Union Bank admits there were Lapses in Book Purchase and Expenditure of Over Rs.7 Crore
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New Delhi: Union Bank of India has admitted spending crores of rupees on purchasing books. 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.
The issue has now become even more controversial as the bank itself has admitted that there were “lapses” in the way the book was procured. In a statement to the stock exchanges on Tuesday, the bank said it is investigating the matter. The controversy seems to have affected investor confidence, as Union Bank’s share price fell by 6.18% on the Bombay Stock Exchange (BSE), closing at ₹118.35.
The bank is said to have paid 50% of the total cost in advance for the books. However, this bulk purchase has raised eyebrows and led to allegations of improper conduct, especially since government-owned banks normally do not make such massive book purchases.
Recently Krishnamurthy V 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.
One of the reasons Krishnamurthy Subramanian was called back early from his role as India’s Executive Director at the International Monetary Fund (IMF) was due to concerns linked to the promotion of this book. Normally, such IMF positions are held for three years, but Subramanian was recalled six months before his term ended.
According to sources, the order was placed via email around September 2024, and the publisher delivered the books within a month. However, even after seven months, the remaining 50% of the payment has not been made.
Letters from the bank’s Support Service Department to its zonal heads show that this book distribution was pushed by the top management, including Managing Director & CEO A Manimekhalai. The bank wanted to distribute the books to customers, schools, colleges, and libraries, calling it a “thought-provoking” and “hopeful” book.
In June 2024, Rupa Publications offered a student edition at ₹350 per copy, while in July, they offered the hardcover edition at ₹597 per copy. Zonal heads were instructed to place orders for over 10,000 copies each and pay 50% in advance under the “Miscellaneous Head” of the revenue budget. Click here to read what Bank Union said.
The issue has triggered concern within the bank as well. The All India Union Bank Employees’ Association has written to the bank’s CEO, questioning the decision. The union wants to know who approved such a large purchase and what benefits the bank received from it. Click here to read what Bank Union said.
In the letter dated May 4, union general secretary N. Shankar said it’s important to investigate if anyone in authority misused their power, and how such a deal could hurt the bank’s reputation and image. Click here to read what Bank Union said.
Publishing industry insiders say that while bulk orders are common, this order is unusually large for a public sector bank. Other small-scale bulk orders may have also been placed by private and institutional buyers, but none were anywhere near the scale of Union Bank’s deal.
