LIQUIDITY ANALYSIS OF NEPAL BANK

A Project Work Report

By :

Sujata Nepal

Symbol No: 702840107

T.U Registered No: 7-2-284-463-2020

Gramin Adarsha Multiple Campus

Nepaltar, Kathmandu

Submitted To :

Office of Controller of Examination

The Faculty of Management

Tribhuvan University

Kathmandu

In Partial fulfillment of the requirements for the degree of

Bachelor of Business Management (BBS)

June, 2025
 DECLARATION

I hereby declare that the project work report entitled “Liquidity

Position or Analysis of Nepal Bank Limited”, which is submitted to
Gramin Adarsha Multiple Campus, Faculty of Management,
Tribhuvan University, is my original piece of work carried out under
the supervision of Mrs. Abha Subedi

This report is submitted in partial fulfillment of the requirements for

the award of the degree of Bachelor of Business Studies (BBS). I
further confirm that this report has not been submitted to any other
university or institution for the award of any degree or diploma.

…………….

Sujata Nepal

June, 2025

GRAMIN ADARSHA MULTIPLE CAMPUS

(TU & NEB Affiliate)

Estd: 2051 B.S.
Tarakeshwor – 11, Nepaltar, Kathmandu
Tel: 01-4381704
P.O. Box No.: 23683
Email: graminadarsha@gmail.com
Website: www.graminadarsha.com
 SUPERVISOR'S RECOMMENDATION

I hereby certify that the project report entitled “Liquidity Position or

Analysis of Nepal Bank Limited”, prepared by Sujata Nepal (TU
Exam Symbol No. 702840107) under my supervision, is an original
work carried out in partial fulfillment of the requirements for the degree
of Bachelor of Business Studies (BBS).

I recommend that this report be accepted and forwarded for evaluation

............................

Signature

Abha Subedi

Gramin Aadarsha Multiple College

Nepaltar, Kathmandu

June, 2025
 ENDORSEMENT

We hereby endorse the project report entitled “A Case Study on Liquidity Analysis of Nepal Bank
Limited”, submitted by Sujata Nepal of Gramin Adarsha Multiple Campus, as a partial
fulfillment of the requirements for the degree of Bachelor of Business Studies (BBS).
This report is submitted for external evaluation.

------------------------- -------------------------
Mrs. Abha Subedi Mr. Rajendra Dhoj Thapa
Head of Research Department Campus Chief
Gramin Adarsha Multiple Campus Gramin Adarsha Multiple Campus
 ACKNOWLEDGEMENT

This report is submitted in partial fulfillment of the requirements for the Bachelor of
Business Studies (B.B.S) under Tribhuvan University, Nepal. I am grateful to all
who supported me during its preparation.

I would like to express my sincere thanks to my advisor, Mrs. Abha Subedi, Lecturer
at Gramin Adarsha Multiple Campus, for her valuable guidance and encouragement
throughout this project.

My appreciation also goes to the staff of Nepal Bank Limited for their cooperation
and assistance during the research process. Special thanks to all respondents and
informants for sharing their time and insights.

Thank you,

Sujata Nepal

June, 2025
TABLE OF CONTENTS
1. Title Page
2. Declaration
3. Supervisor’s Recommendation
4. Endorsement
5. Acknowledgements
6. Table of Contents
7. List of Tables
8. List of Figures
9. Abbreviations

Chapter I: Introduction

1.1 Background of the Study

1.1.1 The Banking in Nepal
1.1.2 List of Commercial Banks in Nepal
1.1.3 Functions of Commercial Banks
• Agency Functions
1.2 Introduction of Nepal Bank Limited
• Vision, Mission, Value, and Ethics
1.2.1 Strategies and Future Plans of Nepal Bank
1.3 Statement of the Problems
1.4 Objectives of the Study
1.5 Rationale of the Study
1.6 Review of Literature
1.6.1 Conceptual Framework
• Liquidity Assets
• CRR and SLR
• Importance, Need, Demand, and Supply of Liquidity
• Criteria for Measuring Liquidity

● Liquidity Requirement with NRP

● Penalty and Applicable Rates
1.6.2 Review of Previous Research
1.7 Research Methodology
• Research Design
• Population and Sample
• Data Collection Methods
• Data Analysis Tools
1.8 Limitations of the Study

