Sant Hirdaram Nagar (earlier known as Bairagarh) is one of the prime commercial suburbs of Bhopal. Even though, various commercial banks were operating in the locality, but a need was felt to have a bank which works on the basic principle of Co-Operative.

The Mahanagar Nagrik Sahkari Bank Ltd. (Mahanagar Bank) was established in the 1997 when the Reserve Bank of India granted banking license on 15th May 1997. The license was granted under the Banking Regulation Act 1949. Earlier the Bank was registered with Cooperative Department of Government of Madhya Pradesh on 27th January 1997.

The bank was envisaged to cater to the needs of lower- and middle-income groups, people of limited means, self-employed and micro enterprises. The objective was to encourage the savings habit and to create funds for providing financial aid facilities to deserving members.

The Mahanagar Bank created a solid foundation by expanding membership, resources, assets, and profits. The bank has grown from strength to strength since its inception and has grown in stature, progressed in its social and economic objectives. The bank has during its 25 years of journey been able to reframe itself as a vibrant, rapidly growing, service-oriented and trendsetting financial establishment with strong core values.