From the table No. 2.1 JBNL has a high current ratio of 13.

15 in F/Y 2014/15 and a lowest of

10.94 in F/Y 2015/16. And 11.44 in FY 2017/18. The averages ratio of JBNL is 11.73. This
shows that JBNL liquidity position is better.

The lower degree of standard deviation and coefficient of variation suggest that the bank have
maintained consistency in their ratios. Though as per the conventional rule current ratio should
be 2:1 but for bank any current ratio above one also considered healthy and sound. It is clear
from the above that JBNL has maintained current ratio. It can be also present in Figure.

Fig No. 2.1: Trend Line of Current Ratio

2.1.2 Quick Ratio

This ratio examines the bank's liquidity capacity on the basis of its most liquid assets i.e. cash
and balance. This ratio reveals the availability to make the quick payment to customer's
deposit. A high ratio indicates the sound ability their daily cash requirements of their
customer's deposit and vice versa. In this ratio, both higher and lower ratio are not desirable
because if a bank maintains higher ratio of cash, it has to pay interest on deposit and some
earnings may be lost and if a bank maintains lower ratio of cash, it may fail to make the
payment for presented cherubs by its customers. So, sufficient and appropriate cash reserves
should be maintained properly.