Union Bank of India Gets ICRA AAA Rating for ₹10,000 Crore Infrastructure Bonds

Mumbai, March 13, 2026: Union Bank of India has received a AAA (Stable) credit rating for its proposed infrastructure bonds worth ₹10,000 crore from ICRA Ratings Limited, according to a regulatory filing.

At the same time, ICRA reaffirmed the bank’s AAA (Stable) rating on its Basel III Tier-2 bonds and A1+ rating on its certificates of deposit.

The rating action was disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Rating Summary

According to the rating report by ICRA Ratings Limited:

Infrastructure Bonds: ₹10,000 crore – AAA (Stable) assigned
Basel III Tier-2 Bonds: ₹5,200 crore – AAA (Stable) reaffirmed
Certificates of Deposit: ₹35,000 crore – A1+ reaffirmed

With this update, the total rated amount increased to ₹50,200 crore.

Strong Market Position Supports Ratings

ICRA noted that the ratings reflect the strong position of Union Bank of India in India’s banking system. The bank is currently the fifth-largest public sector bank, with a market share of around 5.0% in net advances and 5.1% in deposits as of December 31, 2025.

The rating agency also highlighted the bank’s:

Healthy earnings profile
Moderating credit costs
Strong recoveries and upgrades of stressed assets
High provision coverage on legacy NPAs

Government Support and Strong Capital Position

The ratings continue to factor in the sovereign ownership of the bank, with the Government of India holding a 74.76% stake as of December 2025.

ICRA stated that the bank’s capital buffers remain comfortable, supported by internal accruals and an earlier ₹8,000 crore capital raise through Qualified Institutional Placement (QIP) in FY2024.

The bank’s capital ratios remain strong, with:

CET-1 Ratio: 13.94%
Tier-1 Ratio: 15.06%

Improving Asset Quality

The asset quality of Union Bank of India has improved significantly, with:

Gross NPA: 3.06% (Dec 2025)
Net NPA: 0.51%

This improvement was driven by strong recoveries, upgrades and write-offs.

Stable Outlook

ICRA Ratings Limited maintained a Stable outlook, expecting the bank to maintain steady credit metrics, supported by stable asset quality, healthy profitability and strong capitalisation.

The rating agency also noted that the bank’s strong deposit franchise and extensive branch network of over 8,600 branches support its liquidity profile.