CHAPTER -1

INTRODUCTION

1.1 General background of the study

Banking has crossed various phases to come to the modern from ,some sort of banking
was carried out from ancient civilization of Greek, Rome and Mesopotamia the temples
and church were the safer the safer place to keep /store previous metals before metal
coins were introduced.

The merchants who had difficulty in carrying the physical money when trade executed
they started to issue letters which were treated as money. Goldsmiths were highly
honored in society, when people had fear of theft and robbery they lend it to goldsmith
who used to charge commission for safe keeping of the valuables. He used to issue a
receipt to the depositor with the notion. IOU this gave birth to bank note. Many lenders
used to give loan to the need out of their treasure and later started to deposit saving with
the money lender.

The word ‘Bank’ is linked to Latin word “bancus” meaning bench, Italian word ‘banca’
meaning a bench and French word ‘banpue’ meaning bench It means many lenders used
benches for the acceptance and payment of valuables and coin.

Modern banking started from Medieval Italy bank of Venice, set up in 1157in Venice,
Bank of Barcelona 1401, Bank ofGerdon1407, Bank of Amsterdam in 1609,Bank of
Hindustan in 1994 -07-30 B. S. Nepal Rastriya Banijya Bank in 2022-10-10B.S. Nepal
Industrial Bank in 2013 B.S., Agricultural Development Bank in 2024-10-10 B.S.

Today Banks have gained Permanent trust on the public, its importance is felt by the
people it is not just functioning as safe depositor of many lenders but in widely used for
legal entity and freedom from exploitation from merchants to create capital, to transfer
fond, .to bust trade.
1.2 Development of Banking System
Certainly, no comparison can be made between ancient and modern banks, yet is
necessary to know how the present banking system gradually developed. In ancient time,
goldsmith business men and money lenders used to perform the work of banking in
every country. Hence, Crowther has describe the following persons are ancestors of the
modern banks.

1. The Merchants
2. The Money Lenders
3. The Goldsmiths

1. The merchants
The oldest ancestors of the modern banks were the merchant’s. The merchants used to
exchange the gold, silver and coins and deposits the ornaments or goods made of gold,
silver and gems. The receipt given by then was considered equivalent to money. They had
played vital role to develop the banking transaction.

2. The money lenders

The money lenders were second ancestors of the modern banks. Lending and borrowing
are almost as old as money itself and the village money lender is found even in quite
primitive communities. He is not usually regarded as very lovely object usurer is one of
the oldest terms of abuse. But the service he performs is undoubtedly useful and
necessary the even though the reward he extracts in return may usually be rapacious.

3. The Goldsmith
The Goldsmiths were the third ancestor of the modern banks .Noted economists Hartley
Withers has taken the ancient of Goldsmiths as the father of the modern banks. The
Goldsmiths use to give receipts, which were known as goldsmiths note. It was made
payable to bearer and on demands which transformed the said receipt in to the position
of bank note. It gained circulation and circulation and currency in due to course of time,
these notes with the passage of time because payable to bearer on demand and enjoyed
circulation. Thus we can say that the goldsmiths because the precursor of the modern
bank note and the forerunners of the works of creation the credit, issuing the notes,
depositing , lending transacting the bills of exchange and promissory note etc.

The history banking development, we can’t forget the bank of casa de san Giorgio in
Genoa, was established in 1148.Bankof Venice was established in 115.and in1401, the
bank of Barcelona was established in Barcelona. In fact, modern Bank started to take
rapid speed in forming and functioning from 17 th century. During this period, Bank of
Milan, Bank of Florence and Bank of St George was established in Genoa. In 1609 the
Bank of Amsterdam was established in Holland, like wise in 1610, Bank of Hamburg was
established in Germany and Bank of England was established in England. In the context of
Nepal, for the first time, the Nepal Bank Limited was established in 1914 B.S, the central
bank of Nepal was established in 2013 B.S.

