Union Bank of India

Notes issuance details

• Issuance: USD-denominated senior unsecured notes issued via Union Bank of India, DIFC Branch.
• Two tranches: 3-year due 28 August 2029 and 5-year due 28 August 2031.
• Issue size US$300 million; rating BBB/BBB- (S&P Global / Fitch).
• Coupon: 5.230% and 5.417% per annum, semi-annual from Feb 2027.
• Use of proceeds: fund DIFC Branch, develop and expand business, meet general corporate purposes.
• Listing: proposed on NSE IFSC Limited.
• Security: unsecured; ranking: senior unsecured.
• All terms apply to both tranches; date of allotment 28 August 2026.

Rating action

• S&P Global Ratings assigns BBB rating to Union Bank of India's proposed USD senior notes.
• Rating equals UBI's long-term issuer rating BBB/Stable/A-2.

Instruments Rated

• Proposed USD senior notes (unsecured) rated BBB.
• Notes are direct, unconditional, unsubordinated, unsecured, senior obligations of UBI.

Rating Agency

• S&P Global Ratings.

Outlook

• Outlook: Stable.
• Notes rating aligns with UBI's BBB/Stable/A-2.

Rationale

• Rationale not disclosed in this filing excerpt.

Material changes

• New rating for proposed notes; no prior rating for these notes.

Financials

• No specific financial highlights mentioned.

Rating action

• Proposed senior unsecured notes (DIFC branch) rated BBB(EXP).
• Final rating contingent on receipt of final documents.

Instruments rated

• Senior unsecured notes (DIFC branch) rated BBB(EXP).
• Long-term IDR BBB-/Stable; notes aligned with IDR.

Agency and final rating

• Agency: Fitch Ratings.

Rationale & drivers

• IDR equals notes; direct, unconditional, unsubordinated, unsecured.
• IDR and sovereign support equalised with Indian BBB-/Stable.
• 75% government ownership supports ratings and sovereign linkages.
• Notes rank pari passu with other unsubordinated obligations.
• Governance ESG concerns noted; governance and ownership concentration affect credit.
• ESG relevance: governance factors influence credit profile.

Outlook & sensitivities

• Outlook on IDR: Stable.
• An IDR change would translate to notes rating changes.

Business Overview

• Public-sector lender, India’s 5th largest, govt stake ~75% post-2020 amalgamation.
• Diversified across Corporate/Wholesale, Retail, Agriculture, MSME, Treasury; overseas presence in Dubai, Sydney, UK.
• Digital-first strategy: Union Ease app, eBiz, CBDC platform; 90%+ transactions digital.
• Strong funding profile: deposits ~$135.6bn; LCR 121.3%, NSFR 118.72%.

Operational Highlights

• Q1 FY27: credit growth 12.5% YoY; deposits up 3.5%.
• Expanding digital channels: Union Ease App, Union ebiz, CBDC platform.
• GNPA 2.65% (Jun-26); NNPA 0.47%; PCR ~95%.

Financial Performance

• PAT FY26: $2,053 mn; ROA 1.25%, ROE 15.86%.
• Operating revenue FY26: $6,224 mn; NII $3,943 mn; margins ~27–28%.
• Consolidated deposits: $138,361 mn; LCR 121.3%, NSFR 118.72%.
• Gross NPA FY26: 2.82%; NNPA 0.48%; PCR 95.03%.

Capital Structure & Liquidity

• CRAR 18.46% as of Jun-26; Tier I $13,955 mn; Total capital $14,874 mn.
• Liquidity: LCR 121.3%, NSFR 118.72%.

Strategic Priorities & Outlook

• Digital expansion through Union Ease, Ebiz, CBDC; green finance growth; climate risk integration; net-zero target FY2034-35.
• Maintain high PCR and low NPAs; strong provisioning.

Governance & Leadership

• Board comprises independent directors; governance policies and whistleblower framework.
• MD & CEO: Asheesh Pandey; experienced leadership team.

Event details

• Debt Investor Roadshow on 21 August 2026 at Central Office Mumbai.
• Meetings with individuals or groups; registration is virtual.
• Presentation copy for the meet: NA.
• No unpublished price-sensitive information will be shared during the meet/call.
• Schedule may change due to exigencies; changes will be communicated to stock exchanges.
• Information available on Union Bank of India website.

Regulatory penalty

• RBI imposed a ₹3,08,795 penalty on Union Bank of India.
• Order dated 17.08.2026.
• Reason: detection of counterfeit, mutilated currency notes and currency shortage.
• Impact: not significant to financials or operations.
• Mitigation: bank has taken preventive measures to avoid recurrences.

Meeting Details

• Date: Thursday, July 30, 2026.
• Time: Not disclosed.
• Location: Not disclosed.

Key Agenda Items

• Consider fund raising by debt issue of foreign currency funds through MTN programme.

Other Notes

• No other material notes disclosed.

Bond interest payment update

• Certificate confirming timely payment of annual interest on ISIN INE692A08193 under SEBI LODR Reg 57.
• Issue size Rs.1320 crores; interest amount due ₹114,70,80,000.
• Record date for interest: 10 July 2026.
• Due date: 25 July 2026; actual payment date: 27 July 2026.
• Total interest paid: ₹114,70,80,000; TDS deducted.
• Last interest payment date: 25 July 2025.
• Counterparty: M/s IDBI Trusteeship Services Ltd.

Audio recording availability

• Audio recording of post-earnings call for Q1 FY27 (June 30, 2026) is available at the link.