Dhaka, Oct. 17 -- United Commercial Bank's profit plunged 68 per cent year-on-year to Tk 320 million in the third quarter to September this year as provision on default loans escalated.

Bad loans that the bank had tucked away until the political changeover in August last year and the subsequent restructuring of the bank board had to be disclosed in regulatory actions to discipline the financial sector. That led to provisions soaring on loans and advances by 29 per cent year-on-year to Tk 4.75 billion in the July-September quarter this year.

The previous board was heavily influenced by the family of Awami League lawmaker and former land minister Saifuzzaman Chowdhury.

As the previous government fell, the central bank under new leadershi...