Union Bank of India ICRA Reaffirms Ratings Across Debt Instruments; Upsizes Certificate of Deposit Program Union Bank of India has received reaffirmed credit ratings from ICRA Limited for its key debt instruments, including Basel III Tier II Bonds, Infrastructure Bonds, and Certificates of Deposit (CDs). The bank’s ratings are bolstered by its status as the fifth-largest public sector bank in India and its continued sovereign ownership. Additionally, the bank has expanded its Certificate of Deposit program from ₹35,000 crore to ₹45,000 crore, signaling confidence in its liquidity management. The reaffirmation of ratings for these instruments occurred on March 26, 2026, and reflects ICRA’s confidence in the bank’s credit profile. The bank’s systemic importance and consistent operational performance underpin this decision. Infrastructure Bonds retained their [ICRA]AAA (Stable) rating with a rated amount of ₹10,000 crore, while Basel III Tier II Bonds also maintained their [ICRA]AAA (Stable) rating at ₹5,200 crore. Certificates of Deposit, previously rated [ICRA]A1+, saw their rated amount increased to ₹45,000 crore from ₹35,000 crore. The total rated amount across all instruments now stands at ₹60,200 crore. The bank’s strong credit profile is supported by several structural advantages. As a major public sector bank, Union Bank holds a 74.76% equity stake through the Government of India, ensuring potential capital support during times of need. Its capital adequacy remains robust, with a Core Equity Tier I (CET I) ratio of 13.94% as of December 31, 2025, exceeding regulatory requirements. The bank’s earnings are also healthy, driven by a high provision coverage ratio of 84% and a decline in Non-Performing Assets (NPAs). Gross NPAs fell to 3.06%, and Net NPAs dropped to 0.#union_bank_of_india #icra_limited #certificate_of_deposit #basel_iii_tier_ii_bonds #infrastructure_bonds
