Public sector lender UCO Bank has reversed its decision to distribute sweet packets to its top 10 non-performing borrowers across zones this Diwali. This came a day after it announced the move through a circular addressed to all zonal heads.
The circular was reportedly withdrawn after feedback from employees that it would be difficult to implement across the board. "Each case has to be dealt with on merit. There is feedback that in some non-performing cases, the borrowers are not cooperative, and strict action as per existing rules should be pursued," The Economic Times quoted a senior bank executive as saying.
Earlier, in a circular dated November 1, UCO Bank had said that its top management has suggested for distribution of sweet packet to the top 10 non-performing assets (NPA) borrowers of each Branch.
In the circular to all zonal heads, UCO Bank's general manager (recovery and law) Dheeraj Patwardhan said that the lender cannot deny the fact that a customer presently classified as a defaulter was once a valued customer. He added that proper connect with such customers may bridge the gap created between them and the Bank.
"In view of the above, the top management has suggested for distribution of sweet packet to the top 10 NPA borrowers of each branch, in line with peer PSBs, like any other valued customers, where branch heads need to personally meet them, greet them on the occasion of Diwali and distribute them a sweet packet," the Bank said in the circular shared by noted banking columnist Tamal Bandyopadhyay on X.
Zonal heads were also advised to personally meet and greet the top 10 NPA borrowers of the zones on the auspicious occasion of Diwali.
All the zonal heads were asked to ensure strict compliance with the direction. After Diwali, account-wise reports of all the branches will be compiled by the zone and will be sent to the department at least by 15 November, the circular said.
The state-run bank reported an 80.80 per cent year-on-year (YoY) rise in net profit at Rs 223 crore for the first quarter of FY 2023 (April-June) compared with Rs 124 crore in the same quarter last year.
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