In conclusion, we can say that, Banking is not static but a dynamic concept. It is a product
of centuries and the development which has taken place is the product of a method of
trail and error and experience which were made and the result that followed relating to
the acceptance of money and valuable as deposit, keeping theme as such ,Lending them.
Whether to provide individuals to state of other bodies and for controlling the
multifarious and multi-dimension activities which in the beginning were only trivial and
could be ignored but the growth of the time, because international in character and
multi-dimensional in mature calling for actions on the time, because international in
character and multi-dimensional in nature calling for actions on the parts of states as the
actions on the part of individual ‘s and state control became eminent.

Thus , one can not understand the development of banking by looking at a particular
period of time and one has to considered the development by taking in to account the
progress if has during the centuries and by understanding the movement from one stage
to other.
1.3 Meaning and Definition of Banking
The word started with French word benque and Italian which means accumulation of
money .On the Italian business house, banking caused banc the word was derived from
the German worded bench England .Thus the meaning of bank is derived from Italian and
from German.

In simple word I can say bank is a place where the money’s transaction happens. In the
other words, bank is the organization, which collects the various types of the loans
among them. Bank is the mediator of people because it takes deposit in one side and
provided the loan to them in other side.

Generally, and institution established by law, which deals with money and credit is called
bank. It is devious that in a common sense an institution involved monetary. Transaction
is a called bank; a bank simply carries out the word of exchange money, providing the
loan accepting deposit and transferring the money section 2(a) of Nepal Rastra Bank Act
2058(2000) define as bank as follows.

“Bank” means the Nepal Rastra Bank established under the section 3 of Act like wise
according to the section 2(b) of the commercial bank Act 2031(1974).Bank means” A
commercial bank established by both of this act are called Bank . We don’t find clear
definition of it. In addition to this section (a) of the negotiable instrument Act2034
defines that bank which is established under the existing law shall be called bank.

It is very difficult to give definition to any particular subject matter. It is a really difficult
task to express and give meaning of any subject in few words. So, different scholars have
presented the definition of the same subject matter in different ways. There is no
similarly to all however we find they have included the essential points .Some renowned
scholar’s that most of then have defined bank as follows:-
1. Prof. Kinley
“A bank is an establishment which make to individuals such advanced of money as may
be required safely made and to which individuals entrust money when none required for
use”.

2. As per U.S. Law

“Any institution offering deposit subjects to with drawl on depend and making loans of
commercial of business nature is a Bank”.

3. As per Kent
“A bank is an organization whose principle operations are concerned with the
accumulation of the temporarily idle money of the general public of the purpose of
advancing to other for expenditure”.

4. Walter leaf
“A bank is that institution or individual who is always ready to service money on deposits
to be returned against the cheque their depositors”.

5. As per Banking Regulation Act of India

“Banking means accepting for the purpose of lending or investment of deposit money
from the public repayable on demand or otherwise and with draw able by cheque, draft
or otherwise’.

6. Dr. Hart
“A person or company carrying on the business of receiving money and collecting draft
for customers subject to the obligation of honoring cheques drawn up on then from time
to time by the customers to the extent of the amount available on their current accounts”
7. R.S.Sayers Say
“I believed in that fact the bank are not merely purvey on of money but also in and
important sense manufacture of money”.

8. Shorter oxford English Dictionary

“A bank is an establishment for the custody of money received from or on behalf of its
essentials duties are to pay their drafts on its profit arise from its use of the money left
unemployed by them”.

So, the bank means “A financial establishment for the deposit loan exchange or issue of
money and for the transmission of funds”. Definitions given above are applicable to all
types of financial intermediaries in fact “banks” Now a days to all large number of
financial while financial institution are authorizes a limited transactions only. Hens, a
bank can be defined as a “Financial department store” which renders a host a financial
service beside taking deposit and giving loans.

