CARE Ratings has reaffirmed the ratings for Union Bank of India’s debt instruments, including AAA ratings for Tier-II bonds and AA+ for perpetual bonds. The outlook remains stable. The reaffirmation reflects the bank’s capitalization levels, improved asset quality, and the continued support from the Government of India. The ratings also consider Union Bank’s market position as the fifth-largest public sector bank in India.
Ratings Reaffirmed
CARE Ratings has reaffirmed the ratings for Union Bank of India’s (UBI) debt instruments as of September 16, 2025. This decision reflects UBI’s comfortable capitalization levels, supported by internal accruals and equity capital raises in FY24.
Key Rating Drivers
The reaffirmation also considers improvements in asset quality and earnings profile. CARE Ratings continues to factor in the majority ownership and support from the Government of India (GOI). UBI’s position as the fifth-largest public sector bank (PSB) in total business (advances and deposits) also supports the ratings.
Rating Details
The CARE AAA rating with a Stable outlook was reaffirmed for Tier-II bonds, amounting to ₹2,200 crore. Perpetual bonds received a CARE AA+ rating, also with a Stable outlook, for an amount of ₹1,000 crore.
Outlook
The stable outlook reflects CARE Ratings’ expectation that UBI will maintain steady growth in advances and deposits, while maintaining healthy profitability and stable asset quality.
Source: BSE
