A Study on Working Capital Management Through Ratio Analysis at SBI

Abstract

Working capital management plays a vital role in maintaining the liquidity, profitability, and overall financial stability of banking institutions. This study focuses on the analysis of working capital management at the State Bank of India through ratio analysis. The research aims to evaluate the efficiency of SBI in managing its short-term assets and liabilities by using important financial ratios such as current ratio, quick ratio, cash ratio, debt-equity ratio, and turnover ratios. The study is based on secondary data collected from annual reports, financial statements, journals, and official banking publications. Ratio analysis helps in understanding the financial performance, liquidity position, operational efficiency, and solvency of the bank over a specific period. The findings of the study indicate that effective working capital management contributes significantly to maintaining financial stability, improving operational performance, and ensuring smooth banking operations. The study also suggests that proper financial planning and efficient utilization of resources are essential for enhancing profitability and sustaining long-term growth in the banking sector.