Union Bank Limited (Bangladesh)

Union Bank Limited is a fourth-generation private Islamic bank in Bangladesh. It is listed on the Dhaka Stock Exchange.[3]

Union Bank Limited
TypePrivate
IndustryBanking
Founded7 March 2013
HeadquartersDhaka, Bangladesh
Area served
Bangladesh
Key people
[1][2]
ServicesBanking
Financial services
Websitewww.unionbank.com.bd

HistoryEdit

Union Bank Limited was established on 7 March 2013 as a sharia-compliant bank.[4] It signed an agreement to use products of Millennium Information Solution Limited.[5]

On 8 January 2017, Islami Bank Bangladesh Ltd appointed Md Abdul Hamid Miah, former managing director of Union Bank, as managing director.[6] This happened at a time Islami Bank Bangladesh Ltd saw major changes in ownership with companies aligned with S. Alam Group of Industries were allegedly buying up stakes in Islami Bank.[6] The chairman of Union Bank at that time Shahidul Alam is a director of S Alam Group and brother of the chairman of S Alam Group, Mohammad Saiful Alam Masud Chowdhury.[6]

ABM Mokammel Hoque Chowdhury was appointed managing director of Union Bank Limited on 22 April 2020 from additional managing director.[7]

On 5 September 2021, Bangladesh Securities and Exchange Commission approved the Union Bank Limited plan to go for IPO.[8] Union Bank 4.28 billion taka from the stock market which would make it the fourth largest IPO in the history of Bangladesh and the largest for the banking sector in the country.[8][9]

On 23 September 2021, an inspection by Bangladesh Bank found that the bank overstated the cash in its vault of Gulshan branch by 190 million out of a total of 310 million taka.[10] Deputy managing director of Union Bank Limited, Hasan Iqbal, said that the missing cash was given to a "VIP client" after regular hours.[11][12] The bank suspended three of its officials after the discovery was made.[11] Bangladesh Bank did not take any punitive action against Union Bank Limited for the mismatch of funds in its Gulshan Branch despite it being a violation of Banking rules.[13] It has sent a letter to Union Bank seeking an explanation for the mismatch.[14]

Union Bank planned to release shares on the Dhaka Stock Exchange on 26 January 2022.[9][15] BRAC EPL Investments Limited and Prime Bank Investment Limited were the issue managers of the bank.[16] On 30 June 2022, an investigation by Bangladesh Bank found that the Bank had provided majority of its loans to 300 companies that exist only on paper and some of whom are not even registered as businesses in Bangladesh.[17]

ReferencesEdit

  1. ^ "Message from the Chairman". unionbank.com.bd. Retrieved 7 July 2022.
  2. ^ "Message from the Managing Director". unionbank.com.bd. Retrieved 7 July 2022.
  3. ^ "Stocks fall for selling spree". The Daily Star. 31 January 2022. Retrieved 8 July 2022.
  4. ^ "About us". unionbank.com.bd. Union Bank Ltd. Retrieved 7 July 2022.
  5. ^ "Union Bank Ltd signs Agreement with Millennium Information Solution Ltd (Millennium) for Core Islamic Banking Solution". The Daily Star. 23 May 2013. Retrieved 8 July 2022.
  6. ^ a b c "Changing of the guard at Islami Bank". The Daily Star. 8 January 2017. Retrieved 8 July 2022.
  7. ^ "Union Bank appoints new MD". The Daily Star. 22 April 2020. Retrieved 8 July 2022.
  8. ^ a b "BSEC gives nod to largest banking IPO". The Daily Star. 5 September 2021. Retrieved 8 July 2022.
  9. ^ a b "Union Bank to debut in stock market tomorrow". The Daily Star. 25 January 2022. Retrieved 8 July 2022.
  10. ^ "Bangladesh Bank finds discrepancy in Union Bank's vault". The Daily Star. 23 September 2021. Retrieved 7 July 2022.
  11. ^ a b "Union Bank suspends 3 officials". The Daily Star. 24 September 2021. Retrieved 7 July 2022.
  12. ^ "Union Bank opens vault, gives 19C to client after hours". Dhaka Tribune. 23 September 2021. Retrieved 8 July 2022.
  13. ^ "No action yet taken against Union Bank for fund mismatch". The Daily Star. 22 October 2021. Retrieved 8 July 2022.
  14. ^ "BB asks Union Bank to explain Tk 19 crore missing from its Gulshan branch". UNB. Retrieved 8 July 2022.
  15. ^ "Each general investor gets 792 Union Bank IPO shares". New Age. Retrieved 8 July 2022.
  16. ^ "Union Bank signs deal with PBIL, BRAC EPL". bangladeshpost.net. Retrieved 8 July 2022.
  17. ^ Sakib, Shanaullah. "Anonymous loans put Union Bank at risk". Prothom Alo. Retrieved 8 July 2022.