Union Bank of India received credit rating reaffirmations from CRISIL Ratings on December 11, 2025, with the rating agency maintaining its positive assessment of the public sector bank's financial strength and creditworthiness. The reaffirmation covers multiple debt instruments while reflecting the bank's improved operational performance and asset quality metrics.

Rating Actions and Instrument Details

CRISIL Ratings reaffirmed ratings on several key debt instruments while taking specific actions on others. The rating agency maintained its assessment across different categories of bonds with stable outlooks.

The withdrawal of rating on ₹1,000 crores of Tier-2 bonds was executed in line with CRISIL's withdrawal policy, following independent confirmation that these instruments were fully redeemed. All rating actions were verified on December 11, 2025.

Financial Performance and Asset Quality Improvement

The bank demonstrated significant improvement in asset quality metrics during the reporting period. Gross Non-Performing Assets (GNPA) showed a declining trend, reflecting enhanced recovery efforts and better credit management practices.

The improvement in GNPA stems primarily from the retail book and MSME segments, supporting overall asset quality metrics. Credit costs remained range-bound between 0.40%-0.50% of average total assets since fiscal 2024, indicating controlled provisioning requirements.

Capital Adequacy and Profitability Metrics

Union Bank maintained strong capital adequacy ratios well above regulatory requirements. The bank's capitalization benefited from equity infusion and strong internal accruals, providing adequate buffers for business growth.

The bank reported consolidated profit after tax of ₹8,419 crores for H1 FY26 compared to ₹8,322 crores in H1 FY25. For the full fiscal 2025, the profit was ₹17,922 crores against ₹13,708 crores in the previous fiscal, demonstrating sustained profitability improvement.

Operational Scale and Market Position

Union Bank maintains sizeable scale of operations with significant market presence in the domestic banking system. The bank holds a 4.00% share each in deposits and advances in the domestic banking system as of September 30, 2025.

The bank benefits from its extensive branch network and wide reach in rural and semi-urban areas, facilitating access to a stable resource base. Government ownership stood at 74.70% as of September 30, 2025.

Rating Rationale and Outlook

CRISIL's ratings factor in the expectation of strong support from the majority stakeholder, Government of India, along with the bank's adequate capital position and sizeable scale of operations. These strengths are partially offset by average, though gradually improving, asset quality and profitability metrics. The stable outlook reflects the rating agency's assessment that Union Bank should continue to benefit from strong government support and its large size and scale, while maintaining current asset quality levels going forward.

Union Bank of India , a prominent public sector bank, has issued a revised intimation regarding the exercise of call option for one of its bond series. The bank has updated the redemption details for its ₹1,000 crore bond series, demonstrating continued proactive management of its debt obligations.

Revised Bond Redemption Details

The bank has provided updated information for the bond redemption under regulatory compliance:

Key Changes and Payment Schedule

The bank has clarified that if any coupon or redemption payment date falls on a non-business day, payment of interest or principal will be made on the preceding business day. Accordingly, the payment for ISIN INE692A08128 will be processed on January 9, 2026, instead of January 11, 2026.

This revision updates the bank's earlier communication dated December 5, 2025, ensuring accurate information is provided to stakeholders and regulatory authorities.

Regulatory Compliance

The intimation has been issued pursuant to Regulation 30 and 60(2) of the SEBI (Listing Obligation and Disclosures Requirements) Regulations 2015. The call option exercise remains subject to regulatory approval, maintaining the bank's commitment to compliance with all applicable regulations.

Financial Context

This bond redemption aligns with Union Bank of India's ongoing debt management strategy. The bank continues to optimize its capital structure while maintaining its position as a significant player in the public sector banking space. The redemption represents the bank's proactive approach to managing its liabilities and maintaining financial flexibility.

Investors holding these bonds should note the record date of December 26, 2025, to ensure smooth processing of their redemption payments when the call option is exercised.