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DEPOSIT ANALYSIS OF KUMARI BANK LIMITED
A Project Work Report Proposal
By:
Krisita Devkota
TU Regd. No: 7-2-282-122-2018
St. Xavier's College
Submitted to:
The Faculty of Management
Tribhuwan University
Kathmandu
In Partial Fulfillment of the Requirements for the Degree of
BACHELORS OF BUSINESS STUDIES (BBS)
Kathmandu, Nepal
December, 2022
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Background of the Study
Deposit is 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
withdrawn able according to the terms of contract with the depositors to attract the
people. The bank maintains different types of deposit accounts. Commercial bank is
deposit mental states of the finances. Generally the collection amounts from current,
saving, and fixed account of financial institution is called deposit. The deposits are
divided on the basis of security, availability, and ownership. Since deposit is Blood of
commercial banks, saving deposit play vital role in today’s banking world, (Singh,
2015).
Deposit is one of the main features of commercial bank. A commercial bank receives
deposit in different accounts namely current, fixed and saving. These are the direct
deposits. When a bank receives cash it grants a right to the depositors to withdraw it
whenever they like Nepal Banijya Bank Act has regulated all the deposit 2031. The act
specifies “Deposit” means amount deposited in current, fixed and saving deposit
account of bank or financial institutions. Among many functions of a commercial bank
the main function is deposit function, which all the commercial banks perform, in
simple terms; deposit is a function of collecting surplus from savers. Bank accepts
deposit from those that can save but can’t utilize profitably. People know that by
depositing in the bank they could avail with many more facilities. By saving in the
bank people have the opportunity of earning interest, useful contingencies; avoid risk
such as theft lost accidents, the deposit of commercial banks is increasing because
people know its importance, (Bhandari, 2015).
Profile of the Organization
Kumari Bank Limited, came into existence as the fifteenth commercial banks of Nepal,
starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an
objective of providing competitive modern banking services in the Nepalese financial
market. The Bank has paid up capital of NPR 14.87 billion. Kumari Bank Limited
provides a wide-range of modern banking services through 275 points of representation
located in various urban, semi-urban and rural parts of the country, with 199 branches,
34 extension counters and 62 Branchless Banking Units.
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The Bank has pioneered in providing modern banking services like Internet Banking
and Mobile Banking. With the implementation of Core Banking Software, FINACLE
(version 10), the Bank is confident that it will provide a robust, ultra-modern banking
platform for all customers throughout the country.
The Bank has been offering both Domestic and International Visa Debit and Credit
Card, accessible in all VISA linked ATMs in Nepal and India. It serves through 195
ATMs and - POS terminals across the country. Along with this, the Bank offers latest
digital banking services such as Mobile, Internet, and Viber Banking and QR payments.
The Bank is recognized as an innovative and fast-growing institution that always
strives towards customer satisfaction. It has transparent business practices, professional
management, corporate governance, and Total Quality Management as the
organizational mission.
Statement of the Problem
Bank accepts deposit from those that can save but can’t utilize profitably. People know
that by depositing in the bank they could avail with many more facilities. By saving in
the bank people have the opportunity of earning interest, useful contingencies; avoid
risk such as theft lost accidents, the deposit of banks is increasing because people know
its importance. The study focuses on the following questions.
How is the deposit trend of the bank?
How is the contribution of different nature of deposit to total deposit?
Whether the deposits are properly used or not?
Objective of the Study
Behind every step of works we should determine or accomplish the goal. Without
determine of goal we could not get success in our job/work. Achievement of goal is our
objective of any work or study or job. This fieldwork over to individual’s students also
consists of certain, which are mentioned bellow:
To find out the deposit trend of the bank.
To examine the contribution of different nature of deposit to total deposit.
To analyze whether the deposits are properly used or not.
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Rationale of the Study
The study mainly will focuses on the total deposit of Kumari Bank Limited.
The success and prosperity of the every financial institution mainly depends
upon the good d eposit and income from the good investment. Hence, the
profitability, sustainability and good quality of assets of the bank reflects the
health status of the bank. This study would provide clear picture of the deposit
of the Kumari Bank Limited and its financial position, changes in Deposit
Management policy during past. It will prove to be an important value for the
entire individual interested in banking sector. This study will work as a
valuable asset for future reference. It helps to know the deposit procedures &
their process of investment of the bank. It helps to know the framework
regarding deposit management.
Literature Review
Deposit is one of the main features of bank. A bank receives deposit in different
accounts namely current, fixed and saving. These are the direct deposits. When a bank
receives cash it grants a right to the depositors to withdraw it whenever they like Nepal
Banijya Bank Act has regulated all the deposit 2031. The act specifies “Deposit” means
amount deposited in current, fixed and saving deposit account of bank or financial
institutions.
