Page 237 - A Banker Down the Rabbit Hole

67. Signing of loan documents by a

CEO- a pleasant experience

A break from the past practice created commotion
In my personal capacity, I used to exercise all care in identifying a
borrower and getting the loan documents executed in my presence.
Once, at an exceptionally large branch, we had renewed a large credit
line under Consortium Arrangement (a formalized group of banks for a
joint loan appraisal and other aspects of the borrower company). This
helped diversify the risk exposure of a large loan amount for all member
banks and also gave an opportunity to any bank to participate in the loan
to a credit worthy borrower of good standing.

We had to get the loan documents signed from the authorized signatories
of the borrower company. The officials of the company, HTL Technologies
Ltd. came to pick up the set of blank loan documents for getting them
signed by their authorized officials and submit the set of documents duly
signed and filled in. I told them that the documents need to be signed in
my presence as the Head of the Credit Department or a Manager deputed
by me. They were shocked at my suggestion and told me that it had never
happened during entire tenure of their banking relationship. I told them
that they should allow me to follow the due procedure laid down by our
bank like they might be following the rules of their own company. If that
had not happened before it did not mean it would never happen in future
also.

I also told them, "I know that the Chairman and his team of authorized
signatories are big names in IT World and very busy persons. I suggest
that instead of all of them coming to the bank, I could visit them

234 | A Banker down the Rabbit Hole