CARE ratings reaffirms Union Bank of India's debt instruments

CARE Ratings Limited has reaffirmed the credit ratings for Union Bank of India's debt instruments as of September 16, 2025. The perpetual bonds are reaffirmed at CARE AA+; Stable, while tier II bonds are reaffirmed at CARE AAA; Stable. These ratings are attributed to the bank's comfortable capitalization levels, supported by internal accruals and equity capital raised in FY24, along with improvements in asset quality and earnings profile.

The ratings also factor in the bank's majority ownership and expected support from the Government of India, its market position as the fifth-largest public sector bank in total business, and its strong PAN-India branch network with a diversified advances profile. Despite these strengths, the bank’s resource profile, specifically the proportion of current account savings account (CASA) deposits, remains moderate compared to peers.

For FY25, Union Bank of India reported a total operating income of ₹127,539 crore and a profit after tax (PAT) of ₹17,987 crore. Total assets stood at ₹1,491,186 crore, with net non-performing assets (NNPA) at 0.63% and return on total assets (ROTA) at 1.25%. The bank's capital adequacy ratio (CAR) was 18.30% with Tier-I CAR at 16.58% as of June 30, 2025.