Q9. Following information is available on the context of providing loans to various sectors to deal their current financial weaknesses (Year 2020)- Prime Minister of India, Narendra Modi had unveiled the Rs 20 lakh crore Atmanirbhar Bharat Abhiyaan in a speech in May 2020. The finance minister announced the various components of the programme over the next few days. The Finance Minister's office had tweeted that PSBS contacted more than 95% of borrowers eligible for emergency credit lines & working capital enhancements between March 20 - May 6, 2020. The amount sanctioned jumped to Rs 54,544 crore, more than double the amount 2 days ago. They also tweeted that state-run banks have sanctioned loans worth Rs 5.66 lakh crore over last two months to about 4.2 million account holders belonging. Questions- (a) In the light of above information, your are required to identify that When banks are giving additional working capital, what are they going for and how can be utilised?" (b) The above information also suggested that the pattern of financing working capital by banks in India has undergone a radical change over the years and plays an important role in providing finance to industrial units in India. On the other hand, small industries like Pottery or confectionary association etc., also uses some considerations while applying or receiving the amount for their financial need. Describe briefly those directly and indirectly accounted while identifying finance from the banks or Fls.
Q9. Following information is available on the context of providing loans to various sectors to deal their current financial weaknesses (Year 2020)- Prime Minister of India, Narendra Modi had unveiled the Rs 20 lakh crore Atmanirbhar Bharat Abhiyaan in a speech in May 2020. The finance minister announced the various components of the programme over the next few days. The Finance Minister's office had tweeted that PSBS contacted more than 95% of borrowers eligible for emergency credit lines & working capital enhancements between March 20 - May 6, 2020. The amount sanctioned jumped to Rs 54,544 crore, more than double the amount 2 days ago. They also tweeted that state-run banks have sanctioned loans worth Rs 5.66 lakh crore over last two months to about 4.2 million account holders belonging. Questions- (a) In the light of above information, your are required to identify that When banks are giving additional working capital, what are they going for and how can be utilised?" (b) The above information also suggested that the pattern of financing working capital by banks in India has undergone a radical change over the years and plays an important role in providing finance to industrial units in India. On the other hand, small industries like Pottery or confectionary association etc., also uses some considerations while applying or receiving the amount for their financial need. Describe briefly those directly and indirectly accounted while identifying finance from the banks or Fls.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Q9. Following information is available on the context of providing loans to various sectors to deal their
current financial weaknesses (Year 2020)-
Prime Minister of India, Narendra Modi had unveiled the Rs 20 lakh crore Atmanirbhar Bharat
Abhiyaan in a speech in May 2020. The finance minister announced the various components of the
programme over the next few days. The Finance Minister's office had tweeted that PSBS contacted
more than 95% of borrowers eligible for emergency credit lines & working capital enhancements
between March 20 - May 6, 2020. The amount sanctioned jumped to Rs 54,544 crore, more than
double the amount 2 days ago. They also tweeted that state-run banks have sanctioned loans worth
Rs 5.66 lakh crore over last two months to about 4.2 million account holders belonging.
Questions-
(a) In the light of above information, your are required to identify that When banks are giving
additional working capital, what are they going for and how can be utilised?"
(b) The above information also suggested that the pattern of financing working capital by banks in
India has undergone a radical change over the years and plays an important role in providing finance
to industrial units in India. On the other hand, small industries like Pottery or confectionary association
etc., also uses some considerations while applying or receiving the amount for their financial need.
Describe briefly those directly and indirectly accounted while identifying finance from the banks or Fls.
Expert Solution
Step 1 Introduction
Working capital is the capital needed to run the daily operations.
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