New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningfully complete. The Narendra Modi government has formally __ (101)__ its recapitalization exercise for public sector banks (PSBs) by__(102)__ a Rs. 88,139 crore __(103)__ through a mix of issuing special recap bonds (Rs. 80,000 crore) and direct budget support (Rs. 8,139 crore) during 2017-18. The move is well-timed. There are __ (104) __ some 40 defaulting companies whose loan accounts have been___ (105)___ for “resolution” by the RBI. The next few months should see quite a few resolution transactions — liquidation or buyout of the said entities’ assets by new investors —___(106) ___ at least in sectors such as steel. Banks should, then, be able to__ (107) __ some of these loans, albeit with “haircuts”, and make adequate ___ (108) __ for the balance uncollectable amounts. That is where recapitalization comes in; cleaning-up balance sheets by__ (109)___ loan losses requires banks to be well-capitalized. It would be wrong, however, to assume that PSBs will resume__ (110) __ in a big way.

    Find the appropriate word.

    A shares Correct Answer Incorrect Answer
    B market Correct Answer Incorrect Answer
    C distinguish Correct Answer Incorrect Answer
    D lending Correct Answer Incorrect Answer
    E borrowed Correct Answer Incorrect Answer

    Solution

    Looking at the condition of the losses, we can assume that banks cannot resume ‘lending’ in a big way. Lending – to give, accommodate

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