1

CHAPTER I
INTRODUCTION

1.1 Background of the Study,

Rastriya Banijya Bank Limited (L) has a history of serving its customers far and wide
across the nation for more than half a century. The bank then fully owned by
Government of Nepal, was established on 10 Magh 2022 (23 January 1966) under the
special statute "Rastriya Banijya Bank Act, 2021" and had operated under
"Commercial Bank Act,2031” until it was re-registered as public limited company on
6 Baishak 2063 (19 May 2006). At present, the Bank operates as "A" class financial
institution licensed by Nepal Rastra Bank and carries out commercial banking
activities as per the provisions of the "Bank and Financial institutions Act 2073,"
(2017).
RBBL endured many stressful years of business and faced existential questions at
some point of time in the past. But learning the lessons from the events and craving
towards the brighter future, the Bank successfully implemented a restructuring plan;
and now it stands as one of the most preferred bank with the highest number of
customers all 77 districts and 7 provinces of the country. The Bank has been able to
imprint its presence in national economy through efficient allocation of resources in
all sectors of economy thereby enhancing production and generating employment
opportunities within the country. The unflinching faith and goodwill bestowed by our
customers continued support from the Government, well wishers and general public
has been the reason for us to stand as the most trusted bank in the country.
Everyone has different banking needs, but every business needs a bank account.
Rastriya Banijya Bank has a tailor made Current account that rightly meets your
needs in today's fast-paced business. Networked branches of Rastriya Banijya Bank
gives you the power to transfer funds in and across cities (where Rastriya Banijya
Bank has its offices/branches) in a flash.
.Rastriya Banijya one of the largest private-sector commercial banks in the country in
terms of capital base, balance-sheet size, number of branches, ATM network, and
customer base. The Bank has 333 branches, 96 extension counters, 74 branchless
 2

banking, and 471 ATMs across Nepal with a network covering all major financial
centers of the country.

1.2 Profile Of Organization

The bank then fully owned by Government of Nepal, was established on 10 Magh
2022 (23 January 1966) under the special statute "Rastriya Banijya Bank Act, 2021"
and had operated under "Commercial Bank Act,2031” until it was re-registered as
public limited company on 6 Baishak 2063 (19 May 2006). At present, the Bank
operates as "A" class financial institution licensed by Nepal Rastra Bank and carries
out commercial banking activities as per the provisions of the "Bank and Financial
institutions Act 2073," (2017).

RBBL endured many stressful years of business and faced existential questions at
some point of time in the past. But learning the lessons from the events and craving
towards the brighter future, the Bank successfully implemented a restructuring plan;
and now it stands as one of the most preferred bank with the highest number of
customers all 77 districts and 7 provinces of the country. The Bank has been able to
imprint its presence in national economy through efficient allocation of resources in
all sectors of economy thereby enhancing production and generating employment
opportunities within the country. The unflinching faith and goodwill bestowed by our
customers continued support from the Government, well wishers and general public
has been the reason for us to stand as the most trusted bank in the country.

The Bank follows prudent practices to conform to the Central Bank's directives
while ensuring constant adherence to its values, culture and traditions ingrained since
inception. The Bank has been moving forward through strategic growth while being
socially responsible.

Vision:

"The most credible bank for one and all, always contributing towards Nation’s
prosperity"
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Mission:

“We strive to enhance the quality of life of all Nepalese by eliminating barriers to
financial access and helping them achieve their full potential; and by ensuring safe,
innovative and affordable financial services, through vast networks of efficient
centres, socially responsible business processes and empathetic human resource”

1.2.1 Introduction of Deposit:

People earn money in order to survive and afford their daily expenses. But people
want to save some money for their future unknown life. So people save some money
from their income and deposit it in the bank. Because they know that a bank gives
interest on their deposited money. This is the main function of the bank. The bank also
collects scattered money from various sectors by providing certain rate of interest. The
bank collects money as a deposit. Collecting money from the customer subject to the
obligation to draw from back to the extent of the amount available on their a/c is called
deposit. Banks provides cheques for withdrawing of deposited money when the customer
needs it. This is the main function of the bank. The money can be deposited in three a/c
in the bank. These are:

1. Saving a/c

2. Current a/c

3. Fixed a/c

Saving a/c

Saving a/c is a combined a/c of fixed a/c and current a/c. This a/c mainly oriented
with middle class people, farmer, employee, labour and small business who have little
savings. In this deposit customers get certain rate of interest and also facility to withdraw
certain amount in certain period. This is very much liked and is the main source of fund
of a bank.