Chapter II: Results and Analysis

2.1 Data Presentation

2.1.1 Different Segments of Deposits in NBL
2.1.2 Savings Deposit to Total Deposit Ratio
2.2 Major Findings

Chapter III: Summary and Conclusion

3.1 Summary
3.2 Conclusion

References

Appendices

• Deposit Data (2018/19 – 2022/23)

• Liquidity Ratios (5-Year Trend)
• Internship Notes
 ABBREVIATIONS

❖ ABBS - Any Branch Banking Service

❖ ADB - Agricultural Development Bank
❖ ATM -Automated Teller Machine

❖ BBS - Bachelor of Business Studies

❖ CD - Certificate of Deposit
❖ CRR - Cash Reserve Ratio
❖ FY - Fiscal Year
❖ GNP - Gross National Product
❖ ICT - Information and Communication Technology
❖ KYC - Know Your Customer
❖ M - Million
❖ NBL - Nepal Bank Limited
❖ NIC - National Industrial Corporation
❖ NRB - Nepal Rastra Bank
❖ NRs - Nepalese Rupees
❖ POS - Point of Sale
❖ QR - Quick Response
❖ RTGS - Real-Time Gross Settlement
❖ SLR - Statutory Liquidity Ratio
❖ SCT - Smart Choice Technologies
❖ TU - Tribhuvan University
❖ USD - United States Dollar
 CHAPTER – 1

INTRODUCTION

1.1. Background of the Study

Generally, A bank is a financial institution that accepts deposits, provides loans, and
offers a range of financial services. Commercial banks, in particular, manage various
types of deposit accounts—such as checking, savings, and fixed deposits—and
primarily focus on mobilizing funds and providing credit to businesses and individuals.
These institutions operate for profit and are often privately owned, though some may
be affiliated with central banking systems.

Banks play a crucial role in economic development by acting as intermediaries

between savers and borrowers. They collect small savings from the public, consolidate
these funds, and channel them into productive sectors of the economy. In doing so,
they contribute to capital formation, employment generation, and overall economic
growth.

Scholars have defined banking in various ways. One common definition views a bank
as a "factory of credit"—an institution that does not produce physical goods but instead
creates credit through the acceptance of deposits and issuance of loans. According to
C.R. Crowther, "A bank collects money from those who have it to spare or who are
saving it out of their income, and lends this money to those who require it."

In summary, a bank is a vital component of a nation's financial infrastructure. It

mobilizes idle funds and allocates them to areas where they are most needed for
economic advancement. This study aims to explore the liquidity position of Nepal
Bank Limited and will be valuable to students, researchers, and professionals
interested in the banking sector.

1.1.1. The Banking in Nepal:

In the historical context of Nepal, as in many other countries, goldsmiths and landlords
were among the earliest practitioners of banking. Prior to the 8th century (around 780
B.S.), money lending was already in practice. During this time, people were often
 exploited by moneylenders known as Shahu Mahajans, who charged high compound
interest rates.

One notable early instance of organized financial activity dates back to the reign of
King Gunakamdev, who is credited with reconstructing the Kathmandu Valley by
borrowing funds from the government. Recognizing the need for a more formal
financial system, the government established Tejarath Adda, an early form of
financial institution. It provided loans to government employees at a 5% interest rate,
secured against assets like gold and silver, and also handled salary disbursements.

To meet the country's growing credit needs, Rastriya Banijya Bank, Nepal’s first
commercial bank, was established on 10th Bhadra, 2022 B.S. It aimed to promote
economic welfare and provide broader access to banking services. This was followed
by the establishment of Nepal Agricultural Development Bank, focusing on
improving agricultural financing. Institutions such as the Industrial Development
Bank and Nepal Industrial Development Corporation were founded in 2016 B.S.
and 2024 B.S. respectively, to support industrial and agricultural sectors.

The liberalization of Nepal’s financial sector began under the guidance of Nepal
Rastra Bank, the central bank. As part of this policy, joint venture banks were
allowed to operate in the country to encourage modernization, competition, and
efficiency among domestic banks. The first such joint venture, Nepal Arab Bank Ltd.,
was established in 2041 B.S.

