An analytical study of working capital management of Purvanchal Urban Co-operative Bank in Ghazipur district

Pages: 1547-1549
Priyanka and Archna Singh (Department of Psychology, University of Lucknow, Lucknow, Uttar Pradesh)

The objective of this article is to study the performance of Purvanchal Urban Co-operative bank on the basis of ratio analysis. The basic parameter to that determines the success of any organization is how effectively they utilize their financial resources. Ratio analysis is the best way to determine the performance of any banking institution, which further generates return for stakeholders. In banks there should be proper management of resources, if not properly managed will lead to reduction in benefits through short term investments and over burden of unnecessary expenses. A balanced capital management is said when there is not neither excessive allocation of funds nor too low allocation of funds, so that banks may miss the opportunity of profitable investments as well as short term liquidity crisis. Profitability and liquidity is the two basic objective of any bank, which can only be obtained by adequate management of working capital. On the other hand, every bank has to fallow fixed norms of central banks in order to safeguard the interest of common people as well as nation. Hence from the above prospective the study is important.