Punjab National Bank

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Punjab National Bank
Traded asBSE532461
IndustryBanking, Financial services
Founded19 May 1894; 125 years ago (1894-05-19)[1][2]
FounderDyal Singh Majithia
Lala Lajpat Rai
HeadquartersNew Delhi, India
Key people
  • Sunil Mehta
  • S. S. Mallikarjuna Rao
    (MD & CEO)[3]
ProductsCredit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management
Revenue58,688 crore (US$8.5 billion) (2019)[4]
12,995 crore (US$1.9 billion) (2019)[4]
-9,975 crore (US$−1.4 billion) (2019)[4]
Total assets774,949 crore (US$110 billion) (2019) [4]
OwnerGovernment of India
Number of employees
70,810 (2019)[5]
Capital ratio11.28% (2016)[5]

Punjab National Bank (PNB) is a Banking and Financial service bank owned by Government of India. Its headquarter is in New Delhi, India. The bank was founded in 1894. As of June 2019, the bank has over 115 million customers, 7,036 branches and 8,906 ATMs.[6]

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, which has 50 branches. Lastly, PNB owns 84% of JSC (SB) PNB Bank in Kazakhstan, which has four branches.


Punjab National Bank is a PSU working under Central Government of India regulated by Reserve Bank of India Act, 1934 and Banking Regulation Act, 1949. Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act, with its office in Anarkali Bazaar, Lahore, in present-day Pakistan. The founding board was drawn from different parts of India professing different faiths and of varying back-ground with, the common objective of creating a truly national bank that would further the economic interest of the country.[1] PNB's founders 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.[7][8] Lala Lajpat Rai was actively associated with the management of the Bank in its early years. The board first met on 23 May 1894.[1] The bank opened for business on 12 April 1895 in Lahore.

PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.)

PNB has had the privilege of maintaining accounts of national leaders such as Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur Shastri, Indira Gandhi, as well as the account of the famous Jalianwala Bagh Committee.[1]


PNB ATM at Moolchand Metro Station of Delhi Metro, Delhi

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 commencement of Pakistani independence, 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.

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 nationalized 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) nationalized 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 nationalized 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] | assets = 6,435 billion (US$93 billion) (2015)[13]

Punjab National Bank Fraud Case, 2018[edit]

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]

Punjab National Bank Fraud Case, 2019[edit]

In July 2019, Punjab National Bank detected another fraud, worth 3,805.15 crore (US$550 million) by Bhushan Power & Steel Ltd (BPSL).[15][16]

Mergers and acquisitions[edit]

Number Acquisition date Company Location Price Ref(s).
1 1951 Bharat Bank Ltd. New Delhi, India
2 1961 Universal Bank of India Dalmianagar, Bihar, India
3 1962 Indo-Commercial Bank India
4 1986 Hindustan Commercial Bank India
5 1993 New Bank of India New Delhi, India
6 2003 Nedungadi Bank Kozhikode, Kerala, India
7 01-04-2020 Proposed Merger Oriental Bank of Commerce

& United Bank of India

Gurugram (Head Office)

Kolkata (Head Office)

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$260 billion) and 11,437 branches.[17][18] MD and CEO of United Bank, Ashok Kumar Pradhan, stated that the merged entity would begin functioning from 1 April 2020 and would operate under a new name.[19][20]

Listings and shareholding[edit]

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-Dec-2013) Shareholding[24]
Promoter Group (Govt. of India) 58.87%
Foreign Institutional Investors (FII) 17.51%
Insurance Companies 15.46%
Individual shareholders 04.05%
Banks/Financial Institutions/Mutual Funds/UTI 03.02%
Others 01.09%
Total 100.0%


PNB Head Office

As on 31 March 2015, the bank had 68,290 employees. As of 31 March 2013, it also had 919 employees with disabilities on the same date (1.45%).[11] The average age of bank employees on the same date was 46 years.[11] The bank reported 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]

Awards and recognitions[edit]

  • Punjab National Bank was ranked #717 in the Forbes Global 2000 in May 2013.[25]
  • Punjab National Bank was ranked #26 in the Fortune India 500 ranking of 2011.[26]
  • PNB was awarded the 'Best Public Sector Bank' by CNBC TV18 in 2012.[27]
  • The bank was recognised as the 'most socially responsive bank' by Businessworld and PwC in 2012.[28][29]
  • In 2011, it received Golden Peacock Award for "Excellence in Corporate Social Responsibility"[30] and "National Training Award".[31]


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

See also[edit]

Citations and references[edit]


  1. ^ a b c d "Origin of PNB". Punjab National Bank. Archived from the original on 13 February 2011. Retrieved 18 February 2014.
  2. ^ "History of PNB". NDTV.com. Retrieved 18 February 2014.
  3. ^ "board of directors".
  4. ^ a b c d "Annual Financial Results for the period ended 31st March 2019". PNB. Retrieved 19 January 2019.
  5. ^ a b "Annual Report of Punjab National Bank" (PDF).
  6. ^ Analyst Presentation June 2019
  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". The Indian Express. 4 January 2013. Retrieved 18 February 2014.
  11. ^ a b c d e f g "Annual Report 2012-13" (PDF). PNB. Retrieved 18 February 2014.
  12. ^ a b "Financials Information for Punjab National Bank". Hoover's. Retrieved 18 February 2014.
  13. ^ "The World's Biggest Public Companies". Forbes.
  14. ^ "$1.8 Billion in India Bank Fraud Raises Fears of Ripple Effects". The New York Times.
  15. ^ "PNB plunges over 8% after detection of Rs 3,800 crore fraud". Business Today. 8 July 2019.
  16. ^ "PNB detects Rs 3,805-crore fraud by Bhushan Power & Steel; accuses the firm of misappropriating funds, manipulating books". Business Today. 7 July 2019.
  17. ^ https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms. Retrieved 30 August 2019. Missing or empty |title= (help)
  18. ^ Writer, Staff (30 August 2019). "10 public sector banks to be merged into four". Mint. Retrieved 30 August 2019.
  19. ^ "Merged entity of UBI, PNB, OBC to become operational from April 1, 2020". Business Today. Retrieved 14 September 2019.
  20. ^ "Merged entity of UBI, PNB, OBC to become operational from 1 April next year". Mint. 14 September 2019. Retrieved 14 September 2019.
  21. ^ "Punjab National Bank". BSEindia.com. Retrieved 18 February 2014.
  22. ^ "Punjab National Bank". NSE India. Retrieved 18 February 2014.
  23. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 18 February 2014.
  24. ^ "Punjab National Bank - Shareholding Pattern - December 2013". MoneyControl.com. Retrieved 18 February 2014.
  25. ^ "Punjab National Bank on the Forbes Global 2000 List". Forbes. May 2013. Retrieved 18 February 2014.
  26. ^ "13 Best Banks of India". Silicon India. 19 November 2012. Retrieved 18 February 2014.
  27. ^ "IBFA awards the best in banking, insurance cos". MoneyControl.com. 17 October 2012. Retrieved 18 February 2014.
  28. ^ "PNB Awards". Punjab National Bank. Retrieved 18 February 2014.
  29. ^ "A Shining Account". Business World. 16 November 2012. Archived from the original on 22 February 2014. Retrieved 18 February 2014.
  30. ^ "Corporate Social Responsibility (GPACSR)". goldenpeacockawards.com. Retrieved 18 February 2014.
  31. ^ "National Training Award (GPNTA)". goldenpeacockawards.com. Retrieved 18 February 2014.


  • Gopal, Madan (1994). "The Nation's Bankers". Dyal Singh Majithia. 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[edit]