Bank Pertanian Malaysia (BPM) was established in 1969 to finance irrigation projects to accommodate double cropping for paddy planting in Kedah and Perlis, known as the Muda Agricultural Development Authority (MADA) area.

Subsequent to its establishment to provide credit assistance to farmers, BPM opened two branches, the first in Alor Setar, Kedah in April 1970 and the second in Kota Bharu, Kelantan. By 1980, BPM had emerged as the largest credit service provider to the rural agriculture sector.

Upon the passing of the BPMB Bill on 19 December 2007, BPM was corporatised under the Companies Act 1965 and commercially known as Agrobank, a Government owned bank under the purview of the Minister of Finance Incorporated. Focusing on agriculture, the Bank’s financing of the agriculture sector is guided by policies determined by the Ministry of Agriculture and Agro-based Industries.

Effective 1 July 2015, Agrobank officially became a full-fledged Islamic bank. The transition to the Islamic banking system is seen as a positive development, based on the rapid growth of the Islamic banking sector in the country. With the transition, Agrobank is now able to provide Islamic banking products and services to fulfill the requirements of the halal food industry. This will in turn further increase investor and consumer confidence in the halal status of Malaysian halal products, given that these are backed by Shariah-compliant business transactions.