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United Commercial Bank PLC

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United Commercial Bank PLC
Native name
ইউনাইটেড কমার্শিয়াল ব্যাংক পিএলসি
FormerlyUnited Commercial Bank (Bangladesh)
Company typePublic limited company, commercial bank
ISINBD0108UCBL05
IndustryBanking
Financial services
FoundedJune 27, 1983; 41 years ago (1983-06-27)
HeadquartersGulshan,
Dhaka
,
Bangladesh
Number of locations
Area served
Bangladesh
Key people
  • Sharif Zahir, Chairman & Shareholder Director
  • Tanvir Khan, Shareholder Director
  • Sajjad Hossain, Independent Director
  • Yusuf Ali, Independent Director
  • Obaidur Rahman Independent Director
Services
Increase$105.7 million (2022)
Increase$37.1 million (2022)
Total assetsIncrease$5.8 billion (2022)
Total equityIncrease$382.9 million (2022)
Number of employees
5060 (2021)
Subsidiaries
  • Upay
  • UCB Stock Brokerage Ltd.
  • UCB Fintech Company Ltd.
  • UCB Asset Management Ltd.
  • UCB Investment Ltd.
RatingAA
Websitewww.ucb.com.bd
Footnotes / references
[1][2][3][4][5][6][7][8][9][10]

United Commercial Bank PLC (UCB) is a commercial bank in Bangladesh. It was established in 1983.[11][12][13]

History

[edit]

The bank was incorporated on 26 June 1983. The government owns shares in the bank. The bank was listed in the Dhaka Stock Exchange (DSE) by 1986 and Chittagong Stock Exchange (CSE) by 1995.[11][14]

On 8 April 1993, Humayun Zahir, the first chairman of the United Commercial Bank was murdered following a dispute with other bank directors.[15] Akhtaruzzaman Chowdhury Babu, director of UCB was suspected for the murder.[16] On 26 August 1999, Akhtaruzzaman forcefully seized control of UCBL's board of directors during a meeting with his son, Saifuzzaman Chowdhury by gunpoint with 40 armed men.[16][17] Again another chairman, Zafar Ahmed Chowdhury was forced to resign.[16] Bangladesh Police declined to initiate any action against him citing the close association between Akhtaruzzamanu and Prime Minister Sheikh Hasina.[16][17] Later, Zafar Ahmed returned to the board of directors with a court verdict in his favor.[16]

In February 2008, Bangladesh Bank appointed an observer to United Commercial Bank due to ownership disputes.[18] In 2010, Akhtaruzzaman became a director.[16] The Anti-Corruption Commission (ACC) sued four officials of UCB and a managing director of a real estate company for embezzling 90 million Bangladeshi taka from the bank.[19] Between 2007 and 2012, four officials of the bank stole 100 million taka from the bank using forged credit cards until they were detected in May 2012.[20] In 2012, the Anti-Corruption Commission sued six for embezzling 129 million BDT from UCB.[21]

In March 2016, a Chittagong Court sentenced an official of UCB to jail for allegedly helping a businessman secure 181.8 million BDT loan against a property, which was already mortgaged to Bangladesh Krishi Bank, through fraud and then laundering the money outside of Bangladesh.[22]

In September 2017, United Commercial Bank provided loan waiver to Russel Vegetable Oils Limited, a company linked to bank director, Sultana Hashem, wife to M. A. Hashem, chairman of Partex Group.[23] The loan waiver violated banking rules of Bangladesh.[23]

Humayun Zahir was the first chairman of the United Commercial Bank. In 2013, Humayun Zahir's elder son Sharif Zahir was elected as the vice chairman of the bank.[24][25] In 2013, M. A. Hashem was re-elected chairman of UCB.[26]

In September, Bangladesh Bank asked UCB to provide clarifications regarding their suspected profiting from selling dollars at inflated prices during the foreign exchange market crisis.[27] Later the complaint has been resolved, resulting in the bank being mandated to allocate 50% of its profit from dollar trading to its corporate social responsibility (CSR) funds, while the remaining 50% can be retained as income.[28] In July, MNH Bulu, A Bangladeshi businessman filed a lawsuit against UCB seeking BDT 400 million in damages for alleged defamation caused by false charges.[29] In May 2023, according to a report prepared in accordance with International Accounting Standard (IAS)-34, UCB disclosed a decline in its operating profit along with an increase in operating expenses.[30]

