Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 557 Tue. December 20, 2005  
   
Business


UCBL no more a 'problem bank'


United Commercial Bank Ltd (UCBL) has at last got rid of the problem bank status.

The central bank yesterday in a press statement said the UCBL was relieved of 'problem bank' status from Sunday following its significant improvement in overall management and financial indicators.

However, the press statement said the bank would remain under close observation and monitoring under the Bangladesh Bank's early warning system until fulfillment of the mandatory obligations on holding regular annual general meetings (AGMs).

The UCBL was included in the BB's problem bank list in 1994 due to its weak management and poor finical performance.

The UCBL sources said the bank conducted a special audit of its 2004 balance sheet by an independent auditor and the central bank was satisfied with the audit report.

The bank sources added during its 'problem bank status' period, its classified loan was 34 percent, which came down to only 9 percent in 2004.

The UCBL has no provision shortfall. Currently the bank has Tk 139 crore capital and provision surplus.

Managing Director of the bank Hamidul Haq yesterday said the bank will hold regular AGM after vacation of the stay order from the high court and will declare dividends.

"The UCBL is improving day by day in all of its operation and management activities," he added.

The number of problem banks has now came down to three -- Oriental Bank, First Security Bank and Social Investment Bank.

Earlier, Pubali Bank, The City Bank, Uttara Bank, National Bank and National Credit and Commerce Bank were relieved of the status of problem banks.