Saving Deposit Collection

Of
NMB Bank

A PROJECT WORK REPORT PORPOSAL

Submitted By:
Jyoti Kumari Mishra
Ramswaroop Ramsagar
Multiple Campus
Janakpur
Exam Roll No: 700140184
Campus Roll No: 516/076
TU Registration No: 7-2-14-116-2019

Submitted in partial fulfillment of the requirements for the degree of

Bachelor of Business Studies (BBS)

Faculty of Management
Tribhuvan University

Janakpur
Asadh 2081
 1. Introduction:
Saving account are opened for the purpose of encouraging the saving habit and are
intended primarily for the small savers, who want to save for meeting future needs.
Saving deposit accounts are for people who do not want to withdraw frequently or who
do not want to keep for fixed long period.
Saving accounts can be held by individuals and non profit institutions only. Saving
deposit accounts are not usually operated up on by the account holders unless they are in
real need. Saving deposits are interests bearing deposits. Generally interest is calculated
on yearly basis. Interest is calculated and created to the depositors saving account on
minimum monthly balance. In comparison to other interest bearing deposit low rate of
interest is provided on saving deposit. The customer may deposit any amount as and
when he feels necessary but the minimum amount to be held in account to operate fixed
by the bank. In NB minimum balance required in saving account is Rs. 5000.
In saving deposit without notice the amount cannot be withdraw. If the amount has to
withdraw then a customer has to give seven days notice in written. If it is not done then
the bank may reject or may charge extra amount. No interests are paid for the month in
which withdrawals are made over and above the limit.
Saving depositors do not have facilities like the current depositors have. Current
depositors can withdraw their amount without any notice but saving depositors can't
withdraw without written notice, and also saving depositors can't cash more than two or
three cheque in a week. It has to withdraw in a limit amount in a day and week as per rule of
concerned bank.
When the main aim of commercial banks are to collect deposits from various sources,
like other banks NB Bank also collect deposits from different sources. Saving deposit is one
of them. Saving deposit also plays an important role in total deposit collection of NMB
Bank.
NMB bank accepts the saving deposit of the depositors. The minimum each, balance
required to open saving account in NB Bank is Rs.2000. The bank pays 5.5% interest in
saving deposits. The bank also provide insurance scheme to the individual saving account
holder.
In case of NB Bank saving deposit plays an important role in total deposit collection, the
percentage of saving deposit increases in different fiscal year. NB Bank collects more and
more deposits from various sources. Saving deposit is one of them. NB bank is able to collect
Rs. 104.73 million just from saving deposit in its starting year 057/58. It is about 16.28% of
total deposit collection. It is increased to Rs. 166.20 million in the fiscal year 058/59 which is
about 18.01% of total deposit and increased by 58.69% in comparison to previous year. It
shows that in the two year of starting the bank start to progress because of perfect
management and customer oriented service.
Similarly in the fiscal year 059/60 the percentage of saving deposit is increased, but in
this year because of economic and political reason banks are not able to expand their
business. In this year saving deposit increased to Rs.209.92 million which is about 15.56% of
total deposit and increased by 26.30% comparing with previous year. In this year interest on
saving deposit reached to Rs. 10.73 million.
In the F.Y. 060/61 NMB Bank is able to collect Rs. 152.53 million just from saving
deposit and reached to Rs.362.45 million. This increase in saving deposit is about 15.33% of
total deposit and it is increased by 72.66% in comparison to the previous year. In the same
way interest on saving deposit also increased and reached to Rs.17.85 million. This figure
shows that the bank is able to collect more and more deposit from saving.
According to the change in if national and international financial and banking
business the bank provides modern facilities and good management. In this new millennium
to provide facilities the bank has set up 15 branches all over in Nepal which result the
progress of the bank.
In the F.Y. 072/73 total collection from saving deposit is increased to Rs.692.23
million which is about 17% of total deposit. This amount is increased by 91.1% in
comparison to previous year. Interest on saving deposit also increased by 83.75% and
increased to Rs. 32.79 million. In F.Y. 073/74 total collection from saving deposit is
increased to Rs. 113.43 million. This amount is 60.85% which is decreasing comparison to
previous year. Interest on saving is also fluctuation and it is 45.32% which is Rs.47.65
million. In the F.Y. 074/75 total collection from saving deposit is Rs. 1716.84 and Interest on
saving is 67.93 million which is 54.19% and 42.56%. Respectively in F.Y. 075/76 total
collection from saving deposit is Rs. 2086.89 and interest on it is 93.04 million which is
21.55% and 36.96%. It shows us the saving and interest on deposit in decline in F.Y.076/77.
Its main factor is violent in country & other's reason.
NMB bank is investing those collected amount in useful field and is able to earn more
return. By which bank makes profit can provide high-interest rate to the customer.

