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State-run Canara Bank has come up with a ‘one-time settlement’ to help student borrowers reschedule their education loan.
The bank’s Chairman and Managing Director R. K. Dubey told newspersons here on Tuesday that while the bank is interested in lending more, lest a student is deprived of education (for want of funds), poor recovery has been a matter of concern.
‘Nevertheless, we are willing to reach out to all the parents to understand their difficulty in repaying their dues. We are willing to extend the loan tenure and facilitate easy repayment,’ he added.
Canara Bank’s educational loan NPA (non-performing asset) is around 9 per cent, Dubey said.
The demand for student loans is said to be high in States such as Tamil Nadu and Kerala compared with those in the North.
While the bank’s total educational loan exposure is around Rs 4,200 crore, the quantum advanced in Tamil Nadu is around Rs 430 crore, and in Kerala, marginally higher.
But over Rs 100 crore of the Rs 430 crore student loan given in Tamil Nadu has been categorised as NPAs. “This is quite high and is a cause of concern for us,” he added.
The bank, meanwhile, is getting aggressive on education loans.
“We will not shy away. Instead, we will look to advance more and be aggressive on the recovery front too.
“By rescheduling the loan and facilitating easy repayment of dues, we are confident of bringing the NPA down to 2 per cent in 18 months time,’ the bank’s chief said.
Asked if he expected a loan waiver, Dubey said, ‘No, not on education loan.’
Canara Bank is also looking to boost lending to micro industries and the retail segment.
revathy.lakshminarasimhan@thehindu.co.in
Source: thehindubusinessline
The bank’s Chairman and Managing Director R. K. Dubey told newspersons here on Tuesday that while the bank is interested in lending more, lest a student is deprived of education (for want of funds), poor recovery has been a matter of concern.
‘Nevertheless, we are willing to reach out to all the parents to understand their difficulty in repaying their dues. We are willing to extend the loan tenure and facilitate easy repayment,’ he added.
Canara Bank’s educational loan NPA (non-performing asset) is around 9 per cent, Dubey said.
The demand for student loans is said to be high in States such as Tamil Nadu and Kerala compared with those in the North.
While the bank’s total educational loan exposure is around Rs 4,200 crore, the quantum advanced in Tamil Nadu is around Rs 430 crore, and in Kerala, marginally higher.
But over Rs 100 crore of the Rs 430 crore student loan given in Tamil Nadu has been categorised as NPAs. “This is quite high and is a cause of concern for us,” he added.
The bank, meanwhile, is getting aggressive on education loans.
“We will not shy away. Instead, we will look to advance more and be aggressive on the recovery front too.
“By rescheduling the loan and facilitating easy repayment of dues, we are confident of bringing the NPA down to 2 per cent in 18 months time,’ the bank’s chief said.
Asked if he expected a loan waiver, Dubey said, ‘No, not on education loan.’
Canara Bank is also looking to boost lending to micro industries and the retail segment.
revathy.lakshminarasimhan@thehindu.co.in
Source: thehindubusinessline
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