A bank collects capital from saving deposit. Saving a/c are for non-trading
customers who have some potential for saving and who don't have numbers of
transactions entering their a/c. Saving a/c is one of the widely used a/c system of
 4

commercial bank. The bank prefers to invest deposit in saving a/c. The bank maintains
less amount of liquidity compared to current deposit. At the present, the customers can
draw amount of Rs. 10,00,000 in the week. And if more money is needed, the bank
should be informed written in advance (7 days before), otherwise the bank will charge
interest beyond limit. The bank can demand certain amount of money as a minimum
balance to open or run the a/c. The maximum required amount to open or run the saving
a/c RBB bank branch Rukum (west), is Rs. 500 now. The depositor gets as interest
rate of minimum 5% and maximum 12% per annum in their deposit.

Features of Saving deposit :

a)Bank gives interest 4 time in the year (quarterly ) in saving a/c.

b)In Saving deposit bank gives 5% interest in the year.

c)In the time of liquidation saving deposit get first priority than fixed & current
deposit.

d)If depositor wants to draw more money than the maximum limitation determined
by the bank, the bank should be given written information in advance.

e)If depositors need more money and they drawn money without giving any prior
notice. The bank will charge interest beyond limit.
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1.3 Objectives of Study

The main purpose of establishment of RBB bank is developing economic condition of

the country by establishing business industries and collect funds from people. It collects
scattered capital and provides loans in productive sectors to increase production and to
rise up economic condition of Nepal. It also invests in development programs, which are
directed by his majesty's government. To find out the trend of collecting fund through
saving & other deposits by bank.

a)To find out which methods can be used by the bank for attracting customers to
achieve its organizational objectives.

b)To find out how it is utilizing its funds.

c)To find out the share of saving deposit out of the total deposit of RBB bank.

d)To find out the total amount of deposit.

e)To draw out the problems regarding saving deposit and as a whole banking
system in Nepal.

f)Comparison between RBB bank & other commercial bank.

g)To analyze the trend of saving deposit in RBB bank .

h)To find out the contribution of each a/c in total deposit.

1.4 Rationale

Commercial banks can play an important role in the enhancement of developing countries
like Nepal. It also helps to improve the economic position of the country.

The main objective of this research is to analyze the financial performance through the
use of appropriate financial tools. This study will be helpful to different parties, since the
Significance of banking business for a national development is obvious. This study helps
to the person and parties such as shareholders, management, brokers, customers, owners,
investors & government etc. and other policy making person who are concerned with
banking sectors.
 6

The present study will be more helpful to aware the shareholder regarding financial
performance of this bank. Besides that, other beneficiaries of the study can be categorized
as following.

1.5 Review

In recent times, the literature available in any research area is generally

voluminous and the researcher needs precaution to select the relevant materials for
review, the researcher can divide literature onto three broad categories. Firstly, general
literature in the broad area of specialization has to be borrowed quickly, noting only the
portion that may have a bearing on the problem area. Secondly, literatures related to
the problem are in which research is being carried out. This has to be studied
intensely and a bibliography may be developed. Summaries of some of the
designs adopted, measurements made, analysis methods and findings may be
generated. The gaps must identified ( if the problem is not always roughly
formulated). One of the gaps may be chosen as a problem. Their methods,
merits, shortcomings, difficulties should be elaborately detailed to be able to
efficiently formulate the research problem and investigate it. Critiques may be
summarized for each of these and kept in cards or o the computer for the development
of thesis or report.

1.5.1 Review of Previous Works

A study has been made on procedure of opening saving deposits of RBB

Bank Limited Head office Kamaladi Kathmandu: A report submitted to faculty of
management in the partial fulfillment of the requirement for the degree of BBS
from T.U. Nepal Commerce Campus by Suraj Bastakoti.

