PART 1

INTRODUCTION

1.1 INTRODUCTION TO BANKING

It has been seen that the origin of banking was from the ancient time.
Although at that time the banking activities were not in systematic way but
banking activities used to hold from that time. It has been said that the lending
and borrowing are as old as money itself.

The word bank has been derived from the Italian word "banco". The word
banco means bench. As the different monetary transaction used to be held by
sitting-up in the bench, it has been named as banco. Macleod has defined the
word banco as the accumulation of money or stock. Bank in an organized form
was first introduced in Italy in 1157 A.D. The Bank of Barcelona, Spain was the
bank established in 1401 A.D. The first central bank was established in England,
in 1844 A.D. But at present stage the bank has passed through different stage. It
has been developing and modernizing its activities.

Bank can be briefly defined as the financial intermediary between the

depositor and credit seeker. The transaction can happen between the bank and
depositor only when the depositors deposit certain amount in the bank and the
bank has good relation with its customer. The Bank can make good relation with
its customer only when it will be able to payback the amount deposited by the
depositor at time. The intermediation takes place when bank accept deposit from
general public, corporate bodies and private organization and invest those
deposit for profitable purpose in form of loan and advances. The bank has
started providing much more facility to its customer such as remittance of
money, letter of credit, Bank guarantee, issue of money and many more.

According to Kinley, "Bank is an establishment which makes to individual

such advances of money or other means of payment as may be required &
safety made and to which individual entrust money or means of payment when
not required by them for use."

1
 According to Cambridge International Dictionary of English "An
organization where people and business can invest or borrower money changes
it to foreign money etc. or a building where these services are offered."
Thus, bank can be described as the custodian of savings of general people
and established as well. It could have been quite impossible for the
entrepreneurs to acquire the saving of general public for investment without the
establishment of the bank. So, bank can be best described as the financial
institution that accept deposit and provide the certain rate of interest and loan it
to the needy person, charging certain rate of interest and earn some profit in the
process of intermediation.

1.2 ORIGIN AND GROWTH OF BANK IN NEPAL

The lending or borrowing process of money used to be held even at
ancient time. The historical evidence shows the presence of some crude banking
practice in the earlier period of time. But in case of Nepal it has a very short
history. The development of bank in Nepal can be divided into two parts:
a) Traditional Banking
b) Modern Banking

a) Traditional Banking
Traditional Banking is related with the process of taking money with
private money lender and not with a registered institution. Previously the people
used to take money from the private money lender. Generally, people used to
take such loan for meeting daily expenses. The lender used to charge high
interest rate. In remote area till now there are different money lenders. There are
the sayings that in 780 B.S. King Guna kam Dev took loan from the money lender
and in B.S. 937 Shankadhar paid out the loan and started Nepal Sambat. In 14 th
century King Jaysthity Malla divided the people in 64 different casts. And
Tankdhari was also one of them. The main occupation of such cast people was to
deal with monetary transition. After this the Tejrath Adda was established in
government sector. They provide its services only to the civil servant to lower
rate of interest.

Private money lender following certain malpractice used to charge

unreasonable rate of interest that caused inconvenience and difficulty to the
people of country. The great need of a commercial bank was felt to eliminate

2
prevailing hindrances caused by private money lender to the general public. As a
result, the "Tejarath Adda" was replaced by modern commercial bank.

b) Modern Banking
As the banking transaction started to be in broad condition there felt the
need of modern banking system. So in 30th Kartik 1994 B.S the Nepal Bank Ltd.
was established which was the first commercial bank in Nepal. Since then, the
banking operation began to foster. After the establishment of NBL Ltd., Rastriya
Banijya Bank was established in 2013 B.S. Different joint venture banks also
started its operation in year 2041 B.S. Nepal Indosuez Bank Ltd. & Nepal
Grindlays Bank Ltd. was established in 2042 B.S. and 2043 B.S. respectively.
Himalayan Bank Ltd. was established with the joint venture with Habib Bank of
Pakistan. Nepal SBI bank followed Himalayan Bank in 2051 B.S. The three new
banks were opened in 2051 B.S., Nepal Bangladesh Bank Ltd., Everest Bank Ltd.,
and Bank of Kathmandu Ltd. Meanwhile there are 16 commercial banks in Nepal.

