POWER FINANCE CORPORATION LTD Coupon 6.97% | PSU Bond

Invest in ongoing NCD IPOs & earn up to 10.5% p.a.

Min. Investment ₹10,000

Invest in ongoing NCD IPOs & earn up to 10.5% p.a.

Min. Investment ₹10,000

Invest in ongoing NCD IPOs & earn up to 10.5% p.a.

Min. Investment ₹10,000

Invest in ongoing NCD IPOs & earn up to 10.5% p.a.

Min. Investment ₹10,000

Invest in ongoing NCD IPOs & earn up to 10.5% p.a.

Min. Investment ₹10,000

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Returns (YTM)

7.07%

Min. Investment

₹ 3,04,457.1

Remaining Tenure

10Y 4M 18Days

Payment Terms

Quarterly

Highlights

Credit Rating

CARE AAA/STABLE

Seniority

N/A

Security

Secured

Default History

Zero

Sovereign Backing: 56% owned by Government of India (GoI), ensuring strong financial and policy support.

Dominant Market Position: ₹10.7 lakh crore consolidated loan book (Dec 2024), leading power sector financier.

Healthy Asset Quality: Gross NPA improved to 2.7% (standalone) and 2.3% (consolidated) in Dec 2024.

Stable Profitability: Consolidated RoMA at 2.6% (9M FY25), with PAT of ₹22,157 crore.

Diversified Funding: Access to low-cost bonds (tax-free/SAEC) and international borrowings (95% forex hedged).

Company Financials

Revenue

PAT

Debt

Net Worth

Important disclaimer

Ratio Analysis

0.88

Net NPA

Good

Benchmark: Lower than 3%

25.41

Capital Adequacy ratio

Good

Benchmark: Minimum 14%

5.29

Debt to Equity ratio

Good

Benchmark: Maximum 12 times

1.51

Interest Coverage ratio

Risky

Benchmark: Minimum 2

Important disclaimer

About Issuer

POWER FINANCE CORPORATION LTD

Power Finance Corporation (PFC) was established on 16^th July, 1986. It is under the administrative control of the Ministry of Power. PFC provides financial assistance to power projects across India. The current Chairman and Managing Director is Mr. Rajeev Sharma.

The Government of India holds 65.92% of total shares in the corporation. It was conferred the title of Navratna CPSE in June, 2007 and was classified as an Infrastructure Finance Company by the RBI on 28^th July, 2010.

Recently it has forayed into financing other infrastructure projects such as:

Coal mine development
Fuel transportation
Oil and Gas pipelines

Its borrower profile includes State Electricity Boards, State sector power utilities, Central sector power utilities and Private sector companies.

It has been assigned a credit rating of AAA for long-term debt by various rating agencies.

Awards:

CBIP Award for Best Power Financing Company (2017)
Dalal Street Investment Journal PSU Award (2015)

Total Annual Revenue

46371.80 Cr (FY- 2024)

Year of Inception

1986

Industry

PSU Taxable

Head Office

NEW DELHI

Type of Issuer

PSU

Current MD/CEO

Smt. Parminder Chopra

Credit Rating / Outlook

AAA STABLE

CARE

Rating Rationale

Rating Date: 01-Apr-2025

AAA STABLE

ICRA

Rating Rationale

Rating Date: 26-Mar-2025

Credit rating by different rating agencies indicates the bond issuer’s ability to repay its debt obligations. A bond can be rated by one or more SEBI registered credit rating agencies e.g. CRISIL, CARE, ICRA, IND, BWR, ACUITE, INFOMERICS.
Bonds/NCDs with AAA credit rating are considered to have the highest degree of safety regarding timely servicing of debt obligations. Such Bonds/NCDs carry lowest credit risk.
Stable Outlook suggests that the rating is unlikely to change significantly in the near to medium term, indicating a stable credit profile of the issuer.

Other Important Details & Disclosures

Issuer Name

POWER FINANCE CORPORATION LTD

Security Name

6.97% POWER FINANCE CORPORATION LTD Secured Rated Listed NCD Maturity 22-Jan-2036

ISIN

Copy

INE134E07AR2

Face Value

₹ 1,000

Coupon Rate

6.97%

Coupon Type

FIXED

Payment Terms

Quarterly

Maturity Date

22-Jan-2036

Clean Price

₹ 100.55

Dirty Price

₹ 101.49

Current Yield

6.9319%

Yield to Maturity

7.0721%

Mode of Issue

Public Placement

Date of Issue

22-Jan-2021

Listed

Yes

Instrument Type

Taxable

Security

Secured

Seniority

N/A

Perpetual

Trustee Details

Beacon Trusteeship Ltd

4C, Siddhivinayak Chambers, Opp MIG Cricket Club, Kala Nagar, Bandra (E) , Mumbai, Maharashtra 400051

Registrar Details

KFIN TECHNOLOGIES PRIVATE LIMITED

Plot No. 17-24, Vittal rao Nagar,Madhapur,Hyderabad 500 081

Looking For More Information ?

