Statement : It is necessary to adopt suitable measures to prevent repetition of bad debts by learning from the past experiences of mounting non-performing assets of banks. Courses of Action : I. Before granting loan to customers their eligibility for loan should be evaluated strictly. II. To ensure the payment of instalments of loan, the work, for which loan was granted, should be supervised minutely on regular basis.

The correct answer is: Both I and II follow.

The statement says that it is necessary to adopt suitable measures to prevent repetition of bad debts by learning from the past experiences of mounting non-performing assets of banks. The courses of action are:

I. Before granting loan to customers their eligibility for loan should be evaluated strictly.

II. To ensure the payment of instalments of loan, the work, for which loan was granted, should be supervised minutely on regular basis.

Both courses of action are necessary to prevent repetition of bad debts.

Course of action I is necessary to ensure that only eligible customers are granted loans. This will reduce the risk of loans not being repaid.

Course of action II is necessary to ensure that loans are repaid on time. This can be done by monitoring the progress of the work for which the loan was granted and taking action if there are any problems.

Therefore, both courses of action are necessary to prevent repetition of bad debts.