The move was made as they are facing problems to recover the loans in both corporate and retail segment.
"The idea is to discourage the public from defaulting on loans. We will send them notices before going ahead with such measures," said a senior bank officer.
Adding to that, he said, "The permission will granted by the chief general manager of the circle after proper due diligence."
According to the RBI regulation, 'a wilful default' would be charged against the borrowers who fail to pay the dues. Even if they don't channelise the given fund for the specific purpose for which it was availed and divert for some other purpose, they would be considered as defaulters .
"In the old days it used to be such a matter of family shame. These days nobody even notices in it the newspapers. So the fresh approach may ruffle a few feathers.
"Even if at the branch, the name and photograph of the person is there as defaulter, a large section who bank in that area will know," he added.
Last year, the total bad loans for the bank till Sept 2011 was at 33,946 crore, as against 23,205 crore in the corresponding year.