Union Bank of India’s credit ratings reaffirmed, one withdrawn after redemption

ICRA Ratings Limited has reaffirmed the ratings for Union Bank of India's Basel III Tier II Bonds and Certificates of Deposit as of October 6, 2025. Five Basel III Tier II Bonds across different ISINs, totaling ₹9,500.00 crore, were reaffirmed with an [ICRA]AAA (Stable) rating. Additionally, Certificates of Deposit worth ₹15,000.00 crore were reaffirmed at [ICRA]A1+.

The rating for a ₹1,000.00 crore Basel III Tier II Bond was reaffirmed and simultaneously withdrawn, as the instrument has been fully redeemed with no outstanding amount. This aligns with ICRA’s policy on withdrawal and suspension. The bank's total rated amount, including outstanding and withdrawn instruments, is ₹21,200.00 crore, with the current rated amount being ₹20,200.00 crore.

Union Bank of India, as the fifth-largest public sector bank, reported a net profit of ₹4,116 crore in Q1 FY2026. Its capital cushions remain above regulatory levels, with a regulatory capital adequacy ratio of 18.30% (CET I: 15.30%; Tier I: 16.58%). The bank's gross NPA and net NPA stood at 3.52% and 0.62%, respectively, as of June 30, 2025.