Net Liquidity Status of Nepalese Commercial Banks: Standard Chartered Tops the Chart

The latest net liquidity report of Nepalese commercial banks shows a mixed scenario across the banking sector, with a few banks maintaining strong liquidity buffers while several others hover close to the minimum comfort levels.

Government-Owned Banks Lead Early Averages

Nepal Bank Limited, Rastriya Banijya Bank, and Agriculture Development Bank — all government-owned giants — reported net liquidity ratios of 36.34%, 40.12%, and 31.63% respectively. Their average net liquidity stands at 36.85%, providing a relatively stable backbone for the national financial system.

Rastriya Banijya Bank, with 40.12%, stands out among government banks, reflecting its strong asset management and surplus cash position in the market.

Standard Chartered Bank Nepal Sets Benchmark

Among private sector banks, Standard Chartered Bank Nepal is the undisputed leader, posting a remarkable net liquidity of 47.36% — the highest in the industry.
This highlights the bank’s highly conservative liquidity management policy, ensuring ample readiness for both operational needs and regulatory compliance.

Mixed Performance Among Other Major Banks

• Nepal Investment Mega Bank shows a solid 33.75%, relatively healthy compared to sector averages.

• Global IME Bank and Prabhu Bank closely trail with 33.46% and 33.51% respectively.

• Nepal SBI Bank also maintains a strong liquidity cushion at 36.57%, showcasing stable financial management.

However, concerns remain for banks like:

• Nabil Bank (25.94%)

• NIC Asia Bank (25.67%)

• Siddhartha Bank (25.69%)

• NMB Bank (24.68%) — the lowest among the group.

Banks with liquidity hovering below 30% are at risk of facing short-term operational pressures, especially if there is an unexpected rise in loan demands or a credit crunch scenario.

Sector-Wide Overview

Overall, most banks are above the critical 20% mark mandated by Nepal Rastra Bank (NRB), but the liquidity buffer is not as comfortable as it used to be post-pandemic.
Given rising interest rates, volatile deposit growth, and increasing credit demands, maintaining higher liquidity will be crucial to withstand any sudden economic shocks.

Key Observations:

• Conservative banks like Standard Chartered, Nepal SBI, and Rastriya Banijya Bank are positioned very safely.

• Aggressive banks like NMB, Citizens, and NIC Asia might need to boost liquidity in coming quarters.

• Average liquidity across private banks seems to be around 30%–33%, slightly below the earlier years.