A SYNOPSIS REPORT

CASH MANAGEMENT
AT
STATE BANK OF INDIA

PROJECT SYNOPSIS SUBMITTED FOR

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

Submitted By
R. RAMYA REDDY
H.T.NO: 1415-20-672-058

Under the Guidance of

DR. SARMA RAMAM K S
ASSISTANT PROFESSOR

PENDEKANTI INSTITUTE OF MANAGEMENT

IBRAHIMBAGH
(Affiliated to Osmania University-2021-22).
 INTRODUCTION

CASH MANAGEMENT:
Cash in a business enterprise is important to strengthen the profits of the business
organization similar to that of the blood as is to human body that gives life and
strength to the human body. Cash is the beginning as well as the end of the operating
cycle of a manufacturing concern. It is the basic and it is the also the ultimate output
expected to be realized. Planning for cash requirements is an essential management
function of any business. A control of the cash position is a vital aspect of the
financial management of a concern. The objectives of the cash management are to
make the most effective use of funds on one hand accelerate the inflows and
decelerate the outflows of cash on the other. Cash management is a broad term that
refers to the collection, concentration, and disbursement of cash. The goal is to
manage the cash balances of an enterprise in such a way as to maximize the
availability of cash not invested in fixed assets or inventories and to do so in such a
way as to avoid the risk of insolvency. Factors monitored as a part of cash
management include a company's level of liquidity, its management of cash balances,
and its short-term investment strategies. A control of cash position is a vital aspect of
the financial management of a concern. The objective of the cash management are to
make the most effective use of funds on one hand and accelerate the inflows and
decelerate the outflows of cash on the other.

Definition: Cash management is the efficient collection, disbursement, and

investment of cash in an organization while maintaining the company’s liquidity. In
other words, it is the way in which a particular organization manages its financial
operations such as investing cash in different short-term projects, collection
of revenues, payment of expenses, and liabilities while ensuring it has sufficient cash
available for future use.

What Does Cash Management Mean

What is the definition of cash management? In the real world, organizations have
strict cash management controls to monitor its inflows and outflows while retaining a
sufficient amount in order to take advantage of attractive investments or handle
unforeseen liabilities. Efficient management of cash prevents loss of money due to
theft or error in processing transactions. Numerous best practices are adopted to
enhance management of company’s funds. This involves shortening of cash
collection periods, regular follow ups for collections, negotiation of favorable terms
with suppliers allowing delay in payment periods, and preparation of cash flow
forecasts. Businesses also use of technology to speed up cash collection process. They
must do all of this while maintaining adequate amount of funds to meet daily
operations.
Let’s take a look at an example.

A computer manufacturing company, Techno Ltd., uses supplier Beta & Co. to
purchase its core materials. Beta & Co. has the policy of allowing its customers who
buy on credit to pay within 30-days period.
At the moment Techno Ltd. has $20 million cash resources available and has to pay
$5 million to Beta & Co. after 30-day period for the purchases. However, after 30-day
period Techno Ltd. has an investment opportunity requiring use of the full $20
million cash resources. If the company is able to renegotiate its terms with suppliers
allowing 60-day period, the delay in payment will allow the company to benefit by
using current funds for the investment and paying suppliers with cash generated next
month from other projects. Thus, by properly managing its funds, Techno can take
advantage of investment opportunities while maintaining its operations.

Define Cash Management: Cash management means a company’s ability to allocate

its funds efficiently in an effort to cover operating expenses, make investments,
repay shareholders, and maintain adequate reserves.
 NEED OF THE STUDY
 Many business owners disregard the importance of cash flow statements because they
unwittingly believe that their current financial Standing can be construed from other
financial reports and projections. Unfortunately, however, a cash flow statement is
necessary to adequately assess the inflows and outflow of cash and other resources in
a business.
 Not only a business owner with a cash flow system will be more aware of his or her
financial Standing, but it will also help investors to make educated decisions on
future investments. A business with regular and reliable cash flow statements shows
more economic solvency.
 A cash flow Statement documents the inflow and outflow of cash in plain terms.
Future Sales and Sales made for credit (unless they have been paid off) are not
included in the cash flow Statement, and most of the data will come from core
operations. Payables and receivables should be expressly defined, as should
depreciation of product value and inventory that has not yet been moved.
 This will allow a business owner to compare past periods with the current financial
standing and determine whether your receivables have increased or decreased.
 This can also help to track your investments next to your receivables and payables.
Are your Investments increasing or decreasing in value? And has your inventory
moved at a steady pace? New or expanding businesses can expect to see a decrease
in cash flow, but this doesn’t mean that the Business is going under. More stables
businesses should see a steadily increase in cash flow Over a period of several
months or years.
 OBJECTIVES OF THE STUDY

 To Study the role of Cash Management in SBI

 To Study the cash inflows and cash outflows of SBI
 To identify opportunities for enhancing efficiencies in the cash management
function.
 To evaluate the performance of the bank under study in relation to the sources
of cash.
SCOPE OF THE STUDY

 Since it will not be possible to conduct a micro level study of all Banking industries
in Telangana, the study is restricted to SBI only.

