State Bank of India to bear legal costs for retired staff
While legal cost of loan recovery is huge, what is bigger is the fear of having to bear it after retirement. State Bank of India as part of its recovery measures has decided to fund the legal costs even after retirement for its officers, in a signal to drive recovery. "When decisions have been taken while the employee is serving the bank ... then we are not going to abandon our employees even if it is post retirement," Rajnish Kumar, MD, SBI told ET. "We will give a certain amount of comfort and protection to our people against any sort of harassment." As part of the policy if retired State Bank employees have acted in good faith and they continue to fight legal battles against defaulters post retirement, the bank will bear all costs including legal and travel expenses. Kumar explained that the whenever an account goes bad the banks internal processes determine staff accountability and define whether a decision is bonafide or not.
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