KOCHI: The State Bank of Travancore management has agreed not to engage an asset recovery company (ARC) for recovering educational loan dues from defaulters in future, an employees union said on Thursday.
“The management has agreed not to engage an ARC during discussions held with us,” SBT Employees Union general secretary C.D. Josson told DC.
The public-sector bank has been facing widespread criticism against its decision to entrust Reliance Asset Reconstruction Company for recovering nearly 8,500 defaulted student loans totaling around Rs 185 crore.
The union has also decided to defer the strike it planned in protest. During the discussions, the management and the union reached a decision that all transactions connected with the educational loan recovery will be handled through the concerned branches. Repayment will be facilitated through the respective branch managers.
Opportunity to settle the loan by taking part in bank adalats and ensuring the asset recovery company not resorting to any unlawful methods are the other major decisions taken in the meeting, a release issued by SBT Employees Union said on Thursday.
