Good News for this PSU Bank Employees! Bank officially declares to absorb Tax on Perquisites

Punjab National Bank (PNB) has finally declared to absorb 100% Tax on Perquisites. PNB has released an official circular regarding the same. Earlier, a few weeks ago, PNB MD&CEO, in a meeting, had announced the decision of the bank to absorb 100% Tax on Perquisites. Earlier, PNB was paying only 50% Tax on Perquisites, and employees had to pay 50% Tax.

Perquisites are benefits given to bank employees, such as interest-free loans or loans at very low interest rates. Bank employees receive car loans and other loans at lower rates compared to the general public. The court has now ordered banks to apply tax on these perquisites. This was one of the major benefits for bank employees, but after the court’s order, this advantage will no longer remain as beneficial.

Now, PNB will bear 100% of the TDS liability on perquisite value of interest free loans & loans at concessional rate of interest for FY 2025-2026. But this is not permanent. The decision on continuation or modification of this relief in future years shall be reviewed depending on the Bank’s operating profit and overall financial position.

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Punjab National Bank(PNB) Q2 net profit rises 14% YoY

On October 18, the state-owned lender Punjab National Bank said that its net profit for the second quarter of the current fiscal year increased by 14% year over year to Rs 4,904 crore. 

 On a year-over-year basis, operating profit grew by 5.5 and 6.5 percent for Q2FY26 and HY1FY26, respectively, to Rs 7,227 crore and Rs 14,308 crore. 

 For H1FY26, net interest income was Rs 21,047 crore, representing a 0.26 percent YoY increase. The total income for Q2FY26 was Rs 36,214 crore, and for H1FY26, it was Rs 73,445 crore, indicating YoY growths of 5.1 and 10.3 percent, respectively.

At Rs 31,872 crore, total interest income for the second quarter increased 6.7% over the previous year. On a year-over-year basis, total interest expenses for Q2FY26 were Rs 21,403 crore, while for H1FY26 they were Rs 42,789 crore, up 10.6 and 14.3 percent, respectively. 

 From 4.48 percent on September 30, 2024, to 3.45 percent on September 30, 2025, the GNPA ratio increased by 103 basis points on a year-over-year basis. From 0.46 percent on September 30, 2024, to 0.36 percent on September 30, 2025, the NNPA ratio increased by 10 basis points on a year-over-year basis. Gross Non-Performing Assets decreased from Rs 47,582 crore on September 30, 2024, to Rs 40,343 crore on September 30, 2025, a decrease of Rs 7,239 crore.

From Rs 4,674 crore on September 30, 2024, to Rs 4,026 crore on September 30, 2025, Net Non-Performing Assets decreased by Rs 648 crore. Current deposits rose to Rs 74,215 crore, representing a YoY gain of 9.0 percent, while savings deposits rose to Rs 5,08,964 crore, representing a YoY growth of 4.2 percent. 

 CASA Deposits grew by 4.7 percent year over year to Rs 5,83,178 crore. CASA As of September 30, 2025, the bank's share is 37.29 percent, which represents a 30 basis point increase from June 30, 2025. As of September 30, 2025, total term deposits have grown 14.7% year over year to Rs 10,33,902 crore.

Total Retail credit increased by 8.8 percent YoY to Rs 2,72,210 crore as on September 30, 2025. The bank grew under Retail Advances excluding IBPC recording a YoY growth of 18.1 percent.

Within Retail Advances excluding IBPC: Housing Loan grew by 12.9 percent YoY to Rs 1,24,099 crore, and Vehicle loan posted a growth of 30.9 percent YoY to reach Rs 29,512 crore.

Agriculture advances grew by 13.0 percent on YoY basis to Rs 1,83,987 crore and MSME advances increased YoY by 18.6 percent to Rs 1,79,220 crore.

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Officers Association provides suggestions to MD&CEO on how to make Bank a better bank to work with

In a letter to the MD and CEO of Punjab National Bank, the All India Punjab National Bank Officers' Federation offered crucial suggestions for enhancing the bank's working environment.

