A REPORT ON DEPOSIT MOBILIZATION OF NABIL BANK Submitted by: GANESH PARAJULI P.U.

Exam roll-no. : 16450398 P.U.Registration no.: 2015-2-45-0417 A Project Work Report

submitted to Pokhara University Axis College in partial fulfillment of the
requirement for the degree of Bachelor of Business Administration in Banking and
Insurance Lekhnath, Kaski, Nepal 20 July 2018

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DECLARATION
This Summer Project Report entitled "PROPOSAL ON DEPOSIT MOBILIZATION OF NABIL
BANK." which is submitted by Mr. Ganesh Parajuli in  partial fulfillment of the
requirement for the award of BBA-BI degree of Pokhara University Comprises only my
original work and due acknowledgement have been made to materials used in the
report.
 
………………
 Ganesh Parajuli Date: 2018-06-20
 
 
Supervisor’s Recommendation
 
Certified that this project report on
“
PROPOSAL ON DEPOSIT MOBILIZATION OF NABIL BANK 
”
 is the bonafide work by Mr.Ganesh Parajuli who carried out the summer project work
under my supervision. This report is forwarded for examination.
…………………
 
Mr. Arjun Kafle
(Supervisor)
………………..
 
External Examiner
: Date:
 
 
ACKNOWLEDGEMENTS
This report is a piece of work that speaks about the Proposal on Deposit
Mobilization of Nabil Bank. It gives me great pleasure in acknowledging the support
and help of the co-ordinator of Axis College. I also wish to especially thank to my
course instructor and lecturer stimulating suggestions and encouragement helped me
in every step of this project. I also express my sincere gratitude to all the other
respected faculties of the management department, librarian, lab technician and all
other office staff for their assistance and co-operation given to me in regard to
this work. I render my whole hearted thanks to Mr Arjun Kafle who gave me the
privilege to acquire necessary information for my project. I would also like to
thank Nabil Bank members and its management team for their support and co-
operation. I also want to thank all my colleagues and friends for their help,
support, interest and valuable hints. I have tried to include all the relevant
information regarding the topic of my study. Thanking you Ganesh Parajuli BBA-BI
(Fifth Semester)

 
 
TABLE OF CONTENTS
Title Page…
 
… … … … … … … … … …… … … … … … … … … … … …
...
i
 
 Declaration
… …
 
… … … … … … … … …… … … … … … … … … … … …
 ii
 
Supervisor’s Recommendation
 
… … … … … … … … … … … … … … … …
...
iii
 
 Acknowledgement 
… … … … … …
 
… … … … … … … … … … … … … … …
 
iv
 
Table of Content 
… … … … … … … … … … …. … … … … … … … … …
…
 v
 
 List of Tables
… … … … … … … … … ...
 
… … … … … … … … … … …. …
vi
 
 List of Figures
… … … … … … … … … … … … … … … … … … …
 
… …
 
vii
 
 Abbreviations
 
… … … … … … … … … … … … … … … … … … … … …
.. viii
CHAPTER-I
 
1. INTRODUCTION… … . … … … … … … … … … … … … … …
Page No
.
1.1. Back ground of the study … … … … … … … … … … … … …
 
… … ……
xx
1.1.1 Meaning and definition of Topic … … … … … … … … ... ... ... ..…
xx 1.1.2 Relevancy of topic in N
epal… … … … … … … … … … … … … xx
 1.1.2.1 List of services/p
roduction … … … … … … … … … … .xx
 
1.1.3 An overview of Topic … … … … … … … … … … … … … ...
... xx 1.1.4 Promoters associated with the resear 
ch company … … … … … …
 ....xx 1.1.5 Head office and Branches of
the company… … … … … … … …
..xx 1.1.6 Products and Services
of researching company… … … … ….
 ... ...xx 1.1.7 Meaning of Financ
ial Analysis … … … … … … … … … ….. ... ... xx
 1.2. Statement of problem
… … … … … … …. … … … … … … …. ... ... ... .xx
 1.3. Objective of study
… … … … … … … …. … … … … … … … … ... ... xx
 1.4. Rational of study
… … … … … … … … … … … … … …. ….
 ... ... ... ..xx 1.5.
Report Structure … … … … … … … … … … … … … … … … … ... ... .xx
 
CHAPTER
 – 
II
 
2. LITERATURE REVIEW …
 
… … … … … … … … … … … … … … …
xx
 2.1
Conceptual Review… … …
 
… … … … … … … … … … … … …
xx
 
 
2.2
Review of Previous Works… … … … … … … … … … … … … … … …xx
 2.3 Research Gap
… … … … … ….. … … … … … … . … … … … … …
xx
CHAPTER
 – 
III
 
3. RESEARCH METHODOLO
GY … … … … … … … … … … … … … ……xx
 3.1.
Type of Research … … … … ….. … … … … … …
 
… … … … xx
3.2
Population sampling… … … … ….. … … … … … … . … … … … ….
 xx 3.3 Types of Data
… … … … ….. … … … … … … . … … … … … … … xx
 3.4 Data collection proce
dure… … … … ….. … … …
 
… … … … … … … xx
 3.5
Instruments… … …
 
… ….. … … … … … … . … … … … …
 
… … … xx
 3.6
Statistical Tools and Techniques … … … … ….. … … … … … … . … … xx
 3.7
Limitations of the Study … … … … ….. … … … … … …
 
… … … … …xx
 
CHAPTER
 – 
 IV
 
4. RESULTS AND FINDINGS
… … … … … … … … … … … … … … …. xx
 4.1
Presentation of data … … … …
 
….. … … … … … … . … … … … … ….
xx 4.2
Data analysis… … … … ….. … … … … … … . … … … … … … …
xx 4.3
Major Finding … … … … ….. … … … … … … . … … … … … … … … xx
 
CHAPTER
 – 
V
 
5. DISCUSSIONS, CONCLUSION
…. … … … … … … … … … … … … …
...xx
 5.1
Discussion … … … … ….. … … … … … … . … … … … … … ...… … xx
 5.2
Conclusion … …. … … … … ….. … … … … … … . … … … …xx
REFERENCE … … … … ….. … … … … … … . … … … … … … … … …xx
 
