Page 243 - A Banker Down the Rabbit Hole

to policy of the bank, agreed with the Bank Officers Associations, all the
officers and executives had to be transferred and go for job rotation. He
was in fact, a right replacement as Chief of an exceptionally large branch
because this branch initiated very large loan proposals for Head Office
being highly potential center of India.

One day, he called me to his cabin and informed that the Chairman of
BAL had just called him over phone to have some consultations with him.
The Chairman had even offered to come and meet the Chief at the branch
in case he was not free to go to the office of the company. He asked me
which of the alternative would be correct looking to our relations with
them and value of the account. I suggested that we should go to meet
him in his office in the afternoon.

We went there. He was quite courteous. He explained that he had put
up a plant to manufacture Silicon that was for multiple use in households
and industries and was in good demand. He had already incurred from
his own sources, about Rs. 12 crores towards his contribution to the
project cost of Rs. 20 crores. He requested that bankers should support
his silicon project also like they have supported the BAL project. He
further stated that our bank had substantial share in consortium for BAL
project and he expected that we would take lead or take substantial share
in financing the Silicon project.

My chief asked only one clarification from the Chairman of the company,
"What is the estimated demand and capacity established for this product
in India? And who are the competitors in the market?" The Chairman
explained the entire position very calmly and requested us to give it a
thought when they move a proposal for financing the Silicon project.

We returned to the branch. I expressed my opinion as under:
X The combined installed capacity for the product for all players was
much higher than demand.

240 | A Banker down the Rabbit Hole