MCB Bank

MCB Bank Limited is a Pakistani multinational commercial bank which is based in Lahore, Punjab, Pakistan. The Malaysian bank Maybank and the Pakistani conglomerate Nishat Group possess the majority of the shares. In order to explore foreign markets, the bank's management shortened its name from Muslim Commercial Bank Limited to MCB Bank Limited in 2005. However, they encountered opposition to obtaining a license, particularly from Western countries, because of the word "Muslim.

History

MCB Bank was incorporated as Muslim Commercial Bank in July 1947. Director members from prominent Muslim commercial and industrial families, such as the Ispahani, Adamjee, Dada, Arag, and Amin Jute families, joined the founders, Adamjee Haji Dawood and M. A. Ispahani.. Khwaja Shahabuddin, who served in Bengal's first Muslim cabinet from 1937 to 1940, was also one of the founding members.

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.

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.

In 2008, Maybank (Malaysia) declared that it had acquired somewhat more than 94 million common shares from the Nishat Group, acquiring 20% of the stock in MCB Bank Limited. The total value of this deal was MYR 2.17 billion, or US$686 million. Maybank paid 470 Pakistani rupees for each common share of MCB..

The network of Islamic banks had expanded to 34 branches by 2014. In light of the potential of the Islamic banking industry, the bank established a separate but fully owned subsidiary bank in 2015, which it called "MCB Islamic Bank Limited" or simply "MIB.