United Commercial Bank Ltd

United Commercial Bank PLC (UCB) is a private commercial bank in Bangladesh established in 1983, listed on Dhaka Stock Exchange and Chittagong Stock Exchange.

History

1980s

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

1990s

On 8 April 1993, Humayun Zahir, the first chairman of the United Commercial Bank was murdered following a dispute with other bank directors. Akhtaruzzaman Chowdhury Babu, director of UCB was suspected for the murder. Babu fled the country and returned in 1996 after the Awami League government came to power replacing the Bangladesh Nationalist Party.

On 26 August 1999, Babu forcefully seized control of UCBL's board of directors during a meeting with his son, Saifuzzaman Chowdhury by gunpoint with 40 armed men. Again another Chairman, Zafar Ahmed Chowdhury was forced to resign. Bangladesh Police declined to initiate any action against him citing the close association between Babu and the Prime Minister Sheikh Hasina. Later, Zafar Ahmed returned to the board of directors with a court verdict in his favor.

2000s

In February 2008, Bangladesh Bank appointed an observer to United Commercial Bank due to ownership disputes.

In 2009, United Commercial Bank signed a contract Bangladesh Cricket Board to become the official sponsor of Bangladesh national cricket team.

2010s

In 2010, while Awami League returned to power Babu again became a director.

Anti-Corruption Commission (ACC) sued four officials of UCB and a managing director of a real estate company for embezzling 90 million BDT from the bank. 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. In 2012, the Anti-Corruption Commission sued six for embezzling 129 million BDT from UCB.

In 2013, Humayun Zahir's elder son Sharif Zahir was elected as the Vice Chairman of the Bank. A mobile financial service (MFS), Ucash, has been introduced at the end of this year. After eight years of services the name has been changed to Upay.

In September 2015, United Commercial Bank launched a new logo, designed by Rafiqun Nabi and Mustafa Manwar. M. A. Hashem was re-elected chairman of UCB.

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.

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

2020s

In November 2020, United Commercial Bank PLC inaugurated its subsidiary, UCB Investment Ltd.

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. 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.

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

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. 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. 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.

The bank receives Global SME Finance Award from International Finance Corporation in September and Excellence in Automation – Bangladesh award during a program ''UiPath Automation Excellence Awards 2022'' in December of this year.

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.

Corporate social responsibility (CSR)

* UCB donated 10 million BDT to the relief fund of Prime Minister Sheikh Hasina in 2015.
* UCB aims to support the country's agriculture sector and plans to implement ''VorosharNotunJanala'' in 2023.
* UCB donated BDT 4 crore to "Ashrayan-2," a project under the Government of Bangladesh, aimed at providing support to landless, homeless individuals, and their families in 2023.https://www.tbsnews.net/economy/corporates/united-commercial-bank-plc-donates-tk4-crore-pms-ashrayan-2-project-568274

References

Banks established in 1983
Banks of Bangladesh
Banks of Bangladesh with Islamic banking services
Companies listed on the Dhaka Stock Exchange
Companies listed on the Chittagong Stock Exchange

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