Punjab National Bank (PNB) is majority-owned by the Government of India and became the second-largest public sector bank in the country after a major April 2020 merger that folded in Oriental Bank of Commerce and United Bank of India.
That three-way consolidation was one of the biggest moves in the Indian government’s broader plan to create fewer, stronger, more globally competitive public sector banks instead of many smaller regional ones.
Quick Facts
| Bank | Punjab National Bank |
|---|---|
| Majority Owner | Government of India |
| 2020 Merger | Absorbed Oriental Bank of Commerce and United Bank of India (April 1, 2020) |
| Founded | 1894 |
| Nationalized | 1969 |
| Ranking | 2nd-largest Indian public sector bank post-merger |
Ownership History
| Year | Development |
|---|---|
| 1894 | Founded in Lahore (pre-partition India), one of the first swadeshi banks established entirely with Indian capital |
| 1969 | Nationalized by the Government of India |
| 2019 | Government announces PNB will absorb Oriental Bank of Commerce and United Bank of India |
| 2020 | Merger takes effect April 1, 2020, making PNB the second-largest public sector bank in India by business volume |
| 2020s | PNB continues operating as a major public sector bank with an expanded national footprint from the merger |
Key Ownership Highlights
- PNB’s absorption of two other banks in 2020 makes it one of the biggest “winners” of India’s PSU bank consolidation, alongside Union Bank of India, which similarly grew by absorbing Andhra Bank and Corporation Bank.
- United Bank of India, one of the two banks PNB absorbed, no longer exists as an independent entity as a result of this merger.
- Government ownership remains the dominant structure at PNB, consistent with virtually all major Indian public sector banks.
FAQ
Is Punjab National Bank government-owned?
Yes, it’s majority-owned by the Government of India.
Which banks merged into Punjab National Bank?
Oriental Bank of Commerce and United Bank of India merged into PNB effective April 1, 2020.
Related Reading
Punjab National Bank also absorbed Oriental Bank of Commerce in the same 2020 merger that folded in United Bank of India.
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