The MD & CEO of state-run Union Bank of India, A Manimekhalai, will not be given an extension when her term ends early June following misgovernance allegations raised by the lender's board members, multiple people with knowledge of the matter told ET.
What shortened the odds on her exit was a deal struck by Union Bank with Rupa Publications to purchase a large number of copies of a book authored by Krishnamurthy V Subramanian, India's former executive director at the International Monetary Fund (IMF), without the board's authorisation.
CEO Did Not Seek Extension
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.
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CEO Did Not Seek Extension
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.