In that study Mr. Suraj Bastakoti mainly focuses his study at the procedure of
opening saving deposits of RBB bank . He collected necessary materials, information
and data for the report through contacting concerned staffs and through personal
appointment with the department head. He used secondary data only.
 7

Some excerpts of the study are given below: in every country, banks play an
important role in its economic development. So, banking is an important subject.
RBB Bank Limited was established in 2067 B.S. as the 30 th commercial bank of
Nepal. with the establishment of RBB bank has been playing a vital role in the
economic development of Nepal by providing banking services to productive sectors
like agriculture, trade industry etc. In the established year RBB bank collected 1.7
million deposits and invested 2 million on loan. At present, the paid up capital of RBB
bank is Rs. 404 lakh.

In that report Suraj Bastakoti presents 6 years data from 2068 to 2073. He
analyzed & presented them into the table graph & diagram. From this he makes a
conclusion of deposits of RBB bank are growing up. But saving deposit. Ratio to
total deposit is slightly increasing in the first 2 years but after that the ratio is
decreasing. The main cause of decreasing ratio is present condition of country, i.e.
political unstable situation and terrorism. He analytically explains the RBB bank with
SWOT analysis method. From this method he presents strength, weakness,
opportunity & threats of RBB bank in present situation. We also suggest that RBB
also should provide new skims like private banks. He also points out the decreasing
loyalty of customers with RBB bank.
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1.6 Methods

Research Design Research refers to the various sequential steps adopted in studying
a problem with certain objectives in view. It is based on instructions suggestions
and supervisions. The entire task is completed using following steps as below:

- Orientation class by the respected lecture

- Selection of Organization
- Searching for relevant topic
- Determination of objectives and time plan
- Data arrangement
- Presentation of raw data
- Analyzing the data using different tools

1.6.1 Population & Sample

There is a bank and some financial institutions in Khalanga.Among them RBB

bank Rukum (west) is choosed for the study. The study is mainly based on the
secondary data. It is hard to get primary data because big organizations do not have
enough time to provide information and interview to every researcher and the policy
of an organization also play an important role in accessing such data. It covers the
data period of years from Ashad 2074 to Ashad 2079 B.S.

The study is mainly based on the secondary data. It is hard to get primary data
because big organizations do not have enough time to provide information and
interview to every researcher and the policy of an organization also play an
important role in accessing such data. It covers the data period of years from Ashad
2074 to Ashad 2079 B.S.
 9

1.6.2 Types of Data

There are mainly two types of data depending upon methods of data collection

1.6.2.1. Primary Data Collection Method

The data, which is generally collected by the investigator or researcher by

himself/herself, is known as primary data. So observation, survey and
questionnaires refer to primary data. Primary data take much time to collect and fit
exactly as per requirement for the research. The essential information for the study
was collected through different method of primary source like:

 Through observation

 Through direct interviews

 Through telephone

1.6.2.2 Secondary Data Collection Method

The data, which is already collected and used by someone, is known as secondary data.
Secondary data are the data that have been gathered not for the immediate study but
for some other purpose. Secondary data can be obtained from either private or
public sources. It is collected indirectly. The advantages of secondary data are that
they are low in cost and do not require much time to collect. However, it has
disadvantages such as the data may not fit exactly as per requirement for the research
problem as defined in the study. The secondary data would be used to study in this
field work are:

 Different publication of NRB, Research and publication department, banking

operation department.

 Different publication from Ministry of Finance.

 Other publication i.e. Newspaper and magazines.

 Internet.
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Due to lack of personal access the study mainly depend on the balance sheet prepared
by LBL, which is the second source. Data gathered from the balance sheet are
summarized in millions whenever necessary in order to minimize the calculation. Our
study is further based on the Banking and Statistical volume no 62 published by
NRB. Primary data making inquiry with the official of the RBB Bank Ltd has been
used whenever necessary. The main sources of data i.e. the secondary sources are:

 Annual report RBB Bank Ltd 2073/2074

 Annual report of RBB Bank Ltd 2074/2075

 Annual report of RBB Bank Ltd 2075/2076

 Annual report of RBB Bank Ltd 2076/2077

 Annual report of RBB Bank Ltd 2077/2078

 Annual report of RBB Bank Ltd 2078/2079

 NRB publications (www.nrb.org.np)

 Other banking and financial journals

 11

1.6.3 Data Collection Procedure

The methodology used in order to collect necessary materials, information and data
for report were done through contacting the concerned staff and through personal
appointment with the department head.