1.3 MEANING OF NEPAL BANK LTD

Nepal Bank Ltd. was the first commercial bank. The banking history in
Nepal began from 30th Kartik 1994 B.S. with the established of Nepal Bank Ltd.
Under the privilege support from His Majesty King Tribhuvan. NBL commenced
its operation of modern banking system by accepting and monitoring the saving
of people and granting appropriate loan and monitoring the saving of people and
granting appropriate credit facilities to people, hence removing the hindrance in
the economic development of the people of the country. NBL was established
with the establishment with 51% of share of government of Nepal and 49% was
issued to general public. The authorized capital of this bank was 10 million. The
bank initially started its banking operation with paid up capital of Rs 842
thousand of the issued price of Rs 2.5 million. NBL Ltd. has authorized capital of
Rs. 1000 million, issued capital of 500 million and paid up capital of 38.04 crore.
The present share percentage of Nepal Bank Ltd. is 40.49% of government and
59.51% of the general public.

1.4 EXPANSION OF NBL

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 As the main objective of commercial bank is to earn profit thus at the
beginning NBL was centralized in those areas where their business affairs took
place. NBL has opened its main branch in Kathmandu.
As different financial activities were held at this place, the first importance
was given to Kathmandu. NBL has its head office at New Road. Previously, as the
main export & import activities used to be held from Birjung it was quite
important to open branch office at Birjung so the first branch office was opened
there at B.S. 1998. And as different business activities of eastern side was used
to be done from Nepalgunj the most priority was given to it and at same year
another branch office of NBL was opened in Bhadrapur, Janakpur, Gaur and
Biratnagar. From the date of establishment of NBL within 5 years, 8 branch
offices were opened and had started its services. In fiscal year 1999 to 2011 the
more emphasis was given to the development of those banks. Till fiscal year
2046 the bank has got 234 branches at 67 district and the number of bank staff
reached to 8721. Later on a study report of CBPASS (Commercial Bank
Problem Analysis and Strategy Study) suggested that the non-performing
branches as well as excess staff should be removed. As a result NBL accepted
resignation of 800 staff and 15 branches were set collaborated. As a result NBL
has 212 branch office having 5500 staff employed. At present NBL has 7 branch
offices with fully computerized system and NBL is planning expand this number.

NBL is further planning to expand its sector and its services in different
sectors.

1.5 FUNCTIONS OF NBL

NBL is a commercial bank with an objective of earning maximum profit.
But it has also given priority to the economic development of the country. NBL
supply the financial need of the business by various means. Although the main
function of the bank is to earn maximum profit by providing different facilities to
needy people or organization to obtain the procedure benefit here are some
other main functions of NBL:
a) To deposit money in saving, current and fixed deposit.
b) To provide loan with or without considering legal procedure.
c) To invest money in education, business, and agriculture sector for
the economic development of country as it has certain responsibility
towards them.

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 d) To invest in government bonds and securities.
e) To act as an agent.
f) To act as bank of government.
g) To provide safe custody of valuable goods.
h) To issue letter of credit & credit instrument.
i) To finance in foreign trade.
j) To deal with foreign currency.
k) To act as a referee and provide accurate information to the people.

Apart from the banking function, the act empowers NBL to do insurance
and transport business. Further the main function of NBL that differ from other
commercial banks is that it is especially empowered by act to grant loan to
companies undertaking profitable business associated with agriculture, mining,
road, railways, ropeway and so on.

