ET reported Tuesday that the bank purchased nearly 200,000 copies of India@100: Envisioning Tomorrow’s Economic Powerhouse for Rs 7.25 crore to distribute the copies of the title to the bank’s customers, local schools and college libraries.In a notice to the stock exchanges Tuesday, the lender confirmed ET’s Monday newsbreak. “The bank has made the said procurement. However, there were certain lapses in the procurement, which are being examined by the bank,” the lender told the stock exchanges.
Last Saturday, the government recalled Subramanian after the Appointments Committee of the Cabinet “terminated” his services as the IMF’s executive director (India), six months before his three-year term was set to conclude. One of the reasons cited for his recall pertained to alleged improprieties around the promotion of his books.
Manimekhalai will complete her three-year term at the bank on June 30, and she is otherwise eligible for an extension since she would superannuate only in March 2026.
Board Objections
However, the deal to procure these copies of the book and objections raised by the board thereafter dented her extension bid, said the people privy to the development. The bank has since made the full Rs 7.25 crore in payments to Rupa Publications and copies of the book have been delivered to the zonal offices of the bank across India.A series of developments between December 2024 and April put the spotlight on the role of the MD & CEO. During this period, the board questioned the authority of a general manager to place the order of such a large sum, appointed an independent consulting firm, and eventually, the general manager was suspended.
Subsequently, in April, Manimekhalai wrote to the ministry that she does not want an extension and the necessary clearances from the Central Vigilance Commission (CVC), sources cited above said.
Subsequently, in April, Manimekhalai wrote to the ministry that she does not want an extension despite clearances from the Central Vigilance Commission (CVC), sources cited above said.
The CVC clearance is a prerequisite for her extension. But the Financial Services Institutions Bureau, or FSIB, in its meeting also pointed to these observations and considered them adversary remarks, said the sources cited above. The FSIB will now search for a new CEO.
Manimekhalai did not respond to a mail from ET seeking comments.
According to a senior finance ministry official, an explanation was sought from the bank in February after complaints on the matter.
“The managing director had then submitted a response, and on that basis, these observations were shared with the relevant authorities,” said an official, requesting anonymity.
Manimekhalai had started her career at Vijaya Bank and prior to joining Union Bank, she was executive director at Canara Bank.
‘June-July Letters’
ET has seen and reviewed two inter-office letters issued in June and July 2024, ahead of the book’s publication in August. In these letters, the bank’s support services department at its central office wrote to 18 zonal heads, informing them of the decision by the “top management” to procure and distribute hardcover and paperback versions of the book among customers.
When this expenditure item – purchase of books — was brought for ratification in a December board meeting of the lender, its executive director, Nitesh Ranjan, who oversees marketing and publicity among other portfolios, said he had not been informed about this purchase and declined to ratify the expenditure.
The board questioned the authority of Girija Mishra, the general manager overseeing the support services department, to authorise this payment by himself.
Manimekhalai informed the board, according to people aware of developments, that she had asked Mishra to make the purchase, but not to break any rules.
About a week later, on December 26 last year, she suspended him, as reported earlier.
In January this year, the bank appointed KPMG to identify the lapses in this transaction. The consultant submitted its report by the end of that month.
