India’s Punjab National Bank (PNB) is increasing its spending on cybersecurity and speeding up the purchase of new technology to protect itself from growing digital threats. These now include risks from advanced artificial intelligence systems such as those developed by Anthropic. On Tuesday, a senior official from PNB Bank said that they have set aside about 20% of their total technology budget for cybersecurity this financial year.Â
This amounts to around 7-8 billion rupees (about $73-84 million), an increase of more than 50 per cent from the amount spent by the bank last year. The senior officer from PNB Bank says the bank was prepared to spend more if required, underscoring the importance attached to security. This decision comes at a time when regulators in india are paying close attention to risks linked to AI.
Recently, Finance Minister Nirmala Sitharaman met with leaders of major banks to review how prepared they are to handle cybersecurity threats related to AI. India’s central bank is also discussing these risks with global regulators and financial institutions. To strengthen its systems, PNB is quickly buying security tools, such as firewalls and other protective technologies.
The bank has also improved its audit system. Instead of checking systems at intervals, it now monitors them 24/7. This helps detect problems faster and respond quickly to any threats.
Along with focusing on security, PNB is also seeing strong business growth. The bank recently reported a more than 14% increase in its net profit, reaching 52.25 billion rupees.
This growth was supported by higher lending and better asset quality. PNB loans grew by 12.7% compared to last year, while deposits increased by 9.2%. Looking ahead, the bank expects loans to grow by 12-13% in the next financial year, mainly driven by lending to small businesses and retail customers. Deposits are expected to grow by about 9-10%.
