Multiple choice

As per a list published by Ministry of Finance in February 2005, 'stronger banks' can enter in new areas of business and in foreign markets without prior-permission from Govt. of India. What are these 'stronger banks'?

  1. Banks that have Capital Adequacy Ratio of 9% or above
  2. Banks that have non-performing assets below 4%
  3. Banks that have net owned funds of Rs. 300 crore or more
  4. Banks that have earned net profit in last three consecutive years

  1. 1

  2. 1 and 2

  3. 1, 2 and 3

  4. 1, 2, 3 and 4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The criteria for 'stronger banks' included a CAR of 9% or above, NPAs below 4%, net owned funds of Rs. 300 crore or more, and net profit in the last three consecutive years.

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