GANGTOK, 08 May: The State Bank of Sikkim, in a press release issued through the IPR Department, has clarified that unlike alleged, the bank was not insisting on MLA recommendations to process loan applications of government employees.
The Sikkim Pradesh Congress Committee, it may be recalled, has issued a strong statement alleging that the bank had introduced such a regime and condemning the bank and the State Government for it.
A rejoinder conveyed by the IPR Department on Saturday, states: “The State Bank of Sikkim has clarified that for the Employees Personal Loan given by the State Bank of Sikkim recommendation of the MLA is not insisted upon and the recommendation is neither pre-requisite nor sufficient condition for Employees Personal Loan from the Bank.”
“State Bank of Sikkim being a financial institution has its own norms for the grant of loans and overdrafts. All applications for the loans and overdrafts get scrutinized by the Loan Appraisal Committee headed by the Chief General Manager and each loan including Employees Personal Loan is sanctioned on the basis of merit like net take home salary of the employee, security/ guarantor extended,” it adds.
The Bank has also clarified that SBS being a public institution does receive recommendations from public representatives like area MLAs, ex-MLAs, Panchayats etc. and that such cases are processed as per the banking norms.
The employees are the one who can return the loan amount to the bank on time. For the banks the loan is an asset and if managed properly it can be beneficial for the banks. Although it is said that the bank does not insist upon the MLA recommendation but I feel the banks should have said that for employees that clause does not exist. It seems that the bank is not properly clarifying the statement. It Should have exempted the employees form that clause.
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