Union Bank PLC reached the brink of bankruptcy due to the limitless corruption of S Alam Group and its associates. Following a mass uprising, the Awami League government fell on August 5th. Three days later, an interim government led by Dr. Muhammad Yunus assumed responsibility for running the country. Subsequently, on August 13th, distinguished economist Ahsan H. Mansur was appointed as the Governor of Bangladesh Bank. Following this, Bangladesh Bank dissolved the boards of directors of 10 banks and appointed new ones. Mr. Md. Humayun Kabir, a former Executive Director of Bangladesh Bank, is now the Managing Director (MD) and CEO of the current board of Union Bank. In his long 37-year career, he has served as the Secretary to the Bangladesh Bank Board of Directors and held responsibilities in numerous government and private banks.

Recently, he spoke to Dhaka Watch about the overall situation of Union Bank. The interview was conducted by Dhaka Watch's Staff Reporter, Farid Uddin Shrabon.

Dhaka Watch: What is the current state of Union Bank, and what plans have been adopted for its turnaround?

Md. Humayun Kabir: The bank's Managing Director and CEO, Md. Humayun Kabir, stated, "Union Bank will make a full recovery by the upcoming December. The current board is working towards that goal. People's money must be returned to the people. We have embarked on this mission with this motive. Recovery is possible from some ongoing projects, and we are highly focused on recovering those funds. Alongside increasing deposits, we are putting more emphasis on loan recovery. We are working to protect depositors' money, safeguard the investments of general shareholders, bring stability to Union Bank, ensure the rule of law, and restore public confidence in the banking sector. On August 25th, Mu. Farid Uddin Ahmad was appointed as the bank's Chairman. He was previously the Managing Director of Islami Bank Bangladesh. Bangladesh Bank has formed a five-member board. Currently, the bank has good and reliable Board members, each acclaimed for playing crucial roles in their respective fields. The knowledgeable board is providing full support to the management authority through well-thought-out policies and efficient direction. There is complete transparency between the Board of Directors and the management authority. Such boards are needed everywhere in the financial sector. All necessary plans required to build a good bank have been undertaken."

Dhaka Watch: What steps are you taking to restore good governance in the bank?

Md. Humayun Kabir: All necessary steps have been taken to restore good governance in the bank. We are contacting all customers, without exception, whether they are good or bad clients. Good and bad, everyone is our customer. We are urging everyone to make regular payments on their investments. Many who were not paying regularly have given assurances that they will clear their dues. However, we are strict with those who will not repay. We will not hesitate to take all necessary legal actions against them.

Dhaka Watch: What are you doing to restore confidence in the bank?

Md. Humayun Kabir: The bank's Managing Director and CEO, Md. Humayun Kabir, said, "Alongside increasing cash deposits, greater emphasis is being placed on recovery, meaning recovery from overdue and defaulted investments. Furthermore, we will continue various activities to bring back customer confidence as before. Although there is a liquidity crisis, depositors' funds in this bank are completely safe and risk-free. Remittance customers are being given the highest priority. We are providing all kinds of banking services according to Shariah principles. 24-hour ATM service and real-time online banking are operational. The bank's 174 branches and sub-branches are able to complete daily transactions without assistance from the head office. It is satisfying that the familiar hustle and bustle has returned to Union Bank's branches and sub-branches with the presence of our valued customers."

Dhaka Watch: Do you need any support from the central bank at this moment?

Md. Humayun Kabir: Yes, we have requested Tk 2000 crore from Bangladesh Bank. However, we might not need this amount, but we wanted to keep it as a backup. If we receive support until December, we will be able to start repaying the central bank from January.

Dhaka Watch: How optimistic are you that the bank will be able to turn around?

Md. Humayun Kabir: I am 100