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What do you mean by DP(Drawing Power)

Answer Posted / 9151404570

In bank, Drawing Power should not exceed the limit
sanctioned by the bank and it is arrieved at as
under
Example

if A trader approach bank for advance against a order.

now i a order profit is inculded so bank after deduction
margin for order may 10% / 20% etc. grant advance to the
trader within the limit sanctioned. thus he builds up
stock. total advance granted should be within or upto the
limit credit limit sanctioned by the bank.

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