M Shahjahan Bhuiyan

United Commercial Bank Ltd (UCB) continued to achieve significant growth in the 'core banking businesses' in the calendar year ended December 31, 2011.

The Bank's profit from 'core banking' registered a 34 per cent rise during the period.

"Despite some odds in the internal and external economic areas, our Bank has been able to achieve the growth due to efficient management and concerted efforts of our team members," M Shahjahan Bhuiyan, managing director of the bank told The Financial Express in an interview recently.

UCB achieved 23 per cent growth in advance in the year ended December 31, 2011 against the corresponding period of 2010. The growths in deposit and operating profits (unaudited) were 22 per cent and 20 per cent respectively.

The Bank earned Tk 6.6 billion as operating profit in 2011 while the advance and deposit were Tk 114.90 billion and Tk 137.80 billion respectively in the same period.

Commenting on the future outline of the Bank, the UCB MD said the bank is going to complete the installation of core banking software (CBS) as soon as possible.

"It is impossible to survive in today's competitive market without CBS and that's why we have listed completion of CBS as one of the top priorities of 2012," Mr Shahjahan added.

He said coming out of 'early warning category' list of Bangladesh Bank, conservation of adequate capital under Basel-two, strengthening the capital-base, beginning the electronic fund under BEFTN, introduction of off-shore banking, adoptions of agriculture credit policy and green banking policy were the benchmark achievements of UCB in 2011.

Putting a thrust on 'organic growth', the UCB MD said dependence on highly sensitive corporate deposit should be reduced enhancing the retail deposit collection flow.

"With the opening up of economy and privatization in early 1983, UCB was one of the first generation private sector commercial banks, among handful of others that came into existence. The performance of UCB as a first generation bank, over the years, may be adjudged as praiseworthy in spite of the absence of adequate regulatory framework and suitable business model in the early days of privatization," Mr Bhuiyan said.

Mr Bhuiyan, one of the senior most banking professionals of the country said banking business of today has become more complex and is filled with uncertainties, changes and challenges due to newer dimension of national and global business and the economy at large.

"In order to deal with these complexities and challenges we need adequate preparedness. We are proud to say that UCB is successfully facing these challenges through capacity building at the group and individual level by development of skill, efficiency and up-gradation of performance ability in keeping up with the transformation in the banking industry."

"The New Management of the Bank having clear focus of the critical challenges that lies ahead has been continuously predicting the changes in the global as well as national economic cycles and making required adjustments in business strategies. Thus, a new success story was unfolded from July'2008 spearheaded by strong and effective leadership, direction and guidance of me," Mr Bhuiyan asserted.

There was slow growth of all business parameters up to the period of June, 2008 and then a sharp rise began in all business parameters from July, 2008 and beyond.

"Almost all the renowned business houses are now doing business with UCB which was possible due to our customer- friendly business policy and prompt decision making process. We have also developed business relationship with some renowned exchange houses abroad for increasing inward remittances," Mr Shahjahan said.

"In the perspective of Bangladesh, there is an immense opportunity of Off-Shore Banking for UCB with its proven capacity and capability in international trade," the UCB MD said.

Other than change in business performance, there were major changes in Bank's operation through introduction of new policies and amendment of existing policies.

"We have introduced policy and guidelines in every aspect of banking activities including initiatives to ensure sustainable and profitable business growth through development, acquisition and retention of potential human resources and high yielding customers by institutionalizing relationship banking across the Bank through building a team of dedicated, efficient and professional workforce; harnessing their core competence with good business practices, decipher market oscillations and exploit latent opportunities to remain ahead of others," he said.

"We do strongly believe that this miraculous success story has been possible because of our visionary business policy, all out drive by our executives and officers and relentless effort round the year and all these initiative we have taken will help us to be key market player towards making our dreams a reality," the UCB MD said.

The Daily Financial Express/Bangladesh/ 9th Jan 2012