As competition for deposits increases, the public sector lender Punjab and Sind Bank is turning to infrastructure bonds as a cost-effective way to raise funds. These bonds are attractive to banks as they provide tax exemptions and do not count towards regulatory reserve requirements or priority sector lending. Punjab and Sind Bank has approvals in place for an overall fundraising of Rs 10,000 crore, including QIP and bond offerings. These bonds have been given an "AA\Stable" rating by CRISIL and the domestic bond yields have remained stable in recent months, according to the RBI's monthly bulletin.