PNB fraud: MoF initiates action against Allahabad Bank CEO Usha Ananthasubramanian

PNB fraud: MoF initiates action against Allahabad Bank CEO Usha Ananthasubramanian

"The PNB board divested its two executive directors, KV Brahmaji Rao and Sanjiv Sharan, of all financial and executive powers", Financial Services Secretary Rajiv Kumar said here.

The officials said supplementary charge sheets will have information from foreign governments, shell companies, foreign banks, and detail the role of officials posted in foreign branches of Indian banks which issued credits to Modi's firms on the basis of PNB LoUs etc. The government also initiated the removal process of former boss of the beleaguered public-sector bank, Usha Ananthasubramanian, who is now the managing director and CEO of Allahabad Bank. It is alleged that senior officials of the PNB, including the then CEO and MD Usha Ananthasubramanian, did not implement the circulars and caution notices issued by the Reserve Bank of India regarding safeguarding swift operation and misrepresented the factual position to the RBI. Talking to reporters after addressing PNB board meeting Mr Kumar said that the action taken will be announced after the meeting. Ananthasubramanian may also meet the same fate; Allahabad Bank has informed investors that it has called for a board meeting on May 15 to take up the issue.

"We had asked for explanation from two EDs (executive directors) in PNB and Allahabad Bank MD in PNB case".

He also said state-run PNB had begun the process of removing two executive directors, without naming the executives or saying why the three were being ousted.

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All of the PNB ex and current officials have been named on grounds of violating RBI's directive on SWIFT messaging used for inter-bank communication. In an earlier stint, Ananthasubramanian also served as the Executive Director of Punjab National Bank from July 2011 to November 2013.

A man reads a newspaper outside a branch of Punjab National Bank (PNB) in Ahmedabad, March 20, 2018. PNB's earnings will be pressurised as it will have to make enough provisions to deal with the scam-related payouts to other banks.

"For removal and disciplinary action, there's a set procedure, under Section 8 of the Nationalised Bank Schemes 1970". So this is a clear message that we have to be responsible for what we do. "The departmental inquiry will continue against them separately", he said. "They are responsible person and its only a few who are into this kind of thing otherwise by and large bankers have contributed to the economic growth of the country".

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