Stock Exchange (NSE and BSE) ask Union Bank to clarify about recent Book Controversy, Check Letter Copy

The tough time for Union Bank is not yet over. Now, the stock exchanges of India – NSE and BSE have issued letters to Union Bank and asked Bank to submit clarification over the recent controversy related to book purchase.

Recently, Union Bank has been embroiled in a big controversy related to purchase of books. Union Bank of India has spent Rs.7.25 crore purchasing a book. The Bank is facing serious questions after reports surfaced that it placed a large order worth around ₹7 crore for 2 lakh copies of a book written by 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.

What Union Bank replied to Stock Exchange?

Union Bank of India submitted following clarification to Stock Exchange

This is with reference to your letters cited above seeking clarification/confirmation on the news appearing in “Media/Publication” titled “Union Bank faces heat over ₹7.25 crore book purchase.”

In this regard, we would like to submit the following:

• The Bank has made the said procurement. However, there were certain lapses in the procurement, which are being examined by the Bank.
• It is clarified that the subject matter does not fall under the criteria prescribed for material events as per Regulation 30 of SEBI (LODR) Regulations, 2015. The information reported does not have any material impact on the Bank’s operations or financials at this stage.
• There is no such information which is not disclosed by the Bank and has an impact on the movement of the trading of the Bank’s securities.
• Therefore, disclosure under Regulation 30 is not warranted and at present, there are no regulatory/legal proceedings arising on account of this matter.
• The said article does not have any material impact on the Bank.

The Bank remains committed to comply with all applicable regulatory requirements and will make appropriate disclosures, as and when any reportable event occurs in terms of the SEBI (LODR) Regulations, 2015.

Also Read below related news:

• Govt will not provide tenure extension to Union Bank MD&CEO amid Rs.7 crore Book Purchase Controversy
• Union Bank admits there were Lapses in Book Purchase and Expenditure of Over Rs.7 Crore
• India Appoints Parameswaran Iyer as Temporary IMF Representative after exit of K.V. Subramanian
• Why Krishnamurthy Subramanian Removed from IMF? Know about him and Full Controversy
• Why Union Bank wasted Crores of Rupees on Book Purchase? Employees demand investigation