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Lala Harkrishan Lal who had returned from England with ideas regarding commerce and industry, was eager to give them practical shape. The founding board was drawn from different parts of India professing different faiths and a varied back-ground with, however, the common objective of providing country with a truly national bank which would further the economic interest of the country. The first Board of 7 Directors comprised of Sardar Dayal Singh Majithia, who was also the founder of Dayal Singh College and the Tribune; Lala Lalchand one of the founders of DAV College and President of its Management Society; Kali Prosanna Roy, eminent Bengali pleader who was also the Chairman of the Reception committee of the Indian National Congress at its Lahore session in 1900; Lala Harkishan Lal who became widely known as the first industrialist of Punjab; EC Jessawala, a well known Parsi merchant and partner of Jamshedji & Co. It had total staff strength of nine and the total monthly salary amounted to Rs. The first branch outside Lahore was opened in Rawalpindi in 1900.of Lahore; Lala Prabhu Dayal, a leading Rais, merchant and philanthropist of Multan; Bakshi Jaishi Ram, an eminent Civil Lawyer of Lahore; and Lala Dholan Dass, a great banker, merchant and Rais of Amritsar. Dayal Singh Majithia was the first Chairman, Lala Harkishan Lal, the first secretary to the Board and Shri Bulaki Ram Shastri Barrister at Lahore, was appointed Manager. The Bank made slow, but steady progress in the first decade of its existence. JH Maynard, the then Financial Commissioner, Punjab, remarked...."Your Bank survived..doubt due to good management".He was openly dubbed as a Revolutionary and an instigator of the armed forces.

In 1962, it amalgamated the Indo-Commercial Bank with it. While sympathizing with and aiding every movement made for progress, Lala Lajpat Rai identified himself very closely with Arya Samaj, in which he found ample scope for the exercise of his patriotism, philanthropy and religious zeal.The prospectus of the bank was published in the Tribune, and the Urdu Akhbar-e-Am and Paisa Akhbar.On 23rd May, 1894, the founders met at the Lahore residence of Sh.The 1929 Wall Street crash plunged the world into a severe economic crisis.It was during this period that the Jalianwala Bagh Committee account was opened in the Bank, which in the decade that followed, was operated by Mahatma Gandhi and Pandit Jawaharlal Nehru. On March 31, 1947, the Bank officials decided to leave Lahore and transfer the registered office of the Bank to Delhi and permission for transfer was obtained from the Lahore High Court on June 20, 1947.

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