A STUDY ON DEPOSIT ANALYSIS OF

NABIL BANK LIMITED

A Project Work Proposal

By

Anu Gurung

Triveni International College

T.U. Reged. No: 7-2-882-18-2019

Exam Roll No : 708820006

Submitted to

Research Committee

Faculty of Management

Triveni International College

Tribhuvan University

In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Pokhara

July,2024
 Table of Contents

Title Page

INTRODUCTION (1-7

1. Background of the study...............................................................................................3

2. Profile of the Organization...........................................................................................4
3. Objectives of the Study................................................................................................4
4. Rational of the study.....................................................................................................4
5. Statement of Problems..................................................................................................5
6. Methodology of the Research..........................................................................................6
6.1. Nature and Sources of Data..........................................................................................6
6.2. Population and Sampling..............................................................................................6
6.3. Method of Data Analysis..............................................................................................7
6.4. Data Processing and Analysis.......................................................................................7
7. Review of Literature........................................................................................................7
7.1 Conceptual Review........................................................................................................7
7.2. Review of Past Literature.............................................................................................8
8. Limitation of the Study....................................................................................................8
REFRENCE.........................................................................................................................9
 1

1. Background of the study

“BANK” is origin from word “BANQUE” which refers to the bench on which the banker
would keep its money record. Some believers it has been origin from French word
‘BENCA’ which means a beach for keeping leading and exchanging of money charges, A
bank is a financial institution that accepts deposits from public and creates credit. Bank
borrow money by accepting funds, deposits and by issuing debt securities such as
banknotes and bonds. Bank lends money by making advances to customers on current
accounts, by making installment loans, and by investing in marketable debt securities and
other form of money lending.

Banking system plays a very important role in the economics life of the nation. The
health of the economy is closely related to the soundness of its banking system. In a
developing country like Nepal the banking system as a whole plays a vital role in the
progress of economic development. Loan facility provided by bank as an incentive to the
producer to increase the production. First of all, banking promotes savings. All manner of
people, from the ordinary laborers and workers to the rich and owners and businessman
saving centers can keep their money as deposit safely in bank.

Commercial bank plays an important role in the economic development of the nation.
Hence, the performance of commercial banks can have a marked influence on the
development of an economy. Deposit analysis is one of the main feature and function of
commercial bank. A commercial bank receives deposit in different accounts namely
current, fixed and saving which are direct deposits. 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 owned by the bank to the customer.

Deposits are the most important aspects for the bank as well as financial institution. A
deposit account is savings account, current account or any other type of bank account that
allows money to be deposited 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 owned by the bank to the customer. Banks can affect
the money supply through demand deposit, or loans that the bank funds through cash
deposits it receives. By using interest rate to create their own profit, banker also creating
money to increasing the money supply in the economy. Thus, deposit analysis is the main
important tool for the financial and banking system.
 2. Profile of the Organization

Nabil Bank Limited is the nation’s first private sector bank, commencing its business
since July 1984. Nabil was incorporated with the objective of extending international
standard modern banking service to various sector of society. Pursuing its objective,
Nabil provide a full range of commercial banking service through its 93 points of
representation. Nabil, as a pioneer in introducing many innovative products and
marketing concepts in the domestic banking sectors represents a milestone in the banking
history of Nepal as it started an era of modern banking with customer satisfaction
measured as a focal objective while doing business. Operations of the bank including
day-to-day operations and risk management are managed by highly qualified and
experienced management team. Bank is fully equipped with modern technology which
includes international standard banking software that supports the E-channels and E-
transactions.

3. Objectives of the Study

The objective of this report is to analyze deposits collected and the interest given on
such collected deposits to the customers of Nabil Bank Limited. The study intends to
present a brief and clear picture of deposit and utilization. The objective of the study
includes;

 To find out the deposit trend of Nabil Bank Limited.

 To find out the deposit mix.
 To analyze the cost of deposit to analyze whether the deposit are
being properly utilized or not.
 To analyze the interest given on such deposits.
 To find out the various kinds of saving accounts scheme offered by
Nabil Bank Limited.
 To find out the interest rate given on various saving accounts.

4. Rational of the study

Deposit collection is the major function of all commercial banks, which helps to
carry out almost all transaction of the bank. Mostly among the various deposit
features provided by commercial banks, fixed and saving deposit are considered
to be more important. In the case of term deposit although the banker pay interest
 (longer the period higher the interest) the funds are committed for longer periods,
which can safely be lent for long-term project. But in the case of current deposits
although no interest is payable, these deposits are repayable at demand and
therefore banker must be cautious in lending such deposits. Fixed and saving
deposits are considered to be more suitable because the deposit can be invested in
shorts term loans with higher rate of return (interest) and hence it helps to earn
higher profits. So, the deposits in the commercial banks have a good contribution
to the country economy. If deposits are well collected and self mobilized the
person as well as country can benefit from it. This study however intends to give
general information regarding banking, deposits and prospects of the deposit and
its mobilization in the country, which may give the general ideas about banking
and deposits.

