EXECUTIVE SUMMARY The banking industry has shown tremendous growth in volume and complexity during the last

few decades .despite making significant improvements in all the areas relating to financial viability,profitability and competitiveness,there are concerns that banks have not been able to include vast segment of the population,especially the underpreviledged sections of the society,into the fold of basic banking services. This project report is based on the survey and practical work done by me for the completion of my summer training programme in jk bank ,..srinagar.the project is entitled working capital
management in j&k bank. This project is based on the study of working capital management in j&k bank,corporate office Srinagar.An insight view of the project will encompass what it is all about, what it aims to achieve, what is its purpose and scope, the various methods used for collecting data and their sources, including literature survey done, further specifying the limitations of our study and in the last, drawing inferences from the learning so far.

The life blood of business, as is evident, signified funds required for day-to-day operations of the firm. The management of working capital assumes great importance because shortage of working capital funds is perhaps the biggest possible cause of failure of many business units in recent times. There it is of great importance on the part of management to pay particular attention to the planning and control for working capital. An attempt has been made to make critical study of the various dimensions of the working capital managementof J&k bank .
This project tries to evaluate how the management of working capital is done in j&k bank Srinagar , through inventory ratios, working capital ratios, trends, computation of cash, inventory and working capital, and short term financing. Working capital is primarily concerned with inventories management, Receivable management, cash management & Payable management

INTRODUCTION OF BANKING INDUSTRY

What is a Bank
Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the backbone of modern business. Development of any country mainly depends upon the banking system. The term bank is derived from the French word Banco which means a Bench or Money exchange table. In olden days, European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging. A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it.

Characteristics / Features of a Bank 1. Dealing in Money Bank is a financial institution which deals with other people's money i.e. money given by depositors. 2. Individual / Firm / Company A bank may be a person, firm or a company. A banking company means a company which is in the business of banking. 3. Acceptance of Deposit A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its customers. 4. Giving Advances A bank lends out money in the form of loans to those who require it for different purposes.

5. Payment and Withdrawal A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts, etc. 6. Agency and Utility Services A bank provides various banking facilities to its customers. They include general utility services and agency services. 7. Profit and Service Orientation A bank is a profit seeking institution having service oriented approach. 8. Ever increasing Functions Banking is an evolutionary concept. There is continuous expansion and diversification as regards the functions, services and activities of a bank. 9. Connecting Link A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those who have surplus money and give the same to those who are in need of money. 10. Banking Business A bank's main activity should be to do business of banking which should not be subsidiary to any other business. 11. Name Identity A bank should always add the word "bank" to its name to enable people to know that it is a bank and that it is dealing in money.

ORIGIN OF BANKS IN INDIA

The banking industry is the backbone of any monetized economy. The stage of development of this industry is a good reflection of the development of the economy. The banking industry in India is governed by Banking Regulation Act of India, 1949. Since 1949, this sector has undergone phenomenal reforms due to the efforts and the vision of the policymakers. The first phase of reform began with nationalization of the 14 banks in 1969. At this stage, priority sectors were identified and banking support was given to them. The second phase was the nationalization of 6 more banks in 1980. However, what can be considered as a breakthrough in banking services was the entry to private sector banks which was initiated in 1993. Eight new banks entered the market at this stage with art technology and a brought with them a new wave of professionalism. It was at this time that India was introduced to the concept of Debit and Credit cards; e-transfer of funds, ATM. The Indian banking Industry is growing. Every bank is trying to have good client base. Every bank is providing lot of facilities to its customer e.g. iMobile banking, touch screen banking facility Banks in India can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. During the first phase of financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a shift from Class banking to Mass banking. Since then the growth of the banking industry in India has been a continuous process. As far as the present scenario is concerned the banking industry is in a transition phase. The Public Sector Banks (PSBs), which are the foundation of the Indian Banking system account for more than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks in India are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. . On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of the Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely to succeed in India.

APEX BANKING INSTITUTION

IDBI

NABARD

EXIM BANK

HB

NATIONAL HOUSING BANK

BANKING INSTITUTIONS

COMMERCIAL BANKS

REGIONAL RURAL BANKS

COOPERATIVE BANK

PUBLIC SECTOR BANKS.

PRRIVATE SECTOR BANKS

STATE COOPERATIVE BANK

STATE BANK

NATIONALIZED BANK

INDIAN BANKS

FOREIGN BANKS

CENTRAL DIST COOPERATIVE BANK

STATE BANK OF INDIA

SUBSIDARY COMPANIES SUBSIDARY BANKS

OLD BANKS

NEW BANKS

LOCAL BANKS

PRIMARY CREDIT SOCITIES

TYPES OF BANKS

ACC TO OWNERSHIP STRUCTURE

ACC TO LAW

ACC TO FUNCTION

PUBLIC SECTOR BANKS

PRIVATE SECTOR BANKS

COOPER ATIVE BANKS

SCHEDU LED BANKS

NONSCHEDU LED BANKS

AGRICUL TURE

COMM ERCIAL BANKS

CENTRAL BANKS

SAVING BANKS

INDUST RIAL BANKS

EXCHA NGE BANKS