The finance ministry has recently approved capital infusion of Rs 11,336 crores in how many PSBs?

Appeared in: NCL (MP) Nursing Officer - 2019

Explanation

The question asks for the number of Public Sector Banks (PSBs) that received a specific capital infusion of Rs 11,336 crore from the Finance Ministry.
This particular financial event, which took place in 2018, involved the government providing funds to a specific set of banks to improve their capital adequacy.
The correct number of banks included in this tranche of capital infusion was five.
The banks were Punjab National Bank, Allahabad Bank, Indian Overseas Bank, Andhra Bank, and Corporation Bank.

Option B: The capital infusion of Rs 11,336 crore was specifically allocated to a group of five banks, not six.
Option C: The number of banks in this specific financial package was five. Seven is an incorrect count for this event.
Option D: Eight is not the correct number of banks that received funds in this particular Rs 11,336 crore infusion plan.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Government's fiscal policy and recapitalization of Public Sector Banks (PSBs) as background academic context rather than a clinical decision trigger.
Economic Stability: Recapitalizing PSBs is crucial for maintaining the stability of the country's financial system. Healthy banks can withstand economic shocks and prevent financial crises.
Credit Growth: Well-capitalized banks are able to increase their lending to various sectors like agriculture, infrastructure, and small businesses, which fuels economic growth and job creation.
Regulatory Compliance: This infusion helps banks meet the mandatory Basel III norms, which are international regulatory standards for bank capital adequacy. Compliance enhances the credibility and resilience of the banking sector.

How to Approach the Question

This is a factual recall question based on a specific event in current affairs/economics.
First, identify the key data points in the question: the entity (Finance Ministry), the action (capital infusion), the amount (Rs 11,336 crores), and the recipients (PSBs).
The question asks for a specific number ('how many').
Recall or search for the specific event related to this capital infusion amount.
Match the recalled fact (five banks) with the given options.
Select the option that corresponds to the correct number.

Concept Tested & Keywords

Concept Tested: Government's fiscal policy and recapitalization of Public Sector Banks (PSBs).
Stem keywords: finance ministry, capital infusion, Rs 11,336 crores, PSBs
Lead-in keywords: how many

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