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The Union Bank of India is currently embroiled in a significant controversy surrounding an unusually large book order. The bank procured nearly two lakh copies of “India@100: Envisioning Tomorrow’s Economic Powerhouse,” authored by Krishnamurthy V Subramanian, the former chief economic advisor (CEA). This massive order, totaling Rs7.25 crore, has triggered a formal investigation and resulted in the suspension of a senior general manager. The sheer volume of the purchase, coupled with the manner in which it was executed, has raised serious questions about financial prudence and potential irregularities within the bank's administrative processes. The core of the issue lies in the apparent lack of transparency and oversight in the decision-making process that led to the substantial expenditure. Specifically, concerns have been raised regarding the authorization of the purchase, the allocation of funds, and the intended purpose of distributing such a large number of books. These issues collectively contribute to the gravity of the situation and underscore the need for a thorough and impartial investigation to uncover the full extent of any wrongdoing. The initial report highlighting this unusual transaction came from The Economic Times (ET), which revealed that the public sector bank (PSB) intended to distribute the books widely across the country. This initiative, which occurred prior to the book's publication in August 2024, involved the support services division instructing its 18 zonal heads to procure and distribute both paperback and hardcover versions to various entities, including ‘customers, local schools, colleges, libraries,’ and other institutions. The detailed breakdown of the order included 189,450 paperback copies priced at Rs350 each and 10,422 hardcover copies at Rs597 each, culminating in a total expenditure of Rs7.25 crore. A significant portion of the funds, over Rs3.6 crore, was paid in advance to Rupa Publications, the publisher of the book. The zonal offices were instructed to manage the book distribution using the ‘miscellaneous’ budget head, according to the report. The magnitude of this financial commitment and the procedural anomalies associated with it have intensified scrutiny of the bank's decision-making practices. The fact that such a significant amount was disbursed without clear justification or proper authorization has raised concerns about the bank's internal controls and financial management protocols.
The controversy escalated when the matter was brought before the Bank’s board in December 2024. At that point, half of the total expenditure had already been incurred. During the board meeting, Nitesh Ranjan, the executive director in charge of marketing and publicity, stated that he was unaware of the purchase and had not approved the expenditure. This revelation raised serious questions about the chain of command and the transparency of the decision-making process within the bank. The board subsequently questioned the authority of Girija Mishra, the general manager of the support services division, to approve the payment without seeking proper ratification. This line of inquiry focused on whether Ms. Mishra acted within her designated authority and whether the necessary approvals were obtained before committing such a substantial amount of public funds. The lack of transparency and the apparent bypassing of established protocols have amplified concerns about potential misconduct and abuse of power within the bank. Following the board's inquiry, the Bank took swift action by suspending Ms. Mishra. Additionally, in January of this year, the bank engaged the accounting firm Klynveld Peat Marwick Goerdeler (KPMG) to conduct a forensic review of the transaction. The choice of KPMG, a reputable and independent auditing firm, underscores the bank's commitment to conducting a thorough and impartial investigation into the matter. The forensic review aims to uncover the full extent of any financial irregularities and to determine whether the purchase was conducted in compliance with established protocols and regulations. According to ET, KPMG submitted its findings earlier this month. However, it remains “unclear whether the Bank has taken any further steps, apart from suspension of the GM.” The lack of transparency regarding the findings of the forensic review and the actions taken based on those findings has further fueled public interest and concern about the matter. The bank's handling of the situation will be closely monitored to ensure that appropriate measures are taken to address any identified wrongdoing and to prevent similar incidents from occurring in the future.
Adding to the complexity of the situation, employee unions have voiced their concerns and demanded a broader investigation into the matter. Allegations have been made that senior management acted irresponsibly by using public funds to promote a book linked to a prominent figure. In a formal communication addressed to the bank’s MD & CEO A Manimekhalai, the All India Union Bank Employees’ Association (AIUBEA) characterized the purchase as ‘wasteful expenditure’ and questioned the real benefit to the Bank or its customers from such a large-scale distribution of the book. This criticism from the employee union highlights the concerns of those working within the bank, who fear that the purchase could be perceived as a misuse of public funds and a potential conflict of interest. The book in question, authored by Krishnamurthy V Subramanian, outlines a vision for India to become a US$55tn (trillion) economy by 2047. Written during and after Mr. Subramanian’s tenure as CEA (2018–21), the book claims to blend economic theory with practical policy recommendations. It proposes four pillars for national growth: macroeconomic stability, inclusive development, ethical wealth creation, and investment-driven growth. However, the connection between the book's content and the bank's core business operations is unclear, leading to skepticism about the strategic rationale behind the large-scale purchase. Further adding fuel to the controversy, Mr. Subramanian's recent departure from his position as India’s nominee as Executive Director at the International Monetary Fund (IMF) has raised further questions. The government terminated his tenure in April 2025, recalling him from his IMF post six months before the end of his term. While initial speculation suggested discomfort over Mr. Subramanian’s criticism of IMF data in the book, new inquiries are being made regarding the potential undue promotion of his book through institutional channels. The timing of the book purchase and the subsequent controversy surrounding Mr. Subramanian’s departure from the IMF have led to speculation about potential connections between the two events. The IMF, in response to the controversy, has clarified that Mr. Subramanian’s exit was solely a decision made by the Indian government. As of early May, his seat at the IMF’s executive board remains vacant. Mr. Subramanian has not yet issued a public statement addressing the matter. The entire situation underscores the complexities and potential conflicts of interest that can arise when public institutions engage in large-scale purchases of materials authored by individuals with close ties to the government or regulatory bodies. The investigation into the Union Bank book purchase is likely to continue and will be closely watched by both the public and the financial industry. The outcome of this investigation will likely have significant implications for the bank’s governance practices and its reputation.
Source: Union Bank Under Fire Over Rs7.25 Crore Book Order; Suspends GM