DEPOSIT COLLECTION &MOBILIZATION STUDY OF

SANAKISAN BIKAS LAGHUBITTA BITTIYASASTHA LTD.

A PROJECT REPORT

Submitted By:
Aashutosh Neupane
Regd No:7-2-282-296-2020
Exam Roll No:702820011

St. Xavier College

Maitighar, Kathmandu

Submitted To:
The Faculty of Management
Tribhuvan University
Kathmandu, Nepal

In the partial fulfillment of the requirement of the degree of

Bachelor of Business studies (BBS)
Kathmandu, Nepal
June, 2025

i
 DECLARATION

I hereby declare that the project work entitled “Deposit Collection & Mobilization
Study of Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd.” submitted to the
Faculty of Management, Tribhuvan University, Kathmandu, is my original work
carried out under the supervision of Mr Labaram Ghimire, faculty member at
St.Xavier College, MaitiGhar, Kathmandu.

This project work is submitted in partial fulfillment of the requirements for the award
of the degree of Bachelor of Business Studies (BBS). I further confirm that this
report has not been submitted to any other university or institution for the award of
any degree or diploma.

…………………….
Aashutosh Neupane
June,2025

ii
 SUPERVISOR’S RECOMMENDATION

The project work report entitled “Deposit Collection & Mobilization Study of Sana
Kisan Bikas Laghubitta Bittiya Sanstha Ltd.”, submitted by Ashutosh Neupane of
St.Xavier’s College, Kathmandu, has been prepared under my supervision in
accordance with the prescribed procedures and format set by the Faculty of
Management, Tribhuvan University. This report is submitted as partial fulfillment
of the requirements for the degree of Bachelor of Business Studies (BBS).

I, therefore, recommend the project work report for evaluation.

…………………………….
Mr. Labaram Ghimire
18th June,2025

iii
 ENDORSEMENT

We hereby endorse the project work report entitled “Deposit Collection &
Mobilization Study of Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd.”,
submitted by Ashutosh Neupane of St.Xavier’s College, Kathmandu, in partial
fulfillment of the requirements for the degree of Bachelor of Business Studies
(BBS), for external evaluation.

…………………………………………. ……………………………..

MrABCDEF Prof. ABCDEF

Management Research Committee Campus Chief,
June, 2025 June, 2025

iv
 ACKNOWLEDGEMENT

This project work report entitled “Deposit Collection & Mobilization Study of Sana
Kisan Bikas Laghubitta Bittiya Sanstha Ltd.” has been prepared as a partial
fulfillment of the requirements for the Bachelor of Business Studies (BBS) degree
under the supervision of Mr. Labaram Ghimire, St.Xavier College, Kathmandu.

First and foremost, I would like to express my sincere gratitude to Tribhuvan

University for providing me with the opportunity to undertake this project. This
experience has greatly enhanced my knowledge on the subject matter and developed
my research skills and understanding of related methodologies.

I would like to extend my heartfelt appreciation to my supervisor, Mr. Labaram

Ghimire for his continuous encouragement, valuable guidance, and constructive
feedback throughout the entire process of this study. His scholarly insights and
constant support were instrumental in the successful completion of this work.

I am equally grateful to all the respected faculty members of St. Xavier College, the
Head of Department Mr Maha Parsad Shrestha,Research Coordinator Miss Gita Devi
Bhandari and other staffs of Research Department, and the library team, whose direct
and indirect support and motivation made this report possible.

Lastly, I would like to express my deepest respect and love to my parents, and Mr
Salikram Baskota, and my brother Sakhsam Dhungel, for their constant
encouragement, emotional support, and unwavering belief in my abilities. I am also
thankful to my friends who supported me throughout this academic journey.

Despite my best efforts, I acknowledge that this report may still contain inadvertent
errors or omissions. I take full responsibility for any shortcomings or deficiencies in
this work

………...………….
Aashutosh Neupane
St.Xavier College

v
 TABLE OF CONTENTS

Title Page………………………………...………………………………………………………i

DECLARATION ii

SUPERVISOR’S RECOMMENDATION iii

ENDORSEMENT iv

ACKNOWLEDGEMENT v

TABLE OF CONTENTS vi

LIST OF TABLES vii

LIST OF FIGURES viii

ABBREVIATIONS ix

CHAPTER I : INTRODUCTION 1
1.1 Background of the Study 1

1.2. Profile of Sana Kisan Laghubitta Bittiya Sastha Limited 1

1.3 Statement of Problem 4

1.4 Objective of Study 5

1.5 Rationale of Study 6

1.6Review of Literature 7

1.7 Methodology 10

1.8 Limitations of Study 13

CHAPTER II : RESULTS AND ANALYSIS 14

2.1 Data Presentation 14

2.2 Analysis 23

2.3 Findings 23

CHAPTER III : SUMMARY AND CONCLUSION 24

3.1 Summary 24

3.2 Conclusions 25

References 26

Appendices 27

vi
 LIST OF TABLES

Table Title Page no

2.1Total Borrowing and Customer Deposit position 14
2.2Investment in different sectors and Growth in Investment 15
2.3Loans and advances and their collection 16
2.4 Total assets and increase in total assets 17
2.5 Interest expenses and percentage increase In interest expenses 18
2.6Interest Income and percentage increase in interest Income 19
2.7 Average interest income and expenses during Five-year period 20

vii
 LIST OF FIGURES

Figures Title Page no.

2.1 Total Borrowing and Customer Deposit position 14
2.2 Investment in different sectors and Growth in Investment 15
2.3 Loan and advances and their collection 16
2.4 Total assets and increase in total assets 18
2.5 Interest expenses and percentage increase in interest expenses 19
2.6 Interest Income and percentage increase in Interest Income 20
2.7 Average interest income and expenses during five-year period 21

viii
 ABBREVIATIONS

CA Chartered Accountant
CEO Chief Executive Officer
Fig. Figure
F/Y Fiscal year
NEPSE Nepal Stock Exchange
SEBON Securities Board of Nepal
SFACLs Small Farmers Agriculture Cooperative Ltd
Vol Volume
BFI Bank & Financial Institutions
NRB Nepal Rastra Bank
i.e. That is,
F.S Financial Statements

ix
 CHAPTER I
INTRODUCTION

1.1 Background of the Study

Deposit is one of the key elements of domestic capital formation, which contributes
significantly to increasing national output, income, and employment. It also plays a
vital role in addressing economic challenges such as inflation, balance of payments
deficits, and foreign debt burdens. Strong domestic capital formation is essential for
achieving economic self-sufficiency and long-term sustainability.

According to classical economists, capital accumulation is a fundamental driver of

capital formation. Profits generated by the business community represent a substantial
portion of national savings, and these savings are assumed to be reinvested into the
economy. Classical theory holds that capital formation is instrumental in determining
both the level and the growth rate of national income and overall economic
development (Bendix, 1915).

According to many economists, capital plays a central and strategic role in the process
of economic development, particularly in underdeveloped economies. A rapid
increase in capital investment is essential to achieve a growth rate in national output
that significantly exceeds the rate of population growth. Only through such a rate of
capital investment can living standards improve in developing countries.

