Cash Management Perfomance

Topics: Banking, Cash flow, Balance sheet Pages: 49 (12354 words) Published: March 7, 2013



1. Background of the Study

For having sufficient amount of capital, cash is the most important source of every aspect of investment. To improve the performance of the business as well as to introduce new business opportunity in the organization cash is very important. Since cash is the most powerful working capital component, the collection and payment of cash must be studied carefully.

Therefore, this project tries to show how cash is controlled and managed by taking United Bank S.Co. as a representative from the real world practice. United Bank S.Co. is a service giving organization. Its main activities are Commercial banking activities, encourage mobilization of savings, and encourage international banking activities-which is import & export, and provides loans & advances to the economic sectors.

United Bank S.Co. operates and mange’s it cash in many ways. United Bank S.Co. collects cash form it's customers in many ways and documents used for collections and also sources for cash are discussed. Cash management is very important factor in United Bank S.Co. because it mobilize so much amount of cash. Therefore, so as to achieve their organizational goal cash management is very much essential.

2. Statement of the Problem.

Mobilization of financial resource arises from the fact that the amount of financial resources for the purpose of productive investment is very low. In order to relieve financial constraints an investment; financial intermediaries are expected to play a decisive role in bringing about efficient ways of raising the required level of funds through the application of proper financial management system.

Now a days, in every developing countries the issue of economic development is the problem of managing scarce resources especially managing cash in an effective and efficient way for bringing a better economic growth of a country.

As it is known cash is the most important factor in banking operation it needs detailed management system. And in this study the researcher’s tries to answer the following basic question in cash management: • How does the bank control and mange it's cash?

• Does it have a good internal control over cash?
• Does the bank have procedures and policy manuals with regard to cash control and management? If so, does the bank’s personnel follow the procedures and policies set by the organization? • What measures should be taken for the future, if there is mismanagement over cash?

1.3. Choice of an Organization

United Bank S.Co. is taken as a representative for the project paper due to:- • Willingness from the company.
• Co-operation from the staffs.
• Availability of documents, manuals, handouts, & annual reports. • Having knowledge about the company and
• The topic that is studied has so much relationship with the company

4. Reason for Selecting the Topic

The researchers choose the company studied in the project is a bank i.e. United Bank S.Co. Uited Bank S.Co. is an intermediary financial institution that operates a banking services. In order to operate smoothly cash is the most important factor. Because of its nature and being most important component of the organization cash management of the organization must be studied in depth.

5. Objectives of the Study.

The over all objectives of the study are to assess the cash management performance of United Bank S.Co. And to find out the problems related with cash management.

1.5.1. General Objectives of the Study is:-

• To have a broader knowledge about cash management.
• To see the role of banks regarding cash management.
• To assess the procedures of cash management that should be followed. • To see practical aspects regarding cash management.
• To see whether there is a good internal control over cash or not?

1.5.2. Specific Objectives of the Study is:-

• To...
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