Union Bank of India’s top management has landed into trouble for an unusually large book order the state-owned lender placed with Rupa Publications worth Rs 7.25 crore.

The lender purchased nearly 200,000 copies of India@100: Envisioning Tomorrow's Economic Powerhouse, authored by Krishnamurthy V Subramanian, India's former executive director at the International Monetary Fund (IMF), without the board's authorisation.

The copies of the book, procured through the bank’s 18 zonal offices, were to be distributed to the bank's customers, local schools and college libraries. The top management of the bank thought it to be an exercise to tap future business opportunities.

According to information available, Union Bank’s central office ordered 189,450 paperback and 10,422 hardcover copies of the book, which outlines a path for India to become a $55 lakh crore economy by 2047. 

While Rupa was paid 50% in advance, the remaining half was to be covered from the  bank’s miscellaneous revenue budget. 

Published in August 2024, the book was priced at Rs 350 and Rs 597 for the paperback and hardcover editions, respectively.

Incidentally, the government abruptly recalled Subramanian from his post as India’s executive director at the IMF, six months before his three-year term was to end. Alleged improprieties around the promotion of his book is said to be one of the reasons for his recall, the other being his public criticism of IMF data. He has earlier served as India’s chief economic advisor (CEA) from 2018 to 2021.

 Admitting that there were certain lapses in the procurement, Union Bank said in a filing to the stock exchanges that it was examining the issue.

The bank’s board raised objections questioning the authority of a general manager to place the order of such a large sum, who was later suspended.

The repercussions of this could fall on Union Bank of India managing director and CEO A Manimekhalai. She will not be given an extension when her term ends early June following misgovernance allegations raised by the lender's board members, Economic Times reported quoting multiple sources. 

The book order issue has spoilt Manimekhalai’s chances. Though she is eligible for an extension after completing her three-year term at the bank on 30 June as she would superannuate only in March 2026, she most likely won't be granted one.

Manimekhalai, according to the report, wrote to the ministry in April that she does not want an extension.