5. Statement of Problems

As we know that the main objective of any business organization is profit maximization.
Deposit mobilization is the key factor to attain this objective. Therefore, if the bank fails
to employ its funds suitably it is not possible to maximize profit. A bank has to make
decision with a framework of statutory requirements of credit regulation by central bank,
as well as the national objectives that are determined in the matter of provision of credit
from time to time. Through the banking system is making much progress, the progress
has been set up with problems and hindrances. Another pressing problems is developing
country, lack of banking habit in people. Majority of the people are still under the poverty
line. Many people are not literate, so people are not conscious about banking system and
do not know the importance of bank especially in rural areas. Bank concentrates only in
the city so that the villages have to take a loan from money lender at a high rate of
interest. Most of the people are keep their saving idle or give it to others touse it in greed
of more interest. For the study, the following research problems have been raised:

 Is the bank able to meet its target of saving deposit collection?

 Is the bank achieving its objective of benefit expansion through deposit
mobilization?
 Is the bank’s overall performance increased due to saving deposit?
 6. Methodology of the Research

The research methodology is the process of arriving to the solutions of problems through
planned and systematic dealing with the collection, analysis and interpretation of facts
and figures. This finally explains how data processed to meet the need and objective of
the study. This chapter explains the research methodology used in the study. It deals with
the types or data being collected and the types of sources that are being used for purpose
of data collection.

As the research entirely considers about “Deposit Analysis Of The Nabil Bank Limited”.
The main purpose of this study is to show deposits and its utilization in Nabil Bank
Limited with its financial positions, collection an uses of funds, its prospects, and its
position in context of Nepal as well as recommended suggestions for the improvement.
Those research methodologies have been used which proves helpful to deposit analysis.
For the purpose of achieving the objective, the following methodology is used. The data
has been collected by acquiring various kinds of reposts, bulletins and journals from the
organizations. Similarly, data has been acquired from Nepal Rastra Bank also.

The study report is based mostly on secondary information of Nabil Bank Limited. In
addition to this, reference has been made a library consult, class lectures, related books of
banking, financial management and accounting during the preparation of this study.

6.1. Nature and Sources of Data

The data that are used are secondary data. The data which are to be used will be collected
from different sources like websites of the bank, different books, journals, periodicals,
annual reports, previous research reports, other publication of bank related to deposit
utilization and profit maximization in banking sector.

6.2. Population and Sampling

The population refers to the organizing of the organization of the same nature on its
services and products. Altogether there are 158 banks running in Nepal. Out of which 1 is
central bank, 28 are commercial bank, 92 are developmental bank, 21 finance companies
and 17 are micro development banks. As per umbrella act, bank and financial institutions
can be classified as A, B, C and D classes on the basis of minimum paid of capital.
Accordingly, commercial banks are class A and they are labeled as banks. Similarly
developmental bank, finance company, co-operative are categorized into ‘B’, ‘C’ and ‘D’
class respectively. The umbrella act named as bank and financial act, 2063 has been
enacted effectively for the e proper and smooth operation of the banks (Nepal Rastra
Bank, 2072). The objective of the study is to find the total deposit of the Nabil Bank
Limited, I would like to select this bank because it is the commercial bank, earning high
profit and providing loan to the public with lower interest rate and gives effective interest
rate to the depositors. To organization, the population for the research works and
convenience sample method is used.

6.3. Method of Data Analysis

The financial as well as statistical tools are used for the analysis and interpretation of
financial data in this report. These tools can be to get the precise knowledge of business,
which in turn, are fruitful in exploring the strengths and weaknesses of the financial
policies.

6.4. Data Processing and Analysis

Most of the data are collected from the secondary sources. Some of the data are collected
through the discussion with the office staff and direct observation tasks. Moreover
practical approaches have been applied in collection the necessary data. The presentation
and analysis of the collected and managed data has been analyzed and interpreted through
analytical approaches. The overall presentation and analysis is in description form.

7. Review of Literature
7.1 Conceptual Review

“A bank is an establishment which trades in money, an establishment for deposit,

custody, and issue of money and also for granting loans and discounting bills and
facilitating transmission of remittances from one place to another.” Imperial Dictionary

“Deposit is a sum of money which is in a bank account or saving account, especially a

sum which will be left there for some time.” Collins Dictionary.
 7.2. Review of Past Literature

Prior to this study several researchers has found various studies regarding the deposit
utilization and analysis of various commercial banks. In this study only relevant subject
matters are reviewed which are as follows:

Pants S (2005) conducted “Deposit Analysis of NABIL Bank Ltd” and found that the
amount of deposit has increased by 25% in 2006 compared with 2001.

8. Limitation of the Study

Every study has its own limitation. There are some of the limitations which the researcher
may face while reaching to the conclusion.

 The study is concerned with only 5 fiscal year i.e. 2019/20 to 2023/24.
 The study heavily relies on secondary data.
 In research only few selection financial tools and technique are used.
 This report focuses only on saving scheme and saving deposit, overall
economic position of Nabil Bank Limited cannot be judged from this
report.
 The deep analysis could not be due to constraint.
 Finding may vary overtime because of the fluctuation in performance
the bank.
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http://www.nabilbank.com.np, July 2022

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