The Hindu Business Line : Of challenges, pressures faced by bankers

Stones and Flowers - A Banker Looks Back, by Sitarama Murty, former Managing Director, State Bank of Mysore, is a compilation of various experiences that he had in the course of a 37-year career as a banker.

Mr Murty might have become a professor, nuclear scientist or a pilot. All these job openings were available to him, but it was banking that drew him.

He soon embarked on what he says was a career that "every day brought in new experiences and challenges, and there never was a dull moment".

This is an interesting book with a number of anecdotes that highlight the issues that bankers grapple with, especially in rural areas and the pressures they face in the discharge of their duties. Whether it is the issue of opening a branch or granting loans or collecting loan dues, there is the ever-present political pressure that a "development banker" must be prepared for.

Mr Murty faced a number of such pressures, and going by his account, he appears to have succeeded in handling them without succumbing.

Branch managers who faced the challenge of handling unionised staff would empathise with a number of situations that this book deals with — enforcing timings, punctuality, work ethics, resisting pressure from various constituents, sticking to rules, dealing with frauds, introducing new technology etc.

At the same time, Mr Murty provides instances where a paternalistic approach — a mixture of firmness, tact and patience was required, while dealing with subordinates. Sometimes, a certain amount of naughtiness too was required to drive home a point — as in the case of dealing with a security guard who routinely slept on duty despite warnings. One day, Mr Murty, finding the watchman asleep, quietly took away the gun that was kept by his side. Waking up some time later and finding the gun missing, the contrite watchman spent some anxious hours, before the suspense was broken. Although disciplinary action could have been taken, Mr Murty held his hand, emphasising that he was not interested in punishing but correcting the deviant behaviour of the subordinate staff.

There is humour too. In one anecdote, Mr Murty, refers to the legal jargon of some officers, and how the use of certain phrases such as "however" and "appear to be" would be sprinkled everywhere in sanction papers to provide an escape route. For better appreciation he provides a typical para:

"The bank has to commit Rs 10 crore for the project. However, only after a review after three months that satisfactory progress has been achieved, this can be confirmed. It appears that the State Government has approached the World Bank for a loan, who reportedly are examining the request. However, their decision, which is likely to be positive, appears to be dependent on fulfilling several conditions. However, our decision is not linked to the outcome, as there appears to be not much choice in participating in this project. However, the State Government appears to be approaching some other banks also and our participation would ultimately depend on their response. However, as the project appears to be technically feasible and economically viable, we may have to participate, though at this stage we may convey only our approval in principle subject to... "

The then Managing Director of State Bank of Hyderabad, Mr P.V. Vaidya, (a man apparently with knowledge of bureaucratic filibustering and a sense of humour) after patiently wading through one such puzzle of a note, running into three pages, wrote his endorsement, "I appear to agree, however, subject to our usual precautions."

This is a book that bankers, academics and the financial media will find interesting and insightful.