KLE’s SOCIETY

INSTITUTE OF MANAGEMENT STUDIES

AND RESEARCH,
VIDYANAGAR, HUBLI - 580 031.

(Affiliated to Karnatak University, Dharwad & Recognized by AICTE, New Delhi)

A PROJECT REPORT ON
A STUDY ON WORKING CAPITAL MANAGEMENT OF SBI

SUBMITTED TO KARNATAK UNIVERSITY, DHARWAD

FOR PARTIAL FULFILLMENT FOR REQUIREMENTS OF
THE AWARD OF MASTER OF BUSINESS
ADMINISTRATION IN THE ACADEMIC YEAR 2019-2020

Submitted by

Netravati Morabad
MBA II Semester
Reg. No: 19MBA102

INSTITUTE GUIDE

Prof. Saptarishi Mukarjee

Faculty,

KLES IMSR, Hubli

 A STUDY ON WORKING CAPITAL MANAGEMENT IN SBI

INDEX

TABLE OF CONTENTS
SL.NO PARTICULARS PAGE. NO

1 EXECUTIVE SUMMARY 2-6

2 INTRODUCTION TO THE STUDY 7-8

3 INDUSTRY PROFILE 9-20

4 ORGANISATION PROFILE 21-29

5 NON –PERFORMING ASSETS 30-45

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6 OBJECTIVES OF THE STUDY 46-47

7 METHODOLOGY 46-47

8 ANALYSIS AND INTREPRETATION OF 48-61

DATA

9 FINDINGS 62-63

10 SUGGESTIONS 64-65

11 CONCLUSIONS 66-67

12 BIBILOGRAPHY 68-69

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

Introduction:

Banking has been defined by Banking Regulation Act of 1948 as “it is

accepting for the purpose of lending or investment of deposits from the public,
repayable on demand on otherwise and withdraw able by cheque, draft,
orders or otherwise”.
So, from this definition we can easily say that banking is a very
complicated process. In this complicated process to run the bank smoothly it is
the primary duty of a bank to take care of the working capital seriously,
because the definition of Working capital is defined as “The firm’s total
investment in current assets or assets that it expects to be converted into cash
within a year or less”
Management of working capital includes consideration for net working capital,
by managing current assets to current liabilities. This means organizations have
to factor in a certain amount of risk-return trade-offs in the decision making
process. If an organization does not increase their net working capital enough,
they run more of a risk of struggling to pay their bills. But if they increase the
working capital too much, they are taking away from the profitability of the
organization. In order to avoid problems, organizations have to make good
decisions which overlap, between current assets and how current liabilities are
used.

Significance of the study:

The essence of the study is that the highest valued asset of a banking
company is its working capital which constitutes the major part of total capital
of the banking company. It helps to know the current condition of the bank,
the total amount of its current assets, and the total amount of its current
liabilities. The theoretical aspects of the study with detail relevance to banking
system, progress of commercial banks, introduction to working capital
management, profile of the State Bank of India which speaks about the
introduction of sbi, SWOT analysis of sbi, its major competitors serve as
introductory chapter.

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OBJECTIVES OF THE STUDY

METHODOLOGY

Introduction

The quality of the project work depends on the methodology adapted for the study and also it

depends upon the nature of the project work. Use proper way of research methodology is very

essential part of any research. In order to conduct a study scientifically, suitable methods and

measures are to be followed.

Research Design

DATA COLLECTION METHOD

Secondary Data

Published data and the data collected in the past or other party is called secondary data. The

secondary data is collected from the published books, magazines, annual report of the bank

and bank website has been used to collect the data.

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