UCO Bank has this special Diwali gift for its borrowers who have defaulted on their loan payments

Loan Default: In an innovative way of reaching out to loan defaulters, UCO Bank has decided to distribute sweet packets to top 10 account-holders of Non-performing assets (NPA) in each bank for Diwali.

Sweets Distribution

In a letter to all the Zonal Heads, General Manager, Dheeraj Patwardhan has said that branch heads must personally visit the defaulters and greet them with sweets this Diwali. He further mentioned that not all are wilful defaulters and and the borrowers must be treated like any other valued customers.

"The top management has suggested the distribution of sweet packets to the top 10 NPA borrowers in each branch in line with peer public sector banks (PSBs), like any other valued customers, where branch heads need to meet them personally, greet them on the occasion of Diwali and distribute them a sweet packet. Zonal heads are also advised to personally meet and greet the top 10 NPA borrowers of the zones on the auspicious occasion of Diwali," the letter says.

Also Read: Likely to miss your monthly repayment? SBI will send you a reminder with chocolates!

The letter further added that though the recovery task is not easy, a harmony between customers and bank employees must be maintained.

"Recovery of Bank's dues from the NPA borrowers is not an easy task and branch officials are facing numerous challenges in fields for the same. Time and again, it has been observed that, in general, there is a deterioration in the banker-customer relationship once the account turns into NPA...We cannot deny the fact that a customer presently classified as an NPA borrower was once a valued customer of the Bank", the letter read.

Dheeraj Patwardhan further addressed the issue of ego clash between the customers and bank employees which leads to the performing asset turning into an NPA one. As per the letter the distribution of sweets may bridge the gap created between the NPA borrowers and UCO Bank.

"It is not like each and every NPA borrower is a wilful defaulter and does not pay the dues despite having sufficient repayment capacity. There may be certain compelling situations like a business failure or loss, death of key business persons, or unavoidable circumstances, which also lead to the performing asset turning into an NPA one. On the contrary, in some of these cases, it has been observed that only the clash of ego between the customer and bank officials leads to the account turning into NPA," the letter sent by Dheeraj Patwardhan, general manager (GM) for recovery and law at UCO Bank, says

SBI's Chocolate Reminder

India's largest lender SBI had also announced greeting those who are likely to default on monthly installments with a pack of chocolates. The move was aimed at improving collections and ensuring timely repayments.

SBI had filtered the customers who are likely to default and had decided that the best way to ensure payment is to meet them at their homes unannounced. But of course with a pack of chocolates