We have discussed in our previous blog, about how Banks harass the NPAs for recovery, instead of extending them the required support to regain the lost position. Banks fail to understand that an NPA who is lending his/her residential property as collateral to them, is a genuine borrower & does not intend to cheat the bank.
Banks, instead of reciprocating the intention, try to make the NPAs homeless, diverting their intentions from regaining incurred losses in business. Banks are aware that a residential property is the pressing point for an NPA and will be the last straw on the already burdened NPA. Hence NPA will go to a great length to protect it!
Banks try to acquire the residential property & still charge the interest till it’s sold out. Considering the market value of the acquired property, banks don’t adjust the dues against the recovered amount & obtain credits in excess of the loan amount. There is still a blind eye towards this from the authorities and needs to be addressed on a priority. As a result, many NPA‘s are still facing the brunt.
Here, we suggest that Banks can come up with ‘’Symbolic Possession‘’ for NPA, i.e. making them tenants instead of seizing their property & recovering their credit advances. Nothing can be as appalling as being homeless.
The ‘’Symbolic Possession ‘’ will help the NPA and give a mental satisfaction that they have their last hope alive. Banks can keep them as tenants. The implementation will facilitate the NPAs to focus more on their businesses; will give them with an opportunity to repay their credits to the banks. This will create a Win Win situation for the bank and NPA.
