The State Bank of India, the country's biggest lender, will name and shame 'wilful' defaulters and put their pictures in newspapers to get them to pay up, a leading business daily said on Saturday.
"The fresh approach will ruffle a few feathers," the paper quoted a bank executive as saying.
A 'wilful defaulter' is one who does not meet payment obligations even when he or she has the funds.
Bad loans in the country could jump to as much as 5.8% of the total within two years in a severe risk scenario, up from 2.8 percent in September, according to an RBI report.
The non-performing loan ratio for Indian banks was 2.3% in the last fiscal year.