CHAPTER: I

INTRODUCTION

1.1 Background of Study

The word “Bank” has derived from Italian word “Banco” which means accumulation
of money of stock. It is believed that its origin is from the French word “Banque”
which means Beach” for keeping, lending and exchanging of money or coin in the
market place by money lenders or money changers. It is believed that the ancestors of
modern banking system were merchants, goldsmiths and moneylenders. Modern
banking sowed its seed in the medieval Italy despite strong Christian prohibitions
against charging interest.

The bank had started in Italy in 12 th century as a public bank. The Bank of Venice that
was established in 1158 A.D. was the first bank in the history of banking. Following
its establishment various banks such as Bank of Barcelona, was established in 1407.
Bank of Amsterdam 1609, Bank of Hindustan 1770 were established. The first central
bank was theaw33 “Bank of England” which was established in 1844 A.D.

Review of literature

A literature review is a comprehensive summary of previous research on a topic. The

literature review surveys scholarly articles, books, and other sources relevant to
particular area of research. The review should enumerate, describe, summarize,
objectively evaluate and clarify this previous research. The main focus of an academic
research paper is to develop a new argument and research paper is likely to contain a
literature review as one of its parts. In research paper, use the literature as a
foundation and as support for a new include that has contribute. The focus of
literature review however, is to summarize and synthesis the arguments and ideas of
other without adding new contributions.
karmacharya (1998), In this thesis paper, "A study on the deposit mobilization by the
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Nepal bank ltd." During eight years study period has concluded that the utilization
side of Nepal bank ltd has been weak as compare to the collection of resources. He
has mentioned that the bank has successfully mentioned its liquid assets position but

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couldn’t mobilize its resources efficiently. So, in this chapter the emphasis is given to
review of major relevant literature on the deposit liabilities and their analysis.
Different definition or opinion expressed by experts in respect of deposit mobilization
are considered to be relevant for the proposed study. Similarly this chapter also sheds
light on some of the rules and regulations prescribes by the central bank regarding the
commercial banks deposits liabilities and their mobilization aspects. This chapter is
basically concerned with review of literature relevant to the topic "A study of deposit
analysis of Nabil bank ltd." every study is very much based on past knowledge. The
previous studies can not be ignored because the provide the foundation to the present
study. In other words, there has to be continuity in research. This continuity on
research is ensured by linking the present study with the past studies.

History of Nepal Banking

In the context of Nepal, like as in the other countries the goldsmith and landlords was
the ancient banker. The Nepalese people where highly exploited by ‘Sahu Mahajan’
by charging higher interest rate, compound interest rate and even by manipulating the
principal amount. The introducing of ‘Tejarath Adda’ during the tenure of the Prime
Minister Ranoddip Singh (1993 B.S.) was the first step towards the institutional
development of banking in Nepal. The first commercial bank ‘Nepal Bank Limited’
was established on realization of central bank to develop monetary policy as well as to
have proper established on 14th Baishak 2014 B.S. under Nepal Rastra Bank Act 2012
B.S. Likewise, Rastra Banijya Bank under the full ownership of government was
established on Magh 2022 as per “Rastra Banijya Bank Act 2012 B.S.” The growths
of the banks accelerated only after the adoption of liberal economic policy by
Nepalese Government. This has attracted many new investors and encourages
opening many new modern banks with joint venture of foreign banks. Nepal Arab
Bank was established on 29th Ashad 2041 B.S. as the first modern bank with the joint
venture of Dubai Bank Limited. U.A.E. subsequently following its established Nepal
Indo Suez Bank France, Nepal Grinlands Bank England on 16 th Marg 2043 B.S. with
its joint venture of Grinlands Bank England, Himalayan Bank Limited on 5 th Marg
2049 B.S. with the joint venture of Habib Bank of Pakistan, Nabil Bank Ltd.in28 th
Ashad 2050 B.S. with joint venture of State Bank of India Nepal Bangladesh Bank
Ltd. On 28th Jestha, 2050 B.S. with the joint venture of International Finance

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Investment and Commercial Bank, Everest Bank Ltd. On 1 st Kartik 2051 B.S. with
joint venture of Punjab National Bank Ltd of Kathmandu on 28 th Falgun 2051 B.S.
with joint venture of the Siam Commercial Bank, Thailand.

Now, there are 27 commercial bank with 483 bank branches and 318 rural branches
along with 45 financial companies and 5 Rural Development Banks.

