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

Ranga Reddy
State Bank of
Hyderabad Adilabad

Nalgonda

Karimnagar

Nizamabad
 Prakasam

Nellore

Kadapa
Syndicate Bank
Kurnool

Anantapur
 Krishna
Indian Bank
Chittoor
Guntur

West Godavari
Andhra Bank
East Godavari

Srikakulam