Page 118 - A Banker Down the Rabbit Hole

35. Managers have quite interesting

categories

T his was my second time posting at this branch. While all these

years of working at different branches, I had observed that
there were four types of Managers at various branches of the
bank.

Type -1 officers were very good only at mobilizing the deposits from
the public.

This was a very important function of the Bank as an intermediary
between savers and users of funds. But they enjoyed good support of
the higher office because they helped in achieving their deposit
mobilization targets. They were the ones who got all the appreciation
and faster promotions. The reward system was heavily biased towards
them. The deposits are the raw material for the bank to finance
borrowers and earn income for the bank. It was a paradox. The depositors
would take back their money with interest. There was a lopsided stress
on deposits as loaning and the recovery are also must for the viability
and profitably of the banks.

Type-2 officers were very aggressive and adept at granting loans only.
This was another most important area of banking to earn interest income.
The interest on loans and non-interest fee based income must be earned
to meet the cost of interest payable on deposits, employees' salaries,
other overheads, some hidden costs on account of non interest earning
Cash Reserve with RBI (currently@ 4% of Net Demand and Time Deposits
and borrowings), to provide for bad debts and to have some profit margin
for the shareholders. Some of them used to be punished for wrong

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