However, in many developing nations, the rate of savings is relatively low. Existing
financial institutions are only partially successful in mobilizing these savings,
primarily because a large portion of the population earns incomes so low that nearly
all current earnings are spent on maintaining a subsistence level of consumption.
Investment, therefore, becomes the cornerstone of the national economy, and the
banking system serves as a crucial component of the investment infrastructure
(Mikkelson & Ruback, 1985).

Investment involves sacrificing current income for uncertain future gains. It is the
process of allocating present funds in the expectation of future benefits. For example,
when individuals deposit money in savings accounts at banks, those banks must then
invest the funds into productive assets such as new factories or equipment to stimulate

1
economic output. In addition, businesses may borrow from banks or issue stocks and
bonds to raise capital for expansion (Sharpe et al., 1998). Governments also issue
bonds to finance large-scale infrastructure projects such as roads, schools, and dams.
In all cases—whether individual, corporate, or governmental—investment entails
foregoing immediate consumption to gain potential future benefits, ultimately
contributing to a higher standard of living.

A robust financial sector is vital for the development of any country. This sector
comprises a wide range of institutions, including banks, cooperatives, insurance
companies, financial firms, stock exchanges, foreign exchange markets, and mutual
funds (Shanmugam, 1989). These institutions collect idle and scattered resources from
the general public and channel them into productive enterprises within the national
economy. Such investments help alleviate poverty, improve living standards, generate
employment, and promote overall societal and economic development. Consequently,
financial institutions—especially microfinance banks—have become key indicators of
a nation's level of economic development.

Banks function primarily by accepting public savings in the form of deposits and
channeling these funds into productive sectors (Fischer, 1989). They provide loans
against real and financial assets, acting as intermediaries between savers and
borrowers. In doing so, banks mobilize financial resources efficiently. Bank deposits
also form a major part of the money supply, and fluctuations in money growth are
closely linked with changes in prices of goods and services (Arado, 2004).
Development banks, in particular, play a crucial role in advancing sectors like
agriculture, manufacturing, services, construction, and energy, thereby supporting
national development.

Microfinance, however, is more than just banking for the poor. It is a development
strategy rooted in social impact and private-sector efficiency. It employs proven and
adaptive principles, practices, and technologies to serve underserved communities.
The success of microfinance institutions depends on their ability to cost-effectively
reach a large number of clients, maintain effective delivery systems, manage risks,
and remain financially viable. Profits generated are typically reinvested to ensure the
institution’s sustainability and ongoing service delivery.

2
The two long-term goals of microfinance are broad outreach and financial
sustainability. By providing financial services, microfinance empowers low-income
populations to increase and diversify their incomes, build human, social, and
economic assets, and improve their overall well-being. These benefits reflect the
multifaceted nature of poverty and the critical role of financial inclusion in
development.

1.2. Profile of Sana Kisan Laghubitta Bittiya Sastha Limited

Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd. (SKBBL) stands as a pioneering
wholesale microfinance institution in Nepal, dedicated to empowering rural and
marginalized communities through inclusive financial services. Established on July
6,2001, under the Companies Act 2053 (1997), and restructured under the Bank and
Financial Institution Act 2073, SKBBL has evolved into a key driver of rural
economic development. Headquartered in Babarmahal, Kathmandu, with operations
spanning 12 regional offices, SKBBL operates with a strong capital base, including an
authorized capital of NPR 5 billionand paid-up capital of NPR 3.33 billion, and is
publicly traded on the Nepal Stock Exchange (NEPSE) under the symbol SKBBL.
Following its landmark merger with RMDC Laghubitta Bittiya Sanstha Ltd. on July 9,
2023, SKBBL emerged as a more robust institution with an expanded mandate and
outreach.

With the mission that “no one should be left behind from access to finance,” SKBBL
primarily serves Small Farmer Agriculture Cooperatives (SFACLs), enabling them to
deliver microcredit and technical support directly to over 980,000 rural members, of
whom 79% are women. Its services extend across 546 municipalities in all 76 districts
of Nepal, positioning it as a true national institution. Beyond financial intermediation,
SKBBL actively promotes collective farming, enhances agricultural productivity,
supports rural enterprise development, and empowers youth through exposure to
advanced agricultural technologies—including international learning programs in
Israel. It also plays a critical role in building human capital, fostering social cohesion,
and encouraging community asset creation to ensure sustainable and inclusive growth.

3
Driven by its commitment to the Government of Nepal’s vision of “Prosperous
Nepal, Happy Nepali,” SKBBL continues to innovate in rural finance, in
collaboration with government agencies, development partners, domestic banks, and
its extensive cooperative network. Through a strategic blend of financial inclusion,
capacity building, and social transformation, SKBBL remains at the forefront of
Nepal’s journey toward equitable rural development and economic prosperity.

1.3 Statement of Problem

Despite SKBBL’s extensive national coverage, rural and geographically isolated

populations still face challenges in accessing inclusive financial services. The
effectiveness and efficiency of SFACLs (partner cooperatives) vary, leading to in
consistent financial service delivery across different regions. There is a lack of robust
digital infrastructure and technological adaptation, particularly among rural clients
and cooperatives. The impact of SKBBL’s services on rural livelihoods, especially
regarding women’s empowerment and youth engagement, is not comprehensively
documented. SKBBL lacks a standardized impact assessment and monitoring
framework to evaluate the long-term effectiveness of its interventions.

Research Questions

1. What barriers continue to restrict access to SKBBL’s financial services in

remote and marginalized areas of Nepal?
2. How do variations in the performance of SFACLs affect the overall
effectiveness of SKBBL’s wholesale lending model?
3. How have SKBBL’s financial and non-financial services impacted the socio-
economic status of women and youth in rural communities?

4
1.4 Objective of Study

 To identify and analyze the barriers restricting access to SKBBL’s financial

services in remote and marginalized rural areas of Nepal.
 To evaluate the operational performance of Small Farmer Agriculture
Cooperatives (SFACLs) and their impact on the effectiveness of SKBBL’s
wholesale microfinance model.
 To assess the socio-economic impact of SKBBL’s financial and technical
interventions on women’s empowerment and youth engagement in rural
communities.

1.5Rationale of Study
Banks and other financial institutions play a pivotal role in elevating the economic
standards necessary for a country’s development. By providing essential financial
services, these institutions facilitate sustainable economic growth and contribute to
overall financial stability. Incomplete or inequitable banking facilities can
significantly hamper economic progress, underscoring the critical role financial
institutions must play to ensure smooth and equitable development.

Among these, microfinance banks hold a unique position due to their targeted
approach in empowering marginalized groups, small entrepreneurs, and rural
communities. Through the provision of accessible financial services, microfinance
banks foster economic inclusion and stimulate grassroots-level growth, thereby
contributing to poverty reduction and socio-economic upliftment.

Research focused on microfinance institutions is vital for deepening our

understanding of their operational effectiveness and impact. This study specifically
examines the deposit mobilization and credit deployment positions of microfinance
banks, with an emphasis on Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd. The
analysis of these financial indicators is crucial for evaluating the institution’s financial
health, operational efficiency, and developmental impact.

