A REPORT ON

THE DEPOSIT MOBILIZATION

OF
KUMARI BANK LIMITED
A Project Work Report

––

SUBMTTED BY:
Khagendra Saud
T.U. Regd No: 7-2-1101-0022-2019
Symbol No:-711010015
CHAUMALA MULTIPLE CAMPUS
Chaumala Kailali

SUBITTED TO :-
The Faculty of Management
Tribhuwan University
Kathmandu

In Partial Fulfillment of the Requirements for the

Degree of Bachelor of Business Studies (BBS)
Chaumala Kailali
July 2024
 DECLARATION

I hereby declare that the project work entitled a report on The Deposit Mobilization

of Kumari Bank Limited submitted to the faculty of Management,Tribhuvan Uni-

versity, Chaumala Multiple Campus, Chaumala Kailaliis an original piece of work

under the supervision of Mr. Ratan Adhikari faculty member, Chaumala Multiple

Campus, and is submitted in partial fulfillment of the requirements for the award of

the degree of Bachelor of Business Studies (BBS). This project work report has not

been submitted to any other university or institution for the award of any degree or

diploma.

……………………………….
Khagendra Saud
Date…………………

i
 RECOMMENDATON LETTER

The Project work report entitled The Deposit Mobilization of Kumari Bank Lim-

ited submitted by Shankar Basel, Chaumala Multiple Campus, Chaumala Kailali is

prepared under my supervision as per the procedure and format requirements laid by

the faculty of Management, Tribhuvan University, as partial fulfillment of the re-

quirements for the award of the degree of Bachelor of Business Studies (BBS). I

therefore recommend the project work report for evaluation.

'
………………………
Supervisor
Ratan Adhikari
Chaumala Multiple Campus
Date:……………………….

ii
 ENDORSEMENT

We hereby endorse the project work report entitled A Report On The

Deposit Mobilization of Kumari Bank Limited" Submitted by Shankar Basel of

Chaumala Multiple Campus, Chaumala Kailali in partial fulfillment of the re-

quirements for award of the Bachelor of Business Studies (BBS) for external

evaluation.

Signature Signature

Chet Raj Joshi Min Datta Dhungana

Head of Research Committee Campus Chief

Date: Date:

iii
 VIVA-VOCE SHEET

We have conducted the viva-voce examination of the project work report.

Presented By

Khagendra Saud

Entitled

"A Report On The Deposit Mobilization of Kumari Bank Limited" And we found

the project work report to be the original work of the student and written according to

the prescribed format. We recommend the project work report to be accepted as par-

tial fulfillment of the requirements for Bachelor's Degree in Business Studies (BBS).

VIVA VOCE COMMITTEE

Chairman Research Committee:

Member (Supervisor)

Member (External Expert)

Date:

iv
 ACKNOWLEDGEMENT

As banking section starts with the wider range of involvement for the econom-
ic development of every country. I have well tried to focus on the development of the
deposit mobilization of Kumari Bank Limited of Nepal in the light of banking pro-
spectus. Bank is a business establishment that safeguards peoples’ money and uses it
to make deposit and its mobilization in various sectors which is important for an indi-
vidual, organization, society and economy as a whole . It plays a vital role for the
economic development of a country. So I would like to present a brief account on the
subject matter of “Deposit Mobilization of Kumari Bank Limited”.

First I would like to thank Tribhuvan University for providing us an oppor-

tunity of report writing assignment as a partial fulfillment of the requirements for the
Degree of Bachelor of Business Studies. Many of the sound personalities have helped
me to prepare this report and hence I would like to express my warm gratitude to all
the supporters who provided me every required information and help during this as-
signment period. My special thanks goes to my Assistant lecturer Mr. Ganesh
Upadhayay for guiding me properly while I was writing this report.

I would like to extend my sincere thanks to Mrs. Anita Giri of Kumari Bank
Limited for providing me data and information related to this study. And I would also
heartly offer my sincer gratitude Chief of Chaumala Multiple Campus, Mr. Min Dat-
ta Dhungana guiding, helping and inspiring me to complete this report writing.
Finally, I would not want to state that this report is completely perfect and sat-
isfactory. Any error in this report is my own responsibility and sincere suggestion
from the readers for further more improvement of this report is heartily welcomed.

Khagendra Saud
B.B. S. 4th year
Chaumala Multiple Campus
Chaumala, Kailali

v
 Table of Contents
Page No.
Declaration I
Recommendation Letter II
Endorsement III
Viva -Vice Sheet IV
Acknowledgement V
Table of Contents VII
List of Table VIII
List of Figure IX
Abbreviations X
Chapter 1 Introduction
1.1. Background of the study 1
1.1.1. Origin of Bank 2
1.1.2. Meaning of Bank 3
1.1.3. History of Bank in Nepal 4
1.1.4. Commercial Bank 5
1.2. Profile of the Organization 6
1.3. Statement of the problem 11
1.4. Objective of the study 12
1.5. Research Question 14
1.6. Significance of the study 14
1.7 Literature of Review
2.1 Conceptual Review 13
2.1.1 Strength Of NBL 13
2.1.2 Weakness Of NBL 14
2.1.3 Opportunities Of NBL 14
2.1.4 Threats Of NBL
1.7. Limitation of the study 14
1.8 Research Methodology
1.8.1. Nature and Sources Of Data 15

vi
3.8.2. Data Collection Procedure 15
3.8.3 Data Processing 16
3.8.4. Statistical/ Mathematical Tools 16
Chapter II Presentation and Analysis of Data
4.1. Introduction 18
4.2. Deposit and its Mobilization 20
4.2.1. Deposit Liability of Kumari 20
4.2.2. Deposit Increasing Trend 22
4.2.3 Mobilization Increasing Trend 23
4.2.4 Deposit Lendig Trend 24
4.2.5 Loans and Overdraft to Total assets, Ratio analysis 25
4.2.6 Table of Loan and Draft to Total Assets 26
Chapter III Result and conclusion
5.1. Study result 28
5.2. Deposit mobilization of Kumari 28
5.3. Summary 29
5.4. SWOT analysis 29
• Bibliography 31
• Address & Contact Number of Branches 30
• Appendix 37

vii
 List of Table

Table No. Discription Page No.

1. List of Commercial Banks 4

2. Share holders of Kumari Bank 5

3. The Board of Directors of Kumari Bank 6

4. Financial Position of Kumari Bank 10

5. Deposit and its mobilization 20

6. Deposit liability of Kumari Bank 21

7. Deposit Increasing Trend 22

8. Mobilization Increasing Trend 23

9. Deposit Lending Trend 24

10. Table of Loans and Draft to Total Assets 26

viii
 List of Figure

Figure No. Discription Page No.

