The PFC (Power Finance Corporation Limited) is a Central Public Sector Enterprise (CPSE) that is classified as a Maharatna, which is one of the highest designations for an Indian Public Sector Enterprise (PSE). The PFC is one of India's largest financial institutions focusing on providing financial solutions to various entities engaged in the power sector. The PFC operates as an NBFC (non-banking finance company), is regulated by the Reserve Bank of India (RBI), and is backed by the Government of India. The PFC plays a significant role in financing the power generation infrastructure throughout India.
Power Finance Corporation Limited NCD – Key Highlights
Here’s a snapshot of the latest public issue details:
| Feature |
Details |
| Issuer |
Power Finance Corporation Limited |
| Instrument Type |
Secured, rated, listed, redeemable NCDs |
| Credit Rating |
Crisil AAA/Stable, CARE AAA- Stable, ICRA AAA- Stable |
| Issue Opens |
16 January, 2026 |
| Issue Closes |
30 January, 2026* |
| Minimum Investment |
Rs.10,000 |
| Effective Yield |
Upto 7.30%* |
| Tenor |
5 years, 10 years, 10 years 1 Month, 15 years |
| Face Value |
Rs.1000 per NCD |
Benefits of Investing in PFC NCDs
Predictability and Stability in Returns
• Unlike Fixed Deposits in banks that have fluctuating rates of interest, at the time of issue, NCDs (Non-Convertible Debentures) are issued with an interest rate fixed for the entire duration of the investment period. An NCD will generate predictable and consistent income.
Higher Yield Than Many FD
• Typically, PFC NCDs offer a higher yield as compared to both FD and Postal Dept. products and particularly for those products with a longer duration. Therefore, NCDs are appealing to conservative fixed income investors.
Backing by the Government of India
• As a government of India linked entity, PFC has a high level of respect and credibility among the investing public and as a result is able to instill confidence in investors.
Diversification of Portfolio
• Investing in NCDs will add a component of diversification to your current invested equity portfolio and therefore reduce your overall exposure to financial risk.
Risks to Consider
All investments come with their own set of risks. Here are some tips to remember when thinking about investing in NCDs:
- Interest Rate Risk: The market value of your NCDs could decrease if interest rates go up after you purchased them.
- Liquidity Risk: NCDs may be available to buy and sell on an exchange, but due to low trading volumes, it may be difficult to get out early.
- Taxable Interest: All interest received by an investor on their investments in NCDs is subject to full taxation based on the investor’s income tax bracket.
Who Should Invest in PFC NCDs?
The PFC NCDs are best for:
- Conservative investors seeking to earn a steady, predictable income with fixed interest rates
- Senior citizens who would like to receive a steady income with a high rate of return and some degree of safety
- Investors seeking to diversify their portfolios
- Investors who have a low to medium tolerance for risk
How to Apply for Power Finance Corporation Limited NCD?
Registration with the Power Finance Corporation Limited NCD is also entirely online and hassle-free. Here are the steps involved:
1. Visit the Application Page
Go to the official RR Finance NCD page - Power Finance Corporation Limited
2. Enter Your Basic Details
Fill in your name, mobile number, and PAN number carefully.
3. Verify and Confirm
Select the NCD Re-check your details before proceeding to payment.
4. Pay Securely via UPI Modes
Complete your investment using UPI or other available online payment modes.
5. Allotment and Confirmation
Once processed, you will receive the NCD units directly in your Demat account.
Conclusion
If you want an investment with a fixed return and that has a moderate degree of safety, Power Finance Corporation NCD offers higher-than-average interest returns and gives you the choice of varying the length of your investment's term. With an excellent credit rating and backed by the government and an established institution, Power Finance Corporation NCD is likely to be a candidate for conservative investments in the year 2026.
Frequently Asked Questions (FAQs)
Power Finance Corporation Limited NCD 2026 is considered relatively safe due to its AAA credit ratings from CRISIL, CARE, and ICRA. Additionally, PFC is a Government of India–backed Maharatna CPSE, which enhances its credibility and lowers default risk compared to many private issuers.
PFC NCD 2026 offers an effective yield of up to 7.30% per annum, depending on the selected tenure. Since the interest rate is fixed at the time of issuance, investors receive predictable and stable returns throughout the investment period.
Yes, the interest earned from Power Finance Corporation Limited NCDs is fully taxable as per the investor’s income tax slab. The issuer does not provide tax-free interest, so investors should consider post-tax returns while planning their investments.
Yes, PFC NCDs are listed on recognized stock exchanges, which means investors can sell them before maturity. However, liquidity depends on market demand, and the selling price may vary based on interest rate movements and market conditions.
PFC NCD 2026 is suitable for conservative investors, senior citizens, and individuals looking for stable fixed income with moderate risk. It also works well for investors seeking portfolio diversification beyond equities and traditional bank fixed deposits.