According to a recent press report Bank of Maharashtra has taken an effort to make the defaulters to repay their Loans. The MAO (Many against One) is the new tactic followed by the bank to recover the loans. Mr. A.S. Bhattacharya, Chairman and Managing Director, of the bank said that there are better results in loan repayments when a team approaches the customer compared the single persons approach.
Reports said that the MAO team normally consoles the customers and says the importance of repaying the loans on time. The team has not adapted any other arm tactics towards the borrowers. The synergy effort achieved success among the small borrowers who have pay about Rs. 10 lakh. The small borrower’s loan account has Rs. 1,100 core NPAs as on September 2011.
The Corporation Bank in Mangalore is also taking such initiative to recover the loans, the “naming and shaming” make the borrowers to repay their loan. The banks display the photographs including the details of the defaulters in the public places, which makes the borrowers to feel ashamed and forces them to repay their loans.