stable Outlook

Punjab National Bank (PNB) has informed the stock exchanges that Brickwork Ratings (BWR) has reaffirmed the long-term credit rating of its Basel III Additional Tier I (AT1) Bonds at “BWR AA+” with a Stable outlook, as per the rating action dated 15 December 2025.

The reaffirmation applies to:

• Outstanding Basel III AT1 Bonds amounting to ₹495 crore, and

• Proposed Basel III AT1 Bonds aggregating ₹2,505 crore,
  taking the total rated amount to ₹3,000 crore.

The disclosure was made in compliance with Regulation 30 and Regulation 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has been communicated to both BSE Limited and the National Stock Exchange of India.

According to Brickwork Ratings, the reaffirmed rating factors in Punjab National Bank’s consistent improvement in asset quality, decline in fresh slippages, comfortable capitalisation levels, and strong liquidity indicators. The rating also reflects the continued majority ownership and expected support from the Government of India, which held a 70.08% stake in PNB as of 30 September 2025.

BWR highlighted PNB’s position as the third-largest public sector bank in India by total business, its extensive nationwide branch network, and its improved capital adequacy. As of 30 September 2025, PNB reported a Total Capital to Risk-Weighted Assets Ratio (CRAR) of 17.19% and a Tier-I capital ratio of 14.41%, both well above regulatory requirements.

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The rating agency also noted the bank’s strong liquidity profile, with an Average Liquidity Coverage Ratio (LCR) of 141.67% and a Net Stable Funding Ratio (NSFR) of 128.94%, providing a comfortable liquidity buffer.

Brickwork Ratings maintained a Stable outlook, indicating expectations that PNB will continue to sustain adequate capital levels and maintain its improving asset quality trajectory over the med