Bank Mellat

Bank Mellat is a major Iranian commercial bank headquartered in Tehran. Its Persian name, بانک ملت, is commonly translated as “Bank of the Nation” or “People’s Bank.” The institution was created in 1980, shortly after the Iranian Revolution, through the merger of ten private banks that had operated before 1979. The constituent institutions included Tehran, Dariush, Pars, Etebarat Taavoni & Tozie, Iran & Arab, Bein-al-melalie-Iran, Omran, Bimeh Iran, Tejarat Khareji Iran and Farhangian. The merger formed part of the post-revolutionary reorganization of Iran’s banking system and gave Bank Mellat a broad domestic commercial-banking base. The bank’s business is centered on conventional commercial banking in Iran. Its activities include serving retail customers, companies and public-sector or institutional clients, although the available reference material does not provide a complete current product catalogue. Bank Mellat is associated with deposit-taking, lending, payments, trade-related banking and other general banking services. It has also maintained or pursued international banking connections. Its London branch was ultimately combined with the London branch of Bank Tejarat to create Persia International Bank PLC, linking Bank Mellat’s overseas activity with another major Iranian bank. Bank Mellat expanded substantially after its formation and became one of Iran’s largest commercial banks. A reference description records paid capital of 33.5 billion Iranian rials at establishment and later describes capital of 13,100 billion rials, although the reference does not specify the date for the latter figure. The bank was also described as ranking among the world’s top 1,000 banks at the time covered by that source. These figures should not be treated as current financial data. From 2007, the Iranian government began a privatization program intended to sell substantial state-owned stakes in banks and other sectors. Bank Mellat was included in that broader policy process. The available material does not establish the bank’s current ownership structure or listed status, so those fields remain unspecified here. Bank Mellat’s international profile has been shaped strongly by sanctions and related litigation. The United States Treasury identified Bank Mellat and Persia International among Iranian banking entities that could be involved in transactions potentially contrary to United Nations Security Council Resolution 1803. The European Union imposed sanctions on Bank Mellat in 2010, alleging that it supported Iran’s nuclear and missile programs. Bank Mellat challenged the measures in European and British courts. In 2013, the European General Court annulled the EU sanctions, finding that the bank had not been given adequate reasons or evidence. The Court of Justice of the European Union upheld that outcome in 2016, concluding that the stated grounds were insufficiently specific. In the United Kingdom, the Supreme Court ruled in 2013 that the government’s sanctions against the bank were unlawful, describing the targeting as irrational and disproportionate. Bank Mellat subsequently pursued damages relating to the UK sanctions and the loss of business between 2009 and 2013. A damages trial scheduled for 2019 ended in a confidential settlement. Public statements cited different amounts: The Times later reported a payment of £1.25 billion plus interest, while the British government stated in Parliament that the settlement amount was €91,352,709.35, together with £1 million in legal costs. Because the reported figures conflict, no single settlement amount is presented as definitive here. Today, Bank Mellat remains an active Iranian banking brand. Its significance rests on its domestic scale, its origins in the consolidation of Iran’s pre-revolution banking sector, its participation in the country’s privatization process and its prominent legal challenges to international sanctions.

Bank Mellat was established in 1980 during the reorganization of Iran’s banking sector after the 1979 Revolution. It was created by merging ten private banks that had existed before the revolution: Tehran, Dariush, Pars, Etebarat Taavoni & Tozie, Iran & Arab, Bein-al-melalie-Iran, Omran, Bimeh Iran, Tejarat Khareji Iran and Farhangian. The consolidation created a large commercial institution with a nationwide banking role. The bank’s name, Bank Mellat, is generally rendered in English as “Bank of the Nation” or “People’s Bank.” At formation, the bank’s paid capital was recorded as 33.5 billion Iranian rials. Over time it became one of Iran’s largest commercial banks. A reference account later recorded capital of 13,100 billion rials and described Bank Mellat as ranking among the world’s top 1,000 banks, but the date and accounting basis of that later figure are not specified. The historical record therefore establishes the bank’s growth without providing a reliable current financial comparison. Bank Mellat developed a broad commercial-banking role in Iran, serving individuals, businesses and institutional customers. Its activities have included ordinary deposits and lending, payment services, corporate banking and trade-related financial services. The available source material does not provide a detailed chronology of individual products, branch expansion or technology initiatives. The bank also developed an international presence. Its London branch was later merged with the London branch of Bank Tejarat, producing Persia International Bank PLC. This arrangement combined the overseas banking interests of two major Iranian institutions. Bank Mellat and Persia International were subsequently identified by the United States Treasury as Iranian banking entities that might be involved in transactions potentially inconsistent with United Nations Security Council Resolution 1803. In 2007, the Iranian government began a privatization program covering 80 percent of state-owned stakes in banks and companies across sectors including media, transportation and mining. Bank Mellat was included in the banking part of this process. The supplied references do not establish the final ownership composition, current shareholder structure or precise listing status, so those matters remain open. The most consequential phase of Bank Mellat’s modern history involved international sanctions and litigation. The European Union imposed sanctions on the bank in 2010, alleging that it supported Iranian nuclear and missile programs. Bank Mellat challenged the measures, arguing that the grounds were inadequately supported. On 29 January 2013, the European General Court annulled the sanctions because the bank’s procedural rights had not been respected and the evidence cited was insufficient. The bank indicated that it intended to seek damages. A parallel case in the United Kingdom reached the Supreme Court in March 2013. The court held a closed hearing, described in the reference material as unprecedented for the UK Supreme Court in that context. In June 2013, it ruled that the UK government’s sanctions against Bank Mellat were unlawful, with a judgment characterizing the targeting as irrational and disproportionate. Bank Mellat then pursued compensation for lost business during the period from 2009 to 2013. The European litigation concluded in February 2016, when the Court of Justice of the European Union upheld the lower court’s decision. It found that the reasons supplied for the measures were too vague to justify the sanctions. The UK damages proceedings were scheduled for a hearing in June 2019, but the parties settled on the first day. The settlement was confidential. Subsequent reporting cited a payment of £1.25 billion plus interest, while a statement made by the British government in Parliament gave a substantially different figure of €91,352,709.35 plus £1 million in legal costs. These conflicting public accounts prevent a definitive description of the settlement value. Bank Mellat remains an active Iranian commercial bank. Its historical identity combines post-revolutionary consolidation, large-scale domestic banking, limited but significant international operations, participation in Iranian privatization and high-profile challenges to sanctions imposed by European and British authorities.

