Punjab National Bank Faces Rs 15.37 Crore Penalty from SAFEMA Appellate Tribunal Amid Financial Growth

Punjab National Bank (PNB), one of India's leading public sector banks, has been hit with a significant penalty while simultaneously demonstrating financial growth, according to recent reports and financial data.

Penalty Imposed by Appellate Tribunal

The Appellate Tribunal under SAFEMA (Smugglers and Foreign Exchange Manipulators Act) has imposed a monetary penalty of Rs 15.37 crore on Punjab National Bank. This penalty stems from an appeal against an order by the Financial Intelligence Unit-India (FIU-IND) related to violations of the Prevention of Money Laundering Act (PMLA) during the period from April 2016 to November 2017.

Key points regarding the penalty:

Amount: Rs 15.37 crore (Rs 15,37,50,000)
Imposing Authority: Appellate Tribunal under SAFEMA
Original Order: Issued by FIU-IND on 29.07.2019
Violation Period: 01.04.2016 to 30.11.2017

PNB has stated that it has already implemented necessary corrective measures and system checks to prevent such non-compliances in the future. The bank also asserts that there is no material impact on its financial position or operations due to this penalty, as the amount has been fully provided for in accounts.

Financial Performance Highlights

Despite the regulatory setback, Punjab National Bank's financial data reveals growth over the past few years. Here's a snapshot of key financial metrics:

Metric	Current Year	1 Year Ago	3 Years Ago	5 Years Ago
Total Assets	1,857,543.60	1,598,636.00	1,493,649.00	1,279,725.00
Total Equity	133,766.40	110,947.50	103,339.90	93,021.10
Investments	524,840.30	446,421.30	416,913.80	404,369.00
Current Assets	212,198.60	175,149.00	203,218.70	157,940.20

The bank has shown growth across various financial parameters:

Total Assets: Increased by 45.15% over the past five years
Total Equity: Grew by 43.80% in the same period
Investments: Expanded by 29.79% since five years ago
Current Assets: Rose by 34.35% compared to five years ago

Conclusion

While the Rs 15.37 crore penalty highlights the need for stringent compliance with anti-money laundering regulations, Punjab National Bank's financial performance suggests that the bank remains on a growth path. The implementation of corrective measures and system checks indicates PNB's commitment to addressing regulatory concerns while continuing to expand its business operations.

Investors and stakeholders may keep a close eye on how PNB balances regulatory compliance with its growth strategies in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.20%	-3.20%	-3.79%	+9.06%	+9.27%	+185.60%

Punjab National Bank (PNB) has announced significant changes in its senior management, with two of its top executives moving to executive director positions at other public sector banks. The appointments, effective November 24, 2025, mark a notable shift in the leadership landscape of India's banking sector.

Key Appointments

Name	Previous Role	New Role
Amresh Prasad	CGM, Transaction Monitoring Division, PNB Head Office	Executive Director, Union Bank of India
Sunil Kumar Chugh	CGM, Zonal Manager, PNB Zonal Office Hyderabad	Executive Director, Canara Bank

Regulatory Compliance

The bank made this announcement in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, read with sub-clause 7 of Para A, Part A of Schedule III and SEBI Circular dated November 11, 2024. The changes were also in line with the Department of Financial Services (DFS) Notification No. eF.No.4/4(iii)/2024-BO.1 dated November 24, 2025.

Implications for the Banking Sector

These appointments reflect the ongoing efforts to strengthen the leadership teams across public sector banks in India. By moving seasoned executives from one bank to another, the sector aims to foster cross-pollination of ideas and strategies, potentially leading to improved operational efficiencies and innovative banking practices.

The transition of these senior officials from Chief General Manager roles at Punjab National Bank to Executive Director positions at Union Bank of India and Canara Bank signifies a step up in their careers and responsibilities. This move is likely to bring fresh perspectives to their new organizations while leveraging their extensive experience in the banking sector.

As the Indian banking landscape continues to evolve, such strategic movements of top-tier executives are expected to play a crucial role in shaping the future of public sector banks, enhancing their competitiveness, and improving their overall performance in the dynamic financial market.