Report On Overall Performance of UCBL Focusing on Foreign Exchange

United Commercial bank is a three decades experienced bank. Through long history of the bank its profitability wavered many times. Recent years are coming very handy to the bank due to its transformation in the leadership. The very Managing Director is performing his utmost duty with due diligence along with his colleagues many of whom came from the Prime Bank followed by him. Non performing loan is a big burden on any bank but due to hard compliance with the regulation and good practice the bank did not have to carry that, as a result of that and recent performance UCBL has got a strong credit rating from CRISL.

More than 200 percent increase in the net profit (pre-tax) is the best indicator how UCBL is performing. Which means the bank is performing the prime duty of increasing the shareholder’s wealth. But this is very shocking that UCBL is earning maximum from the investment in other banks which is not commensurate to the risk diversification, in fact it happens with the most banks of the country even with other investors both institutional and individual. Government has imposed the investment limit in the capital market which would bring the risky investment under tight grip.

Export Import business has been very integral and important part of the banking operation. UCBL is also pressurized with that. 50 percent and 32 percent increase of the Import and Export business suffice that preoccupation. Foreign Exchange operation is overloaded with the work load as lot of paper works has to be done by them. To open an LC on an average 20 vouchers has to be written which is very hectic to the people working there which could be done by one mouse click had it been under computer process. Besides the bank lacks the core banking software which is not only helpful but also must for the advancement of the bank. The core banking will very soon be installed, and then foreign exchange operation will be generating much profit as it earns different charges without involving any money.