PNB union seeks audit of 10,500 branches after ₹11.24 cr fraud, multiple suspensions; warns against ‘knee-jerk’ action
The India Punjab National Bank Officers’ Federation (AIPNBOF) has expressed concern over the recent suspension of several branch heads across the country following instances in which unauthorised people were found sitting before branch computers and standing in cash sections.
The bank has taken these strict measures against the backdrop of an incident at its Greater Noida branch, where customers reported money missing from their savings accounts and fixed deposits.
A female employee is suspected of carrying out the fraud. She allegedly acted in collusion with outsiders, used the branch manager’s password to transfer funds from customers’ accounts without their knowledge.
The federation's circular, dated October 30, and addressed to the managing director and chief executive of PNB said that while it does not intend to defend any officer or employee found responsible for the misconduct, it wants the management to examine the systematic and administrative circumstances that may have contributed to such lapses in the first place.
“Knee-jerk reaction will not serve any purpose,” said Krishna Kumar, the general secretary of AIPNBOF in an X (formerly Twitter) post, emphasising the need for a thorough examination rather than immediate punitive action.
As a result, the federation has asked the PNB management to undertake a “comprehensive and impartial” audit of all approximately 10,500 branches of the bank, covering the following aspects:
- A comparison between sanctioned staff strength and the actual number of employees available at each branch. According to the federation, staffing requirements must be assessed based on factors such as business volume, customer footfall, location, operational requirements and workload.
- Review of the existing staffing normsto determine whether they are adequate for the effective functioning of branches and whether employees have sufficient support to discharge their responsibilities.
The federation has also called for the roles of the corporate office, zonal officers and circle offices to be examined, particularly in ensuring adequate staffing, employee training, knowledge enhancement and capacity building.
It has urged the bank to assess whether employees received proper training in operational procedures, cash management, security protocols, fraud prevention and the appropriate use of banking systems. The frequency, adequacy and practical effectiveness of such training should also be reviewed.
AIPNBOF has further sought scrutiny of how responsibilities relating to manpower planning, monitoring, guidance and policy implementation are distributed across different administrative levels.
The federation stressed that accountability should not rest solely with branch-level officials. The bank must also examine whether senior management provided them with the manpower, training, systems, guidance and operational support needed to carry out their duties effectively.
The federation has requested PNB management to initiate an objective and independent audit covering all branches and administrative levels. It has also sough that the audit findings, along with the action taken against individuals found responsible at various offices, be shared with the federation.
“We reiterate that the Federation is not opposed to strict action against proven negligence, misconduct or violation of Bank guidelines. What we seek is uniformity, fairness and accountability at every level of the organisation. Isolated punitive action, without examining the wider institutional and administrative shortcomings, may address the immediate situation but will not necessarily prevent recurrence of such incidents,” the circular read.
Eshita Gain is a digital journalist at Mint, where she joined in May 2025. She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. <br><br> While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments. <br><br> She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments. She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. <br><br> Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging. <br><br> Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers. She aims to bridge the gap between technical financial language and everyday understanding. Outside the newsroom, Eshita enjoys reading non-fiction, and exploring new places, constantly seeking fresh perspectives and stories beyond headlines.
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