Consider the following statements:
Assertion (A): Non-performing assets of Public Sector Banks are much higher than private sector banks.
Reason (R): Private sector banks lend in are wary of lending at longer maturities.
Select the correct answer using the codes given below:

Correct option is B

Public Sector Banks (PSBs) in India have traditionally held a higher share of Non-Performing Assets (NPAs) compared to private sector banks. This is due to several factors, including larger exposure to stressed sectors such as infrastructure and agriculture, as well as government-mandated lending schemes. Private sector banks, on the other hand, have more flexibility in lending decisions and can avoid risky sectors. While private banks may focus on shorter-term, safer lending, this is not the primary reason for the difference in NPA levels. PSBs face higher NPAs primarily due to policy-driven lending rather than just longer-term lending practices​