ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Calf in Need of Fathering

September 23, 1978 20 to 25 per cent of the increase would have to be deducted on account of dues from sick accounts. FROM the standpoint of the advocate of public participation in the capital of the nationalised banks, therefore, there are many flies in the ointment. As it is, the banks' operations have been strained and profits drained since nationalisation. The banks subsidise agriculture, that is big farmers and thereby also the big industries which supply their input requirements, from transmission cables to pumpsets and fertilisers to storage godowns. They provide food credit at below commercial interest so that the State can protect surplus farmers of grain. They .ance the state electricity boards' losses stemming from under-recovery of revenue from energy sale. They subsidise small-scale industry which is ancillary to big industry, so that the latter siphons off the subsidy. Banks have also to nurse sick units, small and large, including those belonging to big houses, and cover up cash drained away by dishonest managements. They have even to finance provident fund dues. Banking has thus come to be the focal power of a massive fraud, in a manner of speaking.

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