APPENDICES………………………………………………………..xx
 
 
 
LIST OF TABLES
TABLE PAGE NO.
4.
1
Current Ratio … … … … … … … … … … … … … … … …. xx
 4.2 Cash and
 bank balance to deposits ratio… … … … … … … … xx
 4.3 Long-
term Debt to Net worth Ratio… … … … … … … … …. xx
 4.4
 Net worth to Total Liabilities Ratio… … … … … … … … …. xx
 4.5 Capital Adequacy Ratio
… … … … … … … … … … … ….. xx
 4.6 Loan and
Advances to Total Deposit ratio… … …. … … … …xx
 4.7
Credit and Investment to Total Deposits Ratio… … … … … …xx
 4.8
Interest Expenses to Total Expenses Ratio… … … … … … … xx
 4.9 Total Interest Income to Credit
& Investment Ratio… ….. … .. xx
 4.10
Return on Assets … …
 
… … … ,.. … … … … … … … … … xx
 4.11
Return on Shareholder’s
 
equity… … …. … …. … … … … … xx
 3.12 Net Interest Earned to Tot
al Assets Ratio… … … … …. … … xx
 
LIST OF FIGURES FIGURE PAGE NO.
4.1
Current Ratio... … … … … … … … … … … … … … … … … … … … … xx
 4.2
Cash and bank balance to deposits ratio … … … … … … … … … … … …
 xx 4.3 Long-term Debt
to Net worth Ratio… … … … … … …. …. …. …. … …. …xx
 4.4
 Net worth to Total Liabilities Ratio… … … … … … … … … … … … … … xx
 4.5
Capital Adequacy Ratio… … … … … … … … … … … … …
 
… …. … …
 xx 4.6
Loan and Advances to Total Deposit ratio … … … … … … … … …. …
 
….
 xx 4.7 Credit and Investment to Total De
 posits Ratio… … …. … … …. …. ….…..
 xx 4.8
Interest Expenses to Total Expenses Ratio… … … … … … …. … … … … ...xx
 4.9
Total Interest Income to Credit & Investment Ratio… … … … … … … … ….xx
 4.10 Return on Assets
… … …
 
… … … … … … … … … … …. …… … xx
 
4.11 Return on Shareholder’s equity… … … … … … … … … …. …. … … … …xx
 
4.12 Net Interest Earned to Total Assets Ratio… … … …. … … … … … … … … xx
 
 
 
LIST OF ABBREVIATION
ATM Automated Teller Machine BBA-BI Bachelors of Business Administration in Banking
and Insurance A.D. Anno Domi HBL Himalayan Bank Limited LC Letter of Credit  NRB
Nepal Rastra Bank  No. Number RBB Rastriya Banijya Bank U.S. United States etc.
Etcetera i.e. For example % Percentage
 
 
CHAPTER-ONE
 
INTRODUCTION 1.1 Background of the study
 
It is very hard to collect the correct information of the origin of bank. The
word “Bank” has derived from the Italian word “Banco” which means accumulation of
money of stock. It is believed that its origin is from the French word “Banque”
which means “beach” for keeping, lending and exchanging of money or coin in the
market place by money lenders or money changers. It is believed that the ancestors
of modern banking system were merchants, goldsmiths and moneylenders. Modern
banking sowed its seed in the medieval Italy despite strong Christian prohibitions
against charging interest. The bank had started in Italy in 12
th
 century as a public bank. The Bank of Venice that was established in 1158 A.D. was
the first bank in the history of  banking. Following its establishment various
banks such as Bank of Barcelona, which was established in 1401 A.D was the second
bank of the world. Similarly, Bank of Geneva (1407), Bank of Amsterdam (1609), Bank
of Hindustan (1770) were
established. The first central bank was the “Bank of England” which was established
in 1844 AD. Bank is a financial institution, which is engaged in monitory
transaction. Bank has always been the most importance and largest financial
intermediates. Banks collect the scattered money from public providing those
interests and services. This collection becomes the capital for the bank to invest
. “Banking means the accepting of
money for the view of lending or investment of deposit from the public repayable on
demand or otherwise and withdraw able by cheque, draft or otherwise”, is according
to Banking Regulation Act 1949 of India. World Bank say
s “Banks or a financial
institution that accepts funds in the forms of deposit repayable on demand or at
short
notice.”
 
1.1.1 History of Bank in Your Country
 
 
 
In the context of Nepal, like as in the other countries the goldsmith and landlords
where the ancient banker. The Nepalese people were highly exploited by
‘Sahu Mahajan’ by charging higher interest rate, compound interest rate and even by
manipulating the principal amount. The introducing of ‘Tejarath Adda’ during the
tenure of the Prime Minister Ranoddip Sing (1993 B.S.) was the first step towards
the institutional development of banking in
 Nepal. The first commercial bank ‘Nepal Bank Limited’ was established on 30th
Kartik 1994 B.S.and started to perform proper
 banking activities. With the realization of central bank to develop monetary
policy as well as to have proper control over commercial banks and banking sectors
Nepal Rastra Bank was established on 14th Baishak 2017B.S. under Nepal Rastra Bank
Act 2015 B.S. Likewise, Rastra Banijya Bank under the full ownership of government
was established on Magh 2022 as per ‘Rastra Banijya Bank Act 2015 B.S.’. The
growths of the banks accelerated only after the adoption of liberal economic policy
by  Nepalese Government .This has attracted many new investors and encourage
opening many new modern banks with joint venture of foreign banks. Nepal Arab Bank
was established on 29th Ashad 2041 B.S. as the first modern bank with the joint
venture of Dubai Bank Ltd. U.A.E. subsequently following its established Nepal Indo
Suez Bank France, Nepal Grinlands Bank England on 16th Marg 2043B.S. with its joint
venture of Grinlands Bank England, Himalayan Bank Ltd on 5th Marg 2049B.S. with the
joint venture of Habib Bank of Pakistan, Nepal SBI Bank Ltd. in28th Ashad 2050
B.S.with  joint venture of State Bank of India Nepal Bangladesh Bank Ltd. on 28th
Jestha, 2050B.s. with the joint venture of International Finance Investment and
Commercial Bank, Everest Bank Ltd. on 1st Kartik 2051B.S. with joint venture of
Punjab National Bank Ltd of Kathmandu on 28th Falgun 2051B.S. with joint venture of
the Siam Commercial Bank, Thailand. Since, the financial sector in Nepal is small,
it is growing fast. At present banking system comprises of NRB, 28 Commercials
banks and many financial companies, saving institution and non-government
organization conduction limited banking activities transaction. The umbrella act
set out regulation for licensing, supervision and cancellation of commercial bank.
Currently, the growths of commercial banks are shown below:-
1.1.2 List of Commercial Nepal Bank

