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CREDIT DESK

Professional credit analysis calculators

Working Capital Assessment

Maximum Permissible Bank Finance (MPBF) — per RBI's three recognised methods

Current Assets (CA)

₹ Crore
Raw Materials / Stock-in-trade
Work-in-Progress
Finished Goods
Book Debts / Receivables
Other Current Assets
Total Current Assets (A)₹ 0.00 Cr

Other Current Liabilities (OCL)

excl. bank borrowings · ₹ Cr
Creditors for Purchases
Advance from Customers
Other Current Liabilities
Total OCL (B)₹ 0.00 Cr

Borrower's NWC Contribution (C)

Actual net working capital from own funds

Working Capital Gap

Total CA (A)₹ 0.00 Cr
Less: Total OCL (B)₹ 0.00 Cr
WC Gap = A − B₹ 0.00 Cr

Method I — MPBF

WC Gap (A − B)₹ 0.00 Cr
Min. NWC required (25% of CA)₹ 0.00 Cr
Borrower's actual NWC (C)₹ 0.00 Cr

Maximum Permissible Bank Finance

₹ 0.00 Cr

WC Gap − Min NWC (25% of CA)

Method Comparison

Method I MPBF₹ 0.00 Cr
Method II MPBF₹ 0.00 Cr
Turnover Method (25%)—

Method II is more conservative and is the RBI preferred method for borrowers above ₹5 Cr.