Punjab National Bank

Punjab National Bank (PNB) is a Banking and Financial

service bank owned by the Government of India with its Punjab National Bank
headquarters is in New Delhi, India. The bank was founded in
1894 and is the second largest public sector bank (PSB) in India,
both in terms of business and its network. The bank has over 180
million customers, 10,910 branches and 13,000+ ATMs post
merger with United Bank of India and Oriental Bank of
Commerce, effective from 1 April 2020.[6][3]

PNB has a banking subsidiary in the UK (PNB International

Bank, with seven branches in the UK), as well as 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, PNB's Headquarters in Dwarka, New
which has 50 branches. Lastly, PNB owns 41.64 % of JSC (SB) Delhi
PNB Bank in Kazakhstan, which has four branches.
Type Public
Traded as BSE: 532461 (https://w
ww.bseindia.com/stock
Contents -share-price/x/y/53246
1/)
History
NSE: PNB (https://ww
Timeline
w.nseindia.com/get-qu
Punjab National Bank Fraud Case, 2018 otes/equity?symbol=P
Punjab National Bank Fraud Case, 2019 NB)
Mergers and acquisitions Industry Banking, Financial
Amalgamation services

Listings and shareholding Founded 12 April 1894[1][2]

Subsidiaries Founder Dyal Singh Majithia

Lala Lajpat Rai
Employees
Headquarters New Delhi, India
PNB CSR Initiatives
Number of 11,809[3]
See also locations
References Key people Shri CH. S. S.
Sources Mallikarjuna Rao
(MD & CEO)[4]}
External links
Products Credit cards,
consumer banking,
corporate banking,
History finance and insurance,
investment banking,
mortgage loans,
Punjab National Bank is a PSU working under Central private banking,
Government of India regulated by Reserve Bank of India Act, private equity, wealth
1934 and Banking Regulation Act, 1949. Punjab National Bank management
was registered on 19 May 1894 under the Indian Companies Act, Revenue ₹80,512 crore
with its office in Anarkali Bazaar, Lahore, in present-day (US$11 billion) (2020)
Pakistan. The founding board was drawn from different parts of
Operating ₹26,712 crore
India professing different faiths and of varying back-ground with, income (US$3.7 billion)
the common objective of creating a truly national bank that would
(2020) (2020)
further the economic interest of the country.[1] PNB's founders
included several leaders of the Swadeshi movement such as Dyal Net income ₹336 crore
Singh Majithia and Lala Harkishen Lal, Lala Lalchand, Kali (US$47 million)
Prosanna Roy, E. C. Jessawala, Prabhu Dayal, Bakshi Jaishi (2020) (2020)
Ram, and Lala Dholan Dass.[7][8] Lala Lajpat Rai was actively Total assets ₹830,666 crore
associated with the management of the Bank in its early years. (US$120 billion) (2020)
The board first met on 23 May 1894.[1] The bank opened for Owner Government of India
business on 12 April 1895 in Lahore. (85.59%) [5]
Number of 1,03,000 (2020)
PNB is the first Indian bank to have been started solely with employees
Indian capital that survives to the present – the earlierOudh
Commercial Bank was established in 1881, but failed in 1958. Capital ratio 14.14% (2020)
Website pnbindia.in (https://pnb
Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur Shastri, Indira india.in)
Gandhi and the Jalianwala Bagh Committee have held PNB
accounts.[1]

Timeline

In 1900 PNB established its first branch outside Lahore in India.

Branches in Karachi and Peshawar followed. The next major event
occurred in 1940 when PNB absorbed Bhagwan (or Bhugwan) Dass
Bank, which had its head office in Dehra.

