Question

A borrower applies for a working capital line under the Tandon Committee’s MPBF framework.  The bank's credit team establishes the following parameters from the audited balance sheet: Total Current Assets = ₹800 lakh; Bank Borrowings for Working Capital = ₹150 lakh; Total Current Liabilities = ₹350 lakh. Calculate the Maximum Permissible Bank Finance (MPB

  • F using the First Method.
A ₹450 lakh
B ₹600 lakh
C ₹337.5 lakh
D ₹487.5 lakh
E ₹300 lakh
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