1.4 Commercial Bank

1.4.1 Rastriya Banijya Bank Singha Durbar
Commercial banks are those banks, which collects different types of deposit .It is also
called business banks. It gives loan to public or individual as well as government
industries. Main objectives those commercial banks are earned more profit.Bank of
Venice set of in 1157 is the first commercial bank, in the beginning, commercials banks
functions were confined to accepting deposit and giving loans .However, their functions
have now, increased manifold commercial banks are found operating through words
Nepal Bank Limited established on 30 th kartik 1994 B.S. in first commercial bank in
Nepal.Rastriya Banijya Bank was established in 2022.B.S in Nepal .Which established
under the commercial bank acts 2034 .B.S.is called commercial bank.As per commercial
Act 2031B.S”A commercial banks means the bank deals in exchanging currency accepting
deposit, giving loan and doing commercial transactions”.
Rastriya Banijya Bank Singha Durbar was established in 2024 B.S The bank gives service
from their beginning .They had done their financial transaction to the local merchant,
money lender and land lords etc. Now here are many financial activities then established
period. All staff of this branch office from to authority to lower good and they are very co-
operative. The branch Rastriya Banijya Bank Singha Durbar is located near Singha Durbar,
Kathmandu.
1.4.2The function of Commercial Bank
Commercial banks are directly with the people and institution .The commercial bank is
and important bank .Its functions is very attractive for people .Although these banks are
truly inspired with the objective of gaining profit ,These commercial bank are also
established to accelerate common peoples economic welfare and facility to make
available loan the agriculture, industry and commercial and to provide the banking
service to the public and state .In Nepal ,the commercial banks performed the following
functions:-
1. Accepting various types of deposits 7.Information and other services
2. To provide loan 8. Overseas trading services
3. Lending money in various productive sectors 9. General utility function
4. Agency functions 10. Bills
5. Guarantee 11. ATM
6. Remittance

General Organization Structure of Rastriya Banijya Bank

Branch Office of Shinga Durbar
1.4.3 Deposit
Deposits are the main source founds of commercial banks. Those deposits are collected
for different frame .On the other words deposits are the main source of raising capital
these deposit are the collective in different types of account. Simply deposit means “The
amount the stored in fixed /current /saving amount by the customer in any banking
institute.

The excess amount of money that lefts meeting human wants, the person or group of
person or unit save excess amount for future instead of keeping the excess funds in hand
they use a store that amount in the bank or other institute called “Deposit”.

Deposit is the main source of found collection of bank .Without deposit collection bank
can not survive and cannot transaction at all .It can directly help to increase the living
standard of people.

1. Current Deposit
Current deposit is useful deposit to individual merchants and different company in this
account interest is not given. Account holder can be drawn any amount of money at any
time during office hours for opening current account must fill prescribed application he
must be give this identification photocopy of citizenship certificate and specimen of
signature .A customers can open this account minimum cash balance .Usually in this
deposit interest rate is not given. The total number of account holders in this branch is
565 currently.
2. Saving Deposit
Fund collection by the saving deposit in which middle and general people open a limited
a amount of money can by with draw and low a level of interest will be provided people
safe of this money by this saving account and get some interest rate .In this deposit,
depositors get 2% interest . This interest rate is lower than that of fixed deposit .A person
can open saving deposit with a sum of Rs 2000. The total number of account holders in
this branch is 10645 currently.

3. Fixed Deposit
Fixed deposit are those deposit which are repayable after a certain period of time .In
other words deposits a made under fixed deposit can not be with drawn before the expiry
of the time period. The total number of account holders in this branch is 138 currently.

1.5 Objective of Study

The main objective of this report is to analysis the trend deposits of Rastriya Banijya
Bank with special reference of Singha Durbar branch .Some other objectives of this study
areas follows:-
1. To know the interest rate of different deposit
2. To know the deposit distribution condition of RBB Singha Durba since last 5 Years.
3. To know the correlation of deposit with its distribution.
4. To find out the relationship between deposit and distribution investment.

1.6 Research Methodology

Presentation and analysis of data, the collect row data have been properly presentations
table graphs. On the way of presentation of data simple statistics and mathematical tools.
Ratio analysis has been used to analysis the collected data.
a .Ratio
b.Correlation

1.6.1 Types of data

Mainly secondary data are used in these case studies and partially the primary data are
also used. Some interview to known their view, idea, opinions and suggestion.

