Overview
- The court set aside Punjab National Bank’s 2017 dismissal of officer P K Varun and told the bank to issue a fresh, reasoned penalty order within six weeks.
- The judge left the misconduct findings intact but said PNB must explain why Varun received the ultimate penalty when other officials in the same credit chain faced lighter action.
- The timing of the dismissal on Varun’s last working day weighed heavily in the decision because it led to withholding of pension, most gratuity, and leave encashment.
- PNB had cited lapses in sanctioning credit across five borrower accounts during Varun’s 2012–2015 Mumbai tenure, saying the bank faced potential exposure of about ₹31.84 crore.
- If PNB reduces the penalty, the court said Varun’s terminal dues must be recalculated under the rules, a move that could push banks to better justify unequal punishments in group cases.