Vol. 6, Issue 2, Part D (2024)

Every business activity needs funds to function smoothly, the purpose of procuring funds from various sources can be utilised majorly for two purposes viz long run and short run operations of business. Long term is associated with production facilities such as purchase of fixed assets like plant, Machinery, land, building, furniture etc. on other hand short term finance is majorly utilised to meet the day to day operations of business activities. Short term finance is used for purchase of raw material, payment of wages and other expenses these funds are called as working capital of business. The objective of the present study is to study the concept of working capital management and components. Furthermore, to examine the working capital management practices of IDBI bank and its financial position. Data has been collected from secondary sources i.e, Financial statements of IDBI bank, capital line database, money control, IDBI bank website and authentic e-sources. The present study is descriptive research and ratio analysis is the accounting tool used to analyse the financial position of the IDBI bank and a sample of five financial year’s data from 2019-20 to 2023-24 has been utilised to determine the financial position of the company. The major limitation of the study is only secondary data has been considered excluded primary data. The outcomes of the study had revealed that IDBI bank has positive working capital which signifies short term liquidity position, during the study period the current ratio and net profit ratio is good which is healthy sign about IDBI bank financial position.