The significance of this study is multi-dimensional:

5
 ● Firstly, it assesses how effectively the microfinance bank utilizes its collected
deposits. Efficient deposit utilization is a strong indicator of sound financial
management, reflecting the institution’s capacity to channel savings into
productive economic activities that drive development.

● Secondly, the study provides valuable insights for policymakers and

regulatory authorities. Accurate and comprehensive data on deposit and credit
management enable the formulation of informed financial policies and
regulatory frameworks aimed at strengthening the microfinance sector and
enhancing its contribution to the national economy.

● Thirdly, this research serves as a resource for academic professionals and

students in commerce, finance, and accounting disciplines. The findings offer
empirical evidence and analytical perspectives that can inform curriculum
development, future research, and practical strategies within the financial
sector.

● Lastly, the study is instrumental for the management of the microfinance

institution under review. By evaluating its performance in deposit mobilization
and credit deployment, the management can identify strengths, uncover
operational weaknesses, and adopt strategic measures to improve efficiency,
competitiveness, and sustainability.

In summary, this research contributes to the continuous improvement of microfinance

banks, reinforcing their role as critical agents in promoting economic development
and financial inclusion.

6
1.6Review of Literature

1.6.1 Conceptual Review

Microfinance institutions (MFIs) globally have evolved into comprehensive financial

intermediaries offering a diverse portfolio of services—including microcredit, savings
mobilization, insurance, and other tailored financial products—aimed at fostering
inclusive financial ecosystems for marginalized and low-income populations
(Armendáriz & Morduch, 2010; Ledgerwood, 2013). While microcredit originally
focused on extending small-scale loans to economically excluded individuals,
contemporary microfinance embraces a broader, multidimensional approach that
addresses diverse financial needs to promote sustainable livelihoods and alleviate
poverty (Morduch, 1999; Christen et al., 2011).

In Nepal, the institutionalization of microfinance as a formal sector phenomenon

emerged prominently during the 1990s, supplanting earlier constructs characterized
primarily as rural credit or cooperative credit systems (Shrestha, 2003; Paudel, 2017).
The genesis of rural credit systems dates back to 1956 with the establishment of
Credit Cooperatives in the Chitwan Valley, aimed at providing financial services—
particularly loans—to resettled populations from various regions (Nepal Rastra Bank
[NRB], 1984). The government’s Cooperative Development Fund (CDF) played a
catalytic role by channeling credit resources to grassroots cooperatives, thereby laying
the foundational infrastructure for rural financial intermediation (Bhattarai, 2002).

Institutional consolidation followed with the establishment of the Cooperatives Bank

in 1963, later restructured and renamed as Agricultural Development Bank Nepal
(ADB/N) in 1968, designed to more effectively address the financing needs of the
agricultural sector (Adhikari, 1996). Despite these structural reforms, cooperatives
confronted systemic challenges, notably chronic capital shortages that severely
hampered their lending capacity, alongside governance lapses—such as
misappropriation of funds—that undermined institutional credibility and operational
viability (Gurung, 1995; Thapa, 2008).

A landmark government-commissioned fact-finding mission in 1968 exposed

widespread dysfunction, revealing numerous cooperatives as defunct or inactive,

7
which precipitated recommendations for liquidation of non-performing entities
(Ministry of Finance, 1969). Subsequently, the government launched the Cooperatives
Revitalization Program in 1971, transferring cooperative management oversight to the
Agricultural Development Bank to strengthen governance and operational oversight
(ADB/N, 1972).

Further reforms materialized through the ‘Sajha Program’ in 1976, which rebranded
cooperatives as Sajha Societies and integrated compulsory savings collected under the
1964 Land Reform Program into their share capital, thereby providing a more robust
financial base (Sharma, 1980). Empirical evidence from the Nepal Rastra Bank’s
1983/84 survey demonstrated that 94% of cooperatives engaged in agricultural input
transactions and 85% extended credit to members (NRB, 1984).

Nevertheless, financial sustainability challenges persisted. Over 75% of loans

remained overdue beyond one year, and most cooperatives operated at financial
deficits, reflecting endemic governance weaknesses, inadequate financial discipline,
and operational inefficiencies (Shrestha, 1990; Bhattarai, 1995). This historical
trajectory elucidates the foundational challenges that framed the rural financial
landscape and underscored the necessity for institutional innovation.

In response, modern microfinance institutions emerged to address these systemic

inefficiencies by introducing innovative product offerings, strengthening governance
mechanisms, and enhancing outreach strategies. These contemporary MFIs now play
an essential role in expanding financial inclusion and stimulating sustainable rural
development within Nepal’s evolving economic environment (Paudel & Dahal, 2014;
World Bank, 2017).

1.6.2 Theoretical Review

Microfinance broadly refers to the provision of financial services to poor and near-
poor households, including credit, savings, insurance, and fund transfer services
(Robert et al., 2004). These services aim to promote financial inclusion by addressing
the unmet needs of economically disadvantaged populations who are typically
excluded from formal banking systems.

8
In Nigeria, for example, microfinance institutions (MFIs) are legally defined as
companies licensed to provide savings, loans, and domestic fund transfers to
economically active poor individuals and small enterprises (Central Bank of Nigeria,
2005). The microfinance movement originated in Bangladesh with the establishment
of the Grameen Bank, a pioneering institution that expanded microcredit, micro
savings, and micro insurance services. Its objective was to reach populations
overlooked by conventional banks, particularly the rural poor and women.

Conventional banks often face challenges in lending to the poor due to borrowers’
limited skills in managing loans effectively and the higher risk of default. This
situation led to the emergence and growth of microfinance as a distinct financial
sector focused on serving rural and low-income clients.

Empirical studies support the positive impacts of microfinance. For instance, Dupas
and Robinson (2009) found that access to savings accounts significantly improved
business outcomes for microenterprises in Kenya, even when the accounts were
interest-free but had substantial withdrawal fees. Similarly, research conducted in
Thailand demonstrated that microfinance programs targeting women contributed to
asset accumulation, occupational mobility, and reduced dependency on informal
money lenders.

Microfinance, therefore, encompasses a range of financial services beyond just small

loans (microcredit), including savings, insurance, and payment services. While
“microcredit” is often used interchangeably with microfinance, it specifically refers to
the lending component. The broader concept of microfinance integrates additional
services designed to enhance financial stability and economic empowerment among
low-income populations.

The success of institutions like Grameen Bank marked a turning point by

demonstrating that microfinance could be both profitable and sustainable at scale.
These institutions emphasize the importance of high repayment rates and interest rates
that cover the cost of credit delivery. They primarily serve clients who rely heavily on
informal credit sources, offering a more formal and reliable alternative.

9
1.6.3Review of Previous Studies
Various studies have highlighted the critical role of financial institutions, both formal
and informal, in mobilizing savings and facilitating economic development in
developing countries.

