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´The name u can bank uponµ

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 The term bank comes from the
French word ¶Banco· which means a bench.
In the earlier days, European money-
lenders or money changers used to display
coins of different countries in big heaps on
benches or tables, for the purpose of lending
or exchanging.

A bank is a financial institution which

deals with deposits and advances and other
related services. It receives money from
those who want to save in the form of
deposits and it lends money to those who
need it.

Oxford Dictionary defines a bank as ´an

establishment for custody of money, which
it pays out on customer·s order.µ

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 þunjab National Bank (þNB) was
registered on May _
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Companies Act with its office in Anarkali
Bazaar Lahore. The Bank is the second
largest government-owned commercial
bank in India with about 
 branches
across  cities. It serves over 37 million
customers. The bank has been ranked th
biggest bank in the world by Bankers
Almanac, London. The bank's total assets
for financial year  were about 

billion. þunjab National Bank (þNB) has
the distinction of being the first Indian
bank to have been started solely with
Indian capital. The bank was nationalized
in July _  along with _ other banks. þNB
has a banking subsidiary in the UK, as well
as branches in Hong Kong and Kabul, and
representative offices in Almaty, Dubai,
Oslo, and Shanghai.

From its modest beginning, the

bank has grown in size and stature to
become a front-line banking institution in
India at present.

A professionally managed bank with a

successful track record of over 110 years.

Strategic business area covers the large

Indo-Gangetic belt and the metropolitan
centers.

Strong correspondent banking relationships

with more than _ international banks of
the world.

More than  renowned international

banks maintain their Rupee Accounts with
þNB.

Well equipped dealing rooms;  different

foreign currency accounts are maintained
at major centers all over the globe.

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_  c þNB commenced its operations in
Lahore. þNB 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, the Oudh Commercial Bank,
was established in __ in Faizabad, but
failed in _ .) þNB's founders included
several leaders of the Swadeshi movement
such as Dyal Singh Majithia and Lala
HarKishen Lal, Lala Lalchand, Shri Kali
þrosanna Roy, Shri E.C. Jessawala, Shri
þrabhu Dayal, Bakshi Jaishi Ram, and
Lala Dholan Dass. Lala Lajpat Rai was
actively associated with the management
of the Bank in its early years.

_  c þNB established branches in Karachi

and þeshawar.cc

_  cþNB absorbed Bhagwan Dass Bank, a

scheduled bank located in Delhi
circle.cc
_  c þartition of India and þakistan at
Independence. þNB lost its premises
in Lahore, but continued to operate in
þakistan.

_ _ c þNB acquired the 39 branches of

Bharat Bank (est. 1942); Bharat Bank
became Bharat Nidhi Ltd. c

_ _ c þNB acquired Universal Bank of

India.cc

_  c The Government of Burma

nationalized þNB's branch in
Rangoon (Yangon).cc
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_  c After the Indo-þak war the
government of þakistan seized all
the offices in þakistan of Indian
banks, including þNB's headoffice,
which may have moved to Karachi.
 þNB also had one or more branches
in East þakistan (Bangladesh).

_  c The Government of India (GOI)

nationalized þNB and _ other
major commercial banks, on July _ ,
_  .
_  cc þNB opened a branch in London.cc

_  cc The Reserve Bank of India required

þNB to transfer its London branch
to State Bank of India after the
branch was involved in a fraud
scandal.

_  cc þNB acquired Hindustan

Commercial Bank (est. 1943) in a
rescue. The acquisition added
Hindustan's 142 branches to þNB's
network.cc

_  cc þNB acquired New Bank of India,

which the GOI had nationalized in
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_  cc þNB set up a representative office
in Almaty, Kazakhstan.cc

 cc þNB took over Nedungadi Bank,

the oldest private sector bank in
Kerala. At the time of the merger
with þNB, Nedungadi Bank's shares
had zero value, with the result that
its shareholders received no
payment for their shares.

þNB also opened a representative

office in London.

 cc þNB established a branch in Kabul,

Afghanistan.

þNB also opened a representative

office in Shanghai.
þNB established an alliance with
Everest Bank in Nepal that permits
migrants to transfer funds easily
between India and Everest Bank's _c
branches in Nepal.
¬ þNB opened a representative office
in Dubai.cc

 cc þNB established þNBIL - þunjab

National Bank (International) - in
the UK, with two offices, one in
London, and one in South Hall. Since
then it has opened a third branch in
Leicester, and is planning a fourth in
Birmingham.

 cþNB opened a branch in Hong Kong.cc

 cc þNB opened a representative office
in Oslo, Norway, and a second
branch in Hong Kong, this in
Kowloon.

