SBI to send chocolates to borrowers who are likely to default on monthly repayments
Mumbai (PTI): The nation's largest lender State Bank of India is adopting a novel way to ensure timely repayments, especially by its retail borrowers, by greeting those likely to default on monthly installments with a pack of chocolates.
According to the bank, it has been found that a borrower who is planning to default will not answer a reminder call from the bank. So the best way is to meet them at their homes unannounced.
The move, aimed at ensuring better collections, comes amidst rising level of retail lending in the system coupled with increasing delinquency levels on the back of the upward movement in the interest rates.
SBI's retail loan book grew over 16.46 per cent to Rs 12,04,279 crore in the June 2023 quarter from Rs 10,34,111 crore in the year-ago period, making it the largest asset class for the lender whose total book stood at Rs 33,03,731 crore, growing at 13.9 per cent on-year.
In fact for the entire system, the double-digit loan growth of around 16 per cent has been led by retail loans only.
''With two fintechs which use artificial intelligence, we are piloting a novel way of reminding our retail borrowers of their repayment obligations. While one is doing conciliation with borrowers, the other is alerting us on the propensity of a borrower to default. And to such borrowers who are likely to default, the representatives from this fintech will visit them, carrying a pack of chocolates for each of them, and remind them of the forthcoming EMIs,'' Ashwini Kumar Tewari, managing director in-charge of risk, compliance and stressed assets at SBI, said here over the weekend.
According to Tewari, this novel method of carrying a pack of chocolates and personally visiting them is adopted because it has been found that a borrower who is planning to default will not answer a reminder call from the bank. So the best way is to meet them at their own homes unannounced and surprise them. And so far, the success rate has been overwhelming, he said.
Tewari refused to name the fintechs saying the move is just at the pilot stage and has been put into place just about 15 days back and ''if successful, we will formally announce it''.
''We are also talking to a few other fintechs to improve our collection efficiencies and hopefully by the end of the year, we will have formally tied up with at least half of them,'' he said, adding, ''we want to continue the pilot for at least four to five months.'' SBI's over Rs 12 lakh crore of retail book consists of personal, auto, home and education loans. With a home loan book of over Rs 6.3 lakh crore as of June, SBI is the largest mortgage lender too.
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India taking this seriously: US official over report on assassination plot of Sikh separatist leader
Washington (PTI): India is taking the allegations regarding the assassination plot of Sikh separatist leader Gurpatwant Singh Pannun in the US seriously, the White House has said but refrained from commenting on the FBI probe into the matter and the criminal case filed by the Department of Justice.
The remarks by White House Press Secretary Karine Jean-Pierre on Monday came amid an investigative media report claiming that a RAW official identified as Vikram Yadav was involved in the assassination plot of Pannun in the US and the move was approved by the then Indian spy agency chief Samant Goel.
Pannun is one of the main leaders of the Khalistan movement and the legal advisor and spokesperson for Sikhs for Justice, which aims to promote the idea of a separate Sikh state. The Indian government has declared Pannun a terrorist.
Replying to questions on the report by The Washington Post, Jean-Pierre said an investigation is underway and the Department of Justice (DOJ) is running a criminal investigation.
"So anything specific to that I would have to refer you to the DOJ," she said.
The White House press secretary asserted that India is an important strategic partner of the United States and "we are pursuing an ambitious agenda to expand our cooperation in several areas".
About the investigative report on alleged the assassination plot, Jean-Pierre said, "We've been really consistent about that and have laid that out multiple times, whether it's a meeting here with the prime minister or a meeting abroad."
"This is a serious matter and we're taking that very very seriously. The Government of India has been very clear with us that they are taking this seriously and will investigate," Jean-Pierre said.
"We expect accountability from the government based on that. But we are going to continue to raise our concerns. That's not going to stop. We're going to continue to raise our concerns directly, with the Indian government," the press secretary added.
The alleged plot to kill Pannun in the US coincided with the June 18 fatal shooting of Khalistani terrorist Hardeep Singh Nijjar in Surrey in Canada's British Columbia province in June last year. That operation was also linked to Yadav, according to Western officials.
Both plots took place amid a wave of violence in Pakistan, where at least 11 Sikh or Kashmiri separatists living in exile and labelled terrorists by the Narendra Modi government have been killed over the past two years, the report said.
Senior Indian government officials named in the Washington Post report did not respond to it seeking comment, the daily said.
However, when asked about the investigation into the allegations made by the US in the Pannun case, Ministry of External Affairs spokesperson Randhir Jaiswal said last week, "We have set up a high-level committee. The committee is looking into information that was shared by the American side with us, because they also equally impact our national security."
The high-level committee is looking into those aspects and that is where it is right now, Jaiswal said in New Delhi on April 25.
External Affairs Minister S Jaishankar on April 1 had said that India's national security interests are involved in its investigation into the alleged involvement of a government official in the assassination plot aimed at Khalistani extremist Pannun.
The Washington Post reported that the Biden administration has refrained from making charges against Yadav.
