Abstract: Commercial banks ensure their short-term solvency through handling cash management issue precisely. Financial performance of commercial banks may be manipulated through check and balance in cash management. The prime aim of this research is to check out the effect of cash management on financial performance of commercial banks in Bangladesh. Tobin’s Q is the proxy of financial performance of commercial banks in Bangladesh that also explained variable in current study. Cash flows from operating activities to total assets , cash flows from investing activities to total assets, cash flows from financing activities to total assets positively and year ended cash balance to total assets are explanatory variables which are the proxy of cash management of commercial banks in Bangladesh. Besides this, size, age and leverage of commercial banks are also incorporated as control variables in present study. E-views 12 is used for analyzing the collected data. Result outline that value of the R Square (R2) is 0.3983 which means explanatory variables able to explain 39.83% variation of commercial banks performance (Tobin’s Q) in Bangladesh. Cash flows from financing activities to total assets positively (0.045964) and year ended cash balance to total assets (0.361641) negatively impact on commercial banks performance in Bangladesh to what end are empirically noteworthy at 5% and 1% level successively. So researcher suggests that commercial banks in Bangladesh should prudently manage cash for uplifting their financial performance.