Filters

Issuer name
collapse
search
No results found
Issuer type
collapse
Returns Type
collapse
Returns
collapse
Credit Rating
collapse
Payment Frequency
collapse
Perpetual
collapse
Seniority in Repayment
collapse
Instrument Security
collapse
Instrument Category
collapse
Coupon Basis
collapse
Coupon Type
collapse
Zero Coupon
collapse
Listed
collapse
Show basic filters
collapse
Bond name

Rating

Coupon Rate

Payment Freq

Maturity Date

INDIA
AAA
10 YEARS GSEC RATE LINKEDAnnually28 Jun 48
Infomerics
A-(CE)
0%Never31 Dec 26
INDIA
AAA
7.22%Semi Annually02 Jun 27
INDIA
AAA
7.64%Annually02 Aug 31
CARE
AAA(CE)
8.12%Annually24 Aug 24
Infomerics
AA
8.69%Semi Annually04 Apr 25
Unrated
9.70%Annually26 Aug 22
CRISIL
AAA
7.18%Semi Annually20 Jan 27
CRISIL
AAA
7.36%Annually18 Oct 26
CRISIL
AAA
8.48%Annually27 Nov 28
CRISIL
AAA
8.10%Annually19 Nov 25
CRISIL
AA+
7.14%Annually30 Sep 31
CRISIL
AAA
7.74%Annually26 May 37
CRISIL
AAA
7.34%Annually29 Sep 35
Infomerics
AA
8.72%Semi Annually06 Jun 23
CRISIL
AAA
5.75%Annually30 Apr 23
CRISIL
AAA
8.94 %Annually31 Dec 22
INDIA
AA+
8.25%Annually31 Dec 99
CRISIL
AAA
8.48%Annually12 Sep 24
CRISIL
AA+
9.45%Annually31 Dec 99
1-20 out of 1,530

PSU bonds in India

Bonds issued by PSUs (Public Sector Undertakings) are popularly referred to as PSU Bonds. PSUs are government owned institutions that work in the interest of the nation.


Can PSU issue bonds in India?

Yes, government backed PSU (Public Sector Undertakings) issue Bonds. PSUs may issue bonds to fund projects, improve capitalisation (in case of banks) or just for working capital.


Are PSU bonds as safe as government bonds?

PSU bonds can be considered almost as safe as Government Bonds but not at the same level. We say this because even state government guaranteed PSUs have defaulted on their debt in the past. Further, not all PSUs are rated AAA (the highest rating) which shows absence of top notch financial health.


PSU bonds interest rates

PSU bonds have varying interest rates depending on the bond tenure and credit rating. AAA-rated long-term PSU bonds have an interest rate of around ~8% while lower rated PSU bonds have interest rates as high as 11-12%.


Are all PSU bonds guaranteed by the government?

Only some PSU bonds are guaranteed by governments. However, there is an implicit government guarantee applicable on all PSU bonds because of government ownership and support of the PSU.


Are PSU bonds a type of corporate bonds?

Yes, PSU bonds are a type of corporate bond. Corporate bonds are all bonds issued by non government entities: PSU and private companies likewise.


PSU Bonds vs Bonds issued by Private Sector Companies

Generally, PSU Bonds are safer than Private Sector Issued Bonds. However, this is true only if all other factors are identical or similar - credit rating, yield, interest rate, maturity date etc.


Simply put, a AAA private sector bond is likely to be safer than a BBB rated PSU bond. But a AAA rated PSU bond can almost certainly be considered to be safer than a AAA rated private sector bond.



PSU bonds

Bond issued by a private sector company

Safety

High safety because of government support

Lower safety than PSU bond if credit rating is same

Guaranteed by a government

Occasionally

Never

Interest offered

Low to moderate

Moderate to high

Issuer example

Uttar Pradesh Power Corporation Limited

Adani Enterprises


Who should invest in PSU bonds?

PSU bonds are considered to be safer than bonds issued by private sector companies. This makes PSU bonds safest among the corporate bond universe. Low risk investors should consider PSU bonds for their better than FD return and tax treatment (if held for more than 3 years)


Risks of investing in PSU bonds

PSU bonds are amongst the safest in the bonds universe. Yet, they are exposed to the same risks that other bonds are exposed to. These are interest rate risk, liquidity risk and credit default risk. Among this, credit default risk is quite low for PSU bonds. Interest rate risk and liquidity risk can be eliminated by holding the PSU bond until maturity.


Advantages of investing in PSU bonds

The biggest advantage of investing in PSU bonds is the highest safety that they have. PSU bonds are safer than corporate bonds and almost as safe as government bonds. Investing in PSU bonds is a good idea if you are looking for principal protection and regular interest income.


How to identify the best PSU bonds?

The best PSU bonds for you may be different from the best PSU bonds for someone else. Here’s how you can identify the best NBFC bonds.


Credit rating: Are you a low risk investor or a moderate risk investor? A low risk investor should invest only in AAA rated PSU bonds. A moderate risk investor can consider a lower rated PSU bond.


Yield: You want the yield to be high. Because yield is inversely related to the credit rating, it is important to strike a balance between the two depending on your risk taking ability.


Maturity date: It is a good idea to align your investment time frame with the balance maturity of the PSU bond. This way you increase your likelihood of holding the bond until maturity. Holding the bond until maturity eliminates interest rate and liquidity risks.

Government guarantee: A government guaranteed PSU bond is extremely safe. Governments rarely default and this feature is shared by government guaranteed PSU bonds.


By filtering in the above manner, you can find a list of the best PSU bonds for your portfolio.

Still got questions? We’re here to help.

PSU bonds stands for Public Sector Undertaking bonds.
There are two ways to invest in PSU bonds. First is to pick and choose individual PSU bonds available in the market and invest in the best PSU bonds. Another option is to invest in a PSU bond mutual fund where you end up investing in a large basket of PSU bonds managed by a fund manager.
PSU bonds are different from government bonds. However, the government has implicit (sometimes explicit) guarantees on PSU bonds.
Yes, PSU (Public Sector Undertaking) bonds are considered a safe investment option because the government has administrative control over them. Government backing adds a layer of security, making PSU bonds a safe choice for investors.
Yes, most listed PSU bonds can be redeemed prematurely by selling them on the market. This means investors have the flexibility to redeem their investments before the bonds' maturity date, enabling them to adjust their investments based on their financial requirements and objectives.
PSU bonds are safer than bonds issued by private sector companies, making them a secure choice within the corporate bond universe. Investors with low-risk tolerance should consider PSU bonds due to their stability, better returns than Fixed Deposits (FD), and favorable tax treatment if held for more than 1 year.
PSU bonds are debt instruments issued by government sector companies for medium and long-term investments. These bonds operate like a loan agreement between the government (issuer) and citizens (lenders). The government, with a shareholding capacity of 51% or more in these companies, promises fixed, regular returns to investors with guarantees of repayment of the principal amount upon the bond's maturity.