Download Prospectus

Taxation

10%

TDS on Interest Income*

*Given TDS is indicative and fully claimable while filing ITR. The interest income from this bond will be taxable and will appear in the additional source of income in your ITR. Please consult your tax advisor for precise taxation details
As a listed bond, it is subject to capital gains tax based on the holding period. A holding period of less than 1 year qualifies as short-term, while more than 1 year qualifies as long-term.
You can submit your Form 15G/15H to the registrar and debenture trustee of the bond to avoid the TDS deduction. Download Form

Registrar details: KFIN TECHNOLOGIES PRIVATE LIMITED Plot No. 17-24, Vittal rao Nagar,Madhapur,Hyderabad 500 081

Units

Investment Amount

₹ 3,04,457.1

Total Returns

₹ 2,15,212.62

Total Receivable

₹ 5,19,669.72

Cashflow Timeline

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FAQs about POWER FINANCE CORPORATION LTD bonds

How to buy this POWER FINANCE CORPORATION LTD bond online?

You can invest in bonds online in under 5 minutes. To buy POWER FINANCE CORPORATION LTD bond online follow the steps below:

Login/signup at GoldenPi
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Pay online via payment gateway and receive bond units in your demat account

What is the yield of this POWER FINANCE CORPORATION LTD bond?

7.0721% is the current yield of this POWER FINANCE CORPORATION LTD bond. A bond’s current yield indicates the annual return based on its current market price and annual coupon payment.
In addition to current yield, the yield to maturity (YTM) of this POWER FINANCE CORPORATION LTD bond is 7.0721%, which indicates the total expected return if the bond is held till the maturity date. It is calculated using the XIRR method considering current price, face value, coupon payments, and time to maturity.

Is it safe to invest in bonds?

Investing in bonds is relatively a safer option but it depends on factors like:

The creditworthiness of the issuer indicated by the credit rating
The debt quality of the bond indicated by its seniority and security
Your investment goals and risk appetite

If you are an existing bond investor and want to sell your bond holdings before maturity, you can do so through the secondary market. This can be done either through exchanges such as BSE or NSE, or you can also request a quote from your relationship manager at GoldenPi.

How to redeem this POWER FINANCE CORPORATION LTD bond?

To redeem this POWER FINANCE CORPORATION LTD bond, bond, kindly first check its redemption value and redemption schedule. This can be found by downloading the cash flow from the “Calculate Your Returns” section of this page or by contacting the support team at GoldenPi.
Once you buy this bond, the units would be reflected in your demat account.
Upon maturity, the bond units held in your demat account will be automatically debited on the maturity date, and if the maturity date falls on a bank holiday, the redemption amount will be paid out on the next working day.
The funds will be credited to the bank account linked to your demat account. The process of redeeming this POWER FINANCE CORPORATION LTD bond is generally simple and straightforward. Contact our support team for more information.

Is this POWER FINANCE CORPORATION LTD bond tax-free?

No, this POWER FINANCE CORPORATION LTD bond is not tax free. The interest income received from these bonds will be treated as “income from other sources” in the ITR and the tax will be calculated as per your income tax slab.

To know more about taxation in detail please read this article: https://goldenpi.com/blogessentials/bond-market/taxation-on-gains-from-bond-investments/

Can I sell this POWER FINANCE CORPORATION LTD bond before the maturity date?

Yes, it is possible to sell this POWER FINANCE CORPORATION LTD bond before maturity. However, as the sale process happens in the secondary market, the price can be determined by a variety of factors, including interest rates, credit ratings, company performance, and market demand.

To know more about the sale process, contact us at https://goldenpi.com/contact-us

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Cashflow Timeline

Timeline

Total Receivable*

Net Receivable**

2025

₹ 5,270.46

₹ 4,743.42

22 Oct

Interest

₹ 5,270.46

Interest

₹ 4,743.42

2026

₹ 20,910

₹ 18,819.03

2027

₹ 20,910

₹ 18,819.03

2028

₹ 20,924.4

₹ 18,831.96

2029

₹ 20,910

₹ 18,819.03

2030

₹ 20,910

₹ 18,819.03

2031

₹ 20,910

₹ 18,819.03

2032

₹ 20,924.4

₹ 18,831.96

2033

₹ 20,910

₹ 18,819.03

2034

₹ 20,910

₹ 18,819.03

2035

₹ 20,910

₹ 18,819.03

2036

₹ 3,05,270.46

₹ 3,04,743.42

* The interest amount is paid as per total invested face value (₹ 1000) and annual coupon rate of 6.97%.

** The net interest receivable is after 10% TDS for Indian Residents. However for NRI 30% TDS is deducted. The deducted TDS can be claimed while filing ITR.

Highlights

Company Financials

Ratio Analysis

About Issuer

POWER FINANCE CORPORATION LTD

Credit Rating / Outlook

Other Important Details & Disclosures

Taxation

How to buy this POWER FINANCE CORPORATION LTD bond online?

What is the yield of this POWER FINANCE CORPORATION LTD bond?

Is it safe to invest in bonds?

How to redeem this POWER FINANCE CORPORATION LTD bond?

Is this POWER FINANCE CORPORATION LTD bond tax-free?

Can I sell this POWER FINANCE CORPORATION LTD bond before the maturity date?

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Filling complaints on SMARTODR & SCORES - Easy & Quick

Cashflow Timeline