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1. Siddhartha Bank Limited 2.  Nepal Bank Limited 3. Rastriya Banijya Bank Limited
4. Agriculture Development Bank Limited 5.  Nabil Bank Limited 6.  Nepal Investment
Bank Limited 7. Standard Chartered Bank Nepal Limited 8. Himalayan Bank Limited 9.
Nepal SBI Bank 10.  Nepal Bangladesh Bank Limited 11. Everest Bank Limited 12. Bank
of Kathmandu Lumbini Limited 13.  Nepal Credit and Commerce Bank Limited 14. Kumari
Bank Limited 15. Laxmi Bank Limited 16. Global IME Bank Limited 17. Citizens Bank
International Limited 18. Prime Commercial Bank Limited 19. Sunrise Bank Limited
20.  NMB Bank Nepal Limited 21.  Nabil Bank Ltd Limited 22. Machhapuchchhre Bank
Limited 23. Mega Bank Nepal Limited 24. Civil Bank Limited 25. Century Bank Limited
26. Sanima Bank Limited 27. Janata Bank Nepal Limited 28. Prabhu Bank Limited
(Source: nrbbank.com)
1.1.3 Introduction of Nabil Bank
A commercial bank is a financial institution which collects saving from many
persons and institutions and provides credit or loan facility to different
industrial and

 
 
commercial business. Commercial banking business consists of changing cash into
hank deposit and bank deposit into cash, transferring bank deposit form one person
or institution to other, giving bank deposit in exchange for cheques, bills of
exchange, government securities etc.
Nepal Bank Limited established in 1994 BS is the first commercial bank in Nepal.
Commercial banks perform various functions. Among them, accepting various types of
deposit is the main function of commercial banks. Commercial banks are directly
related with the people and institution. The commercial bank is an important bank.
Its function is very attractive for people.In Nepal the commercial bank perform the
following functions. Of the many function of the commercial bank acceptance of
deposits is one of them. The bank allows for opening the three types of accounts to
accept deposit for their customers. They are current, saving and fixed deposit
account. People can collect their money in one of the three as their need. But the
interest is given to the saving and fixed account. The commercial bank performs the
important function of accepting all sorts of deposits. It earns profit by investing
that money in another place.
Another function of the commercial bank is to provide loan. A commercial  bank
provide loan to a person, company and institution etc. A bank can earn a lot of
profit from it. A bank is capable of gain benefit in its banking development by
receiving the interest as pre law and its internal policies. It provides the loan
by accepting the security of debtor. A bank flow the loan against a third person
guarantee or with the pledge of the third person. A bank  provides the loan on
basis of agreement or deed of loan. It provides loan on basis of the following deed
securities:
 
▪ With the pledge of goods, .and pledge of gold and silver.
 
▪ With the security of immovable property
 
▪ With the security of other similar goods.
  Nabil Bank Limited (Nabil) commenced its operation on 12 July, 1984 as the first
joint venture bank in Nepal, Dubai Bank Limited. Dubai (Later acquired by Emirates
Bank International Limited, Dubai) was the first joint venture partner of  Nabil.
Currently NB (international) limited. Ireland is the foreign partner. Nabil Bank
limited had the official name Nepal Arab Bank Limited till 3lst December 2001.
Nabil is the pioneer in introducing maims innovative products and marketing concept
in  banking sector of Nepal with 15 branches and 2 counters in all major cities. It
is the only bank having its presence at Tribhuvan International Airport of the
country. Also,
 
 
the number of outlets in the country is the highest among the joint venture and
private  banks operating in Nepal. Success of Nabil is a milestone in the banking
history of Nepal as it paved the way for the establishment of many commercial banks
and financial institutions.  Nabil, as a pioneer in introducing many innovative
products and marketing concepts in the domestic banking sector, represents a
milestone in the banking history of Nepal as it started an era of modern banking
with customer satisfaction measured as a focal objective while doing business.
Operations of the bank including day-to-day operations and risk management are
managed by highly qualified and experienced management team. Bank is fully equipped
with modern technology which includes ATMs, credit cards, state-of-art, world-
renowned software from Infosys Technologies System, Banglore, India, Internet
banking system and Telebanking system. Nabil  provides a full range of commercial
banking services through its outlets spread across the nation and reputed
correspondent banks across the globe. Moreover, Nabil has a good name in the market
for its highly personalized services to the customers. At the time of commencement
it had Rs 100 million as Authorized Capital.
1.2 Statement of Problems
As we know that the main objective of any business organization e.g. Bank is profit
maximization. Deposit mobilization is the key factor to attain this objective:
therefore, if the bank fails to employ its funds suitably it is not possible to
maximize profit. A  bank has to make decisions with a framework of statutory
requirements of credit regulation by center bank, as well as the national
objectives that are determined in the matter of the provision of credit from time
to time. What is the trend of risk and return  pattern along the studied time
horizon?

 
What is the real and adjusted nature of EPS, BVPS etc.?

 
Is Nabil Bank common stock really suitable for investment?

 
What is nature of ROE, EPS, P/E ratios growth is equity etc?
1.3 Objective of the study
The main objective of the study is to fulfill the partial requirement of P.U to
complete BBA-BI project. The objective of this fieldwork is to analyses deposits
collected in
 
 
 NABIL. The study intends to present a brief and clear picture of deposit and its
utilization. The objective of the study includes.
 