As of mid-July 2025, Nepal’s financial landscape includes:

● 20 Commercial Banks
● 17 Development Banks
● 17 Finance Companies
● 52 Microfinance Financial Institutions
(All licensed by Nepal Rastra Bank)
1.1.2. List of Commercial Banks in Nepal:

The commercial banking development in Nepal is not very old. It has gone through different
stages, during the PM Rano dip Sigh around 1972 A.D.Agriculture Development Bank Ltd.
Here’s the up-to-date list of Class ‘A’ Commercial Banks in Nepal, licensed by Nepal Rastra
Bank (as of mid‑2025):
1. Agriculture Development Bank Ltd
 2. Citizens Bank International Ltd.
3. Everest Bank Ltd.
4. Global IME Bank Ltd.
5. Himalayan Bank Ltd.
6. Kumari Bank Ltd.
7. Laxmi Sunrise Bank Ltd.
8. Machhapuchhre Bank Ltd.
9. Nabil Bank Ltd.
10. Nepal Bank Ltd.
11. Nepal Investment Mega Bank Ltd.
12. Nepal SBI Bank Ltd.
13. NIC Asia Bank Ltd.
14. NMB Bank Ltd.
15. Prabhu Bank Ltd.
16. Prime Commercial Bank Ltd.
17. Rastriya Banijya Bank Ltd.
18. Sanima Bank Ltd.
19. Siddhartha Bank Ltd.
20. Standard Chartered Bank Nepal Ltd.

Nepal Arab Bank Limited was the first joint venture bank which was established with
the joint venture of Arab Bank Emirates in 1984. In 1986, Nepal Grind lays Bank

Limited (now Chartered Bank Limited) entered the Nepali financial market as a joint
venture with ANZ-Grind lays.

1.1.3. Functions of Commercial Banks:

1. Accepting Deposits: Provide safe accounts such as savings, current, and fixed
deposits.
2. Providing Loans: Offer credit facilities like personal loans, overdrafts, and business
loans.
3. Credit Creation: Create money in the economy by lending more than the deposits
received.
4. Facilitating Payments: Handle cheque clearing, fund transfers, and payment
collections.
5. Supporting Trade: Provide letters of credit and foreign exchange services for
domestic and international trade.
6. Digital Banking: Offer internet, mobile banking, and ATM services for easy access.

7. Safekeeping: Provide locker facilities for valuables.

Agency Functions

Commercial banks act as agents for their customers by providing various services such as:

● Collecting and paying cheques and bills on behalf of customers

● Making payments like taxes, insurance premiums, and utility bills
● Acting as trustees, executors, or representatives for clients in financial matters
● Managing investments, dividends, and interest payments

In short, banks handle financial tasks for customers, making transactions easier and
more efficient.

1.2. Introduction of Nepal Bank Limited

Nepal Bank Limited (NBL) is the first and oldest commercial bank in Nepal, established in 1994
B.S. (1937 A.D.). It was founded with the primary objective of promoting economic
development by providing banking and financial services across the country. As a government-
owned institution, NBL played a pioneering role in introducing modern banking practices in
Nepal and has been a key player in mobilizing savings and extending credit to various sectors.

Over the years, Nepal Bank Limited has expanded its network with numerous branches
nationwide, offering a wide range of services including deposit accounts, loans, remittance, and
trade finance. Despite facing competition from new private and joint venture banks, NBL
continues to serve as an important institution in Nepal’s financial sector, focusing on supporting
economic growth and financial inclusion.

Vision, Mission, Value and Ethics

Nepal Bank Limited envisions itself as a "Pioneer bank with customer service excellence",
striving to be the leading financial institution in the country. This vision reflects the bank’s
commitment to:

● Leading the Nepali banking sector

● Delivering superior, customer-centric services
● Offering complete and innovative banking solutions
 Mission Statement:

● Build trusted and unified customer relationships

● Ensure superior quality customer service
● Provide Service access for all, including rural and underserved segments

● Foster Technology-driven smart banking solutions

Core Values and Ethical Principles:

● Honesty, transparency, integrity & ethics
● Respect — for both customers and fellow associates
● Learning & knowledge sharing
● Teamwork, ownership & accountability
● Contribution to society and the environment.

