Union Bank of India: Ratings reaffirmed; rated amount enhanced for certificates of deposit programme
Union Bank of India’s ratings have been reaffirmed by ICRA Ratings Limited, with an enhanced rated amount for its certificates of deposit programme. The credit rating agency also reaffirmed the ratings for the bank's infrastructure bonds and Basel III Tier II bonds.On March 26, 2026, ICRA Ratings Limited assigned/reaffirmed the ratings for the following instruments:
| Sr. No. | ISIN | Name of the Credit Rating Agency | Credit Rating assigned | Outlook (Stable/Positive/Negative/No outlook) | Rating Action (New/Upgrade/Downgrade/Reaffirm/Other | Specify other rating action | Date of Credit Rating | Verification status of Credit Rating Agencies | Date of Verification |
|---|---|---|---|---|---|---|---|---|---|
| 1 | INE692A08102 (Tier-2 Bond) | ICRA Ratings Limited | AAA | Stable | Reaffirmed | NA | 26.03.2026 | Verified | 26.03.2026 |
| 2 | INE692A08144 (Tier-2 Bond) | ICRA Ratings Limited | AAA | Stable | Reaffirmed | NA | 26.03.2026 | Verified | 26.03.2026 |
| 3 | INE692A08151 (Tier-2 Bond) | ICRA Ratings Limited | AAA | Stable | Reaffirmed | NA | 26.03.2026 | Verified | 26.03.2026 |
| 4 | INE692A08219 (Tier-2 Bond) | ICRA Ratings Limited | AAA | Stable | Reaffirmed | NA | 26.03.2026 | Verified | 26.03.2026 |
| 5 | INE692A08201 (Tier-2 Bond) | ICRA Ratings Limited | AAA | Stable | Reaffirmed | NA | 26.03.2026 | Verified | 26.03.2026 |
| 6 | Infrastructure Bonds | ICRA Ratings Limited | AAA | Stable | Reaffirmed | NA | 26.03.2026 | Verified | 26.03.2026 |
| 7 | Certificate of Deposits | ICRA Ratings Limited | A1+ | - | Reaffirmed | NA | 26.03.2026 | Verified | 26.03.2026 |
ICRA has enhanced the rated amount for certificates of deposit from Rs. 35,000 crore to Rs. 45,000 crore.
Summary of rating action
| Instrument* | Previous rated amount (Rs. crore) | Current rated amount (Rs. crore) | Rating action |
|---|---|---|---|
| Infrastructure bonds | 10000 | 10000 | [ICRA]AAA (Stable); reaffirmed |
| Basel III Tier II bonds | 5200 | 5200 | [ICRA]AAA (Stable); reaffirmed |
| Certificates of deposit | 35000 | 45000 | [ICRA]A1+; reaffirmed/assigned enhanced amount |
| Total | 50200 | 60200 |
Union Bank of India’s ratings are supported by its strong position in the Indian financial system, being the fifth largest public sector bank with a 5.0% market share in net advances and 5.1% in total deposits as of December 31, 2025. The ratings also consider the bank’s healthy earnings profile and well-developed deposit franchise.
The bank's capital cushions are above regulatory levels, supported by internal accruals and a qualified institutional placement (QIP) of Rs. 8,000 crore in FY2024. The ratings factor in the bank's sovereign ownership and support from the Government of India.
The ratings also acknowledge the vulnerable book, which has moderated from previous levels, and the bank's ability to control fresh slippages. Union Bank is expected to remain well-placed to absorb potential shocks and is expected to remain sufficiently capitalized.
The Stable outlook reflects ICRA's expectation that the bank will maintain a steady credit profile.
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