1.2 Profile of NABIL Bank

Nabil Bank Limited (Nabil) commenced its operation on 12 th July, 1984 as the first
joint venture bank in Nepal, Dubai Bank Ltd. Dubai (Later acquired by Emirates
Bank International Ltd, Dubai) was the first joint venture partner of Nabil. Currently
NB (international) Ltd. Ireland is the foreign partner.

Nabil Bank Ltd had the official name Nepal Arab Bank Ltd till 31st Dec 2001. Nabil
is the pioneer in introducing maims innovative products and marketing concept in
banking sector of Nepal with 15 branches and 2 countries in all major cities. It is the
only bank having its presence at Tribhuwan International Airport of the country. Also,
the number of outlets in the country is the highest among the joint venture and private
banks operating in Nepal.

Success of Nabil is a milestone in the banking history of Nepal as it paved the way for
the establishment of many commercial banks and financial institutions. Nabil
provides a full range of commercial banking services through its outlets spread across
the nation and reputed correspondent bank across the globe. Moreover, Nabil has a
good name in the market for its highly personalize services to the customers.

1.3 Statement of problems

The specific statement of the problem is:

In order to attract sufficient number of depositors who deposit in related i.e. from the
viewpoint of quantity and quality the bank should analyze their deposit position. The
above quantity and quality means that the depositors should be attracted to deposit

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more volume of cash not just more number of depositors with small amount of cash

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balance. The quantity and quality of depositors should be taken in consideration with
implementing cash collection policy.

As we know that the main objective of commercial bank i.e. profit maximization is
obtained by deposit position mobilization of resources they have. But if the bank fails
to collect adequate deposits then it loses profitable opportunities and hence fails to
generate profit.If the bank is not able to collect sufficient deposits it must make some
permanent change in its policies otherwise it will raise the question of its survival as a
viable institution in this highly competitive environment of commercial sector.
As we know that the main objective of any business organization e.g. Bank is profit
maximization. Deposit mobilization is the key factor to attain this objective: therefore,
if the bank fails to employee its funds suitably it is not possible to maximize profit.A
bank has to make decisions with a frame work of statutory requirements of credit
regulation by center bank, as well as the national objectives that are determine in the
matter of the provision of credit from time to time.

Background of the Subject (Deposits)

Commercial banks play very important role in mobilizing the resources in any
developing country by removing the habit of hoarding developing the banking habit
among the people, collecting the small scattered resources in one bulk and utilizing
them in further productive purpose and rendering other valuable services to the
country.

The main function of the banks is to accept money spread in the general public as
deposit and utilize the collected resources properly. General public deposit their
savings for safety and they also get interest in advancement. Deposit, is the savings of
people or even of industrialists, which is not required for them in the very moment,
which is accepted by banks and later on they get interest.

Deposit accounts are also one of the important sources of bank’s funds. In order to
attract customers, the bank offers attractive facilities to different types of deposit
account holders. In order to avoid miniature expenses of our daily life among society,

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bank has been providing sound interests because of the bank global competition and
they need deposit like raw materials in production process.

Banks are providing different types of deposit account to the general public taking
consideration of their different financial status. Here are some deposit accounts
(concerned with my study) listed below
a) Saving Deposit Account

b) Current Deposit Account

c) Fixed Deposit Account

d) Other Deposit Account

1.4 Objectives of the Study

The main purpose of this study is to find out the financial position of Nabil Bank Ltd
in resources collection and mobilizing. The objectives of the study are as follows:
1. To analyze the deposit position of Nabil Bank Ltd.

2. To find out changing position of deposit collection along with the interest rates in
last five years period.
3. To find out the effectiveness of resources mobilization of the banks in the five
years period.

1.5 Rationale/Significance of the study

Generally, the study gives emphasis on the welfare of students while preparing
fieldwork report; they gain knowledge through their own experience enabling them to
deal with problems relating to their studies. 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 consider to be more important in the case of term deposit although
the banker pay interest longer the period higher the interest.
 To find out the position of Nabil Bank

 To find out the strength and weakness of Nabil Bank

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 To find out the marketing style and public relation of the bank.

