A perpetual bond has no maturity date: the issuer pays interest indefinitely and may redeem it only through a call option, usually after five or ten years. Banks issue them as Additional Tier 1 (AT1) capital.
AT1 bonds carry the most risk of any bank bond. The bank can skip interest payments in some situations, and the bonds can be written down if the bank's capital falls below a trigger or the RBI decides it is not viable. In March 2020, Yes Bank's AT1 bonds were written off as part of its rescue, a decision that has since been challenged in court.
The issuer is not obliged to exercise the call option; if it does not, the bond simply continues. SEBI has required mutual funds to value such bonds as if they mature 100 years from issue, which shows how long the money can stay invested.
Perpetual bond (AT1): issuers on Bond Interpretation
147 outstanding bonds of this kind from 37 issuers are on Bond Interpretation. Issuers with the most:
- State Bank Of India 17 bonds
- Muthoot Fincorp Limited 16 bonds
- Punjab National Bank 13 bonds
- Bank Of Baroda 10 bonds
- Cholamandalam Investment and Finance Company Limited 9 bonds
- Hdb Financial Services Limited 9 bonds
- Axis Finance Limited 8 bonds
- Aditya Birla Capital Limited 6 bonds
- Canara Bank 5 bonds
- Hinduja Leyland Finance Limited 5 bonds
- Credila Financial Services Limited 4 bonds
- Rural Electrification Corporation Limited 4 bonds
- Bank of maharashtra 3 bonds
- ECL Finance Limited 3 bonds
- ICICI Bank Limited 3 bonds
Data as of 6 Nov 2026 (snapshot 20261106-2030). Methodology and sources
Related
Related terms: Tier 2 bond · Call option and put option · Subordinated debt
Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.
This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
