New Delhi, May 8 (KNN) In a move which will badly dent image of failed entrepreneurs, the Public sector banks have started publishing their photographs in newspapers in case the unsuccessful enterprises are not able to repay their loans even for reasons beyond their control.

Worse, the picture of even guarantors to be failed entrepreneurs is also being published to the huge embarrassment and loss of reputation to the business houses particularly the SMEs.

A beginning in this direction has been made and the state owned Oriental Bank of Commerce has published pictures of five such entrepreneurs including a women business person in a National Economic release.

The banks are authorised under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFASI) to take possession of the property of the borrowers and the guarantors in case loan securitized against these properties are not repaid.

In the last three months hundreds of possession notices have been issued by the banks, mostly the public sector banks for recovery of the assets.

At a time, when the economy is not doing well, banks are witnessing increase in their Non-Performing Asset (NPA) and large number of such assets is a result of the business slowdown.

The move to acquire such assets has picked up in the recent few months but naming and shaming the entrepreneurs has surprised and shocked a large section of the industry.

“Banks are committing excesses because a large number of those who fail to pay are not the wilful defaulters,” said an Industry analyst.  (KNN)