The Incredible Banker Read online

  And now, the entire government vigilance team would be after them. Everyone would get to know that someone had tried to hack the passport office website. The government would become extremely cautious. It would be almost impossible to make another similar attempt in the short run. Charu would be very upset. Comrade would also not like it at all. Damn! Ten more minutes was all it needed. But now they were back to square one. They had to think of some other plan. And he closed his eyes.

  Next morning, when the lady of the house woke up, he was still there.

  'What happened? I thought you were leaving at six?' she asked him.

  'I spoke with the comrade late last night. He asked me to stay back in Mumbai for a week and await further instructions. They do not need me back in Midnapore. So I am here. Don't worry. I was only waiting for you to wake up. I am leaving now. There is a hostel in the suburbs, which is part sponsored by comrade and our unit. I have been asked to stay there. Didn't want to go there last night.'

  'Ok. I will be in touch,' the lady told him.

  He then picked up his luggage and walked out of her house. The last she saw of him was when he dumped his bag in the boot of a rickety black-and-yellow cab and got into the back seat.

  February 2008

  The Next Day Morning

  South Block, New Delhi

  PARTHA Thakurta stormed unapologetically into the video conferencing room in the CBI office in South Mumbai. He was accompanied by two of his officers. They were about five minutes late. The home secretary Nicholas Pereira was staring down at him from the video screen, which connected the Mumbai office of CBI to the high profile VC Suite in South Block, New Delhi. It was at his behest that the VC room in South Block was made available to all of them for an hour. They had already lost five minutes. Pereira and his high powered delegation was getting quite restless staring at a blank TV screen in the conference room. The meeting chaired by Pereira was also attended by the secretary in the information technology ministry, the CBI chief and a few other people of the rank of cabinet secretaries.

  All of them had been pulled out of their beds early and called upon to attend this emergency meeting. That was partly the reason why all of them were grumpy that Partha Thakurta, the lowest in the official hierarchy, was joining them late. Ideally, Partha should have been the first one to come in and wait for Pereira and the others.

  "Sorry, gentlemen. The Mumbai traffic was at its eccentric best today,' announced Thakurta as he settled in the chair.

  'Gentlemen, can you please let us know all the information that we have? The minister has a press briefing in the next forty-five minutes. He is expecting a download from all of us.' Pereira was trying to gather information for his boss.

  "Thakurta, what do we know?' It was the CBI chief.

  'Sir, I am afraid, nothing.'

  'What?' There was a stunned silence at the other end. More so because of the tone and manner of what Thakurta said.

  'Yes, sir, absolutely nothing. I am afraid to say that this has been one of the most stealthily carried out attacks. We have never seen anything like this before. We have analyzed most of the data that we have. The IP address from where the breach was attempted is untraceable. A complex maze of routers and entanglers was used which makes it almost impossible for us to detect the point of origin. Even if we are successful it will take us ages to get to the core of it. We have no idea about the modus operandi, the technology used, or the people behind this attack.'

  'But the minister has to say something to the press. They will be waiting.'

  'What has been told to the press, sir?' Thakurta asked.

  'As of now, nothing.'

  'Do they know of this breach?'

  'No. I don't think they have been told yet.' Pereira looked at the CBI chief who nodded in acceptance.

  'Sir, I would recommend that we do not share anything with the press. Else we will be shamed if the world knows that someone nearly broke into our passport office datacentre and almost stole sensitive citizen information from the Government of India. It would be a matter of even greater shame if we were to go and tell them that we do not know who it was, or how it was done. I would request that we do not speak to the press at all.'

  'What are you saying, Thakurta? Do you mean we brush this under the carpet?' Nicholas was appalled at this suggestion.

  'I guess to protect our credibility we don't have a choice, sir.'

  'If anyone were to find out, we could be lynched,' the CBI chief, too, stepped into the conversation.

  'I understand, sir. But if people do find out and we have nothing to tell them, we will be condemned anyway.'

  'So?'

  'Don't tell the press anything. Put it on hold for some time till we unearth something. We will be at least able to save our face. In any case nothing was stolen. A data theft was just attempted.' Thakurta was very clear in his mind.

  The discussion carried on for a few more minutes. Thakurta was very firm and convincing. He had a point. It would have been extremely shameful for a country of the size of India to tell the world that a breach had been attempted on a high security passport office website and that they had no clue if it was the LTTE, the Al-Qaeda or just a plain miscreant. Finally, the Delhi contingent of bureaucrats looked at each other and at the CBI chief. They all nodded. The ministers had to be told.

  The entire issue was brushed under the carpet. It was easy to do so because fewer people knew about it and thankfully it got contained before the press could get a wind of it. However, one thing was agreed upon which was logical, too: the investigations would continue discreedy and the guilty would be punished. Thakurta was put in charge of the investigation.