1.2.1. Strategies and Future Plans of the Nepal Bank

Branch & Network Expansion

● NBLBranch Network:
NBL currently operates over 200 branches (203 as of its 84th anniversary)
and plans to open at least 11 more this fiscal year, aiming to serve all 77
districts of Nepal.
● Digital Transformation:
The bank has implemented core banking software and provides services such
as Internet/Mobile Banking, QR payments, ATM, RTGS, ConnectIPS, POS,
and online account opening. It is also working on loan approvals through
electronic systems.
● Governance, Culture & Risk Management:
Following recent reforms, NBL emphasizes strong institutional governance,
clear policies, a customer-focused culture, and enhanced risk management,
internal audit, and compliance frameworks.
● Human Resources & Technology:
NBL boasts a young, tech-savvy workforce recruited via merit-based exams,
offering continuous training and investing heavily in technology to improve
operational efficiency.
 ● Corporate Strategy Framework: (According to Shyam Kumar K.C.)
➔ Drive business growth and profitability
➔ Strengthen HR and organizational effectiveness
➔ Embrace technology and enhance digital customer engagement
➔ Improve operational efficiency and customer service
➔ Enhance asset management
● Strategic Planning Culture:

Regular budget seminars and strategic reviews help align departmental goals with

overall fiscal targets, ensuring a structured and focused approach to growth.

1.3. Statement of the Problems

Liquidity Liquidity management is essential for the financial stability and smooth operation of
any commercial bank. Insufficient liquidity can hinder a bank’s ability to meet short-term
obligations, damaging customer trust and regulatory compliance. On the other hand, excess
liquidity may lower profitability by limiting income-generating opportunities.

Nepal Bank Limited (NBL), the oldest and one of the largest banks in Nepal, holds a prominent
position in the national financial system. However, operating in a developing economy presents
challenges such as economic volatility, regulatory changes, and rising competition. Despite
recent reforms and digital progress, concerns persist about whether NBL maintains an optimal
liquidity position that balances risk, return, and regulatory compliance.

This study, therefore, addresses the central question:

How effectively is Nepal Bank Limited managing its liquidity to ensure financial stability
and operational efficiency?Sub-problems include:

● What do key liquidity ratios reveal about NBL’s performance over recent years?
● Is NBL’s liquidity management aligned with Nepal Rastra Bank (NRB) guidelines?
● What are the risks and opportunities associated with NBL’s current liquidity position?

1.4. Objectives the Study

The primary objective of this study is to analyze the liquidity position of Nepal Bank Limited
(NBL) and assess how effectively the bank manages its short-term financial obligations.
 Specific Objectives:

● To examine key liquidity ratios (e.g., current ratio, quick ratio, cash ratio) of Nepal Bank

Limited over a selected period.

● To evaluate the bank’s compliance with liquidity-related guidelines set by Nepal Rastra
Bank(NRB).
● To identify trends and patterns in the bank’s liquidity management practices.
● To assess the impact of liquidity position on the overall financial performance of NBL.
● To suggest possible measures for improving liquidity management based on findings.

1.5. Rationale of the Study

Liquidity management is a vital aspect of banking operations that directly impacts a

bank’s stability, customer confidence, and profitability. In the case of Nepal Bank
Limited, which holds a significant position in Nepal’s banking sector, understanding
its liquidity status is crucial due to the evolving economic environment, regulatory
changes, and increased market competition.
1.6. Review of Literature

Several studies highlight the importance of liquidity management for Nepal Bank
Limited (NBL). Research shows that NBL maintains a strong liquidity position but
faces challenges balancing liquidity with profitability. Key liquidity ratios like the
credit-to-deposit ratio and statutory liquidity ratio indicate that NBL complies with
regulatory requirements and holds a healthy liquidity buffer. However, fluctuations in
liquidity levels suggest the need for improved management practices to sustain
financial stability and growth.
 1.6.1. Conceptual Framework

The conceptual framework illustrates the relationship between liquidity management and the
financial performance of Nepal Bank Limited. It highlights how various liquidity ratios and
factors influence the bank’s ability to meet short-term obligations, maintain regulatory
compliance, and achieve profitability.

