Hyderabad, May 29 (KNN) The State Bank of Hyderabad has been named as the lead Bank by RBI for the newly created state of Telangana. India's 29th State, Telangana, will come into being on June-2.

“It has been decided to assign the SLBC (State Level Bankers’ Committee) convenorship of Telangana State to State Bank of Hyderabad. The SLBC responsibility for the State of Andhra Pradesh (after carving out Telangana) has been retained with Andhra Bank,” RBI has said in a notification.

The lead bank is given the responsibility of ensuring adequate credit disbursal in a state.  Each state is given a lead bank which works in a consortium format for credit disbursal to the state.

SLBC, set up as per the Lead Bank Scheme of the Reserve Bank of India, is the highest body of bankers in the State.  SLBC takes the lead in initiating, streamlining and accelerating the process of development in close co-ordination with various government departments, RBI, Nabard and other developmental agencies.

The RBI said that the SLBC responsibility for the State of Andhra Pradesh (after carving out Telangana) has been retained with Andhra Bank. (KNN/SD)