Letter to BS: Bank recapitalisation no different from farm loan waiver

The recapitalisation is done by equity participation from where the government gets dividend

I refer to the article in your newspaper on December 24, “Bank recap no different from farm loan waiver” by Tamal Bandyopadhyay. He has concluded that “with general elections round the corner, there will be no end to the flow of public money down the drain — both for farm loan waivers and for PSB recapitalisation”. So he considers bank recap as a populist expenditure which really is nothing but money going down the drain. I am writing to say that nothing can be further from truth than the view that recapitalisation is pouring money down the drain.