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Recovery agents will go to extremes!

Yesterday, certain recovery agents of ICICI bank allegedly killed a person who had not paid up his loan. Another defaulter quoted a horrifying experience too.

“They took off my shirt, shaved off my moustache, cut my hair and gave electric shocks on my chest. They even spit on my face. It was very humiliating and traumatic,” said CLN Murthy, Loan defaulter.

It is strong-arm tactics like this that allegedly caused the death of 42-year-old Yadaiah, a government employee who was allegedly picked up from his office on Friday by a recovery agency of ICICI Bank. A couple of hours later his wife got a call that Yadaiah was dead.

Was the bank aware of the recovery agency using such tactics? I don’t know but the agency gets a lot of money to recover the loan, and from certain sources, upto 40% of the amount recovered. Plus, ICICI bank has already paid Rs. 15 lakh to the family, even if it wasn’t directly its fault.

But that does not condone the murder. If word spreads, people will refuse to take loans from ICICI bank and quite rightfully so. But I’m sure this is not a problem of ICICI bank alone…isn’t it a problem of the whole industry?

Yet, our people are so strapped for credit that it is probably better to work with a bank than to get credit from, heaven forbid, a moneylender.

  • Anonymous says:

    >Well, ICICI Bank is adopting global standards and practices so it is not surprising to see it borrowing from the leaves of Citibank! Just to refresh your readers’ memories, recovery agents of Citi used to go around with organ traders trying to prise off kidneys of loan defaulters!

    Shiv Kumar

  • Dattaswarup says:

    >Dear Shenoy, I read all your blogs and find them very informative.

    I have an query.I had invested in NSC during 2005-2006 FY.Can i claim the interest which i will getting after 1 yr as the amount i am investing during 2006-2007 FY as decuction under 80C ?

    Pls reply.

  • Deepak Shenoy says:

    >dattaswarup: Thanks mate. As far as I know you can claim the interest under 80c as it is reinvested. (That used to be the case when I owned an NSC 🙂 )

    But the interest is also taxable income so it should be added to your income under the “interest” head.

  • Anonymous says:

    >hello deepak,
    i need your take on fortis and the general healthcare industry in a seperate blog. i have invested money in fortis ipo @108 not for quick else would have exited on day 1. but obviously something _IS_ wrong otherwise from 108 to 82 (last i checked) which is like 27% down doesn’t happen without any ground. any idea whats up with fortis and for a 2-3 year timeframe the story is still good?