Donkeys, Buffaloes, and the Law of Common Sense
"Humor is the shortest distance between two people." — Victor Borge
"Common sense and a sense of humor are the same thing, moving at different speeds." — Clive James
In the rigid, high-stakes world of banking, humor is a rarity. Our seminars are often monotonous, filled with dry recitations of civil and criminal liabilities. Yet, in my decades of service, I found that the most effective way to train fellow bankers was to couple important points with a touch of wit. If a lesson is delivered with a laugh, it is rarely forgotten.
The Origin of the "Nominee" Director
I once attended a seminar on "Legal Aspects of Banking" convened by the eminent jurist, Mr. Pardiwala. He was discussing the immunity and liabilities of a Board of Directors, and he shared a story that has stayed with me ever since.
He spoke of a King who was traveling to a neighboring kingdom, dressed in his finest regalia. Along the way, he met a humble villager with two donkeys. The villager cautioned, "Your Majesty, you look magnificent, but you have no protection against the rain that is surely coming." The King laughed, noting that his council of ministers—the "experts"—had predicted clear skies. Ten minutes later, a heavy downpour washed away the King’s makeup and ruined his finery. Enraged with his council of ministers, the King summoned the villager and declared, "You predicted the rain when my ministers could not. From tomorrow, you shall join my council!"
The villager replied, "Your Majesty, I did not predict it. My donkeys did. Whenever they smell impending rain, they spread their ears in a particular way." The King didn't hesitate: "Then from tomorrow, your two donkeys shall be in my Council of Ministers!" Mr. Pardiwala concluded with a wink: "And that is the origin of donkeys occupying Director posts in many nominee-directed companies."
It was a sharp, humorous critique of how boards are sometimes populated, and it taught us more about corporate governance than any textbook ever could..
The Buffalo Deposit
Humor also highlights the disconnect between the urban banker and the rural client. I often shared the story of a villager who was a model borrower—always prompt and grateful for the bank's help. When he finally earned enough to no longer need a loan, the Manager, eager for business, asked him to deposit his surplus funds.
The villager was surprised but agreed. "I have no problem depositing my money, sir," he said. "But tell me... for the money I deposit, how many buffaloes will the bank give me as security?"
It is a lighthearted jab at our industry's obsession with collateral. We are so accustomed to asking for security from the poor that we forget the client might expect the same from us!
The "Customer is Always Right" Doctrine
Finally, there is the danger of following management jargon too blindly. I once knew a Manager who constantly lectured his staff: "Never argue with a customer. The customer is always right. Just keep quiet and follow this rule."
One afternoon, a terrible ruckus broke out in the lobby, followed by a sudden, eerie silence. The Manager walked out to find his staff looking sheepish. "Did I not tell you never to quarrel?" he scolded. "What was the customer's unreasonable demand?"
The head clerk sighed. "Sir, he didn't demand anything. He simply stated, with great conviction, that our Manager is a damn fool. Since you told us the customer is always right, we felt it was inappropriate to argue!"
The Golden Granules of Wisdom
Sri Pardiwala’s influence served me well years later during an economic conference convened by our bank at the behest of the Indian Banks Association (IBA). The room was packed with RBI officials and financial leaders. I was in the corridor ushering guests when someone suddenly approached me: "The Chairman would like you to deliver the Welcome Address Right now."
Speechless and nervous and totally taken by surprise by this last minute request, I recalled a parable Sri Pardiwala had once shared which I narrated to the audience. It was about two Arabs traveling through a desert on camelback. A voice from the sky commanded them to pick up as much sand as they could carry, warning them: "When you reach home, you will be both delighted and terribly sad."
Upon reaching home, the travelers found the sand had turned into gold. They were delighted by their wealth but terribly sad they hadn't filled more bags when they had the chance.
I concluded my address by telling the assembly: "Today, our speakers will deliver golden thoughts. I urge you not to repeat the mistake of the travelers. Pick up as much as you can, so you do not return home with the sadness of missed opportunities."
These stories teach us that banking is a human comedy as much as a financial service. As a leader, we must be able to laugh at the absurdities of the boardroom and the misunderstandings of the lobby.
Humor allows us to stay grounded and prepare us for the "Sudden Summons" of leadership. The most valuable currency in banking is not the rupee, but the "golden granules" of knowledge we collect from one another along the way.