List of PSU Bonds in India 2026

Public Sector Undertaking (PSU) bonds are an important segment of India’s fixed-income market, offering a balance between safety and stable returns. These bonds are issued by government-owned entities and are widely considered relatively low-risk compared to many corporate bonds. This page provides an overview of PSU bonds, their features, risks, taxation, and how investors can access them in 2026.

What are PSU Bonds?

PSU bonds are debt instruments issued by Public Sector Undertakings (PSUs), which are companies where the government holds a majority stake. These bonds are used by PSUs to raise funds for business operations, infrastructure projects, or capital expenditure.

Since these entities are backed by the government, PSU bonds generally carry higher creditworthiness compared to many private issuers, though they are not entirely risk-free. They may be listed or unlisted and can offer fixed or floating interest rates.

Key Features & Benefits of PSU Bonds

• Government-backed Issuers: Issued by entities with majority government ownership, enhancing credibility
• Stable Returns: Offer fixed interest payouts at regular intervals
• Investment-Grade Ratings: Most PSU bonds carry high credit ratings (AAA/AA)
• Varied Tenures: Available across short, medium, and long-term durations
• Listed Options Available: Many PSU bonds are listed, allowing secondary market transactions
• Portfolio Stability: Can help reduce overall portfolio volatility when combined with other assets

Who Should Invest in PSU Bonds?

• Conservative Investors: Suitable for those prioritising capital preservation
• Income-Seeking Investors: Ideal for investors looking for predictable interest income
• Long-Term Investors: Suitable for those willing to stay invested for a fixed tenure
• Portfolio Diversifiers: Investors looking to balance equity exposure with fixed-income instruments
• Low to Moderate Risk Appetite Investors: Prefer relatively safer alternatives within bonds

List of PSU Bonds in India (2026)

Risks Involved in PSU Bonds

• Interest Rate Risk: Bond prices may fall when market interest rates rise
• Liquidity Risk: Some PSU bonds may have low trading volumes
• Credit Risk: Though relatively low, there is still a possibility of downgrade or delay
• Reinvestment Risk: Difficulty in reinvesting interest at similar rates in changing markets
• Inflation Risk: Fixed returns may not keep pace with inflation over time

Tax Applicability on PSU Bonds

• Interest Income: Taxed under “Income from Other Sources” as per applicable income tax slab
• Short-Term Capital Gains (STCG): Taxed as per slab (for listed bonds sold within 12 months)
• Long-Term Capital Gains (LTCG): Taxed at applicable rates after the holding period
• TDS Applicability: May apply if interest exceeds prescribed thresholds

How to Buy PSU Bonds?

Through Demat Account (Secondary Market)

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

Online Bond Platforms

• Compare available PSU bonds
• Review yields, tenure, and ratings
• Invest digitally

Primary Issuances (NCDs/Bonds): Invest during new bond offerings by PSU companies

Disclaimer

The PSU bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 23 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.