GB 0074 CLC/B/207/PC01 - P & O BANKING CORPORATION LIMITED: CORPORATE

Identity area

Reference code

GB 0074 CLC/B/207/PC01

Title

P & O BANKING CORPORATION LIMITED: CORPORATE

Date(s)

  • 1920-1939 (Creation)

Level of description

Extent and medium

0.12 linear metres

Context area

Name of creator

Biographical history

The P & O Banking Corporation Limited was established in 1920 by James MacKay (later Lord Inchcape) to develop the private banking business of the P & O Company. Under MacKay's stewardship (as Managing Director from 1914 and Chairman from 1915) the P & O had expanded rapidly, acquiring the British India Company amongst many others, and the bank was to be both a commercial venture and a device to manage the financial interests of the business.

On its establishment the Corporation acquired Allahabad Bank in India and opened offices in Colombo, Shanghai, Hong Kong, Singapore and Canton (now Guangzhou). Allahabad Bank was always operated as a subsidiary, and wasn't absorbed into the central organisation of the P & O Banking Corporation. The Corporation later expanded further in India under its own name, in Calicut (now Kozhikode in Kerala), Bombay and Madras (and the surrounding region). Lloyds and National Provincial bought shares in the new Corporation, reflecting the expectancy that a bank backed by the P & O would be a success.

In 1927 the Chartered Bank of India, China and Asia acquired seventy five percent of the Corporation's shares, effectively rendering the P & O Banking Corporation a subsidiary. In 1928 Chartered took over most of the remaining shareholding, and many of its Directors were elected to the Board of the Corporation in the subsequent years.

The P & O continued as a subsidiary company of the Chartered Bank for a further decade, though the Chartered Bank became dissatisfied with its performance. While the P & O had some merits as an institution (especially the business that came from the associated companies of the wider P & O group, and the success of Allahabad Bank in northern India), as a latecomer in international banking it often had to take on clients that existing institutions had refused. Furthermore many of the Corporation's branches existed in locations (such as Shanghai, Hong Kong and Bombay) that were served by other banks, including the Chartered Bank. With the down turn of the world economy in the 1930s the P & O was operating in a reduced market place as a direct competitor to the branches of its parent company for considerably reduced profit, an untenable position for the Corporation and its owner.

The Chartered Bank of India, China and Australia took the decision to liquidate The P & O Banking Corporation in 1938. The liquidation date was set for 31 January 1939, when the bank's branches closed and the liquid assets were transferred to the Chartered Bank (it appears that they were transferred to the nearest branch of the Chartered Bank in many cases).

The Corporation's headquarters in Leadenhall Street, London, remained open as a branch of Chartered, and appears to have handled the final breaking up of the bank's assets, and the longer term issues around the dissolution of the Corporation.

P & O Banking Corporation Nominees (the subsidiary that handled the shares owned by the Bank) continued in name until the late 1960s. Allahabad Bank continued to be run separately as a subsidiary of Chartered Bank, as the nature of its business kept it as a viable business in its own right. It was nationalised by the Indian Government in 1969, and still exists as a private body.

Geographical range:

India, Sri Lanka, China and Singapore

Archival history

GB 0074 CLC/B/207/PC01 1920-1939 sub fonds 0.12 linear metres P & O Banking Corporation Limited

The P & O Banking Corporation Limited was established in 1920 by James MacKay (later Lord Inchcape) to develop the private banking business of the P & O Company. Under MacKay's stewardship (as Managing Director from 1914 and Chairman from 1915) the P & O had expanded rapidly, acquiring the British India Company amongst many others, and the bank was to be both a commercial venture and a device to manage the financial interests of the business.

On its establishment the Corporation acquired Allahabad Bank in India and opened offices in Colombo, Shanghai, Hong Kong, Singapore and Canton (now Guangzhou). Allahabad Bank was always operated as a subsidiary, and wasn't absorbed into the central organisation of the P & O Banking Corporation. The Corporation later expanded further in India under its own name, in Calicut (now Kozhikode in Kerala), Bombay and Madras (and the surrounding region). Lloyds and National Provincial bought shares in the new Corporation, reflecting the expectancy that a bank backed by the P & O would be a success.

In 1927 the Chartered Bank of India, China and Asia acquired seventy five percent of the Corporation's shares, effectively rendering the P & O Banking Corporation a subsidiary. In 1928 Chartered took over most of the remaining shareholding, and many of its Directors were elected to the Board of the Corporation in the subsequent years.

