222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

What is CMA Data in Banking

This question has been asked by Sakthivel. So, I am trying to explain the meaning of CMA Data in Banking with simple words.

Meaning of CMA Data in Banking

CMA Data means credit monitoring arrangement data. This data is provided by a company to bank for getting the loan from bank. Bank analyzes this data and then take the decision of giving loan to a company. In   CMA data, we can include 2 years balance sheet and 3 future projected balance sheet of company. 2 years income statements and 3 future projected income statement, Fund flow statement, changes in working capital report, ratio analysis and maximum permissible bank finance (MPBF) report.



More Explanation of CMA Data 

Bank wants to decrease risk of default of loan. On the time, if any company is not in position to repay the loan. It becomes bad debt. But what is the real default behind this. Default is of bank who did not analyze the financial and solvency position of company. By getting CMA Data, banks expert will be in the position to go deeply. Every Rs. 1 of the bank is of customers. Customers means you and me who deposit the money in the bank. So, every bank should demand CMA Data and analyze it deeply. Now, some CAs started to provide the service of providing and analyzing on the behalf of company and bank. So, their service can also be taken.


1. With balance sheet, bank will know the financial position. Is it sound or not? Will bank has own assets or all assets on debt. So, to study balance sheet is must. CMA Data will have more than 3 years balance sheet and projected balance sheet. So, analyst can make comparative balance sheet for knowing the changes in the balance sheet's position.

2. With fund flow statement, bank can know the flow of fund. Is company wasting their fund or applying fund for growing. So, it must be in CMA Data.

3. With profit and loss account study, bank will know performance of company. It also helpful to know earning cycle for paying the expenses.

4. With changes in working capital report, bank will know the changes in current assets and current liabilities. It will also helpful to know short term solvency of company. If it has enough money to pay current liabilities, it can not misuse its long term resources.

5. With ratio analysis, bank will understand the position of company more clearly within few minutes. Bank should ask the maximum permissible bank finance (MPBF). It means, What amount does a company want from bank? It should not more than 75% of working capital.



RBI has introduced this. Its aim is to protect the customers money which is deposited in bank. Bank should also study future projected income and financial position statements before giving any loan to any company. RBI has made also formats of all these data reports. Company should follow this for giving CMA Data to bank.

Comments

: 4
  1. How to make projections for cma?

    ReplyDelete
  2. How to prepare projected financials to get a 100 crore loan from bank or NBFC??

    ReplyDelete
  3. Well i visit your page and i find this data much valuable and informative but i want to know about that the documents required for CMA in brief . Please share more on this. Thank you for sharing.

    ReplyDelete
    Replies
    1. Thanks dear Web Phantoms for appreciating our team's hard work for writing this content. Please subscribe our accounting education newsletter, soon, we will write on this also.

      Delete
In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

 


Name

access,2,account,86,accountant,95,Accounting,683,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,87,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,143,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: What is CMA Data in Banking
What is CMA Data in Banking
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOiZdZcq2nud75t3TRgznrT8SiOqNSP5TgGOwqLN0WUGKJcqaxPDq4ZH9qJQCvZeDNcnIeQJ1IBdr_dOYCoy63ImDqvi1xa0kVv2eKL0c1Gdx6U5w5AUntCD4fKzniIoiK2Lrk3nukQMke/s640/mpbf.PNG
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOiZdZcq2nud75t3TRgznrT8SiOqNSP5TgGOwqLN0WUGKJcqaxPDq4ZH9qJQCvZeDNcnIeQJ1IBdr_dOYCoy63ImDqvi1xa0kVv2eKL0c1Gdx6U5w5AUntCD4fKzniIoiK2Lrk3nukQMke/s72-c/mpbf.PNG
Accounting Education
https://www.svtuition.org/2013/03/what-is-cma-data-in-banking.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2013/03/what-is-cma-data-in-banking.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy