21 Oct, 1987
Thanks for M_D_G 4489 for your support.
Raj was in his office today was his important meeting with a bank owner.
Raj was going to acquire that bank.
A person enter the room.
Raj stood up and extended his hand.
Welcome Mr MDG, please sit down.
MDG sat down on chair and Raj ordered a coffee by a staff boy.
MDG then said " Mr. Raj look this is our bank paper with full details you can review them"
Raj took the file and started reading the papers.
The staff boy also delivered the coffee and MDG started drinking it.
After 5 minutes, Raj said " Mr. MDG your Luxmi Bank has 200,000 active users and you have 15 crore in hour bank. You have taken loan of 20 crore from other banks and every year you have to pay 1 crore in interest. On that you are going to sell your bank for 50 crore is not it is very bad deal. "
MDG said very nervously " Mr. Raj, Although we have huge loan but we have huge user base. We have gathered these user with 20 year hard work. Also our banks branches and offices are on our own land which have 5 crore values. Also we have given 10 crore in loan also. In last our offer is very good. You will get offer like this anywhere. "
Raj also gave some more arguments and both of them negotiated after that Raj finalized the deal on 45 crore rupees.
After that MDG goes out of office and now paper work will be handled by Suraj.
After 2 hours, Suraj enter the office and said, Boss all the paper work has been completed in 2 days Luxmi Bank will be ours.
Raj said " first of all Suraj after getting the bank clear all the loans and gather the list of people's who took loan from our bank and gave to me. "
Suraj said " Okay boss, any More instructions "
Raj said " Luxmi bank has only 40 branches in Maharashtra only. Took 50 crore and open 50 more branches and 20 in Gujarat and 20 in Delhi. You don't have to buy the land and build own building just rent it. "
Suraj said " Boss, is not it very aggressive. We have to take it slow and gather more users. "
Raj said " If we want to make our bank big we have to take risk. "
Raj asked " How much interest rate our bank charge on loans and how much on deposit "
Suraj said " Boss, usually on loans bank charge 12-16% and for deposit bank have 8-10% . "
Raj said " On loans don't change and for deposit increase it to 8-15 % depending on time. For longer time we gave more interest. Also if loan amount is low and for shorter period under 1 year change interest rate to 6-10 %. "
Suraj said " Okay boss "
Raj also said " Also don't limit account fund like every time people bank account must have some amount. If it is 0 it will also we okay. We will not put any fine. "
Suraj then come out of office and goes to do his work.
Raj then sat alone on the office. He was thinking that with bank in hand. I have more money i can put it in stocks market get more money like people deposit 100 rupees for 1 year with 10% interest. After year we have to give 110 but that money i will put in stocks for 1 or 2 month and get 4-10 or more interest depend on stock and in last lot of money can be made.