Page 30 - A Banker Down the Rabbit Hole

3. Traits of a Banker in the eighties

A Strict Banker - Retained one set of ignition key of
financed vehicle

I had been placed on probation for a year at this branch. The Branch Head
called me one day and explained the entire procedure for appraisal of a
Transport loan. He handed me the loan application of the borrower, his
credit report prepared by the Chief Cashier after field visit and asked me
to fill up the Bank's Appraisal format. The main issue was to work out
the financial viability of the operation after realistically estimating the
revenue and considering all expenses to arrive at a positive figure of
substantial surplus to service the loan plus borrower's monthly
sustenance expenses.

After the documentation, he disbursed the loan by way of a Demand
Draft (DD) in favour of a Dealer in Delhi as requested by the borrower.
He then prepared a forwarding letter and attached the Demand Draft.
He deputed another officer to accompany the borrower to the dealer to
deliver the DD against delivery of the chassis of the Ashok Leyland Truck
as per invoice. He specifically directed the officer to ensure that a receipt
for the demand draft is issued by the dealer and a painted metal plate
bearing notation "Financed by XYZ Bank" had been fixed behind the truck
in his presence there and then. He also directed him to get one set of
duplicate ignition keys of the vehicle from the borrower and deposit with
Head Cashier of the branch so that in case of protracted unjustified
default, the bank would be able to take possession of vehicle to sell it
for adjusting the loan.

So strict were the bankers in the eighties. Accordingly, the bad loans were

A Banker down the Rabbit Hole | 27