Credit Rating

संदभग Ref.:नि.से.नव.ISD/204/2026-27 नदिांक Date : 18.09.2026 बीएसई निस्टंग सेंटर BSE Listing Centre National Stock Exchange of India Ltd. स्िप कोि Scrip Code - 532 477 निप्स NEAPS स्िप कोि Scrip Symbol-UNIONBANK-EQ Subject: Reporting under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In terms of Regulation 30 read with point 3 of Para A of Part A of Schedule Ill of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and SEBI circular no. CIR/CFD/CMD/4/2015 dated September 9, 2015, we wish to inform that Brickwork Ratings India Pvt. Ltd. on September 17, 2026 has withdrawn/reaffirmed the ratings of the below mentioned Instruments of the Bank as under: Outlook Rating Action Verification Name of Credit (Stable/Posi (New/Upgrad Date of status of S. the Credit Specify other Date of ISIN Rating tive/Negati e/Downgrade Credit Credit No. Rating rating action Verification assigned ve/No /Reaffirm/Ot Rating Rating Agency outlook) her) Agencies INE692A08110* 1 - - Other withdrawn NA Verified 17.09.2026 (AT-1 Bond) Brickwork INE692A08128* 2 Ratings - - Other withdrawn NA Verified 17.09.2026 (AT-1 Bond) India Pvt. 3 INE692A08136* Ltd. - - Other withdrawn NA Verified 17.09.2026 (AT-1 Bond) INE112A08051 4 AAA Stable Reaffirmed NA 17.09.2026 Verified 17.09.2026 (Tier-2 Bond) *Rating withdrawn due to redemption. The rating rationale is enclosed herewith. Thanking you. भवदीय Yours faithfully, (Ashish Mishra) Company Secretary Cc to: 1. IDBI Trusteeship Services Ltd. 2. Catalyst Trusteeship Limited Union Bank of India, Investor Services Division, Union Bank Bhavan,239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400021. : + 91 22 2289 6636/2289 6643, investorservices@unionbankofindia.bank.in , website: www.unionbankofindia.bank.in RATING RATIONALE 17 Sep 2026 Union Bank of India SUMMARY OF RATING ACTION Amount Rs. Crs. Rating Action & Outlook Instruments Tenure Regulator Previous Present Previous Present (18 Sep 2025) (16 Sep 2026) BWR AAA/ BWR AAA/ Tier II Bonds 1000.00 1000.00 Stable Stable SEBI (under Basel III) (Reaffirmed) (Reaffirmed) Long Term Additional Tier I BWR AA+/ Bonds 1705.00 0.00 Stable Withdrawn SEBI (under Basel III) (Reaffirmed) Total 2705.00 1000.00 Rupees One Thousand Crores Only Note: 1. Please refer to the BWR website www.brickworkratings.com/ for the definition of the ratings 2. Refer to Annexures I, II and III for details of rated bank loan facilities, debt instruments and the List of Entities consolidated RATING ACTION / OUTLOOK: REAFFIRMATION/ STABLE/WITHDRAWAL Brickwork Ratings (BWR) reaffirms the long-term rating of BWR AAA/Stable for the Tier II Bonds (under Basel III) of Rs 1000 Crores and withdraws the long-term rating of BWR AA+/Stable for the Additional Tier 1 Bonds (under Basel III) on full redemption of Union Bank of India (Bank or UBI) as tabulated above. The rating reaffirmation of the Tier II bonds (under Basel III) of the Bank factors in the strong operational credit profile of the bank supported by comfortable capital buffer levels, improving asset quality indicators, and sustained profitability. Union Bank of India is the fifth-largest Public Sector Bank in total business (advances and deposits) in market position in the Indian banking sector. The rating also considers UBI’s strong and established franchise through its PAN-India branch network and diversified advances profile. The bank’s strategic shift away from high-cost bulk deposits and unremunerative corporate exposures toward granular Retail, Agriculture, and MSME (RAM) advances has strengthened its underlying balance sheet quality. While Gross Non-Performing Assets (GNPA) appear higher than select top-tier peers, key risk mitigation metrics—such as a Provision Coverage Ratio (PCR) exceeding 95% and a Net NPA (NNPA) below 0.50%—place UBI on par with leading public sector banks. Withdrawal of Rating for Adiditonal Tier I bonds (under Basel III) of Rs 1705 Crores, presnet outstanding nil, complies with BWR Rating Withdrawal policy. BWR