1.6 OBJECTIVES OF STUDY

The main objective of the study is to get entire knowledge of fixed deposit
and its chief feature in regards of NBL. The objective can be specified as follow: -
1. To analyze the share of fixed deposit out of total deposit of NBL.
2. To analyze the trend of fixed deposit in NBL.
3. To evaluate importance & utilization of fixed deposit account.
4. To know opening & closing procedure of fixed deposit.
5. To draw out different problems in fixed deposit management.

1.7 LIMITATIONS OF STUDY

The study is made in certain limitation they are as follows: -
a) This study concern only period of 6 years.
b) There are number of factors that affect the banking policy of NBL.
However only those factor, which are related with fixed deposit, is
considered in study.
c) Main focus is give only in the trend of fixed deposit of NBL.

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6
 PART 2
MEANING OF FIXED DEPOSIT

2.1 MEANING
Fixed deposit constitutes a very important role for the bank. The amount
deposited for the fixed period of time is fixed deposit. It is generally opened by
such person who doesn't need money frequently. And as the money is kept in
bank for certain period of time it is also called time deposit. As the money is
withdrawn by the customers only after the maturity of date, pass book and
cheque book are not given by the bank. Since bank can be certain about the
withdrawl period of deposit, the bank gets the opportunity to utilize that money
in productive sector so his amount of interest is provided. In Nepal the fixed
deposit can be opened for 15 days, 1 month, 3 month, 6 months & 1 year and
above. The bank provides interest from 4.00% to 9.5%. After the maturity time
the customer can renew or withdraw the money. But before opening fixed
deposit it is necessary to have saving or current deposit.

2.2 PROCEDURE OF OPENING FIXED ACCOUNT

For opening fixed deposit account it is not necessary to have the identity
of the person opening it. The person should only have to specify the amount to
the deposited. The maturity date and other important documents as enquired by
the bank must be provided. Here are some procedures of opening fixed deposit
they are: -
a) The applicant have to fill up the application form in which an applicant
should mention his name, address, the amount to be deposited and the time of
maturity and the citizenship should be clearly mentioned.
b) The applicant signature is very important for the bank. So, the
signature should also be done clearly.
c) After filling up the form the depositor have to deposit the desired
money in the counter enough the voucher prepared by the bank’s employee for
the fixed deposit account.
d) After completion of all the process, the fixed deposit section open fixed
deposit account in the name of applicant the bank provide receipt which is called
fixed deposit receipt. The fixed deposit receipt is not negotiable, so only the
person whose name is in receipt can take money after maturity.

7
 e) To open the account in minor's name, the guardian name, cast and
account number along with his/her own signature should be mentioned in the
form.
2.3 PROCEDURE OF CLOSING FIXED DEPOSIT ACCOUNT
The depositor may close the fixed deposit account after the maturity date.
Because of different reasons the depositor may also close the account before its
expiry date. So, for closing the fixed deposit earlier it is necessary for the bank to
give pre-information.
Thus the contract will be rescinded as well as the relationship between
bank and customer will come to and with completion of due date. After the
maturity date, the depositor may also renew his account if he doesn't want to
take the money. For this he has to fill up the application form and submit to the
bank.

2.4. CHARACTERISTICS OF FIXED DEPOSIT ACCOUNT

The fixed deposit has its certain characteristics, which are mentioned as
follow:
1. Fixed deposit account is opened for the fixed period of time. The
duration of the deposit period may be 7 days, 15 days, 1 month, 6
months, 9 months, 1 to 5 years or above.
2. Interest rate is provided according to the deposit period. Though the
fixed deposit can be opened for more than 5 years, the maximum
interest rate remains the same as that of 1 year.
3. The interest is awarded every 3 months.
4. The Fixed Deposit Account holder could not withdraw his deposit
without completing the deposit period. However, the Fixed Deposit
Receipt can be pledged for loan from the bank.
5. The Fixed Deposit Account can be renewed after expiry of the fixed
time.

