01
The Instructions Sheet
Four things to read first, eight steps and what the workbook does not do.
Stock Statement Format for Bank, with a Drawing Power Calculator (2026)
If you have a cash credit limit, your bank sets how much you can draw from a stock statement you send it, as often as your sanction letter says. This free Excel values your stock the way accounts require, ages your book debts, and works out your drawing power and headroom from your own sanction terms. Updated November 2026.
- Drawing power and headroom worked out from your sanction letter's margins
- Book debts aged, with old, related and disputed bills left out
- A flag before your statement passes the RBI's three-month limit
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Stock Statement Format
For traders and MSMEs with a cash credit limit
3 months
The oldest statement a bank may rely on · Excel
2026
What's Inside
Seven sheets from your books to the figure your bank uses
02
The Statement
Your sanction terms, up to 15 stock lines valued at the lower of cost and market value, unpaid suppliers, the book debts the bank counts, your drawing power and headroom, a declaration to sign and a check list that does not print.
03
The Book Debts Sheet
Up to 100 unpaid bills, each aged to the statement date and banded, with old, related-party and disputed bills left out of what the bank counts.
04
The Monthly Tracker
Twelve months of statements with drawing power and headroom, and a flag for a statement sent after the due day.
05
The Bank Rules
The RBI paragraphs on drawing power, stock statements and NPAs, and the accounting standard for valuing stock, quoted, with what each means for you.
06
Two Example Sheets
A made-up textile trader in Surat: ₹25,23,450 of drawing power against ₹31,50,000 drawn, so the statement shows it ₹6,26,550 over.
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Why This Matters
The statement sets what you can draw
A cash credit limit is not money you can draw in full. Your bank works out a drawing power from the stock and book debts you report, minus the margins in your sanction letter, and you can draw the lower of that and the limit. The RBI's rules for banks say drawing power is to be "arrived at based on the stock statement which is current".
Two numbers follow from those rules. A bank should not rely on a stock statement more than three months old, and drawings based on an older one count as irregular. And an account where irregular drawings are allowed for 90 days in a row becomes a non-performing asset, even if the business is running fine.
The figures have to be honest, too. Stock is valued at the lower of cost and what it would fetch now, under the accounting standard AS 2, so a damaged lot is not reported at what you paid. Your ledger gives the book debts and what you still owe suppliers.
This workbook takes those figures and your own sanction terms and shows the drawing power before your bank does. If you are still working out how big a limit to ask for, start with our working capital calculator.
Sample Preview
What each sheet gives you
Here's a preview of what you'll get inside, sheet by sheet, in the order they open.
Instructions: Four things to read first, the sheets, eight steps and what the workbook does not do.
Statement: Sanctioned limit, margins, age limit, statement date, stock by type at cost and market value, unpaid suppliers, book debts counted, drawing power, headroom and the check list.
Book Debts: Customer, bill number, bill date, amount still due, related party, disputed, days old, age band, counted or not, and a check.
Monthly Tracker: Statement date, date submitted, stock and book debts counted, margins, drawing power, limit, balance and headroom.
Bank Rules: Seven provisions, quoted, what your sanction letter sets, and what each means for you.
Example Statement: Stock of ₹31,23,000 counted, ₹6,20,000 owed to suppliers, ₹10,77,000 of book debts counted: drawing power ₹25,23,450.
... all 7 sheets in one Excel file, with the formulas locked and the input
cells in yellow.
Key Stats
Three numbers behind every stock statement
3 months
The oldest a stock statement can be for a bank to rely on it for drawing power. What you draw on an older one counts as irregular.
Source: RBI IRACP Directions, 2025, paragraph 15, read 02-Nov-202690 days
Irregular drawings allowed for this long, continuously, make a working capital account a non-performing asset.
Source: RBI IRACP Directions, 2025, paragraph 42(3), read 02-Nov-2026Lower of cost and market
How stock is valued: at cost, or at what it would fetch now less the cost of selling it, whichever is lower.
