{{Short description|Financial institution in Bangladesh}} {{Infobox organization | name = Union Capital Limited | formation = 1993 | image = | image_alt = | caption = | map = | abbreviation = UCL | type = | status = | purpose = | headquarters = Dhaka, Bangladesh | coordinates = <!-- Coordinates of location using a coordinates template --> | num_members = | language = Bengali | leader_title = | leader_name = | main_organ = | parent_organization = | affiliations = | budget = | website = {{URL|https://www.unicap-bd.com/}} | region_served = Bangladesh }}
'''Union Capital Limited''' is a major Non-bank financial institutions of Bangladesh based in Dhaka. It is listed on the Dhaka Stock Exchange and the Chittagong Stock Exchange.<ref>{{Cite web |date=2023-04-06 |title=Stocks turnover drops though key index rises |url=https://www.thedailystar.net/business/economy/stock/news/stocks-turnover-drops-though-key-index-rises-3289941 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref><ref>{{Cite web |title=CSE |url=https://www.cse.com.bd/company/companydetails/UNIONCAP |access-date=2024-09-14 |website=www.cse.com.bd}}</ref>
Union Capital Limited had 10.48 billion BDT losses in 2024.<ref>{{Cite web |date=2024-06-29 |title=Union Capital's accumulated loss reached Tk1,000cr in 2023 |url=https://www.tbsnews.net/economy/stocks/union-capitals-accumulated-loss-reached-tk1000cr-2023-887661 |access-date=2024-09-14 |website=The Business Standard |language=en}}</ref> Munshi Shafiul Haque, an independent director, is the chairman of Union Capital Limited.<ref>{{Cite web |title=Union Capital Limited |url=https://www.unicap-bd.com/bod/mr-munshi-shafiul-haque/ |access-date=2024-09-14 |website=www.unicap-bd.com |language=en-US}}</ref>
==History== Union Capital Limited was established in 1993 by purchasing the local branch of Peregrine Capital Limited (a subsidiary of Peregrine Investments Holdings).<ref>{{Cite web |title=Union Capital Limited |url=https://www.unicap-bd.com/company/about/#milestones |access-date=2024-09-14 |website=www.unicap-bd.com |language=en-US}}</ref> Enam Ahmed Chowdhury, former vice-president of the Islamic Development Bank, was the first chairman of Union Capital.<ref name=":7">{{Cite web |date=1998-02-04 |title=Local group to buy Peregrine's Bangladesh operations |url=https://www.thedailystar.net/news/local-group-to-buy-peregrines-bangladesh-operations |access-date=2024-09-11 |website=The Daily Star |language=en}}</ref> Nasir A Choudhury, managing director of Green Delta Insurance Company Limited and Delta Brac Housing Finance Corporation Limited, was a sponsor of Union Capital Limited.<ref>{{Cite web |date=2017-05-24 |title=Nasir A Choudhury, new chairman of DBH |url=https://www.thedailystar.net/business/nasir-choudhury-new-chairman-dbh-1409800 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
Union Capital Limited provided a 30 percent dividend in 2007.<ref>{{Cite web |date=2008-06-30 |title=Union Capital okays 30pc stock dividend |url=https://www.thedailystar.net/news-detail-43461 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> It was part of a syndicated loan of nearly 1 billion BDT to Creative Paper Mills Limited owned by Hasanul Morshed.<ref>{{Cite web |date=2007-09-02 |title=Tk 98.9cr multi credit arranged for Creative Paper Mills |url=https://www.thedailystar.net/news-detail-2242 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> Amir Humayun Mahmud Chowdhury, brother of Bangladesh Nationalist Party politician Amir Khasru Mahmud Chowdhury, was chairman of Union Capital Limited.<ref>{{Cite web |last=Roy |first=Pinaki |last2=Islam |first2=Shahidul |date=18 June 2007 |title=Big shots levelled vast terrain of Ctg hills |url=https://archive.thedailystar.net/2007/06/18/d7061801033.htm |access-date=2024-09-14 |website=The Daily Star}}</ref>
