Bank Pembangunan Malaysia Berhad (Bank Pembangunan) was incorporated under the Companies Act 1965 on 28 November 1973 under the name of Bank Pembangunan Malaysia Berhad and begun its operation on 8 June 1974. Bank Pembangunan's mandated role then was to assist entrepreneurs involved in small and medium industries through the provision of various financing facilities; training and advisory services particularly the Bumiputera entrepreneurs. The objective then was to increase the participation and involvement of the Bumiputera community.

In December 1998, Bank Pembangunan was entrusted with another important role of providing financing for infrastructure projects, particularly Government backed projects. In conjunction with this, Bank Pembangunan's name was changed to Bank Pembangunan Dan Infrastruktur Malaysia Berhad. In early 2002, Bank Pembangunan was also authorized to offer corporate advisory and underwriting services to companies, which engaged in development of infrastructure projects.

In 2005, following the rationalization exercise initiated by the Government, the function of Bank Pembangunan and another Development Financial Institution (DFI) Bank Industri & Teknologi Malaysia Berhad were rationalized resulting in the formation of Bank Perusahaan Kecil & Sederhana Malaysia Berhad (SME Bank) as the wholly owned subsidiary of Bank Pembangunan.

Bank Pembangunan's present mandated role is to provide medium to long term financing that are of capital intensive in nature to the infrastructure, maritime and high technology sectors. Whereas SME Bank's mandated role is to assist the development of Malaysia's small and medium-sized enterprises (SME), through provision of various financing facilities and advisory services. In line with the exercise, Bank Pembangunan once again changed its name to Bank Pembangunan Malaysia Berhad on 30 September 2005.