Which of the following is are correct w r t performance of Public sector banks in India In 2019 publ...........

Economic Affairs Types of Banks and Banking

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Which of the following is/ are correct w.r.t. performance of Public sector banks in India?

In 2019 public sector banks reported In 2019 public sector banks reported about 50 %of the NPAs of India's banking system
A plausible explanation for the NPA problems of PSBs is that in the Indian economy’s growth phase between 2004 and 2011, PSBs grew their loan portfolios but this credit growth was of suspect quality.

1 only

2 only

both 1 and 2

Neither 1 nor 2

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Explanation:

As per Economic survey 2019-20, In 2019 public sector banks reported gross and net NPAs of Rs. 7.4 lakh crore and Rs. 4.4 lakh crore respectively, amounting to about 80 %of the NPAs of India's banking system. (The gross NPAs of PSBs amount to 11.59 %of their gross advances). Moreover, PSBs account for 92.9% of the cases of fraud. A plausible explanation for the NPA problems of PSBs is that in the Indian economy’s growth phase between 2004 and 2011, PSBs grew their loan portfolios but this credit growth was of suspect quality.