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 PART 3
PRESENTATION AND ANALYSIS OF DATA

The most valuable and crucial tool to evaluate the true and actual position
of any organization is its past data. The strength and weakness of the
organization can be appraised from the proper analysis of data.
The part of the report focuses on presentation and analysis of data related
to the current deposit of NBL to obtain the objective of study.

3.1 TOTAL DEPOSIT

The deposit are said to be "life blood of the bank". The first and utmost
important thing to know is the total deposit trend in NBL. Total deposit refers to
the total deposit of the general public in various accounts during certain period
of time.
The following table shows the status of deposit of NBL during the financial
year from 2055-056 to 2059-060.

Table No. 1
Total Deposit of Nepal Bank Limited
(Rs. in million)
Fiscal Year Total Deposit Change in Total Deposit
Amount Percentage
2055-056 33092.6 - -
2056-057 35578.7 2486.1 7.51%
2057-058 35528.5 (50.2) (0.14)%
2058-059 34060.1 (1468.4) (4.13)%
2059-060 34737.4 677.3 1.99%
2060-061 36519.7 1782.3 5.13%
2061-062 35934.2 (585.5) (1.60)%
Source: NBL Head Office.

From the above table we can say that the increasing trend of total deposit
of NBL has been fluctuating in every fiscal year. In the fiscal year 2056-057 the
trend of total deposits increased by Rs. 2486.1. Likewise in 2057-58 the change
in total deposit is Rs. (50.2). Same as in 2058-059 the change in deposit is

9
(1468.4). And in 2059-060 the change in deposit is increase as 677.3.Likewise in
2060-061 changes in deposit increase by 1782.3, but in 2061-062 deposit is
decreased by 585.50. So the data above shows both the increasing as well as
decreasing rate. The variation in the total deposit may be because of the
inflation caused by the increased of money supply in the country, which result in
the decrease in the value of the money.

The graphic presentation of total deport of NBL is shown in the figure

below:
Figure No.1
Total Deposit Trend

Total Deposit

37000
Rs in Million

36000
35000
34000
33000

32000
31000
2055-056 2056-057 2057-058 2058-059 2059-060 2060-061 2061-062

Fiscal Year

3.2 TREND OF FIXED DEPOSIT OF NBL:

Fixed deposit is the major source of working capital of any commercial
bank. Thus NBL has been able to collect adequate fixed deposit by providing
competitive rate of interest for investing alternatively in loans and advances and
investment. The following table shows the trend of Fixed Deposit in NBL during
fiscal 2055-56 to 2059-60.

Table No. 2
Fixed deposit Trend of NBL
(Rs. in Million)
Fiscal year Fixed deposit Amount Percentag
e
2055-056 14154.7 - -
2056-057 12275.8 (1878.9) -13.27%
2057-058 9921.7 (2354.1) -19.18%
2058-059 9731.8 (189.9) -1.91%
2059-060 8396.9 (1331.9) -13.68%
2060-061 7480.9 (916.0) -12.24%
2061-062 7216.9 (264.0) -3.53%

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Source: NBL head office
From the above table it is apparent that the fixed deposit has been
decreasing continuously form 2055-056 to 2060-061. In fiscal year 2056-057 it
has decreased by 1878.9, in 2057-058 it again decreased by 2354.1, in 2058-059
by 189.9, in 2059-060 it decreased by 1334.9 and in 2060-061 & 2061-062 it is
decreased by 916.0 and 264.0 respectively.
The trend of six year is presented graphically if figure.

Figure No. 2
Fixed Deposit
Fixeddeposit

16000
14000
Rs in million

12000
10000
8000
6000
4000
2000
0
2055- 2056- 2057- 2058- 2059- 2060- 2061-
056 057 058 059 060 061 062
Fiscal Year

Fixed Deposit Trend

Fixed deposit

16000
Rs in million

14000

12000

10000

8000

6000

4000

2000

2055-056 2056-057 2057-058 2058-059 2059-060 2060-061 2061-062

Fiscal Year

3.3 FIXED DEPOSIT TO TOTAL DEPOSIT RATIO

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 This ratio measures the percentage of fixed deposit to total deposit ratio.
This deposit is calculated by dividing fixed deposit with total deposit.

