Punjab National Bank has decided to invest almost ₹3,400 crore on artificial intelligence, cybersecurity, and digital transformation initiatives. The move comes as banks face a sharp rise in cyber fraud, increasingly sophisticated AI-driven scams, and mounting pressure to reinforce digital security infrastructure.

The investment will focus heavily on AI-led fraud monitoring, predictive analytics, digital banking innovation, and customer service automation.

The state-run bank has allocated about 20% of the fund for cybersecurity which is roughly around ₹700-₹800 crore ($73.5 million - $84 million) for the ‌current financial year, as per Executive Director D Surendran. He added that this allocation is ⁠more than 50% higher than the previous year.

"We don't want to compromise on this kind of expenditure," Surendran said, adding the bank will increase the ‌spending further if required.

The move comes as regulators heighten their focus on cybersecurity threats linked to advanced AI systems, including Anthropic’s Mythos model. According to Reuters, the Reserve Bank of India has also been engaging with international regulators, lenders, and government officials to better understand emerging threats.

Surendran said PNB is accelerating the procurement of cybersecurity infrastructure, including firewalls and other protection systems, to strengthen its defenses against vulnerabilities.

"We have increased our frequency of audit… now we have made our audit process 24/7 so that the criticality will be identified fast," Surendran said.