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A
key-hole view of dark deals
‘Mottai’
is egg in South Indian languages. In banking parlance across the
country, however, it is code for those mischievous unsigned letters.
Those cut-sheet bits that fly around and about in bank offices.
Written in crisp language, they come with titillating tit-bits.
Taking inside out. A keyhole view of extracurricular transactions.
And it is the only gene left there to spook the cocker gangs
cocooned in our banks.
E-mail and fax machines now make ‘mottais’ popular with a
growing readership. Unthinkable fifteen or twenty years ago when
their circulation was limited. As they all had to be clumsily typed
with carbon papers or cyclostyled. As a rule they carried a touch of
hilarity and punned words. Chinks in the armour of the sealed book
we call the banks.
Time was when it was all not that opaque. A couple of years before
banks nationalisation and social control of bank. The annual general
meeting of the ‘Bank of India’ was on. BOI then was synonym for
efficient banking practices. With concentrated accounts, it allowed
no freewheeling.
The highly regarded A.D.Shroff was in the chair. Fresh hands in
financial journalism craved to attend (and cover) BOI annual
meetings. Mainly because they could see (and hear) one who saw Lord
Keynes at close quarters. Though dead by then, Keynes remained the
high priest of modern economics. And it was a thrill to be near
someone who was lucky enough not only to meet, but had discussions,
with the great economist. The late Shorff was the member of Indian
delegation that extracted from a reluctant Keynes a firm (and
favourable) commitment on the country’s sterling balances.
(It was so understood then. Writing in The Hindu Business Line,
Prof. P.R.Brahmananda revealed that it was Prof. J.M.Mead who worked
behind the scenes for a decision favourable to India on sterling
balances. Keynes had no sympathy. Not long after, the UK government
devalued sterling by 30% and got out of their firm commitments.)
At the BOI, share-holders were not however, overawed by the
chairman’s personality and aura. Shorff had difficulty explaining
to the surly share-holders a loan the bank had extended to a Nagpur
based company. By design or accident, the company promoters had
surnames common with two high court judges who were on the bench
handling a sensational case. A link could not be established. Even
so, the redoubtable Shroff could be seen writhing under the
whiplashes of questioning by a couple of pro-active share-holders
who came prepared.
Mark, in the pre-nationalisation days the banks were run by General
Managers. Assisting them were only their accountants. On the whole,
they were not visible. Bank chairmen never spoke in public for their
banks. Their role was confined to the board meetings and of course
the annual shinding of the share holders. There were no Managing
Directors. Only SBI had a different set up.
Nationalisation spawned the new breed going with the name of
chairman and managing director (CMD). The two roles rolled into one
in the name of promoting efficiency and quick decisions. Leaving no
room for the incumbents to shirk responsibility. Naturally, they
emerged all powerful. Obsequious only to whom they owed the post.
The CMDs are really in an enviable position. Rear and flank are well
protected. By the power to frame the confidential reports and issue
show cause notices. That alone is enough to scare the wits out of
anyone in the hierarchy.
Even in the lower rungs, the incumbents are well protected. The
structure and organisation of the banking hierarchy being what it
is. Irrugularities and fault-lines never come to the public view for
years. By then culprits escape being transferred promoted or
retired.
It is in this scenario the ‘mottai’s come relevant and useful.
To be sure, they are not over-ambitious or designed to make or
unmake people. No earth quakes expected. The minimum game plan is to
embarrass the target figures for a while. And there they succeed.
Then again business as usual.
It is at the time of promotions that ‘mottai’s proliferate. Each
‘mottai’ becomes a dossier on the potential candidate. Being
well researched, they often are more informative than the
confidential reports compiled and kept by banks. What is more
remarkable is that nothing escapes their hidden radar. A kind of
in-house “Tehelka”.
The harmless ‘mottais’ can be effective too at times. It
happened in a Chennai based bank. Early on, the bank discovered the
fecundity of retail loans. With no credit demand coming in large
measure it was a godsend. Everyone ‘sincerely tried’ to make
those loans successful.
A few did better than others. Among them was a DGM. His skills drew
top admiration. Conceding that he needed a bigger play-field, he was
ordered to take charge of a fertile zone, now called circle. At that
point of time, the poltergeists behind ‘mottai’ stepped on the
gas. First the top management ignored the bits. Then they returned
with hard evidence dredged up. The clinking charge was that he
pocketed a sum of Rs.3000 - 5000 on each of 55 two wheelers
financed. Circumstantial though the evidence was, the top brass
panicked and the order was convertible rescinded. The threat of
mutual-exposure normally keeps the flock together.
The banking industry in India attracts excellent talents who would
have easily thrived in the other walks of life. So no one would be
surprised by the exhilarating way the points are driven home, by the
‘mottai’s. The phrases coined make excellent reading. The
ill-concealed chutzpah of a high-profile CMD is put down to
“mad-cow disease”.
Mostly ‘mottai’s focus on the high priests. Only occasionally,
the GMs and RMs are caught in the net. Lesser mortals are spared.
At times the ‘mottai’s land on the editors’ desks too. But
they are often ignored being not worthwhile for a thorough follow
up. The short-supply of man power also comes in the way. For all
that, it is a fact that they provide definite clues to the way the
public sector banks in the country are run. So, long live the ‘mottais’. |
