In the question below is given a statement followed by two courses of action numbered I and II. You have to assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the suggested course of action logically follow(s) for pursuing.

Statement:

Agricultural loans have substantially decreased in a branch of ABC bank which is housed in an agricultural area, despite good farm output and increased farm incomes.

Courses of Action:

I. Controllers should seek an explanation for the same from the Branch Manager.

II. Branch staff should be penalized through a salary cut.