on/Studies (BBA/S)

Location of College
�� � � � � � � � � � � � � � � � � � � � ���Month /Day/ Year�� � � (Date of
submission)

___________________________________________________________________________________
_____

DECLARATION

I hereby declare that the project work entitled �NAME OF TITTLE TOPIC��submitted to
the Faculty of Management,�Your University's Name, location of your University�is
an original peace of work under the supervision of�Mr. XYZ (Name of the teacher),
faculty member, NAME OF YOURCOLLEGE,�LOCATION OF YOUR COLLEGE, and is submitted in
partial fulfillment of the requirements for the award of the degree of�Bachelor of
Business Administration/Studies (BBA/S). This project work report has not been
submitted to any other university or institution for the award of any degree or
diploma.

Signature
Your Name

Date:�Month/Day/Year�� � � � � � � � � � � � � � � � � � �

* You don't need to colour tour text background

_____________________________________________________________________
SUPERVISOR�S RECOMMENDATION
��������������������������������������������

The project work report entitled "NAME OF YOUR TOPIC"�submitted by�YOUR

NAME�of�COLLEGE NAME,�LOCATION OF COLLEGE, is prepared under my supervision as per
the procedure and format requirements laid by the Faculty of Management,�Name of
your University, as partial fulfillment of the requirements for the award of the
degree of�Bachelor of Business Administration/ Studies (BBA/S). I, therefore,
recommend the project work report for evaluation.

Signature:
TEACHER'S NAME
NAME OF YOUR COLLEGE

Date:Month/Day/Year

______________________________________________________

ABSTRACT

Project has to be described in short.This content must not be large it must be like
a conclusion.�
Half page of content of approximately A4 sized paper will be better.

ACKNOWLEDGEMENT

My project shows my dedication and I have done full justice to this title. This a
course designed by Name of Your University for bachelors student of commerce.
Likewise all the fellow student I also extended a lot of pragmatic knowledge while
devising this task. I feel the excitement in each and every span of time while
creating this report.

I would like to express my gratitude to all supporters who provided me very

informative and precious as well as proper information on penmanship this report. I
would like to thank�(Name of your University)�for providing a chance and allowing
for this study. I am highly appreciative to Lecturers�Mr ABC�and�Mr XYZ�Principal
of�Your College Name�for this assignment and proper instruction without his help my
assignment would not complete at the time.

Besides, I would like to show appreciation to the related Name of the person of the
Name of researched Company, who provided the data and enlightened the historic
background of company. I also indebted to�Mr/s. XYZ�who provided me the data and
the valuable information. I cannot entire this assignment without giving thanks to
the Manager/Manager/Officer of the�Name of researched company.

Thank you!

����������������������������������������������������������
�������������������������������������Your Name
Name of your�College

Location of college.�

_________________________________________________________________________________

TABLE OF CONTENTS

Title Page��� � � � � � � � � �� � � � � � � � � � � � � ... ��i

Declaration� � ��� � � � � � � � �� � � � � � � � � � � �� ��ii
Supervisor�s Recommendation�� � � � � � � � � � � � � � � � � �...�iii
Acknowledgement� � � � � � � � � � � � � � � � � � � � �� ��iv
Abstract� � � � � � � � � � � � � � � � � � � � � � � � �. �v
Endorsement�� � �. � � � � � � � � � � �. � � � � � � � ���� vi
Table of Content� � � � � � � � � � �. � � � � � � � � � ����� vii
List of Tables�� � � � � � � � � ...� � � � � � � � � � � �. � �viii
List of Figures�� � � � � � � � � � � � � � � � � � � � � � ��ix
Abbreviations�� � � � � � � � � � � � � � � � � � � � � � ���x

