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Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2012 which are the ratio that bank consider to for calculation of the the working capital proposal?

what are the special power are given to the branch manager?

mukul mehra

mukul mehra (Expert)
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20 June 2012 ratios in particular considered are

Current ratio
TOL/TNW(total outside liabilities divided by total net worth)
PBDIT/interest (times):
this is called ‘interest coverage’ ratio.
ROCE or ROA (%)
Operating profits/Net sales (%)
Inventory / net sales + receivables / gross sales

branch manager is the first stage of any loan proposal being created and forwarded to the central loan department, most banks these days have specialised centralised loan department for performing credit appraisal of the loans before authorising such but to make a proposal look attractive to them its the ability of the branch manager how well he has drafted such proposal on behalf of the client and he is the first and foremost authority to forward such proposal otherwise centralised might not entertain such proposal. so he plays a key role in performing the initial survey into the soundness and feasibility of the project and the client. so as to minimise the work of the centralised deptt and help the understand the actually requirements of the borrower and also his financial strength and liquidity

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