This study aims to identify and compare operating capital management practices in the public and private sectors of India. Operating capital management is essential to assuring the liquidity and operational efficiency of banking institutions, particularly in a dynamic financial environment. The study assesses key components such as current assets, current liabilities, liquidity relationships, and overall efficiency of the assets amounts of selected banks from both sectors. Using a combination of financial analysis and comparison methods, this study identifies patterns, strengths, and weaknesses in short-term financial resources treatment. The results show significant differences in the approaches pursued by public and private banks, influenced by factors such as ownership structure, regulatory restrictions, risk appetite, and surgical flexibility. This paper concludes with recommendations to improve the efficiency and financial performance of operating capital in both sectors.