Mumbai (Maharashtra) , India. September 11 Morning India: India Ratings and Research (Ind-Ra) said on Friday it has assigned Union Bank of India’s (UBI’s) tier two bonds an AA-plus rating and placed it on rating watch evolving (RWE).
The ratings were placed on RWE following the proposed amalgamation of Corporation Bank and Andhra Bank with UBI with the UBI being the anchor bank post amalgamation. Subsequently, post receiving all the necessary regulatory approvals, the amalgamation came into effect from April 1.
The key reasons for placing the ratings on RWE were scale of amalgamation, potential integration-related challenges that may be encountered in the process, and harmonisation of non-performing asset (NPA) recognition and provisioning.