· To find out deposit trend of NABIL bank. · To analyses the cost of deposit · To
analyses whether the deposits are being properly utilized or not
1.4 Rational of the study
Deposit collection is the major function of all commercial banks, which help to
carry out almost all transaction of the bank. Mostly among the various deposit
features provided by commercial banks, fixed and saving deposit are considered to
be more important In the case of term deposit although the banker pay interest
(longer the period higher the interest).

 
To find out the position of Nabil Ban

 
To find out the strength and weakness of Nabil Bank

 
To find out the marketing style and public relation of the bank.
1.5 Report Structure
This study has been comprised into three sections, each devoted to some aspects of
deposit analysis of commercial banks (Nabil bank ltd). The titles of each of these
sections are summarized and the contents of each of these chapters of this study
are briefly mentioned here. Chapter 1 : Introduction / Background Chapter 2 :
Related Literature Review Chapter 3 : Methods Chapter 4 : Results and findings
Chapter 5 : Discussion and Conclusion The first section deals with the subject
matter consisting General Background,  Nature of the Study, Objectives of the
Study, Methodological Aspects, Limitations of Study. The second section is
concerned with nature of study Related literature review. The third section
concerned with the researches methods of the study. The fourth section results and
findings and presentation of data through tables, diagrams for five
 
 
years. The fifth section discussions and conclusion the reference is incorporated
at the end of the study.
CHAPTER TWO LITERATURE REVIEW
 
2.1 Conceptual Review
 
Deposit collection is one of the main features of commercial bank. A commercial
bank receives deposit in different accounts namely current, fixed and saving. These
are the direct deposits. When a bank receives cash it grants a right to the
depositors to withdraw it whenever they like Nepal Banijya Bank Act has
regulated all the deposit 2031. The act specifies “Deposit” means amount deposited
in
current, fixed and saving deposit account of bank or financial institutions. Among
many functions of a commercial bank the main function is deposit function, which
all the commercial banks perform, in simple terms; deposit is a function of
collecting surplus from savers.
2.2 Review of Previous Works
Bank accepts deposit from those that can save but can’t utilize
 profitably. People know that by depositing in the bank they could avail with many
more facilities. By saving in the bank people have the opportunity of earning
interest, useful contingencies; avoid risk such as theft lost accidents, the
deposit of commercial banks is increasing because people know its importance. So
banks accept money on current saving and fixed deposit accounts. Deposits are the
main source of capital for the lending activities of the banks. Banks utilize
efficiencies to attract more deposits to increase credit activities. Deposits are
withdraw able according to the terms of contract with the depositors to attract the
people. The bank maintains different types of deposit accounts. According to
Commercial Bank Act, the saving account means an account of amounts deposited in a
bank for savings purposes. Saving Account are generally opened for the savings of
customers (individuals, nonprofit organization, charitable trusts, clubs,
associations and cooperative) who want to save for meeting future needs, Savings
accounts is suitable
 
 
for the customers who do not want to withdraw frequently or who do not want to keep
certain amount for fixed long period.
2.3 Research Gap
 
Various studies have been conducted in the past on financial analysis of commercial
banks in the US and other regions were found done. The research paper done in the
context of Nepal mainly emphasized on liquidity, profitability and leverage of the
commercial banks. These studies lack micro-level analysis and found applying
traditional analysis of financial performance. In the context of Nepalese  banking
environment, there are few academic researchers found conducted in the frame work.
However these researches lack analysis of the component i.e Sensitivity of Market
Risk. This study attempts to evaluate financial performance of Himalayan Bank Ltd
and NABIL Bank Ltd..
 
 
CHAPTER THREE
 
RESEARCH METHODOLOGY
 
3.1. Research Design
 
The research methodology is the process of arriving to the solution of the
problems through planned and systematic dealing with the collection, analysis and
interpretation of facts and figures. As the research entirely considers about the
about
“Deposit Analysis of NABIL Bank” The main purpose of this study is to show
deposits and its utilization in NABIL with its financial positions, collection and
uses of funds, its prospects and its position in context of Nepal as well as to
recommended suggestions for its improvement. Those research methodologies have been
used which  proves helpful to deposit analysis. For the purpose of achieving the
objective, the following methodology is used. The data has been collected by
acquiring various kinds or reposts, bulletins and journals from the organization.
Similarly data has been acquired from NRB also. The study report is based mostly on
secondary information of NABIL. In addition to this, reference has been made in
library consult, class lectures, Related  books of banking, financial management
and accounting during the preparation of this study.
3.2 Population and sample
 
The 28 commercial banks of the country Nabil Bank Ltd has been chosen and their
performances have been analyzed. Due to Lack of Penal access study mainly depends
on the balance sheet prepared by Nabil Bank Ltd, which is the secondary source.
Nabil Bank Ltd has been selected for the present study. Financial statement of this
bank for the last five years has been taken as the sample for this purpose.
3.3 Type of Data
 For the preparation of this report different kinds of books are followed. In this
report, all the data collected is secondary in nature. Almost all the data has been
collected
 
 
form published annual reports, brochures etc. Mostly all the data are collected
from the concerned bank.
Secondary Data Source:
 
In this study, the main source of data is secondary which are collected from
pre- published data sources. The financial data from the published documents and
audited financial statements were manually extracted into the computer files of
Microsoft Excel program which acted as master database file. The data was refined
further into spreadsheetstocarry out financial ratio calculation and graphical
illustrations throughmathematical functions and Chart program of the Excel program.
3.4 Data Processing Techniques
 
The data collected from the above stated sources has been classified tabulated and
interpreted for easier study. The data collected are classified, tabulated and
arranged in manner to make it easily understandable with the use of tables in
chronological order. After classification the data is tabulated.
3.5 Techniques of Analysis
 
Financial ratios are the major tools used for the descriptive analysis of the
study. In addition to the financial tools, simple statistical tools are also used.
Financial Ratio Analysis tools are used to determine the performance of the banks
in the framework components. These ratios are categorized in accordance of the
components. Following category of key ratios are used to analysis the relevant
components in terms.:
3.6 Limitation of the study
 
The study does not present detailed analysis of deposit in NABIL due to lack of
time relevant data and resources. This study is limited to the information that was
available from the bank and other sources. · Annual reports of NABIL · Annual
reports of NRB · This study only covers the data of five years only.
 