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 With over  million satisfied
customers and  offices, þNB has
continued to retain its leadership position
among the nationalized banks. The bank
enjoys strong fundamentals, large franchise
value and good brand image. Besides being
ranked as one of India's top service brands,
þNB has remained fully committed to its
guiding principles of sound and prudent
banking. Apart from offering banking
products, the bank has also entered the
credit card & debit card business; bullion
business; life and non-life insurance
business; Gold coins & asset management
business, etc. Since its humble beginning in
_  with the distinction of being the first
Indian bank to have been started with
Indian capital, þNB has achieved
significant growth in business which at the
end of March  amounted to Rs 


crore. Today, with assets of more than Rs


 crore, þNB is ranked as the 3rd
largest bank in the country (after SBI and
ICICI Bank) and has the 2nd largest
network of branches ( including c
extension counters and  overseas
offices).During the FY  , with  
share of low cost deposits, the bank
achieved a net profit of Rs 
 _ crore,
maintaining its number ONE position
amongst nationalized banks. Bank has a
strong capital base with capital adequacy
ratio as per Basel II at _ with Tier I
and Tier II capital ratio at   and 
respectively as on March· . As on
March·09, the Bank has the Gross and Net
NþA ratio of only _ and _
respectively. During the FY  , its·
ratio of priority sector credit to adjusted
net bank credit at _ & agriculture
credit to adjusted net bank credit at 19.72%
was also higher than the respective
national goals of c c _ þNB has
always looked at technology as a key
facilitator to provide better customer
service and ensured that its ¶IT strategy·
follows the ¶Business strategy· so as to
arrive at ´Best Fitµ. The bank has made
rapid strides in this direction. Along with
the achievement of _ branch
computerization, one of the major
achievements of the Bank is covering all
the branches of the Bank under Core
Banking Solution (CBS), thus covering _
of its business and providing ¶Anytime
Anywhere· banking facility to all
customers including customers of more
than 2000 rural branches. The bank has
also been offering Internet banking services
to the customers of CBS branches like
booking of tickets, payment of bills of
utilities, purchase of airline tickets etc.
Towards developing a cost effective
alternative channels of delivery, the bank
with more than _ ATMs has the largest
ATM network amongst Nationalized
Banks.
With the help of advanced technology, the
Bank has been a frontrunner in the
industry so far as the initiatives for
Financial Inclusion is concerned. With its
policy of inclusive growth in the Indo-
Gangetic belt, the Bank·s mission is
´Banking for Unbankedµ. The Bank has
launched a drive for biometric smart card
based technology enabled Financial
Inclusion with the help of Business
Correspondents/Business Facilitators
(BC/BF) so as to reach out to the last mile
customer. The BC/BF will address the
outreach issue while technology will
provide cost effective and transparent
services. The Bank has started several
innovative initiatives for marginal groups
like rickshaw pullers, vegetable vendors,
diary farmers, construction workers, etc.
The Bank has already achieved 100%
financial inclusion in _
 villages.
Backed by strong domestic performance,
the bank is planning to realize its global
aspirations. In order to increase its
international presence, the Bank continues
its selective foray in international markets
with presence in Hongkong, Dubai,
Kazakhstan, UK, Shanghai, Singapore,
Kabul and Norway. A second branch in
Hongkong at Kowloon was opened in the
first week of April· . Bank is also in the
process of establishing its presence in China,
Bhutan, DIFC Dubai, Canada and
Singapore. The bank also has a joint
venture with Everest Bank Ltd. (EBL),
Nepal. Under the long term vision, Bank
proposes to start its operation in Fiji Island,
Australia and Indonesia. Bank continues
with its goal to become a household brand
with global expertise.

Amongst Top _ Banks in the World, ¶The

Banker· listed þNB at th place. Further,
þNB is at the 1166th position among c
Indian firms making it to a list of the
world·s biggest companies compiled by the
US magazine ¶Forbes·.
c
Financial þerformance¬ þunjab National
Bank continues to maintain its frontline
position in the Indian banking industry. In
particular, the bank has retained its
NUMBER ONE position among the
nationalized banks in terms of number of
branches, Deposit, Advances, total
Business, operating and net profit in the
year  . The impressive operational
and financial performance has been
brought about by Bank·s focus on customer
based business with thrust on SME,
Agriculture, more inclusive approach to
banking; better asset liability management;
improved margin management, thrust on
recovery and increased efficiency in core
operations of the Bank. The performance
highlights of the bank in terms of business
and profit are shown below¬

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þarameters Ô c Ô c Ô  c c
Operating
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Net þrofit* _c  c  _c _c
Deposit _ c _c  c c
Advance  c __ c _c c
Total
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Rs. Crores)
* Respective figure for the corresponding
financial year

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_ c _ c Rai Bahadur Lala Lal Chand
_ c _ _c Bhagat Ishwar Dass
_ __c _ _c Rai Bahadur Lala Lal Chand
_ _c _ _c Rai Bhadur Lala Sukddyal
_ _c _ _c Bhagat Ishwar Dass
_ _c _ c Dr. Hira Lal Bhatia
_ c _ _c Lala Dhanpat Rai
_ _c _ c Dr. Maharaj Krishana Kapoor
_ c _ c Rai Bahadur Diwan Badri Dass
_ c _ c Lala Yodh Raj
_ c _ c Shriyansh þarshad Jain
_ c _  c Seth Shanti þarkash Jain
_ c _ c Ram Nath Goenka
_ c _ c Kamal Nayan Bajaj
_ c _ c Somesh Chander Trikha
_ c _ c þarkash Lal Tandon
_ c _ c Tirath Ram Tuli
_ c _ c Om þarkash Gupta
_ c _ _c Shyam Lal Chopra
_ _c _ c Sudarshan Lal Baluja
_ c _ c Kundan Lal Aggarwal
_ c c Rashid Jilani
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c c Satwant Chand Gupta
c  c K.C. Chakrabarthy

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