1.6 Significant of the Study

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Among the various features provided by commercial banks, fixed deposit is
considered as a vital area of banking operation. As we know current deposit cannot be
utilized to make medium term and long term investment due to their uncertainty of
quality and time of withdrawal.
Fixed deposit is considered to be suitable for longtern investment because cash in this
type of deposit is held for longer time with high interest rate but can be invested in
long term loan returning higher interest rate and hence it helps to generate high profit.
Fixed deposits also can be used in long-tem investment due to cash maintained by
depositors- And fixed deposits have to be paid higher interest rate and are only
profitable in long-term investment .So, most suitable for medium and long-term
investment is fixed deposit due to high interest for time high interest rates for more
time holders, which are fixed. So, these can be investment in long-term loans
returning higher interest rates and long-term investment.

Conceptual Framework

The modern financial evaluation has greatly affected the Profitability ratio of banks’.
Nowadays, finance is best characterized as ever changing with new ideas and
techniques. Only efficient manager of the company can achieve the set up goals. If a
bank does not maintain adequate equity capital, it makes the bank more risky. If a
bank has inadequate equity capital, it must be used more debt that has high fixed cost.
So any firm must have adequate equity capital in their capital structure. The main
objectives of the bank are to collect deposits as much as possible from the customers
and to mobilize into the most profitable sector. If a bank fails to utilize its collected
resources than it cannot generate revenue. Resource mobilization management of
bank includes resource collection, investment portfolio, loans and advances, working
capital, fixed assets management etc. It measures the extent to which bank is
successful to utilize its resources. To measure the bank profitability in many aspects,
we should analyze its indicator with the help of financial statements. Profitability ratio
is the process of identifying the financial strength and weakness of the concerned
bank. It is the process of finding strength and weakness of the concerned bank.

Population and Sample

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Among 27 commercial banks, Nabil Bank Limited have been selected for the present
study. Financial statements of latest 5 years (2016/17 to 2020/21) have been taken as
sample for the comparative analysis of profitable ratio. The recommendation and
suggestions, which are derived from the study by taking the above commercial banks
as samples, will be equally useful for the other commercial banks in Nepal.

Due to the pandemic we had to close our academic sector therefore I’m taking this
2017/21 year statement as an example.

1.6 Research Methodology

Methodology means a system of methods used in a particular area of a study.

Therefore, research methodology refers to a system of methods used in research
study. All the facts and figures are collected mostly from secondary sources from
different publication as well us unpublished figure at the bank. I frequently visited the
organization to collect information. I also got various information and data from
NABIL official website. Similarly I got guidelines and ideas from my teachers as
well.

Research Design

The study is an analytical case study of NABIL’s fixed deposits and analysis of
strength and weakness of deposit collection trend of NABIL. The researcher has
identified the places where required information and concerned data of the study
could be collected. The researcher choose loan department, of NABIL. For the
purpose of contacted interviewed several personnel’s and collect the information and
date available with them. Only the useful information and data have been studied and
analyzed carefully. Unnecessary information and data have been omitted to make the
report simple and straightly concerned with its objective.

a) Secondary Data

The data will be presented by means of tabular form and graphical form. Column and
Bar Diagrams, Pie chart and other as required.

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Tool and Techniques for Analysis of Data

The collected and observed data are tabulated after adjusting necessary amount of
each overhead. However, for the analysis of the data, the following tools are used:

Trend Analysis

Trend Analysis of the following will be done:

 Total Deposit Trend of NABIL

 Deposit Mix of NABIL

 Fixed Deposit of NABIL

Financial Tools

The study will use following fixed deposit ratio for analysis:

1. Fixed Deposit-Total Deposit Ratio

2. Foreign Currency Fixed Deposit –Fixed Deposit Ratio

3. Fixed Deposit-Total Interest Bearing Deposit Ratio

4. NRB Balance- Fixed Deposit Ratio

5. Balance with Banks- Fixed Deposit Ratio

6. Investment- Fixed Deposit Ratio

Statistical Tools

Statistical Tools used to examine data of NABIL are:

1. Karl Pearson’s Correlation Coefficient

2. Time Series Analysis of Fixed Deposit (Least Square Method)

Apart from this SWOT analysis will as be conducted to see strength, weakness,
opportunities, and threats of the bank.

Importance of Study

The important of study are explained under:

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The students can have clear view of establishment and working of the concerned
bank thereby broadening the banking knowledge.
1. The BBS level would remain incomplete without this study.

2. This document can keep as valuable asset in the library.

3. This report can be a source of secondary data for researchers

4. It helps to increase the deposit of bank.

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5. The Report emphasis to invest in the current demanding sector.

