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,…
Choose your answer
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 :
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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UGC NET Commerce