Fixed Deposit
Fixed deposit to total deposit =
Total Deposit

Table 3
Fixed deposit to Total Deposit Ratio
(Rs. in Million)
Fiscal Year Fixed Deposit Total Deposit Percentage of F.D. to T.D.
2055-056 14154.7 32755.9 43.21%
2056-057 12275.8 35197.5 34.88%
2057-058 9921.7 35210 28.18%
2058-059 9731.8 33895 28.71%
2059-060 8396.9 34620.9 24.25%
2060-061 7480.9 36519.7 20.48%
2061-062 7216.9 35934.2 20.08%
Mean 28.54%
Source: NBL Head Office

The Table No. 2 shows the high volume of Fixed Deposit in comparison to
other deposit. The mean ratio of Fixed Deposit to Total Deposit is 28.54% for the
previous seven years during the fiscal year 2055-056 to 2061-062. The highest
percentage is 43.21% for the fiscal year 2055-056. The high volume of Fixed
Deposit shows the high liquidity of capital in NBL.
Figure No. 3

Comparative Fixed Deposit with Total Deposit

Rs in Million

40000
35000 Fixed Deposit
30000 Total Deposit
25000
20000
15000
10000
5000
0
2055-056 2056-057 2057-058 2058-059 2059-060 2060-061 2061-062

Fiscal Year

3.4 RATE OF INTEREST

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 Fixed deposit are considered to be the major source of capital and NBL
has been able to collect the fixed deposit by providing competitive rate of
interest to the account holder in order to fulfill the demand of capital for
investing alternatively in Loans and advances and Investment. The following
table shows the before and current rate of interest on Fixed deposit:

Table No. 4
Interest rate of Fixed Deposit
Period of Time Before Rate Current Rate
7 days 2.00% -
14 days 2.50% -
1 month 3.50% 2.50%
2 month - 2.75%
3 month 4.00% 3.00%
6 month 5.00% 3.50%
1 year 6.75% 4.00%
2 years & above 7.00% 4.00%
Source: NBL Head Office

3.5 COMPARISION OF INTEREST RATE OF FIXED DEPOSIT OF NBL WITH

OTHER BANKS
Table No. 5
Comparison of interest rate of fixed deposit of NBL with other banks
Name 7 14 1 2 3 6 1 yr 2 yrs &
of days days month months months months above
bank
NBL 2.00 - 3.25 3.50 3.75 4.25 5.7 6.00
5
HBL 2.30 3.30 - 3.75 4.00 5.2 5.75
5
EBL 3.00 3.50 - 4.00 5.00 5.5 6.00
0
NSBI 2.50 3.00 - 4.00 5.00 6.0 6.25
0
KBL 3.00 3.50 - 4.00 4.25 5.2 5.50-
5 6.00
Source: Banking & Financial Statistics

So for the above table we can say that the interest rate of NBL and other
bank are quite similar. The percentage of providing the interest rate has been
increasing time to time. As the percentage of the deposit is also constantly

13
increasing it is quite important to make the changes in the percentage of
providing the interest.

Table No. 6
3.6 COMPARISION OF FIXED DEPOSIT OF NBL WITH OTHER BANKS
(Rs. in Million)
Name of Bank 2000 2001 2002 2003
Nepal Bank Ltd. 12275.8 9921.8 9731.8 8396.0
Himalayan Bank Ltd. 5109.4 5668.1 6044.9 5880.7
Nepal SBI Bank 2420.3 2929.4 3132.7 3337.6
Source of Banking and Financial Statistics

So from the above table it can be noticed that the fixed deposit trend of
NBL is more than that of other banks. For example Himalayan Bank has got the
fixed deposit of Rs. 2104.5 thousand in the fiscal year 1996-97 whereas NBL has
got the deposit of Rs. 7001.0 thousand. In the same way from the above table it
can also be noticed that the amount of fixed deposit has been increasing in
every year, which is a quite good sign of the economic development of country.

