FOUNDATION MAGAZINE FINANCIAL ADVICE STOCKLETTERS PORTFOLIO PMS BOOKS
BUY
Union Bank under Fire over Rs7.25 Crore Book Order; Suspends GM
Moneylife Digital Team 09 May 2025
Economy & Nation
Union Bank of India is facing intense scrutiny after it placed an unusually large book order worth Rs7.25 crore for nearly 200,000 copies of India@100: Envisioning Tomorrow’s Economic Powerhouse, a book authored by former chief economic adviser (CEA) Krishnamurthy V Subramanian. As first reported by The Economic Times (ET), the public sector bank's (PSB’s) decision to distribute the book widely across the country has triggered a probe and led to the suspension of a senior general manager.
 
The decision was reportedly approved ahead of the book’s publication in August 2024. According to ET, the Bank’s support services division issued internal communications in June and July 2024 instructing its 18 zonal heads to procure and distribute both paperback and hardcover versions of the book among ‘customers, local schools, colleges, libraries’ and other institutions. The order included 189,450 paperback copies priced at Rs350 and 10,422 hardcover copies at Rs597 each, with the total cost adding up to Rs7.25 crore.
 
Half of this amount—over Rs3.6 crore—was paid in advance to Rupa Publications, the publisher. The zonal offices were further directed to distribute the books regionally under the ‘miscellaneous’ budget head, the report says.
 
The matter reached the Bank’s board in December 2024, when 50% of the expenditure had already been incurred. Nitesh Ranjan, the executive director in charge of marketing and publicity, reportedly told the board that he was unaware of the purchase and had not approved the expenditure. The board then questioned the authority of Girija Mishra, the general manager of the support services division, to approve the payment without seeking ratification.
 
Following this, the Bank suspended Ms Mishra and, in January this year, appointed accounting firm Klynveld Peat Marwick Goerdeler (KPMG) to conduct a forensic review of the transaction. ET reports that KPMG has submitted its findings earlier this month but it remains “unclear whether the Bank has taken any further steps, apart from suspension of the GM.”
 
Meanwhile, employee unions have demanded a broader investigation, alleging that senior management used public funds irresponsibly to promote a book connected to a prominent figure. In a letter to the Bank’s managing director and chief executive officer (MD&CEO) A Manimekhalai, the All India Union Bank Employees’ Association (AIUBEA) called the purchase ‘wasteful expenditure’ and questioned whether there was any real benefit to the Bank or its customers from such large-scale distribution of the book.
 
The book, written during and after Mr Subramanian’s tenure as CEA (2018–21), outlines a blueprint for India to become a US$55trn (trillion) economy by 2047. It claims to merge economic theory with policy practice, and sets out four pillars for national growth: macroeconomic stability, inclusive development, ethical wealth creation and investment-driven growth.
 
Adding to the controversy, Mr Subramanian was India’s nominee as executive director (ED) at the International Monetary Fund (IMF) until the government terminated his tenure in April 2025, recalling him from his IMF post—six months ahead of the end of his term. While initial speculation had pointed to discomfort over Mr Subramanian’s criticism of IMF data in the book, new questions are being raised over whether his book was unduly promoted through institutional channels.
 
The IMF, for its part, has clarified that Mr Subramanian’s exit was a decision taken entirely by the Indian government. His seat at the IMF’s executive board remains vacant as of early May. Mr Subramanian has yet to issue a public statement on the matter.
 
