MCB Bank has lost all six appeals against orders requiring it to compensate customers affected by an alleged fraud at its Haji Pura branch in Sialkot.
The Banking Mohtasib Pakistan had ordered the bank to pay six customers a combined Rs 21.67 million along with applicable profit. The bank challenged the decisions, but the President’s Secretariat rejected all six appeals between July 30 and August 25, 2026.
The cases centre on an alleged fraud involving the branch’s former manager, Saeed Arif. According to the bank’s own internal investigation, the manager allegedly created fake term deposit arrangements and used customers’ cheques to withdraw their money. The inquiry also found other staff members involved in some transactions.
One customer reportedly lost around Rs 9 million after selling her house. Other customers reported losses ranging from Rs 1.41 million to Rs 3.6 million.
MCB argued that the customers had dealt with the manager personally and that the bank should not be held responsible. The Banking Mohtasib rejected that position and held the bank responsible for actions carried out by its employees.
The Federal Investigation Agency registered a case in March 2025 and arrested Arif. He has not been convicted, and the allegations remain subject to legal proceedings.
