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?
A
1 only
B
2 only
Correct Answer
C
Both 1 and 2
D
Neither 1 nor 2
Explanation
Statement 1 is incorrect because capital infusion into public sector banks has fluctuated and not steadily increased every year over the last decade. Statement 2 is correct as the government merged associate banks and the Bharatiya Mahila Bank with the State Bank of India to consolidate and strengthen the public sector banking system.
Banking and Financial SectorPublic Sector Banks ReformsPublic Sector BanksCapital InfusionBank MergersState Bank of IndiaBanking Governance