Working Capital Management and Liquidity Performance of Axis Bank: A Decadal Analysis (2015–2025)

Working capital management (WCM) constitutes a critical element of financial decision-making in the banking industry, ensuring the smooth functioning of operations, liquidity maintenance, and compliance with regulatory requirements. This study investigates the working capital management practices of Axis Bank during 2015–2025, a decade marked by significant economic and regulatory developments in India. Using annual report data, the study evaluates liquidity indicators such as the current ratio, quick ratio, cash-deposit ratio, and credit-deposit ratio to assess the bank’s financial resilience. Findings reveal that Axis Bank successfully balanced liquidity and profitability despite shocks such as demonetization, GST implementation, and the COVID-19 pandemic. The analysis underscores the strategic importance of maintaining adequate liquidity buffers while optimizing working capital deployment to enhance shareholder value. The results have practical implications for private banks in India, suggesting that prudent WCM practices not only safeguard stability but also support sustainable growth in a highly competitive and regulated environment.