Shrinking the size of lenders' consortium might be helpful, say infra firms

There is a directive to PSBs to reduce the number of banks in the consortium that lend to projects

Echoing the views of top banks, infrastructure companies say shrinking the size of the consortium of lenders they do business with might be helpful. The companies hope this will lead to quicker decisions. It would also mean fewer banks, with larger exposure to some accounts.

For instance, as part of its long-term strategy, Hindustan Construction Company (HCC) is looking to shrink the size of its consortium of lenders, said Arjun Dhawan, whole-time director and group chief executive officer.In its 2017-18 (FY18) annual report, the company listed 25 banks and financial institutions with which it did business. Till recently, infrastructure firms working