Page 242 - A Banker Down the Rabbit Hole

69. A stunning case of Bright

Acrylon Ltd.

We had a very valued corporate borrower account Bright
Acrylon Ltd. (BAL)
X This was headed by an industrialist who was considered to be a very
sharp and mature businessman.

X There was a huge demand for Acrylon in India but producers were
far and few between.

X This Company became profitable immediately after it went into
operations.

X The plant was put up with foreign collaboration in the neighboring
state.

Our bank had been participating in consortium of lenders with 25% share.
The conduct of account was satisfactory for years together except a few
problems faced by the company. The management was transparent and
open about their problems with the lenders and they enjoyed the
confidence of the members of the consortium.

My recently joined Chief who was considered credit appraisal specialist,
was armed with thorough study of markets, industries and sectors in our
economy. His predictions about the fate of sectors and companies there
in had been found very reliable. He had spent about 25 years in Credit
Department of the bank at Head Office. He did not have any long
administrative experience but was a renowned expert in credit appraisal.
It was in the interest of the bank to retain this expertise at corporate
office where all the large borrower accounts are appraised. However, due

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