CHAPTER-I
1. INTRODUCTION� � ��. � � � � � � � � � � � � � � ��Page No.
1.1. Back ground of the study � � � � � � � � � � � � � � � � � � � xx
1.1.1 Meaning and definition of Topic � � � � � � � � ... ... ... ... ... .�
�xx
1.1.2 Relevancy of topic in Nepal� � � � � � � � � � � � � � � xx
����������� 1.1.2.1 List of services/production � � � � � � � � � � � � .xx
1.1.3 An overview of Topic � � � � � � � � � � � � � � � ... �... xx
���������� �1.1.4 Promoters associated with the research company � � � � �
���... ... ...xx
1.1.5 �� Head office and Branches of the company� � � � � � � � � .. ..xx
1.1.6 �� Products and Services of researching company� � � � � � �.� ... ...xx
1.1.7 Meaning of Financial Analysis � � � � � � � �. � � � �.. ... ... xx
1.2. ���� Statement of problem�� � � � � � �. � � � � � � � � �. ... ... ... .xx
1.3. ���� Objective of study� � � � � � � � �. � � � � � � � � � � ... ... xx
1.4. ���� Rational of study � � � � � � � � � � � � � � �. �. �.� ... ... ... ..xx
1.5. ���� Report Structure � � � � � � � � � � � � � � � � � � � ... ... .xx
�����������
CHAPTER �II
2. LITERATURE REVIEW � � � � � � � � � � � � � � � � � �xx
2.1������ Conceptual Review� � � � � � � � � � � � � � � � � �. xx � � � � � �
2.2 ����� Review of Previous Works� � � � � � � � � � � � � � � �xx
2.3 ����� Research Gap� � � � � � �.. � � � � � � . � � � � � � � �xx
�����������������������������������
CHAPTER �III
3. RESEARCH METHODOLOGY � � � � � � � � � � � � � � �xx
3.1. ���� Type of Research � � � � �.. � � � � � � . � � � � � � � xx � ��
3.2 ����� Population sampling� � � � �.. � � � � � � . � � � � �. � xx
3.3 ����� Types of Data �� � � � �.. � � � � � � . � � � � � � � � xx
3.4������ Data collection procedure� � � � �.. � � � � � � � � � � � xx
3.5 ����� Instruments� � � � �.. � � � � � � . � � � � � � � � � xx
3.6������ Statistical Tools and Techniques � � � � �.. � � � � � � . � � xx
3.7������ Limitations of the Study � � � � �.. � � � � � � . � � � � � �xx

CHAPTER � IV
4. RESULTS AND FINDINGS � � � � � � � � � � � � � � � � �. xx
4.1������ Presentation of data � � � � �.. � � � � � � . � � � � � �. xx
� � � � � � � � � � � � 4.2 �����Data analysis� � � � �.. � � � � � � . � � � � � �
� � xx
�4.3 ���� Major Finding � � � � �.. � � � � � � . � � � � � � � � xx

CHAPTER �V
5. DISCUSSIONS, CONCLUSION �. � � � � � � � � � � � � � � ...xx
5.1������ Discussion � � � � �.. � � � � � � . � � � � � � ...� � xx
� � � � � � � � � � � � 5.2 ����� Conclusion � ... � � � � �.. � � � � � � . � � �
�xx � � � � ��

�REFERENCE � � � � �.. � � � � � � . � � � � � � � � � � �xx�

LIST OF TABLES

TABLE���������������������������������������������� �����������������������
����������� ���������PAGE NO.
4.1����Current Ratio � � � � � � � � � � � � � � � �. xx
4.2����Cash and bank balance to deposits ratio� � � � � � � � xx� ��
4.3����Long-term Debt to Net worth Ratio� � � � � � � � �. xx
4.4����Net worth to Total Liabilities Ratio� � � � � � � � �. xx
4.5����Capital Adequacy Ratio� � � � � � � � � � � � �.. xx
4.6����Loan and Advances to Total Deposit ratio� � �. � � � �xx
4.7����Credit and Investment to Total Deposits Ratio� � � � � �xx� � �
4.8����Interest Expenses to Total Expenses Ratio� � � � � � � xx
4.9����Total Interest Income to Credit & Investment Ratio� �.. � .. xx
4.10 Return on Assets � � � � � ,.. � � � � � � � � � xx
4.11 Return on Shareholder�s equity� � �. � �. � � � � � xx
3.12 Net Interest Earned to Total Assets Ratio� � � � �. � � xx

LIST OF FIGURES
FIGURE��������������������������������������������������������������
������������������ PAGE NO.

