22nd November 2014, Vinod Kambli became a case study on wilful defaulters for the students of banking and finance. The case study was facilitated by Mr. Jatinder Pal Singh Broca who is a retired Chief Manager from Bank of India and is presently a consultant with State Bank of India.
The case study was about former Indian cricketer being named by Dombivali City Cooperative Bank as a wilful defaulter following his outstanding dues with the bank. The bank had put an advertisement in a local daily newspaper claiming that he and his wife Andrea Kambli have not paid the instalments for a loan that was credited by the bank. Both Kambli and his wife were missing which forced the bank to publish the advertisements.
Key Learning of the session is
1. Anyone who fails to repay bank dues of more than Rs. 25 lakhs despite of his capacity to pay can be proclaimed to be a wilful defaulter.
2. In case of default of loan the onus of the repayment falls on the guarantor immediately. In case where the guarantor refuses to pay despite having sufficient funds, such guarantors are also declared as wilful defaulter.
3. Banks can use Name and Shame, publish names and photographs of wilful defaulters, to discourage borrowers from defaulting on loans.
4. No bank shall further lend any money to people who are declared wilful defaulters.
5. Banks are increasingly conducting Forensic Audit to determine any siphoning or diversion of funds that are borrowed from the bank.
Besides Kambli the workshop also included a discussion on the famous case of Kingfisher Airlines along with a few landmark judgements relating to similar defaults and debt recovery. The next generation bankers being groomed at IBF learnt valuable lessons on NPA Management and the necessary diligence in credit appraisal.