1.6.4 Instruments

The mathematical tools that are used to forecast about the future, through it is unknown,
based on past data, are called statistical tools. Various statistical tools can be applied in
the study. Mainly in this study, following statistical tools are used.

a) Bar Diagram

When two or more interrelated data are to be represented than multiple bar diagram is
used. In this method 'X' axis represents for time and 'Y' axis represent the variables. It
consists of a set equidistance rectangles of equal width. The height of rectangles is
represented by the value of different variables. Different shades are used to differentiate
the bar.

(b) Trend Line

This simple method can be applied in studying the trend of data. In our analysis, points
are plotted taking time along x-axis. By joining these points with the help of scale, what
we received is called line of current deposit.

1.6.5 Techniques of Analysis

The collected data from different sources have been compared and compiled in one
form with refining and unnecessary information are through to out. Required facts are
selected, analyzed and presented in the form of tables, charts and graphs.
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1.7 Limitations of the Study

 Non availability of the various references or sources acts as

constraints for the study.

 This study covers the data of the Eight and a half years from
F/Y 20074 to Mid 2079.

 Among the various commercial banks, this study is confined to

evaluate financial performance of other Rastriya Banijya
Bank. “A’’Calls bank.

 The data available in published annual reports have been

assumed correct and true.

 Time and money are also constraints for the study.

 The study is based on secondary data accuracy depends upon

the data available collected and provide by bank
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CHAPTER II
ANALYSIS AND RESULT

2.1. Data Presentation

Presentation and Analysis of data is an important thing of the report. It is an

index of the report. From this chapter people easily know about banking position
and condition of saving deposit in RBB bank and also can find out the problem of
the organization.

Total Deposit of Rastriya Banijya Bank

Deposits are the lifeblood of the commercial banks. They are the chief source of the
bank fund & accounts. They attract small savings not only from the low and
middle-income groups but also from the people belonging to higher income
groups and invest these funds in productive sectors. Therefore the collection of
deposit is the main function of the bank. to know the financial position of the bank
one should have knowledge about total deposit. The following formula is used to
find out this ratio.

Difference in Deposit

% Change = ______________________X 100%

Base year's deposit

Table 1: Total Deposit Rastriya Banijya Bank

Financial year Total Deposit in Rs. % Change

Ashad 2074 74246
(0000) 5.22
Ashad 2075 85425 15.06
Ashad 2076 97123 13.69
Ashad 2077 105616 8.74
Ashad 2078 100669 (-4.68)
Ashad 2079 100677 7.94

Sources: Rastriya Banijya Bank

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Total Deposit of Rastriya Banijya Bank (0000)

Diagram-1

100000

90000

80000

70000

60000

50000 Total Deposit Rs

Change in %
40000

30000

20000

10000

0
Ashad Ashad Ashad Ashad Ashad Ashad
2074 2075 2076 2077 2078 2079

Sources: Rastriya Banijya Bank Rukum (west)

Total Deposit of RBB Bank

The table 1 along with the diagram 1 shows the deposit trends of Ashad 2074 to
Ashad 2075 It shows the total deposits of RBB Bank are increasing each year. It
shows the public attitude towards the bank is positive. The percentage increase
between 2073 and 2074 was 15.06% and between year 2075 and 2076 was 13.69%
which increase good sign. But percentage decrease between year 2076 & 2077 was
8.74% and between year 2077 & 2078 was( -4.68% )which is not good sign but
between year 2078 & 2079 was 7.94% which is good sign for the RBB Bank .This
situation is created by the increasing good political situation & decreasing terrorism of
Nepal.

It is necessary to know the contribution of saving, current & fixed deposit to total deposit
without this the total deposit would not exist, So it is necessary to find out the
composition of current, saving and fixed deposit.
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Table - 2

Composition of Deposit (in Rs '000)

Fiscal year C.D S.D. FD T.D

Ashad 2074 3116 36465 34665 74246
Ashad 2075 3602 44331 37492 85425
Ashad 2076 4123 57705 35294 97123
Ashad 2077 4374 67993 33249 105616
Ashad 2078 4142 65000 31527 980669
Ashad 2079 4144 65004 31529 975677
Source: Rastriya Banijya Bank Rukum
(west)

Diagram — 2
Composition of Deposit (in Rs '0000000')
120000

100000

80000

Column1
60000 S.D
F.D
40000 T.D

20000

0
Ashad Ashad Ashad Ashad Ashad Ashad
2074 2075 2076 2077 2078 2079

Source: Rastriya Banijya Bank Rukum (west)

