IDBI Bank Officials beaten up by a loan defaulter

MDED · 15th April 2018, 15:02

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.

V.Narayan · 15th April 2018, 15:13

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.

mayuresh · 15th April 2018, 18:59

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.

MDED · 15th April 2018, 22:19

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!

GTO · 16th April 2018, 10:24

Please share a link to the video on this thread itself. Thanks!

mayuresh · 16th April 2018, 20:38

Quote:

Originally Posted by MDED

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

deepfusion · 16th April 2018, 20:58

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.

srishiva · 16th April 2018, 21:47

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.

deepfusion · 16th April 2018, 22:43

Quote:

Originally Posted by srishiva

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.

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.

15th April 2018, 15:02	#1
MDED BHPian Join Date: Feb 2016 Location: KA/TN/BR Posts: 368 Thanked: 727 Times	IDBI Bank Officials beaten up by a loan defaulter 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. Attached Thumbnails
	() Thanks

15th April 2018, 15:13	#2
V.Narayan Distinguished - BHPian Join Date: Aug 2014 Location: Delhi-NCR Posts: 4,071 Thanked: 64,317 Times	re: IDBI Bank Officials beaten up by a loan defaulter 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.
	() Thanks

15th April 2018, 18:59	#3
mayuresh BHPian Join Date: Sep 2011 Location: Pune Posts: 443 Thanked: 374 Times	re: IDBI Bank Officials beaten up by a loan defaulter 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.
	() Thanks

15th April 2018, 22:19	#4
MDED BHPian Join Date: Feb 2016 Location: KA/TN/BR Posts: 368 Thanked: 727 Times	re: IDBI Bank Officials beaten up by a loan defaulter 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!
	() Thanks

16th April 2018, 10:24	#5
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,787 Times View My Garage	Re: IDBI Bank Officials beaten up by a loan defaulter Please share a link to the video on this thread itself. Thanks!
	() Thanks

16th April 2018, 20:58	#7
deepfusion BHPian Join Date: Dec 2009 Location: Gurgaon,N.Delhi Posts: 513 Thanked: 235 Times	Re: IDBI Bank Officials beaten up by a loan defaulter 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. Last edited by deepfusion : 16th April 2018 at 20:59.
	() Thanks

16th April 2018, 21:47	#8
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	Re: IDBI Bank Officials beaten up by a loan defaulter 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.
	() Thanks