Union Bank Of India Reports ₹127,539 Crore Revenue In FY25 As CARE Assigns AAA Rating To ₹10,000 Crore Bonds
· Free Press Journal
Mumbai: Union Bank of India’s improving earnings profile and asset quality helped secure strong credit ratings for its debt instruments, reinforcing investor confidence in the public sector lender’s capital-raising plans.
Revenue and Profit Rise
Union Bank reported total income of Rs 127,539 crore in FY25 compared with Rs 115,858 crore in FY24, reflecting steady expansion in its banking operations. Profit after tax climbed to Rs 17,987 crore in FY25 from Rs 13,648 crore in FY24, indicating stronger profitability despite moderate growth in advances and deposits during the period.
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Ratings on Key Bonds
CARE Ratings assigned a CARE AAA; Stable rating to the bank’s proposed infrastructure bonds worth Rs 10,000 crore. At the same time, the agency reaffirmed the CARE AA+; Stable rating on Rs 1,000 crore perpetual bonds and CARE AAA; Stable on Rs 2,200 crore Tier-II bonds. These ratings highlight the bank’s strong credit profile and stable outlook for long-term debt instruments.
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The rating agency said the bank’s comfortable capitalisation levels, supported by internal accruals and equity capital raised in FY24, strengthen its credit profile. Union Bank also benefits from majority ownership by the Government of India, which held 74.76 percent of the bank as of December 31, 2025. The bank operates 8,671 branches across India, along with two overseas branches and around 8,300 ATMs.
Margins Face Near-Term Pressure
Despite improvements in earnings and asset quality, CARE Ratings expects some pressure on net interest margins in the near term. The agency noted that faster repricing of loans compared with deposits could moderate profitability, although asset quality is expected to remain stable. Union Bank of India remains the fifth-largest public sector bank in the country by total business, supported by a diversified loan book and a broad national franchise that continues to underpin its credit strength.
Disclaimer: This article is based solely on information disclosed in the company filing and CARE Ratings report dated March 13, 2026. It is intended for informational purposes only and does not constitute financial or investment advice.