Chowdhury Tanzim Karim was appointed chairman of Union Capital Limited in July 2012.<ref>{{Cite web |date=2012-07-10 |title=Union Capital picks new chairman |url=https://www.thedailystar.net/news-detail-241493 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> M Khairul Hossain, chairman of Bangladesh Securities and Exchange Commission, warned Union Capital Limited not providing complete information on Padma Islami Life Limited for which it was the issue manager.<ref>{{Cite web |date=2012-04-04 |title=SEC okays modified rules for merchant banks |url=https://www.thedailystar.net/news-detail-228955 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
Mahmudul Alam, former additional managing director of GSP Finance Company, was appointed managing director of Union Capital Limited in January 2016.<ref>{{Cite web |date=2016-01-14 |title=New MD for Union Capital |url=https://www.thedailystar.net/business/new-md-union-capital-201625 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> It received an award from Institute of Chartered Accountants of Bangladesh for its 2016 annual report.<ref>{{Cite web |date=2017-11-26 |title=ICAB awards 28 for best presented annual reports |url=https://www.thedailystar.net/business/icab-awards-28-best-presented-annual-reports-1496482 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
Union Capital Limited tried to auction a property of Computer Source in Pink City Xenovalley after it failed to repay a nearly 300 million BDT loan in 2017.<ref>{{Cite web |last=Islam |first=Muhammad Zahidul |date=2017-09-25 |title=Computer Source's property put up for sale |url=https://www.thedailystar.net/business/computer-sources-property-put-sale-1467229 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
Union Capital Limited has been struggling financially since 2018 and has been having difficulties returning money to depositors including one billion BDT deposit of British American Tobacco Bangladesh.<ref name=":0">{{Cite web |date=2024-02-14 |title=Union Capital to merge with Prime Bank |url=https://www.thedailystar.net/business/news/union-capital-merge-prime-bank-3543446 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> Bangladesh Bank placed a cap on loans of 10 million BDT.<ref name=":1">{{Cite web |last=Uddin |first=AKM Zamir |date=2021-11-04 |title=Union Capital barred from giving loans over Tk 1cr |url=https://www.thedailystar.net/business/organisation-news/news/union-capital-barred-giving-loans-over-tk-1cr-2221726 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> Palli Daridro Bimochon Foundation, Marie Stopes Bangladesh, and Confidence Infrastructure also could not access their deposits with the institution.<ref name=":1" /> Mostafa Group has not returned its loan from Union Capital Limited and other banks and its chairman Hefazatur Rahman was arrested.<ref>{{Cite web |last=Suman |first=Mohammad |last2=Barua |first2=Dwaipayan |date=2019-07-22 |title=Mostafa Group eyes a comeback |url=https://www.thedailystar.net/business/news/mostafa-group-eyes-comeback-1775062 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
In October 2019, Chowdhury Manzoor Liaquat was appointed managing director of Union Capital Limited.<ref>{{Cite web |date=2019-10-16 |title=New MD for Union Capital |url=https://www.thedailystar.net/business/news/new-md-union-capital-1814368 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> Bangladesh Bank would block Islamic Finance and Investment Limited from hiring Chowdhury Manzoor Liaquat as its managing director in 2021.<ref>{{Cite web |last=Uddin |first=AKM Zamir |date=2021-12-23 |title=Union Capital MD barred from joining Islamic Finance |url=https://www.thedailystar.net/business/economy/banks/news/union-capital-md-barred-joining-islamic-finance-2923776 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
