Pubali Bank Limited
A Bangladesh-based commercial bank that originated as Eastern Mercantile Bank and later became a privately owned institution.
Last updated August 24, 2026
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Overview
Pubali Bank Limited, also referred to as Pubali Bank PLC, is a Bangladeshi commercial bank with roots reaching back to 1959. It was established in what was then East Pakistan as Eastern Mercantile Bank Limited by Bengali businesspeople under the Bank Companies Act 1913. Following Bangladesh’s independence in 1971, the institution was taken into state ownership under the country’s bank-nationalisation framework and renamed Pubali Bank. Its subsequent denationalisation in 1983 marked the bank’s return to the private sector and established the basic institutional identity under which it operates today. The bank’s business is centred on commercial banking in Bangladesh. Its activities include deposit taking, lending, trade-related finance, corporate and institutional banking, retail banking, remittance-related services and other conventional banking products. Public descriptions of the institution emphasise its extensive branch presence and describe it as having more branches than any other autonomous bank in Bangladesh. This network has been an important part of its market position, supporting customer access beyond the country’s principal commercial centres and giving the bank a broad domestic operating footprint. Pubali Bank has also participated in larger financial transactions and capital-market activity. In 2007 it entered into a loan agreement with Uttara Finance and Investments Limited. In 2021, Bangladesh’s securities regulator approved a perpetual-bond issue valued at Tk 5 billion, and the bank signed a US$52 million loan agreement with Bank Muscat. The same year, it was reported to have received US$50 million from British International Investment. These transactions indicate a strategy that combines conventional deposit-and-loan banking with wholesale funding, capital instruments and international financial relationships. The available reference material does not establish the precise use of each facility or provide a complete current financial profile, so those details are not inferred here. The bank’s history has included both institutional expansion and governance or control challenges. In 2014, Bangladesh’s High Court Division removed eight board members, including chairman Hafiz Ahmed Mazumder, after a shareholder petition concerning the minimum shareholding requirements for directors. In 2016, money was reported missing from a Chittagong branch, leading to arrests and later imprisonment of employees in connection with embezzlement. These incidents form part of the institution’s public record but do not by themselves define its entire business or current operating condition. Pubali Bank has periodically changed its board and senior leadership. Azizul Huq was elected chairman in 2019, while later reference material identifies Monzurur Rahman as chairman. Safiul Alam Khan Chowdhury was appointed managing director in 2016 according to the cited account. The bank has also engaged in community activity, including a donation to Bishwo Shahitto Kendro in 2022. Overall, Pubali Bank is best understood as a long-established, domestically focused Bangladeshi commercial-bank brand whose distinguishing characteristics are its historical transition from state ownership to private ownership, broad branch network and participation in both local and cross-border financing.
History
Pubali Bank began in 1959 as Eastern Mercantile Bank Limited in East Pakistan. Bengali businesspeople established the institution under the Bank Companies Act 1913, creating a locally founded commercial bank before the emergence of Bangladesh as an independent state. After Bangladesh became independent in 1971, the new government nationalised the bank under its bank-nationalisation ordinance and changed its name to Pubali Bank. The institution remained under state ownership until 1983, when it was denationalised and returned to the private sector. It was then known as Pubali Bank Limited, the name associated with its modern private-commercial-bank identity. This transition was a significant turning point: rather than operating as a state bank, Pubali became part of Bangladesh’s private banking system while retaining the historical network and customer relationships built during its earlier phases. The bank expanded its role through conventional commercial banking, including deposits, lending, trade finance, corporate services, remittances and other banking activities. Its public profile has particularly highlighted its branch network, which has been described as larger than that of any other autonomous bank in Bangladesh. That geographic reach has supported a positioning based on domestic accessibility and broad coverage rather than a narrow specialist niche. In 2007, Pubali Bank signed a Tk 100 million loan agreement with Uttara Finance and Investments Limited. A later account reported that in 2009 the bank held reserves of Tk 88.89 billion and that its non-performing-loan ratio had declined from 18.4 percent in 2004 to 2.96 percent. These figures are historical and are not treated as current financial indicators. Governance became a prominent issue in 2014, when Bangladesh’s High Court Division removed eight board members, including chairman Hafiz Ahmed Mazumder, after a shareholder challenged their compliance with minimum shareholding requirements. In 2016, a Chittagong branch was associated with missing funds. Five employees were arrested, and three employees were later sentenced to imprisonment in connection with the embezzlement of Tk 128.6 million. The same year, Safiul Alam Khan Chowdhury was appointed managing director, while Habibur Rahman was appointed chairman. Plans were also announced by That’s It Fashions Limited, a subsidiary of Ha-Meem Group, to purchase 11 million Pubali Bank shares. Azizul Huq was elected chairman in 2019. In 2021, the Bangladesh Securities and Exchange Commission approved Tk 5 billion in perpetual bonds issued by the bank. Pubali also signed a US$52 million loan agreement with Bank Muscat and was reported to have received US$50 million from British International Investment. These transactions broadened the bank’s funding and financial-institution relationships beyond ordinary domestic deposits. The bank continued its community-facing activity in 2022 with a Tk 1 million donation to Bishwo Shahitto Kendro. The available reference material identifies Monzurur Rahman as the present chairman, but does not provide a complete current board or executive roster. Pubali Bank therefore remains a long-established Bangladeshi commercial-bank brand whose history combines local private origins, post-independence nationalisation, later denationalisation, branch-network expansion, capital raising and periodic governance and operational controversies.
