United Commercial Bank Limited

United Commercial Bank Limited (UCBL) was incorporated on 26 June 1983 as a public company with limited liability under the Companies Act 1994. The bank started banking operations with an authorised capital of Tk 100 million divided into 1 million ordinary shares of Tk 100 each. The paid up capital was Tk 35.5 million. Later, both authorised and paid up capital were increased several times and on 31 December 2020 they stood at Tk 15000 million and Tk 12175 million respectively. Reserve funds of the bank comprised statutory reserves and general reserves of Tk 22917 in 2020 as against 2205.00 million in 2009 and Tk 85.88 million in 1990. The management of the bank is vested in a 20-member board of directors with the managing director as the chief executive. The bank is listed with Dhaka and Chittagong stock exchange.

Basic Facts and Economic Indicators (In Million Taka)

Indicators	2018	2019	2020
Authorized Capital	15000	15000	15000
Paid up Capital	10541.3	11595.4	12175
Reserved Fund	17458.5	21214.5	22917
Deposits	297172.8	330786.7	353981.6
a) Call Deposits	108547.8	124220.8	143184.1
b) Term Deposits	188625	206565.9	210797.5
Loans and Advances	294671.9	322728.1	351683.6
Investment	50830.8	57801	65323.5
Total Asset	401076.1	442003.8	493306.9
Total Income	18560.2	20708.9	20488.2
Total Expenditure	10902.3	12333.1	13631.1
Foreign Currency Trading	513490.2	504006.8	517010
a) Export	232314.4	252920.3	212485.5
b) Import	248969.8	246212.6	259241.1
c) Remittance	32206	4873.9	45283.2
Total manpower	4982	4988	4900
a) Officers	4527	4555	4507
b) Staff	455	433	393
Correspondent Banks	547	581	596
Total Branches (in numbers)	187	195	204
a) Domestic	187	195	204
b) Overseas	0	0	0
Agriculture Credit
Loan Disbursed	3472.4	4540	4460.1
Realised	4906.8	3774.9	5267
Industrial Credit
Loan Disbursed	61416.6	64892.1	67096.5
Realsied	48029.3	63836.7	62086
Loan Outstanding by Sector
Agriculture and Fisheries and Forestry	3792.7	4192.6	3123.7
Industry	42067.9	53196.2	64422.2
Trade and Commerce	70630.8	73059.5	67867.7
Poverty Reduction	108.1	215	156.3
CSR	75.1	34.2	212.1

Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Barshik Protibedon [Annual Report on Banks and Financial Institutions], 2019-20 and 2020-21.

The Bank provides loans to small, medium and large-scale industrial units, housing, export and import financing and trade and commerce. Lending rates varied between 10% and 16.5%. In 2020, foreign exchange business of the bank was carried at the total amount of Tk 5,17,210 million that comprised Tk 2,12,486 million for export, Tk 2,59,241 million for import and Tk 45,282 million for remittance. The bank has correspondent relationships with 596 foreign banks and financial institutions in 2020.

In 2019 bank deposits accounted for 2.8 per cent of total banking sector deposits and loans and advances accounted for 3.0 per cent of total banking sector loans and advances. The average interest rate differential between June 2019 based deposits and loans and advances was 4.0 percent. [Muhammad Abdul Mazid]