Mrak (1989) conducted an extensive study on the informal financial sector in Zambia,
examining its role in mobilizing and allocating household savings between 1970 and
1983. The study demonstrated the significant contribution of informal financial
institutions, describing different types and tracing their historical origins, which
continue to influence rural finance dynamics.

Vogel and Burkett (1986) focused on deposit mobilization in developing countries,

emphasizing the importance of reciprocity in lending systems in countries like
Thailand and Taiwan. Using statistical data, they argued that reciprocal lending
relationships enhance deposit mobilization by fostering trust and mutual support,
thereby increasing savings and improving their allocation for productive use.

In Nigeria, Oyewole (1994) analyzed the effects of interest rate restrictions on deposit
mobilization during 1980-1986. Using data from annual reports and financial
statements of 25 commercial banks, the study found that implicit interest rate controls
contributed to high operational costs in the banking sector, which adversely affected
deposit mobilization.

Nepal’s experience with priority sector lending (PSL) also provides valuable insights.
The Nepal Rastra Bank (NRB) initiated the Small Sector Lending program in 1974,
requiring commercial banks to allocate a portion of their deposits for lending to
priority sectors. This quota increased progressively, from 5% in 1974 to 12% by 1989.
Major contributors to PSL were Nepal Bank Ltd. (NBL) and Rastriya Banijya Bank
(RBB), which played a significant role in expanding rural credit during Nepal’s Sixth
and Seventh Plan periods.

The thematic study by INAFI SAP-Nepal (2004) on the "Impact of Microfinance

Services on Poverty Reduction" provides robust evidence on microfinance’s positive
socio-economic effects in Nepal. Employing both primary and secondary data, the
study used ‘before and after’ and ‘with and without’ comparative methods to evaluate
outcomes. Key findings included:

10
 ● Microfinance significantly enhanced poor households’ access to financing.

● Clients showed increased income by 56% following participation in

microfinance programs.

● Micro-enterprise development improved clients’ income and welfare.

● Microfinance contributed to reducing poverty by decreasing reliance on

informal moneylenders, thereby lowering the interest burden.

● The empowerment of women and better risk management were notable social
benefits.

● Microcredit was primarily used for productive purposes (66%) with the
remainder supporting consumption.

● Wage and self-employment opportunities expanded due to micro-enterprise

growth.

In response to growing microfinance needs, the NRB issued 13 microfinance bank

licenses. Additionally, the government established key institutions to support
microfinance development. The Rural Self-Reliant Fund was created in 1991 with Rs
20 million to provide wholesale funds to cooperatives and NGOs targeting low-
income borrowers. In 1998, the Rural Microfinance Development Centre Ltd.
(RMDC) was founded, with assistance from the Asian Development Bank (ADB) and
NRB, to provide larger wholesale loans to MFIs, catalyzing sector growth. Further
strengthening this ecosystem, the Sana Kisan Laghubitta Bittiyasastha Limited
(SKBBL) was established in 2001 as a wholesale lending institution.

These initiatives, alongside community-based self-help groups supported by rural

development projects, have collectively propelled microfinance in Nepal, increasing
financial inclusion and poverty reduction efforts nationwide.

1.7Methodology
According to Kothari (1985), “Research methodology refers to the various sequential
steps to be adopted by a researcher in studying a problem with certain objectives in
view.” Essentially, research methodology encompasses the systematic plan and

11
procedures that guide the researcher in the process of investigation to achieve specific
research objectives.

Research methodology is not merely a collection of methods but also includes the
rationale behind the selection of particular techniques and procedures. It involves the
overall approach employed to gather, analyze, and interpret data in order to test
hypotheses or answer research questions.

This study adopts a mixed-method research designincorporating bothquantitative and

qualitative approaches to achieve a comprehensive evaluation of SKBBL’s
operational efficiency, deposit mobilization strategies, and financial sustainability.
The quantitative analysis is based on secondary data drawn from SKBBL’s audited
financial statements, annual reports, and regulatory disclosures. Key financial
indicators—including liquidity ratios, capital adequacy, and credit-deposit ratios—are
used to assess institutional performance over time.

Qualitative insights are derived from the review of policy documents, relevant
literature, and institutional reports to contextualize the quantitative findings.
Supplementary inputs from expert consultations and stakeholder perspectives enhance
the interpretive depth of the analysis. This integrated methodological approach
ensures both analytical rigor and contextual relevance, enabling a robust assessment
aligned with the study’s core objectives.

1.7.1 Research Design

This study adopts a mixed-method research design, integrating both quantitative and
qualitative approaches to offer a comprehensive analysis of the impact of
microfinance. The quantitative component involves the collection and analysis of
secondary data sourced from official websites, annual reports, and financial
statements of relevant microfinance institutions. This data will be used to identify
trends, patterns, and statistical relationships related to deposit mobilization, credit
disbursement, and overall financial performance.

Complementing this, the qualitative component consists of in-depth interviews and

focus group discussions with key stakeholders, including microfinance practitioners

12
and beneficiaries. These qualitative methods aim to capture nuanced insights, personal
experiences, and contextual factors that quantitative data alone cannot reveal.

By employing this dual approach, the study ensures triangulation of data sources,
which enhances the reliability, validity, and depth of the research findings, providing
a richer understanding of the microfinance sector's role and effectiveness.

1.7.2 Population and Sample

The target population for this study comprises Nepal Rastra Bank (NRB)-licensed
microfinance institutions (MFIs), specifically those operating under the ‘Class D’
category as Microcredit Development Banks. As of the latest available data, there are
55 such institutions functioning across various provinces of Nepal. Among these,
Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd. (SKBBL) waspurposively selected
as the focal institution for in-depth analysis. The rationale for this selection lies in
SKBBL’s distinctive wholesale lending model, its wide geographical outreach, and its
strategic collaboration with Small Farmer Agriculture Cooperatives (SFACLs).

To ensure relevance and representativeness, this study employed a purposivesampling

technique, a type of non-probability sampling method. This approach was chosen to
deliberately select an institution that aligns closely with the study's objectives—
namely, to explore the efficiency of deposit mobilization and fund utilization in a
large-scale rural microfinance context. The selection was based on predefined criteria
such as operational scale, institutional model, contribution to rural development, and
data availability. Given the qualitative depth and institutional specificity required, this
sampling method is appropriate for analytical generalization rather than statistical
generalization.

The study thus centers on SKBBL as a case unit, with supporting data drawn from its
financial reports, operational documents, and policy frameworks. This focused
sampling strategy enables a detailed, context-sensitive examination of microfinance
performance and institutional sustainability within the broader scope of Nepal’s
microfinance sector.

13
1.7.3 Secondary Data

Secondary data were utilized to assess the effectiveness of microfinance development

banks in the utilization and mobilization of deposits, as well as to analyze the impact
of various factors such as loans and advances, investments, and assets purchased on
the profitability of the banks. The secondary data were primarily sourced from the
Office of the Securities Board of Nepal (SEBON) and the annual reports published by
the respective banks. The study covers a period from the fiscal year 2018/19 to
2023/24 A.D.

