question_answer

Direction: 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 meaningful. The National Company Law Tribunal (NCLT) has reportedly asked why the RBI needs to issue directions to banks to initiate bankruptcy (151) against defaulters. Credit-rating agency Crisil's latest report on bad loans explains why. It estimates that banks will have to take a haircut of about 60%, worth Rs. 2.4 lakh crore, to (152) the top 50 stressed assets adding up to Rs. 4 lakh crore. Bankers would be (153) to go ahead with haircuts unless they are assured against sleuths of the Central Bureau of Investigation and the Enforcement Directorate charging them with causing loss to the exchequer. Without such guarantee against present managers having to 'face the (154) for past decisions, they would sit tight. That is why the RBI has to step in. Banks will need to make higher provisioning for bad loans that are (155) to bankruptcy courts - 100% in case of liquidation. Setting (156) resources to cover losses will be tough at a time when banks, for the most part, are making losses. The RBPs latest financial stability report shows that the banking stability indicator worsened between September 2016 and March 2017 due to deterioration in asset quality and profitability. Clearly, banks need extra capital to (157) the impact of a haircut or higher provisioning until asset reconstruction. The government can directly (158) capital into banks. Alternatively, it can create a holding company for state- owned banks that can (159) capital to (160) resources to capitalize banks. Another option is for the government to dilute its stake in banks and allow them to raise capital from the markets,

A)  caring

B) aggressive

C) rash

D) loath

E) locking