In 2024, Sharif Zahir become the chairman of the Bank who said he was removed from the bank forcefully with the knowledge of former Prime Minister Sheikh Hasina.[31]

Operations

[edit]

With a network of 228 branches and 159 sub-branches, the Bank provided personalized service, innovative practices, dynamic approach and efficient Management. Consumer products like UCB Cards have been showing growth since its inception in 2006 and soon became the leader in local market with around 40,000 card holders.[32]

The bank listed in Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited.[33]

Financial activities

[edit]
CRM/ATM booth of UCB in Mirpur

In 2009, United Commercial Bank signed a contract with the Bangladesh Cricket Board to become the official sponsor of the Bangladesh national cricket team.[34] In September 2015, United Commercial Bank launched a new logo, designed by Rafiqun Nabi and Mustafa Manwar.[35]

Mobile financial service (MFS), Ucash, was introduced in 2013.[36] After eight years of services the name has been changed to Upay.[37][38] In November 2020, United Commercial Bank PLC inaugurated its subsidiary, UCB Investment Ltd.[39]

In 2021, UCB launched the MFS called Upay (উপায়), a digital financial service brand owned by UCB Fintech Company Limited, a United Commercial Bank affiliate.[40] Upay had acquisitions with Grameenphone, Robi, and Banglalink to ensure that their users will not need an active internet connection to use the Upay application.[41]

In 2022, UCB achieved its highest profit, exceeding US$39 million, representing a growth rate of 32% compared to the previous fiscal year.[8] The bank plans to establish a subsidiary at this year in Singapore[42] the United Arab Emirates and Qatar[43] to handle remittances.

In 2024, UCB planned to take over National Bank, UCB indicated interest in purchasing NBL, which was hit hard by high loan default rates in 2022, resulting in Tk 3,285 crore in losses—the most ever recorded by Bangladesh's banking industry.[44]

Subsidiaries

[edit]
  • UCB Stock Brokerage[45]
  • UCB Investment
  • UCB Asset Management
  • UCB Fintech Company Limited

Awards and recognition

[edit]
  • Received an award for excellence in the category of "Mastercard Contactless (Acquiring)" in the 'Mastercard Excellence Awards 2022'.[46]
  • Global SME Finance Award 2022[47]
  • Bangladesh's Best Bank for CSR 2023[48]