6. This report helps to remove the internal problem of bank.

1.7 Limitation of the Study

This study is conducted in partial fulfillment of the requirement for the BBS 4th year.
So, it possesses some limitation of its own. One of the limitations of the study is; with
regard to tempera coverage of the study to arrive any meaningful conclusions
regarding the trend in the pattern and structure of financing a time service of fairly a
long period are needed. But the study does not present details in NABIL due to lack
of data and resources. This study is limited to the information that was available from
the bank and other sources. Other limitations are as follows:
 Though there are 27 commercial banks, this study covers only one NABIL Bank
Ltd.
 Being a student time and resources consentient

 Limited variable has been selected.

 Simple techniques has been used in analysis

 The qualitative factors such as growth and expansions policy of the bank quality
and general economic conditions have not been studied.

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CHAPTER: II
RESULT AND FINDING

2.1 Data Presentation

Nabil Bank Ltd, being one of the financial intermediaries, have played vital role in
mobilizing and utilizing saving to the investment. Deposits are the main source of
resources to meet the growing demand of financial assistance. The existence of
commercial banks basically depends upon the mobilization of deposit. The
commercial banks may function only when they have adequate deposit.

2.1.1 Deposit Position of Nabil Bank Ltd.

Deposits are the main components of liabilities side of the bank are the main source of
raising capital. ‘Only those deposit which are received in the form of cash or in that of
the rights of receive cash add to the working capital of he bank”. Hence deposit may
be created either by customers or by bank itself. It is created by the banks when the
bank credits customers account in the form of loams. Higher the volume of deposit,
higher will be the volume of lending and investment, which again generals higher
volume of income.

Table No. 2.1.1

Deposit Position of Nabil Bank Ltd (Rs. In “000”)

Year 2016/17 2017/18 2018/19 2019/20 2020/21

Current 1086697 1300071 1672676 1773544 1408297

deposit
Saving 1274695 1633028 2043022 2458000 2832639

deposit
Fixed 3132677 3337757 3352270 4086358 6116172

deposit
Other 5206 6456 13305 9579 Not

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 mentioned
Total 5572470 6522816 7198327 8328281 10357108
(Source: annual report )

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Figure no. 2.1.1

(Source: table no 2.1.1 )

The table no. 2.1.1 and figure no. 2.1.1 shows that the deposit trend of Nabil Bank
Ltd. Accounting to table in fiscal year 2017, fixed deposit was Rs. 3132677.Total
deposit was Rs. 6522816 increasing by RS. 950346. Similarly in 2018/19, total
deposit was Rs. 7198327, in 2018, total deposit was Rs. 8328281 increasing by Rs.
1129954 and in 2016, the total deposit was 10357108 which is greater than previous
year by 13.57% in the whole deposit.

2.1.2 Fixed Deposit Account

under the commercial bank act 2031:Fixed account means an account of amounts
deposit in a bank for certain period of time. The customers opening such account
deposit their money in this account, for fixed deposit, In the other words, its called
time deposit because this account is deposit for a certain period.
usually, only the person or institution who wants to a gain more interest opens such
type of account. the period of time be 3 month, 6 month, 9 month, 1 year, 2 year, 3
years, 4 years and 5 years etc. more interest is payable in this deposit than other
deposit. Both parties the bank and customers can take benefit from this deposit. The
bank invest this money on the productive sectors and gain profit. The customers too
can be made his financial transactions stronger by getting more interest form this

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deposit. The amount in saving deposit must be return to the customers after date is
expires. The amount cannot be withdrawn before the fixed time.

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Table No. 2.1.2

Amount of Fixed Deposit of Nabil Bank ltd. (in '000')

YEAR Fixed Deposit Change In deposit % change

2016/17 3132677 198203 6.33%
2017/18 3337757 205080 6.14%

2018/19 3352270 14513 0.43%

2019/20 4086358 734088 17.96%
2020/21 6116172 2029814 33.19%

(Source: annual report )

In the above table shows fixed deposit amount of Nabil bank ltd, on the period of
2016/17 to 2020/21 during the period of time the deposit of bank has been increasing
trend but fiscal year 2018/19 has decrease of fixed deposit in various reason like
covid19 effect so that in this year the deposit of bank balance has decreased

Figure: 2.1.2

7000000

6000000

5000000

4000000
107000 fixed deposit
3000000 change in deposit

2000000

1000000

0
2016/17 2017/18 2018/19 2019/20 2020/21

(Source: table no 2.1.2 )

2.1.3 Fixed Deposit to Total Deposit

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A fixed deposit, also known as an FD. fixed deposit is a financial instrument provided
by bank which provides investors higher rate of interest than a regular saving account,
until the given maturity date. Total deposit means the sum of total time deposit plus
the total mark to market valuation plus total other deposits.