1. Share holders of Kumari Bank 6

2. Increasing of Deposit 22

3. Mobilizing Increasing Trend 23

4. Deposit Lending Trend 24

5. Percentage ratio of loan to total assets 26

ix
 Abbreviations

1. KBL : Kumari Bank Limited

2. RBB : Rastriya Banijya Bank

3. SBI : State Bank of India

4. NIDC Nepal Industrial Development Corportation

5. SME : Small and Medium Enterprises

6. INGO : International Non Government Organization

7. ATM : Automated Teller Machine

8. SCT : Smart Card Technology

9. SWIFT : Society for World Wide Inter Bank Financial

Telecommunication

10. F/Y : Fiscal Year :

11. US : United State

12. P/L : Profit and loss

13. A/C : Account

14. SWOT : Strength, Weakness, Opportunity and Threats

15. ABBS : Any Branch Banking Services

16. & : And

17. B.S. : Bikram Sambat

18. Ltd : Limited

19. i.e. : that is

20. TU : Tribhuwan University :

x
 Chapter I
Introduction

1.1Background of the study

The study reports are done for various purpose that help ascertaining the facts
through proper scrutiny; therefore such study reports occupy importance of its own. In
this study attempts have been made to scrutinizes the organization development cov-
ering 5 fiscal year by using various generally accepted and acknowledged statistical
tools. Organization development is one of the main aspects for its existence. This
study on such aspect therefore will play a significant role to get through knowledge.
As we know deposit are the vital input in banking and principle source of capi-
tal to fund bank loans securities purchases, it helps to generate profits to support long
term growth. The ability of the banks’ management and staff to attract various depos-
its from business and individuals customers is an important measure of the banks ac-
ceptance by the public. Deposits are the raw material for bank loans and thus repre-
sent the ultimate source of bank profit and growth. It generates cash reserve and is out
of the access cash reserves a bank holds that new loans are created. So, the bank need
to collect deposits with lowest possible cost and mobilize them through lending at
higher cost. This indicates the management effectiveness in deposit mobilization.
In the dictionary the term “bank” has been defined as “A place where money
or other valuable material is deposited until required or an institution for the keeping
landing exchanging etc of Money.”
Bank is a business establishment that safe-guards Peoples Money and uses it to make
loan and investment Banks promote the wider range of sale of goods and services.
Money is safer in a bank that at home. A current account (Cheque account) with a
bank provides an easy way to pay bills. Bank also provides large amount of joints
loans, with other banks for projects all over the world. As a result, banks can safely
loan or invest a large percentage of th efunds deposited with them.
Chamber’s Twentieth Century Dictionary defines a bank as on, "institution for
keeping, lending , exchanging etc of the money.” According to Couther, "the banker’s
business into take the debts of other people to offer his own in exchange and thereby
create Money.” According to Kent,”A bank is on organization whose principal opera-

1
tions are concerned with the general public for the purpose of advancing to other for
expenditure.”
Therefore, a bank is an institution that accepts deposits from the public and in
turn advances loans by creating credit. Therefore, it should be differentiae from other
financial institutions as they cannot create credit through they accepts deposits.
Therefore, summarizing the above, banks are those financial institution that
offer the widest range of financial service.

1.1.1 Origin of Bank:

It is very difficult 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 12th 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 es-
tablished in 1401 A.D was the second bank of the world. Similarly, Bank of Geneva
(1407), Bank of Amsterdam (1609), and Bank of Hindustan (1770) were established.
The first central bank was the “Bank of England” which was established in 1844 AD.

1.1.2 Meaning of Bank

Bank is a financial institution, which is engaged in monitory transaction. Bank
has always been the most importance and largest financial intermediates. Banks col-
lect the scattered money from public providing those interests and services. This col-
lection 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 says “Banks or a financial in-

2
stitution that accepts funds in the forms of deposit repayable on demand or at short
notice.”
Some important meanings of bank given by different scholars are as follows:
According to Walter leaf
"A bank is that institution or individual who is always ready to service money on de-
posit to be returned against the cheque of their depositor.”
According to Harace White:
“Bank is a manufactures of credit and machine for facilitating exchanges.”
According to G. Crowther:-
“A Bank is a dealer in debt in his own and other people are the bankers business is
them to take the debt of other people to otter his own in exchange and thereby to cred-
it money.”
Therefore, the bank is a financial institution which accepts deposits from the
general public and provides loans to different sectors at different interest rates. Bank
plays the vital role in the economical condition.

1.1.3 History of Bank in Nepal

In the context of Nepal, like as in the other countries the goldsmith and land-
lords where the ancient banker. The Nepalese people were highly exploited by ‘Sahu
Mahajan’ by charging higher interest rate, compound interest rate and even by ma-
nipulating the principal amount. The introducing of ‘Tagarath Adda’ during the ten-
ure of the prim minister Ranoddip Sing (1993B.S.) was the first step towards the insti-
tutional 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 bank-
ing 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 Rastrya
Bank was established on 14th Baishak 2014B.S. under Nepal Rastrya Bank Act 2012.
Likewise, Rastrya Banijya Bank under the full ownership of government was estab-
lished on Magh 2022 as per ‘Rastrya Banijya Bank Act 2012’. The growth of the
banks accelerated only after the adoption of liberal economic policy by Nepalese
Government .This has attracted many new investors and encourages opening many
new modern banks with joint venture of foreign banks. Nepal Arab Bank was estab-
lished on 29th Ashad 2041 B.S. as the first modern bank with the joint venture of Du-
bai Bank Ltd. U.A.E. subsequently following its established Nepal Indo Suez Bank

3
France, Nepal Grinlands Bank England on 16th Marg 2043B.S. with its joint venture
of Grinlands Bank England, Kumari 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.

Now, there are 27 commercial banks, 63development banks,77 finance companies

with 45 financial companies and 5 Rural Development Banks.

1.1.4. Commercial 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
bank 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 in Nepal

Table no. 1: Lists of Commercial Banks
S.N. Commercial Banks Established
date(AD)
1. Nepal Bank Limited 1937/11/15
2. Rastriya Banijya Bank 1966/01/23
3. Kumari Bank Ltd. 1984/07/16
4. Nepal investment bank ltd 1986/02/27
5. Nepal Standard Chartered Bank Ltd 1987/01/30
6. Kumari Bank Limited 1993/01/18
7. Nepal SBI Bank Limited 1993/07/07

4
8. Nepal Bangladesh Bank Limited 1993/06/05
9. Everest Bank Limited 1994/10/18
10. Bank of Kathmandu 1995/03/12
11. Nepal credit and commerece bank 1996/10/14
12. Lumbini Bank Limited 1998/07/17
13. Nepal Industrial & Commercial Bank Limited 1998/07/28
14. Machhapuchhre bank ltd 2000/10/03
15. Kumari Bank Limited 2001/10/03
16. Laxmi bank ltd 2002/04/03
17. Siddhartha bank ltd. 2002/12/24
18. Global bank Limited 2007/01/02
19. Citizen bank international ltd. 2007/04/20
20. Prime bank ltd 2007/09/08
21. Sunrise bank ltd 2007/10/12
22. Bank of asia Nepal ltd. 2007/10/12
23. Development credit bank ltd. 2001/01/23
24. Nepal merchant bank ltd. 1996/11/26
25 Kist bank 2009/05/25
26 Agriculture development bank 2006/03/16
27 Janata Bank Nepal Ltd. 2010/04/29

1.2 Profile of the Organization

Kumari Bank Limited (Kumari ) 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
Kumari . Currently NB (international) limited. Ireland is the foreign partner.

Kumari Bank limited had the official name Nepal Arab Bank Limited till 3lst
December 2001. Kumari is the pioneer in introducing maims innovative products and
marketing concept in banking sector of Nepal with 62 branches 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 Kumari is a milestone in the banking

5
history of Nepal as it paved the way for the establishment of many commercial banks
and financial institutions.
Kumari provides a full range of commercial banking services through its out-
lets spread across the nation and reputed correspondent banks across the globe. More-
over, Kumari 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. Now, the Authorized capital of the bank is Rs. 500 million while the issued
and paid up capital is Rs. 49, 16, 54,400.

