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Allahabad Bank divests its CEO Usha Ananthasubramanian of all powers

Ananthasubramanian, was the CMD of Punjab National Bank till May 2017

Press Trust of India  |  Mumbai 

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Allahabad Bank

The Board of state-owned today divested its MD and CEO of all powers with immediate effect, following a directive from the finance ministry after she was named in the CBI's chargesheet in fraud case.

Ananthasubramanian, was the CMD of Punjab National Bank till May 2017.

Yesterday, the finance ministry had asked the boards of and to take action against Ananthasubramanian and two executive directors of

The PNB had yesterday divested its two executive directors of all powers.

"...the Board of Directors of the Bank in its meeting held on date has decided that Smt Usha Ananthasubramanian, MD & CEO be divested of all functional responsibilities of the Bank with immediate effect...," said in a regulatory filing.

It further asked the government to make suitable arrangements for smooth functioning of the bank.

The CBI yesterday filed its first chargesheet in the PNB fraud case detailing the roles of Nirav Modi, his brother Nishal Modi and Subhash Parab, an executive in Nirav Modi's company.

Meanwhile, PNB today said that its total liability works out to Rs 14,356.84 crore on account of the fraud allegedly carried out by jewellery designer and associates.

The fraud was detected at PNB's Brady House branch in Mumbai involving certain accounts under 'gems and jewellery' sector wherein, through apparent connivance between "these entities and few employees of the bank", some LoUs/FLCs were issued fraudulently to certain overseas branches of Indian banks through misuse of the SWIFT messaging system.

First Published: Tue, May 15 2018. 19:10 IST