CARE Ratings reaffirms ratings for Union Bank of India's debt instruments
Reaffirmation of credit ratings typically has a moderate impact as it reinforces investor confidence and stability for the bank.
The credit rating for the bank's bonds has been reaffirmed, indicating a stable outlook and positive sentiment from the rating agency.
* CARE Ratings has reaffirmed the ratings for Union Bank of India's debt instruments on September 16, 2025. * The rating agency reaffirmed 'CARE AA+; Stable' rating for perpetual bonds amounting to ₹1,000 crore. * 'CARE AAA; Stable' rating has been reaffirmed for Tier II Bonds amounting to ₹2,200 crore. * The ratings factor in the bank’s comfortable capitalization levels, improvement in asset quality and earnings profile, continued support from the Government of India (GOI), and its market position as the fifth-largest public sector bank. * CARE Ratings expects Union Bank of India's asset quality parameters to remain stable in the near term, but its net interest margin (NIM) is expected to witness some pressure due to faster transmission of repo rate cuts. * Factors that could lead to a downgrade include dilution in GOI support and ownership below 51%, deterioration in asset quality with net non-performing assets (NNPA) ratio remaining above 3% on a sustained basis, and a decline in profitability leading to a weakening in capitalisation levels. * The bank had gross advances of ₹9,74,489 crore as on June 30, 2025. * The bank reported a capital adequacy ratio (CAR) of 18.30% with tier I CAR of 16.58% and common equity tier I (CET -I) ratio of 15.30% as on June 30, 2025. * The bank reported increase in profit after tax (PAT) from ₹13,648 crore in FY24 to ₹17,987 crore in FY25 and thus return on total assets (ROTA) increased from 1.03% in FY24 to 1.25% in FY25.
What to do with a filing like this
Union Bank of India filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Union Bank of India. Read the original for the full detail.