State Bank of Travancore comes under fire

THIRUVANANTHAPURAM: Chief Minister Oommen Chandy said that the Assembly would pass a joint resolution against SBT’s decision to grant a contract to Reliance Asset reconstruction company to recover arrears from those who had taken student loans.

“The joint resolution will be passed in this session itself,” the chief minister said in the Assembly on Monday.

Mr Chandy described SBT’s move as “highly deplorable”. He said he had already written to the prime minister and union finance minister against the move. “Our resolution will also be sent to Anil Ambani who owns this company. We will tell him not to partake of the gains from our tears,” the chief minister said.

He was responding to a submission moved on the issue by Congress member P. C. Vishnunath.

“Anil Ambani’s company will sub-contract the job to local quotation gangs,” Vishnunath said. “This will lead to a serious social problem where quotation gangs will barge into poor and middle-class homes and start using threats and violence to recover dues,” he added.

The chief minister said the non-performing assets of the bank were Rs 136 crore. “The contract which was initially given for Rs 9 crore to recover Rs 136 crore was eventually scaled up to Rs 63 crore,” he said.  

Ironically, SBT’s debt collection policy states that it is built around dignity and respect to customers. “The bank will not follow policies that are unduly coercive in recovery of dues from borrowers. The policy is built on courtesy, fair treatment and persuasion,” it states.