UCB wants to be a benchmark for ethical banking in South Asia

United Commercial Bank PLC has marked its 43rd anniversary as it looks to strengthen governance, digital services and customer trust.

In an interview with The Business Standard, Sharif Zahir, chairman of United Commercial Bank PLC and vice-president of the Bangladesh Bankers' Association, discussed the bank's 43-year journey, capital plan, bad loan recovery, financial inclusion and the future of ethical banking in Bangladesh.

As UCB celebrates its 43rd anniversary, how do you see the bank's evolution, and what is your vision for positioning UCB among the region's leading financial institutions over the next decade?

Reaching 43 years is not just a milestone. It reflects deep-rooted trust.

We have evolved from a traditional brick-and-mortar operation into a modern, technology-driven financial institution built on solid governance.

But banking is changing fast. Within the next three years, our ambition is to position UCB among the leading banks in Bangladesh in terms of shareholder returns, customer trust, service excellence, digital leadership and sustainable growth.

Over the next decade, our goal is not just to see UCB grow bigger, but to make it better. We want to be recognised across South Asia as the benchmark for customer experience and ethical banking.

Growth is good, but trust is our true bottom line.

What is your long-term ambition for UCB's position in Bangladesh over the next few years?

Once you become a customer of UCB, we take care of you.

If you have a genuine business, integrity and long-term commitment, we will stand by you.

Many of our customers have banked with us for decades, and we have supported them through economic downturns, Covid-19 and other difficult times.

Unlike many institutions that step back during challenging periods, UCB has remained a trusted partner to its customers.

Our ambition is to position UCB among the leading banks in Bangladesh in terms of shareholder returns, customer trust, service excellence, digital leadership and sustainable growth.

You have leadership experience in both the banking sector through the Bangladesh Bankers' Association and the export industry through the Bangladesh Garment Manufacturers and Exporters Association. From that perspective, how can banks play a more transformative role in accelerating growth, especially in addressing non-performing loans?

Bangladesh is currently at a critical economic juncture.

Having in-depth involvement in banking and manufacturing, I can see that despite global uncertainties, Bangladesh's greatest strengths remain a resilient export sector, a vibrant entrepreneurial community and a large young workforce.

To fully harness these advantages, banks must move beyond their traditional role as lenders and become strategic partners for industrial modernisation, export diversification, SMEs and emerging entrepreneurs.

At the same time, recovery of non-performing loans must be sustainable.

Strong action against major defaulters, seizure of assets and shares acquired through financial misconduct, specialised fast-track financial courts and a centralised asset management company are now essential.

We also need visible progress in recovering assets linked to loan misappropriation and capital flight.

UCB is the first bank to make visible, tangible progress in establishing legal claims on laundered money, and we are uncompromising on recovering the loans.

How do you view the current macroeconomic landscape, and what structural changes are needed outside the banking sector to drive sustainable growth?

Bangladesh must focus on employment generation, manufacturing-led growth, export diversification and productivity improvement.

We have a young population, and we must use this demographic dividend before it becomes a demographic liability.

Investment must be accelerated through professionally managed industrial parks and economic zones, world-class infrastructure, faster approvals and a genuinely investor-friendly environment.

Investors need policy continuity, energy security, logistics efficiency and confidence in the rule of law.

There is an urgent need for strong and consistent policy support.

The government must continue its drive against financial looters and wilful defaulters, supported by speedy trial mechanisms or dedicated financial courts.

A clear and consistent signal must be sent that financial crimes will not be tolerated. Without that discipline, sustainable growth becomes difficult.

Banks can finance growth, but the broader economy must create investable opportunities.

If the country strengthens governance, infrastructure, exports, energy transition and investment confidence, the banking sector will be ready to support the next phase of Bangladesh's growth.

What are your specific concerns regarding the current capital position of the banking sector, policy enforcement and government borrowing?

The banking sector is facing a significant capital shortfall.

The industry's capital adequacy remains under severe pressure, with an estimated deficit of around 3%, which could restrict international credit lines and weaken confidence in the financial system.

Another major concern is excessive government borrowing from the banking system, which crowds out private sector credit and restricts investment, employment and economic growth.

On capital adequacy, UCB was among the first to approach our shareholders through the annual general meeting for a rights issue.

When a bank requires capital, the first responsibility lies with existing shareholders. We have done the right thing by seeking their support and are now awaiting approval from the Bangladesh Securities and Exchange Commission.

Once that process is completed, we intend to engage strategic investors through a transparent, professionally managed process.

An information memorandum is being prepared, and investment banks will be engaged to approach international investors, including development finance institutions and strategic partners.

Such investors will not only contribute capital; they can also bring long-term strategic value in governance, technology, risk management and international best practices.

