United Commercial Bank (UCB) plans to bring in strategic investors, including development finance institutions and international partners, after completing its planned rights issue as it seeks to strengthen capital and accelerate long-term growth, Chairman Sharif Zahir said.
The bank has secured shareholder approval for the rights issue and is awaiting approval from the Bangladesh Securities and Exchange Commission. Once cleared, UCB will appoint investment banks to approach prospective investors and prepare an information memorandum for potential investors.
In an interview marking the bank’s 43rd anniversary on 27 June, he told TIMES of Bangladesh, “When a bank requires capital, the first responsibility lies with existing shareholders.”
Strategic investors would contribute not only capital but also expertise in governance, technology, risk management and international best practices.
The capital plan supports UCB’s ambition to “rank among Bangladesh’s leading banks within three years in shareholder returns, customer trust, service excellence, digital leadership and sustainable growth.”
Over the next decade, the bank aims to become a South Asian benchmark for customer experience and ethical banking.
Reflecting on UCB’s 43-year journey, Sharif Zahir said the bank has evolved from a traditional branch-based institution into a technology-driven lender built on governance.
“Growth is good, but trust is our true bottom line.”
He added, Bangladesh’s banks must move beyond conventional lending and become strategic partners for industrial modernisation, export diversification, SMEs and emerging entrepreneurs.
Bangladesh must also accelerate manufacturing-led growth, employment, export diversification and productivity by improving the investment climate through professionally managed industrial parks and economic zones, world-class infrastructure, faster approvals, policy continuity, energy security, efficient logistics and stronger rule of law.
While banks are ready to finance growth, the wider economy must create investable opportunities through stronger governance, infrastructure, exports, energy transition and investment confidence.
Sharif Zahir also called for sustainable recovery of non-performing loans through stronger action against major defaulters, recovery of assets linked to financial misconduct and capital flight, specialised financial courts and a centralised asset management company.
“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 (AMC) are now essential.”
Visible progress was also needed in recovering assets linked to loan misappropriation and capital flight, adding that UCB had made tangible progress in establishing legal claims on laundered money and remained uncompromising in recovering defaulted loans.
Sharif Zahir warned that the banking sector’s estimated 3 per cent capital deficit could weaken confidence and restrict international credit lines.
Excessive government borrowing from banks was also crowding out private-sector credit, limiting investment, employment and economic growth.
Digital innovation has become essential to banking’s future, he said, but technology should strengthen customer relationships rather than replace them.
UCB is prioritising same-day letter of credit openings, subject to documentation and compliance, end-to-end digitisation, expansion of its UCB One super app, wider use of its Oracle OBDX open API platform and greater financial inclusion through upay.
“Technology should scale our relationships, not replace them.”
Artificial intelligence will fundamentally change banking by replacing routine desk-based work and enabling bankers to spend more time with customers and businesses, he said.
UCB will continue investing in fintech, digital products, payments infrastructure, merchant financing, AI-driven underwriting and fintech partnerships to expand near-instant credit and banking services for retail customers, SMEs and underserved communities.
Sharif Zahir, also a top apparel exporter of the country, said Bangladesh’s biggest opportunities lie in green-energy financing, digital financial ecosystems, structured SME growth, export diversification, women-led enterprises and agriculture value chains.
As the country moves towards higher-income status, banks must shift from financing transactions to financing transformation by supporting green factories, renewable energy, technology adoption, productive SMEs and responsible entrepreneurship.
“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.”
He said UCB would continue expanding its Islamic banking business under applicable regulatory and Shariah governance frameworks while protecting depositor confidence through discipline, compliance, product quality and service excellence.
