Consider the following: 1. Global Trust Bank has been amalgamated with the Punjab National Bank. 2. The Second report of the Kelkar Committee dealing with direct and indirect taxes has maintained its original recommendation including the abolition of exemptions relating to housing loans. Which of the statements is/are correct?

1. Statement 1 is incorrect. Global Trust Bank (GTB) faced financial difficulties and was amalgamated with the Oriental Bank of Commerce (OBC) in August 2004, not the Punjab National Bank (PNB). 2. Statement 2 is incorrect. The Kelkar Committee reports (submitted in 2002) on tax reforms (direct and indirect taxes) did recommend phasing out various tax exemptions, including potentially those on housing loans, but the final government actions often differed from the initial recommendations, and exemptions on housing loans continued in various forms. The statement implies the committee *maintained* its original stringent recommendations without change, which might not fully reflect the policy outcome or nuances. 3. Since both statements are incorrect, the answer is (D) Neither 1 nor 2.