Before bringing in any such investor, we will follow a proper process and share necessary information with our shareholders.

As technology reshapes financial services, how should banks balance digital innovation, responsible lending and customer-centricity while remaining competitive in an increasingly dynamic market?

Digital innovation is no longer a luxury; it is essential for survival.

However, technology should scale our relationships, not replace them. Our focus is to significantly improve customer service for both large corporates and SMEs.

Our priorities include:

• Same-day LC opening, subject to complete documentation and compliance.

• End-to-end digitisation of banking processes.

• Making UCB One, our next-generation super app, an integral part of daily life.

• Expanding the country's first Oracle OBDX Open API digital banking platform to get more done for our consumers.

• Scaling financial inclusion through upay, our digital finance platform, reaching the unbanked and underserved through mobile-first delivery.

How do you envision the future of banking in terms of technological disruption and financial inclusion?

Artificial intelligence will fundamentally change banking as we know it.

Routine desk-based banking will increasingly be replaced by AI and automation.

The banker of the future must be relationship-driven, spending more time with customers and businesses rather than behind a desk.

At UCB, our strategic focus will be on fintech, digital products and technology-led financial inclusion.

We seek continued government support to expand banking services to the unbanked and underbanked through technology.

Digital payments, digital currency, secure tokenised payment systems and open banking must reach the masses.

Credit should be available at the fingertips of retail customers, SMEs and small entrepreneurs, not only large corporate clients.

We will continue investing in our digital core banking platform, payments infrastructure, merchant financing and fintech partnerships.

By leveraging AI-driven underwriting alongside upay and our wider distribution network, we can extend faster, near-instant credit and scale financial inclusion efficiently and responsibly.

Banking must reach the masses through secure, efficient and accessible digital channels.

What opportunities excite you most for Bangladesh's financial sector over the next decade, and what support will UCB and the banking industry need to help achieve the country's long-term development aspirations?

I am genuinely bullish on Bangladesh's future.

Over the next decade, our economy can become more diversified, more productive and more deeply integrated into global value chains.

The biggest opportunities lie in green-energy financing, digital financial ecosystems, structured SME growth, export diversification, women-led enterprises, agriculture value chains and the formalisation of underserved businesses.

As Bangladesh moves toward higher-income status, banks must shift their mindset from financing transactions to financing transformation.

This means supporting green factories, renewable energy, energy-efficient machinery, technology adoption, productive SMEs and responsible entrepreneurship.

At UCB, our goal is to anchor that journey responsibly.

A bank's success should not be measured only by balance-sheet size. It should be measured by the tangible economic progress it creates for society: jobs, exports, entrepreneurship, innovation, inclusion and confidence.

To achieve this, the industry will need strong regulatory discipline, faster recovery and enforcement mechanisms, deeper capital markets, reliable digital infrastructure, credible credit information and policy consistency.

Banks can then finance long-term transformation with greater confidence and lower systemic risk.

That is the future of ethical banking, and that is the future UCB wants to help build.

What is your perspective on Islamic banking, and what assurances do you have for UCB Islamic customers?

Islamic banking is a major growth opportunity for Bangladesh, and UCB Islamic will remain an important part of our strategy.

To our Islamic banking customers, my assurance is clear: we remain fully committed to ethical, transparent and dependable Shariah-compliant banking.

Your deposits are our highest responsibility, and we will continue to manage the business under applicable regulatory and Shariah governance frameworks.

UCB Islamic has a strong customer base and healthy deposit confidence.

Our responsibility is to protect that trust through discipline, compliance, product quality, Shariah supervision and service excellence.

On UCB's 43rd anniversary, what message would you like to share with your customers, employees, shareholders and the wider business community?

To our customers, thank you for your unwavering trust. Our 43rd anniversary is a celebration of that shared trust.

Through one of the most difficult periods in the banking sector, you stood by UCB.

Our remarkable growth in deposits and customer acquisition reflects the strength of our brand and the confidence people continue to place in us.

We will protect that trust every day through better service, stronger governance and responsible banking.

To our employees, this is a defining moment.

We are not only strengthening a bank; we are rebuilding confidence in an institution.

Professionalism, integrity, speed, accountability and customer focus must define the new UCB culture.

To our shareholders, your continued support is essential.

We are taking difficult but necessary steps to strengthen capital, improve asset quality, recover legacy exposures and build long-term value.

To the wider business community, UCB remains open for genuine business.

If you are building responsibly, creating employment, exporting, investing, innovating or serving the economy with integrity, UCB will be your partner.

Our vision is simple: to make UCB one of the most trusted, technology-driven, customer-focused and ethically governed banks in South Asia.

That is not only our ambition; it is our responsibility.