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Yield (% Return)

This is indicative % returns on your bond investments

Balance tenure

Time period after which your initial investment is paid back

Interest payment frequency

Time period between two interest payments on your bond

Credit rating

This shows the safety of the issuer. Higher the rating - safer the bond

PSU Bonds

PSU Bonds are issued by companies or Banks in which the Government – Central and/or State Government holds more than 51% of its paid up share capital. This essentially equates to not only being funded by the government but also having the administrative controls of the Government, thereby making PSU Bonds a relatively safe and low risk investment option for investors.

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Yield (% Return)

This is indicative % returns on your bond investments

Balance tenure

Time period after which your initial investment is paid back

Interest payment frequency

Time period between two interest payments on your bond

Credit rating

This shows the safety of the issuer. Higher the rating - safer the bond


National Bank For Agriculture And Rural Development

Coupon

7.5700%

Maturity

Mar 2026

Rating

Ind-Ra  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.5209%

Price

₹ 1,05,205.67

National Bank For Agriculture And Rural Development

Coupon

7.5800%

Maturity

Jul 2026

Rating

Ind-Ra  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.5000%

Price

₹ 1,02,492.35

Rural Electrification Corporation Limited

Coupon

7.5600%

Maturity

Jun 2026

Rating

CARE  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.4800%

Price

₹ 1,03,116.02

Power Finance Corporation Limited

Coupon

7.5000%

Maturity

Aug 2026

Rating

CARE  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

7.4619%

Price

₹ 1,023.84

Rec Limited

Coupon

7.6000%

Maturity

Feb 2026

Rating

CARE  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.4600%

Price

₹ 1,05,732.02

Hindustan Petroleum Corporation Limited

Coupon

7.7400%

Maturity

Mar 2028

Rating

ICRA  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.2200%

Price

₹ 1,07,080.17

National Highways Authority Of India

Coupon

7.0500%

Maturity

Sep 2041

Rating

CARE  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

7.1500%

Price

₹ 10,00,839.74

Rec Limited

Coupon

Zero Coupon

Maturity

Nov 2034

Rating

CARE  AAA

Type of Bond

Deep Discount/Zero Coupon Bond

Yield

6.2000%

Price

₹ 54,977.70

Power Finance Corporation Limited

Coupon

8.3000%

Maturity

Feb 2027

Rating

ICRA  AAA

Type of Bond

Tax-free Bond

Yield

5.4000%

Price

₹ 1,067.85

Bond Name Coupon Maturity Rating Interest Payment Yield Price Action

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

7.5700

Mar 2026

Ind-Ra AAA

Annual

7.5209%

₹ 1,05,205.67

Read More

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

7.5800

Jul 2026

Ind-Ra AAA

Annual

7.5000%

₹ 1,02,492.35

Read More

RURAL ELECTRIFICATION CORPORATION LIMITED

7.5600

Jun 2026

CARE AAA

Annual

7.4800%

₹ 1,03,116.02

Read More

POWER FINANCE CORPORATION LIMITED

7.5000

Aug 2026

CARE AAA

Annual

7.4619%

₹ 1,023.84

Read More

REC LIMITED

7.6000

Feb 2026

CARE AAA

Annual

7.4600%

₹ 1,05,732.02

Read More

HINDUSTAN PETROLEUM CORPORATION LIMITED

7.7400

Mar 2028

ICRA AAA

Annual

7.2200%

₹ 1,07,080.17

Read More

NATIONAL HIGHWAYS AUTHORITY OF INDIA

7.0500

Sep 2041

CARE AAA

Annual

7.1500%

₹ 10,00,839.74

Read More

REC LIMITED

Zero Coupon

Nov 2034

CARE AAA

Cumulative at Maturity

6.2000%

₹ 54,977.70

Read More

POWER FINANCE CORPORATION LIMITED

8.3000

Feb 2027

ICRA AAA

Annual

5.4000%

₹ 1,067.85

Read More

Note: Pursuant to the provisions of Section 193 of the Income Tax Act, 1961, as amended, effective from 1st April 2023, TDS will be deducted at the rate of 10% (or such other rates as may be notified from time to time) on any interest payable on any security issued by a company other than securities issued by the Central Government or a State Government. The listing of products above: (a) should not be considered an advertisement, endorsement, or recommendation to invest. Please use your own discretion before you transact. (b) is in compliance with regulatory framework as applicable for Online Bond Platform Provider (c) at their given price or yield are subject to availability and market cut-off timings.

Benefits and Reasons to Invest in PSU Bonds

Bonds in general extend a host of benefits to investors, however Public Sector Undertaking Bonds bring with it added advantage to investors.

