MUMBAI: The State Bank of India, in a drastic move to improve loan recoveries, will ‘name and shame’ “wilful” defaulters by publishing their pictures in newspapers, the Economic Times said on Saturday. The move, intended to prompt quicker recoveries, is expected to ruffle a few feathers. The bank aims to target those defaulters who have ample resources to meet payment obligations, but deliberately dodge them. The decision comes on the heels of a central bank report that projects bad loans to jump to 5.8 per cent of the total in a “severe risk” scenario, up from 2.8 per cent in September and 2.3 per cent in the last fiscal year.
Published in The Express Tribune, February 5th, 2012.
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The one time I will give Indians credit where it is due. Wish Pakistan follows the same policy at some point.