Letter to BS: Infra cos plan to cut lender consortium sizes is a good move

This refers to “Infrastructure companies plan to cut lender consortium sizes” (March 13). A large consortium of lenders leads to absence of purposeful credit decision making and delayed implementation, making this collective gathering more of an informal group discussion. There is no control over credit disbursement as each lender is bound by its own policy and there is no single lender accountability. The consortium thus becomes more of a credit umbrella. This is true especially when the business levels of some consortium members are not commensurate with the quantum of their credit exposure to the corporate borrower. Consortium lending involving