 The study is need to know how cash is managed in different fields like deposits,
investments, loans.

 The study is conducted to know how effectively and efficiently cash is managed in
the bank by Investing and lending to different Sources.
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:
Research is systematic process of collecting and analyzing information (data) in
order to increase our understanding of the phenomenon about which we are
concerned or interested. A Research Design is the framework or plan for a
study. It is the blue print that is followed in completing the study. The basic
objective of research cannot be attained without a proper research design. It
specifies the methods and procedures for acquiring the information needed to
conduct the research effectively. It is the overall operational pattern of the
project that stipulates what information needs to be collected, from which
sources and by what methods.

Secondary data:
The Secondary Sources of data include information available on Bank’s site, Cash
flow Statements, Annual reports. Profit and Loss A/C, Balance Sheet.
 LIMITATIONS OF THE STUDY

 The information which was collected regarding Cash Management is restricted only
to SBI .
 The information which is collected is mostly through secondary data and it is only for
5 years.
The study was carried out for a period of 45 days and due to paucity of time in depth
study was not possible
 COMPANY PROFILE

STATE BANK OF INDIA

Not only many financial institution in the world today can claim the
antiquity and majesty of the State Bank Of India founded nearly two
centuries ago with primarily intent of imparting stability to the
money market, the bank from its inception mobilized funds for
supporting both the public credit of the companies governments in
the three presidencies of British India and the private credit of the
European and India merchants from about 1860s when the Indian
economy took a significant leap forward under the impulse of
quickened world communications and ingenious method of
industrial and agricultural production the Bank became intimately in
valued in the financing of practically and mining activity of the
Sub- Continent Although large European and Indian merchants and
manufacturers were undoubtedly thee principal beneficiaries, the
small man never ignored loans as low as Rs.100 were disbursed in
agricultural districts against glad ornaments, added to these the bank
till the creation of the Reserve Bank in 1935 carried out numerous
Central – Banking functions.

Adaptation world and the needs of the hour has been one of the
strengths of the Bank, in the post depression exe. For instance –
when business opportunities become extremely restricted, rules laid
down in the book of instructions were relined to ensure that good
business did not go post. Yet seldom did the bank contravene its
value as depart from sound banking principles to retain as expand
its business. An innovative array of office, unknown to the world
then, was devised in the form of branches, sub branches, treasury
pay office, pay office, sub pay office and out students to exploit the
opportunities of an expanding economy.

New business strategy was also evaded way back in 1937 to render
the best banking service through prompt and courteous attention to
customers.

A highly efficient and experienced management functioning in a

well defined organizational structure did not take long to place the
bank an executed pedestal in the areas of business, profitability,
internal discipline and above all credibility A impeccable financial
status consistent maintenance of the lofty traditions if banking an
observation of a high Standard of integrity in its operations
helped the bank gain a pre- eminent status. No wonders the
administration for the bank was universal as key functionaries of
India successive finance minister of independent India Resource
Bank of governors and representatives of chamber of commercial
showered economics on it.
Modern day management techniques were also very much evident
in the good old day’s years before corporate governance had
become a puzzled the banks bound functioned with a high degree of
responsibility and concerns for the shareholders. An unbroken
record of profits and a fairly high rate of profit and fairly high rate
of dividend all through ensured satisfaction; prudential management
and asset liability management not only protected the interests of
the Bank but also ensured that the obligations to customers were
not met. The traditions of the past continued to be upheld even to
this day as the State Bank years it to meet the emerging challenges
of the millennium

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world of banking services meets the ever-changing customer’s
needs and establishes a link that is like a circle, it indicates complete
services towards customers. The logo also denotes a bank that it has
prepared to do anything to go to any lengths, for customers. The
blue pointer represent the philosophy of the bank that is always
looking for the growth and newer, more challenging, more
promising direction. The keyhole indicates safety and security.
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MISSION, VISION AND
VALUES
MISSION STATEMENT:
To retain the Bank’s position as premiere Indian Financial Service
Group, with world class standards and significant global committed
to excellence in customer, shareholder and employee satisfaction
and to play a leading role in expanding and diversifying financial
service sectors while containing emphasis on its development
banking rule.