Supreme Court Criticizes Banks for Casual Lending to Large Entities and Stringent Scrutiny for Common Man

The Supreme Court observed that commercial banks display casualness when sanctioning massive loans to big companies while subjecting ordinary citizens to tedious procedures bordering on harassment. 

The State Bank of India had moved to possess properties of a private firm after it defaulted on the first installment of an Rs 8.09 crore loan.

The Court found clear negligence by SBI officials in assessing the borrower's repayment capacity.

While dismissing the firm's plea due to a six-year default, the bench granted two weeks to approach the Debt Recovery Tribunal and urged the RBI to frame fairer, simpler processes for ordinary borrowers.

[M/S Bhaskar International Pvt. Ltd. & Ors. v. SBI & Ors.]