List of top high yield bonds in India with good rating

High-yield bonds in India refer to corporate or state-issued bonds which provide a yield significantly greater than government bonds (7-8% for 10-year government bonds – G Secs). Currently in the market, “good ratings” are overall taken as investment-grade (BBB- or better from agencies CRISIL, ICRA, CARE) as they provide a higher return than risk of failure compared to junk bonds (i.e it should be less than BBB-). Yields above 9% are considered high yields in the Indian context as these are led by issuers in the NBFC, microfinance, and infrastructure industries.

West Bengal State Electricity Distribution Co. Ltd:

• Utility sector bond with reasonable security.
• Balances high returns and moderate risk.
• Backed by state electricity board.
  • Coupon rate: 9.34%
  • Yield to Maturity (YTM): 11.95%
  • Credit Rating: A (CRISIL)
  • Maturity Date: Not specified (medium term)

Rajasthan Rajya Vidyut Prasaran Nigam Ltd:

• State utility bond.
• Provides stability with moderate returns.
• Low default risk due to government support.
  • Coupon rate: 0% (zero-coupon)
  • Yield to Maturity (YTM): 11.00%
  • Credit Rating: A (CRISIL)
  • Maturity Date: Not specified (medium term)

LIC Housing Finance Limited:

• High-rated housing finance bond.
• Stable returns with minimal risk.
• Suitable for conservative investors.
  • Coupon rate: 9.80%
  • Yield to Maturity (YTM): ~9.8-10.5%
  • Credit Rating: AAA (CRISIL)
  • Maturity Date: March 2026

Jamnagar Utilities & Power Private Limited:

• Balances yield and security in utilities.
• Strong issuer fundamentals.
  • Coupon rate: 9.75%
  • Yield to Maturity (YTM): ~9.7-10.2%
  • Credit Rating: AAA (CRISIL)
  • Maturity Date: August 2026

HDB Financial Services Limited:

• Top-rated NBFC bond.
• Short-term, high-credibility option.
• Secured and ideal for low-risk high-yield seekers.
  • Coupon rate: 10.19%
  • Yield to Maturity (YTM): ~10-11% (based on market)
  • Credit Rating: AAA (CRISIL)
  • Maturity Date: March 2026 (extended from prior)

Satya Microcapital:

• Microfinance sector.
• Backed by growing business.
• Moderate risk but strong coupon rate for income-focused portfolios.
  • Coupon rate: Not specified (fixed high)
  • Yield to Maturity (YTM): ~11-12% (estimated)
  • Credit Rating: BBB+ (CRISIL)
  • Maturity Date: Not specified (short term)

Karnataka State Financial Corporation:

• State-backed financial bond.
• High stability for infrastructure financing.
• Suitable for moderate-risk investors seeking steady income.
  • Coupon rate: 9.24%
  • Yield to Maturity (YTM): 12.08%
  • Credit Rating: AA (CRISIL)
  • Maturity Date: Not specified (short-to-medium term)

Indel Money Limited:

• Secured senior structure.
• One of the highest yields among listed corporate bonds.
• NBFC-focused on lending.
• Ideal for yield-seeking with some credit risk.
  • Coupon rate: 0% (zero-coupon)
  • Yield to Maturity (YTM): 11.88%
  • Credit Rating: BBB (CRISIL)
  • Maturity Date: Not specified (short term)

Conclusion

Simply put, top high yield bonds in India for 2025, will yield 9-12% returns that are significantly better than on fixed deposits or government bonds. Such as bonds from reliable and established names like HDB Financial Services, LIC Housing Finance (very secure, AAA rated) and others like Indel Money or Karnataka State Financial Corporation (somewhat riskier, BBB/A rated). They are a good way to generate steady return income especially for shorter (1-4 year) periods. There is a degree of risk with such investments if interest rates change or a financial issue arises with the issuer. You can purchase these bonds directly online, starting from a minimum of ₹10,000, and you should verify the current yields and information from a financial advisor before investing.

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