Punjab Gramin bank has come into existence on 12.09.2005 after the amalgamation of three erstwhile Regional Rural Banks of Punjab State. These RRBs were established under Sub-section (1) of Section 3 of Regional Rural Bank Act 1976 (21 of 1976) and GOI issued notification on 12.09.2005 for the amalgamation of these RRBs in exercise of powers conferred by sub-section (1) of section 23-A of the RRB Act, 1976 (21 of 1976). The bank is sponsored by Punjab National Bank,  one of the pioneer banking institutions in the country.  The bank is established with the sole and sacred objective to meet the credit needs of the rural area with a view to uplift rural poor by dispension of credit to make them self reliant and offer opportunity for safe deployment of their savings and using the same for national development. The bank is fulfilling the credit needs of all sections of the society. As per the policy of the GOI the bank is giving priority of financing through SHGs and giving credit to the farmers through KCC. The bank is also giving technical and financial guidance to the farmers by organising kisan goshties and forming Kisan Clubs. The area of operation of the bank extends to eight districts of state of Punjab namely Kapurthala, Firozpur, Moga, Gurdaspur, Amritsar, Hoshiarpur, Ropar, Mohali, Tarn Taran & Nawanshehar.