Punjab National Bank: Difference between revisions

| logo = Punjab National Bank new logo.svg

| image = PNB Head Office.jpg

| image_alt = Headquarters in New Delhi, Delhi

| image_caption = [[Corporate headquarters|Headquarters]] in [[Dwarka, Delhi]]

| type = [[Public company|Public]]

| foundation = {{Start date and age|df=y|1893|05|19}}<ref name=Origin/><ref>{{cite web |url=http://profit.ndtv.com/stock/punjab-national-bank_pnb/reports |title=History of PNB |publisher=NDTV.com |access-date=18 February 2014}}</ref>

| founder = {{ubl|[[Dyal Singh Majithia]]|[[Lala Lajpat Rai]]}}

| location = [[Dwarka, Delhi]], India

| key_people = {{ubl|K G Ananthakrishnan<br/> (Non-Exe Chairman) | [[Atul Kumar Goel]] <br /> {{small|(MD & CEO)}}<ref>{{cite web|url=https://www.pnbindia.in/BoardofDirectors.aspx|title=board of directors}}</ref>}}

| revenue = {{increase}} {{INRConvert|99084.88|c}}

| revenue_year = 2023

| operating_income = {{increase}} {{INRConvert|22932.21|c}}

| income_year = 2023

| net_income = {{down}} {{INRConvert|3348.50|c}}

| net_income_year = 2023

| assets = {{increase}} {{INRConvert|1493648.94|c}}

| assets_year = 2023

| equity = {{increase}} {{INRConvert|102880.50|c}}

| equity_year = 2023

| owner = [[Government of India]]

| parent =  

| num_employees = 103,144 (2022)

| num_locations = 12,609 Domestic Branches<ref name="Branches"/>

| subsid = [[PNB MetLife India Insurance Company]]<br/>[[PNB Housing Finance Limited]]

 

PNB has a banking subsidiary in the [[United Kingdom|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]], which has 122 branches. PNB also owns 41.64% of JSC (SB) PNB Bank in Kazakhstan, which has four branches.

Punjab National Bank is a [[Public sector undertakings in India|PSU]] working under the government of India regulated by the [[Reserve Bank of India]] Act, 1934 and the Banking Regulation Act, 1949. It was registered on 19 May 1894 under the Indian Companies Act, with its office in [[Anarkali Bazaar]], in pre-independent India (present-day [[Pakistan]]). The founding board was drawn from different parts of India professing different faiths and of varying backgrounds, with the common objective of creating a truly national bank that would further the economic interest of the country.<ref name=Origin>{{cite web |url=https://www.pnbindia.in/En/ui/OriginofPNB.aspx |archive-url=https://web.archive.org/web/20110213033022/http://www.pnbindia.in/En/ui/OriginofPNB.aspx |url-status=dead |archive-date=13 February 2011 |title=Origin of PNB |publisher=Punjab National Bank |access-date=18 February 2014}}</ref> 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.<ref>Singh Majithia (1994).</ref><ref>Tandon (1989).</ref> [[Lala Lajpat Rai]] was actively associated with the management of the Bank in its early years. The board first met on 23 May 1894.<ref name=Origin/> The bank opened for business on 12 April 1895 in Lahore.{{Citation needed|date=October 2021}}

PNB is the first Indian bank to have been started solely with Indian capital that survives to the present earlier [[Oudh Commercial Bank]] was established in 1881, but failed in 1958.{{Citation needed|date=October 2021}}

[[Mahatma Gandhi]], [[Jawaharlal Nehru]], [[Lal Bahadur Shastri]], [[Indira Gandhi]] and the [[Jalianwala Bagh]] Committee have held PNB accounts.<ref name=Origin/>{{Primary source inline|date=October 2021}}

[[File:PNB ATM at Moolchand Metro Station.jpg|right|thumb|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 [[Dehradun|Dehra]].{{Citation needed|date=October 2021}}

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.{{Citation needed|date=October 2021}}

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 [[Politics of Burma#Military socialist era|Burmese revolutionary government]] nationalised PNB's branch in Rangoon (now [[Yangon]]). This became People's Bank No. 7.<ref>Turnell (2009), p.226.</ref> After the [[Indo-Pak war of 1965]], the government of Pakistan seized all the offices in Pakistan of Indian banks in September 1965. PNB also had one or more branches in [[East Pakistan]] (now [[Bangladesh]]).{{Citation needed|date=October 2021}}

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.{{Citation needed|date=October 2021}}

