Political Pressure and the Myth of "Soft" Loans
"Integrity gives you freedom, because you have nothing to fear and nothing to hide." — Zig Ziglar
As General Manager in charge of Credit and Personnel, my days were a blur of high-stakes decision-making. Despite the seniority of the role, I maintained an "open-door" policy, believing that a leader must be accessible to those on the front lines. It was this policy that triggered a call from a Regional Office regarding a situation that would become one of the most harrowing trials of my career.
The Defiant Disbursement
An officer reported that a branch in Chennai was preparing to disperse a massive series of loans—totaling nearly ₹7 crores—to a group of individuals who had only recently opened accounts. An immediate inquiry revealed a shocking reality: the "security" for these crores consisted of sealed steel drums supposedly containing chemicals, lying in an open yard. They were essentially worthless.
I rushed to the CMD, who instructed me to issue a formal letter restraining the disbursement. I felt a sense of relief—I had clear guidance. However, the next morning, I learned that despite these written orders, the branch had dispersed ₹3 crores anyway. In a moment of intense professional frustration, I summoned the manager and warned him that any further release would result in immediate suspension.
The manager was suspended, but a mystery remained: How could a senior officer be so brazenly defiant? Who was behind this group that commanded such reckless loyalty?
The Ministry and the Lorries
The answer came from the suspended manager himself. "Sir, you are playing with fire," he warned me. "The group has connections at the highest levels of government."
Soon, the pressure became official. The CMD received a letter from the Ministry of Finance that was shocking in its directness. It mentioned me by name, stating that "a certain GM" was standing between the bank and these loans, and urged the CMD to "persuade" me to release the funds. The CMD marked the letter to me for "necessary action" without further comment, leaving the burden of the decision squarely on my shoulders.
Then, the threats turned personal. I was told that my "obstruction" would be reflected in my upcoming promotion results. Then came the chilling, "movie-style" warning: "We know your route to work. We know you pass the Adyar Park Hotel and turn onto Mount Road. You should know that on that route, many heavy lorries are plying." The message was clear: an "accidental" collision could be arranged for a GM who refused to look the other way. To my relief, the threats stopped after sometime and nothing untoward happened.
A Surge of Humility
The ₹3 crores remained overdue for years, eventually becoming a candidate for a One-Time Settlement. To spare the manager a shameful dismissal, the bank allowed him to resign quietly, preserving his face and his pension. It was a compromise that reflected the complex reality of "Boss Pressure."
Years later, at a colleague’s wedding, I felt a hand on my shoulder. It was that very manager. I expected him to avoid me, given that I had suspended him and nearly ended his career.
"Sir, why are you avoiding me?" he asked with a smile.
"I thought you would be angry with me," I admitted.
"Sir, I am not angry at all," he replied. "If I were in your position, I would have done exactly the same thing."
I was relieved to hear that and thankfully, he did not say “If you were in my position, you would have done exactly the same thing”!
I was deeply moved. He acknowledged that I had a duty to the bank, even if he had felt he had no choice but to succumb to the pressure he was under.
This also exposes the stark reality of political interference in the financial sector. The "Boss Pressure" can originate from far beyond the bank’s walls, backed by the weight of a Ministry or the threat of a busy road.
While a manager may be pressured to "buy into" a fraud, a leader’s duty is to stand as the final barrier.