P&O Bank
| Company type | Private |
|---|---|
| Industry | Banking and finance |
| Founded | 1920 |
| Founder | P&O |
| Fate | Acquired by Chartered Bank of India, Australia & China in 1927; merged into Chartered Bank in 1937 |
| Headquarters | London , United Kingdom |
Area served | United Kingdom, India, Ceylon, China, Hong Kong, Singapore |
Key people | Alexander Kemp Wright (leadership) |
| Products | Private banking |
P&O Banking Corporation, created in 1920 by P&O, was intended to expand the shipping firm's private banking operations.
In 1927, the institution was purchased by Chartered Bank of India, Australia & China and incorporated into the worldwide network of Chartered Bank.
History
In 1920, P&O launched P&O Bank to broaden its private banking offerings. The bank's leadership included Alexander Kemp Wright from the Royal Bank of Scotland.
On 3 May 1920, Inchcape established the bank with a capital of £2 million. Investors featured prominent banks such as Lloyds Bank and National Provincial Bank. The bank commenced operations in London in June and simultaneously opened branches in Calcutta, Bombay, and Madras, with subsequent expansions to Colombo (Ceylon), Shanghai, Hong Kong, Singapore, and Canton.
During the same year, P&O Bank acquired Allahabad Bank in India but maintained it as a separate entity.
The bank faced challenges attracting clients outside the shipping industry and resorted to higher-risk lending practices, leading to considerable non-performing loans.
In 1927, a 75% share of P&O Bank was acquired by Chartered Bank of India, Australia & China, which later took full control. Initially, Chartered operated both P&O and Allahabad banks independently; P&O was merged into Chartered in 1937, whereas Allahabad continued independently until it was nationalized by India in 1969.
Following the closure of Chartered's Colombo branch, most employees were absorbed by the Bank of Ceylon.