The Indian Banks’ Association (IBA) is preparing a framework to take care of issues relating to consortium lending to industry and finding a solution for alternate sources of borrowing for them. IBA chairman Rajnish Kumar said industries face problems with regard to borrowing from consortiums and in multiple lending and the whole process is laborious and time consuming. Speaking at an event in Mumbai, he said even in the case of obtaining a NOC, it will consume time and the whole plan goes for a toss. Hence, there has to be a system in the decision making where these decisions can be taken on time, he said. He said IBA will set up a working group that will examine all these issues around consortium and multiple bank lending and see to it that standardization happens, and it becomes hassle-free for the borrowers. IBA will also try to arrange that if there are some dissenting lenders, there can be an exit route for them. This is expected to happen by April 2020, he said.