The share holding of KUMARI Bank Ltd. is as following:

Table No. 2: Share holders of Kumari Bank
Subscription Percent Holding
N.B. (International), Ltd., Ireland 40%
Nepalese Public 39%
NIDC 11%
Rastriya Beema Sansthan 8.57%
Nepal Stock Exchange Ltd. 1.43%
Total 100%

Figure 1

Share Holding of Nabil Bank

N.B. (International),
8.57 1.43 Ltd., Ireland
11 Nepalese Public
40
NIDC

Rastriya Beema
39 Sansthan
Nepal Stock
Exchange Ltd.

6
Kumari cordially invites you to visit its branches/counters to have the taste of fledge
banking services
KUMARI BANK LIMITED
HEAD OFFICE
Kumari House, Kamaladi,Katmandu.

Table no. 3 The Board of Directors of Kumari consists of:-

Chairman Mr. Amir Pratap J.B. Rana

Director Mr. Upendra Keshari Neupane
Director Mrs Krishna Prasad Gyawali
Director Mr. Chandra Prasad Bastola
Director Mr. Mahesh Prasad Pokhrel
Director Mr. Iman Singh Lama
(Sources: Annual Report 2022)
Services
❖ Deposit
Following types of accounts can he opened at any KUMARI branches upon
completion of simple documentary requirement. The entire accounts can he opened in
various currencies (against which rate are provided) subject to ruled of opening and
fulfilling the required documents.
➢ Savings
➢ Current
➢ Fixed
➢ Call
➢ Kumari General Saving

❖ Corporate Lending
Kumari Bank offers a complete range of credit facilities that suits the needs
of the corporate sector from national, regional and multi-national corporations to
business houses. Kumari Bank highly values its credit relationship and believes in
growing together with its borrowing customers trough mutually beneficial partner-
ship.

7
 ❖ Infrastructure and Project Financing
Infrastructure is the basic element for the development of any country.
With this ideology, Kumari has set up a separate unit “Infrastructure and Project Fi-
nancing” that is aimed to cater the financial needs and advisory services of viable in-
frastructure projects.

❖ Small and Medium Enterprise & Micro Financing

About 75% of the total population still resides in rural areas and the
majority of the population in urban and sub-urban areas (estimated as 25 % ) engaged
in the business operate small and medium enterprises. With the intent of augmenting
the economic standards of the people residing in rural areas and the people running
SME, the bank has set up a new unit SME & ML to cater the dedicated services.

❖ Trade Finance
Kumari offers all types of trade services like Documentary Credit, Guarantees
and Collections through one of the most experienced foreign trade teams in the
nation, and provides much needed support and advices in the curse of complex
international trade dealings. Worldwide correspondent relationship enables
Kumari to establish Letters of Credit in any corner of the world and have it
confirmed by reputed international banks of competitive rates whenever re-
quired.

❖ Personal Lending
Kumari is committed to provide its customers the highest standards of ser-
vices when it comes to their personal financial needs. ‘Kumari Housing meets
the customer’s needs of purchasing or renovating their dream house. ‘Kumari
Auto’ provides financing to purchase vehicles. ‘Kumari Properties’ enables
customers to borrow from the Bank for any of their financial needs by mort-
gaging their idle property. Kumari is also among the few authorized Banks
recognized by the Australian Government for education loan processing. Fur-
thermore, ‘personal Finance’ has made it possible for our customers to borrow
money to purchase household items.

8
 ❖ Bancoasurrance
As a drive towards becoming no. 1 choice provider of complete financial so-
lutions’, Kumari has set up a new unit ‘Banc assurance’ that primarily pro-
vides insurance agency services for both life and non life.

❖ Kumari Net
Through Kumari ’s internet banking facility ‘Kumari Net’, customers can
bring
the Bank right to their homes and offices. Customers, ranging from individuals, IN-
GO’s, development agencies, and corporate houses, can avail of a host of services like
transferring funds, viewing account balances, downloading and printing account
statements, inquiring status of issued cheques etc.

❖ ATMs
Kumari has a large domestic network of 48 ATMs in the Kathmandu valley
and outside, in locations like Birtamod, Damak, Itahari, Dharan, Biratnagar, Birgunj,
Hetauda, Narayangadh, Baglung, Butwak, Bhairahawa, Ghorahi, Tulsipur, Nepalgunj,
Dhangadhi, Mahedranagar and Pokhara. These ATMs serve customers 24 hours a
day, 365 days a year. Kumari ATMs also accept credit and debit card products of Vi-
sa, Master Cards and SCT. Further extension of ATMs in various locations inside and
outside Kathmandu valley is still under Kumari ’s immediate business plan.

❖ Mobile Commerce
The utility of E-commerce is growing exponentially. To be competitive
and with the intention of providing modern banking services, the bank has launched a
new product Mobile M-pay service. To start with, the bank is rendering mobile re-
charging service through SMS, Top up, QR cod and Smart mobile Banking. The
product is intended to provide utility payment services and fund transfers in future.

❖ Remittance Products
Kumari has been committed to provide top-natch services to its customers
through its remittance products like Western Union, Kumari Remit, Draft and SWIFT
Transfers in Indian Currency and Foreign Currnecy and Traveler Cheque and Foreign
Currency Cash Sales.

9
 ❖ Safe Deposit Lockers
Kumari offers complete safety of customer’s valuables (documents, jewelry
etc) through its Safe Deposit Lockers of nominal service charge.

❖ Other Services
Through its SEVIS fee payment system Kumari has facilitated US going
students and to all applying for US, as an application collection center. Kumari also
offers forward contract facility, collection/clearing of cheques, FCY exchange, Bal-
ance Certificate & Goods for Payment services.

1.3. Statement of the problem

Deposit mobilization refers to the collection of small and scattered saving of
the people and directs them for investment for the productive purposed thereby con-
tribution to the further increase of saving through improvement of the income level of
the savers. Thus it is the most dependable and important source of capital formation.

Need of Deposit Mobilization

a. Deposit mobilization is an effort to collect the unproductive and idle saving
that is spread all over the country in different forms.
b. The mobilized capital can be invested in productive and socially desirable sec-
tor for the production of productive capacity, employment generation etc.
c. Deposit mobilization restricts the scare resources from flowing into unneces-
sary uses. The money misutilised on unproductive sector, religious and
demonstration expenditure would now be released for their optimal uses.
d. Deposit mobilization helps to contribute in the formation of capital without
which the technologies remain inactive and confined to agricultural operation.
e. Deposit mobilizations transfers the idle resources into active uses and increase
the savers and inverse income together with contributing for the economic de-
velopment of the country.

1.4 Objectives of the study

The various objectives of this fieldwork report are as follows:
i. To familiarize with the banking procedure regarding deposits.

10
 ii. To know the deposit mobilization of Kumari .
iii. To find out tools used to attract the depositors.
iv. To suggest options to overcome the current problems of deposits in
branch.
v. To know the contribution of Kumari bank for the economic develop-
ment of the nation.

