Prelims 2018 · Economy · Question 96
With reference to the governance of public sector banking in India, consider the following statements:<br/>1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.<br/>2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been effected.<br/><br/>Which of the statements given above is/are correct?
Answer
2 only
1. Incorrect. Government capital infusion into PSBs has not steadily increased over the last decade; it varied year to year and even declined in some years.
2. Correct. The associate banks of SBI were merged with SBI to improve efficiency and strengthen public sector banking governance.
Therefore, only statement 2 is correct.