A SAVING DEPOSIT MOBILIZATION OF CASE STUDYOF

EVEREST BANK LIMITED NEPAL

A Research Proposal

Submitted By:
Yangi Sherpa Lama
ST Lawrence College
T.U. Regd. No.: 7-2-788-153-2020
Group: Finance

Submitted To
Faculty of Management
Tribhuvan University
Kathmandu, Nepal

In Partial fulfillment of the requirements for the degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Chuchepati,Kathmandu
May,2025
 TABLE OF CONTENTS

Title Page i

Table of Contents ii

1.1 Background of the Study ………………………………………………...1

1.2 Profile of the organization …………………………………………..…..2

1.3 Statement of Problems ………………………………………………...…3

1.4 Objectives of the Study ………………………………………………..….3

1.5 Rational of the study……….…………………………...………...………4

1.6 Review of literature ……………………………………………………….5

1.7 Research Methodology ……………………………………………………7

1.8 Limitation of the study ……………………………………………………8

Reference

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1.1 Background of the study

Bank accepts deposit from them who can save but can’t utilize profitably. People know
that by depositing in the bank they could avail with many more facilities. By saving in
the bank people have the opportunity of earning interest, useful contingencies; avoid risk
such as theft lost accidents, the deposit of commercial banks is increasing because people
know its importance. So banks accept money on current saving and fixed deposit
accounts. Deposits are the main source of capital for the lending activities of the banks.
Banks utilize efficiencies to attract more deposits to increase credit activities. Deposits
are withdrawing able according to the terms of contract with the depositors to attract the
people. The bank maintains different types of deposit accounts (Ali & Naaem, 2016).

Account are generally opened for the savings of customers (individuals, nonprofit
organization, charitable trusts, clubs, associations and cooperative) who want to save for
meeting future needs, Savings accounts is suitable for the customers who do not want to
withdraw frequently and who do not want to keep certain amount for fixed long period
(Regmi, 2016).

Deposit mobilization is a fundamental activity of commercial banks, serving as the

foundation for credit creation and overall financial intermediation. Banks collect deposits
from the public and channel these funds into productive sectors through loans and
investments. In the context of Nepal’s banking sector, deposit mobilization is a major
determinant of a bank’s liquidity, profitability, and capacity to lend (Nepal Rastra Bank,
2021).The effectiveness of deposit mobilization depends on various internal and external
factors including interest rates, customer service quality, branch accessibility, and the
overall trust in the banking system. For Everest Bank, consistent deposit growth is
crucial for maintaining its lending portfolio and fulfilling regulatory liquidity
requirements set by Nepal Rastra Bank (Shrestha, 2020). Therefore, understanding how
EBL mobilizes deposits is essential for evaluating its operational efficiency and financial
sustainability.Moreover, in the competitive landscape of Nepal’s banking sector,
especially post-liberalization, banks face pressure to innovate and differentiate. Everest
Bank's strategies for deposit mobilization, such as targeting rural areas, providing
interest-bearing accounts, and introducing digital wallets, reflect broader trends in the
industry and are vital to assess in order to recommend future improvements (Adhikari,
2019).

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1.2 Profile of Everest Bank Limited

Catering to more than 14 lacs customers, Everest Bank Limited (EBL) is a name you can
depend on for professionalized & efficient banking services. Founded in 1994, the Bank
has been one of the leading banks of the country and has been catering its services to
various segments of the society. With clients from all walks of life, the Bank has helped
the nation to develop corporately, agriculturally & industrially.

The bank provides a wide spectrum of services covering retail, SME, and corporate
banking. These include savings and current accounts, fixed deposits, home and auto
loans, working capital financing, trade credit, and remittance services. Everest Bank has
played a crucial role in facilitating remittances for Nepalese working abroad, particularly
in the Gulf countries and Malaysia. The bank has established itself as a key channel for
inward remittance, thus contributing significantly to national foreign currency reserves.
As of 2025, EBL operates over 131 full-fledged branches, 4 extension counters, 167
ATMs, and 32 revenue collection counters across all provinces of Nepal, including in
remote and rural areas, providing greater accessibility and financial inclusion to
underserved populations (Nepal Rastra Bank, 2024).

