WORKING CAPITAL MANAGEMENT WITH REFERENCE

TO DNS BANK
Bachelor of Commerce
(Banking & Insurance)
Semester V
(2014-2015)

SUBMITTED
BY
In Partial Fulfillment of the requirement
For the Award of Degree of Bachelor of
Commerce- Banking & Insurance
By
MHATRE BHAVESH GURUNATH
Seat No.:T.Z.A.S.P.Mandals
PRAGATI COLLEGE OF ARTS & COMMERCE
Nandivali road,
Dombivli (E)

PROJECT REPORT
ON

WORKING CAPITAL
MANAGEMENT IN DNS
BANK
Bachelor of Commerce
(Banking & Insurance)
Semester V
(2014-2015)

SUBMITTED
In Partial Fulfillments of the requirement
For the Award of Degree of Bachelor of
Commerce- Banking & Insurance
By
MHATRE BHAVESH GURUNATH

Seat No.:T.Z.A.S.P.Mandals
PRAGATI COLLEGE OF ARTS & COMMERCE
Nandivali road, Dombivli (E)

DECLARATION
Date:-

I, MR. BHAVESH GURUNATH MHATRE the student of B.COM (Banking &

Insurance) Semester V (2014-2015) hereby declare that I have completed the
project on WORKING CAPITAL MANAGEMENT

The information submitted is true and original to the best of my knowledge.

(BHAVESH GURUNATH MHATRE)

Seat No.:-

T. Z. A. SHIKSHAN PRASARAK MANDALS

PRAGATI COLLEGE OF ARTS & COMMERCE
DOMBIVLI (E)

CERTIFICATE

(2014-2015)
This is to certify that MR.BHAVESH GURUNATH MHATRE of B.Com
(Banking & Insurance) Semester V (2014-2015) has successfully completed the
project on WORKING CAPITAL MANAGEMENT WITH REFERENCE TO
DNSB under the guidance of Prof. AVDHUT JOSHI

(Prof. Ms. Swati Pusalkar)

Course Co-ordinator

(Dr. A. P. Mahajan)
Principal

(Prof. Avdhut Joshi)

Internal Examiner

External Examiner

ACKNOWLEDGMENT

At the outset, I would like to thank Almighty GOD for his shower of
blessings. The desire of completing this dissertation was given by my guide
Prof. AVDHUT JOSHI.I am very much thankful to her for the guidance,
support and for sparing her precious time from a busy and hectic schedule.

I am thankful to Dr. A.P. Mahajan, Principal of Pragati College. My sincere

thanks to our co-ordinator Prof. Ms. SWATI PUSALKAR who always motivated
me and provided a helping hand for conceiving higher education. I hereby take an
opportunity to extend my sincere thanks to BANK who provided me valuable
information regarding my topic of dissertation.

I would fail in my duty if I dont thank my parents and sister who are pillars
of my life and my friends who have always supported and motivated me. Finally, I
would express my gratitude to all those persons who directly and indirectly helped
me in completing my dissertation.

BHAVESH GURUNATH MHATRE

INDEX
SR.NO.

CONTENTS

1
2

EXECUTIVE SUMMARY
OBJECTIVES

3
4

RESEACH METHODOLOGY
CHAPTER 1.
1.1INTRODUCTION TO BANKING
1.2 GENERAL INFORMATION OFBANKING
1.3 HISTORY OF BANK
1.4 BANKING SECTOR IN INDIA
1.5 IMPORTANCE OF BANKING IN INDIA
1.6 BASIC FUNCTIONS OF BANKING
1.7 ORGANISATIONAL STRUCTURE
1.8 PRODUCTS OF BANKING COMPANY
1.9 WORK SYSTEM IN INDIA
1.10 HOW DO BANKS MAKE MONEY
1.11 INTRODUCTION OF DNS BANK
CHAPTER 2
WORKING CAPITAL MANAGEMENT
2.1 INTRODUCTION OF WORKING CAPITAL
2.2 WORKING CAPITAL POLICIES
2.3 NEED OF WORKING CAPITAL
MANAGEMENT
2.4 TYPES OF WORKING CAPITAL
2.5 DETERMINANTS OF WORKING CAPITAL
2.6 SHORT TERM FINANCING
2.7 RECEIVABLE MANAGEMENT
2.8 CASH MANAGEMENT
2.9 CASH FLOW
CHAPTER 3
DATA ANALYSIS & INTERPRETATION
CHAPTER 4
FINDINGS
LIMITATIONS
SUGGESTIONS

6
7

PAGE
NO.

1-21

22-34

35-39
40-43

CONCLUSIONS

8
9
10

ANNEXTURE
APPENDIX
BIBLIOGRAPHY & WEBLIOGRAPHY

44-45
46
47

Executive summary
Banking has been defined by Banking Regulation Act of 1948 as it is
accepting for the purpose of lending or investment of deposits from the public,
repayable on demand on otherwise and withdraw able by cheque, draft, orders or
otherwise.
.So, from this definition we can easily say that banking is a very complicated
process. In this complicated process to run the bank smoothly it is the primary duty
of a bank to take care of the working capital seriously, because the definition of
Working capital is defined as
The firms total investment in current assets or assets that it expects to be
converted into cash within a year or less
Management of working capital includes consideration for net working capital, by
managing current assets to current liabilities. This means organizations have to
factor in a certain amount of risk-return trade-offs in the decision making process.
If an organization does not increase their net working capital enough, they run
more of a risk of struggling to pay their bills. But if they increase the working
capital too much, they are taking away from the profitability of the organization. In
order to avoid problems, organizations have to make good decisions which
overlap, between current assets and how current liabilities are used.
Significance of the study:
The essence of the study is that the highest valued asset of a banking company is
its working capital which constitutes the major part of total capital of the banking
company.
It helps to know the current condition of the bank, the total amount of its current
assets, and the total amount of its current liabilities.

Objectives of the study:-

1. To understand the concept of working capital and its practical

applicability at DNS Bank.
2. To understand which policies of working capital is used in DNS
Bank.
3. To analyze the current ratio of DNS Bank.
4. To study the changes in working capital of DNS Bank.

Research Methodology
The methodology for the research study is descriptive and is as follows:Research approach: - Quantitative Research

Objective: - To know about Working capital management of DNS Bank.

Sampling:Following sampling is designed in order to execute the survey.
Sample unit: - Dombivli
Sample Size: - 1

Data collection tool:Secondary Data: - Secondary data collected from various websites, books.
Primary Data: - The primary data has been collected by structured
questionnaire. With the help of questionnaire collect response from Bank Manager.

Type of Questionnaire: - Structured Questionnaire.