Disclosure under Regulation 30 (LODR)_Credit Rating
UNIONBANK · price
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CARE Ratings (CareEdge) has reaffirmed Union Bank of India's ratings on March 13, 2026: AA+ (Stable) on ₹1,000 crore perpetual bonds and AAA (Stable) on ₹2,200 crore Tier-II bonds. A fresh AAA (Stable) rating has been assigned to ₹10,000 crore of proposed infrastructure bonds, giving UBI headroom for new long-term fundraising. The ratings factor in the bank's comfortable capitalisation (CAR 16.49%, CET-1 13.94%), improving asset quality (GNPA down to 3.06% from 4.76% a year earlier), strong government support (GOI holds 74.76%), and steady profitability (PAT rose to ₹17,987 crore in FY25). CARE flagged near-term pressure on net interest margins (FY25 NIM 2.59%, 9MFY26 2.44%) due to faster repricing of advances versus deposits, and noted the bank's CASA share remains lower than larger public sector peers.
Stable ratings at AAA/AA+ signal strong creditworthiness and should let UBI raise funds at competitive costs. The new ₹10,000 crore infrastructure bond facility boosts long-term funding capacity for growth, which is mildly positive for shareholders, though softer NIMs may cap near-term earnings momentum.