Following are some of the benefits or reasons why investors should invest in PSU Bonds

Low Risk and considerable safety - In comparison to other corporate Bonds or other volatile investment options, PSU Bonds are considered to be a safer investment choice as majority stake in PSU companies is owned by Government. As a result, these bonds generally enjoy a higher credit rating of AAA with the least possibility of default.

High Liquidity – Since PSU Bonds have a higher demand with all category of investors looking to invest in these bonds, PSU Bonds therefore possess higher liquidity in the secondary market.

Better Returns than FD – Investors who invest in PSU Bonds enjoy higher interest on their investments in comparison to the returns earned on Fixed Deposits.

No penalty on Exit – Exiting your investments in bonds is easier in comparison to other investment options like Fixed Deposits, ppf etc. Incase of emergencies, investors can sell their PSU Bonds in the secondary market prior to maturity unlike Fixed Deposits where investors are required to hold their investments for the entire duration of the term or pay pre mature withdrawal charges

Who issues PSU Bonds?

PSU Bonds in India are issued by the following organizations that are owned and administered by the Government.
These usually include PSU Banks and other infrastructure and Power based companies that are bestowed with the responsibility of developing the nation such as :
•   State Bank of India
•   Bank of Baroda
•   Punjab National Bank
•   Union Bank of India
•   Canara Bank
•   Indian Overseas Bank
•   Indian Bank
•   Bank of India
•   Bank of Maharashtra
•   UCO Bank
•   Punjab and Sind Bank
•   Power Finance Corporation Limited (PFC Limited)
•   Rural Electrification Corporation Limited (REC Limited)
•   National Highways Authority of India (NHAI)
•   Housing and Urban Development Corporation Limited
•   India Infrastructure Finance Company Limited
•   Indian Railway Finance Corporation (IRFC)
•   National Bank for Agriculture and Rural Development (NABARD)
•   Indian Renewable Energy Development Agency Limited (IREDA)

PSU Bonds are relatively safe and low risk investment option for investors. Public Sector Undertaking Bonds fundamentally, can be categorized as medium to long term debt instrument options. Browse through IndiaBonds’ PSU Bonds List and toggle between the filters to pick the bond that best complements your investment objectives




What is the Procedure to buy PSU Bonds?

You can invest in PSU Bonds either through a Bond Public Issue when the Bond first enters the market or trade the existing bonds in the market through the secondary market via stock exchanges. Invest with ease in PSU Bonds through IndiaBonds


Signup

To purchase PSU Bonds online, The first step is to sign up on Indiabonds.com

1

Complete KYC

Complete your KYC online in less than 3 mins! There is no need to complete any paperwork or make any uploads.

2

Browse Curated Packs

Browse the curated packs and select PSU Bonds on the explore Page to view a variety of PSU Bonds for investments

3

SignUp Step
SignUp Step4

Pick your choice

Pick your choice of PSU Bonds from a curated list of PSU Bonds on our website.

4

Get detailed reports

Click Read more to get detailed issue reports like interest payment frequency and to calculate your investment as against the final payout.

5

Click on "Buy this Bond"

Click on “Buy this Bond” and submit your details. The Bond Managers will help you with the rest. That’s about it.

6

Connect with your Bond Managers

In case you are not sure how to invest in PSU Bonds, you can reach out to our Bond Managers who will help you buy PSU Bonds online

7

Click on "Buy this Bond"

Click on “Buy this Bond” and submit your details. The Bond Managers will help you with the rest. That’s about it.

6

Connect with your Bond Managers

In case you are not sure how to invest in PSU Bonds, you can reach out to our Bond Managers who will help you buy PSU Bonds online

