The Zanzibar government established the bank in 1966. It operates as a retail bank, catering to individuals, medium and small-sized businesses (SMEs), and major corporate clients. Its initial service region was restricted to the Pemba and Zanzibar islands.
The bank set up a Dar es Salaam branch in April 2011. It planned additional branches in Arusha, Mwanza, Mbeya, and Mtwara by May 2012.