Read the passage about public sector banks in India, social responsibility, and risk taking. Then answer the question. According to the author, what are public sector banks currently witnessing in India?

Introduction / Context:
The passage comments on public sector banks in India. It says they are witnessing a period of transition and are at a crossroads. The author emphasises that they must remain socially responsible and financially healthy while also taking some risks and innovating. The question asks what the banks are currently witnessing. This is directly stated in the opening sentence, so it is a recall and understanding question.

Given Data / Assumptions:

• The passage states that public sector banks are witnessing in India a period of transition.
• They are described as being at a crossroads.
• They must both keep social responsibility and remain healthy.
• They should undertake risky experiments, but in an innovative way so that they do not fail.
• The author explains that absence of bad advances does not always mean efficiency and warns against immense conservatism.

Concept / Approach:
We must simply identify the phrase period of transition and understand that at a crossroads implies a moment of important change and decisions. Therefore, any option that speaks of change or transition is likely to be correct, while statements that suggest complete certainty, guaranteed profit, or definite loss do not match the passage. The author presents the situation as delicate and uncertain but full of opportunity, not as fixed in either profit or loss.

Step-by-Step Solution:
Step 1: Recall the exact wording: The public sector banks are witnessing in India a period of transition and are at crossroads. Step 2: Evaluate option B. It speaks of a period of transition and change and mentions that they stand at a crossroads. This matches the passage almost exactly. Step 3: Option A claims there is steady and guaranteed profit, but the passage does not promise profit and actually warns that absence of bad advances is no guarantee of profit. Step 4: Option C speaks of complete certainty, which the phrase crossroads clearly contradicts. Step 5: Option D claims the banks are definitely making continuous losses; the passage does not support this, only that they face danger if they do not adopt new techniques. Step 6: Option E suggests they have no social responsibility, whereas the passage stresses that they must not give up social responsibility.

Verification / Alternative check:
We can verify by asking what mood the passage sets. The author sees the situation as one of challenge and opportunity, not of automatic success or automatic failure. The key words transition and crossroads confirm that the main idea is change and choice. Option B captures this mood and wording, whereas all other options misrepresent or overstate the situation.

Why Other Options Are Wrong:
Option A is wrong because the passage explicitly warns that profit is not guaranteed. Option C is wrong because transition and crossroads both imply uncertainty and change, not complete certainty. Option D is wrong because the passage does not say that they are definitely making losses. Option E is wrong because social responsibility is mentioned as something that must be retained.

Common Pitfalls:
A common mistake is to focus only on one aspect of the passage, such as risk or danger, and conclude that the banks must be in a loss making period. Another pitfall is to ignore key phrases like period of transition and at crossroads, which clearly point toward change rather than fixed outcomes. Careful reading of the first sentence avoids these errors.

Final Answer:
According to the passage, public sector banks in India are witnessing a period of transition and change in which they stand at a crossroads.