An Analysis of Liquidity Position of Nabil Bank Limited

Abstract

The present study aims to reveal the relationship between liquidity and profitability of nabil bank, while in conducting day to day operations. This paper examines the effects of liquidity on profitability. To address the objective, the article has taken nabil bank for the period between 2011/12 to 2015/16. Considering the liquidity management can increase the profitability. The study has examined their liquidity management of nabil bank as well as profitability positions.using various financial tools and indicator. This paper also represents the regulatory issue, statistical analysis and the liquidity surplus or deficit scenario of the nabil bank.The study concluded that proper liquidity management can increase the profitability of the bank if other factors move positively. It was found that trend of average liquidity ratio and profitability of NABIL banks are not seems to be fluctuating but average variation in liquidity ratio, as well as profitability of nabil bank. The study concluded that the liquidity ratio, leverage ratio, activity ratio and profitability ratio has a positive significant. But liquidity ratio has not significant effects on profitability of nabil bank.Finally this study indicates that how proper liquidity management helps to increase the bank profitability.