Executive Summary
- Monthly stock statements must be submitted by the 7th of each following month
- Drawing power is computed directly from the stock statement — late or missing statements reduce drawing power to zero or minimum
- The statement must accurately reflect actual stock and book debts, not be reverse-engineered to maximise drawing power
- Persistent non-compliance is flagged at annual renewal and can result in limit reduction
What the Stock Statement Is
A stock statement is a monthly certificate submitted by a CC borrower to SBI showing the current value of inventory and approved receivables. SBI uses this to calculate drawing power — the actual amount the borrower can draw against the sanctioned CC limit in any given month. It is not optional; it is a mandatory condition of every SBI CC sanction letter.
How It Directly Determines Your Drawing Power
Drawing power = (stock value + approved book debts) minus the bank's margin percentage. If the current month's stock statement shows lower inventory than the previous month, drawing power reduces correspondingly. If no statement is submitted, most SBI branches freeze drawing power at the previous month's level or reduce it to a defined minimum — regardless of how much actual stock the business holds.
What the Statement Must Include
The statement must include: opening stock value, stock purchased during the month, stock consumed or sold, closing stock value broken down by raw material, WIP, and finished goods, and sundry debtors within the approved credit period with an age-wise breakup. Each category has a different margin applied — raw material, WIP, finished goods, and debtors each carry different permissible advance percentages.
Consequences of Non-Submission
Beyond the immediate drawing power reduction, persistent stock statement non-compliance is one of the factors reviewed at annual CC renewal — see our renewal process guide — and can result in conditions being added to the renewed facility, limit reduction, or in persistent cases, a formal adverse account conduct classification that affects subsequent borrowing.
Frequently Asked Questions
How often must I submit stock statements to SBI for my CC limit?
Monthly — by the 7th of each following month. Missing even one month's submission reduces your drawing power to the previous month's level or a defined minimum, regardless of how much actual stock you hold. For seasonal businesses with high peak-period stock, missing a submission during the peak season can cut drawing power precisely when working capital need is highest. SBI records submission regularity and reviews it at annual CC renewal.
What happens if I consistently miss stock statement submissions to SBI?
Persistent non-submission is classified as irregular account conduct by SBI and is formally reviewed at annual CC renewal. It can result in conditions being attached to the renewed CC facility, a reduced sanctioned limit, or in severe cases, the bank initiating a review of the overall credit relationship. It is also a CIBIL-reportable conduct issue for significant and extended periods of non-compliance.