Banks provide several credit facilities to customers engaged in activities related to agriculture. Many a time banks take the brunt when unforeseen disaster strikes the farmers in the form of ‘on-farm loss’ and or ‘off-farm losses. These types of losses are caused mainly due to production risk and price risk. Risk management in agriculture involves…
There are several types of agricultural credit, including Short-term credit, Medium-term credit, Long-term credit, Crop Loans, Farm development Loans, Live- stock loans, Kisan Credit cards, Agribusiness loans, agricultural real estate loans, allied agricultural loans, equipment loans, warehouse receipt loan, Forestry loans, Horticulture loan, Multipurpose Gold Loan, Solar pump set loan, etc. Short-term credit: Farmers use…
Projected net working capital (NWC) is the difference between a company’s projected current assets and current liabilities. (i) Projected current assets are the aggregate current assets of a seller, excluding excluded assets, projected as of the Closing Date, and expressly including the value of the inventory as determined consistent with past practice, (ii) Projected current…
Working capital is the operating capital of a business that is used in its day-to-day operations, calculated as the current assets minus the current liabilities. The positive working capital commonly indicates that a company can pay off its short-term liabilities almost immediately. Source of working capital: Sources of working capital are Share Capital, retained profits,…
Three cardinal principles of bank lending have been followed by commercial banks in the employment of their funds. These are the principles of safety, liquidity, and profitability. Safety The important principle of lending is safety which refers to the important fact that the borrower should be able to repay the loan based on character, capacity…
According to news in circulations, Bank Employees Union AIBEA issued a circular on 30.09.2024 about Medical Insurance Policy premium details for joint and single life, and for the Top-up payable by Bank Retirees and family pensioners. From the circular, it is unclear whether a retiree can opt for a lower limit for base or top-up…