ASSESSMENT OF WORKING CAPITAL MANAGEMENT OF NIB INTERNATIONAL BANK (A CASE IN GUBRE BRANCH)

Abstract

The study was under taken on assessment of working capital management of Nib International Bank in Gubre branch. The overall objective of the study was to evaluate the working capital management of bank in case Gubre branch. The major area that the study concerned was evaluating what the efficiency and effectiveness of working capital management in Nib International Bank in Gubre branch was. To accomplish the designated objective, the researchers used research methodology that comprised different sub sections. In this study both primary and secondary source of data were used. The primary data was collected through both open ended and close ended questionnaires to collect date from the employees. The secondary data was collected from annual report of the bank. And also the researchers used descriptive method of data analyzing. From a total population 20 employees in Nib international bank in Gubre branch. The researchers took 14 employees as sample size by using judgmental sampling techniques. The data gathered was analyzed and interpreted by using descriptive statically methods like percentage and ratios. And also the data was presented by using tables. The main finding in this research under study networking capital showed the greater margin by which banks current asset covers its short term obligation and cash ratio showed the Nib International Bank cannot cover its short term obligation. It should be advisable if bank should have adequate amount of cash balance by reducing the amount of investment investing on long term assets. To have sufficient working capital the responsible person of the bank should be developing sound techniques of managing current assets.