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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PM Modi has taken 'bold decisions' to combat terrorism, says HD Deve Gowda
New Delhi, May 6 (PTI): Former prime minister HD Deve Gowda on Tuesday said Prime Minister Narendra Modi had taken "bold decisions" to combat terrorism following the April 22 Pahalgam attack and affirmed his and his party's support for all the decisions to end the menace.
"We need to teach the terrorists a lesson. This is the first time that a prime minister has taken such bold steps. No prime minister has given such supreme authority to the army," Deve Gowda said at a press conference.
The Janata Dal (Secular) leader noted Modi implemented several measures, including granting full operational freedom to the Indian Armed Forces to determine the mode, targets and timing of their response.
Founded by Deve Gowda, the Janata Dal (Secular) is a constituent of the BJP-led National Democratic Alliance. His son HD Kumaraswamy is a minister in the Union government.
Deve Gowda noted that the current situation could not be compared to the 1971 war between India and Pakistan, describing them as "different scenarios".
The former prime minister also welcomed the Centre's decision to enumerate caste in the upcoming general census while hitting out at the caste survey conducted in Karnataka.
"Karnataka is indulging in politics in the name of caste census. Even Chief Minister Siddaramaiah's Cabinet does not agree with the caste census conducted in the state," he said.
Deve Gowda said the Karnataka survey had identified 1,351 castes and sub-castes, with the Kurubas being among the prominent backward communities.
He also questioned Siddaramaiah's commitment to his AHINDA platform. "How many staff has he hired from backward communities or his own Kuruba community in his own office?"
The Karnataka caste survey report has recommended reclassifying the Kuruba community from category 2A to the more backward 1B category, reflecting its socio-economic status.
AHINDA represents a significant portion of Karnataka's population, including religious minorities (Muslims and Christians), Scheduled Castes, Scheduled Tribes and Other Backward Classes.