One of the defining features of Everest Bank’s growth has been its proactive adoption of
digital and branchless banking technologies. The bank introduced the “Any Branch
Banking System” (ABBS) early in its operation, allowing customers to perform
transactions from any EBL branch nationwide. It has also implemented mobile vehicle
banking services in remote areas, where physical branches are not feasible, and has
promoted branchless banking using biometric authentication, in collaboration with local
agents. These services have empowered many unbanked and underbanked communities
to gain access to formal financial services, aligning with Nepal’s national financial
inclusion goals (Adhikari, 2022).

Everest Bank has also received widespread recognition and awards for its operational
excellence and prudent financial management. It was awarded “Bank of the Year –
Nepal” in 2006 by The Banker, a UK-based financial publication under the Financial
Times Group. Additionally, it received the “Best Managed Commercial Bank” award
from NewBiz in 2013, highlighting its governance, profitability, customer service, and
risk management practices. The bank has consistently maintained a high credit rating,

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strong asset quality, and stable liquidity position, which are important indicators of its
resilience and efficient banking operations in a competitive and often volatile financial
environment (The Banker, 2006; NewBiz, 2013).

1.3 Statement of Problems

Despite Everest Bank Limited’s strong market presence and technological
advancements, the pace of deposit mobilization has not always aligned with its credit
expansion and operational targets. Factors such as rising competition, changing customer
preferences, limited rural outreach, and fluctuating interest rates have posed challenges
in attracting and retaining deposits. Understanding the effectiveness of the bank's deposit
mobilization strategies and identifying obstacles in this area is essential for ensuring
sustainable growth and financial stability.

Research Questions

i. What are the major factors influencing deposit mobilization at Everest Bank
Limited?

ii. How effective are the current strategies and services used by EBL in attracting new
depositors?

iii. What challenges does Everest Bank face in mobilizing deposits, especially in rural
and semi-urban areas?

1.4 Objective of the Study

The objective of this study is to examine the effectiveness of deposit mobilization
strategies adopted by Everest Bank Limited. It aims to identify the key factors that
influence deposit growth, assess the bank’s performance in attracting and retaining
deposits, and explore areas where improvements can be made to enhance financial
inclusion and customer engagement.The study is to fulfill the partial requirement of T.U
to complete BBS project. The objective of this project is to analyze of deposits of EBL.
The study intends to present a brief and clear picture of deposit and its utilization. The
objective of the study includes.

i. To analyze the deposit of position of Everest Bank Limited.

ii. To analysis the loan and advanced

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iii. To identify the profitability of the bank.

1.5 Rational of the Study

Deposit mobilization is the backbone of a bank’s lending capacity and overall financial
health. In the case of Everest Bank Limited, understanding how effectively it attracts and
manages deposits is crucial to evaluating its growth strategy and long-term sustainability.
This study is important because it provides insights into the strengths and gaps in the
bank’s deposit mobilization efforts, especially in a competitive and evolving banking
environment. The findings can help improve policy decisions, strengthen customer
outreach, and support more efficient financial planning.

i. Examining deposit mobilization helps assess the bank’s liquidity and lending
capacity.

ii. Identifying effective strategies can improve deposit growth and customer retention.

iii. Understanding the bank's strengths aids in maintaining a competitive advantage.

iv. Provides valuable data on customer preferences and needs regarding deposits.

v. Highlights the bank's role in reaching underserved populations and supporting

financial inclusion.

1.6 Review of Literature

Literature review can be defined as the process of reviewing the studies or other relevant
research of work done in the subject matter so that all the past studies and conclusion and
the deficiencies may be known. Effective research is based upon the pas knowledge and
a survey of past literature. A review of previous related research includes review of
various research /scholar journals and articles and dissertation and other related studies.
It can be illustrated in the following manner.

