Any competent financial manager should prioritise increasing the company's net worth for the benefit of its shareholders. Because of this, he has to make calculated choices so that his assets and liabilities are always optimal. In the simplest terms, a company's working capital consists of all of its liquid assets that are used in the normal course of business. To analyse how working capital is important and significant and affect the profitability of different banks. In the analysis, 150 managers of banks based in India were the target community. These 150 branch branches comprised the same number, i.e. 50 private banks, 50 public banks and 50 international banks. Of the 150 bench divisions, the research sample was collected from 100 bank branches using a simplified random sample process. The optimal level of working capital is reached when both profitability and liquidity are maximised. It's important to keep in mind that although spending too much on working capital might hurt a bank's bottom line, not having enough can put you at danger of not being able to pay your bills. Because of this, working capital is seen as a reliable management tool for ensuring long-term success.