Comments
parimalshah1
2 weeks ago
Golmaal hai bhai sab golmal hai.
Reply
imnnayak
3 weeks ago
SBI spent 60 crores for using M S Dhoni as brand ambassador. If this book is donated by union bank and it makes an impact on few reders, it is considered as money spent for advertisement. Further, the readers are made aware of economic potential of India and may have a good impact on the reader. It is not like loan mela or like a scam like so many are involved amounting to fraud. This is a matter of
misunderstanding. We had made a deposit in ICICI bank. We got a gift pack by post and we could make out through print it continued materials costing 2500 rs. Believe me, it was so bad, it was not even worth 10 rs use. Fact! What a waste of matter. Scrap. Any fool would, know. That is your money. A slap on our face. Here, I don't feel such pain. There is national pride.
Reply
gopalakrishnan.tv
3 weeks ago
I have seen banks indulging in cross sales and make customers to buy insurance products and other financial products though strictly not permitted as per rules and directives from the RBI. Ordering books ultimately at depositors' cost using depositors money to the tune of Rs7.25 crores for distribution across the country through zonal offices is something unheard of and a totally innovative approach to enhance banks quality of customer service perhaps . This only smacks of disrespect and total disregard in understanding the functions of banking, their role and responsibilities in serving the economy, banks deposit customers with whose backing banks survive and earn their bread and butter. It only reflects poorly on the Governance standards and lack of accountability to the regulator and supervisor .
Reply
sathya2011
3 weeks ago
How can a PSB purchase such a huge volume of books from their discretionary expenses and definitely there need to be a public disclosure of the reason based on the forensic audit.
Reply
Meenal Mamdani
Replied to sathya2011 comment 3 weeks ago
You are absolutely correct.
There seems to be a concerted effort which can only have come from very high up the chain of command, not just the bank but political.
Is BJP/Modi trying to advertise how brilliant its economic adviser was?
Or is someone in the bank trying to suck up to the powers at the center?
Reply
Economy & Nation
IndusInd Bank's MD and CEO Sumant Kathpalia Also Resigns
Moneylife Digital Team 29 April 2025
IndusInd Bank Ltd, which has been under severe scrutiny after reporting discrepancies in its derivatives portfolio, saw the resignations of two top executives. Sumant Kathpalia, managing director and chief executive officer (MD&CEO)...
Economy & Nation
Too Slick to Stick: Will Dinesh Dalmia Dance through India’s Banking Loopholes?
Sucheta Dalal, 25 April 2025
Just under a year ago, I reported (Moneylife Exclusive: Serial Fraudster Dinesh Dalmia Strikes Again: Dupes Lenders of Nearly Rs200 Crore) that Dinesh Dalmia, serial fraudster and founder of the now-defunct DSQ Software group, had...
Economy & Nation
Government Clarifies No GST on UPI Transactions of over Rs2,000
Moneylife Digital Team 21 April 2025
The ministry of finance has issued an official statement refuting claims that the government is considering imposing goods and services tax (GST) on unified payments interface (UPI) transactions exceeding Rs2,000. The statement,...
Economy & Nation
Bank Credit Set To Grow up to 13% in FY26 on Regulatory Support and Rate Cuts: CRISIL
Moneylife Digital Team 15 April 2025
Bank credit in India is expected to grow by 12%-13% in the current financial year (FY25-26), an increase of 100-200bps (basis points) from last year’s estimated 11%-11.5% growth, according to a research note by CRISIL Ratings. The...
  • EDITORS'
    PICKS
  • MOST
    POPULAR
  • MOST
    READ
Free Helpline
Legal Credit
Feedback
Buy Now!

Absolute Power

Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam

View Options

The Scam: Now in it's 12th Printing

29 Years Of The Scam: The Perennial Bestseller, reads like a Thriller!
#Scam92: Read the actual story.

Buy Now Gift Know More

Moneylife Online Magazine

Fiercely independent and pro-consumer information on personal finance.

1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Buy Now Gift Know More

Monthly Digital Access

Fiercely independent and pro-consumer information on personal finance.

30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Buy Now Know More

Full Archive access

Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )

Buy Now

Stockletters in 5 Flavours

Outstanding research that beats mutual funds year after year

Buy Now Know More

MAS: Complete Online Financial Advisory

(Includes Moneylife Online Magazine)

Buy Now Know More
We are listening!
Reset
Success!

To continue

Please

or

With