International Journal of Advanced Research in Computer and Communication Engineering

Abstract: Working capital management (WCM) is a crucial determinant of a bank’s short-term financial health, efficiency, and long-term sustainability. This study examines the working capital management of HDFC Bank over a decadal period (2015–2025) using data extracted from its published annual reports. The analysis incorporates liquidity indicators such as the Cash-Deposit Ratio (CDR), Credit-Deposit Ratio (CD Ratio), Liquidity Coverage Ratio (LCR), Net Working Capital (NWC), Current Ratio, and Quick Ratio. Findings reveal that HDFC Bank consistently maintained robust liquidity buffers while ensuring efficient credit deployment, balancing stability and profitability. The results further highlight how external shocks, particularly the COVID-19 pandemic, temporarily altered liquidity strategies, leading to higher reserves and moderated lending growth. Overall, HDFC Bank demonstrated resilience and financial prudence, aligning with Basel III liquidity standards and Reserve Bank of India’s regulatory requirements. The study carries practical implications for policymakers, regulators, and financial managers in designing effective liquidity policies that promote stability while safeguarding profitability in the banking sector.

Keywords: Working Capital Management, Liquidity Analysis, HDFC Bank, Financial Performance, Decadal Study (2015–2025), Current Ratio and Quick Ratio, Indian Banking Sector.

Downloads: | DOI: 10.17148/IJARCCE.2025.14813