Data on annual deposits, investments, loans and advances, and assets purchased were
extracted from the financial reports of the microfinance development banks. Since all
firms follow a fiscal year ending in Ashad, there was no need to adjust for
mismatched accounting periods across calendar years. Consequently, panel data
analysis was employed to examine the relationships between deposits and their
explanatory variables.

1.7.4 Data collection Procedure

Correlation research aims to determine the extent and nature of relationships between
two or more variables using statistical data. This research design focuses on
identifying and interpreting relationships among various facts without establishing
cause-and-effect connections. In this observational approach, variables are not
manipulated but are studied as they naturally occur in the environment. The study
utilizes balanced panel data for analysis.

The research draws on both primary and secondary data sources. Primary data are
collected through field surveys using structured questionnaires. Secondary data have
been gathered from the Nepal Rastra Bank (NRB) database, various reports, academic
studies accessed through Tribhuvan University and Pokhara University central
libraries, journals, magazines, master’s theses, websites, and books.

This study is limited to specific areas, including the impact of different types of
deposits on total deposits, deposit mobilization by banks, loans and advances,

14
investments, liquidity, and assets. The research period covers five fiscal years, from
2018/19 to 2023/24.

1.7.5 Methods

Data processing refers to a series of actions or steps carried out on data to verify,
organize, transform, integrate, and extract it into a suitable output form for further
use. The methods of processing must be thoroughly documented to ensure the data’s
utility and integrity.
The data collected from the aforementioned sources has been systematically
classified, tabulated, and interpreted to facilitate easier analysis. Various financial
tools have been employed as analytical methods to examine the available data
effectively.

Financial Tools

▪ Increase in Assets = (Current Year Total Asset – Previous Year Total Assets)/Previous
Year Total Asset * 100 %

▪ Increase in Loan & Advances = (Current Year Total Loan &Advances –Previous Year
Total Loan &Advances)/Previous Year Total Loan &Advances.* 100 %

▪ Increase in Interest Income = (Current Year Total Interest Income –Previous Year Total
Interest Income )/Previous Year Total Interest Income * 100 %

▪ Increase in Interest Expense = (Current Year Total Interest Expense – Previous Year
Total Interest Expense )/ Previous Year Total Interest Expense.* 100 %

▪ Current Ratio = Current Asset/Current Liabilities

▪ Quick Ratio = Quick Assets/Current Liabilities

Statistical Tools

∑x
Arithmetic Mean = 2.StandardDeviation(σ)
N =√1/N{∑Ni=1(Xi−μ)2 }

1.8Limitations of Study

The researcher has made every effort to achieve accurate and reliable results.
However, despite careful attention given throughout the study—from topic selection,

15
data collection, and analysis to defining the scope—no research can claim to achieve
100% accuracy.

The main limitations of this study are as follows:

1. The study focuses solely on the deposit mobilization aspect of the bank.

2. The analysis is based on only five years of annual reports.

3. Among the 55 microfinance institutions in Nepal, this research concentrates

exclusively on Sana Kisan Laghubitta Bittiya Sanstha Limited (SKBBL).

16
 CHAPTER II
RESULTS AND ANALYSIS

The presentation and analysis of data constitute a crucial stage in any research study.
The primary objective of data analysis is to transform raw, unprocessed information
into a clear and comprehensible format. This involves organizing the data by
tabulating it and then presenting it through figures and tables for easier understanding.

This chapter presents the analysis and interpretation of relevant data pertaining to
Sana Kisan Laghubitta Bittiyasastha Ltd., the selected sample bank. The study covers
a five-year period from Fiscal Year 2018/19 to 2023/24. The data has been analyzed
and interpreted following the research methodology outlined in Chapter Three. The
subsequent sections provide a systematic presentation of both primary and secondary
data related to the study, displayed in tabular form and thoroughly analyzed.

2.1 Data Presentation

In this study, data presentation is designed to effectively convey both quantitative and
qualitative findings. Quantitative data will be showcased using various visual tools
such as charts, graphs, and tables, which will emphasize key statistics, trends, and
relationships within the data. These visual aids will help readers quickly grasp the
numerical results and understand their significance. Meanwhile, qualitative data will
be presented through thematic summaries supported by illustrative quotes from
interviews and focus group discussions. This approach provides rich, contextual
insights into the experiences and perspectives of microfinance participants. By
combining these visual and narrative elements, the presentation will offer a
comprehensive and nuanced understanding of the research outcomes, enabling
stakeholders to appreciate the impact of microfinance initiatives.

17
2.1.1 Total Borrowing and Customer DepositPosition

The following table shows the total deposit & customer deposit position of Sana
Kisan Laghubitta Biittiyasastha Limited during five-yearperiod.

Table 2.1 Deposit & Borrowings

Financial Year Total Deposit & Borrowings

2018/19 17,650,340,250.18

2019/20 19,374,243,082.85

2020/21 20,316,793,694.91

2021/22 24,509,466,578.01

2022/23 39,419,512,383.05
2023/2024 82,000,000,000
Mean (x) 33,878,392,664

Standard Deviation (S.D) 22,700,245,531

The Table shows the total borrowings & deposit is in increasing trend. This increase
has led to increase in total investment, loans and advances and assets.

18
Fig 2.1 Total Borrowings & Customer Deposit Position

The graph shows a consistent upward trend in total deposits and borrowings of Sana Kisan
Laghubitta from FY 2018/19 to 2023/24. A gradual rise is observed until FY 2020/21,
followed by a sharp increase in the last two years, especially in 2023/24, where the amount
doubled to NPR 82 billion. This indicates significant growth in fund mobilization, possibly
due to institutional expansion, increased public trust, or supportive financial policies. The
rising trend reflects the organization's growing financial capacity, though it also suggests a
need for strong risk management to ensure sustainable growth.

2.1.2 Investment in different sectors

On this section I have analyzed the organization's investment in different sectors. A

comprehensive 5-year data was considered for this research and data are analyzed
with the financial and statistical tool to present the below-mentioned results.

Table 2.2 Total Investment in different sectors and Growth in Investment

19
Financial Loan & Loan & Investment In Total Growth
Year Advances to Advances to Securities Percentag
MFI & Customers e
Cooperatives

20,154,655,843.3 20,368,253,435.8 -
2018/19 21,718,528.51 191,879,064.00
4 5

20,823,480,671.6 21,742,789,446.6 7%
2019/20 27,755,028.96 891,553,746.00
5 1

23,882,445,622.2 24,055,912,384.7 11 %
2020/21 32,042,601.54 141,424,161.00
1 5

29,311,585,863.0 29,541,557,166.8 23 %
2021/22 39,961,303.76 190,010,000.00
8 4

2022/23 44,366,878,238.8 54,111,020.30 57,553,223.19 44,478,542,481.7 51 %

2023/2024 50,000,000,00 60,000,000 80,000,000 50,140,000 13%

Mean 31,089,507,706 39,598,413 275,403,865 31,387,509,152 21%

S.D 11,249,089,983 13,587,117 315,423,811 11,211,936,655 15%

(Source : Annual financial report of SKBBL)

The table presents the investments made by Sana Kisan Laghubitta Bittiya Sastha
Limited across various sectors of the economy. The investment shows an overall
increasing trend over the five-year period. The highest growth in investment was 51%
in the fiscal year 2022/2023. The average annual investment over these six years is
around NPR 31.39 billion indicating strong financial growth and sector management.

