Public sector bank does Gandhigiri with loan defaulters

Ahmedabad: Adapting a Gandhian approach, Allahabad Bank officials on Tuesday held a roadshow against loan defaulters and offered them roses, requesting them to pay back the bank's dues. However, the main directors or chairmen of the defaulter firms did not come forward to accept the roses.
Around 40 officials of Allahabad Bank visited offices and residences of four big defaulters including Sai Infosystems, Electrotherm, Rainbow Papers Ltd (RPL) and Shell & Pearl Porcellano Ltd (SPPL) in Satellite, SG Highway and Shelaj.
In case of Sai Infosystem, the residence was locked, while in case RPL, the company's deputy general manager (commercial), Niyati Goenka, claimed that her father-in-law was unwell when the bank officials reached her office. Similarly, in case of SPPL, the directors sent an accountant to receive the roses.
Manoranjan Das, deputy general manager, Ahmedabad zone of Allahabad Bank said, “Total advances by Allahabad Bank in Gujarat are around Rs 6,200 crore. Of this amount, around Rs 1,392 crore has turned into NPAs (non-performing assets).We have launched this protest against big defaulters who are leading lavish lifestyles and commanding high status in society , but are not repaying the bank's loan by stalling various processes of recovery .“
As many as 23 defaulters of Allahabad Bank have Rs 1crore and above in dues.
This is the first time, Allahabad Bank has taken such steps to create moral pressure on the defaulters. Similar roadshow and protests were carried in Surat, as well, by the bank officials.
According to sources, the top defaulters of Allahabad Bank in Gujarat are Kemrock Industries (Rs 444 crore), Electrotherm (Rs 275 crore), Pradeep Overseas (Rs 175 crore), RPL (Rs 160 crore), SPPL (Rs 50 crore) and Sai Infosystem (Rs 50 crore).