Correct answer: (b) 2 only
Explanation
- A
1 only
(a) 1 only. Capital infusion into public sector banks did not rise steadily through the decade before 2018; it came in bunches around stress episodes. Statement 1 is therefore false. This option is not the key.
- B
2 only
(b) 2 only. The five associate banks and Bharatiya Mahila Bank were merged into the State Bank of India in 2017 as a consolidation step. Statement 2 is correct; statement 1 is not. This option is the official key.
- C
Both 1 and 2
(c) Both 1 and 2. The “steadily increased” claim fails, so both cannot be right. This option is not the key.
- D
Neither 1 nor 2
(d) Neither 1 nor 2. Statement 2 is true, so “neither” fails. This option is not the key.
Summary. Official key is (b) 2 only. PSB recapitalisation in the years before the exam was lumpy, not a steady climb, so statement 1 is wrong. The merger of SBI’s associate banks with the parent was completed in 2017 and was a major governance/consolidation move. Only statement 2 therefore stands. The WRAP key is (b).
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.