Causal Relationship between Working Capital and Firm’s Profitability: Empirical Evidence from Indian Banking Sector

The impact of working capital on profitability in the Indian banking sector

Authors

  • Abhijeet Singh Chauhan

Keywords:

working capital, profitability, banking sector, capital formation, linear regression model

Abstract

The present research focuses on the study of working capital and its effect on the profitability of banking sector in India. As we know that working capital plays an important role in the capital formation of organizations and the same thing is apply for the banks also because the banks also have to maintain some sort of capital formation in order to remain profitable. For the completion of this research we have chosen top 10 BSE listed public and private sector banks from the available secondary data from 2006-2017. linear regression model was used in this research and it was found that working capital significantly impact the profitability of the banks.

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Published

2018-01-01

How to Cite

[1]
“Causal Relationship between Working Capital and Firm’s Profitability: Empirical Evidence from Indian Banking Sector: The impact of working capital on profitability in the Indian banking sector”, JASRAE, vol. 14, no. 2, pp. 174–177, Jan. 2018, Accessed: Oct. 18, 2025. [Online]. Available: https://ignited.in/index.php/jasrae/article/view/7191

How to Cite

[1]
“Causal Relationship between Working Capital and Firm’s Profitability: Empirical Evidence from Indian Banking Sector: The impact of working capital on profitability in the Indian banking sector”, JASRAE, vol. 14, no. 2, pp. 174–177, Jan. 2018, Accessed: Oct. 18, 2025. [Online]. Available: https://ignited.in/index.php/jasrae/article/view/7191