Punjab National Bank has increased its allocation towards cybersecurity for the current financial year as lenders review risks linked to artificial intelligence and digital banking systems, as per a Reuters reports.
The public sector lender has set aside around ₹700 crore to ₹800 crore for cybersecurity expenditure, accounting for nearly 20% of its technology budget. Bank officials said the allocation is more than 50% higher than the previous year’s spending.
The bank said additional funds may be allocated if requirements increase during the year.
The higher spending comes as regulators and banks assess possible risks arising from advanced AI systems, including models such as Anthropic’s Mythos.
Last month, Finance Minister Nirmala Sitharaman met heads of major banks to review preparedness against AI-related cybersecurity threats.
The Reserve Bank of India has also reportedly held discussions with lenders, regulators and government officials on potential risks associated with the growing use of AI tools.
Banks have been reviewing internal systems as digital transactions and technology-led services continue to expand across the sector.
PNB said it is accelerating procurement of cybersecurity infrastructure, including firewalls and monitoring systems used to identify vulnerabilities.
The lender has also increased the frequency of audits and moved to continuous monitoring processes across critical systems. According to the bank, audit operations are now being conducted on a 24-hour basis to improve the identification of operational risks and system-related issues.
Several banks have been strengthening cybersecurity measures following the rise in online banking activity and digital payment volumes.
Separately, the lender reported a more than 14% increase in net profit to ₹5,225 crore for the latest quarter.
Loan growth stood at 12.7% year-on-year, while deposits rose 9.2%. The bank expects credit growth of 12-13% during FY27, supported by retail and small business lending. Deposit growth is projected at 9-10%.
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As of May 6, 2026, 1:39 pm, Punjab National Bank share price was trading at ₹108.78, up 0.82% from the previous closing price.
Banks are increasing spending on cybersecurity and digital monitoring systems as regulators examine risks linked to AI adoption and rising digital financial activity.
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Published on: May 6, 2026, 2:59 PM IST
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