Union Bank shares fall 4% after Rs 7.25 crore book purchase sparks controversy
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Shares of Union Bank of India fell nearly 4% to Rs 121.3 in intraday trade on Tuesday after fresh scrutiny emerged over the lender’s decision to purchase nearly two lakh copies of a book for Rs 7.25 crore ahead of its publication last year. The book in question, India@100: Envisioning Tomorrow's Economic Powerhouse, was authored by Krishnamurthy V Subramanian, the former Chief Economic Adviser to the Government of India. Subramanian was recently relieved of his role as India's nominee executive director at the International Monetary Fund, with reports linking his exit to alleged improprieties around the promotion of the book. According to internal documents seen by ET, the bank’s central office issued two inter-office letters in June and July 2024, instructing its 18 zonal heads to purchase and distribute 1,89,450 paperback copies at Rs 350 each and 10,422 hardcover copies at Rs 597 each. The books were to be distributed among cus...