2022 · Q72
With reference to Indian economy, the term ‘bad bank’, frequently mentioned in news, refers to
current-eventseconomy-business-news
- Aan asset reconstruction company
- Ban asset management company
- Ca bank with huge nonperforming assets
- Da bank that has become insolvent
Explanation
In the Indian context, the 'bad bank' refers to the National Asset Reconstruction Company Ltd. (NARCL) — an asset reconstruction company set up to acquire and resolve banks' stressed/non-performing assets. It is not an asset management company in the mutual-fund sense (option B), merely a bank with NPAs (option C), or an insolvent bank (option D). Hence option A.