Article
A STUDY ON WORKING CAPITAL MANAGEMENT ON SELECTED BANKS IN INDIA
This study presents a comparative analysis of working capital management practices in five selected banks in India — State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Federal Bank — over the five-year period 2021–2025. The study is descriptive and analytical in nature and is based on secondary data drawn from the published annual reports, profit and loss accounts, balance sheets, and other secondary financial sources of the selected banks. Key indicators — Earnings per Share, Book Value per Share, Net Profit Margin, Return on Equity, and Return on Assets — are used to evaluate the liquidity, profitability, and overall financial performance of the selected banks for the terminal year of the study period, and the banks are ranked on the basis of their overall comparative performance. The results show that ICICI Bank recorded the strongest profitability in the terminal year, HDFC Bank recorded the highest absolute earnings and net worth per share together with the most stable growth pattern, and State Bank of India recorded the sharpest overall improvement in profitability and efficiency during the period, while Axis Bank displayed comparatively higher earnings volatility despite healthy growth in book value. The study concludes that a combination of profitability, consistency, and growth indicators provides a more complete basis for evaluating the working capital management performance of Indian banks than any single ratio considered in isolation, and that continued attention to cost efficiency, income diversification, and liquidity discipline remains central to sustaining financial performance in the banking sector.
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