According to the Economic Survey 2016 17 the senior managers in public sector banks are reluctant to...........

Economic Affairs Types of Banks and Banking

According to the Economic Survey 2016-17, the senior managers in public sector banks are reluctant to take decisions to write down loans for fear of being seen as favouring corporate interests and hence it encourages "evergreening of loans", thereby postponing a resolution of the problem. What is meant by evergreen loan?

A loan that does not require the principal amount to be paid off within a specified period of time

A loan that has a very long repayment period

A loan that is written off by the banks as a concession

None of the above

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Explanation:

1st option is correct.

Evergreen Loan- A loan that does not require the principal amount to be paid off within a specified period of time. Evergreen loans are usually in the form of a short-term line of credit that is routinely renewed leaving the principal remaining outstanding for the long term.