Suggestions to improve work environment in Bank

1. Office / Branch timing – Most of the bigger branches are closed after 6 PM, it goes as late as 8 PM. Most of the Admin offices are closed after 7 PM. There should be a directive from HO to ZO and CO to ensure that all branches and admin offices are closed by 6 PM. Only adequately rest employees can deliver good and efficient service the next day and as all of us know banking is a service industry where quality service matters the most.
2. Meetings both virtual and in person are dragged up to late hours in the evening even it goes up to night and this is having adverse effects. All such meetings either virtual or in person should end by 6 PM and there are too many virtual meetings happening every day from HO, ZO and CO, such meetings should be minimized.
3. Any virtual meeting in business hours should be avoided.
4. There should be a complete ban on illegal day end checks by CO on branches.
5. Holiday working should be avoided.
6. All ZO and CO authorities should be directed not to abuse, give threat and humiliate employees working under them, every day we are getting complaints of misbehavior from controlling office officials.
7. Targets given to branches and verticals should be realistic and in line with industry trends and our corporate guidelines. If today banking industry is growing at the rate of 10 pc then our targets should be around that only max plus 2 pc above industry trends.
8. Complete ban on window dressing of business.
9. Controlling offices should trust branch officials and their interference in day-to-day banking should be bare minimum and it should be more of hand holding.
10. There are too many campaigns every day. We should move away from campaign driven banking to self-motivated banking by branch officials.
11. There should be one month gap between every outreach program.
12. MD and CEO should do only quarterly review of business. Monthly review should be EDs domain.
13. No of employees in branches / vertical should be increased and that of Admin offices should be rationalized.
14. We need to recruit more and more clerical staff to manage our counter services better.
15. We need to invest more on capabilities building of our workforce through training (offline mode).
16. Number of products should be rationalized.
17. We have too many portals no should be reduced and rationalized.
18. Our bank other income is on lower side in comparison to peer banks. We need to analyze the reasons and fix this issue on priority basis.
19. Our operating profit is also on lower side we need to do brainstorming to improve our profitability.
20. We need to create a sense of belongingness and ownership among our employees towards our bank.

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Punjab National Bank(PNB) Q1 PAT falls 48% YoY

State-owned Punjab National Bank on Wednesday reported a standalone net profit of Rs 1,675 crore for the quarter ended June 2025, marking a 48% year-on-year (YoY) decline from Rs 3,251.5 crore in the first quarter of FY25.

Total income for the June quarter rose 15.7% YoY to Rs 37,232 crore, up from Rs 32,166 crore a year earlier.

Net interest income (NII), however, remained largely flat, increasing by just 1% year-on-year to Rs 10,578 crore from Rs 10,476 crore in the year-ago period.

The sharp fall in profit was driven by a one-time tax expense of Rs 5,083.3 crore, compared with Rs 2,017 crore in the corresponding quarter of the previous year.

On a consolidated basis, the lender posted a net profit of Rs 1,832 crore for the first quarter, down 52% from Rs 3,716 crore a year earlier.

Asset quality improved modestly on a sequential basis. Gross non-performing assets stood at 3.78% at the end of June, down from 3.95% in March. Net NPAs eased to 0.38% from 0.4%.

The bank reported sequential and annual improvements in asset quality. Gross non-performing assets (GNPA) fell to Rs 42,673 crore as of June 2025, a decline of Rs 8,590 crore from Rs 51,263 crore a year earlier.

The gross NPA ratio improved to 3.78%, down from 3.95% in March and 5.73% in June 2024. Net non-performing assets (NNPA) also declined to Rs 4,132 crore from Rs 5,930 crore in the year-ago quarter, with the NNPA ratio improving to 0.38% from 0.60%.

Total CASA (current and savings account) deposits stood at Rs 5,68,638 crore, reflecting a year-on-year increase of 3.6%. The CASA ratio stood at 36.99% at the end of the June quarter.

On the advances front, retail credit rose 11.8% year-on-year to Rs 2,62,219 crore. The bank's core retail lending segment posted stronger growth, rising 17.7% from the year-ago period. Agriculture loans grew by 6.2% to Rs 1,78,885 crore, while MSME advances surged 18.6% year-on-year to Rs 1,69,426 crore.

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In Loan Fraud Case, Female Branch manager of PSU Bank suspended in Uttar Pradesh

At the Punjab National Bank (PNB) branch in the Shernagar region, a significant fraud case has been discovered. A female bank manager assigned to the branch has been charged with defrauding the bank by abusing her position and using fictitious documentation to obtain a Rs 40 lakh home loan. 

 An internal investigation was started by the bank management as soon as the issue was discovered. The accused bank officer was immediately suspended from her position after it was confirmed that fraud had definitely occurred. 

 Additionally, the bank has accused her of fraud and breach of trust in a First Information Report (FIR) that was submitted to the police station. Police are currently pursuing legal action against her.

Shivansh Verma, the son of Shivkumar Verma, the manager of the same PNB Shernagar branch, filed a complaint. He complained about the old manager's financial theft at the New Mandi Kotwali police station. 

 His complaint states that from July 17, 2021, to May 2, 2023, Amrita Singh, the wife of Lokendra Singh and a native of Rampur village in the Kanpur Nagar area, served as the Branch Manager at PNB Shernagar. She currently resides in Gokul City, Muzaffarnagar, with her family.

How the Fraud Happened

Amrita Singh requested for a house loan from her own branch when she was the branch manager in order to purchase a plot in Dream City, a housing colony being built in Muzaffarnagar. She stated that the purpose of the loan was to purchase land and construct a home on it. 

 

A Rs 40 lakh home loan was authorized by the bank and credited to her personal account. Amrita Singh did purchase the land, but despite the passage of time, no construction has begun on the property. Additionally, it was discovered that she failed to provide crucial paperwork needed for the property's mortgage, which is a prerequisite for obtaining a house loan.

She obtained the entire sum of Rs 40 lakh by abusing her powerful position within the bank and skipping the required procedures. Amrita Singh did not begin construction or adhere to the bank's loan requirements despite multiple reminders from the bank. 