4.1��Current Ratio... � � � � � � � � � � � � � � � � � � � � xx
4.2��Cash and bank balance to deposits ratio � � � � � � � � � � � �� xx
4.3��Long-term Debt to Net worth Ratio� � � � � � �. �. �. �. � �. �xx
4.4��Net worth to Total Liabilities Ratio� � � � � � � � � � � � � � xx
4.5��Capital Adequacy Ratio� � � � � � � � � � � � �� � �. � �� xx
4.6��Loan and Advances to Total Deposit ratio � � � � � � � � �. � �.� xx
4.7��Credit and Investment to Total Deposits Ratio� � �. � � �. �. �. �..� �xx� � �
�
4.8��Interest Expenses to Total Expenses Ratio� � � � � � �. � � � � ...xx
4.9��Total Interest Income to Credit & Investment Ratio� � � � � � � � �.xx
4.10��Return on Assets����������� � � � � � � � � � � � � � �. �� � xx
4.11 Return on Shareholder�s equity� � � � � � � � � �. �. � � � �xx
4.12 Net Interest Earned to Total Assets Ratio� � � �. � � � � � � � � xx
LIST OF ABBREVIATION

ATM�������������������������� Automated Teller Machine�����

A.D.��������������������������� Anno Domi
HBL��������������������������� Himalayan Bank Limited
LC�� ��������������������������� Letter of Credit
NRB �������������������������� Nepal Rastra Bank
No. ���������������������������� Number
����������� RBB��������������������������� Rastriya Banijya Bank�����������
U.S. ��������������������������� United States
etc.����������������������������� Etcetera
i.e.������������������������������ For example
%�������������������������������� Percentage

��

CHAPTER-ONE
INTRODUCTION

1.1��� Background of the study

It is very hard to collect the correct information of the origin of bank. The word
�Bank� has derived from the 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 12th�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,
which was established in 1401 A.D was the second bank of the world. Similarly, Bank
of�Geneva�(1407), Bank of Amsterdam (1609), Bank of Hindustan (1770) were
established. The first central bank was the �Bank of England� which was established
in 1844 AD.

Bank is a financial institution, which is engaged in monitory transaction. Bank has

always been the most importance and largest financial intermediates. Banks collect
the scattered money from public providing those interests and services. This
collection becomes the capital for the bank to invest. �Banking means the accepting
of money for the view of lending or investment of deposit from the public repayable
on demand or otherwise and withdraw able by cheque, draft or otherwise�, is
according to Banking Regulation Act 1949 of�India. World Bank says �Banks or a
financial institution that accepts funds in the forms of deposit repayable on
demand or at short notice.�

1.1.1 History of Bank in Your Country

In the context of Nepal, like as in the other countries the goldsmith and landlords
where the ancient banker. The Nepalese people were 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 Sing (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 30th Kartik 1994 B.S.and started to perform proper
banking activities. With the realization of central bank to develop monetary policy
as well as to have proper control over commercial banks and banking sectors Nepal
Rastra Bank was established on 14th Baishak 2017B.S. under Nepal Rastra Bank Act
2015 B.S. Likewise, Rastra Banijya Bank under the full ownership of government was
established on Magh 2022 as per �Rastra Banijya Bank Act 2015 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 encourage 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 Ltd. U.A.E. subsequently following its established Nepal Indo Suez
Bank France, Nepal Grinlands Bank England on 16th Marg 2043B.S. with its joint
venture of Grinlands Bank England, Himalayan Bank Ltd on 5th Marg 2049B.S. with the
joint venture of Habib Bank of Pakistan, Nepal SBI Bank Ltd. in28th Ashad 2050
B.S.with joint venture of State Bank of India Nepal Bangladesh Bank Ltd. on 28th
Jestha, 2050B.s. with the joint venture of International Finance Investment and
Commercial Bank, Everest Bank Ltd. on 1st Kartik 2051B.S. with joint venture of
Punjab National Bank Ltd of�Kathmandu�on 28th Falgun 2051B.S. with joint venture of
the Siam Commercial Bank, Thailand.