The above table 2 and diagram 2 shows that amount in currents & saving deposit is
increasing up to 2074 and decrease in 2075 then again increase in 2076. But fixed
deposit is increasing up to 2077 Then after all deposits are going down up to 2074
and again they are increase in 2077. The fixed deposit has highest amount deposit in
 16

year 2077. Then after the saving deposit has highest amount deposit in comparison
to current & fixed deposit. Current deposit contributes lowest part in total deposit in
comparison to saving & fixed deposit. In Ashad 2079, current deposit, saving deposit
and fixed deposit hold 422065, current deposit, saving deposit & fixed deposit has
contributed 4.10% .64

2.1.1 Saving Deposit of Rastriya Banijya Bank Rukum (west) office

Saving deposit is the back bond of the bank. So it is necessary to know the
saving deposit trends, When we study about bank after all this report is also
concerned with saving deposit of RBB Bank branch office, Rukum (west).

Table 3
Saving Deposit of Rastriya Banijya Bank Rukum (west)

Fiscal year Saving Deposit in thousand Rs. % Change

Ashad 2074 36465 26.89
Ashad 2075 44331 21.57
Ashad 2076 57705 30.17
Ashad 2077 67993 17.83
Ashad 2078 65000 (-4.40)
Ashad 2079 65004 7.94

Source: Rastriya Banijya Bank Rukum (west)

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Diagram 3

Saving Deposit in Thousand

saving deposit in thousant

Ashad 2074
Ashad 2079 11%
20%
Ashad 2075
13%

Ashad 2078
19% Ashad 2076
17%

Ashad 2077
20%

Fiscal year Ashad 2072 Ashad 2073 Ashad 2074 Ashad 2075 Ashad 2076 Ashad 2077

Source: Rastriya Banijya Bank Rukum (west)

The table 3 along with the diagram 3 shows the trend pattern of saving deposit for 6
years period time. The year 2074 is taken as the base year for analysis purpose while
looking at the above table & diagram. There has been increasing trend in saving
deposit. It shows that people have been motivated and encouraged to open saving
a/c & deposit their money and earn certain rate of interest on them but in 2079. In
this year, saving deposit goes down with positive change. The bank is also making
profit out of deposit by

. They are unable to use the deposited money. The maximum deposit money is pending
in a/c so now a days bank are facing more trouble. They are not able to make profit.
Bank, also decrease interest rate in saving deposit.
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2.1.2 Saving deposit to total deposit ratio:

Saving deposit is a back bond of the bank. It is also the short-term

liabilities with fixed interest charges. This ratio is calculate to find out the
contribution of saving deposits with respect to total deposit from this ratio we
are able to know that what kind of role is played by saving deposit in total
deposit. The following formula is used to find out this ratio :

Saving deposit

____________________ X 100%

Total deposit

Table - 4
Saving deposit of total deposit Ratio

Fiscal year S.D. in thousands T.D. in thousands Ratio %

Ashad 2074 36465 74246 49.13
Ashad 2075 44331 85425 51.89
Ashad 2076 57705 97123 59.41
Ashad 2077 67993 105616 64.38
Ashad 2078 65000 100669 64.57
Ashad 2079 65004 100677 64.60
Average 58.99
Source: Rastriya Banijya Bank Rukum (west)

The above table shows the percentage of saving deposit to that of total
deposit. This table shows that the contribution of saving deposit to total deposit is
very high. This

table depicts that the amount of saving deposits is increasing from 2074 to 2079.
From bad condition of the country, the amount of saving deposits is decreasing in
2072 ,but being a good condition of country in 2079 it is increasing. The ratios
with the total deposit are slightly increasing in the year 2078 to 2079. The average
ratio of saving deposits to total deposits is 58.99%
 19

2.2. 3 Loans to Total deposit Ratio:

Bank accepts deposit of the people, organization business concerns.

The collection deposits are then mobilized in productive sectors to earn a profit.
To earn profit, credits are given by the bank in the form of loans and investment.
For this study only the loan has been taken as a credit of RBB Bank and tried to
analyze the loan given by RBB Bank to that of total deposit.