 
CHAPTER
 – 
FOUR 
 
RESULTS AND FINDINGS
 
4.1 Data Presentation and Analysis
 
Table 4.1
 
Total Deposit position of NABIL (Rs. in million)
 
Year
 
Fixed
 
Current
 
Saving
 
Others
 
Call & Short Deposit
 
Total
 
Growth %
 2013 2446 2704 4972 439 4945 15506 -2 2014 2252 3034 5230 390 2541 13448 -13 2015
2310 2688 5994 326 2801 14119 5 2016 2079 2799 7026 342 2341 14587 3 2017 3449 2910
8771 365 3851 19347 33
Source: NABIL Bank Ltd., Annual Financial Statement
Figure 4.1
 
Total Deposit position of NABIL (Rs. in million)
050001000015000200002500020132014201520162017Total deposit

 
 
This table shows the total and finger 4.1 deposit mix of NABIL during the  period
of five years. During the last years the current, margin or other deposits have a
fluctuating collection in the deposit mix of NABIL. Here, total deposit on NABIL in
was Rs.15839 million which were 0.006% less than that of year 2003, in 2013 by 2%.
In the year 2014 the deposit decreased by 13%. But in the year 2015 the total
deposit increased by 5% to Rs.14,119 million. In the year 2016 the deposit
increased by 3% which reached to Rs.14,587 million .In the year 2017, the deposit
increased by 33% which reached to Rs.19,347 million.
Table 4.2
 
Current Deposit Position of NABIL ( Rs. In Million)
 
Year
 
Current Deposit
 
Growth (Rs.)
 
Growth %
 2013 2704 -148 -5 2014 3034 331 11 2015 2688 -346 -13 2016 2799 111 4 2017 2911
112 4
Source: NABIL Bank Ltd., Annual Financial Statement
Figure 4.2
 
Current Deposit Position of NABIL ( Rs. In Million)
 
250026002700280029003000310020132014201520162017
Current Deposit
Current Deposit

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Above table and figure 4.2 shows that the current deposit of NABIL. In the year was
Rs.2,851 million, which was decreased by 1% than the previous year. There had been
great decreased in current deposit during the year by 1% corresponding to Rs. 30
million. But there was a decrease in the year 2013 by 5% and the current deposit
reached Rs. 2,704 million during year . In the year 2013 current deposit was Rs.
3,034 million which is Rs. 331 million more than that of year 2014. But in the year
2015 current deposit collection decreased by 13% corresponding to Rs.346 million
increases. In the year 2016 current deposit collection increased by 4%
corresponding to Rs.111 million increased. Now, in the recent year 2017, the
current deposit is increased by 4% i.e.Rs.112 million and has reached to Rs.2,911
million.
Table 4.3
 
Saving Deposit Position of NABIL (Rs. in million)
 
Year
 
Saving Deposit
 
Growth Rs.
 
Growth %
 2013 4972 55 1 2014 5230 257 5 2015 5994 765 13 2016 7026 1032 15 2017 8771 1745
25
Source: NABIL Bank Ltd., Annual financial Statement
Figure 4.3
 
Saving Deposit Position of NABIL (Rs. in million
)
 
020004000600080001000020132014201520162017
Saving Deposit
Saving Deposit

 
 
Here is the figure of saving deposit of NABIL. In year it was increased by 18% and
in the year 2013 it was increased by 5%. In the year 2014 saving deposit
waszRs.5,230 million which is Rs.257 million less than of year . In the year 2015
it again increased by 13% and reached Rs. 5,994 million. In the year 2016 it again
increases by 15% and reached Rs. 7,026 million. In the year 2017, it continues to
increase and reaches to Rs.8,771 million which is the increase by 25% i.e. Rs.1745
million. From the above table, saving deposit trend is seemed to be increasing.
Most of the  people deposit their fund in saving deposit account. So, NABIL should
attract people towards saving deposit and manage its incremental trend.
Table 4.4
 
Fixed Deposit Position of NABIL (Rs. in million)
 
Year
 
Fixed Deposit
 
Growth (Rs.)
 
Growth (%)
 2013 2446 -1273 -2 2014 2252 -195 -9 2015 2079 -231 -11 2016 2079 -231 -11 2017
3449 1370 67
Source: NABIL Bank Ltd., Annual Financial Statement
Figure 4.4
 
Fixed Deposit Position of NABIL (Rs. in million)

 
 
This above table and figure 4.4 shows the fixed deposit of NABIL. In the year it
again decreased by 106% to Rs.3719. But there was decrease in fixed deposit during
the year 2013. It decreased by 2% to Rs.2446. In the year 2014 it was increased by
9% and reached Rs.2252 million. In the year 2015 it was increased by 11% and
reached to Rs.2310. In the year 2016, it has again increased by 11% and reached to
Rs. 2079 million. In the year 2017, it has again increased by 69% and reached to
Rs. 3449 million. Above table shows that the growth in fixed deposits it is rather
fluctuating. Since the fund of fixed deposit can be utilized for long-term
investment, it should be made consistent. So, such increase and drastic decrease
affects the  profitability of the company.
Table 4.5
 
Interest Bearing Deposit Trend of NABIL (Rs. in million)
 
Year
 
Interest Bearing Deposit
 
Growth (Rs.)
 
Growth (%)
 2013 12363 -222 -2 2014 10022 -2341 -3p 2015 11106 1084 10 2016 11446 340 3 2017
16071 4625 29
Source: NABIL Bank Ltd., Annual Financial Statements
Figure 4.5 Interest Bearing Deposit Trend of NABIL (Rs. in million)
 
0500100015002000250030003500400020132014201520162017
Fixed Deposit
Fixed Deposit

 
 
From table and figure 4.5 Interest bearing deposit of NABIL. In the year it was
increased year 2013 it again decreased by 2% to Rs. 12,363. But there was decrease
in interest bearing deposit during the year 2014 it decreased by 23% to Rs.10,022.
In the year 2015 it was increased by 10% and reached to Rs.11,106 million. But
there was increase in interest bearing deposit by 3% in year 2016 and reached to
Rs. 11,446. In the year 2017, it has increased to 29% and has reached to Rs.16,071
million.
Table 4.6
 
Non-Interest Bearing Deposit Trend of NABIL (Rs. in million)
 
Year
 
Non-Interest bearing deposit
 
Growth (Rs.)
 