- 2022
Donation to Bishwo Shahitto Kendro
[1]Pubali Bank donates Tk 1 million to Bishwo Shahitto Kendro.
- 2021
Perpetual bonds and international financing
[1]The securities regulator approves Tk 5 billion in perpetual bonds, while the bank signs a Bank Muscat loan agreement and receives reported financing from British International Investment.
- 2019
Azizul Huq elected chairman
[1]Azizul Huq is elected chairman of Pubali Bank.
- 2016
Branch embezzlement case and executive appointments
[1]A Chittagong branch money-loss case leads to arrests and convictions, while the bank appoints Safiul Alam Khan Chowdhury as managing director and Habibur Rahman as chairman.
- 2014
Board members removed by High Court
[1]The High Court Division removes eight board members after a shareholder petition concerning minimum director shareholding requirements.
- 2007
Loan agreement with Uttara Finance
[1]Pubali Bank signs a Tk 100 million loan agreement with Uttara Finance and Investments Limited.
- 1983
Denationalisation and return to private banking
[1]The bank is denationalised and returns to the private sector as Pubali Bank Limited.
- 1971
Bank is nationalised and renamed
[1]Following Bangladesh’s independence, the institution is brought under state ownership and renamed Pubali Bank.
- 1959
Eastern Mercantile Bank is established
[1]Bengali businesspeople establish Eastern Mercantile Bank Limited in East Pakistan under the Bank Companies Act 1913.
Products and positioning
A long-established Bangladeshi commercial bank positioned around domestic reach, broad branch access and full-service banking for retail, corporate and institutional customers.
Retail and commercial banking
Deposit accounts
The bank’s core deposit business serves individuals, businesses and institutions through conventional account-based banking. Deposits provide the funding base for lending and other commercial activities. Specific account names, rates and eligibility terms are not detailed in the supplied references.
Lending
Commercial and corporate lending
Pubali Bank provides lending and related financial services to commercial customers. Its documented financing activity includes a loan agreement with Uttara Finance and Investments Limited and broader participation in corporate and institutional banking. The supplied sources do not specify a complete loan-product catalogue.
Business banking
Trade finance
Trade-finance services are part of the bank’s conventional commercial-banking scope, supporting business customers involved in domestic and international commerce. The available references do not provide detailed information on particular instruments, limits or sector specialisations.
International banking
Remittance and foreign-exchange services
The bank operates within Bangladesh’s banking and remittance environment and maintains relationships with international financial institutions. The supplied material does not identify specific remittance partners, channels or named foreign-exchange products.
Controversies
Brand decisions
2021
Perpetual bond issuance approvedOtherBackground
Pubali Bank pursued additional capital-market funding within Bangladesh’s regulated banking system.
Action taken
The Bangladesh Securities and Exchange Commission approved perpetual bonds with a total value of Tk 5 billion.
Aftermath
The approval gave the bank access to a perpetual debt instrument, although the supplied material does not state the issue’s subsequent performance or use of proceeds.
Approved perpetual-bond value. Tk 5 billion approved (2021)
1983
Return to private ownershipStrategyBackground
The bank had operated under state ownership after Bangladesh’s independence and nationalisation of the banking sector.
Action taken
Pubali Bank was denationalised and renamed Pubali Bank Limited as it returned to the private sector.
Aftermath
The change established the bank’s modern identity as a private commercial bank in Bangladesh.
Sources2 sources
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