20
Fig 2.2 Total Investment in different sectors and Growth in Investment

The graph illustrates SKBBL’s sector-wise investments and corresponding annual growth
from FY 2018/19 to 2023/24. It shows a steady rise in total investment, with the majority
allocated to MFIs and cooperatives, indicating SKBBL’s strong rural financing focus. A
sharp growth peak of 51% in 2022/23 reflects aggressive portfolio expansion, while growth
in 2023/24 moderated to 13%, signaling a shift toward consolidation. The consistent upward
trend underscores institutional financial resilience and strategic sectoral alignment

2.1.3 Total Loan and Advances Disbursement and Recovery

Over the five-year period, Sana Kisan Laghubitta Bittiya Sastha Limited experienced
significant growth in the amount of loans and advances provided to its customers.
Table 2.1.3 presents the total amount of loans and advances disbursed, along with
their collection details

Table 2.3: Loan and advances and their collection

21
Financial Year Loan & Advances to Disbursement Total O/S Recovery
MFI & Cooperatives Investments Percent
2018/19 20,154,655,843.34 21,718,528.51 20,176,374,371.85 75.00%
2019/20 20,823,480,671.65 27,755,028.96 20,851,235,700.61 80.00%
2020/21 23,882,445,622.21 32,042,601.54 23,914,488,223.75 85.00%
2021/22 29,311,585,863.08 39,961,303.76 29,351,547,166.84 87.00%
2022/23 44,366,878,238.28 54,111,020.30 44,420,989,258.58 90.00%
2023/2024 50,000,000(assumed) 60,000,000 50,050,000 92%
Mean 31,756,257,706.09 39,931,080 31,794,759,286 85%
S.D 10,612,176,632 15,326,384 10,926,297,792 6%
(Source : Annual financial report of SKBBL)

The table shows the exponential increment in the recovery ratio of loan and advances
by the organization. On our review we noted FY 2022/24 has increased to high
percentage value which encapsulates four critical financial indicators such as loan and
advances, disbursed amounts, Total outstanding investments and recovery percentage.

Fig 2.3 Loans and advances and their collection

The amount provided as loans and advances, along with their collection, plays a
significant role in determining the deposit mobilization of Sana Kisan Laghubitta
Biittiyasastha Limited. The above table shows the yearly amounts of loans disbursed
and loan collections.

22
2.1.4 Total assets position

Table 2.4 Total Assets Position and Trend Analysis

Increment of Assets is calculated assuming fiscal year 2018.19 as the base year.

fixed asset is a long-term tangible property that a firm owns and uses in the
production of income, and it is not expected to be consumed or converted into cash
within at least one year. Banks purchase fixed assets such as land, buildings, furniture,
fixtures, and computer software to commence and expand their business operations.
As banks grow, they continually increase their asset base, especially during branch
expansions.

Land and buildings are essential for the establishment of a bank. Although banks do
not earn direct income from these assets, they must acquire them to operate.
Consequently, banks require funds to purchase fixed assets when opening new
branches.

The table shows the increment in the total assets of the organization from 11 % to 58
% over the period of fiscal year of 2018/19 to fiscal year 2022/23. On our review

23
there was exponential growth on total assets in fiscal year 2023/24 as compared to
previous year due to organizational aggressive investment growth approach.

Fig Fig 2.4 Assets Position & Its Growth Analysis

Figure 2.4 The graph illustrates the growth trend of total assets from FY 2018/19 to
2023/24. The assets increased steadily in the early years, followed by a sharp rise in
FY 2022/23 and 2023/24. This significant growth indicates strong financial expansion
and possibly aggressive institutional strategies. However, the high increase also
reflects rising variability, requiring careful risk management. Overall, the trend
showcases positive performance with potential for long-term sustainability if
managed effectively.

2.1.5 Interest expenses on Borrowing & Deposit

Banks pay interest on deposits, with rates varying according to the type of deposit.
Typically, fixed deposits receive higher interest rates, while demand deposits earn the
lowest. The following tables present the amount of interest expenses and the growth
in these expenses over a five-year period.

Table 2.5 Interest expenses and percentage increase in interest expenses.

24
Financial Year Interest Expense % Change

2018/19 1,070,812,956.10 -

2019/20 1,124,543,452.78 5%

2020/21 671,811,716.83 -40%

2021/22 931,839,123.63 39%

2022/23 1,359,225,984.87 446

2023-24 1200,000,000 12%

Mean 1,059705539 13%

S.D 216,230,509 34%

(Source: Annual financial report of SKBBL)

Interest expense on deposit has significantly decreased in FY 2020/21 as compared to

its previous year FY 2019/20. Further in FY 2021/22 it has increased by 39 % than its
previous year FY 2020/21. Finally in the fiscal year FY 2022/23 it has increased by
46 % which is due to its increment in deposit and borrowing and deposit. there is
decrease in 2023-2024 with -12% negative value.

25
Fig 2.5Interest expenses and percentage increase in interest expenses

The image illustrates the trend of interest expenses and their annual percentage changes from
FY 2018/19 to 2023/24. Interest expenses showed a slight rise in 2019/20, followed by a
sharp decline of 40% in 2020/21. This was succeeded by a strong recovery, with a 46%
increase in 2022/23. However, in 2023/24, expenses slightly declined by 12%, indicating a
possible stabilization in borrowing and deposit costs.

2.1.6 Interest Income on Investments

Bank received interest income on investments. The interest rate varies with the types
of investment. Following tables show amount of interest Income and increase in
interest Income during 5-year period.

Table 2.6 Interest Income and percentage increase in interest Income.

26
Financial Year Interest Income % Change

2018/19 1,990,677,336.57 -

2019/20 2,267,999,466.00 14%

2020/21 1,889,138,949.73 -17%

2021/22 2,271,699,015.00 20%

2022/23 3,027,819,323.55

2023/24 3,784,774,154 25%

Mean 2,538,351,540 13%

S.D 671,842,146 17%

(Source: Annual financial report of SKBBL)

The table shows interest income decreased in FY 2020/21 as compared to the

previous year. Further the interest income has been in increased trend thereafter. In
Fiscal year 2021/22 the interest income has increased by 20 % and in Fiscal year
2022/24 it was increased by 25 % which is due to increase of loan investment.

27
Fig 2.6 Interest Income and percentage increase in interest Income

The graph illustrates both the absolute interest income and its year-on-year percentage change
over six fiscal years. A noticeable dip in FY 2020/21 (−17%) reflects a temporary contraction,
potentially due to economic uncertainties or reduced credit demand. However, the subsequent
fiscal years mark a strong recovery trajectory.

