Union Bank's Big Book Buy: A Rs 7.25 Crore Headache
Okay, so you won't believe this. Union Bank of India, a pretty big name in public sector banking, is in hot water. They spent a whopping Rs 7.25 crore – that's 72.5 million rupees! – on 200,000 copies of a book called "India@100," written by former Chief Economic Advisor Krishnamurthy V. Subramanian. The plan? Distribute them to customers, schools, colleges, you name it. But things didn't exactly go as planned.
The Book That Broke the Bank (Almost)
Seriously, Rs 7.25 crore on books? That's a lot of books. We're talking 189,450 paperbacks at Rs 100 each and another 10,422 hardcover copies at a pricier Rs 597 each. The bank's 18 zonal offices each got a huge chunk to hand out. It all feels a bit… excessive, doesn’t it?
The Timing: This is where it gets really interesting. Mr. Subramanian recently left his post at the International Monetary Fund (IMF) six months early. Suddenly, this massive book purchase looks a *lot* more suspicious. Was this a way to boost sales? It certainly looks that way.
The IMF's Take: The IMF quickly distanced itself, saying it was purely an Indian government decision. But the damage was done. The timing couldn't have been worse.
Internal Shakeup: A general manager at Union Bank got suspended over this. An investigation is underway, and the All India Bank Employees' Association (AIBEA) is demanding a full, transparent accounting of this "wasteful expenditure." They’re not happy.
And get this – half the money was paid *before* the purchase even became public knowledge. The rest? Hidden under the vague label of "miscellaneous" expenses in the regional offices’ budgets. Honestly, who saw that coming?
Politics, Public Outrage, and Falling Stock Prices
This isn't just an internal bank issue; it's turned into a full-blown political scandal. The Congress party is accusing the government of using public funds for political propaganda, pointing to Mr. Subramanian's past role as CEA and his close ties to the government. They smell a rat, and so does everyone else.
Mr. Subramanian's abrupt departure from the IMF only fueled the fire. The lack of transparency surrounding the whole thing? That's what's really making people angry. You know how sometimes things just spiral? This is one of those times.
And the stock market? It didn't take kindly to the news either. Union Bank's share prices took a serious hit.
The Aftermath and What's Next
KPMG, a major auditing firm, is doing a forensic audit. We're all waiting to see what they find. The results will be huge in determining who's responsible and what the consequences will be.
The future of Union Bank’s leadership is uncertain, This whole thing has seriously damaged their reputation. It raises serious questions about their corporate governance and financial practices. It's a massive blow to their credibility.
This Rs 7.25 crore book purchase is a cautionary tale. It’s a stark reminder that transparency and accountability are crucial when dealing with public funds. The investigation is key, but this whole situation has exposed some serious cracks in the system.