3.7 KARL PEARSON'S CORRELATION COEFFICIENT

Karl Pearson's method, popularly known as Pearsonian coefficient of
correlation, is most widely used in practice to determine the relation between
two variables. It is denoted by "r" and defined by:
∑ xy
r=
∑x2 ∑ y2
Where, r = Karl Pearson's correlation coefficient
x = X − x, y = Y − y

Value of r always lies between + 1 and -1, r = +1 denoted the perfect

positive correlation between the two variable and r = -1 denoted the perfect
negative correlation between the two variables.

Table No. 7
Correlation Between Fixed Deposit with Total Deposit
Yea Fixed Total x = X −x y =Y − y x2 Y2 xy
r Depos Depos
it (X) it (Y)
205 14154. 33092. 4272.1 (1943.2) 18250838. 3776026.2 (8301544.72
6 7 6 41 4 )

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205 12275. 35578. 2393.2 542.9 5727406.2 294740.41 1299268.28
7 8 7 4
205 9921.7 35528. 39.1 492.7 1528.81 242753.29 19264.57
8 5
205 9731.8 34060. (150.8) (975.7) 22740.64 951990.49 147135.56
9 1
206 8396.9 34737. (1485.7) (298.4) 22073044. 89042.56 443332.88
0 4 9
206 7480.9 36519. (2401.7) 1483.9 5768162.8 2201959.2 (3563882.63
1 7 9 1 )
206 7216.9 35934. (2665.7) 898.4 7105956.4 807122.56 (2394864.88
2 2 9 )
Σ X= Σ Y= Σ x2= Σ y2= Σ xy=
69178. 245451 58949678. 8363634.7 (12351290.9
7 .2 38 6 4)

∑ x 69178 .7
x= = = 9882 .6
N 7
∑ y 245451 .2
y= = = 35035 .8
N 7
∑ xy − 12351290.9 4
r= = = −0.55
∑ x2 ∑ y2 58949678 .38 8363634.76

Since Karl Pearson's correlation coefficient (r) = -0.55 the two

variables fixed deposit and total deposit has high degree of negative
correlation. That means the increament/decreament in total deposit will
not cause change in fixed deposit.

Estimation of Fixed Deposit of NBL For the year

15
 2062
By least square method
Time Series

Table 8: Trend line of fixed deposit

Year Fixed Deposit x = X-2058 xy x2

(X) (y)
2056 14154.7 -2 -28309.4 4
2057 12275.8 -1 -12275.8 1
2058 9921.7 0 0 0
2059 9731.8 1 9731.8 1
2060 8396.9 2 16793.8 4
2061 7480.9 3 22442.7 9
2062 7216.9 4 28867.6 16
Σ y = 69178.7 Σ x=7 Σ xy = 37250.7 Σ x2 = 35

Let the straight line trend be represented by the equation.

Y = a+bx...................................... eqn 1
The deviation is taken from the year. i.e. year 2058.

Since, Σ x = 7
∑ y 69178 .7
So, a = = = 9882 .6
N 7
∑ xy 37250 .7
b= = = 1064 .3
∑ x2 35
Substituting the value of a and be in eqn 1, the required trend line is
Y = 9882.6+1064.3x.................equation 2
Again Calculation of trend values for the year 2063
X = year -2058, 2062-2058=4
When we substitute the value of x in equation 2, we get
Y = 9882.6+1064.3x4 = 14139.8
∴ The fixed deposit of NBL for year 2062 will be 14139.8

