PNB Fraud: Why Usha Ananthasubramanian was sacked?

Chennai: Allahabad Bank managing director (MD) and chief executive officer (CEO) Usha Ananthasubramanian was sacked by the Union government – her last day at work before retirement – for her alleged involvement in the Rs 143 billion Punjab National Bank (PNB) fraud.

In its order, the government, on Monday, said the dismissal action against Ananthasubramanian was taken for “failing to exercising proper control over the functioning of PNB while serving as its MD and CEO”.

It said SWIFT, an international messaging system used by banks to sanction loans, was also misused. This enabled the fraud to persist over several years.

The government’s notification for dismissal of her services came after the Central Bureau of Investigation (CBI) sought its sanction for prosecution in the fraud case. Terminating her service is the highest form of action against a public servant. Though it was her last day at work, Ananthasubramanian will not enjoy any retirement benefits, a government official said.

On her last day at work as MD and CEO of Allahabad Bank, Ananthasubramanian had a rather unceremonious exit. Minutes before her planned farewell function at the bank by the employees, she left the bank premises abruptly as news of her dismissal broke.