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]] 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 [[Thimphu]], [[Phuntsholing]], 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.<ref>{{cite news |url=http://www.indianexpress.com/news/punjab-national-bank-acquires-30--stake-in-metlife-company-to-be-rebranded/1054584 |title=Punjab National Bank acquires 30% stake in Metlife, company to be re-branded |work=The Indian Express|date=4 January 2013 |access-date=18 February 2014}}</ref><ref name=PNBAR2012-13>{{cite web |url=http://www.bseindia.com/bseplus/AnnualReport/532461/5324610313.pdf |title=Annual Report 2012-13 |publisher=PNB |access-date=18 February 2014}}</ref><ref name=10K>{{cite web|url=http://www.hoovers.com/company/Punjab_National_Bank/ryxysxi-1-1njea5.html|title=Financials Information for Punjab National Bank |publisher=[[Hoover's]]|access-date=18 February 2014}}</ref><ref>{{cite web|url=https://www.forbes.com/global2000/list/7/#header:assets_sortreverse:true|archive-url=https://web.archive.org/web/20150511022006/http://www.forbes.com/global2000/list/7#header:assets_sortreverse:true|url-status=dead|archive-date=11 May 2015|title=The World's Biggest Public Companies|work=Forbes}}</ref>

===Punjab National Bank Fraud Case, 2018===

{{Main|Punjab National Bank Scam}}

PNB disclosed in February 2018 that it detected fraudulent transactions of up to $1.77 billion at just one of its branches.<ref name="punjab2018">{{cite news |title=$1.8 Billion in India Bank Fraud Raises Fears of Ripple Effects |url=https://www.nytimes.com/2018/02/14/business/india-bank-fraud.html |work=The New York Times|date=14 February 2018 |last1=Abi-Habib |first1=Maria }}</ref><ref>{{cite news |title=PNB bank fraud: CBI registers three cases involving over ₹120 cr. |url=https://www.thehindu.com/news/national/cbi-registers-three-bank-fraud-cases-involving-over-120-cr/article31810754.ece |work=The Hindu |date=12 June 2020 |language=en-IN}}</ref>

In July 2019, the bank detected another fraud, worth {{INRConvert|3805.15|c|0}} by [[Bhushan Power & Steel]] Ltd (BPSL).{{Citation needed|date=July 2021}}

{| class="wikitable sortable static-row-numbers static-row-header-hash"

! scope="col" | Acquisition date

! scope="col" | Location

! scope="col" class="unsortable" | {{Tooltip|Ref.|Reference(s)}}

| style="text-align:center;"|{{Citation needed|date=July 2021}}

|-

| style="text-align:center;"|{{Citation needed|date=July 2021}}

|-

| style="text-align:center;"|{{Citation needed|date=July 2021}}

|-

| style="text-align:center;"|{{Citation needed|date=July 2021}}

|-

| style="text-align:center;"|{{Citation needed|date=July 2021}}

|-

| style="text-align:center;"|{{Citation needed|date=July 2021}}

On 30 August 2019, [[Minister of Finance (India)|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<ref>{{cite news |title=Punjab National Bank completes one year of integration |url=https://www.timesnownews.com/videos/mirror-now/society/punjab-national-bank-completes-one-year-of-integration/93757 |work=www.timesnownews.com |language=en}}</ref> the second largest public sector bank in the country with assets of {{INRConvert|17.95|lc}} and 11,437 branches.<ref name="Branches">{{cite news |title=Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year low |url=https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms |access-date=2 April 2020 |work=The Times of India |date=30 August 2019 |language=en}}</ref><ref>{{cite web |author=Staff Writer|title=10 public sector banks to be merged into four |url=https://www.livemint.com/news/india/pnb-obc-and-united-bank-to-be-merged-nirmala-sitharaman-1567158678718.html |website=Mint |access-date=30 August 2019 |language=en |date=30 August 2019}}</ref> 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.<ref>{{cite web |last1=Ghosh |first1=Shayan |title=Three banks announce merger ratios |url=https://www.livemint.com/market/stock-market-news/two-anchor-banks-pnb-union-bank-of-india-disclose-merger-ratios-11583413469591.html |website=Livemint |access-date=6 March 2020 |language=en |date=5 March 2020}}</ref> On 1 April 2020, the merger came into effect.<ref>{{cite web |title=Merged entity of UBI, PNB, OBC to become operational from April 1, 2020 |url=https://www.businesstoday.in/sectors/banks/merged-entity-of-ubi-pnb-obc-to-become-operational-from-april-1-2020/story/379073.html |website=Business Today |date=14 September 2019 |access-date=14 September 2019}}</ref><ref>{{cite web |title=Merged entity of UBI, PNB, OBC to become operational from 1 April next year |url=https://www.livemint.com/industry/banking/merged-entity-of-ubi-pnb-obc-to-become-operational-from-1-april-next-year-1568481571774.html |website=Mint |access-date=14 September 2019 |language=en |date=14 September 2019}}</ref> Post-merger, all customers of other two merging banks are now treated as the customers of PNB.<ref name="Merger">{{cite news |title=Merger of 10 public sector banks to come into effect from today: 10 points |url=https://www.livemint.com/industry/banking/merger-of-10-public-sector-banks-to-come-into-effect-from-today-10-points-11585632469446.html |access-date=2 April 2020 |work=Livemint |date=31 March 2020 |language=en}}</ref>

 

 

 

The WhatsApp banking service will be available 24x7, including holidays, on both android and iOS-based mobile phones.<ref>{{cite news |website=ZEE Business |title=Punjab National Bank launches WhatsApp banking for customers and non-customers|date=3 October 2022|url=https://www.zeebiz.com/personal-finance/banking/news-punjab-national-bank-launches-whatsapp-banking-for-customers-and-non-customers-201586}}</ref>