  It was in this chaos that Kishore checked into a room in a chawl adjoining the railway track in Chembur. A fifteen-foot high wall separated the chawl from the railway track. Standing outside his room, he could see a few small boys playing cricket beside the track. He stood there for an hour watching the game. It reminded him of his youthful days in his village when he nearly played for his state. His father's death in a police firing changed his life completely. He had to give up studies to provide for his family. Charu had resurrected him and his family had really prospered after Charu came into their lives.

  Kishore's younger brother was now attending a school in his village. When his father had died, Kishore had no clue where life would take him and his family but Charu had helped him secure admission for his younger brother and paid his fees. Even his sister had been married off to an educated and well-paid boy based in the nearest city. Charu had yet again lent his support in fixing it up. He had even paid him twenty thousand rupees for the wedding. It was a grand affair and Charu had taken care of the invitees as if it was his own daughter's wedding. His mother had wept and fallen at Charu's feet that night. She was so grateful that he had helped her settle two of her three children. No one else could have done what Charu had done for them.

  Kishore owed everything he had to Charu. So indebted he was that he would blindly do anything that Charu would ask him to. About six years back, Charu had even got him admitted into a technical institute run clandestinely, which trained him in computers, softwares, hacking and communications. He had learnt the tricks of the trade extremely fast and was one of the smartest students in that institute. Charu had handpicked him and assigned him the job of breaking into the passport office, showing tremendous faith in him, probably even more than the faith he himself had in Charu.

  But now he had failed. The faith that Charu had placed in him lay shattered. How was he going to face Charu now? This was the first major project assigned to him and...and that, too, when he was so close. If only the cops had not come and pulled out the fuse, he would have done Charu proud. He was filled with remorse at having let his mentor down. There was no other choice. He now had to sit back and await the next set of instructions.

  17 December 2009

  RBI Headquarters

  Mumbai

  RONALD was shocked when he read the let
ter the RBI governor handed him. Never before had he seen such a letter from the RBI. He had worked across various countries with GB2 but the tone and contents of this letter were extremely serious and provoking.

  Date: 17 December 2009

  From

  Governor,

  Reserve Bank of India,

  Mumbai

  To

  Shri Ronald McCain

  Chief Executive Officer,

  Greater Boston Global Bank 26,

  Kalaghoda Mumbai

  Dear Mr McCain,

  This is further to our earlier letter dated 24 March 2007 wherein we had highlighted certain serious irregularities in the manner in which Greater Boston Global Bank carries out its business in this country.

  It has been brought to the undersigned's notice and as has been reported by the leading media of the country, there has been a severe compromise of processes and overlooking of regulatory norms in your bank. RBI guidelines on various subjects have been flaunted. Regulatory norms have not been respected, indiscriminate lending has been the order of the day, customer complaints have been on the rise and, to cap it all, the recent audit reports have been the worst in a long, long time. We have till date ignored most of these, assuming them to be the cost of doing business in a large and complex nation like India.

  However, in the case reported by the press over the lastfew days, Greater Boston Global Bank can be severely held responsible for waging a war against the nation. Your bank is today being accused of colluding with the lawbreakers and conspiring with them to question the existence of the democratically elected government in India.

  Mr CEO, I would like you to investigate the issues that have been raised in the media and give us a satisfactory response within two weeks (see Annexure 1).

  In the absence of a satisfactory response, the RBI will take stringent steps that can also include withdrawal of license to conduct banking activities in the country.

  I expect to get your response within two weeks from today, and hence this may be given adequate priority.

  with regards

  Governor Reserve Bank of India

  Ronald was so lost absorbing the contents of the letter that he did not realise the governor was waiting for his reaction. When none was forthcoming, the governor took the lead.

  "Thanks, Mr McCain, for coming at a short notice. You see, this couldn't wait. We had to move fast. The whole country is watching. We can't be seen as quietly allowing someone to come and screw our system.' If the letter didn't convey the message, the crass language and aggressive tone of the governor to the CEO of a large international bank surely did shock McCain. However, he didn't say much. What could he have? The governor and the entire polity of the country seemed to be up against them. Hadn't they screwed up, and that too big time!!

  'I will get back to you,' was all he could muster as he got up to return to the bank.

  'I will ask Vardarajan to fix a meeting where we will review the bank's response and decide further action. The meeting will be in or around the first week of January at a time convenient to you, Mr CEO,' and he walked towards his room while McCain dragged his feet towards the door leading to the corridor on his way out.

  March-June 2008

  Mumbai/Singapore

  GB2 Global Results

  EARLYMarch was result time for most of the banks in the world.

  Bank after bank started coming out with their 2007 yearly results. GB2, too, prepared to declare its results at a Asia-Pacific level. These would then get consolidated across various regions around the globe for their group results.

  Standard Chartered Bank was the first one to declare the results on March 2. GB2 followed suit on 5 March 2008. The grand ballroom of the Raffles hotel in Singapore hosted a glittering ceremony where the Asia-Pacific CEO of GB2, Michael Smith, stood up to announce the results of the group in the region. At the ceremony, media persons from almost all the newspapers and magazines, hordes of analysts and a number of important stakeholders were present. An air of nervousness preceded Michael Smith's walk to the podium. He started his presentation in his usual flamboyant manner.