1.5. Research Question

Kumari bank’s financial position is very strong in comparison to other
banks. The working for the year under review has resulted in a record net profit of
Rs. 291.37 million against Rs. 271.63 million in 2001/02. The substantial decrease in
net profit is mainly due to difficult economic condition in Nepal

The Highlights of 2022/023 are as follows:

Table no. Financial position of Kumari Bank (Rs. in Million)
Subjects 2022 2023 Growth in%
Net Worth 2437.2 3130 28.43
Deposits 31915.0 37348 17.02
GrossLoan,Advance&Bills Purchase 21759.5 27999 28.67
Interest Income 1978.7 2798.48 41.43
Interest expenses 758.4 1153.28 52.07
Net interest income 1220.3 1645.20 34.81
Other income 94.35 144.16 52.79
Other expenses 220.75 265.15 20.11
Net profit before tax 1186.8 1615.92 36.16
Profit after provision 1197.9 1626.53 25.78
Staff bonus 108.9 147.86 25.78
Corporate tax 342.5 447.61 30.69
Net profit 746.5 1031.05 38.11
(Sources: Annual Report 2019/2023)

During 2022\023 Kumari ’s net worth and deposit have increased by

28.43%and 17.02 % respectively.

11
 In this respect, the bank has succeeded in proceeding to the standards set by
the regulators of the country. The main achievement for Kumari Bank is in soliciting
deposits in this competitive market which compared much higher with last year. Total
deposits increased to Rs. 37,348 million from Rs. 31,915 million of previous year.
This shows the introduction of various schemes that the bank introduced for more
deposits.

The gross loans & advances reaches to Rs. 27,999 million as at July 2009
marks a growth by Rs. 6,240 million, 28.67% increase over the amount of previous
year. The Bank has diversified the loan portfolio with a mix of different sectors from
personnel lending to small & medium enterprise lending, grameen micro-lending
weighing up risk factors. Some of the major projects, being financed by the bank,
were delayed; otherwise the decrease would have been low. The drawdown's have
taken place in the current year. Due to the increase in loans and advances and
decrease in the cost of deposits, net interest income has improved .Similarly other
income improved by 52.79%mainly due to the increase in Letter of Credit Card
Business. Its growth in operating expenses this year is by 20.11 % mainly due to
higher depreciation expense on the assets booked during the year and the write off of
the receivables. Again the bank’s capital adequacy ratio continues to be highly
comfortable. At the close of the year under review, this ratio stood at11.1% as against
the statutory minimum requirement of 8%. This is considered particularly satisfactory
in the view of the stiff completion and overall economic recession being witnessed by
the banking industry.

1.6 Significance of the study

Following are the significance of the study.
• It helps to complete BBS 4th year education.
• It can be good assets of library and guidelines for other report writer.
• It may help other researchers as well.
• The report may be useful for banks, as the suggestion and
recommendation have been provided.

1.7 Literature Review

12
Literature review is concerned with the review of literature to the Deposit Mobiliza-
tion Of Kumari Bank Limited. The main purpose of review the literature is to develop
some expertise in one to see what new contribution has made to receive some idea for
developing a research design. This chapter highlight the literature that is available in
concerned subject as to my knowledge, research work and relevant study on the topic,
review of journals and articles and review of thesis work .There are many types of
literatures which are as follows:

1.7.1 Conceptual Review

Kumari Bank Limited has done a marvelous in the history of banking industry in Ne-
pal. As one of the largest bank of Nepal it has to façade lots of challenges from the
growing banking sector amongst service institution. Today Kumari Bank is a leader
in the financial sector in Nepal. With the network that has17 points of representation
spread across the kingdom and complimented by a network of ATMs and other e-
banking transaction with the facilities of Internet access for customer convenient. It is
full service bank providing an entire range of products and services, starting with de-
posit accounts in local and foreign currency, visa master card, personal lending prod-
ucts for auto, home and personal loans with extra activities like lakhpati yojana, trade
finance product, treasury service and corporate financing.

Its values are focused on how to improve the customer services, result oriented, inno-
vative, synergistic and professional Kumari Bank has a great opportunity and
strength. Similarly it has some threats and weaknesses, which must be analyzed to
advantage. The improvements in these weaknesses can increase the benefits and allow
it to exist in the competition for a long period.

1.7.2 Strength of KBL

1. Not dollar hungry as other joint venture banks. KBL is able to sale its dollar
reserve to Nepal Rastra bank, which it earned by remittance.
2. It has built the bank with international quality standard.
3. KBL is totally focusing on customer satisfaction and up lifting their living
standard by providing different deposited skims like lakhpati yojana.
4. KBL is interconnected with its branches by wireless network (internet facili-
ties).

13
1.7.3 Weakness of KBL
1. Although KBL has used structure of banking service, it could not bring out
any scheme focusing on low income or lower middle class.
2. It’s losing its customer as it is lacking its ability to establish new branches in
rural areas.
3. Power are limited within the branch manager like for providing the loan, with-
draw of deposit.
4. Recruitment of local human resource can increase the efficiency of bank in
generating revenue by marketing in local community.

1.7.4 Opportunities of KBL

1. It can invest its capital in different sectors like hydropower, agriculture, hous-
ing, e-commerce business and so on.
2. It can establish its branches across the country.
3. KBL can increase its rate of return so that it can pull lots of customer like
higher class, middle class, lower middle class.
4. Investing their capital in tourism sectors to earn foreign currency.

1.7.5 Threats of KBL

1. Other banks scheme with higher return and more customer focus
2. Other creates monopolistic market facilities several banks.
3. Willful defaulters who increase bad debt are harming banking facilities.
4. Unstable government with changing policy in banking sectors is affecting op-
eration of bank.

1.8 Research Methodology

A sound and systematc methodology is required to carry out any study if it si
to be worthwhile. As the main objective of the study is to find out the true financial
performance of Kumari , during the financial year of 2017/018 to 2021/2022. It is one
attempt to analyze the financial data of the above using various tools of financial
analysis. To shed the light on what the study is above, how it is conceived and imple-
mented in the present chapter the methodology of the study has been outlined. This
chapter runs with the following research methodology:
• Natures and sources of data

14
 • Data collection procedure
• Data processing
• Statistical/ Mathematical tools

1.8.1 Nature and sources of data

After the purpose and objectives of the study has been determined, the next
thing to do is to determine the sources of data. The main sources of data are primary
source and secondary source. The first hand collection data is the primary source of
data. Data, which ae not collected originally but obtained from different published and
unpublished sources are known as secondary data.
The source of data can be determined as per the requirement of the study. The
choice between the two depends on the following consideration.
I. Nature and scope of the study
II. Availability of the financial resources
III. Availability of time
IV. Degree of accuracy desired
This study is mainly based on the data of secondary source as available data
provided on an adequate basis for analysis. Various publications of Kumari ,
annual report and financial statements of Kumari , different books, journals
and articles from secondary sources in this study. Besides these websites of
Kumari bnak also is an important source of data for this study.

1.8.2. Data Collection Procedures

The most difficult problems faced while conducting the study is gathering and
obtaining of the desired information or data. Utmost care must be exercised while col-
lection data because data constitute the foundation on which the superstructure of the
study is built. This study is mainly based on the secondary data. So the data can be
collected from the published source and unpublished sources.

Published sources
I. Reports and official publication or international bodies and central and state
governments can be obtained from different from different HMG offices.

15
 II. Semi –official publications of various local bodies such as Municipal Corpora-
tion and District board can be obtained from, respected offices.
III. Private publications of professional bodies and annual reports of organizations
can be collected from respective sources.

