EMBAR

Author:
Ramesh Budha
Graduate School of Humanities and Social Science Mid-West University, Nepal

DOI: doi.org/10.58924/rjhss.v4.iss5.p7

Published Date: 11-Sep, 2025

Keywords: Liquidity, Profitability,Cash and Bank Balance to Current Deposit Ratio, Cash and Bank Balance to Fixed Deposit Ratio, Cash and Bank Balance to Total Deposit Ratio

Abstract:
With an emphasis on how different liquidity ratios affect the bank's Return on Assets (ROA), this study examines how liquidity affects Nepal Bank Limited's profitability. Convenience sampling is used to choose pertinent financial reports for the study, which uses annual data from eight fiscal years (2073–2074 to 2080–81). The Liquidity Ratio, Cash and Bank Balance to Current Deposit Ratio (CBBCDR), Cash and Bank Balance to Fixed Deposit Ratio (CBBFDR), and Cash and Bank Balance to Total Deposit Ratio (CBBTDR) are important liquidity ratios that are examined. The bank's annual reports, published financial statements, and regulatory documents serve as the source of the data.In order to fully comprehend the data, the study uses both statistical (average, standard deviation, trend analysis, and coefficient of correlation) and financial (liquidity and profitability ratios) techniques. The results show strong relationships between ROA and the chosen liquidity ratios, providing important information about the best ways to manage liquidity. In order to ensure the stability and expansion of the bank in a competitive financial market, bank managers and policymakers must use these insights to develop policies that strike a balance between liquidity and profitability.

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