Kerala opposes bank's decision in education loan segment

The Kerala government today flayed the decision of State Bank of Travancore to entrust the recovery proceedings of bad loans in education segment to Reliance Assets and Reconstruction Company, saying that it was contrary to the spirit and interest of bank nationalisation.
Replying to a submission on the matter in the assembly, Chief Minister Oommen Chandy objected to the public sector bank's decision and expressed hope that the Centre would also oppose the decision.
The matter would be brought to the notice of Prime Minster Narendra Modi and Union Finance Minister Arun Jaitley, he said.
Chandy said the SBT's decision went totally against the spirit and interest of the concept of bank nationalisation. With the co-operation of LDF opposition, a resolution protesting the decision would be passed in the assembly and sent to the Centre, he said.

SBT has given contract to Reliance to recover the bad loans in education segment that comes to around Rs 100 crore in the state, Chandy said.
Moving the submission, P C Vishunath (Cong) said the company would get about Rs 50 crore as commission from SBT for recovering the bad loans.
The company would employ sub-agents for the recovery leading to harassment of the hapless parents and students who had taken education loans, he said.