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 − B0.00 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 MPBF0.00 Cr
Method II MPBF0.00 Cr
Turnover Method (25%)

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