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IN A TIGHT CORNER: The scene outside an Indian Overseas Bank branch in Kochi. IOB branches are functioning under police protection in the State as they face the wrath of students' unions following the death of an engineering student, Rajani Anand, who committed suicide in Thiruvananthapuram after an IOB branch allegedly denied her an education loan. - K.K. Mustafah

Thiruvananthapuram , July 27

A SECTION of the bank staff in the State will stay away from work on Wednesday in protest against the continuing attack on banks in the State in the wake of the suicide by an engineering college student in Thiruvananthapuram.

Mr K.V. Acharya, Joint General Secretary of All India Bank Officers' Confederation, told newspersons on Tuesday that officers belonging to the confederation would go on mass leave on Wednesday.

However, the All Kerala Bank Employees' Federation said in a statement that employees belonging to it would not participate.

Mr Acharya said that it was unfortunate that the agitation by student and other youth organisations in connection with the suicide of Rajani S. Anand, a student of a self-financing college at Adoor, had turned into attacks on banks.

He said that the education policy of the State Government, the profit motive of the managements of the self-financing colleges and the vague guidelines of the Reserve Bank of India (RBI) had created such a situation in Kerala.

The RBI guidelines, which state that education loans up to Rs 4 lakh need not have collateral security, also enjoin upon the banks to look into the income profile of the parents and ensure that the course proposed to be pursued by the student will lead to employment.

The repayment of a principal amount of Rs 4 lakh and the accumulated interest after the completion of the course would work out to around Rs 11,675 per month.

This would mean that the beneficiary should draw a monthly salary of a minimum of Rs 20,000 to be able to repay the loans.

More Stories on : Trade & Labour Unions | Kerala

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