M.B.N. Rao, Chairman and Managing Director of Indian Bank

M B N Rao assumed charge as the chairman and managing director of Indian Bank in December 2003. During his tenure as general manager in Indian Bank, he headed almost all the major areas of operations and his knowledge of the bank greatly facilitated the effective implementation of the restructuring plan and the consequent turnaround of the bank. He was a member of the working group set up by government of India in 1999 to suggest an operational plan in formation of asset reconstruction companies (ARCs) and he played a major role in preparation of the report of the group. He was also a member of the high-level committee on ARCs formed by the Union government in November 2001. He is, at present, also a member in the apex level negotiating committee on wage revision for officers and workmen employees.

Excerpt from the interview:

Prasad: What do you think defines your role and the success of the bank?

MBN Rao: The chemistry between people, the liking for each other is very much required. People do not like authority; it’s a negative hygiene factor as opposed to bringing practical results.

Wherever I go, I try to mingle and meet them. I make the first attempt and address the staff. As a chairman, I do not restrict myself to meeting only the senior people. I meet people at all levels and I try to make it a participative session. I draw them into replying to me and never do a monologue.

Everyone has a need to be loved. Everybody feels they have put in their best regardless of the actual outcome and feels the need to be recognized. It is like yeast to bread. Unless you recognize people for what they have done, they don’t feel good. So though they know they haven’t reached the goals, they still want that little recognition. When there is a bit of recognition and when it is public, they like it a lot. I call all the staff, not just the manager and they come and get recognized. And they feel “yes we have done it”. So an euphoria is built. So every employee feels I have not come here to listen to MBN Rao, but I have come to participate.

According to our banking requirements, our business needs to be generated by only the manager level, or executive level. People who are clerks or those who we call sub-staff are not supposed to generate business at all. But I ask them why they do not need to do that. I ask them in why can’t they do it. What is business generation after all? I tell them, “Just go to anyone you know and just tell them about Canara Bank and what are its good points just to the level you know them. Not necessary to get to the fine points.” They say, “Oh we are small people and don’t know all that.” And then I tell them: You make decisions such as which school to put your child in, where to buy a house, what price to give for a shirt or saree, you know the commercial value and you know how to negotiate. So all of you can join, and meet a community. So from the peon to the general manager everyone can wear an apron and go to communities.

Believe it or not, all the staff works enthusiastically because they feel that they are contributing and enjoy doing it. I try to bring in that element of joy. If you have the right chemistry, it automatically becomes marketing.

Everyone tries to see himself or herself in the situation you put him or her in. Life is like a group photo, where each one tries to look for his or her own picture first. If he feels like he is projected well, he is happy doing his work and being part of that group. But if he is given work and never shown in the picture, he wouldn’t like to do the work. Anytime you tell the employee that he has to work but will not be recognized, he is not motivated to work. So recognition is essential.