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The crisis in the banking sector is a created one, where the commercial banks have been forced to lend on a large scale to the development projects and to the corporates and which has today created an NPA of approx 8 lakh crores.

Since 2015, NPAs have been increasing and today they threaten the survival of the public sector banks. The very fact that 82% of NPA is that of corporate loans tells the root cause of this crisis which has been due to bad lending policies and inadequate due-diligence, collaterals, and recovery system.

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