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maximum bank permissable finance

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maximum bank permissable finance..

Answer / jamalaiah

it is a maximum amount bank can lend a borrowers towards his
working capital management is called MBPF.

Is This Answer Correct ?    37 Yes 0 No

maximum bank permissable finance..

Answer / tirdha sri naidu

According Tandon committee it fallows certain rules to lend the money i.e
75% (current assets- current liabilities) or 75% current assets - current liabilities

Is This Answer Correct ?    6 Yes 0 No

maximum bank permissable finance..

Answer / apoorv

As per the tandon committee MPBF can be calculated by the
following three ways -

1. 75% (CA -CL)

2. (75%xCA) - CL

3. [75%(CA - CCA)] - CL

CA- Current Assets
CL- Current Liabilities
CCA- Core Current Assets

Is This Answer Correct ?    6 Yes 0 No

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