Banking · Working Capital Assessment
A manufacturer has the following working capital position: Total Current Assets (TCA) = ₹450 Lakh; Current Liabilities Other than Bank Finance (CL) = ₹120 Lakh; Net Working Capital (NWC) = ₹150 Lakh. The bank assesses the loan using the Tandon Committee's Third Method of Lending, which mandates that the borrower must contribute 25% of the Total Current Assets from long-term funds as Net Working Capital. What is the revised Maximum Permissible Bank Finance (MPBF) that the bank can sanction?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1₹230.00 Lakh
- 2₹180.00 Lakh
- 3₹150.00 Lakh
- 4₹217.50 Lakh✓
Correct answer
₹217.50 Lakh
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