Consumer Commission fined the branch manager of PSU Bank in ATM fraud case

The District Consumer Dispute Redressal Commission in Shamli has fined the branch manager of Punjab National Bank (PNB), Gadhipukhta a total of ₹55,153 in a case involving an unlawful withdrawal of ₹10,000.

Actual Case

A man named Rampal Singh, who lives in Rajhad village, filed a complaint on October 3, 2018 against two banks. (1)PNB Gadhipukhta Branch (2)ICICI Bank, Shamli Branch

He claimed to have a PNB Gadhipukhta savings account. He took out ₹10,000 from an ICICI Bank ATM in Shamli on July 23, 2018. He then had ₹2,062.59 remaining in his account. However, on July 24, 2018, he received an SMS warning stating that a further ₹10,000 had been taken out of his account while he was at home with his ATM card. He was perplexed by this and called his bank right away. He was instructed by the bank employees to make a complaint by calling the toll-free number. He claimed to have done so on August 3, 2018, but he never heard back. Later, on August 27, 2018, he even mailed a legal notice.

Meanwhile, on August 29, 2018, he received ₹16,044 in his account as a sugarcane payment. However, the bank only deposited ₹7,953 into his account after deducting ₹7,937 in costs and adjusting ₹153 (overdraft). When Rampal Singh visited the Shamli branch of ICICI Bank to view the CCTV footage, he was instructed to return in a week. The problem persisted even after multiple visits to the branch. He made a formal request to see the video on September 20, 2018, but once more, nothing happened.

Consumer Commission Decision

The Commission, which was chaired by Hemant Kumar Gupta and included members Amarjit Kaur and Abhinav Agarwal, heard the case and decided in favor of Rampal Singh. 

They issued the following directives: 

The withdrawn sum of ₹10,153 must be given back to Rampal Singh together with 12% simple interest. 

He will receive ₹20,000 for his financial, emotional, and physical suffering. ₹5,000 will be used to cover legal costs. 

For unfair practices and poor service, the bank was also fined ₹20,000, which will be paid to the government treasury rather than the complainant. 

The case describes how a customer lost money as a result of an unauthorized ATM withdrawal. The consumer court intervened and punished the bank for its carelessness after the bank failed to address the customer's numerous complaints.

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PSU Bank is designated by the Ministry of Finance as the official liquidator for thirty-two bank failures

Punjab National Bank(PNB) is designated by the Ministry of Finance as the official liquidator for thirty-two bank failures. The central government has designated the Punjab National Bank (PNB) as the designated liquidator for thirty-two bankrupt institutions. According to the Ministry of Finance's official notification dated June 3, 2025, which was issued in accordance with Section 39 of the Banking Regulation Act, 1949 (10 of 1949), the Central Government is stating that Punjab National Bank is qualified to serve as the official liquidator in the following banking companies' winding-up proceedings before the Calcutta High Court.

The List of banks is as follows:

1. Associated Bank of Tripura

2. Bank of Calcutta Ltd.

3. Beleghata Bank Ltd.

4. Bengal Bank Ltd.

5. Berhampore Bank Ltd.

6. Bishnupur Bank Ltd.

7. Calcutta Commercial Bank Ltd.

8. Calcutta Industrial Bank Ltd.

9. Calcutta National Bank Ltd.

10. Central Calcutta Bank Ltd.

11. Comrade Bank Ltd.

12. East Bengal Commercial Bank Ltd.

13. Eastern Traders Bank Ltd.

14. Economic Bank Ltd.

15. Girish Bank Ltd.

16. Hazradi Bank Ltd.

17. Kuver Bank Ltd.

18. Lakshmi Industrial Bank Ltd.

19. Mercantile Exchange Bank Ltd.

20. Nath Bank Ltd.

21. National Economic Bank Ltd.

22. Noakhali Union Bank Ltd.

23. Northern Bank Ltd.

24. Pacific Bank Ltd.

25. People’s Credit Bank Ltd.

26. Pioneer Bank Ltd.

27. Pioneer Commercial Bank Ltd.

28. Sonar Bangla Bank Ltd.

29. Sree Bank Ltd.

30. Sterling Bank Ltd.

31. Subarban Bank Ltd.

32. Tripura Modern Bank Ltd.

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Punjab National Bank(PNB) Q4 Net profit surges 52% YoY

With a net profit that increased 52% year over year (YoY) to Rs 4,567 crore from Rs 3,010 crore in Q4FY24, state-owned Punjab National Bank (PNB) announced a solid March quarter. Better asset quality and more interest revenue helped to sustain this strong growth. 

