Which of the following banks have entered capital market in the wake o...
The correct answer is option 'D', which states that all of the above banks, namely State Bank of India, Oriental Bank of Commerce, and Bank of India, have entered the capital market in the wake of Narasimham Committee recommendations.
The Narasimham Committee was set up in 1991 by the Government of India to examine and suggest measures for the reform and restructuring of the Indian banking system. The committee was headed by M. Narasimham, a former governor of the Reserve Bank of India (RBI).
The committee made several recommendations to improve the functioning and efficiency of banks, including the entry of banks into the capital market. This recommendation was aimed at increasing the transparency and accountability of banks, as well as to enhance their access to capital for growth and expansion.
State Bank of India (SBI), the largest public sector bank in India, entered the capital market in 1993. It issued shares to the public through an initial public offering (IPO), thereby raising capital from the market. This move allowed SBI to strengthen its capital base and improve its ability to meet regulatory requirements and support its lending activities.
Oriental Bank of Commerce (OBC), another public sector bank in India, also entered the capital market in 1997. It raised capital through an IPO, which helped the bank to enhance its capital adequacy, expand its operations, and support its lending activities.
Bank of India (BOI), a public sector bank, also followed the Narasimham Committee recommendations and entered the capital market. It raised capital through an IPO in 1997, which enabled the bank to strengthen its capital base and enhance its lending capacity.
In summary, all of the above-mentioned banks, State Bank of India, Oriental Bank of Commerce, and Bank of India, entered the capital market in the wake of Narasimham Committee recommendations. This move allowed these banks to strengthen their capital base, improve their ability to meet regulatory requirements, and support their lending activities.
Which of the following banks have entered capital market in the wake o...
The correct answer is D) All of the above. All three banks mentioned, State Bank of India (SBI), Oriental Bank of Commerce (OBC), and Bank of India (BOI), have entered the capital market in response to the recommendations made by the Narasimham Committee. The Narasimham Committee, formed in 1991 under the chairmanship of M. Narasimham, made several recommendations to reform the Indian banking sector. One of the key recommendations was for public sector banks to raise capital from the market to strengthen their financial position. Following these recommendations, SBI, OBC, and BOI entered the capital market by issuing shares to raise additional funds and enhance their capital base.