Issuer Credit Research

Working Note: Union Bank Of India

Issuer: Union Bank Of India | Document: Working Note | Date: 2026-09-04

Knowledge Snapshot

Last updated: 2026-09-04

Indian scheduled commercial bank and majority Government of India-owned public-sector bank. Its current scale reflects the 1 April 2020 amalgamation of Andhra Bank and Corporation Bank into Union Bank.

Initial coverage supports a support-enhanced bank-credit view for senior obligations: the bank's own deposit franchise, reported earnings, improving reported asset quality and reported capital are primary; GoI ownership and historical capital support are additional positives.
Do not describe any Union Bank obligation as sovereign-guaranteed or sovereign-equivalent unless a specific legal guarantee is independently confirmed.

FY2026 reported global business was INR23.855 lakh crore; Q1 FY2027 reported total business was INR23.797 lakh crore, global deposits INR12.834 lakh crore and gross advances INR10.963 lakh crore. Treat Q1 figures as reported bank KPIs and do not annualise them.
Q1 FY2027 reported CASA was INR4.503 lakh crore and the CASA ratio was 35.09%. The source set does not establish full deposit stability, pricing or contractual maturity.

June 2026 Pillar 3 reported standalone CET1/Tier 1/total CRAR of 16.38%/17.32%/18.46% and leverage ratio of 8.16%.
Against the RBI published general base requirements including CCB, author-calculated reported standalone cushions were 838bp/782bp/696bp. This is not an issuer-specific compliance confirmation, stress-loss estimate or security-level analysis.
Senior, Tier 2 and AT1 obligations require separate structural treatment. Specific offering documents were not collected.

The Q1 FY2027 global CD ratio was 86.10%; use it only as a funding-growth monitoring metric.
June 2026 Pillar 3 reported a consolidated average LCR of 121.30% and principally Level 1 HQLA. The reported NSFR disclosure was 118.72%, but do not assert standalone scope for it. Do not combine these regulatory disclosures mechanically with standalone bank capital KPIs.

Reported FY2024-FY2026 GNPA/NNPA decline and positive FY2026/Q1 FY2027 earnings; June 2026 reported NPA reductions exceeded additions in the disclosed period.
Majority GoI ownership and ICRA-recorded historical capital support are relevant support considerations, not guarantees.

Through-cycle asset-quality durability, detailed borrower/group concentration, restructured exposures, full liability maturity and wholesale-funding composition were not established from the initial source set.

ICRA's 26 March 2026 rationale is a dated source for its specific infrastructure-bond, Tier II-bond and CD rating scopes. It is not a universal issuer rating or a substitute for current documentation.

Preserve scope labels: annual/Q1 figures are reported bank KPIs; Pillar 3 capital/NPA/provisions are standalone; LCR is consolidated; NSFR scope must remain unasserted unless expressly disclosed.
Detailed metrics and metadata are in data/union_bank_of_india_credit_metrics_20260904.json.

Union Bank financial-results page, official annual-report/NSE routes, quarterly Pillar 3 disclosure, RBI Basel III master circular, NSE integrated filing, and the dated ICRA rationale. See source_registry.md for URLs and update cautions.

Last updated: 2026-09-04

Compare new quarterly GNPA/NNPA, fresh additions, reductions, recoveries/upgrades, write-offs, PCR, credit cost and provisions with the June 2026 Pillar 3 baseline.
Track deposit growth, CASA/term-deposit mix, deposit pricing, global CD ratio, LCR, NSFR, HQLA and depositor concentration on consistently stated scope.
Track standalone CET1, Tier 1, total CRAR, leverage, RWA growth, retained earnings, capital issuance and any confirmed issuer-specific capital buffer.

Obtain borrower/group concentration, sectoral loss performance, vintage, restructured-exposure and collateral-performance disclosures before making a stronger through-cycle portfolio conclusion.
Obtain a complete contractual liability-maturity ladder and wholesale-funding composition before making a refinancing conclusion.
Obtain definitive offering documents before any security-specific senior, Tier 2 or AT1 recommendation; verify ranking, coupon, call, PONV, write-down/conversion and resolution provisions.

GoI ownership and historical capital support are support considerations only. Do not infer an explicit GoI guarantee or sovereign equivalence.
Do not rely on the CD ratio alone for liquidity. Do not combine standalone capital ratios with the consolidated LCR. Do not label NSFR standalone without an explicit source scope.
Headline NPA ratio improvement must be read with NPA flows, provisioning, credit cost, recoveries and denominator growth.

Label author-calculated regulatory-capital cushions as reported ratio minus RBI published general base requirement, and state that no issuer-specific D-SIB surcharge was verified.
Do not use an ICRA historical series as the primary source for annual bank KPIs when the official presentation is available.

No management strategy, investment plan, M&A, asset sale, shareholder-return or financial-policy action was collected in the initial source set that warrants a durable separate entry.

Refresh ICRA and other agency rating actions, keeping the scope of each rated programme clear.
Collect live market data and comparable-security terms only when a relative-value or security-specific investment view is required.

No current additional_discussion report existed at the time of this issuer_summary; no verification record is required.