Due to negative working capital it may run into trouble paying back creditors in the short term. In worst-case scenario it can leads to bankruptcy.
Suppose you deposited 2 million Rs and you went for withdrawal and bank could not pay you.
On Fri, Oct 14, 2011 at 9:40 AM, mc090405216 Arshia Osaf <mc090405216@vu.edu.pk> wrote:
AOA all,Please tell me why negative working capital is not favorable for banks?--
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