CRISIL downgrades Union Bank, Corp Bank's tier I, II bonds

Union Bank faces stress in corporate loan portfolio; Corporation Bank's asset quality stress to stay

Ratings agency CRISIL has downgraded the rating on Union Bank of India and Corporation Bank’s tier I and II bonds. The asset quality and income profile and profitability of public sector lenders are expected to remain under pressure.

Union Bank’s tier I and II bonds have been downgraded from “AAA” to “AA+” and the rating for Corporation Bank’s capital instruments have been revised from “AA “to “AA- “.

The rating, nevertheless, continues to factor in the support lenders are likely to receive from their majority owner Government of India.

Mumbai-based lender Union Bank is facing continued stress in the corporate loan