2 Aug 2013
Chairman
State Bank of India
Mumbai
cc to:
Deputy Governor, RBI, Mumbai
Mr Thamarai Selvan MP
Mr Thol Thirumavalavan MP
Mr Ramasubbu MP
Mr Arjun Ram Meghwal MP
dear Sir
We have already reported to you about the shaming of education loan defaulters at SBI, Bodinayakanur Branch. Subsequent to our reporting, Deccan Chronicle has carried a story on this issue. Even SBI Senior officials defended their action.
Even many of the Tamil Nadu TV channels have started carrying panel discussions on SBI's anti-poor attitude. When Education loan forms only 1% of the bank credit, why SBI is shaming only education loan defaulters. Whey the defaulters of other 99% are not displayed. This shows SBI in poor light adopting anti-poor and anti-students policy.
Today Communist Party of India (CPI) has also issued a press statement condemning SBI's anti-poor attitude.
Mr Thamarai Selvan and Mr Thol Thirumavalavan, Members of Parliament are also taking up this issue with Hon'ble Finance Minister directly.
IANS, India's leading wire agency has carried a story now. This story has been picked by many websites now. Please go through this link and story.
Srinivasan
Convenor
Education Loan Task Force
ELTF www.eltf.in
Please read the IANS story picked by Business standard
http://www.business-standard.com/article/news-ians/act-against-sbi-for-shaming-loan-defaulting-students-cpi-113080200915_1.html
IANS | Chennai August 2, 2013 Last Updated at 17:50 IST
Act against SBI for shaming loan-defaulting students: CPI
In a statement issued here, the state CPI said: "Indian industrialists get about Rs.5 trillion in annual tax concessions. Big industrial groups do not repay loans and these are written off as bad debts. Not worrying about these, the central government and the SBI are shaming students who had availed education loan. It is highly condemnable."
The Bodinayakanur branch of SBI in Theni district, around 515 km from here, displayed photos of students and their parents for defaulting on their educational loans.
"Is the SBI willing to display the pictures of its corporate defaulters? Does it have the guts to publish the names of its top 100 defaulters? SBI shamelessly quote the Banking Regulation Act for not disclosing the big corporate defaulters. But in the case of poor students, it feels the banking law does not apply," Education Loan Task Force (ELTF) Convenor K. Srinivasan told IANS.
ELTF guides students on rules and regulations governing the education loans offered by nationalised banks and it also insists students repay their dues.
According to Srinivasan, banks should meet the student borrowers at least once a year which will have a positive effect on the business in the long run.
"Bank officials try to create a wrong picture that education loan portfolio is default-prone. They are reluctant to handle this portfolio. It is really not so since the ticket size is very small compared with the loans and defaults of big industries," Srinivasan said.
He said as per the scheme, loan repayment period could be as long as 10 years. The loan becomes due one year after completion of the course or six months after the student gets a job, whichever is earlier.
"The bankers are insensitive and if any student takes some drastic action after being shamed, will SBI take responsibility?" Srinivasan asked.
SBI officials were not available for comments.
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