Banking on Efficiency: A Comparative Analysis of Working Capital Management with respect to SBI and AXIS Banks

Abstract

Working capital management is crucial in this day of Globalization, privatization, and liberalization. Modern companies must use both aggressive and conservative approaches. It is clear that the corporation reduces its working capital to accept more risk in exchange for larger gains and losses; conversely, it increases its working capital level to increase liquidity. To get adequate working capital, a corporation must strike a balance between profitability and liquidity. This study looks at how public and private sector banks managed their working capital between 2008 and 2013. Financial ratios were calculated, and the banks' financial statements for the relevant period were inspected. This study attempts to identify the primary reasons of short-term funding challenges at public and private sector banks. It demonstrates the importance of working capital management in public and private sector banks and, using the T test, the cause of short-term insolvency. It may be claimed that both public and private sector banks are adopting an aggressive strategy, focused on profit maximization while not ignoring short-term solvency