NAMCHI,: State Bank of Sikkim (SBS) managing
director Phurba Wangdi Bhutia has emphasised that the SBS is actively closing
down large properties and seizing them in different parts of State due to loan
defaults by the borrowers.
Speaking to reporters at Bhanjyang on Tuesday, where SBS
opened its new branch, Bhutia sent a strong message to defaulters, asserting
that the bank will not halt its recovery mission “come what may.” He added that
the seizure of properties is a standard banking procedure and the last resort
in the loan recovery process.
Addressing allegations that the SBS has been confiscating
properties without prior notice, Bhutia said, “Seizing properties is the final
and irreversible action taken by the bank. However, we follow due process and
issue necessary notices to the concerned borrowers.”
He urged borrowers struggling with repayments to approach
the bank to discuss relief schemes designed to amicably settle outstanding
loans.
“We can offer the best possible solutions to help
borrowers repay their dues. However, if a borrower ignores the default notice
and fails to approach the bank, the matter is escalated to the court. Once a
case reaches court, the chances of relief significantly decrease,” he warned.
The SBS managing director further informed that several
defaulters have mortgaged their ancestral properties to banks only to risk
losing them due to non-payment.
