A STUDY ON LIQUIDITY ANALYSIS OF NMB

BANK

P R AT I B H A YA D AV
BBS 4TH YEAR
K AT H M A N D U B E R N H A R D T C O L L E G E
OUTLINE
Background
Profile of NMB bank
Reference
 BACKGROUND

• Liquidity is the status and part of the assets. Liquidity

can be viewed in various term of liquidity stored in the
balance sheet and in term of liquidity available through
purchased fund. The degree of liquidity depends upon
the relationship between cash assets plus those assets
which can be quickly turned into cash. (1) 

• A large position in cash or in assets that are easily conve
rtible to cash. High liquidity produces flexibility for a firm
 or an investor  in low-
risk position, but it also tends to decrease profitability. (2)
 CONTD…
• Bank needs to maintenance some
seasonable level of liquidity to fulfill
different commitments such as provide
money to depositors when they demand
for administrative expenses, for
maintaining cash reserve ratio in the
central bank etc. (1)
 PROFILE OF NMB BANK

• NMB Bank Limited licensed as “A” class financial

institution by Nepal Rastra Bank in May 2008 has been
operating in the Nepalese Financial market for over
twenty years and is one of the leading commercial
banks in the banking industry.
• The Bank has a Joint Venture Agreement with FMO,
wherein FMO holds 14.18% of the Bank’s shares and is
the largest shareholder of the Bank. In September 2016,
the Bank signed a Joint Venture Agreement with FMO,
the Dutch development bank following which FMO
became the single largest share holder of the Bank. The
alliance with FMO positions the NMB Bank in becoming
the market leader in managing environmental & social
risks and the leading player in renewable energy and
agribusiness.
• NMB Bank was awarded 'Bank of the Year -
2017' and 'Bank of the Year 2018' consecutively by The
Banker, Financial Times, London. (3)
REFERENCE
1.(
http://akshar2.blogspot.com/2012/02/project-work-for-liquidity-
analysis-of.html
)
2.(https://financial-dictionary.thefreedictionary.com/liquidity )
3.https://www.nmbbanknepal.com/about-us/introduction