8. Private Sector jobs and Entrepreneurship: 

8.1 I met my friend Mr PKR (elder to me by 8 years and married with two children) in February 1981 at SBI ADB Jangaon, Warangal Dt., where both of us were posted as Field Officers.  I reported from SBI, Machilipatnam, Krishna Dt after completing my assignment as Accountant successfully.  I wanted to be in a Hyderabad City branch, but the Regional Office could accommodate me only in Jangaon, which is within their administrative control.  

8.1.1 The place is about 85 KMs away from City and is well connected by road and rail.  My friend came from Secunderabad, with some understanding that like many other staff in the district, it is easy to commute to City every day.  We shared the accommodation and were not very happy with the state of affairs at the branch or in the town. We parted ways after about a year but continued friendship for next few years, even after I moved to Mumbai in 1984 and he quit the Bank's service on VRS in 1988.  

8.2 Mr Reddy started a Private Limited Company/ 100% EOU for Granite processing and exports to Japan, Singapore, Australia and USA, by investing his own and family resources.  It was a family business concern and was doing well.  For all his overseas travels on business, he used to go via Mumbai and visit / stay with me.  He availed loans from SBI in Hyderabad and was to expand by opening a Partnership firm. Two of his brothers-in-law and young son were actively handling the production related work. They also owned a furniture making business handled by one brother-in-law. 

8.2.1 I was invited to join the business to handling mainly Day to Day administration and was designated as Vice President (instead of as Director, as discussed earlier).  Very soon I realised that things were not so rosy as was projected.  There seem to be no expansion plans like going Public or diversifying into other business areas gradually.  I started looking for outside opportunities as I did not see the need for my continuing in their business anymore. 

8.3 As an interim measure, my elder brother CNR asked me to invest in a large agricultural land in Bommala Ramaram village towards Bongir.  The adjoining land belonged to him with an existing garden and irrigation facility.  A watchman and family were engaged and located in the site.  I didn't take up any agricultural activity but sold the property after a few years while I was in Manipal.  Another investment I made was to join hands with my ex-SBI Senior colleagues viz., SV Chetty, BRK Murthy, T Venkateswarlu and T Appa Rao, who started Twin Cities Permanent Fund, a Nidhi Company in SBI Staff Colony, New Bakaram, Hyderabad very close to my Ashok Nagar flat in 1994.  The group also opened an NBFC and a Chit Company in the vicinity.  

8.3.1 Later, TA Rao and others also requested me to associate / invest in another Nidhi Company called PDPF in Ongole (Prakasam Dist), his native place.  All these investments were made as Share Capital in the name of Ganga, my wife whose savings from Mumbai job were used.  In due course, all these have gone dry for various reasons.  I quit my friend's granite business in January 1996 to join Leafin Financial Services, Hyderabad an NBFC Company as its Vice President at Hyderabad being taken over by my Mumbai friend Mr Surendra Kumar Hegde but quit the same in April 1996 to proceed to Bangalore for another better assignment. 

8.4 In response to an advertisement by The Vysya Bank Ltd inviting applications for President of their Housing Finance subsidiary in Bangalore, I sent my application.  Leasing Finance and Housing Finance subsidiaries were the brainchildren of Sri Ramesh Gelli, the then Chairman of Vysya Bank.  When I attended the personal interview by the Board in March 1996, they offered me to take up as Vice President of their Leasing subsidiary in Bangalore, which I did in April 1996. Sri Sadashiva Gupta (of SBI) was the Chairman and Sri G Mallikarjuna Rao (GMR) was Board Member.  VBLL was headed by Mr SV Ramana, a CA as President, who is also a DGM in the Bank.  Bangalore / Bengaluru (Karnataka State)

8.4.1 Within a few months' time, Sri K Rama Murthy of Corporation Bank took over as Chairman of Vysya Bank Ltd., after Gupta went back to SBI.  NBFCs in general, were passing through tough challenges in carrying out their non-banking business due to unfavourable economic environment.  Banking industry already experienced tough times during 1992 Stock Market Scam coupled with introduction of Financial Sector Reforms by GOI in 1993.  More than doing the normal business, I was handling inspection of leased assets, recovery and legal proceedings against several defaulter customers located all over India.  Lot of travelling across the country was involved. 

8.5 Leasing business in general, they say is like riding a Tiger.  No doubt, it is lucrative both to the Lessor (lender) and Lessee (borrower) in quick asset creation, business expansion, availing of Income Tax benefits and in terms of yield and increase in production etc.  But unfortunately, if the lender has no thorough knowledge of markets or goes through financial brokers and spreads his business far and away from headquarters it is difficult to collect monthly lease rentals.  Inspection and Insurance of Assets is very essential.  There is also a danger of double financing against the already existing assets, wrongly shown by the borrower to more than one lender (Banks or NBFCs).  

8.6 All these multiple omissions or constraints affected VBLL recoveries, and the Balance Sheet was seriously impaired, which the Board did not take kindly.  All lending was done much before my joining and I landed only to recover the dues.  After about three years, I made up my mind to move away and in course of my visit to Mangalore / Manipal in late 1998, I happened to meet Director, TAPMI who was my teacher in OU in 1975.

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