When NPA goes beyond control of the bank, they are written off or sold to other companies. When capital adequacy ratio is affected adversely, government of India infuses fresh capital or FIs like LIC are motivated to purchase share of the bank to increase tier I capital. Ultimately entire burden goes on the shoulder of common men in way of tax or curtailment in subsidy to farmers.

Finance to relatives of bank employees is known to all , but none in the country know how much of bank's total lending is given to relative of Ministers , central or state level ministers, or to relative to top ranked politicians. And how much of such loan is bad but no action has been initiated by bank in fear of repercussion. Lacs of cases are pending in courts of law for decades together against powerful persons but no effective action has ever been taken .

http://jaindanendra.blogspot.in/2012/02/class-banking-or-social-banking.html