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Which of the following is NOT a correct statement about bank mergers?

medium Q10 of 15
Banking Awareness - Banking Acts, Reforms & Risk Management
Which of the following is NOT a correct statement about bank mergers?
AThey are aimed at efficiency improvement
BThey may face integration challenges
CThey reduce the number of banks
DThey automatically eliminate all NPAs
Step-by-Step Solution

  1. Step 1: Review effects of mergers

    Mergers improve structure, not magically solve problems.

  2. Step 2: Identify incorrect assumption

    NPAs do not disappear automatically.

  3. Final Answer:

    They automatically eliminate all NPAs → Option D

  4. Quick Check:

    Merger ≠ instant NPA solution ✅
Quick Trick: Structural reform, not magic fix.
Common Mistakes:
MISTAKES
  • Overestimating immediate impact of mergers.
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