In a major step to bring willful defaulters into repaying their loans, public sector lender, Corporation Bank has adopted a new method to shame them. The bank has now started putting the photographs of defaulters on their hoardings.
So far some banks used to publish only names of defaulters in newspapers, but Corporation Bank has decided to go a step ahead in this regard.
"We put up the photographs of willful defaulters in our branches and on hoardings. We are not doing anything illegal because at the time of disbursement of loan, we obtain the photographs of borrowers and an authorization which allows us to take action if there is a default," said Ramnath Pradeep, chairman of the bank.
He admitted that identifying willful defaulters is not an easy task.
"We give them enough notice and enough opportunities to start repaying. It is only when we are set to take action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act that we publish photos," said H M A Khan, general manager, Corporation Bank.