Union Bank of India admits to lapses in procuring Subramanian's book

Union Bank of India has acknowledged lapses in procuring India@100 by K V Subramanian, prompting an internal probe, though it says no material financial impact has emerged

State-run Union Bank of India on Tuesday acknowledged lapses in the procurement of the book India@100, authored by former chief economic advisor Krishnamurthy Subramanian, and said it was examining the matter.

 

In a stock exchange notification, the bank said the incident did not have any material impact on the bank’s operations or financials at this stage.

 

Last week, the central government terminated Subramanian’s services as executive director of the International Monetary Fund (IMF), six months ahead of the end of his three-year tenure. The IMF said the termination of Subramanian’s services was a decision taken by the Indian government.

 

Sources said the reasons for Subramanian’s termination included alleged impropriety over the use of his position for promotion and publicity of his latest book India@100.

 

According to documents reviewed by Business Standard, an interoffice note from Union Bank to all zonal heads on June 28, 2024, titled “Procurement of India@100 under rate contract for distribution among customers, local schools, colleges, libraries etc”, said: 

 

“As an effort to tap future business opportunities, it is desired by the top management to distribute copies of the book India@100, among the customers,corporates PAN India.”

 

The note also said that Rupa Publications India, the publisher of the book, had offered the student edition at Rs 350 per copy for the bank. According to the publisher’s offer, 50 per cent of the payment would be made in advance, with the rest on submission of bills and dispatch details. “Books will be delivered at 18 centres where zonal offices are located,” it said.

 

Kapish Mehra, managing director of Rupa, declined to comment on the issue when contacted by Business Standard over phone. “Our official stand is no comment,” Mehra said.

 

Union Bank decided to buy 10,525 copies under each zonal office.

 

Another note dated July 29, 2024, showed that the bank later decided to purchase hardcover editions under each zonal office at Rs 597 per copy. Of 10,422 copies procured, 579 copies were allocated to each zonal office.

 

The All India Union Bank Employees’ Association, in a letter to A Manimekhalai, managing director and chief executive officer of Union Bank of India, said the bank had purchased large quantities of the book for crores of rupees and had thus got involved in alleged impropriety.

 

“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 to not only exercise constraints but also review such spending to ascertain the need and the benefits reaped out of the same. Even the purchase of the book for large quantities was also raised by us,” the association said.