Working Capital as concerned with the problems that arise to manage the current assets, the current liabilities and the inter-relationship that exists between them. Current assets are those assets which can be converted into cash within one year without undergoing diminution in value and without disrupting banks’ operation. Major current assets are cash, marketable securities, account receivable and inventory. Current liabilities are those which are intended to be paid in ordinary cause of business within a year out of earning of the banks. Working capital can also be classified in the form of gross working capital and net working capital. Gross working capital refers to the investment in current asset, while net working capital refers to excess of current assets over current liabilities. The success of banks depends upon effective working liabilities. The success of banks depends upon effective working capital management because than only one can utilize current assets and current liabilities in order to maximize profitability and liquidity of business.