With reference to Joydeep Ghosh’s report, “Capital infusion is not a solution but is unavoidable: Usha Thorat” (October 27), bank nationalisation was one of the steps taken for financial inclusion. It failed, as banks granted huge loans to influential entities, institutions and sectors through faulty appraisal and poor follow-up. Such loans are nothing but bank finance to rudimentary non-performing assets (NPA). Other reasons are improper identification of big borrowers, faulty formulation of projects, unscientific appraisal methods, influential sanctions, poor or no follow-up and no evaluation resulting in high NPAs.
At this juncture banks finance twice, first before an account becomes an
