Indian Banks' War on Loan Defaulters

Bangalore: Recovering loans from the big companies are becoming difficult in India, Reuters’ report says. Despite of all the accepted terms and conditions, the companies are developing deaf and dumb to most of the bank notices, asking them to repay all their outstanding loans.

This might have been the reason, UCO Bank has recently summoned the owner of the brand S. Kumar’s as a loan defaulter among the public. All the banks are about to adopt strict measures to recover their money from all their lenders.

Reports say that the loan amount in India is almost $150 million, which comprises 10 percent of the India’s total bank assets. Most of the Indian banks are now all set to tighten their knots on all the lenders and this will help the banks to fight against the slow economic growth of the country.

Even though the banks possess the authority to drag the loan defaulters to the court, seize their properties and power, the banks cannot take rapid action on the defaulters and the recovery process becomes lengthier.

Also Read:
Four Companies Earning Big Bucks From Education Business
58 Pct Smokers In India Without Health Coverage: Survey