1.6.2 Sources of data’s

Mainly data are collected by visiting the bank. Partially secondary data are collected from
published and unpublicized books, booklets, articles reports of RBB at Singha Durbar.
Some raw data are collected from the recorded file, journals and ledger of branch office of
RBB, Singha Durbar.

1.7 Limitation of the case study

This case study is based on the following points:-
a. It is based only on the commercial bank RBB of Nepal.
b. It is based only on the branch office of the RBB, Singha Durbar.
c. Only some primary and secondary data have been used.
d. The study is based on the topic deposit analysis.
e. Mainly table, chart are used for presentation of data.
f. Only some ratios of total deposit, current deposit, saving deposit and fixed deposit
have been calculated.
 CHAPTER-2
DATA ANALYSIS AND PRESENTATION

2.1 Presentation and analysis of data

This chapter most important part of the case study. It is explained by the data
presentation and chart. Amount of approximate thousand and corers is used for the
presentation. The analysis of the data has been made easy for understanding, the
decision is returned attached with the concerned table. I have applied easy method of
statistical and mathematical tools for the calculation of the data on correlation between
variables. I have used Karl Pearson’s coefficient for it. It is also used for easy and quick
identification of the data.

2.2 Deposit collection

Deposit main source of funds for commercial bank. On the other words the main function
of RBB, Singha Durbar collection of deposit. Deposits are raising capital of the bank. The
customers can deposit in current deposits, saving deposit and fixed deposit account,
accounting his need. Customers always wish invested his fund in high interest rate
deposit banks invests collected amount in different sectors and gain profit. Gain is
necessary for the bank if bank can’t collect deposit, his all transaction will close, if bank
transaction is good, bank must be collected more fond and investment in different sectors
of their fond.

Banijya bank, branch office Singha Durbar for the last five year given below:-

Table no.1
(Amount in thousand)

Deposit Account 2061Asad 2062Asad 2063Asad 2064Asad 2065Asad

Current Deposit 76319 60170 88652 71373 83217
Account

Saving Deposit Account 737552 847035 802418 820876 830961

Fixed Deposit Account 273294 110818 93150 70469 70325

Total Deposit Account 1087165

1018023 984220 962718 984503

From the above table we know that:-

 (I) Current deposit is decrease on 2062, but increase on 2063 and decrease on 2064
but again increase on 2065than previous year.
(II)Saving deposit is increase on 2062and decrease in 2063, but increase on2064,
again increase on2065than previous year.
(III)Fixed deposit is decrease in every year.

2.3 Deposit Analysis

Rastriya Banijya Bank Singha Durbar, the branch mainly death with measures business
activates through collection money different deposit amount from different sectors,
group of people providing some money to the other groups who need it. First of all bank
accept different kind of deposit and granting loans are the main function of banks. Bank
invests collected amount in different sectors and gain profits. Bank is always necessary
for good transactions and large investments. If bank can not mobilization of their collects
funds, its all transaction will close the bank went lost. Singha Durbar Branch of Rastriya
Banijya Bank is invests their fund in different sector like services, gold and banking
program. Bank keeps cash in hand not more then 10% of total deposit. Apart from the
cash kept in the bank the remaining balance is kept at thapathali bank without interest
for this branch and is mobilized in different sectors.

The various investment sectors for the last five years are as follows:

Table no: 2
(Amounts in thousand)

Investment 2062 2063 2064 2065

2061 Asad
sector Asad Asad Asad Asad
Government 1750 1678 185 0 0

Over Draft 54790 43797 40017 31766 53040

Hypo 53447 39538 30260 23684 26878

Project 182793 180396 167647 173931 128043

Consumer 0 0 2575 64452 73007

 Other 1920 1859 2423 3093 9612

Total 294700 267268 240532 232474 217573

12
From the above table, we know that the total investment of deposit decrease every year
as of year 2061, 2062, 2063, 2064, and 2065 in all sectors.