Input / factors Liquidity of management Outcomes

Cash and cash equivalents Liquidity Ratios (Current ratio) Financial Stability

Short term investment Quick ratio, Cash ratio, CRR, Operational Efficiency
SLR)

Deposit inflows and withdrawals Compliance with NRB liquidity Profitability

norms

Loan disbursement and Asset-Liability Management Customer Confidence

repayments

Regulatory requirements (NRB, Risk Mitigation

Basel III)

1.6.1.1. Liquidity Assets:

The assets which can be converted into cash immediately or without a nominal loss of
value. Liquidity assets include cash in the form of treasury bills, investments in
government securities, gold and silver, inventories and marketable securities etc.

1.6.1.2. Cash Reserve Ratio (CRR)

Central banks the world over make banks maintain a certain level of liquidity to total
deposit liabilities in the form of cash and bank balance. This ratio is known as the cash
reserve ratio.
 1.6.1.3. Statutory Liquidity Ratio (SLR)

The central bank orders the banks to maintain a certain level of liquidity to total
deposit liabilities in the form of cash and bank balance and treasury bills and
government securities and bonds. Such a liquidity requirement is called the statutory

liquidity ratio.

1.6.1.4. Importance of Liquidity for the Bank

The liquidity is important for the bank for the motives cited as follows:

● Transaction motive
● Speculative motive
● Precautionary motive

1.6.1.5. Need of Liquidity for the Bank

• To meet the expenses for the bank’s administrative works.

• To meet the demand of depositors on demand.

• To repay the debt.

• To provide the security to the bank.

1.6.1.6. Demand for Liquidity

• Withdrawal of customer deposit.

• Acceptable loan request.

• Repayment of non-deposit borrowing.

• Payment of interest on deposit.

• Payment of dividends.

• Miscellaneous liabilities.

1.6.1.7. Supply of Bank Liquidity

• Capital issues

• Retained earnings
 • Borrowings

• Bond issue

• Repayments of loans

• Other incomes

1.6.1.8. Criteria of Measuring Bank Liquidity

• Criteria of measuring the bank liquidity denotes:

• Attributes required for being bank liquidity

• Compliance test of liquidity requirement

1.6.1.9. Liquidity to Be Maintained with the Central Bank

In order to maintain liquidity as per the central bank's instruction, it is required for
commercial banks to maintain liquidity as under:

Cash Reserve Rate (CRR)– 4% and Statutory Liquidity Ratio (SLR). 12%

1.6.1.10. Penalty for Non-Compliance

PenaltyNepal Rastra Bank (NRB) imposes penalties on banks that fail to maintain the
required liquidity levels, based on the following conditions:
● Case 1: Shortfall in NRB Balance Only (Cash above 2%)
If a bank maintains cash reserves above 2% but fails to maintain the required balance with
NRB, the penalty is imposed on the shortfall amount in the NRB balance.
● Case 2: Shortfall in NRB Balance (Both above and below 2%)
If the balance maintained with NRB is either just above or below the 2% threshold, the
shortfall—up to 1%—is adjusted by adding any excess. The penalty is then applied to the
remaining shortfall amount.
● Case 3: Combined Shortfall in Cash and NRB Balance
If the bank fails to maintain both the required cash reserve and the balance with NRB, the
penalty is imposed on the total combined shortfall.
1.6.1.11. Applicable Penalty Rates:
Shortfall Type Penalty Rate

1. First shortfall Equivalent to bank rate/highest

refinance (currently 5.5%)

2. For second time shortfall Equivalent to 2 times of bank rate

3. For third time shortfall and all Equivalent to 3 times of bank rate
subsequent shortfalls

The penalty is imposed on the shortfall amount on a weekly basis.

1.6.2 Review of Previous Research

Various studies have examined liquidity management in Nepalese commercial banks,

highlighting its importance for financial stability and profitability. Research by Neupane and
Sapkota (2025) shows liquidity ratios significantly affect bank profitability, stressing the need for
balanced liquidity. Studies on Nepal Bank Limited reveal that while the bank maintains a strong
liquidity position and complies with regulatory requirements, it faces challenges in optimizing
liquidity to maximize profits.
Other research points to fluctuations in liquidity indicators over time, indicating room for
improved liquidity monitoring and management practices. Overall, previous research underscores
that effective liquidity management is critical for sustaining Nepal Bank Limited’s operational
efficiency and customer confidence.

