Union Bank of India has informed the Exchange about - Revision in ratings by S and P Global Ratings.
UNIONBANK · price
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Awaiting price reaction for this filing.
S&P Global Ratings has upgraded Union Bank of India's long-term Issuer Credit Rating from BBB-/Positive/A-3 to BBB/Stable/A-2, with a stable outlook, effective August 14, 2025. The upgrade followed a similar one-notch upgrade of India's sovereign rating, reflecting the country's improved economic resilience and fiscal consolidation. S&P also revised upward UBI's standalone credit profile (SACP) from 'bb+' to 'bb-', citing strengthened capital levels and the government's very high likelihood of providing extraordinary support if needed. The bank's risk-adjusted capital (RAC) ratio is expected to stay at 8%-9% over the next 24 months, and the capital and earnings assessment was improved from 'moderate' to 'adequate'. S&P noted UBI has the capacity to sustain loan growth of 9%-12% with adequate earnings and a ~25% dividend payout ratio.
This is a positive signal for shareholders, indicating improved creditworthiness and stronger capital position for Union Bank of India. The upgrade is likely to enhance investor confidence, support the bank's borrowing costs, and may have a modestly positive effect on the stock sentiment in the short term.