Table below shows the position of current deposit and distribution of total mobilization
of RBB.
Table no.3
(Amount in thousand)
Percentag
Remainin
Investme e
Total g Amount Increase/Decrea
nt from Investmen
Year current after se(%)of current
current t of
Deposit Investme Deposit
Deposit current
nt
Deposit
2061 76319 40673 35646 53.29
2062 60170 41500 18670 68.97 15.68
2063 88652 43202 45450 48.73 20.24
2064 71373 38908 32465 54.51 5.78
2065 83217 35669 47548 42.86 11.65

According from the above table show

In year 2061in percentage investment of current deposit was 53.29%, 2062 decrease by
68.97%, 2063 increase by 48.73%, 2064 decrease by 54.51% and 2065 increase by
42.86%.
In table no 3; the increase/decrease (%)of current deposit is 2061-2062 increases by -
15.68%, 2062-2063 decreases by 20.24%, 2063-2064 decreases by 5.78% and 2064-
2065 increases by 11.65%.
  Remaining amount after investment = Total current deposit –Investment from current
deposit.
 Percentage Investment of current deposit =Investment from current deposit /Total
current deposit * 100

13

Current deposit mobilization percentage of RBB branch office at Singha Durbar

for fiscal year

In the above graph the percentage increase and decrease in investment of total current
deposit Rs. follows:-
2061-62 15.68% (Increase)
2062-63 20.24 % (Decrease)
2063-64 5.78 % (Increase)
2064-65 11.65 % (Decrease)

Table below shows the position of saving deposit and distribution of total
mobilization of RBB.

Table no.4
(Amount in thousand)

Remainin Percentag
Investme
Total g Amount e Increase/Decrea
nt from
Year saving after Investmen se(%)of saving
saving
Deposit Investme t of saving Deposit
Deposit
nt Deposit
2061 737552 182255 555297 24.71
2062 847035 169304 677731 19.99 4.72
2063 802418 173000 629418 21.56 1.57
2064 820876 190695 630181 23.23 1.67
2065 830961 184013 646948 22.14 1.09

14
According from the above table show:-
In year 2061in percentage investment of saving deposit was 24.71%, 2062 decrease by
19.99%, 2063 increase by 21.56%, 2064 increase by 23.23% and 2065 decrease by 22.14.
In table no 4; the increase/decrease (%)of saving deposit is 2060-2061 increases by -
15.25%, 2061-2062 decreases by 4.72%, 2062-2063 increases by 1.57% and 2063-2064
increases by 1.67%.

 Remaining amount after investment = Total saving deposit –Investment from saving
deposit.
 percentage Investment of saving deposit =Investment from saving deposit /Total
saving deposit * 100

Saving deposit mobilization percentage of RBB branch office at Singha Durbar for
fiscal year 2060-2064.

In the above graph the percentage increase and decrease in investment of total saving
deposit Rs.follows:-

2061-62 4.72% (Decrease)

2062-63 1.57 % (Increase)
2063-64 1.67 % (Increase)
2064-65 1.09 % (Decrease)
 15
Table below shows the position of fixed deposit and distribution of total
mobilization of RBB.

Table no.5
(Amount in thousand)
Remainin Percentag
Investme
Total g Amount e Increase/Decrea
nt from
Year fixed after Investmen se(%)of fixed
fixed
Deposit Investme t of fixed Deposit
Deposit
nt Deposit
2061 273294 44340 228954 16.22
2062 110818 32303 78515 29.15 12.93
2063 93150 80724 12426 86.66 57.51
2064 70469 60977 9492 86.53 0.13
2065 70325 54329 15996 77.25 9.28

