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IBA plans to set up framework around April to address issues related with consortium lending to industry
FirstpostAnd to address these issues, there are two things which are happening, one is at the IBA level and another by Reserve Bank of India to develop secondary market for loan to corporates. New Delhi: The Indian Banks’ Association, headed by SBI Chairman Rajnish Kumar, will come out with a framework around April to address issues related with consortium lending to industry and finding solution for alternate sources of borrowing for them. The industry faces problem, particularly in consortium and multiple lending and if even a small NOC is required, the borrower keeps going around the banks, so it may take six months or one year or even one-and-a-half years to get the funding, Kumar said at an industry event. “With what the decision IBA has taken along with the plan to develop secondary market for corporate loans, a market mechanism will be created for trading of loans as well as the availability of credit and timely decision making.” Thus, discipline will come among the bankers as well as the borrowing companies," he said.
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