Money & Banking

Finance Ministry asks Allahabad Bank board to divest CEO of all powers in PNB scam case

PTI New Delhi | Updated on May 14, 2018 Published on May 14, 2018

The Finance Ministry has asked Allahabad Bank to take away all the powers of its CEO and MD Usha Ananthasubramanian, former chief of Punjab National Bank, in connection with the $2-billion fraud in PNB.

Cracking the whip, the government today asked the board of Allahabad Bank to take away all the powers of its CEO and MD Usha Ananthasubramanian, former chief of Punjab National Bank, in connection with the $2-billion fraud in PNB. The board of Punjab National Bank (PNB) too has been asked to divest two executive directors of all powers, Financial Services Secretary, Rajiv Kumar, told presspersons here.

The announcement came within hours of CBI filing its first chargesheet in the country’s largest financial scam of more than $2 billion in PNB allegedly perpetrated by billionaire jeweller Nirav Modi. The chargesheet has detailed the alleged role of former PNB chief Ananthasubramanian, who is now Allahabad Bank CEO and MD, in the scam.

Ananthasubramanian was the MD and CEO of PNB from 2015 to 2017 and was questioned recently by the CBI in connection with the case. The CBI has also named PNB Executive Directors K V Brahmaji Rao and Sanjiv Sharan, and General Manager (international operations) Nehal Ahad in its chargesheet.

The Financial Services Secretary further said a showcause notice was issued to them about 10-days back by the Ministry. He also informed that the board meeting of PNB was on and the Ministry was waiting for its resolution.

Published on May 14, 2018
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