Drawing power


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Querist : Anonymous

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Querist : Anonymous (Querist)
09 May 2017 Banks while granting Cash Credit limit calculate Drawing power. It is said that drawing power is calculated against stock in hand. But How Banks calculate and feed DP in the system while disbursing CC for thefirst time to a new firm, as the firm does not have stock in hand rather it will purchase the same after using CC. So how Bank will compute DP.

10 May 2017 The DP gets calculated from the end of the first month, based on the stock and debtors statement provided by the borrower. For the initial amount, the system does not compute.

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Querist : Anonymous

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Querist : Anonymous (Querist)
10 May 2017 Sir thnx for kind reply. Regards.

10 May 2017 you are most welcome.


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