Punjab National Bank (PNB) has increased its allocation towards cybersecurity for the current financial year as it seeks to guard against rising digital threats including those from artificial intelligence models. 

The country's third largest state-run lender by market capitalisation has set aside Rs 700 to Rs 800 crore for cybersecurity in FY27, accounting for nearly 20% of its technology budget. Reuters quoted PNB executive director D Surendran as saying that this allocation is more than 50% higher than the previous year.

The bank will increase the spending further if required as it does not want to compromise on this kind of expenditure, Surendran added.  

PNB’s higher spending comes in the wake of regulators and banks assessing emerging risks from advanced AI systems, including models such as Anthropic’s Mythos. 

Last month, Finance Minister Nirmala Sitharaman met heads of major banks to gauge preparedness against AI-related cybersecurity threats.  

The Reserve Bank of India has also reportedly held talks with global regulators, lenders, regulators and government officials on potential risks associated with the growing use of AI tools.

PNB is also fast-tracking purchases of security tools, including firewalls and other systems to address vulnerabilities, Reuters quoted Surendran as saying.

"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.

Several banks have been strengthening cybersecurity measures following the rise in online banking activity and digital payment volumes.