Punjab National Bank (PNB), one of the leading public sector lenders in India, announced that the bank is raising Rs 5 billion Tier-II Basel III compliant bonds at an annual coupon of 9.35% on private placement basis from Sept. 04, 2014 to Sept. 09, 2014 through five arrangers.

The stock had underperformed the market over the past one month till Sep. 03, 2014, falling 18.68% compared with the Sensex's 6.51% rise. It underperformed the market in past one quarter, declining 6.93% as against 9.18% rise in the Sensex.

Shares of the bank declined Rs 19.2, or 2%, to trade at Rs 941.50. The total volume of shares traded was 73,886 at the BSE (2.05 p.m., Thursday).