Union Bank under scrutiny for purchasing over 1.8 lakh copies of ‘India@100’ for Rs 7.25 crore: Report

Public sector bank Union Bank of India has come under the scanner for its reported largesse on a book by former chief economic adviser (CEA) Krishnamurthy V Subramanian. The bank decided to purchase nearly 2 lakh copies at a massive cost of Rs 7.25 crore to distribute among its customers, local schools, colleges, libraries etc. 

According to a report by The Economic Times, Union Bank of India placed the order ahead of the publication of Subramanian’s ‘India@100: Envisioning Tomorrow's Economic Powerhouse’. 

The report comes after the government prematurely terminated his tenure last week. As per the daily, one of the reasons for his exit is alleged improprieties around promotion of his book. 

Ahead of the book’s publication in August last year, the bank’s support services department at its central office wrote to 18 zonal heads, to inform them of the decision to procure and distribute the books. The letters stated that 189,450 copies – 10,525 copies by each zonal office – at the cost of Rs 350 per paperback book, and 10,422 copies at Rs 597 per hardcover book were to be purchased. This would amount to Rs 7.25 crore.

According to the report, the zonal offices were asked to distribute the books to the regional offices under them. A 50 per cent advance was already sent to the publishers Rupa Publications by the time the letter was sent. The remaining payment was to be made by the regional offices under “miscellaneous” head. 

Union Bank managing director and chief executive A Manimekhalai suspended Girija Mishra who was overseeing the support services department. Mishra had come under the scanner for authorising this payment. Manimekhalai informed the board that she had asked Mishra to make the purchase but to not break any rules. Executive director Nitesh Ranjan, who oversees marketing and publicity, said he was not informed of the 50 per cent advance to Rupa. 

On May 4, an association of bank employees wrote to Manimekhalai, asking for an investigation into the wasteful expenditure.