Home - Banking News - PNB Scam – Govt dismisses Usha Ananthasubramanian from service at the last day of work

PNB Scam – Govt dismisses Usha Ananthasubramanian from service at the last day of work

In a sudden move, Government of India has dismissed Allahabad Bank Managing Director Usha Ananthasubramanian from service. Ananthasubramanian is the former CEO & managing director of scam hit Punjab National Bank. She was sacked on last day at work before retirement. Though it was her last day at work, Ananthasubramanian will not enjoy any retirement benefits.

She was sacked for her alleged involvement in the Rs 143-billion Punjab National Bank (PNB) fraud.

In its order, the government 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. 

Separately, the Reserve Bank of India (RBI) is also going to file a criminal case against Ananthasubramanian, Sharan, and former PNB ED Ram S Sangapure, exercising its power under the Banking Regulation Act, 1949, for their involvement in the PNB fraud. 

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