Money & Banking

Govt dismisses Usha Ananthasubramanian as Allahabad Bank MD & CEO

Our Bureau New Delhi | Updated on August 13, 2018 Published on August 13, 2018

The Centre on Monday dismissed Usha Ananthasubramanian as MD and CEO of Allahabad Bank, saying it was needed to secure the interest of this public sector bank that she had led from May 2017.

She was to retire on Monday, but was been dismissed ahead of that.

Three months ago, Ananthasubramanian was divested of all her powers as MD of Allahabad Bank, after being named in a CBI chargesheet in the ₹13,500-crore PNB fraud case but had continued to be an employee of the bank. She had been MD and CEO of PNB between August 2015 and May 2017, before moving to Allahabad Bank.

Meanwhile, media reports said the Centre has also given permission to the CBI to prosecute Ananthasubramanian and former PNB Executive Director Sanjiv Sharan.

In taking this decision for her removal, the Department of Financial Services had consulted the Board of Allahabad Bank, said a formal notification issued by the Centre.

This removal action comes in the wake of her having failed to exercise proper control over the functioning of Punjab National Bank while serving as its MD & CEO, which had enabled the much talked about SWIFT-related Nirav Modi-perpetrated fraud at PNB’s Brady House branch in Mumbai go undetected for several years, snowballing to a large amount.

Meanwhile, in a separate late evening statement, PNB said:”With a view to further improve corporate governance and excellence, PNB is taking all required steps to check any kind of gap, loopholes and deviations in system and procedures. The norms are being strengthened and standard operating procedures are being revisited. The move in this direction has been appreciated by all stakeholders”.

The bank has strong foundations and is committed to implement ethical standards besides tightening the norms wherever required despite demonstration carried out by Officers’ Associations/Unions at some centres, the statement added.

Published on August 13, 2018
This article is closed for comments.
Please Email the Editor