At the Partition of India and the creation of Pakistan, PNB lost its
premises in Lahore, but continued to operate in Pakistan. Partition
forced PNB to close 92 offices in West Pakistan, one-third of its total
number of branches, and which held 40% of the total deposits. PNB
still maintained a few caretaker branches. On 31 March 1947, even
before Partition, PNB had decided to leave Lahore and transfer its
registered office to India; it received permission from the Lahore High
Court on 20 June 1947, at which time it established a new head office
at Under Hill Road, Civil Lines in New Delhi. Lala Yodh Raj was the
Chairman of the Bank. PNB ATM at Moolchand Metro
Station of Delhi Metro, Delhi
In 1951, PNB acquired the 39 branches of Bharat Bank (est. 1942).
Bharat Bank became Bharat Nidhi Ltd. In 1960, PNB again shifted
its head office, this time from Calcutta to Delhi. In 1961, PNB acquired Universal Bank of India, which
Ramakrishna Jain had established in 1938 in Dalmianagar, Bihar. PNB also amalgamated Indo Commercial
Bank (est. 1932 by S. N. N. Sankaralinga Iyer) in a rescue. In 1963, The Burmese revolutionary government
nationalised PNB's branch in Rangoon (Yangon). This became People's Bank No. 7.[9] After the Indo-Pak
war, in September 1965 the government of Pakistan seized all the offices in Pakistan of Indian banks. PNB
also had one or more branches in East Pakistan (Bangladesh).
The Government of India (GOI) nationalised PNB and 13 other major commercial banks, on 19 July 1969. In
1976 or 1978, PNB opened a branch in London. some ten years later, in 1986, the Reserve Bank of India
required PNB to transfer its London branch to State Bank of India after the branch was involved in a fraud
scandal. That same year, 1986, PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The
acquisition added Hindustan's 142 branches to PNB's network. In 1993, PNB acquired New Bank of India,
which the GOI had nationalised in 1980. In 1998 PNB set up a representative office in Almaty, Kazakhstan.

In 2003 PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. At the time of the merger
with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no 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 established an
alliance with Everest Bank Limited in Nepal that permits migrants to transfer funds easily between India and
Everest Bank's 12 branches in Nepal. Currently, PNB owns 20% of Everest Bank. Two years later, PNB
established PNBIL – Punjab National Bank (International) – in the UK, with two offices, one in London, and
one in Southall. Since then it has opened more branches, 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 upgrade this to a branch in due course. In January 2010,
PNB established a subsidiary in Bhutan. PNB owns 51% of Druk PNB Bank, which has branches in Thimpu,
Phuentsholing, and Wangdue. Local investors own the remaining shares. Then on 1 May, PNB opened its
branch in Dubai's financial center. PNB purchased a small minority stake in Kazakhstan-based JSC Danabank
established on 20 October 1992 in Pavlodar. Within the year PNB increased its ownership till 84% of what has
become JSC (SB) PNB, with its share currently decreased to 49%. The associate in Kazakhstan now called
JSC Tengri Bank has branches in Almaty, Nur-Sultan, Karaganda, Pavlodar and Shymkent. September 2011:
PNB opened a representative office in Sydney, Australia. December 2012: PNB signed an agreement with US
based life Insurance company Metlife to acquire a 30% stake in MetLife's Indian affiliate MetLife India
Limited. The company would be renamed PNB MetLife India Limited and PNB would sell MetLife's
products in its branches.[10][11][12][11][12][13]

Punjab National Bank Fraud Case, 2018

Punjab National Bank disclosed in February 2018 that it detected fraudulent transactions of up to $1.77 billion
at just one of its branches.[14],[15]

Punjab National Bank Fraud Case, 2019

In July 2019, Punjab National Bank detected another fraud, worth ₹3,805.15 crore (US$533 million) by
Bhushan Power & Steel Ltd (BPSL).

Mergers and acquisitions

 Acquisition
Number Company Location Price Ref(s).
date
1 1951 Bharat Bank Ltd. New Delhi, India —
Universal Bank of
2 1961 Dalmianagar, Bihar, India —
India
Indo-Commercial
3 1962 India —
Bank
Hindustan
4 1986 India —
Commercial Bank
5 1993 New Bank of India New Delhi, India —
6 2003 Nedungadi Bank Kozhikode, Kerala, India —

Oriental Bank of
Gurugram (Head Office)
7 2020 Commerce — [16]
Kolkata (Head Office)
United Bank of India

Amalgamation

On 30 August 2019, Finance Minister Nirmala Sitharaman announced that the Oriental Bank of Commerce
and United Bank of India would be merged with Punjab National Bank. The proposed merger would make
Punjab National Bank the second largest public sector bank in the country with assets of ₹17.95 lakh crore
(US$250 billion) and 11,437 branches.[3][17] The Union Cabinet approved the merger on 4 March 2020. PNB
announced that its board had approved the merger ratios the next day. Shareholders of Oriental Bank of
Commerce and United Bank will receive 1,150 shares and 121 shares of PNB, respectively, for every 1,000
shares of they hold.[18] On 1 April 2020, the merger came into effect.[19][20] Post merging, all customers of
other two merging banks are now be treated as the customers of PNB.[6]