1.7 Research Methodology

The research which is used in the research is called research methodology. How the
data is collected and which source the research uses for getting the data is under the
research methodology. Research methodology covers the data analysis tools as well.
1.7.1. Research Design
The research design for analyzing the liquidity position of Nepal Bank Limited is descriptive
and analytical in nature. It aims to systematically examine and interpret the bank’s liquidity
management practices over a specific time period.

● Descriptive Aspect: The study will describe NBL’s liquidity status by calculating key

liquidity ratios such as current ratio, quick ratio, cash ratio, and statutory liquidity ratio. It
will provide a clear picture of how the bank manages its liquid assets and short-term
obligations.

● Analytical Aspect: The study will analyze trends and patterns in these liquidity ratios
over a 5-year period to assess the effectiveness and stability of NBL’s liquidity
management. It will also compare the bank’s performance against regulatory benchmarks
set by Nepal Rastra Bank (NRB).

● This design facilitates an objective evaluation of NBL’s liquidity position, helping

identify strengths, weaknesses, and areas for improvement.

1.7.2 Population and Sample

Population :- The population of this study includes all the financial and operational data of
Nepal Bank Limited relevant to liquidity management. This primarily consists of the bank’s
annual financial statements, balance sheets, cash flow statements, and other related reports
published over recent years.

1.7.3 Data Collection Method

During my internship at Nepal Bank Limited (NBL), I had direct access to the bank’s internal
documents and financial records related to liquidity management. The data collection for this
study was primarily based on:
Primary Data:

● Observations and notes gathered during my internship at NBL, which provided firsthand
insights into the bank’s liquidity management practices and operational procedures.
● Informal discussions with bank staff and managers involved in liquidity monitoring.

Secondary Data:

● Official financial statements, annual reports, and liquidity-related records obtained from
the bank’s internal databases during the internship period.
● Additional information from published reports by Nepal Rastra Bank (NRB) and other
credible sources.

● This combination of primary and secondary data allowed for a comprehensive

understanding and accurate analysis of NBL’s liquidity position.

1.7.4 Data Analysis Tools

• Financial Tools

• Statistical Tools

1.8 Limitation of the Study

This study is simply conducted for the partial fulfillment of the requirement for the degree of the
Bachelor in Business Studies (BBS). And only the secondary data is used in this research which
could not disclose the actual result.
 CHAPTER – 2

RESULTS AND ANALYSIS

The liquidity analysis of Nepal Bank Limited over the past five years indicates that the
bank has maintained a healthy liquidity position, consistently meeting regulatory
requirements such as the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio
(CRR). Key liquidity ratios like the current ratio, quick ratio, and cash ratio show
stability with minor fluctuations influenced by changes in deposits and loans.

While the bank effectively manages its short-term obligations, the analysis suggests
that maintaining very high liquidity levels may restrict opportunities for higher
profitability. Therefore, a balanced approach to liquidity and asset utilization is
essential for optimal financial performance.

Overall, Nepal Bank Limited demonstrates sound liquidity management but should
continue monitoring and adjusting its liquidity strategies in line with market conditions
and regulatory guidelines.

2.1 Data Presentation

● Key liquidity ratios (Current, Quick, Cash Ratios) calculated for 5 years.
● Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) met or exceeded
regulatory requirements.
● Liquidity position remained stable with minor fluctuations.
● Ratios are comparable to or better than industry averages.
● Data visualized through graphs showing trends and compliance.

2.1.1. Different segments of Deposits in NBL:

Nepal Bank Limited (NBL) offers a variety of deposit segments to cater to different
customer needs. These include various types of savings accounts, fixed deposits, and
other specialized deposit products.
 Savings Accounts:

● Normal Saving: This is a standard savings account with a basic interest rate.
● NBL Diamond Saving: A premium savings account with a slightly higher interest rate.
● Women Special Saving: A savings account designed for women, often with specific
benefits.
● Yuva Bachat Khata: A savings account tailored for youth.
● Santati Saving Account: A savings account focused on children's future.
● Remittance Saving Account: A savings account for those receiving remittances.
● Senior Citizens Special Saving: A savings account for senior citizens with special
interest rates.
● NBL Special Saving: A general-purpose savings account with a competitive interest
rate.
● Nari Samman Bachat Khata: A savings account focused on women's empowerment.
● Nagarik Bachat Khata: A savings account for citizens with specific benefits.
● Green Saving Deposit: A savings account promoting environmental awareness.
● Other specialized savings accounts: NBL also offers various other savings accounts
like Investor's Saving, Professional's Saving, Social Security Saving, Pension Payment
Saving, Earthquake Relief Saving, TU Pension Saving, Staff Salary Saving,
Sambandha Bachat Khata, and more, each with its own unique features and benefits.

