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The profitability of public-sector banks is low due to (i) Over-cautions approach to lending (ii)…

The relatively low profitability of public-sector banks in India has historically been attributed to (i) an over-cautious or bureaucratic approach to commercial lending,…

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The profitability of public-sector banks is low due to

(i) Over-cautions approach to lending

(ii) Reserve Bank Policies

(iii) High Overhead Costs

(iv) Social-sector lending Identify the correct code :

Select one answer
Answer and explanation

Correct answer C

The relatively low profitability of public-sector banks in India has historically been attributed to (i) an over-cautious or bureaucratic approach to commercial lending, (iii) high operating and staff overhead costs, and (iv) mandatory social-sector and priority-sector lending resulting in lower yields and higher NPAs. Thus, '(i), (iii) and (iv)' is correct.

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