India’s largest lender, State Bank of India (SBI), is employing a unique approach to encourage on-time repayments, particularly from its retail borrowers. When SBI identifies borrowers at risk of defaulting on their monthly installments, it sends representatives to their homes unannounced, bearing packs of chocolates as a friendly gesture. The bank’s strategy aims to improve collections amid a surge in retail lending and rising delinquency levels linked to interest rate hikes. SBI’s retail loan portfolio grew by 16.46% to reach Rs 12,04,279 crore in the June 2023 quarter, constituting the largest asset class for the bank. This innovative approach, piloted with the assistance of fintech companies using AI, is showing promising results in engaging borrowers who might otherwise ignore reminder calls.
SBI to Surprise Defaulting Borrowers with Chocolates to Ensure Timely Repayments
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