Mumbai: Two executive directors of Punjab National Bank have been dismissed by the government for not exercising proper control of operations leading to the Rs 14,000-crore
scam which came to light in January 2018
Of the two, K Veera Brahmaji Rao has been sacked just days ahead of her retirement on January 22. Sanjiv Sharan is due to retire in May 2019.
The government had showcaused the two, asking why they should not be removed.
While serving as its Executive Director, which enabled the fraud through misuse of the SWIFT at the bank’s
branch “in Mumbai
The notification is subject to the outcome of a petition filed by Rao in the Delhi High Court.
Rao was appointed executive director in January 2014, before which he was given Vijaya Bank In PNB, he was responsible for multiple divisions, including risk management, treasury and operations. Sharan was the general manager with PNB before being elevated as executive director on September 2016.
Former PNB deputy manager Gokulnath Shetty, a prime accused in the Modi scam, had confessed to misusing the bank’s SWIFT messaging system to issue unauthorised bank guarantees since 2011. Investigating agencies said that lapses by successive management enabled fraud to continue.
In August 2018, the government had sacked former PNB CEO Usha Ananthasubramanian in the Modi scam. She was dismissed on her last day in office, which was her serving as managing director and CEO of Allahabad Bank.
According to bankers, the government appears to be sending out a message that it is taking a tough stance by not allowing the senior executives to retire. The CBI has filed a charge-sheet in the investigation and is currently probing senior executives.
On Friday, the governor of the Reserve Bank of India “The government, the Bank Board Bureau and the Reserve Bank are currently engaged in developing an objective framework for performance evaluation and this should be reinterpreted in the contours of corporate Governance in the public sector banks with a focus on transparency, accountability and skills, “he said.