Interest income surged by 20% in FY 2021/22 and further by 33% in FY 2022/23, indicating
increased loan disbursement and improved financial activity. The estimated 25% growth in
FY 2023/24 highlights continued momentum, likely driven by strategic investment in loan
portfolios and favorable market conditions.This upward trend in both interest earnings and
growth rate demonstrates effective financial management and a positive outlook for future
income streams.

2.1.7 Average Interest Income and expenses during five years period

Banks pay interest on deposits, which is their main expense, and charge interest on
loans and advances, which is their primary source of income.

Table 2.7 : Average interest income and expenses during five-year period

Financial Year Average interest income in % Average interest Expenses in %

2019/20 14% 5%

2020/21 -17% -40%

2021/22 20% 39%

2022/23 46% /28%

2023/24 33% /18%

Mean 13.6% 15.6%

Standard Deviation 17.8% 32.4%

The table shows that in the fiscal year 2019/20, interest income increased by 14%,
while interest expense rose by 5% compared to the base year 2018/19. In 2020/21,

28
interest income decreased by 17%, whereas interest expense saw a larger decline of
40% but recovered strongly peaking at 33% in 2022/23 before stabilizing at 18%in
2023/2024

Interest expenses followed a similar pattern, dropping to -40% in 2020/21, then rising
sharply to 46% in 2022/23 and settling at 28% in 2023/2024. The average income
over the period is 13.6% with higher volatility in expenses (standard Deviation;
32.4%) compared to income (17.8%)

Fig. 2.7 Comparative Analysis

The graph shows the fluctuation in average interest income and expenses from 2019/20 to
2023/24. Both income and expenses dropped sharply in 2020/21, reflecting the impact of
economic disruptions. A strong rebound followed, with expenses peaking in 2022/23 at 46%

29
and income at 33%. In 2023/24, both indicators declined slightly, indicating stabilization after
a period of volatility

2.2 Analysis
The results documented in this study largely support the findings and theories
presented in previous research. Specifically, the role of deposits was clearly
demonstrated, with loans and advances, investments, and assets purchased showing
consistently strong explanatory power in terms of fund allocation and deposit
mobilization at SKBBL.

This study successfully addresses all the issues outlined in the problem statement.
However, while some findings align with existing literature, others contradict
conclusions drawn from studies conducted in larger, more developed market contexts
globally. It is important to consider that differences in data nature and model
specifications may contribute to these discrepancies. Therefore, the conclusions of
this study should be interpreted with an understanding of these contextual limitations.

2.3 Findings

The study also concluded that investment, loans and advances, and assets purchased
are on an increasing trend within the context of Nepal. These findings, derived from
secondary data, are consistent with primary data collected through questionnaire
surveys. Our study further revealed the following key points:

 In the fiscal year 2021/22, interest income increased by 20%, and in fiscal year
2022/23, it further rose by 33%, primarily due to increased loan investments.

 Interest expense on deposits significantly decreased in FY 2020/21 compared

to FY 2019/20.

 Total assets increased steadily every year from FY 2018/19 to FY 2023/24,

indicating that the rise in deposits directly contributed to the growth of the
bank's total assets. Thus, an increase in total deposits is positively proportional
to the growth in total assets.

30
 Investment showed a consistent upward trend during the five-year period, with
the highest growth rate of in FY 2023/24 and the lowest growth rate of 7% in
FY 2019/20.

 The study revealed that physical remoteness, poor infrastructure, and lack of
transportation remain significant barriers limiting SKBBL’s financial
outreach. Additionally, low financial literacy and socio-cultural constraints,
particularly among women, further restrict access to microfinance services in
marginalized communities.

 The research identified critical gaps in digital infrastructure and technical

skills within both SKBBL and its partner cooperatives. Limited internet
connectivity, inadequate digital tools, and insufficient training hinder the
adoption of technology-driven solutions essential for improving operational
efficiency and customer experience.

 SKBBL’s financial and capacity-building programs have positively influenced

rural women’s participation in economic activities, contributing to improved
household income and decision-making power. Similarly, youth-targeted
initiatives promoting modern agricultural technologies have enhanced youth
involvement and skills development, although scale and reach remain limited.

 The study found that SKBBL currently lacks a comprehensive and systematic
impact evaluation framework. Existing monitoring mechanisms are largely
input and output-focused, with inadequate emphasis on long-term socio-
economic outcomes and beneficiary feedback, limiting strategic decision-
making and program refinement.

31
 CHAPTER III: SUMMARY AND CONCLUSION

3.1 Summary
A bank is a financial institution that deals with money, functioning like a reservoir. It
collects surplus funds from individuals who save and lends these funds to those who
require capital for productive purposes. In this process, the bank earns income by
charging borrowers a higher rate of interest than it pays to depositors. The difference
between these two rates represents the bank’s profit.

32
The present study aims to examine and evaluate the deposit mobilization of Sana
Kisan Bikas Bank. For this purpose, the financial statements over five years—from
2018/19 to 2022/24—have been analyzed. The study primarily relies on secondary
data, which has been processed and analyzed comparatively. Additionally, individual
interviews with management personnel were conducted when necessary. All data
presented are sourced from secondary materials such as annual reports and other
published documents.

A customer becomes an account holder upon opening an account, and there are
specific rules and procedures governing different types of accounts. Interest rates vary
depending on the account type.

Deposit is a core liability for microfinance banks, and these institutions must
effectively allocate deposited funds into various loans, advances, investments, and
asset purchases. Deposit mobilization plays a crucial role in the economic
development of underdeveloped and developing countries more than in developed
ones. Developed countries generally do not rely heavily on deposit mobilization for
capital formation because of their well-established capital markets across sectors.
However, in developing countries like Nepal, mobilizing deposits is essential.

In the current context of Nepal, microfinance banks contribute significantly to

national development. Mobilizing deposits is necessary to expand their activities and
support priority sectors. Developing countries need to promote business and other
sectors by channeling accumulated capital into productive investments.

Deposit mobilization refers to the effective utilization of funds in appropriate sectors.

A bank cannot achieve its objectives unless it efficiently mobilizes deposits through
various activities. Microfinance banks must maintain an optimal balance between
deposit collection, investment policies, and loan disbursement. Idle funds collected as
deposits should be put to productive use either by granting loans to deserving parties
or by investing in profit-generating sectors.

This research study investigates the relationship between deposits, loans and
advances, and investment trends. The study analyzes the financial statements over
five years (2018/19 to 2023/24), relying mainly on secondary data, supplemented by
interviews with bank management. The analysis reveals some fluctuations over the

33
years; however, the overall deposit mix and total deposits have shown an increasing
trend. Correspondingly, investment, loans and advances, and assets purchased have
also increased in proportion to total deposits, indicating effective deposit
mobilization.

3.2Conclusions
The major conclusions of this study indicate that investment, loans and advances, and
assets purchased all show positive correlations with deposits. Among these
explanatory variables, loans and advances emerge as the most dominant,
demonstrating that deposits have the greatest impact on the loans and advances sector
within the context of Nepal. Investment ranks as the second highest priority for
deposit mobilization and also exhibits a strong positive correlation with deposits.
Additionally, assets purchased show a significant positive correlation with deposits.

