MCB Bank

Last updated
MCB Bank
Company type Public
PSX:  MCB
KSE 100 component
KSE 30 component
Industry Banking
FoundedJuly 9, 1947;78 years ago (1947-07-09)
Founder Adamjee Haji Dawood
Headquarters
MCB Building, Lahore, 54660
,
Pakistan
Number of locations
1,403 [1]  (2024)
Key people
ProductsLoans, credit cards, Debit cards, savings, consumer banking, Home Remittance etc.
RevenueIncrease2.svgRs. 186.52 billion (US$650 million) [1]  (2024)
Decrease2.svgRs. 118.42 billion (US$410 million) [1]  (2024)
Decrease2.svgRs. 57.61 billion (US$200 million) [1]  (2024)
Total assets Increase2.svgRs. 2.70 trillion (US$9.4 billion) [1]  (2024)
Total equity Increase2.svgRs. 227.20 billion (US$790 million) [1]  (2024)
Owner Maybank (18.78%)
Nishat Mills (8.02%)
Adamjee Insurance (5%)
Security General Insurance (5%)
Number of employees
14,289 [1]  (2024)
Parent Maybank
Nishat Group
Subsidiaries MCB Islamic Bank
MCB Non-Bank Credit Organization Closed Joint Stock Company
MCB Investment Management Limited (81.42%)
Website mcb.com.pk

MCB Bank Limited is a Pakistani commercial bank which is based in Lahore, Punjab. It is majority owned by a group of companies affiliated with Nishat Group and Malaysian bank Maybank.

Contents

MCB Bank is listed on the Pakistan Stock Exchange.

History

MCB Bank was incorporated as Muslim Commercial Bank in July 1947, shortly before the Partition of India, under the encouragement of Muhammad Ali Jinnah. [2] The founders, Adamjee Haji Dawood and M. A. Ispahani, were joined by directors from major Muslim commercial and industrial families, including the Ispahani, Adamjee, Dada, Arag, and Amin Jute families. [2] Among the founding members was also Khwaja Shahabuddin, a former member of the first Muslim ministry in Bengal from 1937 to 1940. [2]

In 1964, MCB became part of Adamjee Group. [2]

MCB was nationalised in 1974 during the government of Zulfikar Ali Bhutto. Subsequently, its shares were de-listed from the Karachi Stock Exchange after acquisition by the government of Pakistan. [3]

On April 6, 1991, the government sold 26 percent of MCB's shares to the National Group at PKR 56 per share, totaling PKR 838.8 million. [4] [5] The transaction was conducted under an "as is where is" arrangement, and it resulted in the Federal Government suspending most provisions of the Banks (Nationalization) Act, 1974 for six months, with the exception of section 5(6)(a). [5] [6]

The privatization process continued on February 19, 1992, with the public offering of an additional 25 percent of MCB's shares. [5] Following the divestment of a 51 percent stake, MCB was no longer subject to the Banks (Nationalization) Act, 1974. [5] On December 31, 1992, the National Group acquired another 24 percent of MCB's shares at Rs56.15 per share, increasing their total holding to 50 percent. [5]

In 2005, the management of the bank abbreviated its name from Muslim Commercial Bank Limited to MCB Bank Limited to explore international markets; they were facing resistance due to the word Muslim especially from Western Countries to avail licence. [7]

In 2008, Maybank (Malaysia) announced the acquisition of 20% of the stake in MCB Bank Limited's equity by purchasing a little more than 94 million ordinary shares from the Nishat Group. This transaction amounted to MYR 2.17 billion (US$686 million) in value. The price paid by the Maybank was Pak. Rupees 470 per ordinary share of MCB. [8] In 2008, the head office of MCB was shifted from MCB Tower, Karachi to Lahore in a newly constructed building, namely MCB House located at Sharea Ghous-ul-Azam, commonly known as Jail Road.

