Narasimham Committee suggested three – four bigger banks in India. Government carried out a massive consolidation process in 2019. Which of the following statement is true in this context?

[amp_mcq option1=”There are six merged public sector banks and six independent public sector banks in India” option2=”SBI is the largest public sector bank in India” option3=”The nationalized banks are almost wholly owned by GOI” option4=”All of the above” correct=”option4″]

The correct answer is D. All of the above.

The Narasimham Committee was set up in 1991 to review the Indian financial system. The committee recommended a number of reforms, including the consolidation of public sector banks. The government carried out a massive consolidation process in 2019, merging 10 public sector banks into four. As a result, there are now six merged public sector banks and six independent public sector banks in India. SBI is the largest public sector bank in India, with assets of over $300 billion. The nationalized banks are almost wholly owned by the Government of India.

Here is a brief explanation of each option:

  • Option A: There are six merged public sector banks and six independent public sector banks in India. This is true. The six merged public sector banks are:
    • State Bank of India (SBI)
    • Bank of Baroda (BoB)
    • Punjab National Bank (PNB)
    • Indian Bank (IB)
    • Canara Bank (CB)
    • Union Bank of India (UBI)

The six independent public sector banks are:
* Allahabad Bank (AB)
* Bank of India (BOI)
* Central Bank of India (CBI)
* Indian Overseas Bank (IOB)
* Syndicate Bank (SB)
* UCO Bank (UCB)

  • Option B: SBI is the largest public sector bank in India. This is true. SBI is the largest bank in India, with assets of over $300 billion. It is also the largest employer in India, with over 270,000 employees.

  • Option C: The nationalized banks are almost wholly owned by GOI. This is true. The nationalized banks are owned by the Government of India. The government holds a majority stake in each of the nationalized banks.

I hope this helps!

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