Latest news with #KrishnamurthyVSubramanian
Time of India
07-05-2025
- Business
- Time of India
Book Deal Drama may End CEO's Union Bank Chapter
The MD & CEO of state-run Union Bank of India A Manimekhalai , will not be given an extension when her term ends early June following misgovernance allegations raised by the lender's board members, multiple people with knowledge of the matter told shortened the odds on her exit was a deal struck by Union Bank with Rupa Publications to purchase a large number of copies of a book authored by Krishnamurthy V Subramanian , India's former executive director at the International Monetary Fund ( IMF ), without the board's reported Tuesday that the bank purchased nearly 200,000 copies of India@100: Envisioning Tomorrow's Economic Powerhouse for Rs 7.25 crore to distribute the copies of the title to the bank's customers, local schools and college a notice to the stock exchanges Tuesday, the lender confirmed ET's Monday newsbreak. 'The bank has made the said procurement. However, there were certain lapses in the procurement, which are being examined by the bank,' the lender told the stock Saturday, the government recalled Subramanian after the Appointments Committee of the Cabinet 'terminated' his services as the IMF's executive director (India), six months before his three-year term was set to conclude. One of the reasons cited for his recall pertained to alleged improprieties around the promotion of his will complete her three-year term at the bank on June 30, and she is otherwise eligible for an extension since she would superannuate only in March the deal to procure these copies of the book and objections raised by the board thereafter dented her extension bid, said the people privy to the development. The bank has since made the full Rs 7.25 crore in payments to Rupa Publications and copies of the book have been delivered to the zonal offices of the bank across India.A series of developments between December 2024 and April put the spotlight on the role of the MD & CEO. During this period, the board questioned the authority of a general manager to place the order of such a large sum, appointed an independent consulting firm, and eventually, the general manager was in April, Manimekhalai wrote to the ministry that she does not want an extension and the necessary clearances from the Central Vigilance Commission (CVC), sources cited above bought nearly 200K copies of India@100: Envisioning Tomorrow's Economic Powerhouse. Has made entire payment of Rs 7.25 cr to Rupa bank has made the said procurement. However, there were certain lapses in the procurement, which are being examined by the bank
Indian Express
07-05-2025
- Business
- Indian Express
Ex-CEA book: Union Bank admits lapses; publisher got over Rs 3 crore
Union Bank of India is understood to have paid 50 per cent in advance to Rupa Publications for a bulk order worth around Rs 7 crore for 2 lakh copies of former Chief Economic Advisor Krishnamurthy V Subramanian's book 'India@100: Envisioning Tomorrow's Economic Powerhouse' — a contentious purchase that has raised questions of propriety, The Indian Express has learnt. On Tuesday, the bank acknowledged 'lapses' in the purchase, and said it was examining the issue, even as its shares plummeted by 6.18 per cent to Rs 118.35 on the BSE. In a filing to exchanges, the bank said that it 'has made the said procurement'. 'However, there were certain lapses in the procurement, which are being examined by the bank,' it said. The Indian Express had first reported Sunday that one of the key reasons for Subramanian's recall last month by the Government as the International Monetary Fund's Executive Director, on its behalf, was an 'alleged impropriety' related to the promotion of this book. Subramanian did not respond to requests for comment from The Indian Express. It is understood that apart from the bank's bulk purchase, the publishers may have also received other, smaller bulk orders for Subramanian's book. Industry sources said these orders were private and institutional in nature and 'nowhere close' in scale to the bank's order. When contacted by The Indian Express, Rupa Publications said they had no comment on the purchase by the PSU bank. In publishing circles, Union Bank of India's order is being seen as a 'fantastical' deal, although The Indian Express has learnt that seven months on, the publishers are yet to be paid the remaining 50 per cent for the bulk order. It is learnt that the publishers had 'executed' the order within a month of receiving it — around September last year. The order is understood to have been sent to the publishing house through an email from the bank. Subsequently, it is learnt, several reminders for dues have been sent by the publishers to the bank's top management in New Delhi. The Indian Express had reported Sunday that Subramanian was recalled six months before the end of his three-year term at the International Monetary Fund. Apart from concerns over the book, this newspaper had reported that there were reports of alleged violation of some 'internal IMF protocols'. All IMF member-countries are represented on its Executive Board, which discusses the national, regional, and global consequences of each member's economic policies — and approves financing to help member-countries address temporary balance of payments problems, as well as overseeing the IMF's capacity development efforts. Sources told The Indian Express it was through two separate internal office letters dated June 28, 2024, and July 29, 2024, that Union Bank of India's Support Service Department (SSD) informed zonal heads about the 'top management's' desire to distribute copies of the book among customers and corporates. 