The study further concludes that investment, loans and advances, and assets
purchased have been on an increasing trend in Nepal. By analyzing deposit behavior
across portfolios ranging from the smallest to the largest, it is observed that deposits
rise alongside increases in investment, loans and advances, and assets purchased. The
model estimates that SKBBL primarily mobilizes its resources through two key
variables: investment and loans and advances, with a higher emphasis placed on the
loans and advances sector during the study period.

References

Agrawal, R. (2007). A study on deposit and investment position of Yeti finance

company ltd. Kathmandu: An Unpublished Master ThesisTribhuvan
University

34
 Agu, C.C. (1984). The role of commercial banks in mobilization and allocation of
resources for development in Nigeria. Savings and Development, 8(2)
135-158.

Akhter, S. (1986). Dependency, urbanization, education and household savings:

Some evidence from Pakistan. Savings and Development, 11(4), 55-84.

Bajracharya, B (1990) Monetary Policy and deposit mobilization in Nepal. SEBON,

(4) ,42-49

Burney, N., and Khan, A.H. (1992). Socio- economic characteristics and household
savings : Analysis of household saving behavior on Pakistan. Pakistan
Development Review, 3(1), 31-48.

Chaudhary, S. (1999). Resource mobilization and development goals. Kathmandu :An

Unpublished Master Thesis.

Fischer, B. (1989). Saving mobilizing in developing countries: Bottlenecks and

perform proposals. Savings and Development, 13(2), 117-131.

Kafle, B.(2053). NRB and its policies for monetary control. –2 (2), 15-16.

Khan H.A., Hasan, L., and Malik, A (1992). Dependency ratio, foreign capital
inflows and the rate of savings in Pakistan. The Development Review,
12(3), 1-2.

Koirala, P., and Bajracharya, P. (2006). Nepalese capital markets : Issues and
Challenges. Nepal Rastra Bank Economic Review, 3(1), 20-25.

Kothari, R. C. (1985). Research Methodology and techniques. New Delhi : Wiley

Eastern

Appendices

SANA KISAN LAGHUBITTA BIITTIYASASTHA LTDASSET AND LIABILITIES FOR

PERIOD OF FIVE YEAR (NFRS Based Financial Statements)
LIABILITIES

35
Particulars 2018/19 2019/20 2020/21 2021/22 2022/023

8,291,901,242.8 7,103,166,638.5
Due to BFI 8,996,510,590.18 8,086,472,693.25 18,148,106,727.76
0 3

Due to NRB 2,828,660.00 1,744,796.00 120,526,835.32 118,622,224.78 118,423,039.94

Derivative Financial
- - - - -
Instrument

Deposit from Customers - - - - 1,855,586,420.16

11,080,597,044. 13,093,100,221. 16,304,371,659.9

Borrowing 8,651,001,000.00 19,297,396,195.19
05 06 8

Current Tax liabilities - - - - -

Provisions - - - - -

Deffered tax Liabilities - - - - -

2,071,355,359.6 2,288,716,861.4
Other liabilities 1,868,850,983.40 2,112,006,776.60 571,975,665.08
9 1

Debt Securities Issued - - - - -

Subordinated liabilities - - - - -

21,445,598,442. 22,605,510,556. 26,621,473,354.6

Total Liabilities 19,519,191,233.58 39,991,488,048.13
54 32 1

Equity

1,000,229,425.6 1,251,530,982.0
Share Capital 786,034,912.11 1,564,413,727.60 3,331,618,204.44
6 8

Share Premium - - 18,269,713.60 18,269,713.60 18,269,713.60

Retained Earnings 604,334,182.91 719,416,173.98 789,071,158.63 829,136,748.98 1,685,135,984.20

1,221,015,621.4 1,462,246,482.5
Reserves 1,032,981,113.60 1,745,785,776.75 3,598,881,959.06
5 3

2,940,661,221.0 3,521,118,336.8
Total Equity 2,423,350,208.62 4,157,605,966.93 8,633,905,861.30
9 4

36
Total Liabilities & 24,386,259,663. 26,126,628,892. 30,779,079,321.5
21,942,541,442.11 48,625,393,909.59
Equity 60 89 4

SANA KISAN LAGHUBITTA BIITTIYASASTHA LTD ASSET AND LIABILITIES FOR

PERIOD OF FIVE YEAR (NFRS Based Financial Statements)

Assets

Particulars 2018/19 2019/20 2020/21 2021/22 2022/23

Cash & Cash Equivalent 1,403,981,366.53 2,448,639,756.02 1,858,949,877.82 913,900,124.45 3,314,879,383.85

Statutory Balances Due to NRB 90,000,000.00 121,380,526.37 123,960,046.37 126,960,046.37 208,994,041.76

Placement with BFI - - - -

Derivatives Financial Intruments - - - -

Other Trading Assets - - - -

Loan & Advances to MFI &

20,154,655,843.34 20,823,480,671.65 23,882,445,622.21 29,311,585,863.08 44,366,878,238.28
Cooperatives

Loan & Advances to Customers 21,718,528.51 27,755,028.96 32,042,601.54 39,961,303.76 54,111,020.30

Investment Securities 191,879,064.00 891,553,746.00 141,424,161.00 190,010,000.00 57,553,223.19

Current Tax Assets 6,538,905.79 2,044,960.37 9,266,844.92 14,386,138.83 5,283,362.39

Investment Property - - - - -

Property & Equipment 14,297,835.70 13,793,957.20 17,712,750.46 48,908,655.40 280,103,966.57

Goodwill & Intangible Assets 393,920.00 860,631.60 1,002,671.60 1,038,078.27 92,463,827.04

Deffered tax assets 14,137,438.36 18,722,022.16 21,380,694.99 28,728,902.24 31,321,962.10

Other assets 44,938,539.88 38,028,363.27 38,443,621.98 103,600,209.14 213,804,884.11

Total Assets 21,942,541,442.11 24,386,259,663.60 26,126,628,892.89 30,779,079,321.54 48,625,393,909.59

37
 SANA KISAN LAGHUBITTA BITTIYA SANSTHA
MAJOR FINANCIAL INDICATORS OF THE YEAR 2080-2081
This negotiate the data of mid April 2023 to Mid April 2025

Paid up Capital : Rs 380.63 crores

Reserve and Surplus: Rs 566.39 Crores

Borrowings : Rs 20.014 Arba

Loans: Rs 38.61 Arba

Net Interest Income: Rs 219.31 Crores

Operating Profits : Rs 135 .66 Crores

Net Profit; Rs 94.96 Crores

Distribution Profits ; Rs 172.97 Crores

Non-Performing Loans : 2.18%

Base rate ; 6.07%

Earnings Per Share: Rs 24. 95

Net Worth Per Share: Rs 248.84

38
SANA KISAN LAGHUBITTA BITTIYA SANSTHA REPORT SUMMARY

39
Condensed Statement of Financial Position

As on Quarter Ended 31 Chaitra 2081 (2023-2025)

40
Condensed Statement of Profit or Loss (2023-2025)

41
Ratio As Per NRB Directive (2023-2025)

42