Letter to BS: Lethargic banks also reason for failure of 'lead bank' scheme

This refers to “Revamping of lead bank scheme” (June 4). It is a fact that the purpose of the scheme could not be achieved due to several factors, including the lethargic attitude of the banks. Although government agencies have a major role in the formulation of schemes, identification of borrowers and assisting in recovery are front-end and back-end actions. Banks as a habit, were treating the scheme as one of low priority, mainly due to the lack of machinery for follow-up and the high level of non-performing assets from such lending. 

There was an instance during the ‘90s, where a Tamil