Reading Comprehension Passage: 74 | 100 RC`s for Government Exams Preparation - Bank Exams PDF Download

Refer to:
‘According to a joint study by Assocham and Crisil, gross NPAs in the banking system are estimated to increase to Rs 9.5 lakh crore by March 2018, from Rs 8 lakh crore a year earlier.’
Statement I is correct.
‘SBI, of course, is not the only lender to have had its assets forcibly reclassified by the RBI.’
Statement II is incorrect.
‘On treasury operations, SBI recorded a loss of about Rs 3,255 crore, versus a profit of about Rs 4,776 crore in the comparable period.’
Statement III is incorrect.
Hence, option B is correct.

Refer to: ‘RBI in the coming months should continue to push banks, both public and private, to promptly recognise the stressed loans on their portfolios. Incidentally, Prime Minister Narendra Modi last week laid the blame for bad loans on the previous government. While it is quite true that the present bad loans crisis has been a long time in the making, the problem of lax corporate governance, which has plagued public sector banks and contributed in no small measure to the present crisis, still remains largely unaddressed by the government. Even the latest plan to recapitalise public sector banks may achieve little more than giving some temporary relief to lenders for the sake of reviving credit growth.’
As per the highlighted fragments above,
statements I and II are correct.
Statement III would not correct the situation and would only provide temporary relief (as stated in the highlighted fragment)
Hence, option C is correct.

Refer to: ‘The bank revealed that an audit by the Reserve Bank of India showed a divergence of Rs 23,239 crore in the way it classified assets at the end of the last financial year, which led to increase in provisions in the last quarter. Most of these reclassified assets are linked to troubled projects in sectors including power and telecom.’
As per the highlighted fragment above, option A correctly states the reason for the sudden increase in provisioning by SBI.
Hence, option A is correct.

Refer to: ‘While the figures are not strictly comparable after SBI completed merger with its associates, the loss was the result of both a massive increase in provisions to account for bad loans and a substantial amount of mark-to-market losses on its holding of government bonds.’
Statement III has not been mentioned in the passage.
Both statements I and II are correct as per the passage.
Hence, option B is correct.

Refer to: ‘If the financial performance of India’s largest lender is anything to go by, an end to the severe bad loans crisis may be much farther beyond the horizon than previously anticipated. For the first time in almost 19 years, the State Bank of India reported a quarterly loss of Rs 2,416 crore for the three months ended December, compared with a net profit of Rs 2,610 crore in the year-earlier period.’
As per the highlighted fragment, only statement C matches with what is mentioned in the passage. The other options are either incorrect or not mentioned.
Hence, option C is correct.