Fixed deposit to Total deposits Ratio= Fixed deposit/ Total deposit

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Table No: 2.1.3

Table Fixed deposit to Total deposit Ratio of Nabil bank (in '000')

Year Fixed deposit Total deposit Ratio of fixed/total

2016/17 3132677 5572470 56.22
2017/18 3337757 6522816 51.17
2018/19 3552270 7198327 49.35
2019/20 4086358 8328281 49.06
2020/21 6116172 10357108 59.05
(Source: annual report )

Figure No:2.1.3

12000000

10000000

8000000
total deposit
6000000
fixed deposit
4000000

2000000

0
2016/17 2017/18 2018/19 2019/20 2020/21

(Source: table no 2.1.3 )

The table No. 2.1.3 and Figure No. 2.1.3 shows that the total deposit and fixed deposit
of Nabil bank limited. according to the table fiscal year 2016/17 fixed deposit to total
deposit ratio has 56.22% and continually 3 fiscal years fixed deposit has decrease
trend but last fiscal year in 2020/21 has been increased of fixed deposit to total
deposit ratio.

2.1.4 Current Deposit Account

Current account is also known as demand deposit. Under this, any amount may be
deposited in the account. There are no restrictions regarding the number of

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withdrawals or the amount of the withdrawals. The bank does not pay any interest on
such accounts and the depositors are required to leave a minimum balance as per bank
rule. Traders and businessmen keep their money with the bank under current
accounts.

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Below is giving the table and the changing pattern of current deposit of Nabil Bank
Ltd.

Table no.2.1.4

Amount deposited in current account of Nabil Bank ltd

YEAR Deposit Change In deposit % change

2016/17 1086697 (1273296) (53.95%)

2017/18 1300071 213375 19.64%

2018/19 1671676 372605 28.66%

2019/20 1773544 100868 6.03%

2020/21 1408297 (365247) (20.60%)

(Source: annual report )

The table no. 2.1.4 shows amount deposited in current account of Nabil Bank Ltd.
According to table in 2016, deposit was Rs. 1086697 but in 2017, deposit was Rs.
1300071, current deposit was increased by Rs. 213375 or rates of 19.645%. Similarly,
in 2018.current deposit was Rs. 1300071, which was increased by RS. 372605 or rates
28.66% higher than previous year’s current deposit. Similarly in 2019, current deposit
is Rs. 1672676 which is higher than previous year by Rs.100868 with 6.03.
Figure no. 2.1.4

Amount deposited in current account of Nabil Bank Ltd

(Source: table no 2.1.4 )

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2.1.5 Saving deposit account

Saving deposit is one of the deposits collected from small depositors and low income
depositors. The bank usually pays small interest to the depositors against their deposit.
The depositors are allowed to withdraw their money by cheques to the amount
prescribed by bank. This account is called saving account. At present, NabilBank Ltd.
Has fixed 4.75% per annum rates of interest in saving account. The depositor must
have minimum balance of RS. 5000 in Nabil Bank Ltd. Below is given the table and
the changing pattern of saving deposit of Nabil Bank Ltd.

Table no 2.1.5

Amount deposited in saving account of Nabil Bank Ltd.

Year Deposit Change in deposit % change

2016/17 1274693 214550 20.23%
2017/18 1633028 358333 28.11%
2018/19 2043022 409994 25.10%
2019/20 2458800 415778 20.35%
2020/21 2832639 373839 15.20%
(Source: annual report )

The table no. 2.1.5 shows amount deposit in saving account of Nepal HBI Bank Ltd.
According to table, in 2016 deposit was Rs. 214550 but in 2017 deposit was Rs.
1633028, saving deposit was increased by RS. 358333 or rates of 28.11% similarly in
2018 saving deposit were RS. 2043022, which were increased by Rs. 409994 or rates
of 25.10% more than precious year are saving deposit. Similarly in 2019 saving
deposit was RS 2458800, which increased by Rs 415778 or rates of 20.35% more than
precious year’s saving deposit. Likewise in 2020, saving deposit was RS 2832639,
which increased by Rs. 373839 or rates of 15.20%.

