What is/are the reasons for low profitability and substantial value erosion to the principal shareholder-the government?
(A) The continuous deterioration in asset quality.
(B) Increase in non-performing assets of PSBs.
Solution In the passage, it is stated that “The continuous deterioration in asset quality, especially at the public sector banks (PSBs), has led to low profitability and substantial value erosion to the principal shareholder — the government.”. So, both sentences are correct.
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