PNB's equity shares are listed on [[Bombay Stock Exchange]] and the [[National Stock Exchange of India]].<ref>{{cite web |url=http://www.bseindia.com/stock-share-price/punjab-national-bank/pnb/532461/ |title=Punjab National Bank|publisher=BSEindia.com |access-date=18 February 2014}}</ref><ref>{{cite web |url=https://www.nseindia.com/get-quotes/equity?symbol=PNB |title=Punjab National Bank |publisher=NSE India |access-date=18 February 2014}}</ref> It is a constituent of the [[CNX Nifty]] at the [[National Stock Exchange of India|NSE]].<ref>{{cite web |url=https://www.nseindia.com/products-services/indices-nifty50-index

|title=Download List of CNX Nifty stocks (.csv) |publisher=NSE India |access-date=18 February 2014}}</ref> {{As of|2019|12|31}}, the shareholding structure of the bank is as follows.<ref name=":0">{{Cite web|title=Financials Current {{!}} Financial Disclosure – Punjab National Bank|url=https://www.pnbindia.in/financials-current.html|access-date=9 March 2020|website=www.pnbindia.in}}</ref>

! Shareholders!! Shareholding

| Promoter Group (Government of India)||83.2%

[[File:Punjab national bank in South Road - geograph.org.uk - 1519911.jpg|thumb|A Punjab National Bank branch in the United Kingdom.]]

# [[PNB Housing Finance Limited]]<ref name=":1">{{Cite web|title=Joint Ventures|url=https://www.pnbindia.in/subsidiaries-and-JVs.html|access-date=9 March 2020|website=pnbindia.in}}</ref> (32.52%)

# [[PNB MetLife India Insurance Company]]<ref name=":1" /> (32%)

# India SME Asset Reconstruction Co. Ltd. (20.90%)

# PNB Cards and Services Ltd (100%)

# PNB Insurance Broking Services Ltd (non functional under winding up)

# PNB Investment Services Ltd (100%)

# PNB Gilts Ltd (74.07%)

# PNB International Ltd UK (100%)

#Druk PNB Bank Ltd Bhutan (51%)

# JSC Tengri Bank Kazakhstan (41.64%)

As on 31 March 2019, the bank had 70,810 employees. As of 31 March 2019, it also had 1,722 employees with [[disability|disabilities]] on the same date (2.43%).<ref>{{Cite web|title=Business Responsibility Report|url=https://www.pnbindia.in/downloadprocess.aspx?fid=l5Z/IbcQfNdfIM8pGRDzQw==|website=Punjab National Bank}}</ref> The average age of bank employees on the same date was 39 years.<ref>{{Cite web|title=Annual Report 2018-19|url=https://www.pnbindia.in/downloadprocess.aspx?fid=s1d6Z2gyk/XHdtU0omsGsA==|website=Punjab National Bank}}</ref> The bank reported the business of {{INRconvert|11.65|c}} per employee and net profit of {{INRconvert|8.06|l}} per employee during the FY 2012–13.<ref name=PNBAR2012-13/> The company incurred {{INRconvert|5751|c}} towards [[employee benefit]] expenses during the same financial year.<ref name=PNBAR2012-13/>

==Corporate social responsibility==

The bank incurred {{INRconvert|3.24|c}} on [[corporate social responsibility]] activities like medical camps, farmer training, tree plantations, [[blood donation]] camps etc. during the FY 2012–13.<ref name=PNBAR2012-13/>

For the financial year 2018–2019, PNB incurred a sum of {{INRconvert|2954.15|l}} 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.<ref name="pnbindia.in">https://www.pnbindia.in/downloadprocess.aspx?fid=l5Z/IbcQfNdfIM8pGRDzQw== {{Bare URL PDF|date=March 2022}}</ref>

For the year FY18-19, PNB has initiated {{INR|1851.41}} for RSETIs.<ref name="pnbindia.in"/>

==Further reading==

* {{cite book|last=Gopal|first=Madan|title=Dyal Singh Majithia|year=1994|publisher=Publ. Div., Ministry of Information and Broadcasting, Gov. of India|location=New Delhi|isbn=81-230-0119-3|chapter=The Nation's Bankers|url-access=registration|url=https://archive.org/details/dyalsinghmajithi00mada}}

* {{cite book|last=Tandon|first=Prakash|title=Banking century: a short history of banking in India & the pioneer, Punjab National Bank|year=1989|publisher=Viking|location=New Delhi, India|isbn=978-0-670-82853-1}}

* {{Cite book|last=Turnell|first=Sean|url=https://www.worldcat.org/oclc/753966248|title=Fiery dragons : banks, moneylenders and microfinance in Burma|date=2008|publisher=NIAS Press|others=Nordic Institute of Asian Studies|isbn=978-87-7694-602-9|location=Copenhagen|oclc=753966248}}

[[Category:Punjab National Bank| ]]