 Healthy rise in net interest income (NII) and non-interest income drove the 13.4% YoY increase in total income for Q4FY25, which came to Rs 36,705 crore. A consistent increase in lending activity was reflected in Net Interest Income (NII), which increased 4% YoY to Rs 10,757 crore. Additionally, non-interest income increased by 11% to Rs 4,716 crore.

On the operational front, PNB’s operating profit for Q4FY25 was Rs 6,776 crore, up 6% YoY, as the bank kept a check on operating expenses, which rose by only 6.1% YoY to Rs 8,697 crore.

PNB’s asset quality saw a marked improvement, with the gross non-performing assets (GNPA) ratio declining to 3.95% as of March 2025, compared to 5.73% a year ago. Net NPA (NNPA) also fell to 0.4% from 0.73%.

The bank’s provision coverage ratio (PCR), including technical write-offs, improved to 96.82%, up from 95.39% in the previous year.

For the full year FY25, PNB posted a net profit of Rs 16,630 crore, up 102% YoY. Total deposits grew 14.38% YoY to Rs 15.67 lakh crore, while global advances rose 13.56% to Rs 11.17 lakh crore.

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Branch Manager Suspended for raising voice against Leave Denial

At Punjab National Bank in New Delhi, a startling instance has surfaced. According to accounts, a branch manager was suspended for speaking out against the higher authority's decision to deny leave. 

The branch manager has submitted one day leave which was declined by the higher authority. The branch manager put this on his WhatsApp status – he wrote “Single Day Casual Leave is denied by Competent Authority. Why this kolaveri di?”

 To his astonishment, however, the bank administration promptly sent him an explanation letter. The branch manager allegedly broke the bank's social media policy, according to the management. According to the letter, bank workers should refrain from criticizing the bank's management and from participating in any social media groups that do so. The branch manager has five days to provide an explanation.

The branch manager responded that since the content was not offensive or defamatory and didn't include any private information, he hadn't broken the bank's social media policy. It was merely a private statement of concern about issues pertaining to corporate openness and employee welfare. He asserted that every Indian citizen has the inherent right to constructive criticism and peaceful expression.The branch manager has now being suspended and the case is going on.

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PSU Bank introduce new app for their Employees, is this app to track staff?

Another problem surrounds Punjab National Bank, one of India's biggest public sector banks. A new debate has emerged following the conclusion of the new transfer policy problem. 

Punjab National Bank has unveiled two new features for its staff: the PNB Aagman app for tracking attendance and a feedback system based on QR codes. The PNB Aagman app will be discussed in this post. 

This new software was released by PNB to track employees' locations and record their attendance. This implies that an employee can only record their attendance if they are present at their workplace. The app user will need to provide the app with their location in order to accomplish this. There are versions of the mobile app for iOS and Android.

PNB employees can download the app and mark attendance via this app. Everything seems to be super cool and hi-tech but the employees are not happy with it. Employees and Bank Associations have taken to social media to express their anger and grief regarding the app.

Users are protesting that the software infringes their privacy, as you can see from the tweets above. We Bankers Association claims that Punjab National Bank already uses a desktop biometric attendance marking system, so why is the bank using an app for attendance? The bank has been accused by the Association of live-tracking its workers. Workers are concerned that the software could be used to spy on them. 

The Bank Officers' Association has expressed grave worries regarding two new PNB-introduced systems: the customer feedback technique based on QR codes and the AAGMAN App for recording attendance. According to the group, these new methods cause needless stress at work and invade officers' privacy.

The app is location-based, which means it tracks where the officer is. It also seeks access to officers’ personal data, such as their contact list, phone calls, and other private information. The association pointed out that biometric attendance is already in place in the bank, which serves the same purpose. Therefore, introducing another system for attendance seems unnecessary and looks like an attempt to control the private lives of officers.

Users complain various issues with the app

1. The mobile app is not available on the Google Play Store, which is the official app store for Android. When an app is uploaded on the Google Play Store, Google checks the app and the app goes live only if it as per Google’s policies. In this case, the PNB Aagman app is not available on the Google Play Store means there might be some issue with the app.

2. The app does not seem to be working properly. When users downloaded the app for testing, the app kept on showing the message – Loading, and finally, the app crashed. This means the app has some developmental issues.

3. The app asks for various permissions, such as permissions to access phone calls, which completely violates the privacy of users. Such permissions are not needed for an attendance app. These permissions are needed to manage phone calls and contacts. Recently, Google and the Government of India have asked Citizens not to provide any permission that is irrelevant to the working of any app. This means that a camera app should not ask for phone permission, a calendar app should not ask for camera permission, and so on. So in this case, an attendance app should not ask for phone call permissions. The app is based on marking biometric via location tracking and so it should ask for location permissions only.