Source: ICAI Accounting Standard 2, paragraph 5, read 02-Nov-2026
Common Mistakes
7 Stock Statement Mistakes That Cost You Drawing Power
01
Valuing stock at its selling price
Stock goes on the statement at cost, or lower if it is worth less now. Reporting it at selling price inflates your drawing power with profit you have not made, and overstating stock is a false statement to your bank.
02
Counting stock you have not paid for
If your sanction letter deducts unpaid suppliers, take your sundry creditors for those goods off the stock first. The Statement sheet does it when you say Yes.
03
Including old and disputed book debts
A bill older than your sanction's age limit, a disputed bill or a sister concern's dues may not count: your sanction letter says. Our guide to getting receivables paid faster helps keep them young.
04
Sending the statement late
Past your sanction letter's due day, you may face charges. Past three months, what you have drawn against the old statement counts as irregular.
05
Leaving the balance above drawing power
An excess the bank allows for 90 days in a row can make the whole account a non-performing asset. Bring it down, or ask the bank about it before it gets there.
06
Using last year's margins
Margins and limits can change at each renewal. Copy them from your current sanction letter, not from an old statement.
07
Reporting slow-moving stock at cost
Stock that has sat for months may be worth less than it cost. Our guide to inventory turnover shows how to spot it, and the bank's stock auditor may ask.
Comparison
A Blank Format vs This Workbook
| Aspect | A blank format | With this workbook |
|---|---|---|
| Stock value | Cost or selling price, whichever is handy | Lower of cost and market value, line by line |
| Unpaid suppliers | Forgotten | Deducted when your sanction says so |
| Book debts | The whole debtors total | Aged, with old, related and disputed bills left out |
| Drawing power | Worked out by the bank after you submit | Worked out by you before you submit |
| Three-month rule | Not known | Flagged on the check date |
| Month to month | No record | A tracker of drawing power and headroom |
Swipe the table sideways to see the full comparison.
Know your drawing power before your bank does
Download the free stock statement format and see your headroom every month.
FAQ
Frequently asked questions
What is a stock statement for a bank?
A statement of the stock and book debts your business holds on a date, which a bank asks for on a cash credit or overdraft limit secured on them. The bank uses it to set your drawing power. If your bank gives its own form, use it: this workbook gives the figures it asks for. For how a bank looks at a working capital request, read our guide to securing a business loan. This page is general guidance, not legal, tax or banking advice.
How is drawing power calculated?
Stock the bank counts, less the stock margin, plus book debts it counts, less the book-debt margin. You can draw the lower of that and your limit. In the example, ₹25,03,000 of stock at a 25% margin gives ₹18,77,250, and ₹10,77,000 of book debts at 40% gives ₹6,46,200: ₹25,23,450 in all. The margins come from your sanction letter.
What happens if I submit the stock statement late?
Your sanction letter says what a late statement costs, including any charges. Under the RBI's rules a late statement alone does not make the account a non-performing asset, but a bank should not rely on one more than three months old, and what you draw against an older one counts as irregular.
Which book debts does the bank count?
The ones your sanction letter allows, which may include an age limit. The workbook leaves out bills older than the limit you enter, related parties and disputed bills. Your ledger gives the unpaid bills and their dates.
Should stock be valued at cost or market price?
At the lower of the two. Accounting Standard 2 says inventories "should be valued at the lower of cost and net realisable value", which is what the stock would fetch less the cost of selling it. A bank's stock audit may check the values you report.
About Petpooja
Petpooja is India's leading SME business software suite, trusted by 1,50,000+ businesses across restaurants, retail, healthcare, manufacturing, and more. From billing and payroll to task management and procurement Petpooja helps Indian businesses run better, every day.
From the stock on your shelf to the figure on your statement
Petpooja Invoice keeps billing and inventory in one place, with real-time stock tracking. If your bank also gave you a term loan, our EMI calculator works out the instalment. Ask for a walkthrough of Petpooja Invoice.
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