The P & O continued as a subsidiary company of the Chartered Bank for a further decade, though the Chartered Bank became dissatisfied with its performance. While the P & O had some merits as an institution (especially the business that came from the associated companies of the wider P & O group, and the success of Allahabad Bank in northern India), as a latecomer in international banking it often had to take on clients that existing institutions had refused. Furthermore many of the Corporation's branches existed in locations (such as Shanghai, Hong Kong and Bombay) that were served by other banks, including the Chartered Bank. With the down turn of the world economy in the 1930s the P & O was operating in a reduced market place as a direct competitor to the branches of its parent company for considerably reduced profit, an untenable position for the Corporation and its owner.

The Chartered Bank of India, China and Australia took the decision to liquidate The P & O Banking Corporation in 1938. The liquidation date was set for 31 January 1939, when the bank's branches closed and the liquid assets were transferred to the Chartered Bank (it appears that they were transferred to the nearest branch of the Chartered Bank in many cases).

The Corporation's headquarters in Leadenhall Street, London, remained open as a branch of Chartered, and appears to have handled the final breaking up of the bank's assets, and the longer term issues around the dissolution of the Corporation.

P & O Banking Corporation Nominees (the subsidiary that handled the shares owned by the Bank) continued in name until the late 1960s. Allahabad Bank continued to be run separately as a subsidiary of Chartered Bank, as the nature of its business kept it as a viable business in its own right. It was nationalised by the Indian Government in 1969, and still exists as a private body.

Geographical range:

India, Sri Lanka, China and Singapore

Deposited in 1989.

Records of the P & O Banking Corporation including records created at the foundation of the company, records and reports of the annual meetings of the company, and records dealing with the liquidation of the Corporation.

Arranged as follows:

CLC/B/207/PC01/01 - Foundation

CLC/B/207/PC01/02 - Board

CLC/B/207/PC01/03 - Annual General Meetings

These records are available for public inspection, although records containing personal information are subject to access restrictions under the UK Data Protection Act, 1998.

48 hours notice required for access.

PLEASE NOTE: Permission for access to records less than 45 years old should be sought from the depositor.

Copyright is held by the depositor.

English

Please see online catalogues at: http://search.lma.gov.uk/opac_lma/index.htm

Compiled in compliance with General International Standard Archival Description, ISAD(G), second edition, 2000; National Council on Archives Rules for the Construction of Personal, Place and Corporate Names, 1997.

Added January 2014 Salsette Island Mumbai South East Asia Singapore South Asia Sri Lanka Colombo P & O Banking Corporation Limited Finance Financial institutions Banks Overseas banks Maharashtra India Guangzhou Guangdong China East Asia Shanghai Shanghai Shi Madras Kerala Hong Kong

Immediate source of acquisition or transfer

Deposited in 1989.

Content and structure area

Scope and content

Records of the P & O Banking Corporation including records created at the foundation of the company, records and reports of the annual meetings of the company, and records dealing with the liquidation of the Corporation.

Appraisal, destruction and scheduling

Accruals

System of arrangement

Arranged as follows:

CLC/B/207/PC01/01 - Foundation

CLC/B/207/PC01/02 - Board

CLC/B/207/PC01/03 - Annual General Meetings

Conditions of access and use area

Conditions governing access

These records are available for public inspection, although records containing personal information are subject to access restrictions under the UK Data Protection Act, 1998.

48 hours notice required for access.

PLEASE NOTE: Permission for access to records less than 45 years old should be sought from the depositor.

Conditions governing reproduction

Copyright is held by the depositor.

Language of material

  • English

Script of material

  • Latin

Language and script notes

English

Physical characteristics and technical requirements

Finding aids

Please see online catalogues at: http://search.lma.gov.uk/opac_lma/index.htm

Allied materials area

Existence and location of originals

Existence and location of copies

Related units of description

Related descriptions

Notes area

Alternative identifier(s)

Access points

Place access points

Name access points

Genre access points

Description control area

Description identifier

Institution identifier

London Metropolitan Archives

Rules and/or conventions used

Compiled in compliance with General International Standard Archival Description, ISAD(G), second edition, 2000; National Council on Archives Rules for the Construction of Personal, Place and Corporate Names, 1997.

Status

Level of detail

Dates of creation revision deletion

Language(s)

  • English

Script(s)

    Sources

    Accession area