A Study on Working Capital Management at Kotak Mahindra Bank, Anantapur

Working capital management plays an essential role in a firm’s financial planning, as it deals with the proper handling of short-term assets and liabilities to ensure smooth operations. It ensures that the organization maintains adequate liquidity to cover routine expenses while also achieving profitability. Efficient management of working capital helps maintain a proper balance between short-term assets and short-term obligations. This balance is essential for enhancing operational efficiency, minimizing financial risks, and supporting sustainable growth. Key components of working capital management include cash conversion cycle, inventory management, credit policy, and accounts receivable management. Ineffective management may result in liquidity problems, making it difficult for the firm to meet its financial commitments. Invest in growth opportunities, and ultimately impacting profitability. Thus, understanding and improving working capital management is vital for financial stability, particularly in dynamic and competitive business environments.