Lala Company Meaning: The Real Punjab National Bank Story
Ever been mocked for working at a "lala company"? Here's the real 1894 story of Punjab National Bank's founders, and why the word deserves respect, not ridicule.
"Lala company" isn't an insult, it's history. The term traces back to 1894, when a group of Punjabi businessmen, all named Lala, pooled roughly ₹20,000 to start a bank for Indians, at a time when British-run banks controlled Indian money. That bank became Punjab National Bank. Here's the real story, and why calling your company "lala" deserves respect, not ridicule.
TL;DR- "Lala company" traces back to 1894 and the founding of Punjab National Bank
- Lala Lajpat Rai and fellow "Lala" businessmen started PNB with about ₹20,000
- The goal: an Indian-owned bank when British banks controlled Indian money
- PNB is still running strong more than 130 years later
- Lesson for employees: respect the founders who built the company that hired you
Where Does the Term "Lala Company" Actually Come From?
Walk into almost any Indian office and you'll hear it: "arey yeh toh lala company hai." Said in jest, sometimes to needle the owner, sometimes just office banter about a smaller or traditionally run business. Most people using the phrase have no idea it points to real history. The word "lala" wasn't always a jab. It once belonged to a set of respected Punjabi businessmen who did something extraordinary in 1894, and their work still touches Indian banking today.
Who Were the Founders Behind Punjab National Bank?
The story starts with Lala Lajpat Rai, who called on his friends, all addressed as "Lala", to start a bank of their own. Lala Harkishan Lal, Lala Lalchand and Lala Dholan Dass joined in, and together they pooled around ₹20,000. Lala Lajpat Rai made the first investment himself. When word got out, people scoffed: "lala company hai, chhoti bank hai, kya karenge." That small, mocked venture was Punjab National Bank.
| Year / Figure | Milestone in the "Lala Company" Story |
|---|---|
| 1894 | Punjab National Bank founded in Lahore by Lala Lajpat Rai and fellow "Lala" businessmen |
| ~₹20,000 | Initial capital pooled to start the bank, with Lala Lajpat Rai as the first investor |
| Founders | Lala Lajpat Rai, Lala Harkishan Lal, Lala Lalchand, Lala Dholan Dass, and other partners |
| Purpose | Give Indians access to banking and credit at a time when British-run banks served British interests first |
| Today | Punjab National Bank is India's second-largest public sector bank, still operating after 130+ years |
Why India Needed an Indian-Owned Bank in 1894
In 1894, banking in India ran on British terms. British-owned banks held Indian deposits but were built to serve British interests, not Indian borrowers or Indian businesses. Getting credit as an Indian entrepreneur was nearly impossible. Lala Lajpat Rai and his partners saw this gap clearly and decided Indians needed a bank that was owned by Indians and answerable to Indians, not one more branch of colonial finance.
From ₹20,000 Startup to India's Second-Largest Public Bank
What began as a "lala company" with roughly ₹20,000 in capital is now Punjab National Bank, India's second-largest public sector bank, serving crores of customers more than 130 years later. The trajectory is the point: nobody starting small stays small by accident. Every large institution you respect today was once a "lala company" that someone chose to mock instead of back.
Why We Mock the Companies That Gave Us Our First Job
I see this pattern constantly in offices: people call their employer a "lala company", roll their eyes at the owner, and complain about how things are run. What they forget is that this same company hired them when nobody else would, and gave them the opportunity that pays their bills today. Mocking the hand that opened the door rarely helps a career; it just signals where someone's growth stalls.
The Leadership Lesson Every "Lala Company" Employee Should Learn
This is exactly the mindset I work on with teams in leadership training programs: respect for the founder's struggle isn't optional politeness, it's a leadership habit. Founders take risks employees never see, and understanding that struggle is often what separates someone who grows into leadership from someone who stays stuck complaining about "lala company" culture.
Lala Company Meaning: Why the Word Deserves Respect, Not Mockery
So the next time you're tempted to mock a "lala company", remember where that word actually comes from. As I say in the video: "ye lala bank, ye lala company kal jaakar Punjab National Bank bhi ban sakti hai" — this "lala" bank, this "lala" company, could one day become the next Punjab National Bank. If you want your team to build that kind of respect and ownership, explore how I work with organizations through motivational speaking and corporate sessions.
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Avinash Chate TEDx Speaker · Founder, The Future Corporate · 11+ yrs experience Avinash has trained Indian Army, BRO, RBI, BARC, JSW Steel and 1000+ corporate leaders across India. His work focuses on leadership development, communication skills, and behavioural training rooted in Indian values and modern business needs. |
Frequently Asked Questions
What does "lala company" mean?
"Lala company" is a term Indian office workers use, often jokingly, for a small or traditionally run business. It comes from a real history: in 1894, businessmen named "Lala" founded Punjab National Bank to give Indians their own financial institution.
Where did the term "lala company" come from?
The term originated with Lala Lajpat Rai and a group of fellow Punjabi businessmen, also called "Lala", who pooled about ₹20,000 in 1894 to start Punjab National Bank in Lahore, at a time when British banks dominated Indian finance.
Is Punjab National Bank really a "lala company"?
Yes. Punjab National Bank was founded in 1894 by Lala Lajpat Rai, Lala Harkishan Lal, Lala Lalchand and other partners, all addressed as "Lala". What started as their small venture is today India's second-largest public sector bank.
Why shouldn't we mock a "lala company"?
Because every "lala company" started as someone's ₹20,000 idea and a hiring decision that gave you your first opportunity. Mocking the founder's journey, instead of respecting it, is a habit that holds back your own career growth.
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By Avinash Chate — Maharashtra’s #1 Corporate Trainer & Motivational Speaker. .