Khatiwoda (2014),in his report Saving deposit of Sanima Bank limited. pointed out that
Interest rate regulation has proved to be a significant disincentive for savings
mobilization. A policy of adequate real interest rates on deposits is inconsistent with
policies of low-interest-rate lending. If interest rate ceilings exist for loans and deposits,
the financial spread to cover costs shrinks and thus often makes savings mobilization too
costly. Even if official deposit interest rate ceilings do not exist, MFIs must fix them at
very low levels to cover their costs when loan interest rate ceilings exist. This often

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results in negative real interest, which represent strong disincentives for depositors to
save in financial institutions. Low-interest refinancing opportunities such as do not
quasi-equity and soft loans or cheap rediscount facilities at the central bank also make
deposit-taking a costly, and thus unattractive, alternative. Further to this, minimum
reserve requirements may significantly contribute to the cost of savings mobilization by
freezing a portion of the capital-earning capacity at no or very low interest.

Bhandari (2019) in his report Deposit analysis of Nabil Bank limited, examined the vital
part and basic current issue in Ethiopia regarding deposit mobilization by taking CBE as
evidence, the main task of any commercial bank is to mobilize deposits from the people
and then supply to those who are in need of the fund in the form of loan to lubricate
investment and trade which in turn promote growth to an economy. This study
principally aims to investigate the determinants of deposit mobilization in the case of
Commercial Bank of Ethiopia. Explanatory type of research design, descriptive statistics,
correlation matrix and multiple regression technique are used based on time series
secondary data collected from Commercial Bank of Ethiopia.

Khadka (2019),in his theses Investment Pattern Analysis of Commercial Banks of Nepal
examined that saving deposit where the researcher found that there was positive
relationship with the different variables with saving account. The researcher used total
deposit, loan and advance, knowing about the different types of saving account such as
current and fixed deposit.

Adhikari (2019) focused on the role of digital banking in deposit mobilization. The
research indicated that the introduction of mobile banking, internet banking, and
branchless banking has significantly improved the reach of banks, especially in rural
areas. This finding supports Everest Bank’s strategy of implementing digital tools such
as mobile vehicle banking and biometric systems to serve underserved regions. These
innovations have proven to enhance customer convenience and trust, ultimately boosting
deposit volumes.

Bhatta (2021) examined the impact of interest rate policies on deposit growth in
Nepalese commercial banks. The study concluded that competitive interest rates
significantly influence customers' decisions to open or maintain deposit accounts. This

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suggests that Everest Bank, like other financial institutions, must carefully balance
interest rates to remain competitive while ensuring financial sustainability.

Dahal (2020) focused on the challenges faced by banks in mobilizing deposits in rural
areas. The study revealed that limited access to banking services and lack of financial
literacy were major barriers in rural deposit mobilization. This highlights a potential area
of concern for Everest Bank, which aims to expand its operations in rural Nepal. The
findings emphasize the need for enhanced outreach programs and educational campaigns
to overcome these barriers.

Nepal Rastra Bank (2024) highlighted the role of regulatory policies in shaping deposit
mobilization strategies in Nepal. It noted that policies encouraging financial inclusion
and providing incentives for rural banking have been crucial for deposit growth. This
aligns with Everest Bank’s ongoing efforts to comply with regulatory standards while
promoting financial inclusion through services like microloans and savings programs for
low-income households.

1.7 Research Methods

Method is the systematic process that adopted by the researcher in studying problems
with certain objective view. The objective of this study is to evaluate &asses the saving
deposit of EBL. It is refers to the various sequential steps to be adopted by a researcher
in studying problems taking into consideration the objective of the institutions. All the
data are collected through using the annual report as well as articles of the study.

