List of AT1 Bonds in India 2026

AT1 bonds are among the more complex fixed-income instruments available to investors, designed primarily to support banks’ capital requirements rather than serve as traditional investment products. Unlike regular bonds, they come with unique features such as no fixed maturity, discretionary interest payments, and the potential for loss absorption during financial stress. While they may offer higher yields, understanding their structure, risks, and suitability is essential before considering them as part of an investment portfolio.

What are AT1 Bonds?

AT1 bonds, also known as perpetual bonds, are unsecured debt instruments issued by banks as part of their Tier 1 capital. They do not have a fixed maturity date, making them different from traditional bonds.

These bonds typically offer higher interest rates compared to regular bonds to compensate for their unique structure and higher risk. Banks may also have the option to call (redeem) these bonds after a specified period, subject to regulatory approval.

Key Features & Benefits of AT1 Bonds

Perpetual Nature: AT1 bonds do not have a fixed maturity date. They continue indefinitely unless the issuer exercises a call option.

Higher Interest Rates: They generally offer higher coupon rates compared to other bonds due to the additional risk involved.

Call Option Feature: Issuers may redeem the bonds after a predefined period (commonly 5 or 10 years), but this is not guaranteed.

Regular Interest Payouts: Investors may receive periodic interest payouts, subject to the bank’s financial condition and regulatory guidelines.

Tradability: Some AT1 bonds are listed on stock exchanges, allowing investors to buy or sell them in the secondary market (subject to liquidity).

Who Should Invest in AT1 Bonds?

High-Risk Appetite Investors: Suitable for investors who understand complex debt instruments and can take higher credit and structural risk.

Yield-Focused Investors: Those looking for relatively higher returns compared to traditional fixed-income options.

Experienced Investors: Investors with prior knowledge of bond markets and banking sector risks.

Portfolio Diversifiers: Those seeking exposure to banking instruments as part of a diversified portfolio.

List of AT1 bonds in India 

Risks Involved in AT1 Bonds

Credit Risk: If the issuing bank faces financial stress, it may impact interest payments or principal repayment.

Perpetual Tenure Risk: Since there is no maturity date, investors may have to rely on secondary market liquidity or issuer call options for exit.

Write-Down Risk: In extreme scenarios, such as financial distress, these bonds can be partially or fully written down.

Liquidity Risk: Trading volumes for AT1 bonds may be low, making it difficult to exit at desired prices.

Regulatory Risk: Changes in regulations can impact how these bonds function or are treated.

Tax Applicability on AT1 Bonds

Tax on Interest Income: Interest earned on AT1 bonds is taxed under “Income from Other Sources” as per the investor’s applicable income tax slab.

Short-Term Capital Gains (STCG): If sold within 12 months (for listed bonds), gains are taxed as per the income tax slab.

Long-Term Capital Gains (LTCG): If held for more than 12 months, gains are taxed at 10% without indexation, as per prevailing tax rules.

TDS Applicability: TDS may be applicable on interest income based on issuer policies and applicable thresholds.

How to Buy AT1 Bonds?

Through Demat Account (Secondary Market)

• Log in to your trading account
• Search using ISIN or bond name
• Review yield, price, and rating
• Place a buy order

Online Bond Platforms

Investors can explore available AT1 bonds, compare yields, and invest digitally through regulated platforms.

Primary Issuances

Banks may issue AT1 bonds through private placements or institutional offerings.

Disclaimer

The AT1 bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 19 March 2026. Prices, yields, trade values, and other related details are subject to change in real time depending on market movements and liquidity. This content is intended solely for informational and educational purposes and should not be considered as investment advice, recommendation, or an offer to buy or sell any securities.