Lead Bank Scheme (lbs)

Lead Bank Scheme (LBS) • The National Credit Council has appointed a study group in 1969, under the Chairmanship of Prof.D.R.Gadgil to suggest an appropriate organisational framework for effective implementation of social objectives.

• This group has recommended “Area Approach” for the development of financial structure through intensive efforts.

• In the same year, RBI appointed Sri SKF Nariman committee to study the recommendations of Prof.Gadgil. • This committee endorsed the views and recommended formulation of “ Lead Bank Scheme”

• The RBI accepted the recommendations and the Lead Bank Scheme came into existence from the year 1969. • Under the scheme, specific districts are allotted to each commercial bank.

Function s Survey the potential areas for development of banking the in the district. Identifying the business establishments and financing them so as to enable them to raise their resources.

Examining the marketing facilities available for the disposal of agricultural and industrial commodities and linking credit with marketing. Assisting other lending agencies working in the district. Developing contacts and maintaining liaison with the

Preparing District Credit Plans well ahead of the crop season with the help of Technical Committee. The Lead Bank is expected to take the lead role in identifying the potential areas for banking and banking development and expanding credit facilities in the Dt.

• The lead bank acts as a consortium leader for coordinating the efforts of all financing institutions operating in the District.

• Under the scheme in each district one of the commercial bank functions as a lead bank for providing branch network and credit under different areas of priority sector. • LBS covered all the 472 Dts. in the country.

Lead Banks in A.P. Name of the Bank

Lead District Vishakhapatnam Vijayanagaram

State Bank of India

Medak Warangal Mehabubnagar and Khammam

Hyderabad State Bank of Hyderabad

Ranga Reddy Adilabad Nalgonda Karimnagar Nizamabad

Prakasam Nellore

Syndicate Bank

Kadapa Kurnool Anantapur

Krishna Indian Bank

Chittoor Guntur

Andhra Bank

West Godavari East Godavari Srikakulam