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Figure no.2.1.5

Amount deposited in saving account of Nabil Bank Ltd.

(Source: table no 2.1.5 )

2.1.6Fixed deposit account

A fixed deposit is one where a customer is required to keep a fixed amount with bank
for a specific period. The bank pays a higher interest on such deposit. In times of
emergency, customers are permitted to borrow money on the security of his fixed
deposit. Since the bank is aware of the repayment date of such fixed deposit, the bank
is free to make use of this money for granting loans and advances.

Interest rates on fixed deposit of Nabil Bank Ltd.

Period of deposit Interest rate %

14 day –less than 1 month 2.5
1month –less than 3 month 3.0
3 months –less than 6 months 4.5
6 months –less than 1year 5.75
1 year –less than 2 year 8.51
2 year –less than 3 year 10.05
3 year and above 11.05
(Source: annual report )

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Given below is the table showing the changing pattern of fixed deposit of Nabil Bank
Ltd.

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Table no 2.1.6

Amount deposited in fixed account of Nabil Bank Ltd.

Year Deposit Change in deposit % change

2016/17 3132677 203327 6.94
2017/18 3337575 204898 6.54
2018/19 3352270 14695 0.44
2019/20 4086358 734088 17.96
2020/21 6116172 2029822 49.67
(Source: annual report )

The given table shows amount deposited in fixed account of Nabil Bank Ltd.
According to table in 2016/72 deposit was RS. 3132677 but in 2017/73 deposit was
RS 3337575, fixed deposit was increased by Rs. 204898 or rates of 6.54%. Similarly
in 2018/19 fixed deposit was Rs. 3352270, which was increased y RS 14695 or rates
of 0.44% with the comparison of previous year. Similarly in 2019/20.
Figure no. 2.1.6

Amount deposited fixed account of Nabil Bank Ltd.

(Source: table no 2.1.6 )

2.1.7 Other deposit account

Changing pattern of other deposit of Nabil Bank Ltd.

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Table no.2.1.7

Amount deposit in other deposit account of Nabil Bank Ltd

Year Deposit Change in deposit % change

2016/17 5206 (1143) (18.00)
2017/18 6456 1250 24.01
2018/19 13305 6849 106.08
2019/20 9579 (3726) (28)
2020/21 9809 5641 96.36
(Source: annual report )

The given table shows amount deposited in other deposit account of Nabil Bank Ltd.
According to table in 2017/72 deposit were 5206 but in 2017/73deposits was Rs.
6456, increased by Rs. 1250 or rates 24.01%. Similarly in 2018/19 deposit was Rs
13305, which increased by Rs.6849 or rates of 106.08% with the comparison of
previous year. Similarly in 2019/20deposit was Rs9579 m .

Figure no 2.1.7

Amount deposited other deposit account of Nabil Bank Ltd

(Source: table no 2.1.7 )

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The figure shows the other deposit account of Nabil bank ltd. In 2016/17 deposit of
nabil bank has lower deposit of other yerars like wise in 2017/18 and 2018/19 other
deposit are incresing ternd but 2019/20 has going down of deposit and finally in
2020/21 again incerese the deposit of other deposit account of Nabil bank.

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2.2 Major Findings

 Nabil Bank Ltd. According to table in 2016/17, deposit was Rs. 1086697 but
in 2017/18, deposit was Rs. 1300071, current deposit was increased by Rs.
213375 or rates of 19.645%. Similarly, in 2020 current deposit was Rs.
1300071.
 The given table shows amount deposit in saving account of Nabil Bank Ltd.
According to table, in 2018/19 deposit was Rs. 214550 but in 2019/20 deposit
was Rs. 1633028, saving deposit was increased by RS. 358333 or rates of
28.11% similarly in 2020/21 saving deposit were RS. 2043022,
 The given table shows amount deposited in fixed account of Nabil Bank Ltd.
According to table in 2019/20 deposit was RS. 3132677 but in 2020/21
deposit was RS 3337575, fixed deposit was increased by Rs. 204898 or rates
of 6.54%. Similarly in 2068fixed deposit was Rs. 3352270,
 Nabil Bank Ltd. According to table in 2020/21 deposit were 5206 but in 2021
deposits was Rs. 6456, increased by Rs. 1250 or rates 24.01%.