The Anti-Corruption Commission sued officials of Bangladesh Infrastructure Finance Fund Limited for depositing funds in two banks and 12 financial institutions, including Union Capital Limited, without proper authorization.<ref name=":2">{{Cite web |date=2020-10-21 |title=Misappropriating Tk 585cr: ACC sues BIFFL ex-CEO, official |url=https://www.thedailystar.net/frontpage/news/misappropriating-tk-585cr-acc-sues-biffl-ex-ceo-official-1981481 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> The banks and institutions were underperforming and unable to return the deposits.<ref name=":2" /> In August 2022, GM Khurshid Alam was appointed chairman of Union Capital.<ref>{{Cite news |date=25 August 2022 |title=Union Capital Limited gets new chairman |url=https://www.dhakatribune.com/business/276010/union-capital-limited-gets-new-chairman |access-date=14 September 2024 |work=Dhaka Tribune}}</ref>
By September 2023, Union Capital Limited given 12 billion BDT loans out of which 5.45 billion was defaulted on.<ref name=":0" /> Its stock prices went under the face value.<ref>{{Cite web |last=Habib |first=Ahsan |date=2023-09-04 |title=Investors barely show interest in bank, NBFI stocks |url=https://www.thedailystar.net/business/economy/news/investors-barely-show-interest-bank-nbfi-stocks-3410436 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> It did not provide financial statements for the year violating rules for listed companies.<ref>{{Cite web |last=Habib |first=Ahsan |date=2023-08-23 |title=10 listed NBFIs leave investors in dark |url=https://www.thedailystar.net/business/economy/news/10-listed-nbfis-leave-investors-dark-3400701 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> According to The Daily Star 16 billion BDT of funds of state owned Agrani Bank, Janata Bank, Rupali Bank, and Sonali Bank were stuck in Bangladesh Industrial Finance Company Limited, FAS Finance and Investment Limited, First Finance Limited, International Leasing and Financial Services Limited, People's Leasing and Financial Services Limited, Premier Leasing and Finance Limited, Prime Finance, Fareast Finance and Investment Limited, and Union Capital Limited which were suffering from losses.<ref>{{Cite web |last=Habib |first=Ahsan |date=2023-11-15 |title=State banks’ Tk 1,600cr stuck in ailing NBFIs |url=https://www.thedailystar.net/business/news/state-banks-tk-1600cr-stuck-ailing-nbfis-3469746 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref><ref>{{Cite web |last=Habib |first=Ahsan |date=2023-11-24 |title=Most NBFIs incurred losses in July–September |url=https://www.thedailystar.net/business/news/most-nbfis-incurred-losses-july-september-3477246 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
In February 2024, Bangladesh Bank approved the merger of Union Capital Limited with Prime Bank.<ref name=":0" /> Azam J Chowdhury, former chairman of Prime Bank, took the initiative for the merger.<ref name=":0" /> It then asked for the merger plans from the two companies.<ref>{{Cite web |date=2024-02-15 |title=BB asks Union Capital, Prime Bank for detailed merger plan |url=https://www.thedailystar.net/business/economy/news/bb-asks-union-capital-prime-bank-detailed-merger-plan-3543866 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> It did not have a managing director.<ref>{{Cite web |last=Hasan |first=Md Mehedi |date=2024-02-22 |title=A third of NBFIs running without MDs |url=https://www.thedailystar.net/business/economy/news/third-nbfis-running-without-mds-3549566 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref>
== Subsidiary ==
* Unicap Securities Limited<ref>{{Cite web |date=2014-11-06 |title=Unicap gets new CEO |url=https://www.thedailystar.net/unicap-gets-new-ceo-48931 |access-date=2024-09-14 |website=The Daily Star |language=en}}</ref> * UNICAP Investments Limited<ref>{{Cite web |title=UniCap Investments Limited |url=https://www.unicap-investments.com/ |access-date=2024-09-14 |website=www.unicap-investments.com}}</ref>
== References == {{reflist}}
Category:Organisations based in Dhaka Category:Bangladeshi companies established in 1993 Category:Financial services companies of Bangladesh Category:Government-owned companies of Bangladesh Category:Companies listed on the Dhaka Stock Exchange Category:Companies listed on the Chittagong Stock Exchange