The Finance Ministry on Monday began the process to remove Allahabad Bank CEO and MD Usha Ananthasubramanian from the post after the CBI filed a chargesheet on her alleged role in the over Rs 13,000-crore PNB scam earlier in the day.
Ananthasubramanian, who was the Managing Director and Chief Executive Officer of the Punjab National Bank (PNB) from August 2015 to May 2017, was quizzed by the Central Bureau of Investigation (CBI) in February.
A Ministry official told IANS that the Department of Financial Services (DFS) had asked the government representative in the Allahabad Bank to come up with a proposal before the board to strip Ananthasubramanian of her powers.
He said that the board would discuss the matter on Tuesday.
"... till now, no formal communication has been received by the bank on the matter. In the meantime, the bank has convened a meeting of its Board of Directors on May 15 to discuss the matter," the lender said in a regulatory filing.
"The DFS has started action for removing and dismissing the accused officials. The departmental inquiry will continue against them separately," he said.
The CBI on Monday filed a chargesheet against Ananthasubramanian and 21 others, including 11 bank officials, over the PNB fraud case allegedly perpetrated by diamantire Nirav Modi and his uncle Mehul Choksi.
So far, 19 people have been arrested in the case while Modi and Choksi are on the run.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)