Indian Banks' War on Loan Defaulters

The banks have also tried issuing new loans to the lenders in order to repay the older loans, but this has also proved ineffective when it comes to the loan repayment. Even the ‘fast-track courts’, which were formed nearly ten years ago to solve all the disputed issues, are failing to take necessary actions within a certain time limit.

After the loan default issue of Kingfisher Airlines, the famous clothing brand, S. Kumar’s and Reid and Taylor are hitting the news. Both these brands are believed to be in a debt of $19 million.

This step of UCO Bank is the third legal action against loan defaulters after SBI sent notices to both the brands in May and UBI has issued public notice against Bilcare.

The United Bank of India summoned the pharmaceutical packaging firm, Bilcare as one of the loan defaulter. Bilcare has almost 5,15,219,013 to repay to the UBI and the bank made this to the newspaper in April, 2013.

Bringing out these kinds of issues in front of the public through newspapers and ads, by the banks are becoming popular in India. When the legal systems are quite slow in India, this measure is believed to save plenty of time as well as cash in the recovery procedure of the banks.

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