In 2000, MCB established its Islamic Banking Business Group and opened its first branch in 2003. [9] By 2014 the Islamic Banking network had grown to 34 branches. [10] This was in addition to and separate from bank's 1,100 conventional banking branches. [10] In 2015, given the potential of Islamic Banking business, the bank proceeded to establish an independent but wholly owned subsidiary bank [11] [12] named MCB Islamic Bank Limited, referred to as MIB in short. [13]

Headquarters

MCB Tower, situated in Karachi, Pakistan is the former headquarters of MCB Bank Limited. The tower includes 29 floors and 3 basement floors. [14] The bank is now headquartered in the MCB Building on Jail Road in Lahore. [15]

MCB Islamic Bank

MCB Islamic Bank (MIB) is a subsidiary of MCB Bank. MIB was established as a demerger from MCB and NIB Bank. [16] [17]

MNET Services Amalgamation with and into MCB Bank

MNET Services (Private) Limited amalgamated with and into MCB Bank, the effective date of amalgamation was April 30, 2019. [18]

Subsidiaries

See also

References

  1. 1 2 3 4 5 6 7 "MCB Annual Report 2024" (PDF). MCB.com.pk. Retrieved 6 October 2025.
  2. 1 2 3 4 Papanek, Hanna (1972). "Pakistan's Big Businessmen: Muslim Separatism, Entrepreneurship, and Partial Modernization" . Economic Development and Cultural Change. 21 (1): 1–32. doi:10.1086/450605. JSTOR   1152902.
  3. ↑ "De-listed companies" (PDF).
  4. ↑ SAJID, MUSHTAQ A.; CHAUDHARY, A. R. (1996). "Historical Development of Liberalization Since 1947 in Pakistan". Pakistan Economic and Social Review. 34 (2): 179–192. JSTOR   25825145.
  5. 1 2 3 4 5 Husain, Ishrat. "Policy Considerations before Bank Privatization Country Experience" (PDF).
  6. ↑ "Ministry of Privatisation - Privatisation Commission". March 28, 2023. Archived from the original on 2023-03-28.
  7. ↑ "Annual Report 2005" (PDF). Mcb.com.pk. Retrieved 28 June 2019.
  8. ↑ "Maybank2u". Maybank2u.com.my. Retrieved 2019-06-28.
  9. ↑ "MCB to expand Islamic banking services". Business Recorder. 2005-03-03. Retrieved 2019-06-28.
  10. 1 2 "Annual Report 2014" (PDF). Mcb.com.pk. Retrieved 28 June 2019.
  11. ↑ "MCB sets up Islamic banking subsidiary". Thenews.com.pk. 2015-09-15. Retrieved 2019-06-28.
  12. ↑ "MCB sets up Islamic banking subsidiary". Thenews.com.pk. 15 September 2015. Retrieved 28 June 2019.
  13. ↑ Mehdi, Ali Raza (October 5, 2015). "MCB Bank's foray into Islamic banking". Dawn .
  14. ↑ Reporter, The Newspaper's Staff (2012-02-21). "Pakistan's tallest building completed". DAWN.COM. Retrieved 2020-07-12.
  15. ↑ "MCB Bank Pakistan". www.mcb.com.pk. Retrieved 2025-10-05.
  16. ↑ "MCB Bank demerges Islamic banking group against Rs7.946bln". www.thenews.com.pk.
  17. ↑ "Demerger from MCB Bank 2024 – Welcome to MCB Islamic Bank Website" . Retrieved 2025-10-05.
  18. ↑ "MCB Bank winds up another Subsidiary". Research Snipers. 2019-11-09. Retrieved 2021-01-25.
  19. ↑ "MCB Bank Subsidiary Companies". Research Snipers. 2019-11-09. Retrieved 2021-01-25.
  20. ↑ "MCB Arif Habib Savings & Investments Limited". Research Snipers. 2019-11-09. Retrieved 2021-01-25.
  21. ↑ "MCB Non-Bank Credit Organisation" Closed Joint Stock Company"". Research Snipers. 2019-11-09. Retrieved 2021-01-25.
  22. ↑ Desk, News (2024-03-27). "State Bank grants licences to two new exchange companies". Profit by Pakistan Today. Retrieved 2025-10-05.{{cite web}}: |last= has generic name (help)
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