Read the passage about public sector banks in India, social responsibility, and risk. Then answer the question. In addition to being socially responsible, what does the author want public sector banks to be?

Introduction / Context:
The passage states that public sector banks in India are at a crossroads. They must keep their social responsibility but also remain healthy. They are encouraged to undertake risky experiments in an innovative way, without failure, and to make forays into new areas. The question asks what the author wants the banks to be in addition to being socially responsible. We must pick the option that reflects the need for financial health and strength.

Given Data / Assumptions:

• The passage says that public sector banks should not give up social responsibility and should also remain healthy.
• They need to undertake risky experiments but perform them innovatively.
• They should explore new areas and not lose emerging opportunities.
• The absence of bad advances is not a sign of efficiency; it may show extreme conservatism.
• Banks must adopt novel and pragmatic techniques or else face danger.

Concept / Approach:
The key phrase is should also remain healthy. In the context of banking, healthy means financially sound and strong, not just socially responsible. The correct option must therefore combine social responsibility with financial strength. Options that suggest weakness, recklessness, or extreme conservatism do not match the balanced approach recommended in the passage.

Step-by-Step Solution:
Step 1: Identify the exact line: They are at crossroads, where they without giving up social responsibility, should also remain healthy. Step 2: Examine option C, which states that banks should be financially healthy and strong while still being socially responsible. This matches the line very closely. Step 3: Option A suggests that banks can be customer friendly even if financially weak; the passage emphasises health, not weakness. Step 4: Option B focuses only on foreign investors, which are not mentioned in the passage. Step 5: Option D encourages reckless risk taking, but the passage calls for innovative experiments, not senseless risk. Step 6: Option E promotes extreme conservatism, but the passage warns that absence of bad advances alone is not a sign of efficiency and may indicate excessive caution.

Verification / Alternative check:
We can verify by summarising the author’s position: banks must balance social responsibility with financial soundness and a moderate willingness to take calculated risks. This balance is exactly what option C expresses. The other options push banks either toward weakness, recklessness, or over cautious behaviour, none of which the passage supports.

Why Other Options Are Wrong:
Option A is wrong because financial weakness is dangerous and the passage stresses health. Option B is wrong because attracting foreign investors is never discussed as a goal. Option D is wrong because the passage calls for innovative but careful experiments, not wild risk taking. Option E is wrong because total absence of risky advances may show immense conservatism, which is criticised in the passage.

Common Pitfalls:
A typical mistake is to assume that social responsibility and financial health are opposites and to choose an option that sacrifices one for the other. The passage, however, clearly states that banks must manage both. Another error is to misread criticism of excessive caution as encouragement of reckless behaviour. The passage argues for balance and innovation, not extremes.

Final Answer:
In addition to being socially responsible, the author wants public sector banks to be financially healthy and strong.