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]