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CHAPTER-III
SUMMARY AND CONCLUSION

3.1 Summary

Commercial banks are major financial institutions playing vital role in economic
development of country. Nabil Bank Ltd, one of the leading banks in country, is
providing banking facilities, solving the commercial banking problems and is serving
its customers since its establishment in 2050 BS.
On the basis of analysis made above, the following recommendations are made which
are beneficial for Nabil Bank Ltd to implement.
Interest rates structure affects both deposit and loans & advances. There should be

1. less interest to the loan borrower and the time duration should be more according
to the financial condition of the borrower. Bank should be able to give people high
satisfaction, which encourages people to deposit their money as well as borrower.
2. Further, the bank must give attention to improve operation and to shorten its
procedure in its making period. Many problems are arrogated with respect
organization and management. So the bank should give first attention in this
respect. Otherwise, improvement measures may not be effectively used unless the
poor managing system isn’t improved.
3. Bank should manage to collect source of fund by attractive interest on deposit
prized for certain amount deposited and give many amore facilities to depositors.

Staffs are the assets of the bank. They should be motivated to increase their
incentives. The smooth running of the baking business depends upon their incentives
provided to the staffs. If the bank has not made provision for providing facilities t
them compared to other bank, they are frustrated and would not take interest in their
duties. So, the back should make some provision for the betterment of the staffs to run
its business. They may be in the form of bonus, allowances, promotion, training
program and other facilities, which are helpful to increase the staffs incentives and
rapidity of doing work.

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3.2 Conclusions

Banking competition is increasing these days in Nepal. So, Nabil Bank Ltd establishes
many branches in the country and it can provide effective banking services. The
deposits are the obligations of the commercial banks. So, these banks must allocate
the funds in different investment. The purpose of this study to know how far Nabil
Bank Ltd is to get the collection of deposit and what is the position of deposit. It is
increasing or decreasing in each year and also to know the role Nabil Bank Ltd is
providing its services to its customers.

According to the source Nabil Bank Ltd, the total deposits of 5 years period were as
follows. During the year 2016, total amount deposit was Rs. 5572470 including
current, saving fixed and other deposit. In the year 2021, it was Rs. 6522816. it had
increased by Rs. 950346. Similarly in the year 2019, the total deposit collected was
Rs. 7198327 and in the year 2021 the deposit was Rs. 8328281 which increased by
Rs. 1129956 with 15.70% for the whole deposit, including current, saving, fixed and
other deposit. Likewise, the total deposit for the year 2020 was Rs. 10357108, which
increased by 24.36% than previous year’s deposit. Though Nabil Bank Ltd, is profit
oriented, it is doing social beneficial activities as well such as smooth remittance
facility, ATM facilitates, easy banking etc.

From the foregoing discussions in preceding Chapters, following conclusion can be

derived. The major findings of this study which covers a period of 5 years 2064 to
2068 is that, the year 2066-2067 have been much efficient in the collection of deposit
(resources) from the people. The Trent of the Nabil Bank shows increasing position in
the deposit in the deposit. More customers are willing to deposit rather than invest.

According to the study, it is found that there is increase in the collection of deposit.
There is large amount of deposit with the Nabil Bank Ltd. The main sources of
investment of the bank are the collection of deposit. But the activities of the bank for
mobilizing deposit do not seem to be satisfactory. It has provided banking facilities to
the general public due to social services. The bank has taken further steps for the
collection of more deposit and granting loans to its borrowers for their different

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purpose. Finally, it is concluded that the deposit as well as loans & advances must
increase proportionately in order to maintain balance.

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BIBLIOGRAPHY

Copeland, T.E and Western, J. Fred, “Financial Theory and Corporate Policy”. CR,
Kothari, “Quantitative Technique”.
Dangol, R.M, (2066). “Accounting for Financial Analysis & Planning”, Taleju
Publication.
Gurung R. (2013). Financial Institutions and Markets.Kathmandu: Buddha Academic
Publication Enterprise Pvt.Ltd.
Gupta, S.P. “Statistical Method”. India.

NABIL Bank Limited (2020/21): Annual Report, Kathmandu: NABIL

Nepal Rastra Bank. (2013) Quarterly economic bulletin and annual report.

Kathmandu:NRB

Pradhan, R.S (2014). ”Management of Working Capital”, New Delhi, National Book
Organization,1986.
Thapa K, (2013). Financial Institutions and Markets.Kathmandu: Januka Publication
Pvt. Ltd.

Website of NRB: www.nrb.org.np

Website of HBL: www.nabil.com.np

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