Start earning 9-11% fixed returns with bonds that are carefully curated.
PSU Bonds are the Public Sector Undertaking Bonds issued by the Public Sector Undertakings. The Indian Government has at least 51% or more stake in these public Sector Undertakings (PSUs) These are the debt instruments the government sector companies generally issue for the medium to long term. The issuer(government) offers a fixed return to the holder (citizens) and repays the principal amount on its maturity. It is the most popular investment option for investors looking forward to safe investments and a high yield.
Name | Issue Size | Maturity | Coupon |
---|---|---|---|
NTPC Limited | 140.00Cr | 06 Nov 2023 | 11.25 % |
Bank Of Baroda | 1000.00Cr | 01 Nov 2023 | 9.80 % |
Canara Bank | 1500.00Cr | 03 Jan 2024 | 9.73 % |
Bank Of Baroda | 1000.00Cr | 17 Dec 2023 | 9.73 % |
Power Finance Corporation Ltd. | 2000.00Cr | 21 Feb 2024 | 9.70 % |
Canara Bank | 1000.00Cr | 27 Mar 2024 | 9.70 % |
NTPC Limited | 5.00Cr | 23 Dec 2031 | 9.67 % |
NTPC Limited | 5.00Cr | 23 Dec 2028 | 9.67 % |
NTPC Limited | 5.00Cr | 23 Dec 2029 | 9.67 % |
NTPC Limited | 5.00Cr | 23 Dec 2026 | 9.67 % |
Following is the list of some of the PSU bonds issued in India-
Public Sector Undertaking (PSU) Bonds are issued by Government entities or such public companies, whereby the government has the majority ownership in the company.
The formula to calculate the bond yield is to divide the coupon's annual payment by the bond's Face value.
Bond Yield = Annual Payment of the coupon/ Current market price X 100
Let's understand this by an example:
Step 1: Calculate the Annual Coupon rate
₹ 1000 X 8 %= ₹80
Step 2: Divide the annual coupon rate by the current market price
Bond Yield= 80/950 X 100
Bond Yield = 8.421