TaxTMI 
TaxTMI 
Sir, A business person rs:40 lacs received od loan from union bank of india Question: A person monthly stock statement report compulsory and rs:40 lacs od loan minimum stock value show in stock statement report drawing power procedure.
bank od loan stock statement prepared drawing power procedure.
09 Jun 2025 
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Drawing power requirement: maintain and submit monthly stock statements to support overdraft availability and avoid penalties.
Borrowers with an OD secured by inventory must submit monthly stock statements detailing inventory; lenders apply a margin so DP = Stock Value x (100% - Margin%) and recalculate DP monthly. The reported stock must support the sanctioned OD; non-compliance or falling stock values can lead to freeze or reduction of the OD, penal interest, irregularity classification, and demands for additional security or repayment. Book debts may also be considered; borrowers should consult their OD terms and banker for exact margin and procedures. (AI Summary)
Borrowers with an OD secured by inventory must submit monthly stock statements detailing inventory; lenders apply a margin so DP = Stock Value x (100% - Margin%) and recalculate DP monthly. The reported stock must support the sanctioned OD; non-compliance or falling stock values can lead to freeze or reduction of the OD, penal interest, irregularity classification, and demands for additional security or repayment. Book debts may also be considered; borrowers should consult their OD terms and banker for exact margin and procedures. (AI Summary)