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What TV doesn't, print can't; we deliver.
NEW DELHI: UCO Bank, which is a government-owned institution, has decided to distribute ‘gift packages’ to the highest 10 defaulters in each branch in its endeavour to reclaim delinquent loans. In a memorandum addressed to all zonal heads, Dheeraj Patwardhan, the General Manager of Recovery at UCO Bank, emphasised that the bank acknowledges the past status of these defaulters as esteemed customers.
In a note, addressed to all zonal heads of the renowned Indian commercial bank, the proposal states that the “Top Management” has recommended the distribution of festive sweets to the top 10 NPA borrowers across its branches, aligning with the practices of other Public Sector Banks.
This development unfolds against the backdrop of a surge in the outstanding amount for “wilful defaulters”, which has reached a staggering Rs 3,53,874 crore, encompassing 16,883 accounts, as per data from March this year. This marks an increase of over Rs 50,000 crore compared to the previous fiscal year.
It’s worth noting that these instances of ‘wilful defaulting’ are largely associated with Public Sector Banks, notably the State Bank of India (SBI).
UCO Bank’s unique step aims to foster a more harmonious relationship between the bank and the defaulting entities. The memo suggests that establishing a better connection with such customers may bridge the gap that has developed over time.
Moreover, it posits that these interactions could generate empathy and harmony, potentially motivating some borrowers to step forward and settle their accounts with the bank.
Currently, Zonal Heads have been instructed to ensure “strict compliance” with the order and provide an account-wise report by November 15, indicating their commitment to this unconventional approach to managing NPAs.