Growth (%)
 2013 3142 -112 -3 2014 3424 282 8 2015 3012 -412 -14 2016 3140 128 4 2017 3276 136
4
Source: NABIL Bank Ltd, Annual Financial Statement
Finger 4.6
 
Non-Interest Bearing Deposit Trend of NABIL (Rs. in million)
 
Interest Bearing Deposit
20132014201520162017

 
 
In above table and figure 4.6 the non-interest bearing deposit of NABIL In the
Similarly during the year 2013 it was decreased by 3% and reached to Rs.3,142. In
the year 2014 it increased by 8% Rs. reached Rs.3,424 million. In the year 2015 the
non-interest bearing deposit decreased by 14% million which is corresponding to
Rs.3,012. And in the year 2016 the interest bearing deposit increased by 4% and
reached Rs.3,140. Now, in the recent year 2017, the non-interest bearing deposit
has increased by 4% and reached to Rs.3,276 million.
Table 4.7
 
Interest Expenses on Deposit (Rs. in million)
 
Year
 
Interest on Deposit
 
Total Deposit Rs.
 
Ratio%
 2013 457 15506 2.94 2014 307 13448 2.28 2015 265 14119 1.88 2016 244 14587 1.67
2017 359 19347 1.86 Average 14.2
Source: NABIL Bank Ltd, Annual Financial Statement
2800290030003100320033003400350020132014201520162017
Non-Interest Bearing Deposit
Non- Interest Bearing Deposit

 
 
Figure 4.7
 
Interest Expenses on Deposit (Rs. in million)
 The table and figure 4.7 interest expenses on deposit are presented. In the year
2013 the total collection of deposit was Rs.15,506 while interest on deposit was
Rs. 457 of the total deposit, which is 2.29% ratio. In the year 2014 total deposit
and interest of rate on deposit are Rs. 12,448 and Rs. 307, which is 2.28% of total
deposit. In the year 2015 the total collection of deposit was 14,119 while interest
on deposit
051015
      1      5      5      0      6      1      3      4      4      8      1      
4      1      1      9      1      4      5      8      7      1      9      3      
4      7      A     v     e     r     a     g     e
45730726524435920132014201520162017
Ratio%
Ratio%

 
 
was 265, which is only 1.88% of total deposit. In current year 2016 the collection
of deposit was 14,587 while interest on deposit was 244 which is 1.67%. In the year
2017 the collection of deposit was Rs. 19,347 million and interest on deposit
Table 4.8
 
Cost of Deposit of NABIL (Rs. in million)
 
Year
 
Total Deposit
 
Total Deposit Expenses
 
Interest bearing Deposit
 
Cost of Deposit %
 2013 15506 457 12363 3.7 2014 13448 307 10022 3.06 2015 14119 265 11106 2.4 2016
14587 244 11446 2.13 2017 19347 359 16071 2.23
Source: NABIL Bank Ltd, Annual Financial Statement
Figure :4.8
 
Cost of deposit of Nabil (Rs. in million)
Form the table and figure 4.8 year 2013 the cost of deposit was Rs.457, which is
3.7% of total interest bearing deposit of Rs. 12,363. In the year 2013the cost of
deposit decrease slightly with decrease in deposit was 3.06% i.e. Rs.307 million
when the total interest bearing deposit is Rs.10,022 million. In the year 2014 the
cost
02000400060008000100001200014000160001800020000YearTotalDepositTotalDepositExpenses
InterestbearingDepositCost of Deposit %Series1Series2Series3Series4Series5

 
 
of deposit decreased in deposit and it was 2.4% i.e. Rs.265 million when the total
interest bearing deposit is Rs.14,119 million. In current year 2016 total deposit
is Rs. 14,587 million while a total deposit expense is Rs. 244 million and
interesting bearing deposit is Rs. 11,446 million. In the year 2017 total deposit
is Rs. 19,347 million while a total.deposit expense is Rs. 359 million and interest
bearing deposit is Rs. 16,071 million and the ratio is 2.23%. Therefore, cost of
deposit reached at 3%.
Table 4.9
 
Deposit Lending Ratio (Rs. million)
 
Year
 
Total Deposit (Rs.)
 
Total Loans And Advance (Rs.)
 
Deposit Lending%
 2013 15506 7438 47.96 2014 13448 7756 57.67 2015 14119 8189 57.99 2016 14587 10586
72.57 2017 19347 12922 66.79 Average 59.26 Source: NABIL Bank Ltd, Annual Financial
Statement
Finger 4.9
 

 
 
Deposit Lending Ratio (Rs. million) 
The above the table and figure 4.9 analyses shows the ratio of total loans and
advances to total deposits .During the year 2013 the deposit-lending ratio was
47.96% of total deposit. The ratio decreased by 47.96% of total deposit in the year
2013 the total deposit decreased but the loans and advances could be increased.
Total loans and advances in the year 2015 were 57.99% of total deposit
corresponding to Rs.8,189. In the year 2016, both total deposit and loan and
advances has been increased. Therefore, the deposit-lending ratio has reached to
72.57% of total deposit. In the year 2017 the deposit-lending ration was again
increased by 66.79% and reached Rs. 12,922.
 Table 4.10
 
Ratio of Interest Bearing Deposit to Total Deposits (Rs. in million)
 
Year
 
Interest bearing deposit
 
Total deposit
 
Ratio%
 2013 12363 15506 79.73 2014 10022 13448 74.52 2015 11106 14119 78.65 2016 11446
14587 78.47 2017 16071 19347 83.07 Average 79.98 Source: NABIL Bank Ltd, Annual
Financial Statements
020406080
      7      4      3      8      7      7      5      6      8      1      8      
9      1      0      5      8      6      1      2      9      2      2      A     
v     e     r     a     g     e
1550613448141191458719347
Deposit Lending%
Deposit Lending%