1. 2019UK damages case settles

   Bank Mellat and the UK government settle the bank’s damages claim at the start of the scheduled trial. The settlement terms are confidential and public accounts of the payment differ.

   Source
2. 2016EU sanctions annulment upheld

   The Court of Justice of the European Union upholds the lower court’s decision, finding that the stated reasons for the sanctions were too vague.

   Source
3. 2013European General Court annuls sanctions

   The European General Court annuls the sanctions, citing inadequate reasoning and denial of the bank’s basic procedural rights.

   Source
4. 2013UK Supreme Court rules against sanctions

   The UK Supreme Court finds the British sanctions against Bank Mellat unlawful and characterizes the targeting as irrational and disproportionate.

   Source
5. 2010European Union sanctions imposed

   The European Union places Bank Mellat under sanctions connected with allegations concerning Iran’s nuclear and missile programs.

   Source
6. 2007Bank included in Iran’s privatization program

   The Iranian government begins a program to privatize major state-owned stakes, including holdings in the banking sector and Bank Mellat.

   Source
7. 1980Bank Mellat is established

   Bank Mellat is formed through the merger of ten private Iranian banks that operated before the 1979 Revolution.

   Source

A large, systemically important Iranian commercial bank with broad domestic coverage and a history of international banking activity.

• Retail bankingConsumer banking

  Bank Mellat’s retail-banking role covers ordinary personal banking relationships, including deposit-taking, account services, payments and consumer-facing branch services. The supplied reference material identifies the institution as a major commercial bank but does not enumerate specific account products, card brands or digital features.

• Corporate and commercial bankingBusiness banking

  Corporate and commercial banking is a core part of Bank Mellat’s institutional identity. The bank serves business customers through commercial lending, working-capital relationships, deposits, payments and related financial services. Detailed product names, eligibility rules and current pricing are not specified in the available sources.

• Trade and international bankingInternational banking

  Bank Mellat has maintained international banking activity and relationships in support of cross-border commerce and financial transactions. Its former London branch was merged with Bank Tejarat’s London branch to establish Persia International Bank PLC. The available material does not provide a current list of correspondent banks or international products.

• 2019Settlement of UK sanctions damages claimOther

  After the UK Supreme Court found the sanctions unlawful, Bank Mellat sought compensation for business losses incurred between 2009 and 2013.

  What changed. The parties settled the damages case on the first day of the scheduled hearing.

  Aftermath. The settlement was confidential. Later public reporting and a parliamentary statement gave materially different figures, so the definitive settlement amount cannot be determined from the supplied references.

  Reported settlement amounts. Public accounts cited either £1.25 billion plus interest or €91,352,709.35 plus £1 million in legal costs (2019 settlement; later public accounts)

  Source
• 2007Participation in Iran’s banking privatization processStrategy

  The Iranian government launched a policy to sell substantial state-owned stakes in banks and other major companies.

  What changed. Bank Mellat was included in the government’s broader privatization program.

  Aftermath. The initiative changed the policy context for ownership of the bank, although the supplied sources do not establish its final ownership structure.

  Source
• 1980Creation through a ten-bank mergerM&A

  Iran reorganized its banking system after the 1979 Revolution, creating a need for consolidated institutions with broader commercial capacity.

  What changed. Ten pre-revolution private banks were combined to establish Bank Mellat.

  Aftermath. The merger created one of Iran’s major commercial banks and gave it a broad domestic operating base.

  Paid capital at establishment. 33.5 billion Iranian rials (1980)

  Source

• 2019Bank Mellat and UK government reach settlement over sanctions damages

  Bank Mellat’s damages proceedings concerning restrictions imposed between 2009 and 2013 ended in a confidential settlement at the beginning of the scheduled trial. Public accounts differed over the amount paid.

  LawsuitRegulation
  Source
• 2016Court of Justice of the European Union upholds Bank Mellat sanctions annulment

  The Court of Justice of the European Union agreed with the lower court that the reasons given for the sanctions were too vague, leaving the annulment of the measures in place.

  LawsuitRegulation
  Source
• 2013European General Court annuls EU sanctions against Bank Mellat

  The European General Court annulled sanctions imposed on Bank Mellat in 2010, finding that the bank had not been provided with adequate evidence or sufficiently specific reasons for the measures.

  LawsuitRegulation
  Source
• 2013UK Supreme Court rules sanctions against Bank Mellat unlawful

  The United Kingdom Supreme Court held that the government’s sanctions against Bank Mellat were unlawful. The court described the decision to target the bank as irrational and disproportionate.

  LawsuitRegulation
  Source

1. Bank Mellat