Union Bank’s ₹7.25 Crore Book Purchase Under Investigation
Union Bank of India is under investigation following reports that it purchased nearly 2 lakh copies of ‘India@100: Envisioning Tomorrow’s Economic Powerhouse’ by former Chief Economic Adviser Krishnamurthy V Subramanian at a cost of ₹7.25 crore. The books were intended for distribution among customers, schools, colleges, and libraries. The purchase was made ahead of the book’s publication in August 2024, raising questions about the bank’s spending practices and potential conflicts of interest.
Alleged Misuse of Funds and Internal Investigation
According to reports, Union Bank’s support services department directed 18 zonal offices to procure a total of 189,450 paperback copies at ₹350 each and 10,422 hardcover copies at ₹597 each. A 50% advance payment was reportedly made to the publisher, Rupa Publications, before the official order was issued. The remaining balance was to be settled under a “miscellaneous” head.
In response to the controversy, Union Bank’s Managing Director and CEO, A. Manimekhalai, suspended Girija Mishra, the official overseeing the support services department, for authorizing the purchase. Manimekhalai stated that while she had instructed Mishra to proceed with the purchase, she had emphasized the importance of adhering to all rules and regulations. Executive Director Nitesh Ranjan, who oversees marketing and publicity, claimed he was not informed about the advance payment to the publisher.
Employee Association Calls for Investigation
On May 4, an association of Union Bank employees wrote to A. Manimekhalai, urging a thorough investigation into the alleged wasteful expenditure. The association expressed concerns over the lack of transparency and accountability in the procurement process. They called for measures to prevent such incidents in the future and to uphold the integrity of the bank’s operations.
Broader Implications for Public Sector Banks
This incident has raised broader questions about spending practices in public sector banks and the need for stringent oversight. Experts argue that such large-scale purchases should undergo rigorous scrutiny to ensure that public funds are used effectively and for their intended purposes. The controversy also highlights the importance of transparency and accountability in financial institutions, especially those with public ownership.
Next Steps and Future Outlook
Union Bank has stated that it is committed to upholding the highest standards of integrity and transparency. The bank has initiated an internal review of the procurement process and is cooperating with relevant authorities to address the issue. The outcome of the internal investigation and any subsequent actions will be closely monitored by stakeholders and the public.
As the investigation unfolds, it remains to be seen what measures will be implemented to prevent similar incidents in the future and to restore public trust in the bank’s operations.