Q96.
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 in 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?
Answer
B
Explanation
Statement 1 is not correct: Capital infusion into public sector banks has NOT steadily increased in the last decade - it has been variable. Statement 2 is correct: The merger of SBI associated banks under Section 35 of the State Bank of India Act, 1955 was affected, creating a stronger merged entity with improved operational efficiency, economies of scale, and improved risk management.