Named Entity Recognition (NER) is a task to discover the Named Entities (NEs) in a document and then categorize these NEs into diverse Named Entity classes such as Name of Person, Location, River, Organization etc. Since, huge amount of work in NER has been done in English; so, we now need to concentrate ourselves in performing NER in the Indian languages (IL). As, Punjabi is not only the Indian language but also it is the official language of Punjab, So we have developed NER based system for Punjabi. This paper discusses about NER, approaches of NER and the results achieved by us by performing NER in Punjabi using Hidden Markov Model (HMM).