The Minister of State in the Ministry of Finance(Shri Pawan Kumar Bansal)
(a) & (b): Dena Bank has not issued any Caution Notice to borrowers for recovery of loans.For
recovery of loans, the Bank issues demand / recall notices and notices under the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest (SARF AESI) Act to
defaulted borrowers.The Caution Notices are generally issued by the banks by way of confidential
letters to Bankers alerting them about the high value defaulted accounts to avoid multiple
financing to defaulted borrowers,to safeguard the security interest and to prevent dilution of
securities charged to banks.Further,such exchange of information amongst Bankers is made in
Standard Accounts also.This being a confidential exchange of information amongst Bankers as per
general banking practice,this does not affect the social standing of the Borrowers.
(c) & (d): In one high value defaulted Corporate borrowal account based in Pune with total
exposure of around Rs. 160 crare from the banks under consortium arrangement,it was decided to
issue Caution Notice to Bankers in Pune to avoid double financing, prevent dilution of security
and to safeguard the security interest of all the lending banks.However, the Caution Notice was,
subsequently,withdrawn by the Bank at the specific request of one of the Directors of the
defaulted company,who represented that the issue of Caution Notice had affected the operations of
the other companies where he is a Director and more than 450 families are directly dependent on
these companies.
(e) & (f): The concerned high value corporate borrower is registered under the Companies Act,
1956.One of the directors of the company represented that he belongs to a Scheduled Caste.
(g) to (i): The decision to issue Caution Notice or other notices for recovery of their dues is
taken by banks in accordance with their recovery policies and is guided by their usual commercial
judgement.
