MANAGEMENT OF FLOATING CAPITAL IN BANKING SECTOR: A CASE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS IN INDIA

ABSTRACT

In the present era of globalization, liberalization and privatization, management of working capital is of utmost importance. Shifting from conservative approach to aggressive approach is both the need and necessity of modern business. It has been seen that company reduces its working capital to take a greater risk for bigger profits and losses conversely if it is interested in improving its liquidity; it increases the level of its working capital. In order to get an adequate working capital a company should maintain an equilibrium balance between liquidity and profitability. In this paper an effort has been made to analyse the working capital of public and private sector banks of India for the period of 2011-12 to 2015-16. The working capital of banks under study are analyze through certain ratios and the inter comparison of working capital policies has been examined by applying the ANOVA test.

FULL TEXT