PART 4
SUMMARY AND CONCLUSION

4.1 SUMMARY

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 Bank is the most important institution for accelerating economic growth in
the country. It is quite true that a strong financial institution is of a great need in
the development of the developing country like Nepal. The Nepal Bank Limited is
one of the oldest banks of the country which has got the history of 66 years. This
bank is now in its advance stage. As being the first commercial Bank it has to
pass through the different ups and down. NBL has been providing different
services to its customers. NBL played a vital role in the over all development of
the country. The bank only had authorized capital of Rs 842 thousand at its
starting stage, which has now increased to 1000 million. NBL previously was
started with the 51% of the government and 49% of the public but at present
time the bank has got the 40.49% share of the government and 59.51% of the
general public. So looking at this factor, NBL has developed a lot in this time. The
Bank has high contribution in fulfilling the economic improvement by collecting
the scattered resources through the network of 127 branches through out the
country. The bank has the thought of computerizing the very branch. NBL at
present has 7 branch offices which are fully computerized.

Though commercial banks are profit oriented and invest these resources
in those sectors from where they could gain maximum profit, NBL is initiated not
only with profit oriented motive. It has always given preference to the economic
and the financial development of the country. It provides credit facilities to the
trader, agriculturist, industrialist, businessman etc. It can also be said that NBL
acts as the pillar of the economic development. NBL facilitates international
banking by being directly connected with major international banks.

NBL has different functions but the main function is to provide the security
to the wealth of the customers. NBL generally provide three different types of
accounts i.e. saving, current and fixed deposit account. Although the interest is
not provided in current account, people deposit in this account for its safety.
Fixed deposit account is most common among the people because it has higher
interest rate, can be pledged as collateral for loan and easier to open.

The study provides the entire knowledge of getting Fixed Deposit Account
opened, operated and closed. Fixed Deposit Account is opened for the fixed
period of time but the account holder cannot operate it during its time period.
The rate of interest on Fixed Deposit Account is provided according to the

17
duration of deposit period. The fixed Deposit Receipt is provided to the depositor,
in lieu of passbook or cheque book. Once the deposit period mature, the interest
and principal of the Account is credited to the depositor saving or current
Account and thereafter, Fixed Deposit Account is automatically closed.

4.2. CONCLUSION
So from the study and analysis of the data of the fixed deposit of NBL it
can be said that the percentage of depositing money in the fixed deposit has
been decreasing day by day. It can be said that the bank has not been able to
utilize the collected saving according to the borrower and nation requirement.
Since in these few years economy is going through recession it has resulted in
the drastic decrease in the interest rate provided by commercial banks including
NBL. It will be profitable for NBL if it provides more amount of long term and
medium term loan. Though full effort is given to make this study meaningful and
weighty, some mistakes might have occurred due to time shortage.

4.3 RECOMMENDATION
After the study of the different data provided by NBL and the data
collected from different sources about NBL there are some recommendation
referred to NBL which may help it in further development:
a) As this is the modern competitive, customers want more improved
services so bank should attract more depositors by providing
improved and new services and facilities.
b) The banks should use modern instrument to perform the banking
activities.
c) The bank must employ only required number of employees
otherwise it may create a big problem in bank.
d) The Bank should also provide more attention towards the priority
sectors and also provide the industrial scheme for the development
of the economic condition of the country.
e) The bank must not invest only in one sector; different sector should
be selected of the investment.
g) Since it has certain responsibility towards the country, it must work
for the economic development of the country.

18
 BIBLIOGRAPHY

1. Vaidya Shakespeare: - Money & Banking (Published by Pratibha Joshi

December 1997)

2. Nepal Rastra Bank: - Banking and Financial Statistic (Published Under

Banking Operation Department)

3. Dr. Joshi Shyam Dr. Hari Prasad Shrestha: - Principle of Banking and
Insurance (Published by Teleju Prakshan 2058)

4. Nepal Bank Limited: - Bank Patrika and Annual Report (Published by Nepal
Bank Limited)

5. Pant R. Prem: - Field Work Assignment and Writing (Published by Veena

Academic Enterprise Pvt. Ltd. Kathmandu)

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