  'Friends, we have had a fabulous year 2007. The results that we have delivered as a bank, and as a financial services conglomerate, have been brilliant to say the least. We have beaten all expectations. While I will share the details of the financials in a while, I would like to list down a few of our key achievements last year,' he began with confidence. His annual results presentations normally began in this fashion. They would be very self-praising, pompous and 'glorifying-the-bank' presentations. Irrespective of whether the bank had a good year or a bad one, the tone of the presentations would be the same. Only the degree of bravado displayed would vary depending on the profits reported by the bank in that year. Given his flair to speak to the media and to communicate a positive intent, invariably it would be Michael who made the presentation to the media and stakeholders. This had been the case at least for the last three years.

  Michael spoke for about twenty minutes. Many in the audience were reminded of Steve Jobs when Michael spoke. He briefly mentioned the group's foray into new businesses in India and Indonesia, their leadership position in wealth management in Singapore and Hong Kong, their growth in the corporate banking business in developed markets like Australia, Hong Kong, Singapore and also the joint ventures they had formed with local banks in China. It was a fairly impressive presentation. He wrapped it up with the financial update for 2007.

  GB2 had made a profit of $ 2.3 billion in the region as against $ 1.3 billion the year before. On the face of it, all the numbers and the ratios looked very good. GB2 seemed to have built a highly profitable business. The year 2007 seemed to have gone off very well for GB2.

  When he finished his 'rockstar' presentation, all the stakeholders gave him a standing ovation. Hadn't he led the bank admirably and made it one of the hottest emerging market banks in the world? The numbers pleased almost everybody, or so it seemed going by the smiles all around.

  Most of the analysts had predicted a profit of $1.9 billion for the region but Michael Smith's GB2 beat it to record over $400 million better than what the analysts had expected. There was celebration all over.

  'We have thirty minutes for questions,' the moderator announced and the floor was thrown open to the audience.

  Quite a few hands were raised.

  "The gentleman in a pale yellow shirt on the far right,' the moderator pointed a finger towards the reporter and singled him out.

  'Sir,' he began, 'the performance of GB2 in 2007 has been truly admirable. What's your oudook for 2008? Do you think this is a performance you would be able to repeat in the coming years, or is it a flash in the pan?'

  'Interesting question, my friend. This growth in numbers has come as a result of a disciplined effort and cogent strategy backed by excellent execution at the grassroot level. In fact this year we have laid all the building blocks for growth in 2008/9. We don't need any significant investments in technology, infrastructure or new businesses. All that is done. We just need to sit back and reap the benefits.' And after a pause Smith added, 'I am reasonably confident that we will better these results in the next twelve months.'

  'Thank you, sir.' The reporter sat down. The question seemed rigged considering the way the reporter was singled out to ask the question and Michael had probably rehearsed the answer well.

  A few more questions were raised by the audience. All were answered with equal panache and ease. There were questions about strategy, resources, new businesses, possible obstacles to growth. Michael answered all of them brilliantly. He had fixed almost everything. Everything was going as planned.

  The session was nearing the end. 'Next question, please. We have time for two more questions only, gentlemen,' the moderator boomed. Again a few hands were raised. "The gentleman in the third row from front...red tie.'

  The reporter immediately got up.

  'Sir. I represent....' Hardly had he begun speaking when he was c
ut short by a person sitting in the fifth row. He seemed to be an Indian reporter who had travelled all the way to Singapore to cover the AGM.

  "This is absolutely ridiculous. Rubbish!' he screamed. The room fell silent.

  'I have been for the last twenty-five minutes diligently trying to follow the procedure and protocol to ask my question but every time the gentleman on the podium picks out someone who has already been identified. In fact I have seen the moderator nod at the reporter in the crowd at least thirty seconds before the call for next question, and invariably the question is asked by the person at whom the moderator nodded. If this is not nonsense, what is ?'

  Fearing that this might cause collateral damage to the brand GB2, the moderator quickly stepped in. 'I am sorry, sir. There was no such intent. May I request you to go ahead and ask your question to Mr Michael Smith?' And then he looked at the reporter who had just begun his question and apologised, 'My apologies, sir. Will it be fine if you ask your question after this gentleman?' He just nodded and sat down.

  'Honourable CEO,' began the Indian reporter. Indians were still very respectful when it came to dealing with white skin. 'My name is Chaitanya Kumar and I represent the leading financial daily in India. I have a query on your strategy in the emerging markets, particularly with reference to your strategy in India. Why is it that in India, your retail bank continues to make a loss? This year your bank in India made a loss of over $245 million in their retail banking business.The results have been camouflaged by the excellent performance in Singapore and Hong Kong. The losses in your credit cards and personal loans business have just begun to impact you. In 2008 the impact of these losses will be significant.'