Fixed Deposits:

● Individual Fixed Deposit: Fixed deposits for individual customers with various
tenures and interest rates.
● Institutional Fixed Deposit: Fixed deposits for institutional customers with varying
tenures and interest rates.
● Remittance Fixed Deposit: Fixed deposits for those receiving remittances.
● Other Deposit Products:
● Recurring Deposit: A deposit account where regular installments are made over a
fixed period.
● Employee Welfare Account: A specialized account for employee benefits.
● Akchhaya Kosh: A specific type of deposit account.
● Normal Call Deposit: A type of current account that allows for withdrawals on
demand.

NBL Trust Fund: A deposit account for trust funds.

2.1.2. Saving Deposit to Total Deposit Ratio:

Fiscal Year Saving Total Deposit Ratio

Deposit in in billion
Millin

2019/20 13,200 42,000 0.29

2020/21 14,000 44,500 0.34

2021/22 15,500 47,000 0.27

2022/23 17,000 51,000 0.25

 CHAPTER – 3

SUMMARY AND CONCLUSION

3.1 Summary
Nepal is one of the least developed countries of the world. For most of the developing process, it
is financially dependent upon the foreign countries. It is economically too weak. Thus, the
economic condition of the people is weak. In Nepal, 85% of the people are dependent upon the
agricultural sector which is unable to provide full employment to the people. The Nepal
government has to activate people in the nation’s development through overall industrialization
of the nation. For this purpose, development of a sound banking system is essential.

In the Nepalese banking sector, commercial banks including venture banks are
operating at present. In the absence of modern banking any country cannot develop
economically. Therefore, it is essential to find out whether or not the banks are serving
an important contribution to developing sectors of economy. Liquidity is said to be the
lifeblood of a bank, which shows the bank’s ability to meet each requirement. In this
record, this study has been based upon the objective to evaluate the liquidity position
of NBL.

3.2 Conclusion

● Nepal Bank Limited has maintained a stable and healthy liquidity position over
the past five years.
● Key liquidity ratios (current, quick, cash ratios) show the bank’s ability to meet
short-term obligations effectively.
● The bank consistently complies with regulatory liquidity requirements such as
SLR and CRR.
● The Savings Deposit to Total Deposit Ratio has steadily increased, indicating
more stable and low-cost funds.
● Excessively high liquidity may limit profitability, highlighting the need for
balanced liquidity management.
● Continuous monitoring and strategic adjustments are essential to optimize
liquidity and improve financial performance.
 REFERENCES

● Nepal Bank Limited. (2023). Annual Report 2022/23. Kathmandu:

Nepal Bank Limited.
● Nepal Rastra Bank. (2023). Banking and Financial Statistics.
Kathmandu: NRB.
● Shrestha, R. (2021). Liquidity Management in Nepalese Commercial
Banks. Journal of Banking and Finance, 12(3), 45-58.
● Khanal, P. (2020). A Study on Deposit Mobilization of Nepal Bank
Limited. Unpublished Thesis, Tribhuvan University, Kathmandu.
● Official website of Nepal Bank Limited. (n.d.). Retrieved June 2025,
from https://www.nepalbank.com.np
 APPENDICES

Deposit Data (2018/19 – 2022/23):

● Total Deposits grew from NPR 40,000M to NPR 51,000M.

● Savings Deposits increased from NPR 12,500M to NPR 17,000M.
● Savings Deposit Ratio rose from 31.25% to 33.33%.

Liquidity Ratios:

● Current Ratio improved from 1.25 to 1.35.

● Quick Ratio rose from 0.95 to 1.15.
● Cash Ratio increased from 0.40 to 0.50.
● Statutory Liquidity Ratio (SLR) steady at 20–22%.
● Cash Reserve Ratio (CRR) increased from 6% to 8%.

Internship Notes:

● Involved in liquidity compliance and cash flow management.

● Learned challenges of balancing liquidity and profitability.