References

[edit]
  1. ^ "UCB, Global Islami, Union get new boards of directors".
  2. ^ "UCB freed from ex-land minister, family's grip".
  3. ^ "Corporate Information - United Commercial Bank (UCB)". Archived from the original on 2023-04-05. Retrieved 2023-06-07.
  4. ^ ইউসিবি'র ইসলামিক ব্যাংকিং সেবা 'ইউসিবি তাকওয়া'র আনুষ্ঠানিক যাত্রা শুরু. Jugantor (in Bengali). 12 October 2020. Archived from the original on 4 November 2021. Retrieved 12 October 2020.
  5. ^ "CSE". Archived from the original on 2023-02-02. Retrieved 2023-06-07.
  6. ^ "Display Company Information | Dhaka Stock Exchange". Archived from the original on 2021-11-03. Retrieved 2023-06-07.
  7. ^ "ATM Locator - United Commercial Bank (UCB)". Archived from the original on 2023-04-05. Retrieved 2023-06-07.
  8. ^ a b "UCB reports record 32pc profit rise". The Financial Express.
  9. ^ "Independent Auditor's Report and Audited Consolidated and Separate Financial Statements for the year ended 31 December 2022" (PDF). UCB.
  10. ^ "UCB Profile - United Commercial Bank (UCB)".
  11. ^ a b "United Commercial Bank Limited". Banglapedia. Archived from the original on 31 October 2016. Retrieved 30 October 2016.
  12. ^ "United Commercial Bank signs Microsoft Enterprise Agreement". Dhaka Tribune. 25 September 2016. Archived from the original on 30 August 2017. Retrieved 30 October 2016.
  13. ^ "Jayati Chakraborty performance at Uttra Club". Dhaka Tribune. 1 October 2016. Archived from the original on 17 September 2018. Retrieved 30 October 2016.
  14. ^ "DSEX and DS30 indexes reshuffled". Dhaka Tribune. 21 July 2016. Archived from the original on 2 March 2017. Retrieved 1 March 2017.
  15. ^ "Fresh arguments in Humayun Zahir Murder Case begin". The Daily Star. 17 January 2000. Archived from the original on 2023-06-03. Retrieved 2023-06-07.
  16. ^ a b c d e f Hossain, Shawkat. "Lessons from three black chapters of the banking sector". Prothom Alo. Archived from the original on 2022-11-01. Retrieved 2023-03-24.
  17. ^ a b Mahmud, Arshad (1999-08-28). "Official accused of storming bank in Bangladesh". The Guardian. ISSN 0261-3077. Archived from the original on 2022-11-01. Retrieved 2023-03-24.
  18. ^ "BB appoints observers for 3 pvt banks". The Daily Star. 2008-02-01. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  19. ^ "4 UCBL officials among 5 sued". The Daily Star. 2017-04-05. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  20. ^ Rahman, Sajjadur; Ch, Chaitanya; Halder, ra (2012-06-05). "Credit card fraud ring busted". The Daily Star. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  21. ^ "More scam in banks". The Daily Star. 2012-11-07. Archived from the original on 2023-01-20. Retrieved 2023-03-24.
  22. ^ "UCBL official sent to jail in money laundering case". The Daily Star. 2016-03-07. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  23. ^ a b Rahman, Sajjadur (2017-09-09). "Bank bends rules for its directors". The Daily Star. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  24. ^ "UCB gets vice chairman". The Daily Star. 18 June 2013. Archived from the original on 2023-06-03. Retrieved 2023-06-07.
  25. ^ "Sharif Zahir made UCBL vice-chairman |". Archived from the original on 2023-05-13. Retrieved 2023-06-07.
  26. ^ "UCB re-elects chairman". The Daily Star. 2015-04-20. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  27. ^ "Six more banks asked to explain alleged unusual profit-making". New Age.
  28. ^ "Dollar crisis: 6 more banks exonerated from charge of making excessive profit". The Business Standard. 29 September 2022.
  29. ^ "Businessman MNH Bulu seeks Tk 400m in damages from United Commercial Bank over 'false charges'". bdnews24.com.
  30. ^ "Financial Statements - United Commercial Bank (UCB)".
  31. ^ Hasan, Md Mehedi (2024-09-16). "'We were forced to leave UCB, and the PM knew everything'". The Daily Star. Retrieved 2024-09-16.
  32. ^ "UCB Profile - United Commercial Bank (UCB)". UCB Profile - United Commercial Bank (UCB). Retrieved 2023-11-07.
  33. ^ "Corporate Information - United Commercial Bank (UCB)". Corporate Information - United Commercial Bank (UCB). Retrieved 2023-11-07.
  34. ^ "UCBL made official sponsor of Tigers". The Daily Star. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  35. ^ "UCB unveils new logo". The Daily Star. 2015-09-20. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  36. ^ "UCB mobile financial service UCash launched". bdreports24.com. 23 November 2013. Archived from the original on 2023-05-22.
  37. ^ "UCB plans to set up separate MFS subsidiary "upay"". The Business Standard. 8 March 2021. Archived from the original on 2023-05-13. Retrieved 2023-06-07.
  38. ^ "'upay' offers lowest cash-out fees, highest client security". The Financial Express. Archived from the original on 2023-05-13. Retrieved 2023-06-07.
  39. ^ "UCB Investment LTD. Started journey". The Financial Express.
  40. ^ "Who we are". upaybd.com. Archived from the original on 2021-11-06. Retrieved 2021-11-15.
  41. ^ "Robi customers can use upay app without Internet". UNB. Archived from the original on 2023-05-01. Retrieved 2023-06-07.
  42. ^ "UCB to form a subsidiary in Singapore". The Daily Star. 2022-02-23. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  43. ^ "UCB to form subsidiaries in Qatar, UAE". The Daily Star. 2022-04-21. Archived from the original on 2023-03-24. Retrieved 2023-03-24.
  44. ^ "UCB plans to take over troubled National Bank". The Daily Star (Bangladesh). 9 Apr 2024. Retrieved 17 Apr 2024.
  45. ^ "UCB to form subsidiaries in Hong Kong, Malaysia". The Business Standard. 2022-03-31. Retrieved 2023-11-07.
  46. ^ "UCB gets Mastercard excellence award". The Business Standard. 2022-11-29. Retrieved 2023-11-07.
  47. ^ "UCB wins awards at Global SME Finance Award 2022". New Age. Retrieved 2023-11-07.
  48. ^ "United Commercial Bank PLC: Bangladesh's Best Bank for CSR 2023". The Daily Star. 2023-07-31. Retrieved 2023-11-07.
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