Unpublished sources
All materials are not always published. One great e.g. of unpublished source is
the studies conducted by scholars. These types of data can be collected from individu-
als and educational centers on the request.
Formal and informal talks to concerned head of the department of the bank
and other employees were also helpful to obtain the additional information about the
related topic.

1.9. Data processing

Completing the task or collecting data shifts the scene from the field to the pa-
per work. While processing and editing data utmost care has to be taken. It is neces-
sary to see that the data are complete in every respect and the information supplied is
consistent and accurate.
Collected data for five years period i.e. fiscal year 2018/019 to 2022/023 are
presented in tabular form. Tables are prepared to show various financial result of the
same period. These tables are accomplished by corresponding percentage changes and
average. Charts and figures are also prepared to depict a clear picture about the posi-
tion and situation of the banks.

1.10. Statistical / Mathematical Tools

To exhibit the true financial performance of the Kumari the data in the table
and charts are subjected to the various tools.
Specifically, the tools are:
➢ Financial tools: With respect to financial tool ratios have been calculated. Ra-
tio Analysis is a widely used tool of financial analysis. The term ratio refers to
the numerical or quantitative relationship between two items/ variables. A ra-
tio is calculated by dividing one item of the relationship with the other. This
study focuses on the profitability ratio.

16
➢ Statistical tools: A statistical tool such as mean, standard deviation etc has
been calculated here.
➢ Mathematical tools: With respect to the mathematical tools percentages have
been calculated.

17
 Chapter II

Presentation and Analysis of Data

3.1 Introduction
IF there is saving there is deposit. Income is divided into expenditure and sav-
ing. The money saved out of income and deposit in bank, that saving becomes de-
posit in the bank and bank provides interest on that deposit. The bank invests such
deposit in productive, industrial business, deprived rural and government bond and
earns profit. There is, therefore direct relationship between deposit and investment.
if a deposit is higher the investment and vise versa.
Further, Radhashowme & Basudevan opines about investment policy of bank
can be explain that: - The secret of successful banking is to distribute resources
between the various firms of assets in a such a way so as to get sound balance be-
tween liquidity and profitability so that there is sufficient cash to meet every claim
and at the same time enough income to meet its expenses and distribute profit
among the shareholders.
Deposit plays an important and vital role on the parts, both public as well as
bank. If bank provides the proper deposit collection procedure, it will be beneficial
to nation also. The costumers get interest, feel secured and can withdraw money at
any time.
The bank on the other hand invests their deposit in the productive and other
sectors at higher interest rate and makes profits. The banks therefore always motivate
and encourage people to open accounts and deposit money. Generally money is de-
posited into three accounts in the bank but Kumari Bank has provided six account.
Deposits are the main sources to meet the growing demand of financial assis-
tance. The bank basically depends upon the deposits. Higher the volume, higher will
be the volume of lending and investment, which again generate higher volume of
profit and vice-versa. So a bank first of all tries to mobile as much deposit as possible.
In general, deposit is a process of collecting money from the savers. These
days, people are also aware that by depositing money in bank, they would benefit with
many other facilities. By, saving in a bank, the people have opportunity of earning
interest, which would be useful for the future odds such on theft, robbery, accident or
loss, which are hence risky. The deposit of a bank is influenced by different factors

18
like interest ratio, types of customers, physical facilities types and range of services
offered etc.
In order to facilitate habit of saving among the people bank accepts different
types of deposit accounts they are:
1. Current Deposit:
Current deposit is also known as demand deposit as the deposit is withdrawal
on “demand”. Anyone can open current account in the bank. However, it is normally
opened by the business men/ business institution that have to withdraw such fund at
any time because no with drawl restriction is imposed in current deposit as regards to
amount and tenor. Since banks have to maintain high liquidity to meet customer’s
demand, no interest is paid on such deposits.
2. Saving Deposit:
Bank accepts saving deposits from individual and non-profit making organiza-
tions. Purpose of saving deposits it to encourage the habit of saving among the com-
mon people and institutions. Saving deposits attracts interest, which is normally less
than that of long-term deposit but more than that of short-term deposit. Because of the
imposition of with drawl restrictions on saving deposits as regards to amount of tenor,
banks can utilize the deposit for short term investment and advances and hence, offer
the interest. Most of the banks apply interest on the minimum monthly balance while
some banks apply interest on average daily balance.

3. Fixed Deposit:
Fixed deposits are money deposited by the customers for a fixed period, which
ranges currently from 3 months to 3 years and over, a fixed rate of interest depending
upon the period in which they are deposited. As the period increases, rate of interest
also increases. Unlike other deposits where funds can be added or deducted, fixed de-
posit is always for fixed amount. Fixed deposit refers to the deposit of fixed amount,
fixed interest rate, fixed term and fixed payee. Since banks know the payment date,
bank can invest these funds without any anxiety of liquidity crunch.

4. Margin account:
Bank issue Guarantee, L/C indemnity etc on behaves of the customer for a
specified sum of money. Those amounts have to be paid to the beneficiaries of the
aforesaid instrument provided they claim as per the terms and conditions agreed upon.

19
Thus the bank is exposed to contingent liability. To reduce the liability of bank asks
the customers to deposit a certain amount (varies as per the credit standing of asks the
costumers) as the margin of safety, which is know as margin deposit. Bank opens a
fictitious account on the name of the customer, but dies not pay interest. Deposit is
returned to customers if claims are not lodged. In case of claim the amount is utilized
to honor the claim. The customer is asked to cover the shortfall.
5. Call account:
It is a mix of fixed account and current account.

6. Other account:
Those accounts which are not explained in above are come in this holder.

2.2. Deposits and its Mobilization

From the above 5 yrs. Financial Summary (2018-2022mid July), deposit and
mobilization is estimated. Deposit is mainly mobilized by issuing loans, advances
plus bills purchased and discounted.

Table no. 5. Deposit and its Mobilization

Year Loans & Adv Bills purchase Total deposit mobilization

(B) (A+B)
(A)

2019 10,465,266,388 120,903,614 10,586,170,002

2020 12,681,666,487 240,876,666 12,922,543,153

2021 15,195,543,454 350,235,276 15,545,778,730

2022 21,159,852,962 205,200,356 21,365,053,318

2023 27,431,771,924 158,161,117 27,589,933,041

(Sources: Annual Report 2019/2023)

✓ Total deposits means two types deposits viz. interest bearing deposits and
non-interest bearing deposits.
Interest bearing deposits are savings and fixed deposits in which
commercial bank has to pay time bearing interest rate, where as non inter-
est bearing deposits are current a/c, margin and others

20
2.2.1 Deposits Liability of KUMARI for the year ’2021 &2022
(In NRs)
Table no. 6. Deposit Liability of Kumari
S.N. Items 2022 2023
1 Non Interest Bearing Deposits:
A Current account 5,284,368,064 5,480,533,468
i Foreign currency 2,090,750,510 1,434,733,089
ii Local Currency 3,193,617,554 4,045,800,379
B Margin 361,782,186 463,015,109
i Employees Guarantee 3,741,690 4,751,756
Ii Guarantees Margin 141,565,077 175,150,986
iii Others 6,279,573 4,758,256
Iv Letters of Credit Margin 210,195,846 278,354,111
C. Others 81,404,000 35,320,250
I Foreign Currency 65,032,000 18,052,750
Ii Local Currency 16,372,000 17,267,500
Total (A+B+C) 5,727,554,250 5,798,868,827
2 Interest Bearing Deposits:
A Savings 12,159,966,430 14,620,487,308
I Foreign Currency 1,201,014,431 1,687,571,020
Ii Local Currency 10,958,951,999 12,932,836,288
B Fixed Deposit 8,464,086,113 8,310,708,297
I Foreign Currency 2,586,295,123 2,742,415,150
Ii Local Currency 5,877,190,990 5,568,293,147

