Discussion

Explanation:

The question stem requires a correct statement.
Option 2 is contrary to the data provided in the passage. Risk level goes up as credit ratings go down - as is stated in the concluding lines of paragraph 9.
Bank of Baroda shrank its loan book by 1.97% and not less than 1% as stated in option 3.
PNB in last year same quarter grew in its loan book and did not decline as the comparison suggests in option 4.
Option 1 is substantiated by data provided in option 3 & 4.
Hence, the correct answer is option 1.

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