7

Discover our Curated Packs

ADANI AIRPORT HOLDINGS LIMITED

Coupon

9.9500%

Maturity

Jun 2028

Rating

CRISIL  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.9024%

Price

₹ 1,04,525.21

REC LIMITED

Coupon

Zero Coupon

Maturity

Nov 2034

Rating

CARE  AAA

Type of Bond

Deep Discount/Zero Coupon Bond

Yield

6.2000%

Price

₹ 54,977.70

AVANSE FINANCIAL SERVICES LIMITED

Coupon

9.3500%

Maturity

Dec 2027

Rating

CARE  AA-

Type of Bond

Subordinate Debt Tier 2

Yield

10.2500%

Price

₹ 10,53,100.88

INDOSTAR CAPITAL FINANCE LIMITED

Coupon

10.5000%

Maturity

Sep 2026

Rating

CARE  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.3000%

Price

₹ 1,020.03

VARTHANA FINANCE PRIVATE LIMITED

Coupon

11.5000%

Maturity

Sep 2026

Rating

CRISIL  BBB

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.9943%

Price

₹ 1,01,858.90

SATYA MICROCAPITAL LIMITED

Coupon

13.8500%

Maturity

Jul 2029

Rating

CRISIL  BBB+

Type of Bond

Subordinate Debt

Yield

14.7548%

Price

₹ 1,00,493.29

KRAZYBEE SERVICES PRIVATE LIMITED

Coupon

11.0000%

Maturity

Jan 2026

Rating

CRISIL  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

12.3500%

Price

₹ 82,832.65

VARTHANA FINANCE PRIVATE LIMITED

Coupon

11.5000%

Maturity

Sep 2026

Rating

CRISIL  BBB

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.9943%

Price

₹ 1,01,858.90

NAMRA FINANCE LIMITED

Coupon

11.0000%

Maturity

May 2026

Rating

CARE  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.4618%

Price

₹ 1,00,030.14

ESAF SMALL FINANCE BANK LIMITED

Coupon

11.1000%

Maturity

Apr 2031

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

11.3915%

Price

₹ 1,02,007.12

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4900%

Maturity

Oct 2032

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.7800%

Price

₹ 1,01,477.60

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4900%

Maturity

Oct 2030

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.7800%

Price

₹ 1,01,432.40

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4900%

Maturity

Oct 2031

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.7800%

Price

₹ 1,01,460.30

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4900%

Maturity

Oct 2033

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.7796%

Price

₹ 1,01,498.00

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4900%

Maturity

Oct 2029

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.7516%

Price

₹ 1,01,498.00

PIRAMAL CAPITAL & HOUSING FINANCE LIMITED

Coupon

6.7500%

Maturity

Sep 2031

Rating

ICRA  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.5000%

Price

₹ 763.15

INDOSTAR CAPITAL FINANCE LIMITED

Coupon

10.5000%

Maturity

Sep 2026

Rating

CARE  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.3000%

Price

₹ 1,020.03

INDOSTAR CAPITAL FINANCE LIMITED

Coupon

10.7000%

Maturity

Sep 2027

Rating

CARE  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.2000%

Price

₹ 1,028.96

MUTHOOT FINCORP LIMITED

Coupon

9.2500%

Maturity

Sep 2027

Rating

CRISIL  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.6529%

Price

₹ 998.48

MUTHOOT FINCORP LIMITED

Coupon

9.6500%

Maturity

Sep 2027

Rating

CRISIL  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.6212%

Price

₹ 1,018.51

KRAZYBEE SERVICES PRIVATE LIMITED

Coupon

11.0000%

Maturity

Jan 2026

Rating

CRISIL  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

12.3500%

Price

₹ 82,832.65

VARTHANA FINANCE PRIVATE LIMITED

Coupon

11.5000%

Maturity

Sep 2026

Rating

CRISIL  BBB

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.9943%

Price

₹ 1,01,858.90

NAMRA FINANCE LIMITED

Coupon

11.0000%

Maturity

May 2026

Rating

CARE  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.4618%

Price

₹ 1,00,030.14

AYE FINANCE PRIVATE LIMITED

Coupon

10.6000%

Maturity

Jan 2026

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.1306%

Price

₹ 1,00,000.00

MUTHOOT MICROFIN LIMITED

Coupon

11.0000%

Maturity

Jun 2026

Rating

CRISIL  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.7500%

Price

₹ 60,337.01

ANDHRA PRADESH

Coupon

6.8700%

Maturity

Oct 2035

Rating

Sovereign

Type of Bond

State Development Loan

Yield

7.2000%

Price

₹ 98.18

UTTAR PRADESH

Coupon

7.6200%

Maturity

Dec 2034

Rating

Sovereign

Type of Bond

State Development Loan

Yield

7.2000%

Price

₹ 106.24

GOVERNMENT OF INDIA

Coupon

7.2500%

Maturity

Jun 2063

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

6.9800%

Price

₹ 106.87

GOVERNMENT OF INDIA

Coupon

7.3400%

Maturity

Apr 2064

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

6.9700%

Price

₹ 105.61

GOVERNMENT OF INDIA

Coupon

7.1800%

Maturity

Jul 2037

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

6.8600%

Price

₹ 105.08

SATYA MICROCAPITAL LIMITED

Coupon

13.8500%

Maturity

Jul 2029

Rating

CRISIL  BBB+

Type of Bond

Subordinate Debt

Yield

14.7548%

Price

₹ 1,00,493.29

KRAZYBEE SERVICES PRIVATE LIMITED

Coupon

11.0000%

