Punjab National Bank

Punjab National Bank is a public sector bank founded in 1894 and headquartered in New Delhi. It operates 10,261 branches, with total assets of approximately Rs 1,976,227.84 crore on the latest published figures.

Founded in 1894, PNB is one of the oldest banks in India and operates the second-largest public sector network at 10,261 branches, with particular density across north India. Total assets are around Rs 19.76 lakh crore. For a startup headquartered in Delhi NCR, Punjab, Haryana or the broader north, PNB usually offers the shortest physical distance to a Member Institution branch with genuine MSME lending volume.

Its role in the Credit Guarantee Scheme for Startups. Punjab National Bank is one of 40 institutions registered with the National Credit Guarantee Trustee Company as a CGSS Member Institution (NCGTC MLI ID 6, classified as a public sector bank). Member Institutions are the lenders that actually extend credit under the scheme: you borrow from Punjab National Bank, and NCGTC guarantees Punjab National Bank against your default. That guarantee is what allows the facility to be extended to a DPIIT-recognised startup without collateral, with cover of up to Rs 20 crore per borrower, being 85 percent of the amount in default on loans up to Rs 10 crore and 75 percent above that.

What this means in practice. Approach the MSME or SME desk rather than a retail branch. As with every public sector lender, expect a documentation-led appraisal and a committee decision, and expect to supply the twelve months of audited monthly statements the scheme requires before any CGSS conversation becomes concrete.

The terms are the bank's, not the scheme's. This is the point founders most often miss. CGSS fixes the guarantee, not the loan. The interest rate, tenure, moratorium, repayment schedule and how the Annual Guarantee Fee is passed through to you are all set by Punjab National Bank under its own credit policy, and they differ materially between Member Institutions for an identical borrower. Nor does registration oblige Punjab National Bank to lend: it appraises you on its normal credit standards first and applies the guarantee second. Approaching more than one Member Institution is almost always worth the effort.