Steps for forming Kerala bank on, says FM

Finance Minister T M Thomas Isaac today said that the expert committee formed to study various aspects of the proposed Kerala Cooperative Bank would submit its report in three days.
"Government will take necessary practical steps on the recommendations of the committee's report to form the Kerala Cooperative Bank, an ambitious project of the ruling CPI(M) led LDF government," he said during question hour.
He said the objective was to strengthen the cooperative sector, especially in the wake of state public sector bank State Bank of Travancore merging with State Bank of India.
The proposal was to form a Kerala Bank by merging district co-operative banks with state Co-operative banks, converting the present three-tie cooperative into two tier system, Isaac said.

He said the state government would monitor loans and advances made by SBI in Kerala after the merger and take it up in the state-level bankers committee if there was any reduction in it.
The Finance Minister also criticised the recent hike in service charges by SBI and said it has dented that bank's image among the people.
'There is no justification for imposing a penalty on people's earnings', Isaac said.
The State labour department would also look into the problems faced by more than 3,000 daily contract workers whose wages had been cut following the merger, he added.