MCB Bank#Islamic Banking Business

MCB Bank was incorporated as Muslim Commercial Bank in July 1947, shortly before the Partition of India, under the encouragement of Muhammad Ali Jinnah.{{Cite journal|url=http://www.jstor.org/stable/1152902|title=Pakistan's Big Businessmen: Muslim Separatism, Entrepreneurship, and Partial Modernization|author=Papanek, Hanna|year=1972|journal=Economic Development and Cultural Change|volume=21|issue=1|pages=1–32|doi=10.1086/450605 |jstor=1152902 |url-access=subscription}} 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. Among the founding members was also Khwaja Shahabuddin, a former member of the first Muslim ministry in Bengal from 1937 to 1940.

In 1964, MCB became part of Adamjee Group.

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.{{Cite web|url=https://www.psx.com.pk/psx/themes/psx/uploads/Delisted-Report.pdf|title=De-listed companies}}

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.{{Cite journal|url=http://www.jstor.org/stable/25825145|title=Historical Development of Liberalization Since 1947 in Pakistan|author1=SAJID, MUSHTAQ A.|author2=CHAUDHARY, A. R.|year=1996|journal=Pakistan Economic and Social Review|volume=34|issue=2|pages=179–192|jstor=25825145 }}{{Cite web|url=https://www.sbp.org.pk/about/speech/financial_sector/2004/policy_considerations.pdf|title=Policy Considerations before Bank Privatization Country Experience |first=Ishrat |last=Husain}} 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).{{Cite web|url=https://privatisation.gov.pk/Detail/NTU0ZjE1NGQtNmYzNC00NWZjLWIxZTEtYWMzMzliYzFhNzk4|title=Ministry of Privatisation - Privatisation Commission|date=March 28, 2023|archive-url=https://web.archive.org/web/20230328081238/https://privatisation.gov.pk/Detail/NTU0ZjE1NGQtNmYzNC00NWZjLWIxZTEtYWMzMzliYzFhNzk4 |archive-date=2023-03-28 }}

The privatization process continued on February 19, 1992, with the public offering of an additional 25 percent of MCB's shares. Following the divestment of a 51 percent stake, MCB was no longer subject to the Banks (Nationalization) Act, 1974. 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.

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.{{cite web|url=https://www.mcb.com.pk/assets/documents/financial_statements/MCB%20Annual%20Report%202005.pdf|title=Annual Report 2005|website=Mcb.com.pk|access-date=28 June 2019}}

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.{{Cite web|url=https://www.maybank2u.com.my/home/m2u/common/login.do|title=Maybank2u|website=Maybank2u.com.my|access-date=2019-06-28}} 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.{{Cite web|url=https://fp.brecorder.com/2005/03/20050303203065/|title=MCB to expand Islamic banking services|date=2005-03-03|website=Business Recorder|language=en-US|access-date=2019-06-28}} By 2014 the Islamic Banking network had grown to 34 branches.{{cite web|url=https://www.mcb.com.pk/assets/documents/Annual-2014.pdf|title=Annual Report 2014|website=Mcb.com.pk|access-date=28 June 2019}} This was in addition to and separate from bank's 1,100 conventional banking branches. In 2015, given the potential of Islamic Banking business, the bank proceeded to establish an independent but wholly owned subsidiary bank{{Cite web|url=https://www.thenews.com.pk/print/62629-mcb-sets-up-islamic-banking-subsidiary|title=MCB sets up Islamic banking subsidiary|date=2015-09-15|website=Thenews.com.pk|language=en|access-date=2019-06-28}}{{cite web|url=https://www.thenews.com.pk/print/62629-mcb-sets-up-islamic-banking-subsidiary|title=MCB sets up Islamic banking subsidiary|date=15 September 2015|website=Thenews.com.pk|access-date=28 June 2019}} named MCB Islamic Bank Limited, referred to as MIB in short.{{Cite web|url=http://www.dawn.com/news/1210886|title=MCB Bank’s foray into Islamic banking|first=Ali Raza|last=Mehdi|date=October 5, 2015|website=Dawn}}

MCB Tower, situated in Karachi, Pakistan is the former headquarters of MCB Bank Limited. The tower includes 29 floors and 3 basement floors.{{Cite web|last=Reporter|first=The Newspaper's Staff|date=2012-02-21|title=Pakistan's tallest building completed|url=https://www.dawn.com/2012/02/21/pakistans-tallest-building-completed/|access-date=2020-07-12|website=DAWN.COM|language=en}}

{{main|MCB Islamic Bank}}

MCB Islamic Bank (MIB) is a subsidiary of MCB Bank. MIB was established as a demerger from MCB and NIB Bank.{{cite web|title=MCB Bank demerges Islamic banking group against Rs7.946bln|url=https://www.thenews.com.pk/print/82274-MCB-Bank-demerges-Islamic-banking-group-against-Rs7946bln|website=www.thenews.com.pk}}

MNET Services (Private) Limited amalgamated with and into MCB Bank, the effective date of amalgamation was April 30, 2019.{{Cite web|date=2019-11-09|title=MCB Bank winds up another Subsidiary|url=https://www.researchsnipers.com/mcb-bank-winds-up-another-subsidiary/|access-date=2021-01-25|website=Research Snipers|language=en-US}}

• MCB Islamic Bank Limited{{Cite web|date=2019-11-09|title=MCB Bank Subsidiary Companies|url=https://www.mcb.com.pk/about-mcb/profile-of-bank|access-date=2021-01-25|website=Research Snipers|language=en-US}}
• MCB Funds{{Cite web|date=2019-11-09|title=MCB Arif Habib Savings & Investments Limited|url=http://www.mcbah.com/|access-date=2021-01-25|website=Research Snipers|language=en-US}}
• MCB BOKT Non-Bank Credit Organisation {{Cite web|date=2019-11-09|title=MCB Non-Bank Credit Organisation" Closed Joint Stock Company" |url=https://mcb.az/|access-date=2021-01-25|website=Research Snipers|language=en-US}}

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{{Reflist}}

• [https://web.archive.org/web/20090814143116/http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/09-mcb-signs-share-purchase-agreement-with-rbs-pakistan--szh-05 Dawn News]
• [http://www.mcb.com.pk/ Muslim Commercial Bank]
• [https://web.archive.org/web/20090814143116/http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/09-mcb-signs-share-purchase-agreement-with-rbs-pakistan--szh-05 Dawn News]

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