Is PNB getting too Harsh on Disciplinary Actions and Staff Accountability?

All India Punjab National Bank Officers’ Association (AIPNBOA) has raised strong objections to the recent disciplinary actions imposed by the bank on its officers. AIPNBOA said – In recent times there is negativity going round the field due to unreasonable charge sheets affecting the morale of the officers. 

The association has highlighted that in Punjab National Bank (PNB), disciplinary authorities are taking decisions without considering their impact on the morale of the officers. If a fraud occurs in an account, the bank initiates an investigation against the officer. If an anonymous complaint is received, the bank also initiates an investigation against the officer. These incidents are highly demotivating for officers.

Banking is a risk-oriented activity, and every decision that results in a loss does not automatically amount to misconduct. Frauds are conducted by account holders, not bank officers. It’s not practically possible to verify every detail submitted by the customer. The Bank is also suspending officers immediately for long durations and putting them on the LODI list.

Public Sector Banks operate in an environment where integrity, accountability, and probity are fundamental, and we reiterate our full support for discipline and ethical conduct. At the same time, it is well established in DFS and CVC guidelines that bona fide business decisions taken in good faith, without any mala fide intent or personal gain, should not be subjected to vigilance or punitive action merely because the outcome turned adverse.

It is important to note that the Central Vigilance Commission (CVC) has clearly instructed that no action should be taken on anonymous or pseudonymous complaints. Despite these clear directions, it has been observed that authorities at the Circle, Zonal, and even Head Office levels are ordering enquiries against officers on the ground that the contents of such anonymous complaints are “verifiable.” Starting enquiries on this basis directly violates mandatory CVC guidelines and leads to unnecessary humiliation and loss of reputation for the concerned officer in the eyes of colleagues, the Circle, and society.

What’s more concerning is that Senior officers in controlling and supervisory offices are often treated leniently even when they commit serious lapses in monitoring and audit follow-up, while major penalties are imposed on officers working at the branch level. AIPNBOA even said that sometimes, the enquiry officer finds no issue in case but he is forced to alter his statement.

By treating fraud cases as matters of collective accountability, the process often reaches a point where issuing a vigilance charge sheet almost automatically results in major penalty proceedings, eventually leading to officers being placed on the LODI list. It is also often seen that after an officer is suspended, the suspension continues for long periods—sometimes nine to fifteen months—without any charge sheet being issued, whether the Disciplinary Authority is at the Zonal Office or the Head Office.

The combined impact of prolonged suspensions, delayed disciplinary proceedings, and an ineffective appeal system has caused a serious loss of confidence among officers. Although an officer is required to file an appeal within 45 days of the disciplinary order, the Appellate Authority often takes six to twelve months to decide the appeal. This delay goes against repeated Supreme Court rulings, which state that statutory appeals must be resolved within a reasonable time—generally understood as within three to six months.

AIPNBOA has requested the MD&CEO of Punjab National Bank to instruct all disciplinary authorities to take a decision in the interest of the bank and officers.

AIPNBOA Letter to MD&CEO of Punjab National Bank