Table - 5

Loan to total deposit Ratio

Fiscal year Loan in thousand Rs. T.D. in Rs .000 Ratio %

Ashad 2074 13319.146 74246 17.94
Ashad 2075 13674.993 85425 16.01
Ashad 2076 12991.671 97123 13.38
Ashad 2077 11971.026 105616 11.33
Ashad 2078 9808.154 100669 9.74
Ashad 2079 9818.263 100677 9.75
Average 13.02

Source: Rastriya Banijya Bank Rukum (west)

The bank would make enough profit if it gives maximum, credit from
the deposit But it is not possible, because there is certain rules that bank has
to follow such as it has to maintain certain amount of cash in bank premises.
The above table shows the loan strategy of of Rastriya Banijya Bank It shows
that the ratio of loan is going slowly down ward. The ratio of year 2074 is
17.94%, 2075 is 16.01%, 2076 is 13.38 %, 2077 is 11.33% , 2078 is 9.74% &
2079 is 9.75%.It shows that in average 13.02% of total credit to total deposit
ratio.
 20

2.1.4 Loans to saving deposit ratio:

Saving deposit is the short-term interest bearing liabilities and loans and
advances are the major source of investment to generate income in a commercial
bank. Difference between interest on deposit & interest on loan is the profit and
main sources of expenses. So if banks are able to give more loans, they are able
to get more profit. Therefore, loan and advances to saving deposits ratios are
measured to find out how many times loan and advances are compared to saving
deposits. This ratio indicates the utilization of short-term interest bearing funds
for income generating purpose. The above table 5 shows the loan given from the
deposit. Now it would be appropriate to analyze the loan from saving deposit.
Usually bank provides loan for short term due to their flexibility & unpredictable
maturity nature. The following formula is used to calculate this ratio.

Loan

Saving Deposit

Table - 6
Loan to saving deposit Ratio (In Rs '000)

Financile year Loan S. D. Ratio %

Ashad 2074 13319.146 36465 36.53
Ashad 2075 13674.993 44331 30.85
Ashad 2076 12991.671 57705 22.51
Ashad 2077 11971.026 57993 20.64
Ashad 2078 9808.154 65000 15.09
Ashad 2079 9818.264 65004 15.10
Average 28.33

Source: Rastriya Banijya Bank Rukum (west)

that in average 36.53% of saving deposit, are given as loan In Ashad

2074. It shows ratio year 2075 , 2076, 2077 ,2078 & 2079 respectively 30.85%,
22.51%, 20.64%, 15.09% &15.10% and it also shows the decreasing ratio in
 21

every year except 2076. The ratio is highest in 2074. The above analysis implies
that NBL is utilizing short-term fund of depositors efficiently. So the bank uses
new strategies for promotion or increment of the loan. If the bank doesn't think
about this, bank should face big trouble with huge loss in transaction.

Diagram 4

LINE CHART OF LOAN TO SAVING DEPOSIT ('0000')

80000
70000
60000
50000
Ratio
40000
S.D
30000 Loan
20000
10000
0
Ashad 2074 Ashad 2075 Ashad 2076 Ashad 2077 Ashad 2078 Ashad 2079

Source: Rastriya Banijya Bank Rukum (west)

2.2 Analysis of Result

Trend Analysis of TD by least square method

The statistical tool used in this study is used to describe the trend of any variables
whether it increases or decreases with the passage of time. The formula at least
square method is Where

∑y b=
∑ xy
a=
n ∑ x∑ y
Hare

Yc is used to designate the trend value to distinguish from the actual value, a is the
Y intercept or the competed trend figure of the it trend line or the amount of
change in Y variable that is associated with a charge of one with a change of one
unit of

X variable. The X variable represents the time.

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Table 7
Trend Line of total deposit

Year T.D.in thousand X=x-2060 x2 xy Yc

Ashad 2074 74246 -2 4 -148492 103534

Ashad 2075 85425 -1 1 -85425 96237
Ashad 2076 97123 0 0 0 88940
Ashad 2077 105616 1 1 105616 81643
Ashad 2078 100669 2 4 291338 74346
Ashad 2079 100677 3 9 302031 167391.1

Total Ey=563756 E x=3 Ex2=19 Exy=465068

Source: Rastriya Banijya Bank Rukum (west)

Here,

Ex = 3, Ey = 563756, E x2=19, Eyx = 465068, n = 6

So,

533640

a= = 93959.33
X 6
Exy 465068
24477.26
Ex2 19

So, the trend line equation is ye = 93959.33 - 24477.26 x state of TD in

Rastriya Banijya Bank Rukum (west)
 23

The above figure shows that trend line of total deposit is increasing with the
passage of time. But last year, it is going down because of the political situations of
the country. This is a very bad thing for the bank.

