Union Bank of India

Meeting Details

• Date set for October 19, 2026; time and venue not disclosed.

Key Agenda Items

• Consider unaudited standalone and consolidated financial results for the quarter ended September 30, 2026.

Other Notes

• Trading window for insiders closed from October 1, 2026 to 48 hours after unaudited results declaration.

Union Bank of India – Closure of Trading Window from 01 October 2026 up to 48 hours after the declaration of Reviewed Unaudited Financial Results for the quarter ending 30 September 2026

Financial performance

• Standalone net profit ₹18,697 crore; up 3.95% YoY.
• Net interest income ₹36,659 crore.
• NIM 2.82%.

Key profitability metrics

• EPS ₹24.49.
• ROE 15.69%.

Asset quality & risk

• GNPA 2.82%.
• NNPA 0.48%.
• PCR 95.03%.

Deposits & liquidity

• Global deposits ₹13,06,891 crore; YoY 2.72%.

Dividend & capital allocation

• Dividend: ₹5 per equity share recommended.

Action & Ratings

• AT-1 Basel III bonds: rating withdrawn on full redemption; outstanding nil.
• Tier II Basel III bonds: rating reaffirmed at BWR AAA/Stable.
• Total outstanding: Tier II Rs 1000 Cr; AT I redeemed.
• Rating verification: Verifications completed on 17.09.2026.
• Overall action: AT I withdrawn; Tier II reaffirmed; outlook Stable.

Instruments & Ratings

• Tier II Bonds (Basel III) Rs 1000 Cr: BWR AAA/Stable; reaffirmed.
• Additional Tier I Bonds (Basel III) Rs 1705 Cr: Rating Withdrawn; outstanding nil.

Rationale & Key Drivers

• Strong GOI support; GOI holds ~74.76% as of Jun 2026.
• Established PSB with large scale; RAM-focused growth.
• CAR 18.10%, CET-I 15.69% as of Mar 31, 2026.
• GNPA 2.65% and NNPA 0.47% as of Jun 2026.
• Liquidity strong; LCR 121.3%, NSFR 118.7%.
• Deposits Rs 12,83,366 Cr; CASA 35.1%.
• RAM focus; digital banking and green financing investments.
• PONV trigger considered remote.

Outlook & Sensitivities

• Outlook: Stable for Tier II; AT I rating withdrawal aligned with redemption.
• Rating sensitivities: GoI stake decline; capital cushion erosion; asset quality deterioration.
• Material changes since last rating: AT I rating removed; Tier II reaffirmed; redemption completed.

Bond INE692A08029: timely payment and call redemption

• Interest and principal payment completed on 15-09-2026.
• Redemption type: full via call option; redemption date 15-09-2026.
• Quantity redeemed: 10,000 NCDs; lot-based basis.
• Actual redemption date: 15-09-2026; maturity date 15-09-2026.
• Amount redeemed: ₹1,095 crore (principal and coupon); outstanding amount: NIL.
• Last interest payment date: 15-09-2025.
• ISIN: INE692A08029.

Regulatory penalty

• RBI imposed a penalty of ₹1,33,850 on Union Bank of India.
• Penalty relates to deficiencies in mutilated currency notes, shortages, and counterfeit notes in cash remittance FY2021-22/2022-23.
• Date of order/receipt: 11 September 2026.
• Impact: Not significant; preventive measures taken.

Strike notices

• Notice of strike on 11 September 2026 by UFBU and AIBOA.
• Three-day strike 28–30 September 2026 by UFBU, AIBOA, AIBASM, BKSM.
• Indefinite strike from 26 October 2026 by UFBU, AIBASM, BKSM.

Operational impact

• Branch and administrative operations may be affected if strikes materialize.
• Bank will follow guidelines to ensure smooth functioning.
• Impact is currently unquantified.
• No board or governance changes disclosed.

Senior Management Changes

• Cessation by superannuation: Suresh Chandra Teli, Chief General Manager, retired on Aug 31, 2026.
• Appointment: Omprakash Shriniwas Karwa, CA, 20+ years in banking, elevated to Chief General Manager, Sept 1, 2026.

Notes issuance details

• Issuance of US Reg S senior unsecured notes due 2029 and 2031.
• Issued through DIFC Branch; notes offered outside the United States.
• Issue size US$300 million per series.
• 2029 coupon 5.230%; 2031 coupon 5.417% fixed.
• Maturities: 28 August 2029 and 28 August 2031.
• ISINs XS3485474533 and XS3485474707.
• Denominations US$200,000 with multiples of US$1,000.
• First coupon date 28 February 2027; semi-annual payments.
• Listing: NSE IFSC Limited; 98 allottees (2029) and 119 (2031).

Rating Action

• S&P Global Ratings assigns BBB rating to Union Bank of India (DIFC) notes.
• New rating; first rating for these notes.
• Outlook not disclosed in the filing.

Instruments Rated

• US$300m 5.230% notes due 2029 rated BBB.
• US$300m 5.417% notes due 2031 rated BBB.

Rating Agency & Issuer

• Agency: S&P Global Ratings.
• Issuer: Union Bank of India (DIFC Branch).

Outlook & Rationale

• Outlook: not disclosed.
• Rationale not included in excerpt.

Material Changes

• New rating assignment; no prior rating noted in excerpt.