Himachal Pradesh Gramin Bank, sponsored by Punjab National Bank came into existence with the amalgamation of two RRBs, viz. Himachal Gramin Bank, Mandi (sponsored by Punjab National Bank) and Parvatiya Gramin Bank, Chamba (sponsored by State Bank of India) vide Government of India Notification dated 15th February 2013 under section 21 of the RRBs Act, 1976 with its Head Office at Mandi. The area of operation of the Bank is spread over to 12 districts of Himachal Pradesh. The Bank is authorized to affect banking transactions as permitted under section 5(b) of Banking Regulations Act, 1949.