2. Objectives of the study:

In case of NB Bank saving deposit plays an important role in total deposit collection. That's
why study of saving deposit is important. Without deposits bank can not lend loan to the
public and can not create credit. Without this function bank will be meaningless because
primary function of the bank is the acceptance of the surplus of the deposited money to
suitable customer who wish to borrow the difference of interest rate between deposits and
lending is the main income of the bank, so the saving deposit is main branch of the bank. The
main motto of field work is to find out the problems etc. So the main objectives are as
follows:-
 To identify the trend of increasing or decreasing of saving deposit to compare with
previous fiscal years.
 To find out the interest rate structure comparison to increasing or decreasing saving
deposit.
 To know how the bank uses such funds and how it creates credit to make more than
more profit.
 To find out how the NB Bank is facing challenge and competition in this growing
banking business.

3. Significance of the study:

We know that the research study is requirement of BBS programs to make report. We can
find many importance of research study. They are given below: -
i. To know the condition of banks interest bearing deposits and non-interest
bearing deposits.
ii. To double the pace of economic growth through the sound Banking
Management system.
iii. To find out the problems of the bank and give recommendation to the bank
etc.
4. Theoretical Framework:
A bank is a mediator or a financial institution, which deals in money, receiving it on
deposit from customers, honoring customer's drawings against such deposit on demand,
collecting cheques for costomer and lending or investing surplus deposits until they are
required for repayment. As we know that there are various functions of bank, but one of
the important functions of bank is to accept deposit. It is the primary function of any
bank. But since deposit creates the liability for banks and on the basis of liability of the
bank, deposits are classified into two types:-
 a) Interest Bearing Deposit

b) Non-Interest Bearing Deposit

Out of them interest bearing deposit is in use. It refers such deposit in which bank is
required to pay interest to their depositors. It creates liability of interest, therefore it is
known as interest bearing deposit and call deposit exists. Bank provides fixed percentage
rate of interest to account holders for depositing money in such accounts.

This report is only centralized to interest bearing deposit of Kumari bank, possesses great
role in capital structure of bank, it seems to provide more percentage rate of interest in
comparison of non-interest deposit.

5. Methodology:
There are several ways of data collection and the generally fall into primary and
secondary. According to Seltiz, Whightsman and cook as quoted by Richie the purpose of
the various data collection techniques is to produce trustworthy evidence that is relevant
to the research question being asked.
5.1 Research Design:
Writing of thesis is very essential for degree of B.B.S. for this thesis, we the researcher
had to collect different types of information. In this report, I am using five topics, i.e.,
Introduction, Literature Review, Research Methodology, Data Presentation & Analysis
and Summary, Conclusion & Recommendation.

In the beginning, introduction of bank is given with its background. Then the focus of
study, statement of the problem, objectives of the study, importance & Limitation of
study are given.

In literature review, theories of interest & deposit are given with interest bearing
deposit and non-interest bearing deposit's concept. Here, we can find types of bank and
function of commercial bank.

In Research Methodology, we can find research design, research process, data

collection method, tools used & limitation of the methodology. There is use of various
 statistical tools & techniques and graph such as pie chart, bar-diagram, tables etc.

In this we can also find various types of information of NB Bank ltd. with the detail
analysis of types of account holders.

In data presentation & Analysis, we have detail of data, statistical tool and graphs
with their analysis. And at last summary is given with suggestion & recommendation.
6.2 Data analysis tools:
The methods, which are used to analyze a data are known as tools and techniques. To
analyze the performance of NMB Bank ltd, the data collected from different sources are
presented in tabular form after making necessary adjustments. For the analysis of data
following different two tools are used. They are: -
a) Financial Tools
b) Statistical Tools
6.3 Sources of Data:

1) Primary data collection: Primary data is the data which is generally collected by the
investigator or researcher directly. So primary data collecting includes observations, survey
and questionnaires for fieldwork question related to the subject has been asked to the staff of
NB Bank.
2) Secondary data collection: Secondary data is the data, which is already collected and used
by someone; Secondary data is those data, which is not gathered for 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 is easy to collect, time consumption
and low in cost. To the requirement of the field work the secondary data is collected from
annual report.
 Bibliography

Research Methodology Methods And Techniques - C.R.Kothari

An introduction To Money and Banking - Colin D. Cambell and Rosemary G.

Cambell.

Money Banking and International Trade - M.C. Vaish.

Principle of Banking - K.N. Gary.

Eighth Annual General Meeting Report (2058/059) - N.B. Bank, Head Office.