Punjab National Bank

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Punjab National Bank

The name you can BANK upon!

Type
Public
BSE: 532461
Traded as
NSE: PNB
CNX Nifty Constituent
Industry
Banking, Financial services
Founded
19 May 1894 [1][2]
Founder
Lala Lajpat Rai
Headquarters New Delhi, Delhi, India
Gauri Shankar (Executive Director
Key people
with additional charge of MD &
CEO)
Credit cards, consumer banking,
corporate banking, finance and
Products
insurance, investment banking,
mortgage loans, private banking,
private equity, wealth management
47400 crore (US$7.4 billion)
Revenue
(2013)[3][4]
INR 49.54 billion ( million) (2013)
Net income
[3][4]
Total assets
Owner
Number of
employees
Website

( billion) (2013)[3][4]
Government of India
62,392 (March 2013)[3]
www.pnbindia.in

Punjab National Bank is an Indian financial services company based in New Delhi, Delhi,
India. Founded in 1894, the bank has over 6,300 branches and over 7,900 ATMs across 764
cities. It serves over 80 million customers.[3]
Punjab National Bank is one of the Big Four banks of India, along with State Bank of India,
ICICI Bank and Bank of Baroda. It is the third largest bank in India in terms of asset size
( billion by the end of FY 2012-13). The bank has been ranked 248th biggest bank in the world
by the Bankers' Almanac.
PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul. It
has representative offices in Almaty (Kazakhstan), Dubai, Shanghai (China), Oslo (Norway) and
Sydney (Australia).[3]

History
Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act, with its
office in Anarkali Bazaar, Lahore. The founding board was drawn from different parts of India
professing different faiths and a varied back-ground with, however, the common objective of
providing country with a truly national bank which 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 Harkishan Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C.
Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass.[5][6] Lala Lajpat Rai
was actively associated with the management of the Bank in its early years. The board first met
on 23 May 1894. Ironically, the PNB Website now claims Lala Lajpat Rai to be the founding
father, surpassing Rai Mul Raj and Dyal Singh Majithia.[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]

Timeline
In 1900, PNB established its first branch outside Lahore in Rawalpindi. 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 Dun.
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. PNP 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.[7]
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 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, Wembly, 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 Dena Bank. Within the year PNB increased its
ownership and now PNB owns 84% of what has become JSC (SB) PNB. The subsidiary has
branches in Almaty, Astana, Karaganda, and Pavlodar. Dena Bank was established on 20
October 1992 in Pavlodar.

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.[8]

Financial performance
#

Particulars[3]

FY 2008- FY 2009- FY 2010- FY 2011- FY 201209

10
11
12
13
209,761 249,330 312,899 379,588
391,560
154,703 186,601 242,107 293,775
308,725

A Deposits (' INR crores)

B Advances (' INR crores)
Total Business (A+B) (' INR
C
364,464
crores)
D Total Assets (' INR crores)
246,919
E Operating Profit (' INR crores)
5,690
Net Profit| style="text-align:right;"|
F
3,905
3,091
G
655
808
H Profit/Employee (' INR lakhs)
5.64
I Return on assets (%)
1.39 | 1.44
J Gross NPAs (%)
1.60
K Net NPAs (%)
0.17
L Total Branches
4,665

Operations

435,931

555,006

673,363

700,285

296,633
7,326

378,325
9,056

458,192
10,614

478,877
10,907

4,433

4,884

4,748

1,018
7.31
1.34
1.71
0.53
4,997

1,132
8.35
1.19
1.79
0.85
5,189

1,165
8.42
1.00
2.93
1.52
5,670

8.06
4.27
2.35
5,874

The bank had 6,351 branches in India as on 30 September 2014. It also had 4 overseas branches
out of which 2 were in Dubai and one each in Dubai and Kabul. The total business of overseas
branches was billion as on 31 March 2013, which accounted for 6.98% of its total business. Bank
also has one joint venture in Nepal - Everest Bank Limited which has 48 branches.[3]

Listings and shareholding

PNB's equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of
India.[9][10] It is a constituent of the CNX Nifty at the NSE.[11]
Shareholders (as on 31-Dec-2013)
Promoter Group (Govt. of India)
Foreign Institutional Investors (FII)
Insurance Companies
Individual shareholders
Banks/Financial Institutions/Mutual Funds/UTI
Others
Total

Shareholding[12]
58.87%
17.51%
15.46%
04.05%
03.02%
01.09%
100.0%

Employees

PNB office in Lucknow

As on 31 March 2013, the bank had 63,292 employees, out of which 11,594 were women (18%).
It also had 919 employees with disabilities on the same date (1.45%).[3] The average age of bank
employees on the same date was 46 years.[3] 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.[3] The company
incurred INR 5,751 crores towards employee benefit expenses during the same financial year.[3]

Awards and recognitions

Punjab National Bank was ranked #717 in the Forbes Global 2000 in May 2013.[13]

Punjab National Bank was ranked #26 in the Fortune India 500 ranking of 2011.[14]

PNB was awarded the 'Best Public Sector Bank' by CNBC TV18 in 2012.[15]

The bank was recognised as the 'most socially responsive bank' by Businessworld and
PwC in 2012.[16][17]

In 2011, it received Golden Peacock Award for "Excellence in Corporate Social

Responsibility"[18] and "National Training Award".[19]