Customers’ trust and confidence fueling deposit growth at UCB

Highlights

• UCB remains stable despite the industry-wide liquidity crisis, without requesting any support from the central bank
• No foreign payments delayed, indicating strong liquidity
• Focused on retail and SME lending; cautious approach to corporate loans
• Special task force formed to improve loan recovery
• Offering special home loans and savings facilities for expatriates
• One-third of the year's deposit target achieved in four months

United Commercial Bank (UCB) is one of the most prominent banks in Bangladesh's corporate sector. Before the political changes on August 5, the bank was under the sole control of former Land Minister Saifuzzaman, with his wife Rukhmila Zaman serving as chairperson. Allegations later surfaced that the Saifuzzaman family had withdrawn thousands of crores in the name of loans by exploiting their influence.

At United Commercial Bank (UCB), we've been through a significant transformation over the past year. When I joined as Managing Director on 30 September last year, following a complete overhaul of the board in late August, the situation was naturally tense. 

There were questions everywhere—from within the organisation and from our valued customers.

The transition, which followed serious allegations involving our former leadership, understandably led to a crisis of confidence. Our job was to rebuild that trust, both among our colleagues and the customers we serve.

One of our first priorities was to engage directly with employees at every level. Often, messages and intentions get distorted as they move down the hierarchy. 

So, we decided to communicate clearly and frequently. We shared our future plans, laid out our roadmap, and reassured our team that we were focused on transparency and sustainable growth.

To get a clear picture of our financial health, the new board commissioned an independent audit right away. Based on those findings, we took several strategic steps that are now paying off.

Rapid deposit growth and customer confidence

In all of 2024, UCB collected Tk4,000 crore in deposits. In just the first four months of 2025, we've already matched that. This alone shows the renewed confidence people have in us. During this same period, we've added two lakh new customers, growing our customer base by 10%.

Infographics: TBS

This growth hasn't come from a few big clients. It's been driven by our retail and SME customers, who now form the backbone of our deposit base. Of the Tk4,000 crore collected this year, only Tk500–550 crore came from corporate clients. The rest came from individuals and small businesses. That kind of trust is priceless.

Navigating the liquidity crunch—without support

After the changes in August, many banks in Bangladesh faced liquidity issues and sought support from the Bangladesh Bank. UCB didn't. We didn't need it. Our liquidity—both in local and foreign currency—has been healthy throughout. We never had to turn away a customer—not at the counter, not in clearing, not in any foreign payment. Not once.

International payments, which are often the first casualty in a crisis, continued without delay. This consistency has been key to maintaining our reputation and client relationships.

Our national footprint and retail strength

UCB currently has 231 branches, nearly 180 sub-branches, and around 1,000 agent banking outlets across the country. This extensive network allows us to reach customers in even the most remote regions. It's also been critical to our recent deposit growth.

And when you analyse the data, it's clear: our retail and SME segments are driving growth. Unlike corporate deposits, which are highly rate-sensitive and can move at the slightest change in interest rates, retail deposits represent deep-rooted trust.

Balanced and cautious loan strategy

This year, our focus has been on deposits, but we're also carefully expanding our lending portfolio. We've set an ambitious deposit target of Tk12,000 crore for 2025—three times what we collected last year. On the lending side, we're particularly focused on retail and SME loans, which are the real engines of our economy.

We're being cautious with corporate loans, especially where there have been past issues. For those, we've formed a special task force to strengthen recovery efforts. Our aim is to strike a balance—rejuvenate weak areas and invest more in promising sectors.

Currently, retail loans make up around 5–6% of our total loan book, while retail deposits account for nearly 20%. Our goal is to gradually bring those numbers into better alignment by increasing our focus on retail lending.

Special services for expatriates

Remittances are vital for Bangladesh, especially since our imports outweigh exports. Around 7% of the country's total international trade is handled through UCB. But what really keeps our foreign exchange balance intact is the contribution from expatriates, many of whom are doing humble jobs abroad.

To support them, we've enhanced our digital services and connectivity. We're making remittance transfers easier through our own channels, mobile financial services (MFS), and partnerships with other banks. We're also offering special savings and home loan packages tailored to expatriates, recognising their dream to own a home back in Bangladesh. We want to stand beside them in that journey.

It's been a challenging but inspiring journey so far. The numbers speak for themselves, but behind every figure is the trust of a customer and the commitment of a colleague. At UCB, we're not just recovering—we're rebuilding, reforming, and setting new standards for responsible banking.

This interview was conducted by The Business Standard's Staff Correspondent Sakhawat Prince