According from the above table show

In year 2061in percentage investment of fixed deposit was 16.22%, 2062 decrease by
29.15%, 2063 increase by 86.66%, 2064 increase by 86.53% and 2065 decrease by
77.25%.In table no 5; the increase/decrease (%)of fixed deposit is 2061-2062 increases
by 12.93%, 2062-2063 increases by 57.51%, 2063-2064 decreases by 0.13% and 2064-
2065 decreases by 9.28%.
 Remaining amount after investment = Total fixed deposit –Investment from Fixed
deposit.
 Percentage Investment of fixed deposit =Investment from fixed deposit /Total fixed
deposit * 100
Fixed deposit mobilization percentage of RBB branch office at Singha Durbar for
fiscal year 2061-2065.
In the above graph the percentage increase and decrease in investment of total saving
deposit Rs follows:-
2061-62 12.93 % (Increase)
2062-63 57.51 % (Increase)
2063-64 0.13 % (Decrease)
2064-65 9.8 % (Decrease)
16
The table below show the position of total deposit and its total mobilization of
Singha Durbar branch office from fiscal year 2061to 2065.

Table no: 6
(Amount of thousand)
Remaining Percentage
Total Increase/Decrea
Total Amount Investment
Year Investmen se% investment
deposit after of Total
t of Total Deposit
Investment Deposit
2061 1087165 294700 792465 27.11
2062 1018023 267268 750755 26.25 0.85
2063 984220 240532 743688 24.44 1.81
2064 962718 232474 730244 24.15 0.29
2065 984503 217573 766930 22.10 2.05

According to above table showing year 2061 the percentage investment of total
deposit was 27.11%, percentage investment of total deposit was increase by 26.25% in
year2062, percentage investment of total deposit was decrease by 24.44% in year2063,
percentage investment of total deposit was decrease by 24.15% in year 2064and
percentage investment of total deposit was decrease by 22.10% in year 2065.

In the above graph the percentage increase and decrease in investment of total deposit
Rs. follows:-

2061-62 0.85 % (Decrease)

2061-62 1.81 % (Decrease)
2062-63 0.29 % (Decrease)
2063-64 2.05 % (Decrease)

17
2.4 Major findings

The majors finding by correlation between total current deposit and investment
from current deposit.

Calculation of correlation(r)

Table no.7
Amount in crores
Year Total Investme U=x- V=y-41.2 U 2
V 2
U×V
current nt from 71.14
Deposit current
(x) Deposit(y
)
2061 62 44 -9.14 2.80 83.5396 7.84 -25.592

2062 76 40 4.86 -1.20 23.62 1.44 -5.832

2063 60 41 -11.14 -0.20 124.10 0.04 2.228
2064 88 43 16.86 1.80 284.26 3.24 30.348
 2064 71 38 -0.14 -3.20 0.02 10.24 0.448
Total ∑U=1.3 ∑V=0.2 ∑U =515.5 ∑V =22. ∑UV=1.6
2 2

4 8

Here,
N=9, ∑U=1.3, ∑V=0.2, ∑U2=515.54, ∑V2=22.8, ∑UV=1.6

Now,
n∑UV─ ∑U ×∑V
Correlation (r) =
n  U 2 - (  U) 2  n  V 2 - (  V) 2

5×1.6─1.3×0.2
=
5  515.54 - (1.3)2  5  22.8 - (0.2)2

8─0.26
=
( 2577.7 - 1.69)  (114 - 0.04)

= 0.0143
Therefore, the correlation between total current deposit and investment from current
deposit is 0.0143

18
The majors finding by correlation between total saving deposit and investment
from saving deposit.

Calculation of correlation(r)

Table no. 8

Amount in crores
Year Total Investme U=x- V=y-155.8 U 2
V 2
U×V
saving nt from 779.4
(x) saving
Deposit(y
)
2060 691 65 -88.4 -90.80 7814.56 8244.64 8026.72

2061 737 182 -42.4 26.20 1797.76 686.44 -1110.88

 2062 847 169 67.6 13.20 4569.76 174.24 892.32
2063 802 173 31.6 17.20 998.56 295.84 543.52
2064 820 190 40.6 34.20 1648.36 1169.64 1388.52
Total ∑U=9 ∑V=0 ∑U2=16829 ∑V2=10570. ∑UV=9740.
8 2

