Recently, the country’s largest government bank State Bank of India had come up with a unique solution for bank defaulters. Actually, SBI had announced that bank defaulters will be allowed to take chocolate to repay a home loan. After which, now another government sector UCO bank had planned to give sweets to the top 10 defaulters of each of its branches on Diwali. However, the bank immediately withdrew this plan.
The bank had issued a circular in this regard and then also withdrew it. Kolkata’s UCO Bank had issued a circular on November 1 saying that the top 10 defaulters of each branch would be given a box of sweets on Diwali. The bank believed that with this step people would be treated like valuable customers and the branch head was asked to personally give boxes of sweets to the top defaulters.
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Method of recovering money from defaulters
Banks keep adopting various methods to recover money from defaulters. Some time ago, the country’s largest bank SBI had also decided to send chocolates to the customers who defaulted in loan payments. Its objective was to motivate borrowers, especially retail customers, to make timely payments.
On similar lines, UCO Bank had also made a plan to send sweets to defaulters on Diwali. The top management had suggested that the branch head should personally meet the top 10 defaulters and give them a box of sweets. Similarly, the zonal head should meet the top 10 defaulters of his zone.
How much is the NPA on the bank?
UCO Bank says that recovery of dues from defaulters is not easy and officials are facing many challenges in this matter. It is not that everyone intentionally defaults. Many times people are unable to pay the installment due to compulsion. The bank’s GNPA declined to 4.48 percent in the June quarter. Similarly, the NPA of the bank also remained at 1.18 percent.
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