CHALLENGES IN WORKING CAPITAL MANAGEMENT IN COVID ERA: A STUDY ON BANK PROFITABILITY
Received: 19.06.2021; Revised: 28.07.2021, Accepted: 21.09.2021, Published Online: 26.10.2021
Faculty of Lingaya’s Vidyapeeth
The pandemic’s effects on the financial sector and global economy remain unknown. According to economists, we are on the approach of a severe economic downturn. The study’s primary thesis is that the banking system is under stress as a result of significant loan losses generated by large-scale insolvencies among corporations and families as a result of the worldwide economic slump triggered by the covid-19 crisis. As such, the study’s objective is to examine the difficulties associated with working capital management and the impact of working capital management on bank profitability in the Covid period. The study employs a descriptive research design. The research sample was collected from 100 bank branches using a simplified random sample process. The main quantitative information was obtained using standardized questionnaires self-administered. The data were analysed using descriptive statistics: frequency tables and one sample test and pie chart. The outcomes specify that all the considered factors, i.e., low sales-low cash, due receivables increasing, more staff need, short payments, and inventory information and turnover issues, are significant challenge for bank professionals in managing working capital during Covid. Business intelligence is a critical component of enabling business strategy, as it enables businesses to make educated choices and respond quickly to present and future business environment problems.
Keywords: Pandemic, Economy, Covid-19, Working Capital Management, Profitability.