Turning the Page: Union Bank’s Book Buy Sparks Audit and Industry Buzz

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Union Bank of India is under intense scrutiny after revelations that it spent ₹7.25 crore to procure nearly 200,000 copies of “India@100: Envisioning Tomorrow’s Economic Powerhouse,” authored by former Chief Economic Adviser Krishnamurthy V Subramanian. The move, intended to distribute books to customers, corporates, schools, and libraries nationwide, has triggered questions about procurement procedures and the necessity of such a large-scale purchase.

Key Highlights:

The bank’s central office ordered 189,450 paperback and 10,422 hardcover copies, paying a 50% advance to Rupa Publications before the book’s August 2024 release. The remaining payment was to be covered from the bank’s miscellaneous revenue budget.
Internal communications show the order was executed through 18 zonal offices, each tasked with distributing over 10,000 copies. Such a large purchase is unusual in India, where English-language books rarely sell beyond 10,000 copies.
The decision has come under the spotlight following Subramanian’s early exit from his IMF role, with reports linking the controversy to alleged improprieties in the book’s promotion.

Union Bank has acknowledged certain lapses in procurement and confirmed that these are under examination. The general manager involved was suspended, and KPMG was appointed to review the process. Employee unions have demanded a deeper probe into what they term “wasteful expenditure.”

The bank clarified that the reported information does not have a material impact on its operations or financials, seeking to reassure stakeholders amid the ongoing review.

Sources: Economic Times, Business Standard, CNBC-TV18