UCB Plans To Take Over Troubled National Bank

United Commercial Bank (UCB) is likely to take over trouble-ridden National Bank Ltd (NBL), according to officials of the lenders. 

The development revealed from a meeting between top officials of UCB and Bangladesh Bank presided over by Governor Abdur Rouf Talukder on Tuesday. 

UCB Executive Committee Chairman Anisuzzaman Chowdhury and Managing Director and CEO Arif Quadri were present among others at the meeting at the central bank headquarters, according to officials. 

This time UCB expressed its interest in acquiring NBL which suffered Tk 3,285 crore in losses in 2022, marks as highest in the history of Bangladesh's banking sector, burdened with high default loans. 

Default loans accounted for 25 percent of NBL's total loans at the end of 2022. 

By contrast, UCB which recorded Tk 402 crore in net profit in 2022, had a 5.99 percent nonperforming loan. 

Besides, the central bank will provide policy support if any bank acquires any weak bank voluntarily, the official said, adding that the existing sponsors are unlikely to have any stake in the NBL after valuation. 

Meanwhile NBL Chairman Syed Ferhat Anwar who was appointed by the central bank by dissolving the previous board to rescue the bank, said the takeover plan was not final yet.