C Call Deposit 5,563,440,674 8,438,271,408

I Foreign Currency 1,079,776,017 1,273,037,156
Ii Local Currency 4,483,664,057 7165234252
D Certificate of Deposits - -
Organized institutions - -
Total(A+B+C+D) 26,187,493,217 31,369,387,013
Total (1+2) 31,918,047,467 37,348,255,840
(Source: Annual report 2022/2023)

21
 The above table shows the deposit accepting of Kumari for two fiscal years i.e.
2021 and 2022. Like other commercial Banks Kumari also has two type of deposit
funding. In one type it has to pay interest where as other one is non-interest bearing
deposit. In F/Y 2022, the total non-interest bearing deposit is Rs.5,727,554,250 and
in F/Y 2022, it is NRs 5,978,868,827 i.e. an increase of 4.38%. In interest bearing
deposits Kumari has to pay interest to its customers for their saving and fixed de-
posits. The total of interest bearing deposits is NRs.26,187,493,217 for ’2022 and
NRs. 31,369,387,013 for ‘2023, which is an incensement of 17.04 %. It is going
step in formulation of capital for the co-operative sector, which in turn is helpful in
the development of economy.
2.2.2 Deposits Increasing Trend
Table no. 7. Deposit Increasing Trend(Rs in Million as at mid July)
Year Total deposit Increment in Rs. Increment in %

2019 15,686 579 3.69

2020 20,236 4850 23.96

2021 24,543 3989 16.25

2022 32014 8660 27.05

2023 38479 6544 17.006

(Source: Annual Report 2019/2023)

Increment percent is calculated by using the formula

Increment x 100
Previous yr. deposits

Increement trend of Deposit

30
27.05
25 23.96
increment(%)

20
16.25 17.006
15 Figure no. 2 deposit
10
5 3.69
0
2019 2020 2021 2022 2023
years

22
The deposit increment percent for the F/Y ’019 is 3.69%. In figure, the increment is
NRs.579 (million). It is a very aggressive approach for the profit maximization of
Kumari . For this, Kumari might have displayed various attractive schemes of its
valued customer. Better utilization of this fund may be useful in the capital
formulation for the much needy corporate sector.

But after the F/Y 020, the percentage ratio has gone up to 23.96%. In
F/Y 019, the percent has diminished. It has diminished to 20.27% which is an
incensement of 4271 million.In F/Y 2021, the percent ratio has diminished. It has
diminished to 7.71%, which is an incensement of NRs3989 (million).

Now, in F/Y 022, the percent ratio has increased up to 36.7% which is and increment
of 8660 million. It is a good stage of recovery. And now in FY 2023 it is an increment
of only 17.006 % due to higher competition.

The trend shows the in deposit accepting pattern of Kumari .

2.2.3 Mobilization Increasing Trend

Mobilization: Loans & Advances + Bills Purchased + Discounted
Table no. 8 Mobilization Increasing Trend (Rs.in million)
Year Total Increment in NRs Increment in %

2019 10,594 2307 21.77

2020 13,122 2396 18.25

2021 14,945 2593 17.35

2022 20,865 5760 27.60

2023 26486 6211 23.45

(Sources: Annual Report 2019/2023)

23
Increment percent is calculated by using the formula
Increment x 100
Previous yr. Mobilization

Mobilization increasin trend

30000
25000
20000
Amounnt
15000
(million) Total Deposit
10000 Increement
5000
0
2019 2020 2021 2022 2023
Year

Figure no. 3
Statement:
The main source of revenue generation of commercial bank is the mobi-
lization of its deposit. Commercial bank mobilize the deposits in two headings viz.
issue of loan and advances and the purchase and discounts of bills of corporate hous-
es.
It is a hindrance for the purpose of profit maximization of Kumari Bank ,
in the F/Y of 019, the interest rate is 21.77% and for F/Y 020. It is 18.25.06%. The
figure amount of increment is NRs 2593(million) for 2021 and NRs5760 (million) for
022 and NRs 6211 (million) for 023 .This shows that like deposit accepting trend mo-
bilization trend is also in a fluctuation pattern.

24
2.2.4 Deposit Lending Trend (A Ratio Analysis)
Table no. 9 Deposit Lending Trend (Rs. in million)
Year Deposit Mobilization Mobilization to
Deposit %
2019 14,586 10,586 72.57

2020 19,347 12,922 66.79

2021 23,342 15,545 66.59

2022 31,915 21,365 66.94

2023 37,348 27,586 73.86

(Sources: Annual Report 2019/2023)

Mobilization to deposit percent is calculated by using the formula

Total mobilization x 100
Total deposits

Deposit Lending Trend

40000
30000
Amount (million) 20000
Deposit
10000
Mobilization
0
2019 2020 2021 2022 2023
Year

Figure no. 4
Statement:
The above calculation and table shows us how the deposits are mobilized
in the economy i.e. market.

The above figure shows us that Kumari has adopted a moderate approach in the mo-
bilization of the deposits in all the 5 fiscal years. The graph shows us that rate of de-
posit mobilization is steady i.e. it is a constant graphical line.

25
 In the F/Y 019 the ratio percentage of mobilization to deposits is 72.57%
i.e. out of the total amount of deposits of NRs 14,586(million) only
NRs10,586(million) was mobilized in the economy.
The mobilization of deposit in 2019 decreased to 66.79%. In the F/Y
2019\2020 the net profit rises by 72.5 million.

In F/Y 2021, the percentage rate of mobilization to deposit is 66.59% i.e.

out of the total amount of deposit of 23,342(million).And total mobilization
is15,545(million). Similarly, in FY 2022, the ratio percentage of mobilization to de-
posits is 66.94% i.e. NRs 21365 (million) and 73.86% i.e. NRs 27586 (million) from
2023.

2.2.5 Loans & Overdrafts to Total Assets, Ratio Analysis

Assets of CB’s are the employment of funds. Kumari has employed its funds
in 6 assets heading. The heading are viz. cash and bank balance, investments and
placements, loans and advances, bills purchased and discounted, other assets and dif-
fered expenses, and lastly in fixed assets which is the purchase of land & building,
furniture etc. This is the percentage ratio of loans and advances to total assets em-
ployed. This ratio shows what the percentage of total mobilization to total assets is.
As among the other assets employed loans & advances and bills purchased and dis-
count is the key to the door of profit.

26
 2.2.6 Table of Loans and Drafts to Total Assets
Table no. 10. Table of Loans and Drafts to Total Assets (Rs. In '000)

S.N Items 2019 2020 2021 2022 2023

1 Cash & Bank Bal-

ance 146,352 237,818 270,406 511,426 674,395
2 Investment & Place-
ments 4,267,233 6,178,533 8,945,310 9,939,771 10826379
3 Loans & Advances 10,465,266 12,681,666 15,195,543 21,159,852 27431771
4 Bills Purchased/Disc. 120,903 240,876 350,235 205,200 158,161
5 Other As-
sets/Deferred Exp. 543,883 544,668 512,050 606,393 864,659
6 Fixed Assets 361,235 319,086 286,895 598,038 660,988
7 Total Assets 15,904,872 20,202,647 255,604,439 33,020,680
(Sources: Annual Report 2018/2022)

Percentage ratio of loans and advances/Total assets is calculated by using the

formula
(Loans & advances + Bills purchased & discount x 100)\ total assets

Percent ratio of loan to total assets

68 66.56
66 64.7
63.96
64
percent 62 60.71
60
58
56
2019 2020 2021 2022 2023
year

Figure no. 5.