has received the confirmation from IDBI Trustee, the debenture tustee on 16th Dec 2025, 12 Jan 2026 and 30th January 2026 of full redemption of INE692A08110 (redeemed on 15 Dec 2025), INE692A08128 (redeemed on 9th Jan 2026 and INE692A08136 (redeemed on 29th Jan 2026), respectively, through exercise of call option by the Bank. The Bank/ issuer has made appropriate disclosure to the stock exchange in this regards, confirming due redemption these bonds. BWR believes Union Bank of India’s risk profile will be maintained over the medium term. The Stable outlook indicates a low likelihood of a rating change over the medium term KEY COVENANTS OF THE INSTRUMENT/FACILITY RATED: The following are the unsecured rated listed subordinated non-convertible Basel III compliant bonds: ● INE112A08051: The coupon rate of Tier II bonds (under Basel III) of Rs. 1000 Crores was 8.93%. These were raised by Corporation Bank and, upon amalgamation, were transferred to Union Bank of India. The bonds were raised in November 2019 for a period of 10 years with a fixed coupon of 8.93% payable annually on 08 Nov till its maturity. Note on Tier-II Instruments (under Basel III): The distinguishing feature of Tier-II capital instruments under Basel III is the existence of the point of non-viability (PONV) trigger, occurrence of which may result in loss of principal to the investors, and hence, default on the instrument by the issuer. According to the Basel III guidelines, the PONV trigger will be determined by the RBI. BWR believes that the PONV trigger is a remote possibility in the Indian context, given the robust regulatory and supervisory framework and the systemic importance of the banking sector. The inherent risk associated with the PONV feature is adequately factored into the rating on the instrument. ANALYTICAL APPROACH & APPLICABLE RATING CRITERIA ANALYTICAL APPROACH COMMENTS ● General Criteria ● Approach to Financial Ratios ● Banks & Financial Institutions Applicable Rating Criteria ● Capital Instruments Issued by Banks and Financial Institutions ● Rating of entities based on Government Support ● Rating Withdrawal Policy Parent/Group/Government Support Government Support Standalone Financials of the Bank Analytical Approach For arriving at its ratings, BWR has considered the standalone financial (Consolidation/Standalone) profile of Union Bank of India and has applied its rating methodology as detailed in the Rating Criteria KEY RATING DRIVERS WITH DETAILED DESCRIPTION Credit Strengths:- ● Strong support from GOI: Government of India continues to be the majority shareholder of the bank with 74.76% as of 30 June 2026. The GOI’s support to Public Sector Banks (PSBs) has always been of prime importance given their criticality to the economy and to maintain the stability of the banking sector. Being the key promoter-shareholder, the GOI has continued to support PSBs even in times of distress, through various recapitalisation plans announced over the years. The GOI’s support to the bank in the form of capital infusion is expected to continue, given that the bank is one of the major PSBs in the country. ● Established track record and significant scale of operations: Incorporated in 1919, Union Bank is the fifth largest PSB in Business mix. As of 30 June 2026, the total business of the bank stood at Rs. 23,79,697 Crores, which increased by 8 % YoY. This growth was driven by significant expansions in the retail, agricultural, and MSME (RAM) segments. Total Advances as on 30 June 2026 were Rs 10,96,331 Crores; of these, ~55% exposure was in the RAM segment, followed by 40% exposure to large corporates. During FY 2025-26, the Bank has undertaken a policy to exit price-competitive, low-yield Inter-Bank Participation Certificates (IBPC/IDPC), shedding ~₹33,000–34,000 Crores to focus on higher-margin credit segments. The number of branches and ATMs has decreased, with strategic movement to establish Digital [Showing first 8,000 characters — download PDF for full document]