Chapter-I: 1.1 Background
Chapter-I: 1.1 Background
Chapter-I: 1.1 Background
CHAPTER-I
INTRODUCTION
1.1 Background
as reflected by lower per capita income, high rate of unemployment, lower rate
of economic groeth rate etc. Most of the population is still living below
poverty level (i.e.31%) with one of the lowest rate of per capita income(i.e.
$300) only. The development of economy of the country depends upon the
business of money. Bank collects money from the general public attracting
them with a sound interest rate in their deposit and utilize those funds by
and other needy parties. For the economic development, capital formation,
bank account that allows money to be depositd and withdrawn by the account
holder. These transactions are recorded on the bank's books, and the resulting
balance is recorded as a liability for the bank and represents the amount owed
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by the bank to the customer. Some banks may charge a fee for this service,
while others may pay the customer interest on the funds depositd.
types of deposits, disbursing loan and rendering other financial services. There
are different type of banks and among them commerical bank is one of them
by generating profit.
Development Bank. Since February 2012, Sanima has been functioning as “A”
profitability consistent with bank’s risk appetite. The bank has been dedicated
Sanima has been committed to meet customer expectations in all areas of its
of the banks to earn profit depends on the volume of deposits and deposit mix
they have.
Following are the major problems that have been identified for the purpose of
this study
i. What is Deposit Account of Sanima Bank over the last five years?
1.3 Objectives
i. To analyze the Deposit Account of Sanima Bank over the last five
years .
1.4 Rationale
doesn’t have to pay the deposit of their depositors at any time. The bank can
earn more profit if it’s able to utilize the money of current account properly.
Unlike, current deposits, the bank have to pay the interest for other accounts.
bank is able to collect more and more deposit in current account then by
utilizing a small portion of the current deposit in other various field bank can
CHAPTER I: INTRODUCTION
This has included introduction along with general background of the study,
of deposit account. This chapter will be divided into two parts, first being
nature and sources of data, data gathering procedure, tools and techniques of
It’s the main part of the study. It dealt with presentation and analysis of data
collected from different sources. The collected data will be analyzed to reach
included.
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CHAPTER-II
RELATED LITERATURE REVIEW
receving research studies or other relevent propositionns inn the related area of
the study so that all the past studies their conclusion and deficiencies may be
Deposit is the main part of every financial institution and banks. Without
deposit collection loan could not be folwed. There are many deposits which
can be study in this report. The mainly four deposits are included in this
2.1.1 Saving deposit:- As these type of deposit are mainly used by middle
class farmers, officials, teachers, and small businessman who have low income
sources. This deposit is for saving purpose. It stand midway between current
compared to that of fixed deposits. These deposits encourage the habit of thrift
financial institution.
cannot:be withdrawn for a certain “term” or period of time. When the term is
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over it can be withdrawn or it can be held for another term. The longer the
term the better the yield on the deposit. No transactions are allowed to be
money with the bank for a specific period of time. Depositor is not allowed
to withdraw the amount before the expiry of the period for which it is
are generally maintained by the traders and businessman who have to make a
Depositors sometimes may have to pay certain charges to the bank for the
amount of deposits.
current and fixed deposit invented for meeting customers financial needs in a
facilitated to introduce this deposit product. This deposit mainly serves the
are conducted through this product. This kind of account is generally opened
by bank and financial institutions, firms and companies. Bank pay certain rate
2.1.5 CDTD Ratio and CDFD Ratio:- They are the ratio which shows that
what percent of current deposit is of total deposit and fixed deposit. CDTD
Ratio is presents the relationship between current deposit and total deposit.
Likewise CDFD Ratio presents the rationship between current deposit to fixed
deposit.
2.1.6 CDSD Ratio and CDCD Ratio:- Both ratios are related with currrent
deposit. It means that what percent of current deposit is of saving deposit and
saving deposit and CDCD Ratio shows the relationship between cureent deposit
to call deposit.
