Oriental Bank of Commerce (OBC) is a public sector bank in India that was founded on February 19, 1943. The bank was established in Lahore, Pakistan, but after the partition of India and Pakistan, the bank's headquarters was shifted to India. Today, OBC is one of the major public sector banks in India, providing a wide range of banking services to its customers.
History of Oriental Bank of Commerce
The bank was founded by Late Rai Bahadur Lala Sohan Lal, a prominent businessman from Lahore. Initially, the bank was named as “Oriental Bank of Commerce Ltd.” and started its operations with a paid-up capital of Rs. 5 lakhs. In the early years, the bank faced significant challenges due to the partition of India and Pakistan, but it managed to survive and thrive under the leadership of its founders. Over the years, the bank has undergone significant transformations, including nationalization in 1980, and has emerged as one of the major public sector banks in India.
Milestones in the History of OBC
Some of the significant milestones in the history of OBC include:
- 1943: OBC was founded on February 19th by Late Rai Bahadur Lala Sohan Lal.
- 1947: The bank’s headquarters was shifted from Lahore to Amritsar after the partition of India and Pakistan.
- 1951: OBC was granted a license to operate as a commercial bank by the Reserve Bank of India.
- 1980: OBC was nationalized by the Government of India, along with five other banks.
- 1997: OBC launched its first ATM at Connaught Place, New Delhi.
- 2004: OBC launched its internet banking services.
- 2019: OBC merged with Punjab National Bank, another public sector bank in India.
Merger with Punjab National Bank
In 2019, the Government of India announced the merger of OBC with Punjab National Bank (PNB), another public sector bank in India. The merger was aimed at creating a stronger and more competitive bank that could provide better services to its customers. The merger was completed on April 1, 2020, and OBC ceased to exist as a separate entity. The merged entity, PNB, has become one of the largest public sector banks in India, with a combined business of over Rs. 18 lakh crores.
Impact of the Merger on Customers
The merger of OBC with PNB has had a significant impact on the customers of both banks. Some of the key implications of the merger include:
- Increased branch network: The merged entity has a combined branch network of over 11,000 branches, providing customers with greater access to banking services.
- Improved product offerings: The merged entity offers a wider range of banking products and services, including loans, deposits, credit cards, and insurance products.
- Enhanced digital banking: The merged entity has invested heavily in digital banking, providing customers with a range of online and mobile banking services.
- Simplified account management: The merger has simplified account management for customers, with a single account number and a single set of account statements.
| Bank | Number of Branches | Total Business |
|---|---|---|
| Oriental Bank of Commerce | 2,300 | Rs. 2.5 lakh crores |
| Punjab National Bank | 7,000 | Rs. 15 lakh crores |
| Merged Entity (PNB) | 11,000 | Rs. 18 lakh crores |
Products and Services Offered by OBC
Before its merger with PNB, OBC offered a range of banking products and services to its customers, including:
- Deposit accounts: OBC offered a range of deposit accounts, including savings accounts, current accounts, and term deposits.
- Loans: OBC offered a range of loans, including personal loans, home loans, car loans, and business loans.
- Credit cards: OBC offered a range of credit cards, including classic credit cards, gold credit cards, and platinum credit cards.
- Insurance products: OBC offered a range of insurance products, including life insurance, health insurance, and general insurance.
- Investment products: OBC offered a range of investment products, including mutual funds, stocks, and bonds.
Key Features of OBC’s Products and Services
Some of the key features of OBC’s products and services include:
- Competitive interest rates: OBC offered competitive interest rates on its deposit accounts and loans.
- Flexible repayment options: OBC offered flexible repayment options on its loans, including EMI and bullet repayment options.
- Convenient banking: OBC offered convenient banking services, including online banking, mobile banking, and ATM services.
- Customer support: OBC offered customer support services, including phone banking, email support, and branch banking.
What happened to Oriental Bank of Commerce after its merger with Punjab National Bank?
+Oriental Bank of Commerce ceased to exist as a separate entity after its merger with Punjab National Bank. The merged entity, PNB, has become one of the largest public sector banks in India, with a combined business of over Rs. 18 lakh crores.
What are the benefits of the merger of OBC with PNB for customers?
+The merger of OBC with PNB has resulted in a stronger and more competitive bank that can provide better services to its customers. The merged entity has a combined branch network of over 11,000 branches, providing customers with greater access to banking services. Additionally, the merged entity offers a wider range of banking products and services, including loans, deposits, credit cards, and insurance products.
What are the key features of OBC’s products and services?
+OBC’s products and services offered competitive interest rates, flexible repayment options, convenient banking, and customer support. The bank also offered a range of deposit accounts, loans, credit cards, insurance products, and investment products.