4. Users say that the bank has already implemented biometric attendance in desktops and the system is working flawlessly. When one system of attendance marking is working properly then why bank is spending money on mobile apps? Instead, this money should be utilised in the betterment of the existing system. The development and maintenance of mobile apps require a lot of funds and these could have been used to make the existing biometric system better.

Meanwhile, PNB Management is working hard to revamp the bank and improve customer service. What happens next – let’s see – whether the app will be implemented or not. What are your thoughts? Tell us in the comment section below.

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PSU Bank filed CBI complaint in Rs.16 Crore Fraud case

 In a significant ₹16-crore bank fraud case involving Punjab Lightning Industries Limited, situated in Industrial Area, Phase 2, Mohali, the Central Bureau of Investigation (CBI) has formally filed a chargesheet. The trial will start on June 4, 2025, at a special CBI court in Chandigarh. The case was first registered on June 27, 2024.

How the Bank Fraud Happened

According to the CBI’s chargesheet, the company’s directors Vinay Gupta and Urvashi Gupta had taken a loan of nearly ₹16 crore from Punjab National Bank (PNB). The loan was meant for the business’s working capital and commercial activities. However, instead of using the money for the business, they allegedly diverted the funds for personal use and to pay off loans of other companies owned by them.

What the Bank Discovered

The fraud came to light after the company stopped repaying the loan, which raised concerns at the bank. Punjab National Bank then conducted an internal investigation, which revealed shocking findings. During the audit of the company’s unit in Mohali, it was discovered that:

• No production was going on at the factory.
• There was no raw material or finished goods on site.
• The factory had been shut down for several months.

Misuse of Loan for Buying Property

The audit further revealed that Vinay Gupta used part of the loan amount to buy a house in Sector 15-A, Chandigarh, and the property was registered under his son’s name. He also bought another property in Sector 11, which clearly indicated that the funds were not being used for the business, but rather for personal gains.

Legal Action and CBI Investigation

Following the internal audit, PNB filed a complaint with the CBI, as the evidence pointed toward intentional default by the company directors. After investigating the matter, the CBI charged them under:

• Section 420 of the Indian Penal Code (IPC) – for cheating.
• Section 120-B of the IPC – for criminal conspiracy.
• Relevant sections of the Prevention of Corruption Act.

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PSU Bank Employees Protest Against Perquisite Tax

Employees of Punjab National Bank (PNB) in Churu staged a forceful demonstration outside the bank branch close to Dharmastupa on Wednesday. The protest was planned in reaction to the bank's new loan issue circular and the implementation of the perquisite tax. Workers are required to pay taxes on loans with low interest rates. Some employees are even receiving negative salaries as a result of this.

In contrast to other banks, PNB should also pay the perquisite tax itself, the protesting staff said, expressing their displeasure with the added tax load. The workers claim that their morale is suffering as a result of this additional financial burden. 

Also Read- Top 10 Mobile Banking Applications in India

They particularly highlighted the difficulties faced by officers enrolled in the new pension scheme, who are already deprived of the benefits provided under the old pension scheme. These officers, they said, would face even more challenges due to the new tax burden.

In addition to the tax issue, the employees also voiced strong opposition to a recent circular issued by the bank’s management concerning loans. They argued that the new circular would financially harm the employees and called for its immediate cancellation. The protesters demanded that the management create policies that ensure the financial well-being and stability of the employees.

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Punjab National Bank(PNB) Q3 net profit doubles, NII up 7.2%

 

On Friday, Punjab National Bank said that its standalone net profit for the third quarter, which ended on December 31, 2024, had doubled to Rs 4,508 crore. In the previous year's October–December quarter, the bank made a net profit of Rs 2,223 crore.

According to a regulatory statement by Punjab National Bank (PNB), the bank's overall revenue climbed to Rs 34,752 crore in the third quarter of the current fiscal year from Rs 29,962 crore in the same time last year.

Also Read - Quarterly Financial Results of Public & Private sector banks for Q3FY25

The bank's interest income increased from Rs 27,288 crore during the same time last fiscal year to Rs 31,340 crore during the quarter. In comparison to Rs 10,293 crore in the same quarter, the bank's Net Interest Income (NII) increased 7.17 percent to Rs 11,032 crore.

Regarding asset quality, the bank's gross non-performing assets ratio decreased from 6.24 percent to 4.09 percent in the previous year. Similarly, at the conclusion of the third quarter of the previous fiscal year, net non-performing assets (NPAs), or bad loans, decreased from 0.96 percent to 0.41 percent. Consequently, provisions for bad loans decreased from Rs 2,994 crore in the previous year to Rs 318 crore in the current quarter.

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