Money & Banking
Banks: Penalty for failing to pass education loans

From now on, education loan applicants will now why their applications got rejected

To make sure that education loans are not denied to eligible students, finance minister P Chidambaram has announced that bank officers rejecting applications without sufficient reasons would be penalised.  
“No application should be turned down by the officer who is receiving it. It can only be turned down by one level higher. They will now penalise branch managers who turn down, say, 5/10 deserving applications which are overturned by a superior officer,” Mr Chidambaram told reporters. The Indian Bank Association (IBA) would come out with a new circular on education loans in the next few days, he said.  
“Bank loan is the right of every student who meets the parameters. No bank can turn away an applicant. Every application for a bank loan must be received and acknowledged and every deserving candidate must be given the loan if the student meets the parameters,” Mr Chidambaram said.
 Education loans are granted to Indian nationals for pursuing higher studies in India or abroad. As per its website, the State Bank of India (SBI) gives loans up to Rs10 lakh for studies in India and Rs30 lakh for education abroad. Such loans are usually extended to candidates pursuing professional courses from approved universities or from autonomous institutions like IITs and IIMs, among others.



Ajit Misquitta

5 years ago

Another new scam being perpetrated by the HDFC bank among others is to force loan takers to purchase an insurance policy at their own cost even though they may have other insurances before giving out personal loans. This practice smells of misselling and I believe the RBI should initiate an investigation and refund all such payments taken under this ruse to unsuspecting customers.

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Infosys to buy Lodestone for about Rs1,932 crore

The acquisition of management consultant Lodestone Holdings will add more than 200 clients across industries, including manufacturing, automotive and life sciences, to the Infosys pool of over 700 clients

New Delhi: Infosys Technologies on Monday said it will acquire global management consultancy firm Lodestone Holding for 330 million Swiss Francs or about Rs1,932 crore in cash, reports PTI.


The transaction is expected to close by the end of October 2012, subject to customary closing conditions.


Upon completion, the acquisition of Lodestone will strengthen Infosys Consulting and Systems Integration (C&SI) capabilities, by bringing more than 850 employees, including 750 experienced SAP consultants to the company, Infosys said in a statement.


The acquisition will also add more than 200 clients across industries, including manufacturing, automotive and life sciences, to the Infosys pool of over 700 clients.


"A key plank of our Infosys 3.0 strategy is to expand our C&SI. This acquisition fits perfectly into that strategy.


Lodestone and Infosys share a culture of unwavering focus on nurturing and maintaining client trust," Infosys CEO and Managing Director SD Shibulal said.


Headquartered in Zurich, Lodestone advises international companies on strategy and process optimisation, and provides business transformation solutions enabled by SAP's enterprise solutions.


Post-acquisition, the combined consulting practice focussing on SAP programs will deliver revenues of more than USD 1 billion, the statement added.


Infosys Consulting & Systems Integration business, today has more than 30,000 consultants across 10 industry verticals and accounts for 31% of the company's revenue.


The combination of the breadth of capabilities delivered by Infosys and Lodestone's experience of driving transformational change, is expected to provide clients across the two companies, a world-class team to accelerate transformation and innovation led growth, it said.


The Lodestone acquisition will also significantly enhance its global presence, particularly in continental Europe and emerging markets like Latin America and Asia Pacific.


"We are eager to leverage the widely acknowledged global reach of Infosys and its leadership in the consulting and technology arena to deliver greater value to our clients. This will enhance the momentum that Lodestone is already witnessing in the marketplace," Lodestone Chairman and CEO Ronald Hafnerv said.


Linklaters LLP is acting as the legal advisor to Infosys, while UBS AG is acting as financial advisor and Baker & McKenzie acted as legal advisor to Lodestone.


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