After the partition of Bengal in 1947, after the division of Bengal Provincial Co-operative Bank in Calcutta established in 1922 with the government initiative to provide loans to cooperative societies and peasantry in undivided Bengal, the agro-debt flow at East Pakistan was stopped temporarily after the cooperative institution and peasantry. To overcome this problem, in late 1947, a meeting of co-operatives of East Pakistan was held in Dhaka under the chairmanship of Honorable Provincial Cooperative Minister Syed Mohammad Afzal at the invitation of Mr. Iqbal Atar Ali Ali of East Bengal, Registrar of Co-Operative Societies.
The meeting was decided to establish a provincial cooperative bank in East Pakistan. In the context of his active participation in the active participation of some entrepreneurs, on 31-03-1948, after getting registered with the East Pakistan Provincial Cooperative Bank Ltd., its activities started from 01-04-1948 in a rented house in Johnson Road adjacent to Victoria Park in Sadarghat area. Later on 25-11-1949, the building owned by the Imperial Bank of India, located at 3/10 public road in the same area, was fully purchased by buying at 1.38 lakh taka. In 1959, nine-storied existing buildings were constructed in 9-D, 8.76 katha land in Motijheel, taking permanent lease for 99 years from 38938.00 to East Pakistan government. The registration number of the establishment bank was 3, dated 31-03-1948.