The Hindu Business Line : New bank chairmen, thou shall and shalt not...

IN THE next two years, many nationalised banks will have new chairmen. Most of them will be first timers. Newspaper reports indicate that even bank general managers may be considered for the top post, since the government wants them to hold office for five years. It is the desire of every chairman to be in the limelight — hopefully, for the right reasons.

Some tips for you aspirants:

Flavour of the season: You should be aware of the flavour of the season. At the moment, it is "consolidation by way of merger''. So, on the day you take charge, you should declare that you are on the look out for taking over a bank, preferably a smaller one. Never say you are for a merger. Then, some other bank will take over your outfit, and you may lose your job.

A tip: There is no need to have any particular bank in mind. Tell the media that it is too premature to reveal the details. The media will take care of the rest and will duly come out with their own suggestions. Such announcements should be made periodically on the sidelines of seminars than at a press conference. After two/three months, make a declaration that the details are being worked out. You can be sure that in the next few months, the flavour of the season will change and the media will not bother you.

Foreign branches: You should declare, preferably on the day of taking charge, that you want to open branches abroad. The media will love you for such statements. Be vague and say you are eyeing West Asia, Far East and developing African countries. When pressed, say, Malaysia, Dubai, Ghana, and China. It may be true that in certain countries such as Malaysia, you have to invest heavily. The fact that it is not easy to get clearance from the Reserve Bank of India to open a foreign branch should not bother you. The idea is to be in the `news'.

A tip: If you are already heading a bank with foreign branches abroad, you should make a statement that you are planning to take over a bank overseas. You can say ``negotiations are on'' and if nothing happens, you can always put the blame on the RBI.

Tie-up for products: The best way to have your photographs appear in newspapers is to look for commercial products that can be financed by you such as tractors, cars, trucks. Most important is to have a MoU and the manufacturer of the product will take care of the publicity.

Core banking solution: Try to get a big name in the information technology sectorto be associated with you. If the initiative has been already taken, then fix a deadline before which all your branches will be networked. You should always use terms such as ``anytime anywhere banking'', "multiple banking", "Internet banking'', and so on. Jargons can be borrowed from foreign banks.

A tip: Also, announce the setting up of a call centre to add glamour. You can be sure there will be no grievances as the customer will get tired of pressing buttons. If he is still patient and succeeds in talking to a ``marketing executive or a grievance executive'', he or she will transfer the call to at least three persons at the end of which, the customer is bound to give up his chase.

Open ATMs and boutiques: The chairman should always make it a point to open ATMs and other service centres in the name of banking boutiques. When you travel for this purpose, the local correspondent of a national newspaper should be invited and you should grant him an interview. He will ensure that it is published with a photograph. It is a different mater that your man-hours can be more productively used at the head-office.

A tip: Four out of six days in a week, you should be outside your head-office. This has two advantages. One, you will be interacting with the media in different places. You should have four types of press releases on hand and circulate them in turn so as to avoid repetition. The media is always comfortable with written material. Second, complicated matters pending at the head-office may automatically get solved by efflux of time. Your general managers should tell the customers that you are not reachable. Whenever you are in the head-office, ensure that the executive director is on tour. Both of you should be together only for board meetings. Thus, you will have a good relationship with your No. 2. Your subordinates will also be happy to complain about the executive director, when you are in town and vice-versa.

Dividend payment: You should have a good liaison person in New Delhi as your zonal/regional manager. He should arrange for a meeting with the Finance Minister to hand over the dividend cheque. Then your photograph will definitely appear in the papers. If the Finance Minister does not grant an audience, settle for the Finance Secretary or the Banking Secretary. Then at least a four-line news item will appear.

A tip: Wait for floods or famine. Be the first to announce a donation to the Prime Minister's Relief Fund. That will ensure that you have your photograph with the Prime Minister published.

US GAAP: Even if you are only a regional bank, you should declare that you are going to adopt US GAAP. (Before announcing, try and understand its meaning. Otherwise you may confuse yourself with some other gap — such as US trade deficit.) Still, if an intelligent press reporter asks you what you are going to achieve by adopting US GAAP, stall him by saying you are planning an ADR issue some time in the future. Never give a date.

Credit Policy/Budget: You should always come out with an opinion on the Credit Policy/Budget. Needless to say, you should only praise the Policy/Budget. Use some such standard phrases as ``It is a step in the right direction'', or "Good for the growth of the economy.'' You should have a good chief economist in the bank who should prepare an article in your name within half an hour of release of the Budget.

Rumour: Whenever there is a vacancy for the post of Deputy Governor at the Reserve Bank of India, you should request your good friends in the media to circulate the news that you are one of the likely candidates. Whether you get it or not, you will be in the news until the vacancy is filled.

A tip: If you have been only for a few days, it will not be proper to aspire for the Deputy Governor's post. You should, perhaps, propose your name for a big bank, preferably with foreign branches.

Awards: You should become friendly with non-governmental organisations and arrange for them to confer an award on you for your achievements for the cause of, say, small-scale industries or small and medium enterprises or Self-Help Groups.

A tip: Be on the lookout for IMF meetings. Get on the delegation accompanying the Finance Minister. You may not understand the proceedings going on but you will be assured of publicity, good lunches and dinners.

Dress code: You should always be suited and booted even if it is peak summer in Delhi.

Never say no: Never say no to anyone in power. Whenever you want to reject something, put the blame on some committee.

A tip: To avoid post-retirement problems, never sanction anything in your power. Push it to the board or to your executive director. But you will have a problem if your executive director also follows the same policy. Then, both of you should reach an agreement to have a committee of general managers with wide powers.

Foreign consultants: Appointing foreign consultants always makes good news. Do it at the earliest. There is no glamour in appointing an Indian consultant. Appointment of such consultants has great advertisement value. Do not worry about implementing their suggestions. They will take a year to submit the reports. Then, you should appoint various committees to study and implement them. That will take another year. By that time, your term will come to an end.

A tip: Do not worry about what should be referred to the consultants. There are so many jargons available such as Vision 2010, business restructuring, and so on. In case your predecessor has already done this, give a gap of a couple of years and say a fresh review is needed in the new environment and the various banking developments that are taking place.

Predecessor: A gentleman's agreement in the chairmen's club is that one should never praise the predecessor either immediately after taking charge or during your tenure. In fact, you should behave as if your predecessor never existed. The moment you take charge — even before understanding anything about the bank — you should say to which height you propose to take the bank.

A tip: When you address the staff for the first time, you should make a statement that the bank is not in good condition and that your aim is to turn it around. (The staff are used to such statements by every chairman.) Also, just 15 days before your term is over, unfold the future plans for the bank for the next five years to show your concern.

(The author is a former General Manager, Bank of India.)

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