Table 8
Trend line of Saving deposit

Year S.D. in thousand X=x-2060 x2 Xy

Ashad 2074 36465 -2 4 -72930
Ashad 2075 44331 -1 1 -44331
Ashad 2076 57705 0 0 0
Ashad 2077 67993 1 1 67993
Ashad 2078 65000 2 4 130000
Ashad 2079 65004 3 9 130012
Total Ey=336498 E x=3 Ex2=19 Exy= 275744

Source: Rastriya Banijya Bank Rukum (west)

Here,

Ex = 3, Ey = 336498,E x 2=19, Exy = 275744, n = 6

So,

a=
∑ y = 336498 =56083
x 6

b=
∑ xy = 275744 =35565.74
∑ x 2 19

Therefore, the trend line equation is yc = 56083+35565.47x for Saving for deposit of
Source: Rastriya Banijya Bank Rukum (west)
 24

The above figure shows that trend line of saving deposit is increasing with the
passage of time. Due to the terrorism and political situations of the country, in 2073
saving deposit is decreasing slowly.

II SWOT Analysis with reference to RBB Bank Ltd

Winning in a business war is not a simple task in this scientific world. The
symptoms of business war have already been witnessed even in Nepalese business
environment. In a highly competitive business environment general management is not
adequate to achieve goal & full fill their objectives and it requires specific
management which is called strategic management and SWOT analysis is a key
part of strategic management that helps to analyze the internal and external
environment of an organization. Besides other kinds of organization SWOT analysis
can also be applied in banking business, and Rastriya Banijya Bank can not remain as
an exception in this regard.

SWOT

S = Strength

W = Weakness

0 = Opportunity

T = Threats

Banking business has become one of the most competitive businesses in

Nepal Rastriya Banijya Bank despite its glorious history. Now, the time has come to
review the internal factors with relevant external factors in order to carry out the
necessary strategy. The SWOT analysis of RBB Bank is shown as follows:
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Strength

1.Wide spread of its branch in Nepal.

2.Rastriya Banijya Bank is the Commercial bank of Nepal. Whatever market share
is gained by other commercial banks and finance companies that have mostly
already gained market share of Rastriya Banijya Banks
3.Increasing amount of deposits despite competition.

4.Customer loyalty.

5.Agency relationship with international banks

6 Adequate capital

7.Experienced and skilled personnel.

8.Proper use of sources.

Weakness

1.The management process of Rastriya Banijya Bank is slow and traditional as

compared to other private banks.

2.Lack of modern technology.

3.The service provided to the customers is less efficient as compared to other

banks.

4.Lack of training & development.

5.Bank is developed as a political job center so unskilled personals are also

engaged in the bank.

6.Rastriya Banijya Bank not able to provide new facilities or Skims for their
customer.

Opportunity

I.The deposits collected by the bank are invested in productive sectors which earns
profits.

II.The idle cash of general savers gets its chance to be utilized in productive
sectors, which is fact plays a vital role in the development of the country.
 26

III.It helps small & cottage industry and newly established industry. So it can help to
develop county from village to city.

IV.Since it has agency relationship with international banks it can play a vital role
in the development of the country.

Threats

I.Growing numbers of commercial banks and financial institutions.

II.Bad investment is also a threat to Rastriya Banijya Bank It is the major problem
all over the world in banking business.

III.Growing Condition of corruption and terrorism in country.

IV.New technologies and good customer services provided by its rival banks.

IV.Providing latest banking skims for their customers comparison to other

private bank.

V.Change their traditional concept and behavior.

VI.To give fast & reliable service to their customer.

VII.R e d u c e s t a f f s
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2.3 Major finding

The major finding of the study are derived on the basic of analysis and
interpretations of financial data are as follows:

 Cash and bank balance to total deposit ratio reveals both bank have fluctuating
trend. Ratios are less consistency in comparison to Rastriya Banijaya Bank Ltd.

 Loan and advances to total deposit ratio of RBB shows rising and falling trend.
The main ratio of RBB is higher which shows that the RBB ratio are more
variable.
 The mean ratio of total investment to total deposit of that of RBB and the
variability of the ratio of RBB is higher.