27
Statement
The above table and percentage ratio shows us how much the mobilization
consists of total assets i.e. of loan and advances plus bills purchased and discounted.
In the F\Y of 019 the percentage ratio has slightly increased to 66.55%. It is of
total assets of NRs.15,904.872 million only NRs. 10,586milllion consists of loan and
advances plus bills purchased and discounted. In the F\Y 2020, the percentage ratio is
63.56% which is of NRs. 20,202.647 million of total assets out of it NRs. 12,922 mil-
lion is mobilized .
In the F\Y 2021 the total assets amount to NRs.255,604.439million out of which
NRs.15,545 million is loan and advances plus bills purchased and discounted. Hence
the percentage is decreased to 60.89%.
Similarly the percentage of F\Y 2022 has increased by3.81% i.e. the ratio has in-
creased to 64.70% where total assets amount to NRs. 33,020.68 million out of that
only NRs . 21,365million is mobilized in the market.
In the FY 2023, the percentage ratio has increasing in comparison to previous
year. That means the ratio has increased to
The graph shows a constant line rather it is a slight diminishing line. The rate during
the F\Y’s has been fluctuating from 54.08% to66.55%.

28
 Chapter III

Summary and conclusion

3.1 Study Result
From the above study of the deposit mobilization of Kumari Bank Ltd, I have
achieved the fallowing study result.

3.2 Deposit Mobilization of KUMARI

From the above analytical study it is clear that the main function of C.B’s are
the acceptance of deposit and lending of surplus of deposited money by maintaining
the minimum cash balance as per the directives of central bank. So it is crystal clear
that without the acceptance of deposit and proper utilization of it i.e. mobilization no
C.B. can fulfill its objective and function.
The presentation and analysis of the data of Kumari shows us that deposit increasing
trend is not steady and has fluctuated in four fiscal years of 2019, 2020, 2021, 2022
& 2023. In the F/Y of 019 it has slightly decrease to 3.31%.In the F/Y 020 the rate
increased to 32.6% and in the F/Y 021 the rate has gone slightly down to 20.6% In
F/Y 2022 the rate has increased to 36.7%. And in last FY, the rate has 17.04%. And
the trend of fluctuation may be a treat to Kumari as the deposits are the very key for
the profit maximization.

Role of Kumari in Economic Development of Nepal

Kumari has played a vital role in the development of Nepalese economy by: -
Maintaining the regional balance: Kumari is operating altogether 28 branches
throughout the kingdom. This shows that it procures funds in the form of deposits
from the advanced urban areas and mobilizes it in the economically deprived area
which is agriculture and rural area.

Fulfilling the needs of sectoral area: Nepal is an agriculturally based country and
the manufacturing industry is also upcoming. Kumari has stand as a pillar for provid-
ing necessary credit for the enhancing and upgrading sectors. Not only in this sector
but it has played unique role in the versatility of the infrastructural sector of Nepal.

29
Creation of employment: The main problem of an economy of a nation is unem-
ployment. Kumari has tried to solve this problem by generating hundreds of jobs di-
rectly and
Thousands of jobs indirectly.

3.3 Summary:
Kumari Bank the first joint venture commercial bank has started its operation
from 12th July 1984. It was the subsidiary of Emirates Bank International Limited,
Dubai consisting 50% of the equity. Later on EBIL sold its shares to Bangladesh Na-
tional Bank Ltd., Dhaka. It has a matrix system of organizational management. Board
of Directors being the main controlling body, followed executive director or chief ex-
ecutive officer and so on. It is a well-established and well-recognized and reputed or-
ganization in commercial banking sector providing services very promptly and with
full of professional way.

3.4 SWOT analysis

SWOT analysis is one of the tools to evaluate the strength, weakness,
opportunity and threat of the organization.
S-strength of Kumari
✓ Kumari ’s main strength is strong financial position and open cloture. Be-
sides, effective staffing, full computerized technology and quality cus-
tomers is also the positive aspect of it.
W-weakness of Kumari
✓ Kumari does not try to invest in rural and small size industry rather then
paying penalty of NRB.

O-opportunities of Kumari
✓ Kumari , introduce new services like ABBS (Any Breach Banking Ser-
vices) and SWITCH- Kumari is shortly purchasing the SWITCH to inter-
connect its ATMs so that customers having account with any breach are
able to use any of the bank’s ATMs.

T-threat of Kumari

30
 ✓ High competition, small marker size, sluggish economic growths and low
investment are the major problems for Kumari .

3.5 Conclusion
Weaknesses in the management of Kumari :
Kumari ’s maximum percent of total deposits is occupied by the fixed deposit,
which is the interest bearing deposits and has more interest rate than other deposits.
This has made cost more and can adversely affect the profitability of Kumari . This is
a serious threat of Kumari and the management should look out for the solution.
There is a cut throat competition in the banking sector due to emergence of number of
banks and too many finance companies has been adversely effecting the acceptance of
deposits and its mobilization. The rival of commercial banks and upcoming finance
company provides many facilities to deposit holders and prompt service to the deposi-
tors. The management of Kumari should not ignore this.

31
 Bibliography

“Banking and financial statistics” NRB Mid July 1997

“Commercial Banking Act 2031 BS” Ministry of Law and Justice, HMG
“Commercial Bank and Financial Management” 5th edition Joseph F.
Sinkey, Jr
“Banking Theory and Practice” Shekhar & Shekhar
“Business Mathmatics” A.K Chudhary
17th and 18th AGM report of KUMARI .
Basic Socio-Economic Indicator of Nepal, Dec – 2001.
Singh Hriday Bir, “Banking and Insurance”.
www.rbb.com.np

32
ADDRESS AND CONTACT NUMBER OF BRANCHES

Kumari House
Location : Kamaladi
P.O. Box: 3279, Kathmandu
Telephone : 4430425, 4429546-47, 4435380-85
Fax : 977-1-14429548

Birtamod Branch
Location : Hicola Road, Anarmani -3, Jhapa

Telephone : 023-543727
Fax : 977-023-5434400

Itahari Branch
Location : Main Road, Itahari, Sunsari
P.O. Box: 208, Biratnagar
Telephone : 025-580741,581400
Fax : 977-025-581054

Biratnagar Branch
Location : Goswara Road, Biratnagar, Morang
P.O. Box: 208, Biratnagar
Telephone : 977-021-526213,522752
Fax : 977-021-526214,524800

Dharan Branch
Location : Mahendrapath, Dharan, Sunsari
P.O. Box: 208, Biratnagar
Telephone : 977-025-530130
Fax : 977-025-530131

Birgunj Branch
Location : Adharsanagar, Birgunj, Parsa

33
 P.O. Box: 73, Birgunj
Telephone : 977-051-521476,521746
Fax : 977-051-523156

Power House Chwok Branch

Location : Shreepur, Parsa
P.O. Box: 73, Birgunj
Telephone : 977-051-528680
Fax : 977-051-52868
Hetauda Branch
Location : Bank road, Hetauda - 4

