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SBI, Dmu administration to take ‘hard action’ against loan defaulters
Published on 24 Sep. 2010 12:28 AM IST
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Observing high prevalence of default in repayment of bank loans in Dimapur town and its adjoining areas, the State Bank of India (SBI) Regional Branch, Dimapur together with district administration has decided to carry out a massive drive with hard action for recovery of banks loans.
According to a notice issued Thursday by SBI regional manager, willful defaults have restricted the ability of the bank to extend credit to needy sector in the state and that due to default in repayment of bank loans serious impact on the flow of credit in the state has been created.
Stating that this trend has been noted with the strong support from Dimapur district administration, the SBI regional manager said the administration along with bank management has decided to crackdown on defaulting borrowers and take legal proceedings against them. This decision was taken recently during the DCC meeting held in Dimapur, said the regional manager.
The meeting decided to serve “demand notices” for repayment of loans, to defaulters, and if ignored, the authority would trigger off the action of seizure/impounding of assets of the defaulters after fast-track legal processes, the bank official said.
“Resolutions agents appointed by the bank are already on the job of seizure of properties including cars, houses, shops, etc and auctioning seized properties,” said SBI regional manager, adding that names and photographs of all defaulting borrowers would be made public through media.
On the issue of some defaulters, who were allegedly pressurizing bank officials, by threat and intimidation not to follow up their loans, the bank official said law enforcement agencies would launch appropriate action against those recalcitrant borrowers, and also take criminal action after due legal process against selected cases.
SBI regional manager, therefore urged all defaulting borrowers to repay dues urgently so as avoid unpleasant action.
Meanwhile, it outlined that highest concentration of such defaulters have been detected among small businesses, autorickshaws, small shop keepers, and a few SSI units, housing loans & car loans, etc.
Further, the SBI viewed that such huge default over the years in Dimapur town has affected the health of the branches extremely.

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