Danavas became bold and courageous after Bali became their king. Many heroes and scholars, who had taken shelter elsewhere on account of their fear of the Devas, now rallied together under the leadership of Bali.

Bali appointed scholars and wisemen as officers to assist him in the administration. shukracharya, the renowned wise ascetic, was appointed as the chief priest and adviser to the king.

The first task before Bali was to subdue the neighboring kings and also those that were far off from his kingdom and make them obey him. There was a reason for this. Some of the kings were selfish and wicked. They were robbing the subjects and harassing them without any cause. There was widespread poverty on account of the kings' misrule. There was no protection for the weak and the helpless. In many places subjects deserted their lands and ran for their lives, as a result of the unbearable harassment inflicted on hem. This made the lands unproductive and barren.

Having assessed the condition, Bali came to the palace of his grandfather, Prahlada, to consult him for advice. Prahlada welcomed him with affection. Bali said, "Grandfather, it is obvious that the king should be good if the subjects should live in peace and happiness. I am going now to fight the wicked kings and make them obedient to our law. Bless me and wish me well." Prahlada said, "Child, under the circumstances now, both courage and forgiveness are needed. Only one of these is never sufficient. Witnessing unrighteous conduct and needless pain inflicted on others, if we do not take proper action against the unjust, our own kith and kin will treat us with indifference. If a king always displays his power to punish them, his own subjects oppose him and will dread him, like men who are frightened at the sight of a serpent. Thereforeyoushould be forgiving even as you are strong, bold and courageous. Arrogance is never good for any one." With these words Prahlada blessed Bali and bade him farewell.