#NepalBanking #LiquidityStreng
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By Sandeep Chaudhary

Which Bank Has the Best Liquidity Position in Nepal?

Which Bank Has the Best Liquidity Position in Nepal?

Liquidity remains one of the most crucial indicators of banking strength, as it shows how well a bank can meet its short-term obligations and customer withdrawals without stress. According to the mid-July 2025 NRB data, Standard Chartered Bank Nepal emerges as the bank with the strongest liquidity position, posting the highest net liquidity of 46.33% and an impressive SLR of 35.29%. Its relatively conservative CD ratio of 70.50% indicates that it has not overstretched in lending, maintaining a robust buffer of liquid assets. Close behind, Rastriya Banijya Bank (RBB) also shows exceptional resilience with 44.24% net liquidity and the highest SLR in the sector at 40.33%, reflecting the cautious lending stance of state-owned banks. Other strong performers include Nepal Bank Limited (38.33% net liquidity, 35.40% SLR), Agriculture Development Bank (ADBL) (37.76% net liquidity, 38.95% SLR), and Everest Bank (38.94% net liquidity, 32.12% SLR). Collectively, these banks are better positioned to handle liquidity shocks compared to their private sector peers.

On the other hand, some large private banks such as Nabil Bank (27.31% net liquidity, 25.10% SLR) and Prime Commercial Bank (27.37% net liquidity, 25.41% SLR) operate with relatively lower liquidity buffers. While still within safe ranges, their strategies reflect a more aggressive lending orientation that prioritizes loan expansion over liquidity hoarding. The sector average net liquidity is 35.07%, with an SLR of 30.13%, and a CD ratio of 76.63%, meaning most banks are operating at balanced levels but with varying degrees of conservatism.

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