Mrs. Radhika Dhungana had conductes research on the “Deposit and Current
T.U. Researcher main objective was to identify current account and opening
tools to conduct such resarch. She used data only for last thre three years.
Mr. Bishal Bhattarai had conductes research on the “Deposit Policy and
mobilization and utilization and analyzed the current fixed and saving deposit
positionn. Researcher also used three year data to conduct resarch work.
In 2072, Mr. Shishir Dhakal had done research on “Deposit Mobilization and
Utilization of RBB” The focus of the study is to study the trend of total
deposit and deposit mobilization and its utilization. Researcher had followed
In 2072, Mrs. Genisha Sangraula had done research on “Deposit and current
Through few affiliated researchers have been done in this area but these have
been very few exclusive researcher on this subject. This study may be a new
study in this Bank and in study has been made on Deposit Analysis of
Sanima Bank Limited. Previous researcher use primary data collection. Present
context, these are the significant issue in Nepalese bank sector. Thus to fill up
this gap the current researcher in conducted. This researcher is based on the
secondary data. It examines the current data and figure. This study is trying to
do something new on the topic not yet studies. Previous researchers had
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analyzed Deposit and Current Positionn, Deposit Policy and Current Policy,
Deposit Mobilization and Utilization. They had not analyzed Deposit Account
of Sanima Bank Limited. Therefore the researcher try to analyzed ratio related
to various deposit such as Current Deposit, Fixed Deposit, Saving Deposit and
Call Ceposit. Previous researcher used both financial and statistica tools to
analyzed the CDTD, CDFD, CDSD and CDCD ratio but now researcher used
financial tools only. Previous researcher used data from fiscal year 2010/012 to
CHAPTER-III
RESEARCH METHODOLOGY
with aim of studying the subject of researching detail and explain the feats
design. It collects and presents the facts and figure in a certain situation.
agriculture, industry and commerce and banking services to the people and
authorized to receive both deboned and time deposits to engage in trust service
to issue latter credit, to rent item deposit boxes and to provide similar service.
function and other services etc. The time limitation and unavailability of the
relevant data had forced to me make research on the few commerical bank
functioning all over the kindom and most of their stocks are trade activity in
the stock market out of them commerical bank has been chosen this study on
For investigation propose the data are necessary requirement. Generally data
can be obtained by the two sources it primary sources and secondary sources.
3.3.1 Primary Data: This type of data are obtained by study sepecially
designed to fulfill the data needs. Primary data can obtain by applying the
3.3.2 Secondary Data: Particularly the study will base on the data available
from Sanima Bank. Suach a concentration for the bank only is simply because
of easy access upon their reliable data. The study will be based on secondary
provided by bank and other relevant sources. The data will be collected from
the balance sheet, profit and loss account, Nepal Rastra Bank and informal
Data are considered as an internal part of research. In order to make the study
more reliable and coherent secondary sources have been applied here while
collecting data, facts and statistics. In this study secondary data are collected
from different sources i.e. annual report of respective bank, some related
3.5 Instruments
To fullfill the objectives of the project report, the researcher has used tables
All the collected data are tabulated and presented in the figures. For this
3.7.1 Financial Tools:- Financial analysis tools are one of the most efficient
ways that can be used for ensuring good profit from your investments. These
financial tools are highly helpful in evaluating the market and investing in a
way so as to maximize the profit from the investments made. This financial
tools useful for deciphering both internal and external information related to a
This ratio shows the relationship between total deposit and current deposit. It
calculated as follows.
Current Deposit
Current Deposit=
Total Deposit
This ratio shows the relationship between current deposit and fixed deposit.
calculated as follows.
Current Deposit
CDFD Ratio=
¿ Deposit
This ratio shows the relationship between current deposit to saving deposit. It
calculated as follows.
Current Deposit
CDSD Ratio=
Saving Deposit
This ratio shows the relationship between current deposits to call deposit. It
as follows.
