With reference to the governance of public sector banking in India, consider the following statements

2018

With reference to the governance of public sector banking in India, consider the following statements:

1.Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
2.To put the public sector banks order, the merger of associate banks with the parent State Bank of India has been affected
Which of the statements given above is/are correct?

(a)

1 only

(b)

2 only

(c)

Both 1 and 2

(d)

Neither 1 nor 2

Answer:

(b)

Core Books/NCERT

Explanation

S1: Capital infusion has not been steady, therefore statement 1 is wrong. https://www.livemint.com/Industry/3qTu3MjDuTCrPIpqKnGcrO/The-whys-and-hows-of-public-sector-bank-recapitalisation.html One of the desired objectives of consolidation of banks is the streamlining of banking operations and reduce their NPA burden. Thus, Statement 2 is correct.