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Working Capital Management Insights

The document discusses various banking terms and policies related to assessing working capital limits, types of loans, processing charges, share allotment policies, cheque purchase limits, book debt practices, current assets, net worth, debt-to-equity ratios, return on equity, net interest margin, return on assets, capital adequacy, non-performing assets classification, CASA accounts, CRR, SLR, no-fee accounts, and document requirements for opening a current account. It seeks to provide an overview of key banking concepts and processes for assessing and approving business loans and credit facilities.

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7 views1 page

Working Capital Management Insights

The document discusses various banking terms and policies related to assessing working capital limits, types of loans, processing charges, share allotment policies, cheque purchase limits, book debt practices, current assets, net worth, debt-to-equity ratios, return on equity, net interest margin, return on assets, capital adequacy, non-performing assets classification, CASA accounts, CRR, SLR, no-fee accounts, and document requirements for opening a current account. It seeks to provide an overview of key banking concepts and processes for assessing and approving business loans and credit facilities.

Uploaded by

230128
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

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How working capital limits is assessed? Manufacturing Trading

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Type of advances What is short term, medium & loan term loans What is the rate of processing charges? At present what is the policy of the bank for allotting shares to the borrower? Why every borrower is required to purchase shares? What is limit for cheque purchase A customer who has already discounted one cheque for Rs 1.25 lac request you to purchase a cheque of Rs. 1.00lacs what you will do What is the practice for book debt

10 What is he practice while accepting / allowing drawing power against book debts over 120 days. 11 Whether purchase bill limit can be sanctioned 12 What is current assets 13 What is negative net worth 14 What is net worth 15 What is TOL / TNW 16 How DSCR is calculated & what is purpose behind this calculation? 17 Return on equity: is determined by dividing net income (minus preferred dividends) by average common stockholders equity to get the return on equity. 18 Net Interest margin: Net interest margin is computed by dividing net interest income by total earning assets. 19 What is Return on Assets: is calculated Return on Assets (ROA) by dividing net operating income by total assets? 20 Capital Adequacy (CAMELS: Capital Adequacy, Asset Quality, Management, Earnings and Liquidity) 21 What is Basel & since when it will be made applicable to us? 22 How NPAs are classified/decided, in a balance sheet where NPAs will appear 23 What steps you will take to increase CASA 24 What is the present CRR 25 What is the present SLR 26 What is no feel a/c 27 What sorts of documents are obtained while opening current a/c? proof of business, proof of business address, PAN card of the business, proof of address

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