Current Deposit
CDCD Ratio=
Call Deposit
3.7 Limitations
https://en.wikipedia.org/wiki/deposit_account.
CHAPTER-IV
RESULTS AND FINDING
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This chapter deals with presentation of data, analyzing of data and findings of
this calculated data. This data are collected from an annual report of Sanima
The capacity of the banks to earn profit depends on the volume of deposits
and the deposit max the have. In nepal, banks offer different type of depposits
account to their customers. These deposits can vary from one bank to other.
Current Deposi
Saving Deposit
Fixed Deposit
Call Deposit
Source: Appendice I
In the year 2011/2012 the CD was 3.3395 % which was increased and reached
at 3.60545 % in year 2012/2013. After the fiscal year 2012/2013 the CD was
decreased and falls to 2.9685 % and then increased at 5.4971 % and decreased
FD was 48.8848 % and 66.7583% in the year 2011/2012 and 2012/2013. After
In fiscal year 2011 the SD was 31.86 % which was highly decreased and fall
to 3.1144 %. After the fiscal year 2012/2013 SD was increased at 32.5291 % and
CAD in fiscal year 2011/2012 was 15.91 % and 26.5219 % in fiscal year
2012/2013. After fisacl year 2012/2013 the CAD was decreased in 26.1504%,
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respectively.
CDTD Ratio shows the relationship between total deposit and current deposit.
calculated as follows.
Current Deposit
CDTD Ratio=
Total Deposit
CDFD Ratio shows the relationship between current deposit and fixed deposit.
calculated as follows.
Current Deposit
CDFD Ratio=
¿ Deposit
In the year 2011/2012 the ratio was 3.34 % in the year 2012/2013 the ratio
was increased and reached at 3.615 % but in the year 2013/2014 it is decreased
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and falls at 2.97 %. In the year 2013/2014 the ratio was 5.50 % and after that
the ratio was decreased and falls to at 5.31% in the year 2015/2016. Total
decreasing condition.The above given data shows that the CDFD ratio was
ratio was highly decreased and falls at 1.32 % and year 2014/2015 was highly
14.00%
12.00%
10.00%
8.00%
CDTD Ratio
CDFD Ratio
6.00%
4.00%
2.00%
0.00%
2011/012 2012/013 2013/014 2014/015 2015/016
F/Y 2013/014, 5.50% covered by F/Y 2014/015 and 5.31% covered by F/Y
2015/016. The highest CDTD Ratio is 5.50% in F/Y2014/015 and the lowest
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CDSD Ratio shows the relationship between current deposit to saving deposit.
It shows that what percentage of current deposit is of saving deposit. It is
calculated as follows.
Current Deposit
CDSD Ratio=
Saving Deposit
CDCD Ratio shows the relationship between current deposits to call deposit. It
as follows.
Current Deposit
CDCD Ratio=
Call Deposit
In the year 2011/2012 the ratio of CDSD was 10.48 % but in the year
In the year 2011/2012 the ratio of CDCD WAS 20.99 % but in the year
2013/2014 but in the year 2014/2015 the ratio is increased 23.65 % and then
120.00%
100.00%
80.00%
CDSD Ratio
60.00% CDCD Ratio
40.00%
20.00%
0.00%
2011/012 2012/013 2013/014 2014/015 2015/016
F/Y 2015/016. The highest CDSD Ratio is 115.76% in F/Y2012/013 and the
lowest CDSD Ratio is 9.13 in F/Y 2013/014 . Similarly we get conclusion that
and 20.20% covered by F/Y 2015/016. The highest CDTD Ratio is 23.65% in
F/Y 2015/016 and the lowest CDFD Ratio is 11.35% in F/Y 2013/014.
bank CDTD ratio was 3.33%, 3.61%, 2.97%, 5.50% and 5.31%
bank CDFD ratio was 6.83%, 5.40%, 7.74%, 1.32% and 12.93%
respectively. This shows the bank CDFD ratio was decreased in year
2012/013 and 2014/015. This CDFD ratio positionn is not good for
this bank but the bank try to increased the fixed deposit category.
