Oriental Bank of Commerce
| Company type | Public sector bank |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1943 |
| Founder | Rai Bahadur Lala Sohan Lal |
| Defunct | April 1, 2020 |
| Fate | Merged with Punjab National Bank |
| Headquarters | Gurgaon , India |
Area served | India |
Key people | Sh. Mukesh Kumar Jain (last MD and CEO) |
| Products | Deposit accounts, loans, debit and credit cards, insurance, ATM services, Internet and Mobile Banking |
| Parent | Punjab National Bank (after merger) |
Oriental Bank of Commerce (OBC) was a public sector banking institution in India, with its main office located in Gurgaon, Haryana. The bank maintained a network of 2,390 branches and operated 2,625 ATMs across the country. In April 2020, OBC merged with Punjab National Bank along with United Bank of India, resulting in the formation of India's second-largest public sector bank.
History
According to the Registrar of Companies, the bank's earliest recorded incorporation dates back to 1901. The establishment of OBC occurred in 1943 in Lahore under the leadership of its first Chairman, Rai Bahadur Lala Sohan Lal. Following the Partition within four years, the bank shut down its branches in Pakistan and shifted its registered office to Amritsar. During this period, then Chairman Lala Karam Chand Thapar fulfilled all depositor obligations in Pakistan by repaying every rupee owed.
The period between 1970 and 1976 marked OBC’s most difficult years, with profits declining sharply to 175. At that time, the bank was owned by the Thapar Group, who contemplated either selling or closing it. Nevertheless, intervention by employees and management led to a recovery fueled by their collective commitment and support.
On 15 April 1980, OBC was nationalised, becoming the 19th among the then 20 nationalised banks.
In 1997, OBC expanded through the acquisition of Bari Doab Bank and Punjab Cooperative Bank. Bari Doab Bank was originally founded in Lahore in 1915 and relocated to Hoshiarpur after Partition. Punjab Cooperative Bank, established in Amritsar in 1904, had undergone liquidation before being revived. These acquisitions did not increase OBC’s branch network.
In 1993, OBC issued and subscribed to a total of 1,280,000 shares at Rs 10 each, distributing shares to Indian financial institutions and mutual funds at a premium rate, alongside issuing 4,800,000 shares to the public. Furthermore, employees were allotted 2,380,000 shares. This made OBC the first nationalised bank to raise capital from the market.
By March 31, 2010, OBC’s business volume exceeded 2,37,000 crore, positioning it as the seventh-largest public sector bank in India.
On August 14, 2004, OBC merged with Global Trust Bank (GTB), a private sector entity that had been placed under an RBI moratorium due to financial irregularities. This merger incorporated an additional 103 branches into OBC’s network, bringing its total branch count to 1,092. According to the annual report for March 2018–2019, OBC operated a total of 2,390 branches and managed 2,625 ATMs nationwide.
Amalgamation
On August 30, 2019, Finance Minister Nirmala Sitharaman declared that Oriental Bank of Commerce and United Bank of India (UBI) would merge with Punjab National Bank (PNB). This strategic consolidation elevated PNB to become the second-largest public sector bank in India with assets worth , supported by a branch network totaling 11,437 locations. Ashok Kumar Pradhan, MD and CEO of UBI at the time, confirmed that operations under the merged entity would begin on April 1, 2020. The Union Cabinet gave its approval for the merger on March 4, 2020. Subsequently, PNB’s board ratified the share exchange ratios: shareholders of OBC were allotted 1,150 PNB shares for every 1,000 shares held; UBI shareholders received 121 shares per 1,000 held. The merger officially took effect on April 1, 2020, significantly strengthening PNB’s standing as India’s second-largest public sector bank.
Chairmen
The bank's Chairmen (CMD) over the years were as follows:
| Name | Tenure |
|---|---|
| Karam Chand Thapar | 1946–1967 |
| L. M. Thapar | 1961–1969 |
| R. P. Oberoi | 1973–1976 |
| M. K. Vig | 1976–1983 |
| P. S. Gopalakrishnan | 1984–1988 |
| S. P. Talwar | 1988–1990 |
| S. K. Soni | 1990–1996 |
| Dalbir Singh | 1996–2000 |
| B. D. Narang | 2000–2005 |
| K. N. Prithviraj | 2005–2007 |
| T. Y. Prabhu | August 2009 – January 2011 |
| Nagesh Pydah | January 2011 – February 2012 |
| S.L. Bansal | March 2012 – September 2014 |
| Sh. Animesh Chauhan | December 2014 – June 2017 |
| Sh. Mukesh Kumar Jain | July 2017 – March 2020 |
Overview
The bank offers an extensive range of financial products and services, such as deposit accounts, various loan options, debit and credit cards (in collaboration with SBI), insurance services, ATM networks, as well as Internet and Mobile Banking facilities. Additionally, it operates self-banking centers and maintains call centers to support customer needs.
To address poverty at the grassroots level, OBC has introduced community engagement initiatives. Its Grameen Projects in Dehradun (Uttarakhand) and Hanumangarh (Rajasthan) emulate the Bangladesh Grameen Bank model by providing microloans starting from ₹75 (approximately US$1.50), predominantly aiding women borrowers. The bank also equips rural populations with skills to manufacture products such as pickles and jams using locally sourced ingredients, thereby promoting self-employment and supporting rural cottage industries.
In 1997, the bank initiated the 'Comprehensive Village Development Programme' in selected villages across Punjab, Haryana, and Rajasthan. This integrated rural finance scheme aims to facilitate infrastructure improvements and boost farmers' incomes. Furthermore, OBC has implemented a detailed 14-point strategy to improve credit access for women and has designated five branches as dedicated centers for women entrepreneurs.
Bibliography
- Annual Report 2019 [1]
- Baker, Henry D. (1915) British India: With Notes on Ceylon, Afghanistan, and Tibet. (U.S. Government Printing Office).