Panta (2013) stated that changing interest rates in deposits changes the saving held by
the Nepalese individuals. High interest rate in deposit helped to raise the saving
especially from rural areas. Lower rated loan showed huge increment in sale and
purchase of land, building and vehicles in the recent years. In his book, interest rate
policy rate policy of Nepal has expressed the following view points about the rate
interest.
Bhandari (2015) conducted a study on the deposit structure of commercial banks in
Nepal. The objective of this study was to show the relation of interest rate with saving
and fixed deposits; with loans and advances; and with net interest earning (i.e. interest
received on loan minus interest paid on deposit). The study concluded that the time
deposit are positively and significantly correlated with interest rates. There is
significant correlation between the saving deposit and the rate of interest fixed deposit
is more sensitive to the interest rate revision deposit and the interest rate particularly
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from 1977 is most significant. But the relation between the interest rates and the loan
and advances is less significant. Among all the sectors, the private sector seems most
sensitive to interest rate change. Most of the loans too are correlated positively if
absolute cumulative figures are taken.
Research Methodology
A research method is a systematic plan for conducting research. Sociologists draw on a
variety of both qualitative and quantitative research methods, including experiments,
survey research, participant observation, and secondary data. As it is indicated in the
title, this chapter includes the research methodology of the dissertation.
Research Design
Research design indicates a plan action to be carried out in connection with proposed
research work. The research design will be less descriptive but more prescriptive in this
study because the secondary data have been developed for analysis. Various processes
like editing, tabulating, calculating and result will have been interpreted in the form of
ratios, percentages and figures for clear view.
Population and Sample
At present 27 Commercial banks are operating in Nepal. All the commercial banks are
considered as the population. It is not possible the study all the data related with all
banks because of the limited time period. In this scenario, one commercial bank,
Kumari Bank Limited has been selected as sample for the present study. Similarly,
financial statements of banks for five fiscal years have been taken as samples for the
same purpose.
Types of Data
Mainly the study has been conducted on the basis of secondary data with negligible
primary data collected. The data related to the deposit analysis of Kumari Bank Limited
will be obtained with the help of the bank's balance sheets. The supplement data and
information have been acquired from journals published from various institutions like
NRB, Nepal Chamber of Commerce etc.
Data Collecting Procedures
Those important data which are very necessary to achieve the objectives of my study
that will be collected from secondary sources. Especially the annual report and website
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of the concerned has been taken as main source of data collection for purpose of study.
The annual reports of the concerned banks have obtained from their head office and
their websites. NRB publication, such as Banking and Financial Statistics Economic
Reports, Annual Reports of NRB etc, will have been collected from the personal visit
of concerned department.
Data Analysis Technique
For the purpose of the study all collected data are arranged, tabulated under various
heads and those after disunities and statistical analysis have been carried out to
enlighten the study. Mainly Financial tools are applied for the purpose of this study,
which are as follows:
Saving Deposit
Saving Deposit to Total Deposit =
Total Deposit
Cash∧Balance
Cash and Balance to Total Deposit Ratio =
Total Deposit
¿ Deposit
Fixed Deposit to Total Deposit Ratio =
Total Deposit
Current Deposit
Current Deposit to Total Deposit Ratio =
Total Deposit
Loan∧ Advance
Loan and Advances to Total deposit Ratio =
Total Deposit
Limitation of the Study
Most of the data used in this report are secondary data. Due to lack of time and many
hindrances I was able to collect only limited data. As far as the primary data are
concerned, the bank has their own limitations so they could not provide me with their
internal and exact data. Further this report consists of some provisional data so exact
conclusions could not be drawn. Nevertheless, effort has been done to present the latest
and most reliable data. Numerous limitations have been faced while preparing this
fieldwork report. Some of them which can be pointed out as:
This study focus on only deposit of Kumari Bank Limited.
It cannot be compared with the ratios of other banks.
This study deals only Kumari Bank Limited is taken.
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This study covers last five fiscal years data from 2074/75 to 2078/79 B.S.
REFERENCES
Adhikari, D. R and Pandey D.L., (2021) Business Research Methods. Kathmandu:
Asmita Publication
Bhandari, D. R. (2015). Banking and Insurance. Kathmandu: Aayush Publication
Joshi, S. (2005). Banking and Insurance Management. Kathmandu: Taleju Prakashan
Bhandari (2015) conducted a study on the deposit structure of commercial banks in
Nepal. Kathmandu: An unpublished thesis submitted to FOM T.U.
Pant, P. R. (2013). Business Environment in Nepal. Kathmandu: Buddha Academic
Publishers and Distributors Pvt. Ltd.
Singh, H.B. (2015). Banking and Insurance. Kathmandu: Asia Publications Ltd.
Websites
https://www.kumaribank.com/welcome-to-kumari-bank
www.nrb.org.np
www.google.com
