Govt will not provide tenure extension to Union Bank MD&CEO amid Rs.7 crore Book Purchase Controversy
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The Managing Director and CEO of Union Bank of India, A. Manimekhalai, will not continue in her role after her current term ends on June 30, 2025. This decision comes amid serious questions raised by the bank’s board members over a controversial book purchase deal, according to people familiar with the matter. As per sources, the Government of India will not provide tenure extension to MD&CEO of Union Bank. This is due to the controversial book deal wherein it’s alleged that Union Bank has wasted Rs.7.25 crore public money for purchasing books of KV Subramanian.
Recently, KV Subramanian has been removed from his service as ED (India) at IMF before completion of tenure. India has Appointed Parameswaran Iyer as Temporary IMF Representative.
Manimekhalai’s current term ends on June 30. Normally, she could have received an extension, as she is scheduled to retire only in March 2026. But this book deal and the way it was handled seem to have cost her the opportunity.
According to sources, the board was unhappy with how the book deal was carried out. Although the bank has now paid the full ₹7.25 crore to the publisher, and the books have been delivered to branches across India, the process lacked transparency and board approval.
Controversial Book Deal
The issue began when Union Bank entered into a deal with Rupa Publications to buy nearly 2 lakh (200,000) copies of a book titled India@100: Envisioning Tomorrow’s Economic Powerhouse. The book was written by Krishnamurthy V Subramanian, who was India’s representative at the International Monetary Fund (IMF) at the time. Click here to read full news about this controversial book purchase.
The bank spent ₹7.25 crore on this deal to distribute the books to customers, schools, and college libraries. However, the bank’s board said this purchase was made without their approval, which raised serious concerns about how the decision was taken and who authorized such a large expense. Click here to read full news about this controversial book purchase.
Union Bank confirmed the news in a statement to the stock exchanges, saying,
“The bank has made the said procurement. However, there were certain lapses in the procurement, which are being examined by the bank.”
At the same time, the Indian government recalled Subramanian from his position at the IMF—six months before his three-year term was supposed to end. Reports said that one of the main reasons behind this decision was misconduct related to the promotion of his book.
- Also Read: Recently, KV Subramanian has been removed from his service as ED (India) at IMF before completion of tenure. India has Appointed Parameswaran Iyer as Temporary IMF Representative.
Internal Questions and Investigations
From December 2024 to April 2025, several key developments took place:
- The board questioned whether a General Manager had the authority to approve such a large purchase.
- An independent consulting firm was brought in to review the matter.
- The General Manager who approved the order was later suspended.
- By April, Manimekhalai reportedly wrote to the Ministry of Finance stating that she does not wish to continue and did not seek necessary approvals from the Central Vigilance Commission (CVC) for an extension.
This alleged misuse of public money to the tune of Rs7.25 crores needs to be thoroughly probed by the bank or by an independent auditor. Moreover, the expenses so incurred were not approved by the bank’s board . How the bank is going to be benefited by the distribution of books amongst customers students and corporates.The GM of the bank should be aware of his powers before approving such wasteful expenditure. Prima facie there appears lapses at approval levels which requires thorough investigation. Disciplinary action should be immediately initiated to safeguard the bank’s interest.