More Trouble for Union Bank Top Management! Employees demand answer – Why Crores of Rupees were spent on Books?

Hellobanker Team

3 weeks ago

More Trouble for Union Bank Top Management! Employees demand answer - Why Crores of Rupees were spent on Books?

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Recently, a big controversy has erupted in Union Bank of India. There are big allegations that the top management of Union Bank of India has wasted crores of rupees (Rs 7.25 crores) in purchasing books of former Chief Economic Advisor Krishnamurthy V Subramanian. The book, titled ‘India@100: Envisioning Tomorrow’s Economic Powerhouse’, was published by Rupa Publications. Recently, Krishnamurthy V Subramanian has also been removed from his service as ED (India) at IMF before completion of tenure. India has Appointed Parameswaran Iyer as Temporary IMF Representative.

A public sector bank spending such a huge amount without proper rules and procedures has raised serious objections. As per reports, the bank spent over 7 crore rupees without any proper approval from the board. Now the investigation is being done to find out the lapses in this book deal. Click here to read this full controversy in detail.

Now, the All India Union Bank Employees’ Association (AIUBEA) has raised serious concerns about what it calls wasteful expenditure by Union Bank of India’s top management. In a circular dated May 15, 2025, the union questioned large-scale purchases of the book “India @ 100” and other alleged unnecessary expenses, calling them financial mismanagement and demanding clarity and accountability from the bank.

The union had earlier written to the MD & CEO of the bank on May 4, pointing out what they described as “impropriety” in spending crores of rupees on books that, they claim, offer no benefit to the bank.

Despite not making direct corruption allegations, the union has stated that the way certain internal groups are defending the spending raises suspicion. These individuals, referred to in the letter as “vested forces”, are said to be circulating false messages in WhatsApp groups to defend the bank and attack the union’s position.

Union Demands Answers

In its letter, the union has repeated 6 questions it had raised earlier, demanding that the bank officially respond. These include:

Was the bank unaware of the financial lapses between August and December 2024 during internal discussions on book purchases?
If aware, why did the bank hide the facts and not take corrective steps?
Has the whistleblower policy within the bank failed due to fear and pressure from top management?
Did the Board of Directors fail in their duty to oversee the actions of executive directors and the CEO?
Shouldn’t the Audit Committee review decisions by sub-committees to avoid further conflicts of interest?
If the bank has hired KPMG to audit its spending (as reported in the press), why hasn’t that report been made public?

Union Criticizes Culture of Nepotism and Secrecy

The union strongly criticized what it sees as a culture of nepotism, secrecy, and fear within the bank’s top ranks. It said the bank is being run in an autocratic and dictatorial manner, which has led to low employee morale, loss of customers, and stagnation in business.

The union claimed that instead of addressing the issues, the management is using certain employees as proxies to run social media campaigns and defend the book purchases. These individuals are accused of spreading false narratives and being supported by the very system they defend.

A History of Concerns

The union also referred to the bank’s past two-and-a-half years, which it described as marked by:

Renaming of schemes and departments without real change
Hiring consultants with high fees but little to show in return
Growing sycophancy and lack of transparency in decision-making

According to the union, what Union Bank needs now is a serious course correction, but this is not yet visible from the management’s actions.

Final Stand by the Union

The circular ends with a call to all employees and union members to stand firm and defend the bank from wasteful expenditure and mismanagement. It urges them to continue demanding transparency and to oppose any actions that damage the bank’s image and financial health.

The General Secretary, N. Shankar, signed off with a strong message that the union will not back down and will expose the individuals and practices harming the bank — at the right time and with proof.