(A) Recovery was given inadequate attention and consequently some bank branches regularly incurred heavy losses and their parent bodies had to bale them out.

(B) As a result, banks indulged in extensive lending to borrowers who had little or no potential to make repayments.

(C) To fulfil the social objectives laid down by the masters of nationalisation, banks were asked to lend to identified priority sectors.

(D) 1992-93 results showed that the loss making branches of public sector banks increased from 10000 to 13000 and the quantum of losses showed at Rs.3369 crores.