 The bank suspended her after an internal investigation determined that fraud had taken place. The bank subsequently filed an official complaint with the police.

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Bank Association asks Officers to leave Branch by 6 PM

 

All members of the All India Punjab National Bank Officers' Federation (AIPNBOF) are required to leave their offices or branches by 6 PM. The general secretary of the AIPNBOF has requested that PNB staff only work eight hours a day. 

Options for loans The federation has reaffirmed the "Kewal 8 Ghante Kaam Ke" work guideline, which states that workers shouldn't be expected to work past their assigned shifts. 

 The general secretary of the AIPNBOF, Krishna Kumar, stated, "Comrades are asked to promptly bring the matter to my attention if any day-end check or official instruction is placed by circle authorities to work beyond this time."

The federation has made this decision in order to safeguard officers from undue work-related stress and to maintain a positive work-life balance. A Bank of Baroda chief manager recently killed himself as a result of intense work-related stress.

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Punjab National Bank(PNB) Rejecting TA Bills of Officers for using Own Car without Prior Permission

TA Bills of officers who use their own automobiles for travel without prior authority approval are being rejected by Punjab National Bank (PNB). According to the existing procedure, officials must first obtain approval from the Circle Office before they are allowed to drive their own vehicle, and only then can their TA bill be approved. Even if officers travel for urgent official business, this requirement still holds true. 

AIPNBOA has now vehemently opposed it. The All India PNB Officers' Association (AIPNBOA) has strongly urged the Punjab National Bank's (PNB) top management to immediately revoke this policy. Citing the policy's detrimental effects on officer morale and efficiency, the association has called it "demotivating" and "impractical."

AIPNBOA has now vehemently opposed it. The All India PNB Officers' Association (AIPNBOA) has strongly urged the Punjab National Bank's (PNB) top management to immediately revoke this policy. Citing the policy's detrimental effects on officer morale and efficiency, the association has called it "demotivating" and "impractical." 

 In a letter to PNB's MD and CEO, the AIPNBOA General Secretary requested that he investigate the matter. The problem has gained attention after the Staff Welfare and Compensation Cell (SWCC) allegedly denied a number of travel allowance (TA) requests, stating that prior authorization from authorities was not obtained.

The association highlighted that officers frequently need to travel at short notice for a wide range of duties, including:

Stock verification

Loan sanction and follow-up visits

End-use verification of loans

Security assessments

Field verification of borrower and customer addresses

Locker rent recovery

Legal and recovery work

Customer outreach and financial awareness programs

Business development and loan recovery drives

AIPNBOA claims that officers are not being reimbursed for official travel in their personal cars just because they did not get prior consent, which is frequently impractical in real-world scenarios. Field officers have reportedly been frustrated and dissatisfied as a result of these TA bills being rejected. 

 These duties cannot wait for official approvals, particularly in circumstances that are urgent or time-sensitive. Even in metropolitan and semi-urban areas, the group noted, personal vehicles are the only dependable means of timely transportation because public transportation is either inaccessible or inappropriate.

The letter also highlighted problems that branch heads and senior officials experience since, according to the current regulations, they have to get permission from the Circle Head before they can drive in their own car for official business. Due to his hectic schedule, Circle Head might not be able to provide approval right away, which causes delays and obstacles in the process. 

 The group also voiced worries that the general culture these policies foster shows a "lack of trust" in cops. According to the letter, "it is as if every officer is considered a thief until proven otherwise." This is detrimental to the working atmosphere in addition to being discouraging, especially for junior officers who are working under pressure in the field.

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Home Loan Fraud in Bank, Builder sold same Flat to multiple People

 In a noteworthy development, on July 4, 2025, Harsh Sharma was taken into custody by the Central Bureau of Investigation (CBI) in relation to a housing loan fraud case that began on August 2, 2017. Since the case was initially filed, Harsh Sharma had not participated in the investigation and had been evading capture for eight years. In a protracted investigation, his arrest represents a significant advancement.

The CBI claims that Harsh Sharma and the construction company Shree Balaji Hitech Construction engaged in a criminal conspiracy. His personal information, including his KYC details, was exploited to fabricate home loan applications. He was fictitiously represented by the builder as the buyer of an apartment that never actually changed hands.

The identical apartment was purportedly sold to several phony purchasers in order to defraud Punjab National Bank of loan payments. Through fabricated documentation and fictitious transactions, this fraudulent behavior enabled the builder to unlawfully receive substantial quantities of money from the bank.

On March 19, 2024, the CBI submitted a charge sheet outlining the accused's role before the Special CBI Court in Ghaziabad. The court had issued a non-bailable warrant against Harsh Sharma because he was evading capture and refusing to cooperate with the inquiry. On the morning of July 4, 2025, the CBI team made the last arrest after persistently trying to track him down.

Harsh Sharma was brought before the Special Judicial Magistrate (CBI) in Ghaziabad after his arrest. He is currently being held in judicial detention until July 15, 2025, under the court's ruling. The CBI has said that the matter is still being investigated and that additional information may be revealed as it develops.

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