Promotion, Peril, and the Kite-Flying Crisis
"Trust, but verify." — Ronald Reagan
I felt I was on top of the world. Having been promoted to the General Manager cadre and transferred to the Head Office in Chennai, my family and I were in the final stages of winding up our life in Bombay. Our household goods were packed in crates; even our Labrador was booked for the long train journey south. We were prepared to spend our final forty-eight hours celebrating a career milestone.
But in the world of banking, the "last day" is often a myth.
The Blow from Baroda
At 6:00 PM on my final evening, a message arrived that felt like a hammer blow. Two branches under my control in the Gujarat zone were caught in a massive "Kite-Flying" operation involving over five crore rupees. This was a sophisticated fraud where perpetrators exploited the clearing time between branches to create "phantom" balances, rotating checks to draw real money out of illusory funds.
The CMD called me directly. "N.R.N., please handle this. Cancel your journey to Chennai. I must hear from you that the bank’s position is secured."
I stood at a crossroads: my home was in crates and my future was waiting in another city—yet the bank was in trouble. I took my car and my two senior colleagues and began the long night drive to Baroda. A critical decision had to be made before the clearing house opened at 10:00 AM the next day.
The Five-Point Tactical Strike
I formed a team consisting of senior officials along with my colleagues Sri P.C Rangarajan and Sri R. Krishnan. Both of them provided me with physical and moral strength and courage. We arrived to find a grim situation. Over five crores had been drained into clean overdrafts. We worked through the night, laying out a strategy to move from defense to recovery:
Internal Reckoning: I met the branch managers involved. I realized they weren't malicious; they were victims of their own inexperience, caught in a game they didn't fully grasp.
Systemic Intervention: I met the President of the Clearing House to deliver difficult news: we were going to return the bulk of the cheques received that day. This was essential to stop the "Kite-Flying" rotation immediately.
Mobilizing the Experts: We summoned our Senior Legal Advisor to vet titles on the spot and a Technical Civil Engineer to value properties in real-time.
Law Enforcement Liaison: We briefed high-level police officers on the sophisticated nature of the offense, explaining the risk of financial contagion in the local banking ecosystem.
Direct Confrontation: We went straight to the perpetrators' homes. This was a psychological battle to move them from defiance to cooperation.
The Strategic Recovery
As we moved, the perpetrators realized the gravity of their situation. The atmosphere at their residence was thick with fear. In a moment I will never forget, one of the ladies was so terrified that she offered her Mangalsutra, tearfully pleading for us not to take severe action.
I refused the jewelry, of course, but I did not bend on the bank's security. We persuaded them to open their lockers, even after office hours. By the time the sun rose, we had secured the title deeds to two properties valued at six to seven crore rupees—more than enough to cover the bank's entire exposure.
Shadows and Threats
While the recovery was falling into place, a more sinister drama unfolded. We were being tracked. Two cars filled with strangers followed us everywhere. Then came the threatening calls: "If you do not drop the matter, you will never leave Gujarat." They hinted at "fatal accidents" on the road back to Bombay.
Despite the tension, we did not flinch. We were supported by the Bank's Staff Union and Officers Association. They realized that without this recovery, the junior branch managers who had fallen into the trap would face devastating disciplinary action. Protecting the bank also meant protecting our people.
By the time I returned to Bombay, the "Sword of Damocles" hanging over the branch had been removed. The CMD personally called to express his relief, and for the first time, the weight of the promotion felt truly earned and I headed back to Chennai peacefully.