 
 
Figure 4.10
 
Ratio of Interest Bearing Deposit to Total Deposits (Rs. in million)
In the above table and figure 4.10, ratio of interest bearing deposit to total
deposits of NABIL, in the year was 79.45% of total deposits. But in the year 2013
it was 79.73% corresponding to Rs.15,506. In the year 2014 both the interest
bearing deposit and total deposit decreased and the interest bearing deposit shared
74.52% of total deposit of Rs. 10,022 million. It again decreased in year 2015 and
the ratio was 78.65% of total deposit. In the year 2016 interest-bearing deposit is
Rs.11,446 corresponding to Rs. 14,587 million by 78.47%. Now, in the year 2017,
both the interest bearing deposit and total deposit has increased. But the ratio
reached to 83.07% of total deposit.
Table 4.11
 
7072747678808284
      1      5      5      0      6      1      3      4      4      8      1      
4      1      1      9      1      4      5      8      7      1      9      3      
4      7      A     v     e     r     a     g     e
123631002211106114461607120132014201520162017Series1
Year
 
Non-Interest bearing deposit
 
Total Deposit
 
Ratio%
 2013 3142 15506 20.26 2014 3424 13448 25.46 2015 3012 14119 21.33 2016 3140 14587
21.53

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Cancel Anytime.
 
 
Ratio of non-interest bearing deposit to total deposit (Rs. in million)
 
Source: NABIL Bank Ltd, Annual Financial Statement
Finger 4.11
 
Ratio of non-interest bearing deposit to total deposit (Rs. in million)
 In the above table finger 4.11, ratio of non-interest bearing deposit to total
deposits of NABIL, in the year the ratio is 20.54 % of total deposits corresponding
to non-interest bearing deposit Rs.3,254.But in the year 2013 it was 20.26%
corresponding to Rs.3,142. Similarly in the year 2014 non-interest bearing deposit
shared 25.46% of total deposit Rs. 13,448 million. In year 2015 non-interest
bearing deposit shared only 21.33% of total deposit as only Rs.3,012 million was
collected. In the year 2016 non-interest-bearing deposit is shared only 21.53% of
total deposit corresponding to Rs.3,140. Now, in the current year 2017, it shared
to 16.93% of total deposit where non-interest bearing deposit and total deposit are
Rs.3,276 and Rs.19,347 million respectively.
Table 4.12
 
Ratio of current deposit to total deposit (Rs. in million)
 
0%10%20%30%40%50%60%70%80%90%100%1550613448141191458719347Average314234243012314032
7620132014201520162017
Ratio%
Ratio%
2017 3276 19347 16.93 Average 21

 
 
Year
 
Current deposit
 
Total Deposit
 
Ratio%
 2013 2704 15506 17.44 2014 3034 13448 22.56 2015 2688 14119 19.04 2016 2799 14587
19.19 2017 2911 19347 15.04 Average 18.54 Source: NABIL Bank Ltd, Annual Financial
Statement
Finger 4.12
 
Ratio of current deposit to total deposit (Rs. in million)
 
05101520251550613448141191458719347Average2704303426882799291120132014201520162017S
eries1

 
 
From the above table and 4.12, in the year current deposit contributed .In the year
2013 current deposit was Rs.2,851, which is 17.43%. The current deposit collection
was Rs.2,704 million in 2014. In the year 2014 current deposit increased and shared
total deposit by 22.56%. The current deposit collection was Rs.3,034 million this
year. In the year 2015 current deposit decreased to 19.19% the amount of Rs.2,688.
In the year 2016 current deposit increased to 15.04% where current deposit and
total deposit are Rs. 2,799 and Now in the year 2017 current deposit ratio was
increased by15.04% and reached to Rs. 2,911 million where total deposit was Rs.
19,347 million.
Table 4.13
 
Ratio of saving deposit to total deposit (Rs. in million)
 
Year
 
Saving deposit
 
Total Deposit
 
Ratio%
 2013 4972 15506 32.07 2014 5230 13448 38.89 2015 5994 14119 42.45 2016 7026 14587
48.17 2017 8771 19347 61.13 Average 42.3 Source: NABIL Bank Ltd, Annual Financial
Statement
Figure 4.13
 
Ratio of saving deposit to total deposit (Rs. in million)
 

 
 
From the above table and figure 4.13, in the year saving deposit contributed total
deposit by 31.04%. The saving deposit collection was Rs.4,917 saving deposit
Rs.4,972 million which was 32.07% of total deposit of Rs.15,506 million. In the
year 2014 saving deposit Rs.5,230 million which was 38.89% of total deposit of
Rs.13,448 million. In the year 2015 the saving deposit Rs.5,994 million which was
42.45% of total deposit of Rs.14,119 million .Similarly, in the year 2016 saving
deposit Rs.7,026 million which was 48.17% of total deposit of Rs.14,587 million.
And in the year 2017, saving deposit has increased to 61.13% of total deposit.
Here, saving deposit and total deposit amounted to Rs.8,771 and Rs.14,347 million
respectively.
Table 4.14
 
Ratio of Fixed deposit to total deposit (Rs. in million)
 
Year
 
Fixed deposit
 
Total Deposit
 
Ratio%
 2013 15506 15.77 2014 2252 13448 16.75 2015 23101 4119 16.36 2016 2079 14587 14.25
2017 3449 19347 17.82 Average 21.56 Source: NABIL Bank Ltd, Annual Financial
Statement
0102030405060701550613448141191458719347Average497252305994702687712013201420152016
2017Series1

 
 
