Moody's Investors Service has demoted the ratings of Union Bank of India by one notch. It considered that the bank's weaker financial metrics have pushed it into a lower standalone rating band.
As per the revision in rate banks financial strength rated as ‘D' from ‘D+'; global local currency deposit to ‘Baa3/Prime-3' from ‘Baa2/Prime-2'; and foreign currency senior MTN programme to ‘(P)Baa3' from ‘(P)Baa2'. The foreign currency long-term/short deposit ratings of ‘Baa3/Prime-3' are unaffected and carry stable outlooks.
The bank posted a contraction of 66% in its net profit of Rs 197.00 crore for the quarter ended December 31, 2011 as compared to Rs 579.57 crore for the quarter ended December 31, 2010. The bank’s total income has increased by 27.14% to Rs 5966.82 crore for the quarter ended December 31, 2011 as compared to Rs 4693.06 crore for the corresponding quarter of the previous fiscal.
