Country's second largest public sector lender Punjab National Bank (PNB) has seized passports of 150 wilful loan debtors. Apart from lodging 37 FIRs against those who are not repaying loans as part of its recovery drive, the bank took this step.
According to the reports published in TOI, the bank has previously announced 1,084 wilful debtors and also have published photos of 260 such debtors in a leading daily.
During an interview, PNB MD Sunil Mehta had told TOI that the bank, which has been caught by an over Rs 14,000-crore scam by diamond traders Nirav Modi and Mehul Choksi, is banking heavily on the recovery of loans. This step is taken to improve its economic condition. The state-run bank also intends to hold data for loan recovery and risk management through a tie-up with an outer agency.
PNB is trying to obtain contact details of defaulters who have a good credit record with other banks and follow the errant borrowers. As per the statement, this partnership is a part of the wider policy to expand the technology to establish internal systems. This partnership will not only help the bank with loan recovery but will also help recognize and automate effective lending policies and minimize credit and fraud risk.
The bank declared that two special one-time settlement (OTS) schemes have already helped stimulate the regeneration of bad debt. With the average rising from 70,000-80,000 NPA accounts a year to 2.25 lakh accounts during the last 10 months. These schemes apply to small NPA accounts, helping debtors come out of debt.