Telephone : 977-057-524667,524689
Fax : 977-057-524690

Kantipath Branch
Location : Kantipath, Kanthmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4227181,4226785-87
Fax : 977-01-4226905

New Road Branch

Location : New Road, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone :
Fax : 977-01-4224837

Jorpati Branch
Location : Jorpati, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4470498,4460569
Fax : 977-051-528680

Tripureshwor Branch

34
Location : UWTC, Building, Tripureshwor, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4117014-17
Fax : 977-01-4117018

Maharajgunj Branch
Location : Maharajgunj, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4720870
Fax : 977-01-4720844

Lalitpur Branch
Location : Kupandole, Lalitpur
P.O. Box: 3729, Kathmandu
Telephone : 977-01-55428291,5520431,5532189
Fax : 977-01-5542890

New Baneshwor Branch

Location : New Baneshwor, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4485212
Fax : 977-01-4490882

Hall Chwok Branch

Location : Halchwok, Swoyambhu, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-403353,4033554
Fax : 977-01-4033552

Thamel Branch
Location : Thamel, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4122167
Fax : 977-01-4238543

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Kaushaltar Branch
Location : Kausaltar, Bhaktapur
P.O. Box: 3729, Kathmandu
Telephone : 977-01-6635184,6635460
Fax : 977-01-6635199

Chabahil Branch
Location : Chabahil, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4464470
Fax : 977-01-4464469

Maitidevi Branch
Location : Maitidevi, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4439488,4443706
Fax : 977-01-4434035

Kuleshwor Branch
Location : Kuleshwor, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4287547,4287576
Fax : 977-01-4287596

Balaju Branch
Location : Balaju, Kathmandu
P.O. Box: 3729, Kathmandu
Telephone : 977-01-4388915-16
Fax : 977-01-4388918

Satdobato Branch
Location : Satdobato, Kathmandu
P.O. Box: 3729, Kathmandu

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Telephone : 977-01-5550332
Fax : 977-01-4429548

Narayangadh Branch
Location : Sahid Chwok, Narayangadh -4, Chitwan

Telephone : 977-056-523033,532487
Fax :
Pokhara Branch
Location : Dipendra Sabhagriha, New road, Kaski
P.O. Box: 442, Pokhara
Telephone : 977-061-520162,525715
Fax : 977-061-525203

Lakeside Branch
Location : Lakeside, Pokhara, Kaski
P.O. Box: 442, Pokhara
Telephone : 977-061-532268,532269
Fax : 977-061-525203

Baglung Branch
Location : Mahendrapath, Baglung

Telephone : 977-068-522193-94
Fax : 977-068-522195

Butwal Branch
Location : Mainroad, Butwal
P.O. Box: 18, Butwal
Telephone : 977-071-541059
Fax : 977-01-541210

Bhalwari Branch
Location : Bhalwari, Rupandehi

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 P.O. Box: 18 Butwal
Telephone : 977-071-560357
Fax : 977-071-560957
Bhairahawa Branch
Location : Narayanpath, Bhairahawa
P.O. Box: 18, Butwal
Telephone : 977-071-524041
Fax : 977-071-524141

Ghorahi Branch
Location : Ganesh Hall Road, Ghorahi, Dang

Telephone : 977-082-561685-86
Fax : 977-071-561687

Tulsipur Branch
Location : Sitalpur road, Tulsipur, Dang

Telephone : 977-082-522673-74
Fax : 977-071-522672

Nepalgunj Branch
Location : Dhomboji, Nepalgunj, Banke
P.O. Box: 22, Nepalgunj
Telephone : 977-081-524221
Fax : 977-081-524222

Dhangadhi Branch
Location : Mainroad, Dhangadhi -4, Kailali

Telephone : 977-091-526683-85
Fax : 977-071-526682

Mahendranagar Branch

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Location : Third Lane, Mahendranagar -4, Kanchanpur
P.O. Box: 16, Kanchanpur
Telephone : 977-099-525450, 525431
Fax : 977-099-525601

Appendix -1
The comparative financial status of fiscal year 2021/2022 and 2022/2023 are given
below:
S.No. Particular 2020/2021 2022/2023 Increase or De-
crease(%)
1. Net Worth 2437.2 3130 28.43
2. Total assets 43867.39 37137.59 15.34
3. Deposits 31915.0 37348 17.02
4. Loan & advances 21365.05 27589.93 21.13
5. Investment 9966.56 10874.80 9.11
6. Net investment 9939.77 10826.37 8.91
7. Other income 94.35 144.16 52.79
8. Operating & staff ex- 220.75 265.15 20.11
penses
9. Operating profit 1179.9 1626.53 25.78
10 Net profit 746.5 1031.05 38.11
(Sources: Annual Report 2019/2023)
Appendix – II
5 year’s financial summary
Profit and loss a/c
Paritcular 2020/2021 2021/2022 2022/2023
Income:
Interest income 1587.8 1978.69 2798.48
Interest expenses 555.7 758.43 1153.28
Net interest income 1032.0 1220.3 1645.20
Commisions & Discount 150.60 159.31 179.63

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Foreign exchange 209.9 196.5 251.91
Other income 87.54 97.44 144.16
Total operating income 1480.15 1670.42
Expenses
Staff expenses 240..2 262.90 339.89
Other operating expenses 188.2 220.75 265.15
Exchange Loss - - -
Operating profit before provision for pos- 1051.81 1186.76 1615.92
sible Losses
Provision for Possible Losses 14.20 64.05 45.72
Operating profit 1037.60 1122.71 1570.20
Non operating income and expenses 5.28 24.08 21.90
Provision for losses write back 10.92 11.10 10.61
Provision for regular activities 1053.81 1157.89 1583.01
Income/ expenses from extra ordinary activi- 40.73 39.90 43.52
ties
Profit from all activities 1094.55 1197.88 1625.53
Provision for staff bonus 99.5 108.899 147.866
Provision for Income tax 321.08 342.52 447.61
This year (including deferred tax) 314.52 342.46 470.70
Up to previous year 6.55 0.5 9.18
Net profit after tax 674.0 746.46 1031.05
(Sources: Annual Report 2019/2023
Appendix – III
5 year’s financial summary
Balance sheet
Particulars 2020/2021 2021/2022 2022/2023
Assets
Cash and bank balance 270.40 511.42 674.39
Placement 1692.57 4112.09 8548.6
Investment 8945.31 9939.77 5528.80
Loan advance & bills purchase 15545.77 21365.05 27589.93

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Fixed assets 286.89 598.03 660.98
Other assets 512.05 606.39 864.69
Total assets 27253.39 37132.75 43867.39
Liabilities
Share Capital 491.65 689.21 965.74
Reserve and Surplus 1563.95 1747.98 2164.49
Debenture and bonds - 240.00 300.00
Borrowings 882.57 1360.00 1681.30
Deposit liabilities 23342.28 31915.04 37348.25
Other liabilities 378.55 465.94 502.89
Bills Payable 83.51 238.42 463.13
Proposed and unclaimed dividend 509.41 437.37 361.32
Income and tax liabilities - 38.77 80.23
Total Liabilities 27253.39 37132.75 43867.39
(Sources: Annual Report 2019/2023)

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