State Bank of India, country’s largest public sector lender has decided to take some tight actions for defaulting borrowers. It has faced an Rs 51,000-crore bad loans pile and it is planning to ask its field staff to deal with recoveries to go after loan defaulters. The bank staff has been asked to take photographs of the properties during inspection and keep them in the records.
The bank will take physical possession of the assets charged to it by the defaulters to preserve their value and realize the maximum amount from their auction. Earlier it used to take the symbolic possession of a pledged asset by pasting a notice that the property belongs to it.