19.38% respectively. This position shows that the bank CDSD ratio
20.20% respectively. This condition shows that the bank was gone
CHAPTER-V
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5.1 Discussions
Current Deposit to Total Deposit Ratio increasing over the last five years
period of Sanima Bank. Increasing bank CDTD ratio shows that the bank’s
ability is increased to attract the people. Table-2 shows that the bank CDTD
ratio was increasing positionn in year 2011/012 and 2012/013 i.e. 3.33% and
3.61% and then year 2013/014 the bank CDTD ratio was decreased at 2.97%
and thereafter the bank CDTD ratio was increased at 5.50% and 5.31%. When
the bank CDTD ratio increased this means that the bank positionn is good. If
the bank CDTD ratio was decreased it affect the banking positionn in the
market. In this positionn the bank CDTD ratio is good for the bank. But CDFD
ratio of the bank is not good which presents the table-3 .Bank CDFD ratio
2011/012 but decreased at 2.97% in year 2013/014. After the year 2013/14 the
bank CDFD was increased at 5.50% and 5.31% which show that CDFD ratio
increased the fixed deposit the bank CDFD ratio was increased and helps to
maintain the bank positionn in the market. If the bank cannot success to
increased its fixed deposit it affect the bank CDFD ratio and affect the bank
current positionn. Table- 4 show the bank CDSD ratio i.e. 10.48%, 115.76%,
9.13%, 15.92% and 19.38%. This bank CDSD ratio is fluctuate. It means
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highly increased and decreased. In year 2012/013 the bank CDSD ratio was
highly increased compared to other period CDSD ratio. This ratio shows that
the bank gone to developed the all around in world. Table-5 shows the bank
CDCD ratio. The CDSD ratio of the bank was 20.99%, 13.59%, 11.35%
23.65% and 20.20%. This position of ratio is not good for the bank because
the bank CDCD ratio was decreaing in 2nd and 3rd poistion and then increased
and at last the bank CDCD ratio was decreased. It means the bank growing
CDCD ratio is not equally increased or decreased. CDCD ratio shows that the
CDTD Ratio increasing over the last five year 2011/012 to 2015/016. CDFD
Ratio is fluctuated over the last five year period. CDFD Ratio increasing and
compared to previous year. CDSD Ratio and CDCD Ratio are highly increasing
and decreasing condition over the last five year period. This shows that the
3,060,288,000. Sanima Bank has opened up various branches in all major cities
of the country and it has been successful in its branch expansion program. All
the branches have been located in proper location and have provided its
customers with various services. It has well trained staff. Sanima bank has
loans own export and import to fulfill the increasing needs of trade, industry
and commerce. It also given credit facility at low rate of interest to trade,
Sanima Bank Limited is committed to its best service for the satisfaction of its
saying we can say that no bank perform and operates successful as through
there may be some weak point of Sanima Bank Limited too. The following
i. The Sanima Bank should try to open more branches in inner tarai
ii. The Sanima Bank should try to provide training facilities to its staff.
iii. Sanima Bank should introduce and implement new schemes and
iv. Sanima Bank should determine its cash holding structure to its
operational needs.
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Finally this report is helpful to the other researcher to gain knowledge about
the Sanima Bank’s CDTD Ratio, CDFD Ratio, CDSD Ratio and CDCD Ratio.
It also help researcher to develop his/her skills in reserach, survey and report
writing. This study provides sufficient information to the other researcher about
REFERENCES
https://www.sanimbankltd.com.np/
http://www.investopedia.com/
Shrestha, M.K., Joshi, P.R. and Bhandari, D.B. (2013). Thapa, R.B. (2010).