Here,
N=5, ∑U=9, ∑V=0, ∑U2=16829, ∑V2=10570.8, ∑UV=9740.2

Now,
n,∑UV─ ∑U ×∑V
Correlation (r) = n  U 2 - (  U) 2  n  V 2 - (  V) 2

5 ×9740.2─9×0
=
5  16829 - (9) 2  5  10570.8 - (0) 2

48701
=
66340.69

= 0.734

Therefore, the correlation between total saving deposit and investment from
saving deposit is 0.734

The majors finding by correlation between total fixed deposit and

investment from fixed deposit.

Calculation of correlation(r)

Table No.9

Amount in crores
Here,
N=5, ∑U= 0, ∑V= 0, ∑U2=126753.2. , ∑V2=14816, ∑UV=34660

Now,

n∑UV─ ∑U ×∑V

Correlation (r) =
n  U 2 - (  U) 2  n  V 2 - (  V) 2

5 ×34660─0×0
=
5  126753.2 - (0) 2  5  14816 - (0) 2

48701
=
216678.07

= 0.225

Therefore, the correlation between total fixed deposit and investment from fixed
deposit is 0.225

20
The majors finding by correlation between total deposit and total investment.

Calculation of correlation(r)

Table no.10
 Amount in crores
Total Total
U=x-
Year deposit Investmen V=y -250 U2 V2 U×V
1059.6
(x) t (y)
2060 1247 294 187.4 44.00 35118.76 1936 8245.6
2061 1087 267 27.4 17.00 750.76 289 465.8
2062 1018 240 -41.6 -10.00 1730.56 100 416
2063 984 232 -75.6 -18.00 5715.36 324 1360.8
2064 962 217 -97.6 -33.00 9525.76 1089.00 3220.8
∑U2=52841. ∑UV=13708.
Total ∑U=0 ∑V=0 ∑V2=3738
2 2

Here,
N=5, ∑U= 0, ∑V= 0, ∑U2=52841.2. , ∑V2=3738, ∑UV=13708.2

Now,
n∑UV─ ∑U ×∑V

Correlation (r) =
n  U 2 - (  U) 2  n  V 2 - (  V) 2

5 ×13708.2─0×0
=
5  52841.2 - (0) 2  5  3738 - (0) 2

68541

= 70270.98

= 0.9725

Therefore, the correlation between total deposit and total investment is 0.975

21
CHAPTER -3
3.1Summarise
 This fieldwork report is concern with deposits of Rastriya Banijya Bank office. In
fact it covers many background histories of Rastriya Banijya Bank, Shinga durbar branch
office. Although Bank, trying to their collect the deposits account from the people very
efficiently .But due to the various, they have not been able to utilize them in proper way.
Deposits are the main sources of funds collection of commercial banks, there deposits are
called for different time frame as in account of current, saving and fixed deposits. Simply
fixed deposits are the time deposits before the time up to which the amount has been
deposited can be withdrawn. Different types of fixed deposits like: on the basis of the
duration , one months , six months, one year ,two year and up to five years. In fixed
deposit interest rate is depend on the duration of the time. Current deposit is very useful
deposit for any person because they can withdraw their amount at any office hour from
his amount but coupon rate is not give for his account because bane cannot invest this
amount for long time.

Finally saving deposits are also useful. Interest rate is paid @20% in saving
account by the bank. Which amount can use the bank and get more interest then his paid
rate. Which the banker accepts deposits, he incurs on obligation to honors all cheque
drawn by the customer against his so long as there is enough money to the credit of
customers. This bank has collects more funds in fixed deposits from the last five years
then current and saving deposits. This bank’s investment sector is government, project,
overdraft, consumer, industry and other sectors. Bank can do more priority in this sector
like, project, government. The trend of fixed deposits and its total mobilization of this
branch bank in very good. In this year all funds utilize in good condition. The correlation
between total current deposit and investment from current deposit is higher degree of
positive correlation. The correlation between total saving deposit and investment from
saving deposit is also higher degree of positive correlation. The correlation between total
fixed deposit and investment from fixed deposit is also higher degree of positive
correlation. Similarly the correlation between total deposit and total investment is also
higher degree of correlation. Rastriya Banijya Bank, Singha Durbar branch office has
collects more funds from fixed deposits than saving and current deposits. This branch has
preferred to collect fixed deposit than other because fixed deposit can use for long time in
other place.

