A Project Report
On
“Study of assessment methods of working capital requirement”
For
“Bank of Maharashtra”

Executive Summery

IT GIVES ME GREAT PLEASURE TO PRESENT THIS PROJECT REPORT ON WORKING CAPITAL FINANCE AT BANK OF MAHARASHTRA, CREDIT DEPARTMENT, HEAD OFFICE, PUNE. THE PROJECT WAS CARRIED OUT FROM 1ST JUNE 2007 TO 31ST JULY 2007.

The main objective of the project was to study various types of working capital finance provided by banks. To know details the procedure of assessment of working capital finance extended by banks.

Wheels of business cannot move without money. Availability of money is being limited and wants being unlimited. So procurement of fund is one of the important functions in commercial & non-commercial enterprises and utilizes it for maximization of business profits.

Business enterprises need funds to meet their different types of requirements, i. Long-term requirement ii. Medium-term requirement iii. Short-term requirement Working capital requirement is the short-term requirement. Working capital is the investment needed for carrying out day-to-day operations of the business smoothly. Bank is one of the important sources of working capital requirement. Bank gives various facilities to the borrowers. In this project I have considered various banking facilities for the working capital finance to the industries. It covers almost important aspect relating to assessment & follow up of working capital finance. After discussing the procedure followed by bank, For assessing working capital requirement case studies have been given with necessary data in the prescribed forms demonstrate the calculable done by bank to arrive at maximum permissible bank finance. An inventory & receivables constitute the major portion of the total working capital requirement.