Team-BHP - IDBI Bank Officials beaten up by a loan defaulter

- - IDBI Bank Officials beaten up by a loan defaulter (https://www.team-bhp.com/forum/shifting-gears/197768-idbi-bank-officials-beaten-up-loan-defaulter.html)

There is a video doing rounds on social media wherein IDBI Bank officials holding silent protest at a Defaulter’s house were abused and beaten up. This is how the defaulters treat you when bankers demand back public’s money lent to the borrowers. Amidst all the cry for privatisation of public sector banks don’t you people think that high and mighty keep cheating the banks and have the audacity to manhandle a public servant. Just see the video, none of the bank officials raised their hand or retaliated at the defaulter.:Frustrati

Thank you for sharing the plight of these honest bank officers.

First credit to the IDBI bank officials for pursuing their duty despite the risks and for holding their patience even under provocation. Second NPAs are not the result of bank privatization in fact PSU banks have the worst NPAs on the whole due to their internal procedures, slow reaction times and vulnerability to pressures from ministers. Third I do not understand why the person tweeting says "yet you say privatize PSUs" - cannot understand the connection.

While appreciating staff's conduct let's not draw conclusions from one incident alone.

Let us not forget trillions of rupees from taxpayer's pocket is going into remonetizatizing NPA ridden PS banks. Had they been private they'd have to manage their own stuff or be wiped out of the business.

In general (notwithstanding above incidence) since the PS banks enjoy this "insurance" they are much more lapse in keeping themselves disciplined. (Well, even pvt players might be indisciplined, but at least public doesn't have to pay for their mess.)

If the thread had a survey my vote is for privatization of banks. May be Govt can keep one odd, either merge or sell the remaining.

I think present regime is of the same opinion, but they seem to lack political will to act.

India as a country can not afford to allow any bank to fail as the markets here run on sentiments. Any news that a bank is failing will create a run on the bank and the public faith in the entire banking system would ween off.
Back in 2004 the Global Trust Bank (a private sector bank) chairman received the best bank award and in the next few months the bank failed and it didn’t clean on its own, the government and the RBI forced Oriental Bank of Commerce (OBC) to take over the failed GTB. So, it’s not about PSB vs Private banks, the buck stops with the MPs and finance ministry intervening too much into the affairs of PSB!

Quote:

Originally Posted by MDED (Post 4386529)

it didn’t clean on its own, the government and the RBI forced Oriental Bank of Commerce (OBC) to take over the failed GTB.

Govt intervention in extreme cases is less of a beast than Govt owning a bank.

Anyway, there is some more relevant news today:

https://timesofindia.indiatimes.com/...w/63777254.cms

I do not understand the logic of bank officials going to the home of a defaulter and protesting.

If the company has turned a NPA, the bank would have taken recourse to the Insolvency and Bankruptcy Code, 2016 and got the company declared insolvent.

The action of the defaulter, if there has been any, is certainly deplorable, to say the least, but the bank officers are themselves to blame. They must not have done due diligence before giving loan to the company.

When you adopt a crude method, this is the reaction. There are various legal means (its slow, yes) to confront this.
We are still in the shaming business for loan defaulting. I have seen bank guys having vehicles which announce they are recovery vehicles etc. But then when law is slow, people take it on themselves through other means. Sad affairs for the country.

Quote:

Originally Posted by srishiva (Post 4387011)

The new law is not lax. Nor is it slow in providing resolution. Its a time bound process now. Although hair cuts are hair raising.