A Loan Story: Bond Between the Ambanis and Manipal

Team Udayavani, Jul 19, 2024, 7:52 PM IST

The grand wedding of Mukesh Ambani’s son, Anant Ambani, and Radhika Merchant recently took place, drawing attention from global dignitaries. This event, one of the most lavish weddings in modern India, highlighted the prominence of the Ambani family in the country’s economy.

However, many are unaware of the significant role played by Manipal in the rise of the Ambani family. There is also a special story behind the name of the newlywed, Anant Ambani.

In 1968, Dhirubhai Ambani, who was running a textile mill, had ambitions to expand beyond his current operations. He needed a loan of Rs. 2 lakh for this purpose. However, his loan applications were rejected by banks due to the lack of guarantors.

During this challenging time, Dhirubhai Ambani approached Dr. T.A. Pai of Manipal. Dr. T.A. Pai, a successful banker, provided the loan of Rs. 2 lakh through his Syndicate Bank without asking for any guarantees. The rest is history.

Dr. Pai once said, “We must recognize the spirit of entrepreneurship. As bankers, we should provide loans, not act as moneylenders.” Dhirubhai Ambani had recounted this statement to senior RBI officials during Dr. Pai’s funeral.

With the help of the loan from Dr. Pai and his own hard work, Dhirubhai Ambani grew from the textile industry to establishing Reliance, a dominant force in India today.

When the Indian government nationalized Syndicate Bank, Dr. T.A. Pai became the Chairman of LIC and later the first Chairman of IIM Bangalore.

Dhirubhai Ambani never forgot the assistance provided by Dr. T.A. Pai during his tough times. In honor of Dr. T.A. Pai (Tonse Ananth Pai), the banker from Manipal, Ambani named his grandson Anant.