United Commercial Bank saw 23% deposit growth in 2025

United Commercial Bank PLC (UCB) recorded its highest-ever deposit growth of 23 percent in 2025, more than double the banking sector’s average growth rate of 11 percent despite various macroeconomic challenges.

As a result, UCB’s total deposits increased by around Tk 13,000 crore to Tk 68,394 crore.

The information was disclosed at the bank’s 43rd annual general meeting (AGM), held recently at Kurmitola Golf Club in Dhaka, according to a press release.

Sharif Zahir, chairman of UCB, presided over the meeting.

During the year, the bank added around 678,000 new customer accounts.

Through efficient balance sheet management, UCB reduced its loan-to-deposit ratio from 91.3 percent to 83 percent, significantly strengthening its liquidity position.

Alongside an 8 percent growth in loans and advances, the bank recovered around Tk 114 crore from classified and written-off loans, nearly three times higher than the amount recovered in the previous year.

Due to new regulatory policies, the classified loan ratio had risen to 19 percent at one stage. However, through strengthened risk management and intensified recovery efforts, the ratio was reduced by nearly 4 percentage points to 15.5 percent.

The bank also posted strong growth in its Islamic banking operations, with deposits rising by 163 percent and investments increasing by 145 percent.

In inclusive banking, UCB’s agent banking operations became profitable for the first time.

In addition, disciplined cost management helped reduce other operating expenses by around Tk 97 crore. The growth was achieved with only a 3 percent increase in the workforce.

In the technology segment, UCB enhanced its digital capabilities through the launch of the country’s first microservices-based Open API banking platform and the UCB One App. As a result, nearly 65 percent of the bank’s total transactions are now conducted through digital channels.

Shareholders expressed satisfaction with the bank’s recent business performance and overall progress.

At the meeting, shareholders unanimously endorsed the bank’s commitment to strengthening corporate governance, expanding technology-driven banking services, and building a sustainable capital structure.

Md Shazzad Hossoin, independent director and vice-chairman of the bank; Md Tanvir Khan, director and chairman of the executive committee; Imam Hasan, independent director and chairman of the audit committee; Md Yusuf Ali, independent director and chairman of the risk management committee; Mohammad Mamdudur Rashid, managing director and CEO; and Faruk Ahammad, deputy managing director and chief financial officer, among others, were also present.