Bad debt fear keeps private banks away from street vendor loans
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This story is from December 26, 2020
Bad debt fear keeps private banks away from street vendor loans
Sidhartha / TNN / Updated: Dec 26, 2020, 11:15 IST
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(Representative image)
NEW DELHI: Last week, a branch manager of a leading state-run bank in Madhya Pradesh wrote to the municipal commissioner seeking “cooperation” as several of the 160 street vendors, who were given loans under the PM SVANidhi scheme, had not paid a single instalment, turning them into non-performing assets (NPAs).
While executives in the branch described it as routine communication, several bankers point to it to argue that their worst fears are coming true at a time when several state government officers are pushing for rapid disbursement of loans.