Former PNB MD & CEO Usha Ananthasubramanian (Photo:Shekhar Ghosh)
With CBI filing its first charge sheet in the Nirav Modi-Punjab National Bank (PNB) fraud case, there is only one name that stands out. Former PNB CEO & MD Usha Ananthasubramanian has been named in the charge sheet for her alleged role in one of the biggest banking frauds in the country. Ananthasubramanian is currently at the helm of anther state-run lender Allahabad Bank, an MD & CEO no less.
The Allahabad Bank has called for a board meeting to decide the fate of its top serving executive following the CBI charge sheet naming her in the Nirav Modi scam. The allegation against Ananthasubramanian is that she failed to comply with the Reserve Bank of India's (RBI) circulars issued on the Society for Worldwide Inter-bank Financial Telecommunications (SWIFT) control system in 2016.
On February 27, soon after Rs 13,700-crore fraud came to light, Ananthasubramanian was grilled by the CBI. Allahabad Bank's board is likely to take a call to divest the powers vested with the current CEO. This comes after the government asked the Allahabad Bank board to take away all the powers of its CEO and MD.
Ananthasubramanian, who completed her one year as the CEO & MD of Allahabad Bank on May 6, served as the Managing Director & Chief Executive Officer of Punjab National Bank from August 2015 to May 2017. In an earlier stint, Ananthasubramanian also served as the Executive Director of Punjab National Bank from July 2011 to November 2013.
During her long career spanning about 34 years, Ananthasubramanian has also worked as the CMD of erstwhile Bharatiya Mahila Bank. She was head of the core management team constituted by the Ministry of Finance for coordinating the process of formation of a women-centric bank.
Early this year, Ananthasubramanian became the first woman to be elected as the chairman of the Indian Banks' Association, the 71-year old industry body for banks.
Usha Ananthasubramanian holds a Master's Degree in Statistics from the University of Madras and a Master's Degree in Ancient Indian Culture from University of Mumbai. She began her banking carrier with Bank of Baroda, where she worked as a Specialist Officer in February 1982. Ananthasubramanian was closely associated with the transformation project of Bank of Baroda including rebranding and innovative HR initiatives.
Ananthasubramanian served as the Chairman of the Board of Punjab National Bank (International) Limited from January 11, 2016 to May 5, 2017 and PNB Housing Finance Limited from August 26, 2015 to May 5, 2017. She served as the Chairperson at PNB Gilts Ltd. from September 24, 2015 to May 5, 2017. She has also served as a Director of Export-Import Bank of India since November 27, 2015 until May 24, 2017.
Along with Usha, three other top officials of PNB, Brahmaji Rao (Executive Director), Sanjiv Sharan (Executive Director) and Nehal Ahad (General Manager) have been named as accused. During investigation, CBI found lapses from their side as far as SWIFT transactions were concerned. The board PNB has also been asked to divest two executive directors of all powers.