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
Power Finance
Corporation
National Highway Authority
of India
NTPC Limited
REC Limited
NABARD
National Housing Bank
Indian Railway
Finance Corporation
Please enter the OTP sent to the mobile number with reference number
Select the time slot as per
your preference
All rights are reserved by Launchpad Fintech Private Limited having its brand name Bondsindia, its associates and group Companies.