 The mean ratio of loan & advances to working fund of RBB is higher then that
of RBB ratio are more variable then that of SCBNL in comparison.
 When we observe the mean ratio of return on loan and advance ratio, it can be
concluded that RBB seem to be good to maintenance it’s high return on loan and
advances.
 Return on equity reveals RBB has rising ratios has fluctuating ratio.
 The study, we found that RBB is overall beneficial commercial bank in the
nation and deposit position of the bank is much satisfactory
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CHAPTER III

SUMMARY AND CONCLUSION

3.1 Summary

Rastriya Banijaya Bank limited introduced the modern banking system in Nepal.

In every country, bank plays an important role in its economic development. So

banking is an important subject. Bank is an institution that deals in money and its
substitute and provides other financial service. Bank accepts deposit, makes loans and
earns profit. The question of origin of bank has not been answered exactly. However,
banking transaction did take place in ancient time too those transactions, with a long
period of evolution, led to the birth of modern banks today.

In ancient times goldsmiths, landlords and merchants were the bankers. The need
of bank occurred when these ancient bankers could not cope with Rastriya Banijya Bank
he increasing banking activities. The first bank was established in Venice in 1157 A.D. In
Nepa Rastriya Banijya Bank Bank Limited was established in. established on 10 Magh
2022 (23 January 1966) under the special statute "Rastriya Banijya Bank Act, 2021"
and had operated under "Commercial Bank Act,2031” until it was re-registered

At present, 28 commercial banks, 67 development banks 5 rural development

banks 54 finance companies and 34 Co-operatives are registered in Nepal till 2067. The
objectives of these banks & companies are to provide banking services to the economic
development of the country.

Rastriya Banijya Bank introduced the modern banking system in Nepal since
2067 B.S. It has spread through out the country including hill & remote areas. Rastriya
Banijya Bank is contributing 40 's share of banking service in the kingdom. In this bank
HMG invested 41.80% of total capital. Rastriya Banijya Bank branch Rukum (west)
established in 2068 having 6 staff. branch manager is the head of the bank.

Saving deposit is one of the deposit facility provided by Rastriya Banijya

Bank collects saving deposit from various sectors of the economy, invests it
 29

productive sectors, and earns profit from it In return it provides interest on deposit to
its depositors. Rastriya Banijya Bank provides interest on saving a/c.

3.2 Conclusion

Study, analysis and evaluation of saving deposit of Rastriya Banijya Bank

Rukum (west) have been done with various data. The objective of this study is to
know the financial position of Rastriya Banijya Bank, branch Rukum (west),
regarding saving deposit and to identify the trend, problems to access the
contribution, sources and tackle the problems. Basically, the study is done to see
the share of saving deposit in the total deposit and loan. For analyzing this data
various sources such as the office of Rastriya Banijya Bank branch office Rukum
(west), Library and brochure of Rastriya Banijya Bank. this report has Limitation that
is 6 years trend has been taken of only one bank is regressed and study is based on
secondary data. By analyzing the data it, show that the total deposit is increasing
each years and saving deposit also. Saving deposit hold more then 40% to total
deposit. The highest amount of money is deposited on saving a/c while the fixed &
current a/c has lesser than saving a/c. There fore the state of saving deposit seems
satisfactory. The study conclusion is given bellows:

 The deposit a Rastriya Banijya Bank Limited is an increasing trend.

The share a fixed deposit is more than that are saving, current, margin
and other deposit in the deposit mix of Rastriya Banijya Bank
Limited.
 The performance is effective in profitability towards the costumer
and may attract more customer.
 The trend analysis so that the deposit of RBB in increasing stage. In
addition to this, the bank is being able to satisfy is customer & in
providing higher quality and newer service to them.
 We evaluate The Rastriya Banijya Bank Limited profitability index is
greather than other banks.
 30

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 Allora Comprehensive English Nepali Dictionary

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Edition 2060.

 Chamber's Twentieth Century Dictionary

 Commercial Bank Act 2031 B.S.

 Indian banking companies Act 1949.

 K. C., Phatta Bahadur 'organizational mgmt' sukunda prakasan

 K.C. Shekhar Banking theory and practice' 15th Edition 1982

 Nepal Bank Limited, sub branch office sankhu office records Nepal Bank patrika
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 Branch office of Rukum (west) Rastriya BanijyaBank