'A new book envisioning tomorrow's economic powerhouse is thought provoking, illuminating and a hopeful book that shines a light on India's potential as a global leader. It is desired by top management to procure and distribute the copies of this (India@100) book among customers, local schools, colleges, library, etc,' the bank said in the letters. The letters were sent by SSD General Manager Girija Mishra, following an order from the bank's MD & CEO, sources said. Union Bank of India's Managing Director and MD & CEO A Manimekhalai and Executive Director Nitesh Ranjan did not respond to requests for comment from The Indian Express. According to the June letter, Rupa Publications has offered a price of Rs 350 per book for the student edition. This letter directed each zonal office to procure 10,525 student edition copies of the book at Rs 350 per piece. Both the letters informed all zonal heads that for early delivery of the book, the bank will make 50 per cent advance payment to the publisher through a revenue budget available under 'Miscellaneous Head'. The July letter stated that Rupa Publications was offering a discounted price of Rs 597 per book for the hardcover edition — it asked zonal offices to procure 10,422 hardcover editions. According to banking sector experts, banks do not purchase books in 'such huge quantities', even for distribution to customers. Meanwhile, Union Bank of India's employees' association has also questioned the decision to purchase Subramanian's book in such a large quantity. '…it has become the responsibility of the Bank to ascertain how far the authority who has approved the expenditure for purchase of books has colluded in promoting the alleged impropriety to damage the Bank and its image,' All India Union Bank Employees' Association General Secretary N Shankar wrote in a letter, dated May 4, to CEO Manimekhalai. The union also asked the bank to disclose the benefits it achieved from spending a huge sum in purchasing and distributing Subramanian's book.
Time of India
06-05-2025
- Business
- Time of India
At Union Bank, Probe into a ₹7cr Book Order
Public sector lender Union Bank of India is in a bind over the eye-popping largesse it showered on a book ahead of its publication last year, when it decided to purchase nearly two lakh copies at a cost of ₹7.25 crore, to distribute among 'customers/local schools/colleges/library, etc.'The book that so moved the lender's management as to merit this massive order was India@100: Envisioning Tomorrow's Economic Powerhouse, by Krishnamurthy V Subramanian , India's former chief economic adviser (CEA).Subramanian subsequently served as India's nominee executive director at the International Monetary Fund, till the government prematurely terminated his tenure last around his exit have cited alleged improprieties around promotion of his book as one of the reasons. Subramanian had been seen as an influential and promising young had also been rumoured to be in the reckoning for a number of important roles since his stint as two inter-office letters seen by ET and issued in June and July 2024, ahead of the book's publication in August, the bank's support services department at its central office wrote to its 18 zonal heads, informing them of the decision by the 'top management' to procure and distribute hard cover and paperback versions of the book among customers and corporates pan-India, as well as at local schools, colleges, libraries, et letters conveyed the decision to purchase 189,450 copies (10,525 copies each by 18 zonal offices) of the paperback at ₹350, and 10,422 copies of the hardcover at ₹597. The order would cumulatively amount to ₹7.25 zonal offices were instructed to further distribute the copies to the regional offices under them. It's unclear if other orders for the central office or other establishments were also for a few bestselling authors, books in English language sell so little in India that a title with sales surpassing 10,000 copies is deemed a the office advice was sent, a 50% advance for this purchase had already been paid to publisher Rupa Publications. The office advice said the remainder of the payment should be made by the respective regional offices through 'revenue budget available under 'miscellaneous' head.'Union Bank managing director and chief executive A Manimekhalai and chairman Srinivasan Varadarajan did not respond to ET's requests for this expenditure item (50% advance to Rupa) was brought for ratification in a December board meeting of the lender, its executive director, Nitesh Ranjan, who oversees marketing and publicity among other portfolios, said he had not been informed about this purchase and declined to ratify the board questioned the authority of Girija Mishra, the general manager overseeing the support services department, to authorise this payment by informed the board, according to people aware of developments, that she had asked Mishra to make the purchase, but not to break any rules. About a week later, on December 26 last year, she suspended him. Mishra did not respond to messages from January this year, the bank appointed KPMG to identify the lapses in this transaction. The consultant submitted its report by end of the month, although it's not known what the report said or recommended. It's also unclear if the bank has taken any further steps, apart from the suspension of the general unions say the general manager was made a scapegoat, and have demanded further May 4, an association of bank employees wrote to Manimekhalai, demanding investigation into the 'wasteful expenditure involving crores of rupees on purchase of the book, India@100.''With the news item of alleged impropriety over promotion of the book purchased by the bank… it has become the responsibility of the bank to ascertain how far the authority who has approved the expenditure for purchase of books has colluded in promoting the alleged impropriety to damage the bank and its image,' N Shankar, general secretary of the All India Union Bank Employees' Association, said in the letter.'Further, the bank has to disclose as to what benefits it achieved in purchasing & distributing large number of the books by spending crores of rupees,' Shankar wrote. The 'bank has also to disclose whether proper procedure for purchase of books involving huge amount of expenditure was followed… so as to dispel many apprehensions and suspicions surrounding the top management and its involvement.'Union Bank of India is the fourth largest PSU bank, and is valued at Rs 96,298 crore. It has a loan book and total deposits of ₹9.5 lakh crore and ₹12.2 lakh crore, respectively.
