PNB boosts cybersecurity budget by 50% as AI models including Anthropic's Mythos raise threats

PNB Allocates ₹7-8 Billion to Counter AI-Driven Digital Threats

Punjab National Bank (PNB) has significantly increased its cybersecurity spend, earmarking approximately 20% of its technology budget—roughly ₹7 billion to ₹8 billion ($73.5 million - $84 million)—for the current financial year1

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. This represents more than a 50% increase from the previous year, signaling the state-run lender's urgent response to escalating digital threats. Executive Director D Surendran emphasized that the bank will not compromise on this expenditure and is prepared to increase spending further if necessary1

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Rising Digital Fraud Threats and Advanced AI Models Drive Investment

The cybersecurity push comes amid heightened regulatory focus on risks emerging from advanced AI models, particularly Anthropic's Mythos1

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. Last month, India's finance minister Nirmala Sitharaman convened meetings with heads of top banks to gauge their preparedness against AI-related cybersecurity risks1

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. The central bank has also engaged in discussions with global regulators, lenders, and government officials to understand potential vulnerabilities posed by these emerging technologies1

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AI and Cybersecurity Overhaul Includes 24/7 Audit Process

PNB is fast-tracking procurement of security tools, including firewalls and systems designed to address vulnerabilities across its digital infrastructure1

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. Surendran revealed that the bank has implemented a 24/7 audit process to identify critical vulnerabilities faster, marking a shift from periodic assessments to continuous monitoring1

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. To support its long-term digital strategy, PNB has established a Strategic Innovation Lab focused on emerging technologies and AI-led banking solutions2

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. The bank has identified more than 200 engineering professionals from premier institutions, including IITs and NITs, to contribute toward AI development, cybersecurity systems, and advanced analytics platforms2

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Strong Financial Performance Supports Technology Investments

The New Delhi-based lender reported a more than 14% rise in net profit to ₹52.25 billion, supported by healthy loan growth of 12.7% year-on-year and improving asset quality1

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. Deposits rose 9.2% during the same period1

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. For financial year 2026/27, PNB targets 12-13% loan growth, driven by credit to small and medium-sized enterprises and retail loans, with deposit growth expected at 9-10%1

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. These teams will work on strengthening critical banking infrastructure spanning mobile banking applications, internet banking services, ATM networks, and backend financial systems2

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. As AI models become more sophisticated, banks face an evolving threat landscape that requires constant vigilance and investment in defensive technologies to protect customer data and maintain trust in digital banking channels.