Bad loan recovery process can get worse

Apart from creating a distinction between financial creditors and operational creditors, the latest Supreme Court judgment also leads to the creation of a new category of default - temporary default

Samir Kumar Nath, 74, a retired chief general manager of the State Bank of India, was arrested last month by Kolkata police.

As a nominee director, appointed by the bank on the board of Spentex Industries Ltd, a loan defaulter, he had a stint between September 17, 2015, and December 1, 2017.

The Nagpur-based company had not transferred provident fund (PF) to the tune of little over Rs 3.29 crore for employees. I don’t know why Nath or the State Bank didn’t respond to the notice served by the loan recovery officer. Probably he did not draw the bank’s attention