By Admin 
It is very common for banks to stuck the loan given to people. But when the loan gets stuck, it becomes very difficult to recover it at times. But five public sector banks have made a strategy together, so that the trapped loan can be recovered. Five banks, including SBI, PNB and Bank of Baroda, are working on a plan to create a common collection agency for recovery of retail and MSME loan of less than Rs 5 crore.
Steps together for loan recovery
According to a report by the Economic Times, a firm will be created by these five public sector banks at present- PSB Alliance Private Limited, which will be based on the Prue of Concept and will later join other banks. The aim of making the lines of National Asset Reconstruction Company Limited is that this will help banks to focus on main backing activities. Especially, in a case when a single loan taker has taken money from many banks.
Loan recovery will now be a special way
At this time, only three to four government banks are being outsourced for recovering the loans stranded. In such a situation, once this agency is formed, banks will help in focusing on the stuck loans of big defaulters instead of these small loans.
It is worth noting that many such cases have been reported, including the PNB fraud case, when the bank has been able to know about the fraud. In such a situation, if there will be a separate agency for the revolting of these small loans in time, then the bank will get a full chance to focus on those taking their big loans. As soon as the agency starts work for these five banks, it is expected that the rest of the bank will take its help.