The BBC reports
A bank in India has decided to publicly shame defaulters in order to recover outstanding loans. Employees of the Urban Co-operative Bank in the eastern state of Orissa have begun staging noisy demonstrations outside the home of defaulters.
Armed with posters, they kicked off the loan recovery drive outside the homes of two defaulters last week. Officials say this is the final resort for the bank which is facing problems over mounting bad loans.
Some 77% of the bank’s loans have gone bad – this amounts to $6.13m of unrecovered money.
77%?! Whence this number? I wonder what proportion of the loans were made because of non-economic reasons (politics, quotas) as opposed to sheer ineptitude? Maybe I should approach them to finance my bridge buying plans…
Hat tip: the World Bank blog