The story‘teller’: Brilliant reconteuring from a banking veteran brings alive the history of India’s financial services

Narayanan Vaghul has seen the evolution of India’s financial institutions for longer than many. He became the youngest chairman of a public sector bank at 44 years of age in 1981 and had a 24-year stint at the ICICI corner room. But these alone do not set him apart—the real differentiation is the institutions he has nurtured and built, and the values and principles he instilled in his colleagues who went on to become leaders in their respective fields.

Unlike many famous names who have written their memoirs, Vaghul has chosen to stay away from the limelight after his retirement. That alone makes Reflections a must-read as it gives a peek into the author’s remarkable public life. What is even more refreshing is the format of story-telling—a series of delightful anecdotes about his colleagues, politicians, bureaucrats and clients. Taken together, these provide a slice of history and give insights into the way India’s financial services evolved.

The author doesn’t talk to readers from a pedestal. Rather, he gives the impression of a man who doesn’t mind having a laugh at his own expense; his keen sense of humour is all-pervasive in the book.

Meet Yashovardhan Birla, a scion of the Birla family, a 51-year-old fitness icon and entrepreneur: Know about his tragic past, education, net worth and more

Aditya Birla Group company buys Rs 220 crore bungalow in Mumbai; From Gulita to Lincoln House – Take a look at the most expensive houses in the city

ED searches Byju Raveendran’s house, office; Here’s a look at his Rs 25,000 crore net worth, lifestyle, family, salary & more

From a cotton trading businessman to richest banker in India: Know about Uday Kotak’s journey, education, family, net worth, and more

Also read: Meet Sanjiv Kapoor, former Jet Airways CEO; Know about his life, career, net worth, and more

That is evident from the book’s foreword itself. Vaghul writes he never imagined that his habit of making light-hearted conversation during the course of board meetings and afterwards at lunch would land him in the ‘trouble’ of writing the book. “Even during my days at ICICI—when my colleagues used to flatter me saying they would not want to miss a single lunch that I was present for —I believed that their words were more inspired by my position rather than by the liveliness of my conversation.”

The anecdotes, which are real examples, give a sense of how politicians treated state-owned enterprises as extensions of the government and how they got used to issue orders to the chief executives of these enterprises and getting work done either by persuasion

or threat. The public sector banks were the worst hit because of the pernicious practice of politicians interfering in the sanctioning of loans.

An extreme example of the nexus between politicians and industrialists was the removal of RK Talwar as State Bank of India chairman. When Talwar refused to entertain a cement company’s request for loan on grounds of mismanagement, little did he know that the industrialist concerned was a friend of Sanjay Gandhi. The latter asked the minister of state for finance to make sure that the loan was granted immediately. But Talwar refused. Gandhi ordered Talwar’s sacking, but there was one problem—under the State Bank of India Act, the chairman could not be removed before the expiry of the term of his office unless they were proven guilty of misconduct. Upon being told about the clause in the Act, Gandhi ordered amendment of the Act! The amendments were passed during Emergency and Talwar was finally removed.

The interference of the government is best summed up in this anecdote involving a secretary in the department of banking. Vaghul says he asked the gentleman to explain to him the difference between a ‘request’ and ‘pressure’ from the government. The answer was elaborate. “When I call or write to you to look into certain matters, this can be considered a request. You are free to do what you consider appropriate. If I follow up this request with another phone call or letter, you should understand there is pressure from the government to take action. If I follow up the matter for the third time, it is virtually a directive from the government, which is possible to ignore only at the cost of losing your job.”

Vaghul did have his fair share of such requests and pressure, but stood his ground always even if that meant threatening resignations from his position, which worked almost every time due to the adverse publicity it would have generated.

The best part of the book and which will surely bring a smile on your face is Vaghul’s interactions with the political leadership at the time. The most hilarious (though unfortunate) incident involves the visit of an Estimates Committee of Parliament to Mumbai. As chairman of Bank of India, Vaghul was supposed to be the host of the delegation, led by Bansilal. What followed thereafter is simply unbelievable. Vaghul got directions from the Parliament Secretariat regarding the protocols to be observed. What stood out was that while all MPs were to be put up at the Oberoi hotel, Vaghul was supposed to get a no-vacancy certificate from the local hostel for MLAs, where MPs were usually expected to stay.

The instructions emphasised that Bansilal was accustomed to only using Indian toilets, and that the Oberoi should be instructed to provide one accordingly. Vaghul had to make a special request to the general manager of the hotel to provide an Indian toilet in Bansilal’s suite. This meant that Bank of India had to foot the bill for demolition of the western toilet and install an Indian one.

The absurdity didn’t end there. When Vaghul received the delegation at the airport, Bansilal, surrounded by Congress supporters, asked him, “Where am I staying?” On being told that it’s the Oberoi, he lost his temper and started shouting at the top of his voice as to why public money was being wasted and why wasn’t he put up at the MLA hostel. A confused Vaghul didn’t know how to react. During the drive to the hotel, Bansilal noticed his glum face and asked him not to worry as his outbursts were only for public consumption as he couldn’t afford to lose his image. This one anecdote shows political hypocrisy at its worst.

Also read: From a cotton trading businessman to richest banker in India: Know about Uday Kotak’s journey, education, family, net worth, and more

What is missing in the book are stories of Vaghul’s stewardship of ICICI Bank and the institution he created. His mentees would often say Vaghul taught them to challenge the status quo and to not be daunted by a change in orbit. Some anecdotes regarding that would have made interesting reading. Overall, however, Reflections is a superb stroll down the dark alleys of nostalgia by a raconteur par excellence.

Reflections

Narayanan Vaghul

Piramal Enterprises

Pp 174