In order to make the defaulters pay their dues in the earliest possible way State Bank of India will follow an innovative strategy. The largest lender in the country will publish the names and photographs of deliberate defaulters in leading publications.
A senior bank official said, "The idea is to discourage the public from defaulting on loans. We will send them notices before going ahead with such measures," he said. The bank will further ensure that name and photographs of only those borrowers will be published who have wilfully defaulted. "
"In the old days it used to be such a matter of family shame. These days nobody even notices in it the newspapers. So the fresh approach may ruffle a few feathers," said a senior manager.
The lender is facing difficulties in recovering the loan and hence has come up with the move. The bank expects that the social pressure created in such a manner can make the defaulters to settle their debts soon.
"Even if at the branch, the name and photograph of the person is there as defaulter, a large section who bank in that area will know," said a senior bank official.