Current Affairs · Banking System
Given below are two statements: Assertion (A): The banking sector in India has further strengthened its balance sheets with gross NPA ratios declining to multi-decade lows of 2.2 per cent. Reason (R): The RBI's 100-bps cumulative cut in the policy repo rate during April-December 2025 has improved bank profitability and balance sheet quality. Choose the correct answer:
- 1Both A and R are true, and R is the correct explanation of A
- 2Both A and R are true, but R is NOT the correct explanation of A✓
- 3A is true but R is false
- 4A is false but R is true
Correct answer
Both A and R are true, but R is NOT the correct explanation of A
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