Explanation:

From the given sentence, we can infer that the bank holding company was given by the Nayak Committee along with others. In the context of the sentence, the words that are suitable for the first blank are “suggested”, “recommended” and “forwarded”. Hence options D and E are eliminated.

The clue to the second blank lies in the information that the government’s shareholding must be brought down to “below 52 percent”. The only word that aptly conveys this meaning is “divesting”, i.e., ‘reducing the investment’ in the company. "Investing" or "controlling" does not indicate this meaning and this eliminates options A and C as well.

Option B is hence the correct answer.