UCB at 42: Chairman Sharif Zahir redefines reforms, recovery and the road ahead 

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As United Commercial Bank PLC (UCB) marked its 42nd anniversary on 28 June, it reflected on more than four decades of enduring presence in Bangladesh's financial landscape.

From pioneering private sector banking to navigating modern-day challenges, UCB's journey closely parallels the broader evolution of the nation's economy. In an exclusive interview with The Business Standard's  Sakhawat Prince, UCB Chairman Sharif Zahir s hares insights into the bank's remarkable growth, its commitment to reform, and his vision for a future driven by integrity, innovation, and dedicated service to the people of Bangladesh. 

What key milestones and innovations have driven UCB's growth and leadership over the past 42 years?

Over the past 42 years, United Commercial Bank PLC (UCB) has grown from a bold vision into a cornerstone of Bangladesh's financial landscape. As one of the country's earliest private banks, we have consistently demonstrated resilience, innovation, and an unwavering commitment to national development.

Among our most notable achievements are pioneering private sector banking in Bangladesh, maintaining a robust and expanding customer base, and making sustained contributions to SME and corporate financing. We have also championed inclusive banking and supported economic empowerment across all segments of society.

Key milestones—such as surpassing Tk10,000 crore in savings deposits, onboarding over 300,000 new customers within just six months, and maintaining strong liquidity—reflect both our operational strength and the trust placed in us by our customers. In recent years, we have made significant strides in digital transformation, further strengthening our position as a forward-looking, customer-centric institution.

Above all, our legacy rests on a foundation of integrity, service, and a deep-rooted commitment to the people of Bangladesh.

Having returned as Chairman post-uprising, how do you compare UCB's current culture and governance with your earlier tenure?

Upon my return, I was both humbled and inspired by the dedication of our staff and the enduring trust of our customers. There was a tangible sense of renewal—a collective determination to restore UCB's reputation and performance. 

While challenges were apparent, so too was the commitment to transformation. The working environment is now more transparent, collaborative, and centred on staff welfare, timely promotions, and operational excellence. I am proud to see UCBians embracing change with courage and unity.

How do you respond to Bangladesh Bank's findings on past irregularities at UCB, and what reforms has the board enacted to rebuild integrity?

The audit findings are indeed deeply concerning. As Chairman, I take these matters with the utmost seriousness. We have launched comprehensive internal investigations, fully cooperated with the regulatory authorities, and introduced stringent oversight mechanisms. The newly formed board is resolute in its commitment to eradicating all forms of irregularities and preventing any recurrence.

Our stance is one of zero tolerance: any credible evidence of misconduct is met with prompt and decisive action. We remain firmly committed to transparency and accountability, to ensure that such issues do not arise again.

What legal and recovery strategies is UCB using to reclaim lost funds, and what progress has been made so far?

Recovering misappropriated funds is a top priority. We have established dedicated recovery teams, enhanced legal action against defaulters, and implemented rigorous monitoring of high-risk accounts. In addition, with the approval of Bangladesh Bank, UCB plans to engage international legal firms through litigation funders to trace and recover laundered funds and defaulted loans. 

This initiative underscores our firm resolve to take strong action against financial misconduct, both domestically and abroad. These decisive steps are already contributing to the stabilization of our financials and position us for sustainable, long-term growth.

Since resuming leadership, what major internal reforms have you introduced, and how have they improved efficiency and trust?

Key reforms have included a comprehensive overhaul of the credit approval and risk management processes, the introduction of more rigorous compliance protocols, enhanced transparency in decision-making, and a restructuring of leadership roles to reinforce accountability. 

These measures have already resulted in improved operational discipline, higher standards of customer service, and a renewed emphasis on financial stability.

How is UCB aligning with national banking reforms, and what challenges and opportunities does it foresee in this shift?

The ongoing reforms in Bangladesh's banking sector are both necessary and timely, focusing on transparency, stronger governance, and digital transformation. UCB is fully aligned with these objectives—we are strengthening our compliance frameworks, investing in advanced technology, and reinforcing our capital base through measures such as doubling our authorised capital and issuing rights shares. 

We view these reforms not as challenges, but as opportunities to set a benchmark for the industry.

With rising NPLs and pressure on margins, what is UCB's strategy to improve asset quality and long-term profitability?

To address the challenges of rising non-performing loans (NPLs) and margin pressures, UCB has adopted a comprehensive and proactive strategy aimed at improving asset quality and ensuring long-term profitability. 

Key initiatives include: Intensifying loan recovery efforts, including legal action against willful defaulters; Enhancing credit risk assessment and monitoring to strengthen portfolio quality; Expanding our deposit base, evidenced by a recent net deposit growth of Tk6,500 crore; Optimising cost structures and operational efficiency to protect profitability; Reinforcing our capital base through right shares and subordinated bonds.  

How is UCB using tech and digital banking to enhance customer experience and stay competitive in the FinTech era?

Technology lies at the heart of UCB's future. Our ambition is to become a modern, customer-centric bank by expanding our digital banking services, implementing AI-driven solutions, and strengthening cybersecurity. Recently, we launched Bangladesh's first microservices-based open API platform and adopted the latest FCUBS 14.7 core banking system, positioning us among the global frontrunners in digital innovation.

We are actively investing in digital channels and forging partnerships with FinTech firms to make banking faster, more secure, and accessible. Our objective is to lead the digital transformation of Bangladesh's banking sector, offering innovative, dependable services to all our customers.

What is your long-term vision for UCB's role in Bangladesh's banking sector, and how will you balance growth, risk, and social impact? 

My vision is for UCB to become the most respected financial institution in Bangladesh—digitally empowered, employee-centric, and purpose-driven. Our long-term strategy involves expanding both our digital and physical presence, reinforcing our commitment to financial inclusion, and continually raising standards in integrity and customer service. 

We aspire to set new benchmarks in governance, innovation, and client experience, ensuring UCB stands as a symbol of national pride and progress for generations to come.

As we commemorate 42 years of service, our journey is far from complete. With renewed conviction, a clear vision, and unwavering dedication, we are not merely rebuilding a bank—we are redefining what it means to serve a nation. Let us honour our past and shape the future—together.