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Business Standard
06-05-2025
- Business
- Business Standard
Union Bank staff body seeks probe into India@100 book purchase deal
Union Bank of India's employees' association has demanded a probe into alleged impropriety in the purchase of copies of the book India@100: Envisioning Tomorrow's Economic Powerhouse, written by Krishnamurthy V Subramanian, India's nominee executive director at the International Monetary Fund (IMF). The government has recalled him from the assignment. The All India Union Bank Employees' Association, in a letter to A Manimekhalai, managing director and chief executive of Union Bank of India, alleged that the bank had purchased large quantities of the said book, spending crores of rupees, and thereby became involved in alleged impropriety. It is the responsibility of the bank to ascertain who approved the expenditure for the purchase of the book. Media reports have indicated the alleged involvement of bank officials in buying lakhs of copies of the book, flouting established rules. 'The association, from time to time, has been raising concerns over the bank wastefully spending its hard-earned profits on various items and avenues. We have been requesting the bank not only to exercise constraints but also to review such spending to ascertain the need and the benefits reaped from the same. Even the purchase of the book in large quantities was also raised by us,' the association added. Earlier, in response to an issue raised by the association, the bank had said expenditure was required for regular upkeep and upgradation and was incurred after approval from the competent authority. Last week, the government ended the term of its nominee executive director at the IMF, Krishnamurthy Subramanian, with immediate effect, according to an order by the Appointments Committee of the Cabinet (ACC). He was appointed as India's executive director at the IMF in 2022 for a three-year term. The reasons for Subramanian's termination are said to include alleged impropriety involving the use of his position for the promotion and publicity of his latest book. The association said the bank should disclose what benefits it achieved from purchasing and distributing large numbers of the books by spending crores of rupees. The bank must also disclose whether proper procedures for the purchase of books involving large expenditure were followed, in line with Central Vigilance Commission guidelines.
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Business Standard
06-05-2025
- Business
- Business Standard
Union Bank's ₹7.25 cr book purchase faces heat amid Subramanian's IMF exit
Public sector lender Union Bank of India spent an estimated ₹7.25 crore to purchase nearly 200,000 copies of a book authored by former Chief Economic Adviser (CEA) Krishnamurthy V Subramanian, according to a report by The Economic Times. The report comes amid Subramanian's recent exit from his post as India's executive director at the International Monetary Fund (IMF), six months ahead of schedule. According to internal correspondence cited by The Economic Times, the bank's central office ordered 189,450 paperback and 10,422 hardcover copies of 'India@100: Envisioning Tomorrow's Economic Powerhouse', to be distributed among customers, corporates, schools, colleges, and libraries across India. Priced at ₹350 and ₹597 respectively, the total procurement cost amounted to over ₹7 crore. A 50 per cent advance was paid to Rupa Publications before the book's publication in August 2024, with the rest to be covered through the bank's miscellaneous revenue budget. For context, English-language books in India rarely sell beyond 10,000 copies, making Union Bank 's purchase of close to 200,000 copies highly unusual, the report pointed out. The order was executed through the bank's 18 zonal offices, each assigned over 10,000 copies for further distribution. The book, published on August 1, 2024, outlines India's roadmap to transform into a $55 trillion economy by its centenary in 2047. Drawing from the author's own experience as India's CEA, Subramanian presents a strategic framework based on four pillars: fostering consistent macroeconomic growth, promoting inclusive development, advocating ethical wealth creation, and leveraging investment-led growth. The book boasts of bringing together economic theory with practical policy insights, aiming to guide India on a path of sustainable and equitable prosperity over the next two decades. Subramanian's abrupt exit from IMF Subramanian, who served as CEA from 2018 to 2021, was appointed to the IMF role in late 2022, representing India, Bangladesh, Sri Lanka, and Bhutan. However, the Government of India abruptly recalled him via an order dated April 30, 2025, just two and a half years into his three-year term. Initial speculation linked his exit to tensions over his criticism of the IMF datasets published in the book. The latest report suggests there may have been wrongdoing in how the book was promoted. The government may have viewed the Union Bank procurement as excessive, if not inappropriate, particularly given Subramanian's high-profile position. Appointment decisions made by countries: IMF As of early May, his seat on the IMF Executive Board remains vacant.
