PNB Suspends Around 20 Branch Managers Over Protocol Violations and Third-Party System Access

Punjab National Bank (PNB) has reportedly suspended approximately 20 branch managers nationwide after sudden audits revealed unauthorised private individuals performing banking duties and operating branch terminals, according to a report by Hello Banker.

Unauthorised Access Uncovered During Audits

The disciplinary crackdown was triggered by surprise visits conducted by internal audit teams and senior bank executives. Inspectors allegedly found non-bank personnel actively participating in customer service, handling administrative systems, and accessing restricted operational areas.

In several locations, branch leadership had reportedly engaged external individuals—including business correspondents, recovery agents, insurance agents, generator technicians, and outsourced sub-staff—to keep counters running.

Security Lapses and Operational Breaches

PNB regulations explicitly bar non-employees from accessing core systems or remaining inside sensitive operational zones. Specific violations noted during the crackdown include:

• Restricted Zone Access: In one branch on 27 October 2026, an external individual was caught assisting a cashier inside the secure cash enclosure during morning transactions.
• Cash-Closing Involvement: Subsequent review of CCTV recordings showed the same person actively taking part in the evening cash-reconciliation routine.
• System Exposure: Unauthorised persons were reportedly observed operating branch computer workstations, compromising operational and data security standards.

The management has issued show-cause notices and initiated disciplinary procedures against the implicated branch heads for serious dereliction of duty and breach of core protocols.

Staffing Crunch vs Compliance

In response, affected branch managers pointed to severe understaffing as the primary driver behind relying on third-party help. With high customer traffic and multiple staff members on leave, managers argued that keeping counters functional without circle office deputations or reliever staff had become virtually impossible.

While the action highlights the bank’s zero-tolerance stance on operational integrity and customer data safety, it also brings forward the broader operational strain and workforce deficits faced by public sector bank branches.