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3.2 Conclusion

Rastriya Banijya Bank branch Singha Durbar is established from beginning period
of RBB. But this report is related with last five years2060 B.S. to 2064 B.S. This branch is
able to collection of resources from the people but the funds can not properly utilization
then the collection ratio. It proved by correlation major. From the above analysis of the
facts the following conclusion has derive:-

The bank’s funds mobilization policy directly based upon sound banking system bankers
mainly advanced loans for working capital which is an essential feature of these types of
instructions. Banks also collects deposits in time and invests medium and long term
loans. Therefore the bank invests in different sector properly because this branch collects
more funds from fixed deposits.

As the data shows fixed deposits has great participation in the total deposit. And the data
shows saving deposit get low interest then fixed deposit.
The interest rate is different in different types of loan like short term and long term loan.
Singha Durbar branch of RBB provides long term loan in high rate of interest and short
term loan in low rate of interest.

The correlation between total current deposit and investment from current deposit is
positive correlation.
The correlation between total saving deposit and investment from saving deposit is
positive correlation.

The correlation between total fixed deposit and investment from fixed deposit is positive
correlation.

Finally the correlation between total deposit and total investment is also positive
correlation

From the data the collection of deposits are not similar because in current deposit
collection is unstable and saving deposits shows that the amount is decreasing and the
fixed deposits collection is highly increasing in last five years.

In other part the investment of banks deposits are all the unstable in the last five years.

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3.3Recommendation
On the basis of above analysis, following recommendation are made:

1. RBB branch Singha Durbar must improve in current and saving deposits like
fixed deposit by introducing a number of attractive deposits schemes.

2. RBB should invest in current deposits also because it makes bank liquidity
assets with bank then bank can provide to customer in time.

3. There is difficulty to withdraw the large amount other from the originally
deposited branch of the bank .It means if any customer open their account in
the one branch then he is unable to withdraw their large amount from other
branch .Therefore banks should provide such facility to the customers will
 automatically increase their collection in deposit by the intra-bank transaction
system.

4. RBB should provide the effective services to customers. It means the bank
provide extra services such as credit card and debit card system and ATM
available in many places. From the facilities customers will motivate and there
collection of funds will increase.

5. RBB branch should make technically fast and accurate because these branch
have to compute with other financial institution. Those institutions are already
fast and accurate in technical sector.

6. RBB branch has not bothered to publish its annual report along with balance
sheet, profit and loss account and related schedule of account which are the
necessary to analyze its performance therefore branch need to publish its
annual report and other related schedule of accounts to make aware its
customers about its financial position.

If all these factors are well evaluated by concerned authority, RBB can maximize it
profitability in future with good will and becomes benefice in the eyes of its customers.
 24

3.4 Bibliography

1 Kinley, Banking and Insurance.

2 B.C. Bajracharya, M.K. Publishers and Distributors.Dr. Shyam Joshi, Banking

and Insurance Talaju prakshan, Kathmandu, Published 2060B.S.

3 Rose, Peter S., Commercial bank management, Irwin McGeaw hill, New
Delhi.

4 Nepal Rastria Bank, Commercial Bank act. 2031B.S.

5 Rastriya Banijya Bank, Singha Durbar Branch –Balance Sheet.

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Abbreviation

Approx: Approximate

ATM: Automatic Teller Machine

BBS: Bachelor of Business studies

B.S.: Bikram Sambat

Ktm: Kathmandu

(r): Correlation

T.U.: Tribhuvan University

U.S.: United States