An unsecured NCD has no charge on any specific asset of the issuer. If the issuer cannot pay, holders rank with its other unsecured creditors and are paid after secured lenders.
Because recovery in a default is likely to be lower, unsecured NCDs usually pay a higher coupon than secured NCDs from the same company. Many unsecured NCDs are also subordinated, which puts them further back in the queue.
Banks and NBFCs often issue unsecured, subordinated bonds because they count towards regulatory capital. For these bonds the issuer's overall strength, shown by its credit rating, matters more than any asset.
Unsecured NCD: issuers on Bond Interpretation
1,688 outstanding bonds of this kind from 345 issuers are on Bond Interpretation. Issuers with the most:
- Rural Electrification Corporation Limited 98 bonds
- Power Finance Corporation Limited 88 bonds
- National Bank for Agriculture and Rural Development 67 bonds
- Kerala Infrastructure Investment Fund Board 56 bonds
- NHPC Limited 44 bonds
- Muthoot Fincorp Limited 39 bonds
- Indian Railway Finance Corporation Limited 35 bonds
- State Bank Of India 35 bonds
- Bank Of Baroda 27 bonds
- Indian Renewable Energy Development Agency Limited 27 bonds
- HDFC Bank Limited 26 bonds
- Small Industries Development Bank of India 24 bonds
- Hinduja Leyland Finance Limited 23 bonds
- Housing & Urban Development Corporation Limited 22 bonds
- Punjab National Bank 22 bonds
Data as of 6 Nov 2026 (snapshot 20261106-2030). Methodology and sources
Related
Related terms: Secured NCD · Subordinated debt · Tier 2 bond · Credit rating
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.