Maturity

Jan 2026

Rating

CRISIL  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

12.3500%

Price

₹ 82,832.65

AYE FINANCE PRIVATE LIMITED

Coupon

10.6000%

Maturity

Jan 2026

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.1306%

Price

₹ 1,00,000.00

MUTHOOT MICROFIN LIMITED

Coupon

11.0000%

Maturity

Jun 2026

Rating

CRISIL  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.7500%

Price

₹ 60,337.01

MUTHOOT CAPITAL SERVICES LIMITED

Coupon

10.0000%

Maturity

May 2027

Rating

CRISIL  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.6900%

Price

₹ 99,812.38

INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED

Coupon

7.0200%

Maturity

Mar 2028

Rating

BWR  AAA

Type of Bond

Tax-free Bond

Yield

5.4400%

Price

₹ 1,093.37

POWER FINANCE CORPORATION LIMITED

Coupon

8.3000%

Maturity

Feb 2027

Rating

ICRA  AAA

Type of Bond

Tax-free Bond

Yield

5.4000%

Price

₹ 1,067.85

NATIONAL HIGHWAYS AUTHORITY OF INDIA

Coupon

7.3900%

Maturity

Jan 2026

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.4000%

Price

₹ 1,064.73

POWER FINANCE CORPORATION LIMITED

Coupon

8.4600%

Maturity

Aug 2028

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.4000%

Price

₹ 11,21,347.93

POWER FINANCE CORPORATION LIMITED

Coupon

8.5400%

Maturity

Nov 2028

Rating

CARE  AAA

Type of Bond

-

Yield

5.4000%

Price

₹ 1,111.63

ESAF SMALL FINANCE BANK LIMITED

Coupon

11.1000%

Maturity

Apr 2031

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

11.3915%

Price

₹ 1,02,007.12

ESAF SMALL FINANCE BANK LIMITED

Coupon

11.0000%

Maturity

Apr 2030

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

11.2836%

Price

₹ 1,01,989.04

UTKARSH SMALL FINANCE BANK LIMITED

Coupon

11.0000%

Maturity

Jun 2031

Rating

ICRA  A+

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

10.8800%

Price

₹ 1,03,659.85

YES BANK LIMITED

Coupon

9.0000%

Maturity

Mar 2026

Rating

CARE  A+

Type of Bond

Subordinate Debt Tier 2

Yield

9.3500%

Price

₹ 10,53,299.36

YES BANK LIMITED

Coupon

9.1500%

Maturity

Jun 2025

Rating

CARE  A+

Type of Bond

Subordinate Debt Tier 2

Yield

9.2000%

Price

₹ 10,34,657.68

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

Coupon

7.5700%

Maturity

Mar 2026

Rating

Ind-Ra  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.5209%

Price

₹ 1,05,205.67

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

Coupon

7.5800%

Maturity

Jul 2026

Rating

Ind-Ra  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.5000%

Price

₹ 1,02,492.35

RURAL ELECTRIFICATION CORPORATION LIMITED

Coupon

7.5600%

Maturity

Jun 2026

Rating

CARE  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.4800%

Price

₹ 1,03,116.02

POWER FINANCE CORPORATION LIMITED

Coupon

7.5000%

Maturity

Aug 2026

Rating

CARE  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

7.4619%

Price

₹ 1,023.84

REC LIMITED

Coupon

7.6000%

Maturity

Feb 2026

Rating

CARE  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.4600%

Price

₹ 1,05,732.02

REC LIMITED

Coupon

Zero Coupon

Maturity

Nov 2034

Rating

CARE  AAA

Type of Bond

Deep Discount/Zero Coupon Bond

Yield

6.2000%

Price

₹ 54,977.70

Note: Pursuant to the provisions of Section 193 of the Income Tax Act, 1961, as amended, effective from 1st April 2023, TDS will be deducted at the rate of 10% (or such other rates as may be notified from time to time) on any interest payable on any security issued by a company other than securities issued by the Central Government or a State Government. The listing of products above: (a) should not be considered an advertisement, endorsement, or recommendation to invest. Please use your own discretion before you transact. (b) is in compliance with regulatory framework as applicable for Online Bond Platform Provider (c) at their given price or yield are subject to availability and market cut-off timings.

Frequently Asked Questions

Who issues PSU Bonds?

PSU Bonds are issued by Public Sector Undertaking Companies of which the majority stake is held by the government thereby making it a government entity. The issuing entities are companies like power, infrastructure companies, banks etc. e.g.: Power Finance Corporation Limited (PFC Limited), Rural Electrification Corporation Limited (REC Limited), Bank of Baroda, Union Bank etc.

How to buy PSU Bonds online?

You can invest in PSU Bonds online directly from IndiaBonds in 3 simple steps. Sign up online, complete your KYC in just under 3 minutes which is paperless, hassle free and requires no uploads. Once done you can choose a bond of your choice and submit your request to invest. Once your payments are received the Bonds will be transferred to your Demat account.

Can you exit your PSU Bond Investments before maturity?

In case of emergencies, investors can easily exit their investments. While you cannot withdraw your investments directly with the issuer before the maturity period, investors can sell their PSU Bonds in the secondary market similar to equity