Listings and shareholding

PNB's equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of India.[21][22]
It is a constituent of the CNX Nifty at the NSE.[23]

Shareholders (as on 31 December 2019) [24] Shareholding

Promoter Group (Govt. of India) 83.2%

FIs / Banks / Insurance 5.6%
Resident Individual 5.7%
Mutual Funds 2.3%
Foreign Institutional Investors (FIIs) 2.2%
Others 1.1%
Total 100.0%

Subsidiaries
Full list of subsidiaries is available here (https://www.pnbindia.in/subsidiaries-and-JVs.html) [25].
 PNB Housing Finance Ltd.
PNB Metlife India Insurance Company Co. Ltd.
PNB Investments Services Ltd.
PNB (International) Ltd.
PNB Gilts Limited

Employees
As on 31 March 2019, the bank had 70,810 employees. As of 31 March 2019, it also had 1722 employees
with disabilities on the same date (2.43%).*[5] (https://www.pnbindia.in/downloadprocess.aspx?fid=l5Z/IbcQf
NdfIM8pGRDzQw==)* The average age of bank employees on the same date was 39 years.*[6] (https://ww
w.pnbindia.in/downloadprocess.aspx?fid=s1d6Z2gyk/XHdtU0omsGsA==)* The bank reported the business
of INR 11.65 crores per employee and net profit of INR 8.06 lakhs per employee during the FY 2012–13.[11]
The company incurred INR 5,751 crores towards employee benefit expenses during the same financial
year.[11]

PNB CSR Initiatives

The bank incurred INR 3.24 crores on CSR activities like medical camps, farmer training, tree plantations,
blood donation camps etc. during the FY 2012–13.[11]

For the financial year 2018–2019, PNB incurred a sum of Rs 2954.15 lacs on CSR initiatives. Among many
initiatives, one such effort is PNB Ladli, which started in 2014. The scheme initiated to promote education
among girls of Rural / Semi-urban areas.[26]

During the year 2018–19, PNB has also taken the initiative for donations to CM relief fund for Kerala and
Kumbh Mela.[27]

For the year FY18-19, PNB has initiated Rs 1851.41 for RSETIs.[28]

To Help young talents in India the bank also initiated PNB Hockey Academy, one of the major efforts towards
supporting the national games.[29]

See also
Banking in India
List of banks in India
Reserve Bank of India
Indian Financial System Code
List of largest banks
List of companies of India
Make in India

