PSU Bonds are medium and long term obligations issued by public sector companies in which the government shareholding is generally greater than 51%.
It is suggested to always check the credit rating and nature of bonds. Make sure the credit rating, Investment nature, underlying security and maturity aligns with your Investment needs.
PSU Bank, power sector companies, railways etc issues PSU bonds as they constitutes 51% of the government shareholding with them.
These entities could be held by central or state government
Higher interest rate than FDs
Generally , these bonds are taxable as per individual income tax slab
Low default risk as they backed by the Government
The high-yielding PSU debt comes in the category of perpetual bonds held by PSU banks. These are certainly at high risk as they can be written down when the bank’s capital falls below specific thresholds. The bank does not have to be insolvent for the bonds to be written down. The bank can be bailed out, as what happened with Yes Bank.
No difficulty in Investing Investors do not need to have any market knowledge on interest movements if they want to Invest in PSU bonds and don’t have to be anxious about tracking. You can Invest freely in PSU bonds whenever you want.
State Bank of India
Bank of Baroda
National Highway Authority
National Housing Bank
Please enter the OTP sent to the mobile number with reference number
You will get a call back
within the next 2 minutes
Select the time slot as per