New Delhi: State-owned Punjab & Sind Bank (PSB) mulls raising Rs 600 crore this fiscal from bonds in order to fund business growth.

"The board has given approval to raise Rs 600 crore from Tier-II bonds in 2011-12," said Punjab & Sind Bank Executive Director P K Anand.

It would be raised in phased manner depending on the requirement, he said.

The bank expects to clock 28 percent increase in advances, while deposits are likely to grow at 30 percent this fiscal, he said.

It is to be noted that the bank, last among the public sector lenders to be listed, raised funds through initial public offering (IPO) an year ago. The bank raised Rs 470.82 crore through IPO, which was subscribed 50.75 times.

During 2010-2011, deposits rose by 21.5 per cent to Rs 59,723 crore, while advances jumped 30.8 per cent to Rs 42,833 crore. Thus, the total business of the bank crossed Rs
1,02,555 crore at end of March, 2011.

For the entire fiscal ended March 31, 2011, the net profit of the bank rose marginally by 3.5 per cent to Rs 526.1 crore from Rs 508.8 crore recorded in the previous fiscal.

Total income improved to Rs 5,369.5 crore from from Rs 4,345.9 crore in 2009-10. The net interest income of the bank rose by 31 per cent to Rs 1,560 crore in 2010-11 against Rs 1,184 crore in the previous fiscal.