References
1. "Origin of PNB" (https://web.archive.org/web/20110213033022/http://www.pnbindia.in/En/ui/Ori
ginofPNB.aspx). Punjab National Bank. Archived from the original (https://www.pnbindia.in/En/
ui/OriginofPNB.aspx) on 13 February 2011. Retrieved 18 February 2014.
 2. "History of PNB" (http://profit.ndtv.com/stock/punjab-national-bank_pnb/reports). NDTV.com.
Retrieved 18 February 2014.
3. "Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year
low" (https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-ba
nk-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms). The Times of India.
30 August 2019. Retrieved 2 April 2020.
4. "board of directors" (https://www.pnbindia.in/BoardofDirectors.aspx).
5. "Latest Shareholding Pattern – Punjab National Bank" (https://trendlyne.com/equity/share-holdi
ng/1048/PNB/latest/punjab-national-bank/). trendlyne.com. Retrieved 7 August 2020.
6. "Merger of 10 public sector banks to come into effect from today: 10 points" (https://www.livemin
t.com/industry/banking/merger-of-10-public-sector-banks-to-come-into-effect-from-today-10-poi
nts-11585632469446.html). Livemint. 31 March 2020. Retrieved 2 April 2020.
7. Singh Majithia (1994).
8. Tandon (1989).
9. Turnell (2009), p.226.
10. "Punjab National Bank acquires 30% stake in Metlife, company to be re-branded" (http://www.i
ndianexpress.com/news/punjab-national-bank-acquires-30--stake-in-metlife-company-to-be-re
branded/1054584). The Indian Express. 4 January 2013. Retrieved 18 February 2014.
11. "Annual Report 2012-13" (http://www.bseindia.com/bseplus/AnnualReport/532461/532461031
3.pdf) (PDF). PNB. Retrieved 18 February 2014.
12. "Financials Information for Punjab National Bank" (http://www.hoovers.com/company/Punjab_
National_Bank/ryxysxi-1-1njea5.html). Hoover's. Retrieved 18 February 2014.
13. "The World's Biggest Public Companies" (https://www.forbes.com/global2000/list/7/#header:as
sets_sortreverse:true). Forbes.
14. "$1.8 Billion in India Bank Fraud Raises Fears of Ripple Effects" (https://www.nytimes.com/201
8/02/14/business/india-bank-fraud.html). The New York Times.
15. "PNB bank fraud: CBI registers three cases involving over ₹120 cr" (https://www.thehindu.com/
news/national/cbi-registers-three-bank-fraud-cases-involving-over-120-
cr/article31810754.ece). The Hindu. 12 June 2020.
16. "As amalgamation with United Bank, OBC takes effect, PNB becomes India's second largest
PSB after SBI" (https://www.dnaindia.com/business/report-as-amalgamation-with-united-bank-
obc-takes-effect-pnb-becomes-india-s-second-largest-psb-after-sbi-2819256). DNA India. 1
April 2020. Retrieved 2 April 2020.
17. Writer, Staff (30 August 2019). "10 public sector banks to be merged into four" (https://www.live
mint.com/news/india/pnb-obc-and-united-bank-to-be-merged-nirmala-sitharaman-1567158678
718.html). Mint. Retrieved 30 August 2019.
18. Ghosh, Shayan (5 March 2020). "Three banks announce merger ratios" (https://www.livemint.c
om/market/stock-market-news/two-anchor-banks-pnb-union-bank-of-india-disclose-merger-rati
os-11583413469591.html). Livemint. Retrieved 6 March 2020.
19. "Merged entity of UBI, PNB, OBC to become operational from April 1, 2020" (https://www.busin
esstoday.in/sectors/banks/merged-entity-of-ubi-pnb-obc-to-become-operational-from-april-1-20
20/story/379073.html). Business Today. Retrieved 14 September 2019.
20. "Merged entity of UBI, PNB, OBC to become operational from 1 April next year" (https://www.liv
emint.com/industry/banking/merged-entity-of-ubi-pnb-obc-to-become-operational-from-1-april-n
ext-year-1568481571774.html). Mint. 14 September 2019. Retrieved 14 September 2019.
21. "Punjab National Bank" (http://www.bseindia.com/stock-share-price/punjab-national-bank/pnb/
532461/). BSEindia.com. Retrieved 18 February 2014.
22. "Punjab National Bank" (http://www.nseindia.com/live_market/dynaContent/live_watch/get_qu
ote/GetQuote.jsp?symbol=PNB). NSE India. Retrieved 18 February 2014.
23. "Download List of CNX Nifty stocks (.csv)" (http://www.nseindia.com/content/indices/ind_niftylis
t.csv). NSE India. Retrieved 18 February 2014.
24. "Financials Current | Financial Disclosure – Punjab National Bank" (https://www.pnbindia.in/fin
ancials-current.html). www.pnbindia.in. Retrieved 9 March 2020.
25. "Joint Ventures" (https://www.pnbindia.in/subsidiaries-and-JVs.html). pnbindia.in. Retrieved
9 March 2020.
26. [1] (https://www.pnbindia.in/downloadprocess.aspx?fid=l5Z/IbcQfNdfIM8pGRDzQw==)
27. [2] (https://www.pnbindia.in/downloadprocess.aspx?fid=l5Z/IbcQfNdfIM8pGRDzQw==)
28. [3] (https://www.pnbindia.in/downloadprocess.aspx?fid=l5Z/IbcQfNdfIM8pGRDzQw==)
29. [4] (https://www.pnbindia.in/downloadprocess.aspx?fid=l5Z/IbcQfNdfIM8pGRDzQw==)

Sources
Gopal, Madan (1994). "The Nation's Bankers". Dyal Singh Majithia (https://archive.org/details/d
yalsinghmajithi00mada). New Delhi: Publ. Div., Ministry of Information and Broadcasting, Gov.
of India. ISBN 81-230-0119-3.
Tandon, Prakash (1989). Banking century: a short history of banking in India & the pioneer,
Punjab National Bank. New Delhi, India: Viking. ISBN 978-0-670-82853-1.
Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. (NAIS
Press). ISBN 9788776940409

External links
Official website (https://www.pnbindia.in/)

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