Figure 4.14
 
Ratio of Fixed deposit to total deposit (Rs. in million)
 From the above table and finger 4.14, in the year fixed deposit contributed total
deposit by 48.41% where fixed deposit was Rs.3,719. It had reached to15.77 % in the
year 2006/2007. In the year 2014, the fixed deposit collection was Rs. 2252 when
total deposit collection was Rs.13448 and its ratio was 16.75%.Similarly, in 2015
fixed deposit contributed total deposit of Rs.14119 million by Rs.2310 million
which is 16.36% of total deposit. In the year 2016 fixed deposit contributed total
deposit of Rs.14587 million by Rs.2079 which is 14.25% of total deposit .Now, in
the current year 2017; fixed deposit contributed total deposit by 17.82%. Here, the
fixed deposit and total deposit amounted to Rs.3449 and Rs.19347 million
respectively.
4.2 Data Analysis
  None of the organizations is perfect in each and every way. I here are some
weaknesses and threats, which affect the organization’s performance. It may have
lots
of strength to be proud of but besides with some weakness and threats as well. And
the organization does not remain same forever there will be lots of opportunities
in order to expand the transactions. So NABIL has also its strength to be proud,
some weakness to be recovered and threats to be faced patiently.
4.3 Major Findings
 
0510152025155061344841191458719347Average2252231012079344920132014201520162017Serie
s1

 
 
· Interest expenses on deposit of NABIL are also quite high but there has been a
decreasing trend of interest expenses till the year 2017. · Similarly, the cost of
deposit during the year 2017 is also quite high but there has  been decreasing
trend in the later year. So, it helps to increase the efficiency to bank. · By the
analysis of deposit landing we can conclude that the bank is able to utilize its
deposits a greater extent. ·
Thus, the bank’s performance is effective in profitability and towards the
customers and may attract more customers.
CHAPTER - THREE
 
 
 
DISCUSSION, CONCLUSION
 
5.1. Discussion
 A bank is an institution, which deals in money. A bank is like a reservoir. It
draws surplus money from the people who save and lend them to the people who want
to use it for productive purpose. In this process the bank earns commission. The
rate of interest paid to the depositors is generally lower than the rate charged to
the  borrowers. The difference between these two rates of interest is the profit of
the bank. Deposit collection is the main function of commercial bank. The present
study has  been undertaken to examine and evaluate the financial performance of
NABIL. The financial statements of five years that is from 2000/01 to 2004/05 have
been examined for the purpose the study. The study has resorted mainly to secondary
data that has  been first processed and analyzed comparatively. Individual
interview with the management personnel has been taken whenever necessary. This
study is exploratory as well as analytical sometimes. NABIL was established in 12
th
 July 1984, which was the first joint venture bank in Nepal. Among many joint
venture banks, it is a leading one, which is always running in profit due to its
proper management and good  policies. Data that I have presented is all from the
secondary sources, which are in the annual reports or other printed matters. A
customer can be account holder when he opens account. There are the numbers of
rules and procedures regarding opening different types of accounts. The interest
rates on different accounts are different
5.2. Conclusion
 · The deposit of NABIL is in increasing trend. The share of fixed deposit is more
than that of savings, current, margin and other deposits in the deposit mix of
NABIL. · The trend of interest bearing deposit has been gradually increasing but
there has  been more fluctuation in non-interest bearing deposits, similarly, there
is also more fluctuation in interest expenses on total deposits. · The trend
analysis shows that the deposit of NABIL is in increasing trend. In addition to
this, the bank is being able to satisfy its customers and in providing higher
quality and newer services to them.
 
 
· Although NABIL has a strong financial base and capital structure as well as good
market status and reputation in order to attract new customers and increase deposit
collection NABIL should introduce new schemes. · Customer services should be
diversified and should further be accommodated. · Interest rate on deposit should
be competitive with other commercial banks. · The bank should aim towards
increasing its customers but it must also provide the quality services to the
present customers. For this the bank must make plans and  policies keeping
customers in mind. · Bank should also pay attention towards the priority sector and
industrial sector for lending loans to develop the economic condition of the
country. Bank should provide more facilities to the staff, it has to provide job
satisfaction, training and should encourage its staff .
 
 
REFERENCE
 
Annual Report of NABIL from 2013 to 2017
Brigham, Eugene F., “
Fundamental of Financial Management 
”, Holt Rinchtand
 Winston: The Dryden Press, 1998.
Ghimire, Shiva Raj (2011) “
Fundamentals of Investmen
t
”: Kathmandu:
 
Khadka, Sherjung. (2011), “
Banking and Insurance
”. Kathmandu: Asia Publication.
 
Khan, M.Y. and Jain P.K., “
 Management Accounting
”, New Delhi: McGraw Hill
Publishing Co. Ltd.
Khan, M. Y. and P.K., “
Financial Management Policy 
”: New Delhi: McGraw Hill
Publishing Co. Ltd., 1978.
Pradhan, Radhe S (2009). “
Financial Management 
”:Kathmandu: Buddha Academic
Enterprises Pvt.Ltd: Nepal Shrestha, M.K. and Bhandari, D.B (2010),
“
Financial Markets
 
and Institution
”.
Asmita Publication, Bhotahity, Kathmandu.
Singh, H.B. (2008), “
Banking and Insurance
”. Kathmandu: Asia Publication.
 
S.P. Gupta,”
 Statistical Method 
”.
 
Tiwari, Drona Prasad (2008). “
Business Statistics
”: Chabahil:
 Srijana Books Publishers and Distributors
Van Horn James C.,”
Financial Management Band Policy 
”: New Delhi Prentice Hall
of India Pvt. Ltd., 1986.
Van Horn James C.,”
Fundamental Financial Management 
”: U.S.A. Prentice Hall
Inc. Engle Wood Cliff, 1983.
 
 
Appendix A
 Part A: Interview Questions This report is group to be used only for: Participants
of respondent:  Name: Age: Qualification: Occupation: Gender Address: Telephone
No.:
Questionaire:
1.
 
When was the organization established? Ans:
………………………………………………………………………
 2.
 
Do employees get facilities? ( ) Yes ( ) No 3.
 
How many employees are working at present?
Ans: …………………………………………………………………….
 4.
 
What is the profit at current year?
Ans: ……………………………………………………………………
 5.
 
Is advertising done? ( ) Yes ( ) No 6.
 
Which software they prefer in this organization?
Ans. ……………………………………………………………………
 7.
 
What was the current deposit of this bank?
Ans: ……………………………………………………………………
 

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