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Presented by Lovely Jamwal MBA sem-III

This document provides an overview of working capital management at Jammu and Kashmir Bank in India. It includes sections on the banking industry and J&K Bank's services, products, and competitors. Data on the bank's current assets, liabilities, sales growth, inventory costs, and net worth over recent years is analyzed. Recommendations are provided to improve working capital financing and reduce non-performing assets. In conclusion, J&K Bank has increased its working capital loan portfolio and profitability while reducing non-performing assets through better risk management and supervision of borrowers.

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Akhil Suri
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63 views

Presented by Lovely Jamwal MBA sem-III

This document provides an overview of working capital management at Jammu and Kashmir Bank in India. It includes sections on the banking industry and J&K Bank's services, products, and competitors. Data on the bank's current assets, liabilities, sales growth, inventory costs, and net worth over recent years is analyzed. Recommendations are provided to improve working capital financing and reduce non-performing assets. In conclusion, J&K Bank has increased its working capital loan portfolio and profitability while reducing non-performing assets through better risk management and supervision of borrowers.

Uploaded by

Akhil Suri
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 33

Working capital

management
at
Presented by

Lovely jamwal MBA sem-III

Department of business administration

Shivalika educational trust business school

University of Jammu
Glimpse of contents
• Introduction to banking system in India
• introduction to Jammu & Kashmir bank
• Introduction to working capital
• Data analysis
• Findings
• Reason for failure
• Recommendation
• Conclusion
• suggestion
INDUSTRY
PROFILE
BANKING INDUSTRY
• A bank is an Introduction
institution
that deal
with
money and
credit
Service
organization
selling banking
services
ORIGIN
• Banking in India
originated in the
last decades of the
18th century.
• The first banks were
The General Bank
of India which
started in 1786.
• RBI constituted in
1934 & in 1948
came under govt.
control.
COMPOSITION OF INDIANBANKING
• RBI
• Commercial banks
• Public bank
• Private bank
• Foreign banks
• Cooperative banks
• Development banks
• Land development
JAMMU AND KASHMIR
BANK
INTRODUCTION

Established in
•
Director
Mushtaq Ahmed has
been the Chairman
and Chief Executive
Officer of Jammu
and Kashmir Bank
Ltd. since October
2010. Mr. Ahmed
has been a Director
of Jammu and
Kashmir Bank Ltd.
since October 2010.
SERVICES
Support Cash Management
Services Services
Anywhere Real Time Gross
Banking Settlement (RTGS)

Internet Banking National Electronic


Fund Transfer (NEFT)
SMS Banking
ATM Services
Debit Cards
COMPETITORS
• State bank of India
• Punjab national bank
• ICICI
• HDFC
• AXIS bank
• Others
WORKING
CAPITAL
DEFINATION
Working capital refers to
the firms capital
required for financing
short term or current
assets.
•
TYPES
OPERATING CYCLE
IMPORTANCE
• Solvency of the business
• Goodwill
• Easy loans
• Cash discounts
• Regular supply of raw materials:
• Regular payments of salaries,
wages and other day to day
commitments
• Ability to face crisis
• High Morale
SOURCES
• There are two types of
souces
Long term
Short term
DATA ANALYSIS
AND
INTERPRETATIONS
CHART SHOWING RELATIONSHIP
BETWEEN CURRENT ASSETS TO
CURRENT LIABILITIES
CHART SHOWING INCREASE IN
SALE GROWTH FROM LAST FEW
YEARS
 
CHART SHOWING RELATIONSHIP
BETWEEN COST OF SALES TO
INVENTORY (TAKEN 365 IN DAYS)
CHART SHOWING RELATIONSHIP
BETWEEN PURCHASES AND AVERAGE
CREDITORS
CHART SHOWING INCREASE IN
NETWORTH OF CONCERN M/S.ABC OVER
THE LAST FEW YEARS
CHART SHOWING GROSSPROFIT AND
NET PROFIT OF FIRM OVER THE LAST
FEW YEARS.
 
FINDINGS
• A detailed study is usually done by J&K
bank while providing working capital
finance.
• A detailed viability study is necessary
before agreeing to provide working
capital finance.
• RBI have been given freedom to J&k
bank to adopt future viability.
• J&k bank have to mandatory apply the
turnover method for assessing
Few reason for failure of working
capital financing account turning
into non performing assets.
Slow inventory turnover/piling up of
inventory
Non submission /delayed submission of
stocks/receivables statement and
quarterly/annual operating data.
Defective appraisal due to lack of proper
training and supervision.
Stress on quantity rather than quality. 
•

•
Recommendations
• Sanction of credit limits for working capital
requirements should not alone sufficient. Close
supervision and follow up are necessary not
only to keep control on the borrower but also
for safeguarding bank’s interest.
• J&K bank should provide adequate training to
credit appraisal officers, so as to prevent
defective appraisal.
• J&K bank should have credit risk management
department for proper risk assessment, rating
and review.
CONCLUSION
• The J&K Bank has its own advances and recovery
department that can ensure easy and safe lending. 
• J&K bank has its own credit risk rating model for loan
pricing. It is Rated "P1+" by Standard and Poor-
CRISIL connoting highest degree of safety.
• The J&K bank has been increased his credit portfolio of
working capital loan from 60%to 65% as compared to
previous year (2006-07 to 2007-08). Also the
profitability of the company has been increased and
recently it became 10 Billion worth company.
• The reduction in NPAs is also improving the overall
image and rating of the bank that are reflected by
increase in assets and lending of the bank. It is also
SUGGESTIONS
1… Maintenance of working capital position in
terms of a minimum current ratio.( i.e. C.A is
more than C.L ).
2… Provide more cash management services
like Electronic clearing scheme (ECS) , Direct
credit, Dividend warrants etc.
 
•
TH A N K S FO R
YO U R
K IN D
A T T E N T IO N

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