Role of working capital management in sustainable growth of Indian enterprises: a comparative perspective with SBI and HDFC bank
DOI:
https://doi.org/10.64171/JSRD.5.S1.227-231Keywords:
Working capital management, Sustainable growth, Indian enterprises, Banking sector, MSMEs, Financial performanceAbstract
Liquidation, efficiency and sustainable growth of Indian enterprises in the emerging markets are crucially dependent on the Working Capital Management (WCM). The research investigates the impact of WCM on sustainable growth of enterprise in India and also compares the facilities of financial assistance for both the banks like State Bank of India and HDFC Bank.
This study is descriptive-analytical with the secondary data sources which are the policy and banking documents, and existing literature. It evaluates the implications of working capital financing using various methods such as cash credit, overdraft, bill discounting, supply chain financing, and their advantages in cash flow management and enhancing business operations. The research demonstrates that the State Bank of India has a crucial function in promoting inclusive growth by providing credit facilities at affordable prices to MSMEs and rural businesses while also HDFC Bank's emphasis on efficiency and innovation, with its technology-driven financial services and its commitment to faster credit disbursal processes.
The study reveals that efficient WCM combined with robust banking support enhances liquidity, financial stability, resource allocation and profitability, which in turn, ensures sustainability. However, credit factors like cost of credit, credit delay and availability of credit are restraining as far as effective management of working capital is concerned. The research suggests that a holistic approach with a mix of effective internal WCM and dynamic and innovative banking support is crucial for sustainable growth of enterprises in India.
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