1.7.1 Research Design

The study attempts to analyze the source of deposit and its uses by commercial banks
particularly of EBL. The research designed follows the deposit structure and its
mobilization in various sectors. A research design is the plan, structure and strategy of
investigations conceived so as to obtain answer to research question and to control
variances. It is the overall operational pattern of framework for the project that stipulates
what information if to be collected, form which sources and by what procedures. For this
study, this research is designed in mostly descriptive and analytical towards historical
last ten years data.

1.7.2 Population and Sample

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The population for this study consists of the 20 commercial banks operating in Nepal,
which include both large and mid-sized financial institutions. These banks represent a
cross-section of the Nepalese banking industry, providing a broad overview of deposit
mobilization strategies across various types of banking institutions. The study aims to
analyze deposit mobilization practices, challenges, and trends within these commercial
banks to better understand industry-wide practices.

1.7.3 Nature and source of data

This study has been based on the secondary data. However, the main sources of data are
obtained from the bank’s annual report, economic report of NRB, various newspapers
and magazines, articles about, reports of senior from Excel Business College as well as
from the T.U. and Everest Bank (- www.everestbankltd.com) etc.. The data are based on
the annual report of Everest Bank Ltd.

1.7.4 Data Collection Method

The data for this study will be collected using a combination of both primary and
secondary sources to ensure a comprehensive understanding of the deposit mobilization
strategies used by Everest Bank Limited and other commercial banks.Secondary data
will be collected from publicly available sources such as bank annual reports, financial
statements, and publications from Nepal Rastra Bank. These sources will offer
quantitative information regarding deposit growth, interest rates, and other financial
indicators that impact deposit mobilization. Additionally, relevant academic papers,
industry reports, and research articles will be reviewed to support the analysis and
provide context for the findings.

1.7.5 Tools and techniques for analysis

For the qualitative analysis, thematic analysis will be employed to interpret the data
gathered from interviews and customer surveys. This technique involves identifying
recurring patterns, themes, and insights within the responses to better understand the
underlying factors influencing deposit mobilization. Interviews with key stakeholders
such as bank managers, staff, and customers will be transcribed and analyzed to extract
themes related to customer satisfaction, banking preferences, service quality, and
perceptions of deposit products. These themes will help to identify the challenges and
opportunities faced by Everest Bank in attracting and retaining deposits.

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Additionally, content analysis may be used to evaluate and categorize written documents,
such as annual reports or marketing materials, to understand how Everest Bank
communicates its deposit services to customers. This will provide deeper insights into
the bank's strategies and customer engagement methods.

1.8 Limitation of the Study

The study does not present detailed analysis of deposit in EBL due to lack of time
relevant data and resources. This study is limited to the information that was available
from the bank and other sources.

i. Annual reports of EBL will be taken

ii. This study only covers the data of five years only.

iii. The study is based only in secondary data so it may contain reporting errors.

iv. This includes all sources used in the study, using APA format for citation.

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REFERENCE

Adhikari, A. (2019). Banking strategies in Nepal: A competitive analysis of Everest Bank

Limited. Kathmandu University.

Adhikari, A. (2022). The impact of digital banking in Nepal: Everest Bank's

transformation. Nepal Journal of Banking.

Ali, M., & Naaem, A. (2016). Role of commercial banks in financial intermediation and
deposit mobilization. Journal of Banking & Finance, 12(1), 45-60.

Everest Bank Limited. (2023). Annual report: Delivering inclusive banking services.
Everest Bank Limited.

Mamun, A., & Nandi, R. (2019). Financial intermediation and banking operations in
Nepal. Financial Studies Journal, 24(2), 99-115.

Nepal Rastra Bank. (2021). Annual review of the banking sector in Nepal. Nepal Rastra
Bank.

Rao, M., & Srinivas, P. (2016). The origin and evolution of banking: A historical
perspective. Banking and Finance, 14(3), 25-35.

Regmi, S. (2016). Savings and deposit mobilization: A case study of Nepalese banks.
Journal of Nepalese Banking Studies, 11(2), 102-118.