Ex-IMF director K.V. Subramanian’s Rs 7.25 crore book with Union Bank: what we know

Union Bank of India, one of the country’s leading public sector lenders, has come under scrutiny following its purchase of nearly 200,000 copies of a book authored by former chief economic adviser (CEA) Krishnamurthy V. Subramanian.

The order, costing the bank an estimated Rs 7.25 crore, drew criticism from staff associations and industry observers, particularly as it coincides with Subramanian’s abrupt recall from his post as India’s executive director at the International Monetary Fund (IMF).

According to internal documents, Union Bank’s central office ordered 189,450 paperback and 10,422 hardcover copies of India@100: Envisioning Tomorrow’s Economic Powerhouse.

The book, priced at Rs 350 and Rs 597 for the paperback and hardcover editions respectively, was published in August 2024 and outlines a path for India to become a USD 55 trillion economy by 2047.

The procurement, routed through the bank’s 18 zonal offices, saw each office tasked with distributing over 10,000 copies to customers, corporates, educational institutions and libraries nationwide!

Such a large-scale purchase is highly unusual in the Indian publishing market, where English-language books rarely sell more than 10,000 copies. A 50 per cent advance was paid to Rupa Publications before the book’s release, with the remainder to be covered from the bank’s miscellaneous revenue budget.

Nor is such a (purported) 'public awareness campaign' common in the banking sector, either public or private.

Staff unions have questioned the necessity and timing of the expenditure, calling it “wasteful” and demanding greater transparency and accountability in the bank’s spending decisions.

The controversy has been further fuelled by the timing of Subramanian’s exit from the IMF.

Appointed in late 2022 to represent India, Bangladesh, Sri Lanka, and Bhutan, he was recalled by the Indian government in April 2025, six months before the end of his three-year term.

While initial speculation linked his recall to his public criticism of IMF data in the book, more recent reports suggest the government may have been concerned about the scale and propriety of the book’s promotion, particularly through a public sector bank.

The IMF has clarified that the decision to recall Subramanian was made solely by the Indian government. His successor on the IMF Executive Board has only recently been announced.

Subramanian, who has not commented publicly on the matter, previously served as India’s CEA from 2018 to 2021 and is known for his advocacy of investment-led growth and ethical wealth creation.

The controversy comes at a time when Union Bank has been making concerted efforts to improve its financial health. For the quarter ended March 2025, the bank reported a net profit of Rs 3,470 crore, up 18 per cent year-on-year, driven by robust growth in advances and improved asset quality.

The bank’s gross non-performing asset (NPA) ratio fell to 4.6 per cent, compared to 6.1 per cent a year earlier, reflecting a sustained focus on recovery and risk management. Net NPAs also declined to 1.2 per cent, the lowest in over a decade.

Despite these positive trends, staff unions argue that discretionary spending — such as the book purchase — has been diverting resources from core banking functions and customer service improvements.

They have called for a review of procurement policies and greater oversight of non-core expenditures.

The Union Bank episode has also reignited debate over the governance of public sector banks and the use of public funds.

While the bank maintains that the distribution of the book is intended to foster financial literacy and economic awareness, critics contend that such initiatives must be weighed against their actual benefit to stakeholders and the bank’s primary mandate.