Defaulter Behavior in the Indian Banking Sector: A Banker Prospective

Abstract

The Indian Banking sector is a very prominent and efficient lending sector all over the world. India’s bankers have adequately manage their lending sector in order to increase the spread. The entire risk bearing activity as only to earn profit. Indirectly if we say, the association between profit and risk is linear. The primary function of bank is accepting deposits and lending loans. The bank cannot run either of any one activity alone, so that investment is vary essential in order to get more spread.Again if we see understanding a human psychology is very much difficult and perhaps above eighty five percent bankers has failed to read or understand individual psychology. Again we can suggest as understanding borrower psychology is inversely proportional to loan functions, i.e. if understand the psychology very keenly the chances of loan defaulting is very low and vice versa. India is a combination of different income level individual and their behavior also drastic upon their income level. Sometimes the above said prove falls as in this study has seen the people behavior is constant some time reverse irrespective to the income. I have gathered information about various mind set of people, when they are given loan. Most of the bankers entitled the lenient factor of defaulting is willfulness.