Punjab National Bank Allocates ₹3,400 Crore for IT and AI Upgrades Amid Growing Cyber Threats
Punjab National Bank Embarks on ₹3,400 Crore IT Spending Plan
State-run Punjab National Bank has received board approval for an IT spending plan of ₹3,400 crore, covering investments in artificial intelligence, large-scale technology upgrades, and digital innovation initiatives. The bank plans to appoint a consultant for its AI initiatives and develop a dedicated strategy to tackle emerging cyber-fraud risks.
The move comes as banks grapple with increasingly sophisticated cyber fraud and digital scams, including emerging threats such as Claude Mythos and AI-enabled phishing. In response to these risks, the bank has created a new vertical called the Strategic Innovation Lab, which will train over 200 young engineering professionals within the bank to strengthen its technology and AI capabilities.
Q4 Performance Review
In its Q4 performance, Punjab National Bank reported a net profit of ₹5,225 crore, up 14% from ₹4,567 crore a year ago. Despite a 3.5% decline in net interest income (NII) to ₹10,380 crore from ₹10,756 crore, the bank's domestic net interest margin (NIM) stood at 2.61% for the quarter, compared to 2.96% in the year-ago quarter.
| Quarter | Net Interest Income (₹ crore) | Domestic Net Interest Margin (%) |
|---|---|---|
| Q4FY26 | ₹10,380 | 2.61 |
| Q4FY25 | ₹10,756 | 2.96 |
The bank's domestic deposits grew 9.1% year-on-year, while Casa deposits grew 6.2%. Savings bank individual deposits, which the bank considers core deposits, grew 9.2%. The bank's revamped Casa and savings bank schemes mobilized over 47 lakh (4.7 million) quality accounts, bringing in around ₹22,000 crore of savings bank deposits.
Government Support for MSMEs
On the government's recent announcement on the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, Punjab National Bank's managing director and chief executive, Ashok Chandra, said that support has come at the right time. The bank's MSME advances increased 19.9% on-year to ₹1,95,027 crore. With the credit guarantee now available, banks will be in a position to extend additional support and liquidity to viable businesses.
Investor Takeaway
Banks are investing in IT and AI upgrades to tackle growing cyber threats.
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