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Title: Punjab National Bank : A Review

Punjab National Bank : A Review

Punjab National Bank

Punjab National Bank (PNB) is a government-owned banking and financial services bank headquartered in New Delhi, India. The bank was founded in 1894. Since June 2019, the bank has over 115 million customers, 7,037 branches and 9,071 ATMs.

PNB has a banking subsidiary in the UK (PNB International Bank with seven branches in the UK) and branches in Hong Kong, Kowloon, Dubai and Kabul. It has representative offices in Almaty (Kazakhstan), Dubai (United Arab Emirates), Shanghai (China), Oslo (Norway) and Sydney (Australia). In Bhutan, it owns 51% of Druk PNB Bank, which has five branches. In Nepal, PNB owns 20% of Everest Bank Limited with 50 branches. Finally, PNB owns 41.64% of JSC (SB) PNB Bank in Kazakhstan, which has four branches. After the merger of the two banks United Bank of India and Oriental Bank of Commerce, PNB will be the second largest bank in the public sector (PSB) from April 1, 2020.


The Punjab National Bank is a PSU that operates under the central government of India and is regulated by the Reserve Bank of India Act of 1934 and the Banking Regulation Act of 1949. The Punjab National Bank was registered on May 19, 1894 under the Indian Companies Act, based in Anarkali Bazaar. Lahore in today s Pakistan. The founding body consisted of different parts of India, each with different beliefs and backgrounds, with the common goal of creating a real national bank that would promote the country s economic interest. The founders of PNB included several leaders of the Swadeshi movement, such as Dyal Singh Majithia and Lala Harkishen Lal, Lala Lalchand, Kali Prosanna Roy, E.C. Jessawala, Prabhu Dayal, Bakshi Jaishi Ram and Lala Dholan Dass. Lala Lajpat Rai was actively involved in the management of the bank in the early years. The board met for the first time on May 23, 1894. The bank opened in Lahore on April 12, 1895.

PNB is the first Indian bank to be founded solely with Indian capital preserved to date - the former Oudh Commercial Bank was founded in 1881 but failed in 1958.

Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur Shastri, Indira Gandhi and the Jalianwala Bagh Committee have PNB accounts.


In 1900 PNB founded its first branch outside of Lahore in India. Offices in Karachi and Peshawar followed. The next big thing happened in 1940 when PNB took over Bhagwan (or Bhugwan) Dass Bank, which was headquartered in Dehra.

When India was divided and Pakistan founded, PNB lost its premises in Lahore, but continued to operate in Pakistan. The division forced PNB to close 92 offices in western Pakistan, a third of the total number of branches that held 40% of total deposits. PNB maintained a few caretaker branches. On March 31, 1947, before the division, PNB had decided to leave Lahore and relocate to India. On June 20, 1947, it received approval from the Lahore High Court. At that point, it set up a new headquarters on Under Hill Road, Civil Lines in New Delhi. Lala Yodh Raj was the chairman of the bank.

In 1951 PNB acquired the 39 branches of Bharat Bank (founded in 1942). Bharat Bank became Bharat Nidhi Ltd. In 1960 PNB moved its headquarters again, this time from Calcutta to Delhi. In 1961, PNB acquired the Universal Bank of India, which Ramakrishna Jain founded in Dalmianagar, Bihar, in 1938. PNB also merged the Indo Commercial Bank (founded in 1932 by S.N.N. Sankaralinga Iyer) to a rescue. In 1963 the Burmese revolutionary government nationalized the PNB branch in Yangon (Yangon). This became Volksbank No. 7. After the Indo-Pak war, the Pakistani government seized all offices of Indian banks in Pakistan in September 1965. PNB also had one or more branches in East Pakistan (Bangladesh). The Indian government (GOI) nationalized PNB and 13 other large commercial banks on July 19, 1969. In 1976 or 1978 PNB opened a branch in London. About ten years later, in 1986, the Reserve Bank of India asked PNB to transfer its London branch to the State Bank of India after the branch was involved in a fraud scandal. In the same year, 1986, PNB acquired the Hindustan Commercial Bank for rescue (founded in 1943). The acquisition added 142 Hindustan offices to the PNB network. In 1993 PNB acquired the New Bank of India, which the Indian government nationalized in 1980. In 1998 PNB set up a representative office in Almaty, Kazakhstan.

In 2003 PNB took over Nedungadi Bank, the oldest private bank in Kerala. At the time of the merger with PNB, Nedungadi Bank s shares were zero, so shareholders did not receive payment for their shares. PNB also opened a representative office in London. In 2004, PNB established a branch in Kabul, Afghanistan, a representative office in Shanghai and another in Dubai. PNB also has an alliance with Everest Bank Limited in Nepal that enables migrants to easily transfer money between India and the 12 branches of Everest Bank in Nepal. PNB currently owns 20% of Everest Bank. Two years later, PNB founded PNBIL - Punjab National Bank (International) in the UK - with two branches, one in London and one in Southall. Since then, it has opened additional offices, this time in Leicester, Birmingham, Ilford, Wembley and Wolverhampton. PNB also opened a branch in Hong Kong. In January 2009 PNB established a representative office in Oslo, Norway. PNB hopes to make this a branch in due course. In January 2010, PNB founded a subsidiary in Bhutan. PNB owns 51% of Druk PNB Bank with offices in Thimpu, Phuentsholing and Wangdue. Local investors own the remaining shares. PNB opened its branch in the financial center of Dubai on May 1st. PNB acquired a small minority stake in Kazakhstan-based JSC Danabank, which was founded in Pavlodar on October 20, 1992. During the year, PNB increased its stake to 84% of JSC (SB) PNB, with its stake currently falling to 49%. The Kazakhstan employee, now called JSC Tengri Bank, has offices in Almaty, Nur-Sultan, Karaganda, Pavlodar and Shymkent. September 2011: PNB opens a representative office in Sydney, Australia. December 2012: PNB signs an agreement with the US-based life insurance company Metlife to acquire a 30% stake in the Indian MetLife subsidiary MetLife India Limited. The company would be renamed PNB MetLife India Limited and PNB would sell MetLife products in its stores. | Assets = INR 6,435 billion (USD 90 billion) (2015)

Subsidiary Company

The full list of subsidiaries can be found here.

• PNB Housing Finance Ltd.

• PNB Metlife Finance Ltd.

• PNB Investments Services Ltd.

• PNB (International) Ltd.

• PNB Gilts Ltd.


As of March 31, 2015, the bank employed 68,290 people. As of March 31, 2013, 919 people with disabilities were employed on the same day (1.45%). The average age of bank employees on the same day was 46 years. The bank reported a business of INR 11.65 billion per employee and a net profit of INR 8.06 per employee in fiscal year 2012/13. The company spent INR 5,751 crores on employee benefits expenses in the same fiscal year.

Awards and Recognition

The Punjab National Bank was ranked 717 in Forbes Global 2000 in May 2013.

• The Punjab National Bank was ranked 26th in the Fortune India 500 ranking from 2011.

• In 2012, PNB was named “Best Public Sector Bank” by CNBC TV18.

• The bank was recognized by Business-world and PwC in 2012 as the most socially responsive bank. In 2011 she received the Golden Peacock Award for "Excellence in Corporate Social Responsibility" and the "National Training Award".


The bank spent INR 3.24 million on CSR activities such as medical camps, farmers  training, tree plantations, blood donation camps, etc. in the 2012/13 financial year.

  • 30/03/2020
  • 264


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