Union Bank Limited

Union Bank Limited The Union Bank Limited commenced its banking operations as a Shariah-based bank in the private sector on 20 May 2013 following its formation on 1 April of the same year. It has an authorised capital of Taka 10,000 million. This fourth generation bank extends high quality customer services through the integration of latest banking technology and Shariah-based products. Its head office is located on Gulshan Avenue of Dhaka city. As of March 2020, the bank had 87 branches across the country.

The cumulative deposits and loans cum advances status of Union Bank Limited as a percentage of overall banking sector during 2019 were 1.2 per cent and 1.3 per cent respectively. The deposits in the bank increased by 20.3 per cent during the year to reach Taka 150,219.90 million. On the other hand, the loans and advances rose by 22.1 per cent during 2019 to stand at Taka 146,459.60 million. The average interest rate spread between deposits and loans stood at 3.8 per cent during the year.

The sector-based loans and advances status of Union Bank Limited at the end of 2019 was as follows: (a) working capital financing – 15%; (b) trade and commerce – 74%; (c) industries – 7%; (d) construction – 2%; (e) agriculture, fisheries and forestry – 1%; (f) transport and communication – 0%; (g) power, gas and water supply – 1%; other loans – 0%. The industrial loans decreased by 34.6 per cent to stand at Taka 7647.20 million at the end of the year, while agricultural loans slipped to Taka 543.30 million by decreasing at a rate of 14.3 per cent during the year. Remittances received by the bank during the year were Taka 1922.80 million, while the amount spent for CSR (corporate social responsibility) stood at Taka 142.80 million. Taka 65.59 million were disbursed under green financing, while the SMEs received Taka 3913.00 million and female entrepreneurs Taka 14.19 million as loans.

The bank has installed centralised database and online core banking software, through which all the branches are connected and services like online banking, SMS banking, bill payments etc. are provided. The bank plans to expand its branches all over the country in districts and upazilas through effective deployment of services at the grassroots level. [Helal Uddin Ahmed]

References Banking Almanac: Banks and Financial Institutions of Bangladesh 2016. Dhaka: Shikkha Bichitra, December 2016; Report on Financial Institutions 2018-2019. Dhaka: Financial Institutions Division, June 2020; Website of Union Bank Limited.