Public Sector Undertaking Bond (PSU Bond)

PSU Bonds (Public Sector Undertaking Bonds) are debt securities issued by government-owned enterprises in India—such as NHAI, REC, PFC, NTPC, ONGC, and NABARD—to raise capital for infrastructure development, operations, and expansion. Backed by the Government of India's implicit or explicit support, PSU bonds carry very low credit risk and typically offer yields moderately higher than pure G-Secs. They are available in both taxable and tax-exempt (tax-free) variants and are listed on NSE and BSE for secondary market trading. PSU bonds are popular with institutional investors, insurance companies, pension funds, and retail investors seeking safe, government-linked fixed income exposure.