Mumbai: India Ratings and Research Private Limited (Ind-Ra) has reaffirmed the highest credit ratings of Union Bank of India, reflecting the bank’s stable financial profile, strong systemic importance, and improving asset quality. The reaffirmation was disclosed by the public sector lender through a regulatory filing to the stock exchanges.
Highest Issuer Rating Maintained
Ind-Ra has reaffirmed Union Bank of India’s Issuer Rating at ‘IND AAA’ with a Stable outlook, which represents the highest level of creditworthiness on the agency’s rating scale. The rating indicates an exceptionally high degree of safety with regard to the timely servicing of financial obligations.
The stable outlook suggests that the bank is expected to maintain its credit strength over the medium term, supported by consistent performance and prudent financial management.
Ratings on Bonds and Deposits
The rating agency also reaffirmed ratings across several debt instruments issued by the bank:
- Tier-2 Bonds: Multiple Tier-2 bond series were reaffirmed at ‘IND AAA’ with a Stable outlook, reflecting strong loss-absorption capacity and support expectations.
- Additional Tier-1 (AT1) Bonds: Ratings on several AT1 bond series were reaffirmed at ‘IND AA+’ with a Stable outlook. These instruments carry higher risk compared to senior debt, which is reflected in the slightly lower rating.
- Certificates of Deposit: The short-term rating for certificates of deposit was affirmed at ‘IND A1+’, the highest rating for short-term instruments.
Ratings Withdrawn Following Bond Redemption
India Ratings also withdrew ratings (WD) for three bond instruments—two AT1 bonds and one Tier-2 bond—after Union Bank of India exercised its call options, leading to the redemption of these instruments. The withdrawal was carried out in accordance with Ind-Ra’s rating policies.
Rationale Behind the Reaffirmation
The reaffirmation of the ‘AAA/Stable’ issuer rating reflects Ind-Ra’s confidence in Union Bank of India’s standalone credit profile, underpinned by its role as a systemically important public sector bank, improving asset quality metrics, and stable capitalization levels. The ratings were marked as “Verified” as of January 16, 2026, following a comprehensive review by the rating agency.
About Union Bank of India
Union Bank of India is one of India’s leading public sector banks, offering a wide range of banking and financial services to retail, corporate, and institutional customers. With a strong nationwide presence and a focus on financial inclusion, digital banking, and prudent risk management, the bank continues to play a vital role in supporting India’s economic growth and financial stability.
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