Welcome Savings Bank rejected nearly all requests for mediated debt restructuring under the New Start Fund in the second quarter of this year. SBI Savings Bank, the industry’s largest by assets, also turned down a large share of requests. As high rejection rates persist at some major savings banks, critics say the lenders should take a more active role in restructuring debts owed by vulnerable borrowers.
Welcome Savings Bank’s rejection rate for mediated debt restructuring under the New Start Fund reached 98.2% in the second quarter, financial industry sources said on the 14th. That means the lender declined virtually every restructuring request it received. SBI Savings Bank’s rejection rate stood at 81.7%.
The high rates were not new to…