Why do SBI and other PSUs ask for the most proof for CC while having the highest NPAs?

[joell]

Most private banks reported significant slippages to non-performing assets (NPA) from unsecured loans like credit cards in the July-September period (Q2FY25). SBI incurred smaller NPAs than other PSBs but still significantly larger than private banks. SBI is notorious for its application process and for asking for a lot of proof, such as work address, ITR, salary slips, etc. Then why is it that they have the biggest NPAs when it's clearly not working?

 

[Anupama_Jha]

Every bank has set their norms to issue any loan/credit cards.

 

[card-shard]

Most private banks reported significant slippages to non-performing assets (NPA) from unsecured loans like credit cards in the July-September period (Q2FY25). SBI incurred smaller NPAs than other PSBs but still significantly larger than private banks. SBI is notorious for its application process and for asking for a lot of proof, such as work address, ITR, salary slips, etc. Then why is it that they have the biggest NPAs when it's clearly not working?

While private banks can "un-officially" hire goons to recover loans/CC dues, a PSU can't use same tricks.
That explains why they ask for way more proof (to eliminate willful defaulters as much as possible), yet if people default, PSUs have to operate within the rule-books.

 

[Abhisek]

Most private banks reported significant slippages to non-performing assets (NPA) from unsecured loans like credit cards in the July-September period (Q2FY25). SBI incurred smaller NPAs than other PSBs but still significantly larger than private banks. SBI is notorious for its application process and for asking for a lot of proof, such as work address, ITR, salary slips, etc. Then why is it that they have the biggest NPAs when it's clearly not working?

Private banks also ask for income proof. Both Axis and HDFC asked for my salary slip.