Since, the financial sector in Nepal is small, it is growing fast. At� present
banking system comprises� of�� NRB, 16� commercial� bank� and� many� financial�
companies, contractual, saving�� institution� and��� non- government��
organization�� conduction�� limited�� banking activities transaction. The umbrella
act set out regulation for licensing, supervision and cancellation of commercial
bank. Currently, the growths of commercial banks are shown below:-
1.1.2 List of Commercial Nepal Bank
1.������������������Siddhartha Bank Limited
2.������������������Nepal Bank Limited
3.������������������Rastriya Banijya Bank Limited
4.������������������Agriculture Development Bank Limited
5.������������������Nabil Bank Limited
6.������������������Nepal Investment Bank Limited
7.������������������Standard Chartered Bank Nepal Limited
8.������������������Himalayan Bank Limited
9.������������������Nepal SBI Bank
10.��������������Nepal Bangladesh Bank Limited
11.��������������Everest Bank Limited
12.��������������Bank of Kathmandu Lumbini Limited
13.��������������Nepal Credit and Commerce Bank Limited
14.��������������Kumari Bank Limited
15.��������������Laxmi Bank Limited
16.��������������Global IME Bank Limited
17.��������������Citizens Bank International Limited
18.��������������Prime Commercial Bank Limited
19.��������������Sunrise Bank Limited
20.��������������NMB Bank Nepal Limited
21.��������������Nabil Bank Ltd Limited
22.��������������Machhapuchchhre Bank Limited
23.��������������Mega Bank Nepal Limited
24.��������������Civil Bank Limited
25.��������������Century Bank Limited
26.��������������Sanima Bank Limited
27.��������������Janata Bank Nepal Limited
28.��������������Prabhu Bank Limited
Source: nrbbank.com� � ���������

1.1.3 Introduction of Nabil Bank

A commercial bank is a financial institution which collects saving from many
persons and institutions and provides credit or loan facility to different
industrial and commercial business. Commercial banking business consists of
changing cash into hank deposit and bank deposit into cash, transferring bank
deposit form one person or institution to other, giving bank deposit in exchange
for cheques, bills of exchange, government securities etc.

Nepal Bank Limited established in 1994 BS is the first commercial bank in�Nepal.
Commercial banks perform various functions. Among them, accepting various types of
deposit is the main function of commercial banks. Commercial banks are directly
related with the people and institution. The commercial bank is an important bank.
Its function is very attractive for people. Although these banks are� truly
inspired� with� the objective� of� gaining� profit, these commercial banks are also
established� to� accelerate�� common�� people�s� economic� welfare� and� facility�
to� make available� loan� to� the� agriculture, industry,� and� commerce� and� to
provide the banking services to� the public and the state. In Nepal the commercial
bank perform the following functions. Of the many function of the commercial bank
acceptance of deposits is one of them. The bank allows for opening the three types
of accounts to accept deposit for their customers. They are current, saving and
fixed deposit account. People can collect their money in one of the three as their
need. But the interest is given to the saving and fixed account. The commercial
bank performs the important function of accepting all sorts of deposits.� It earns
profit by investing that money in another place.

Another function of the commercial bank is to provide loan. A commercial bank

provide loan to a person, company and institution etc. A bank can earn a lot of
profit from it. A bank is capable of gain benefit in its banking development by
receiving the interest as pre law and its internal policies. It provides the loan
by accepting the security of debtor. A� bank� flow� the loan against� a� third�
person� guarantee� or� with� the� pledge of the third person. A bank provides the
loan on basis of agreement or deed of loan. It provides loan on basis of the
following deed securities:

�? With the pledge of goods, .and pledge of gold and silver.

�? With the security of immovable property���������������
�? With the security of other similar goods.

Nabil Bank Limited (Nabil) commenced its operation on 12 July, 1984 as the first
joint venture bank in Nepal, Dubai Bank Limited.�Dubai�(Later acquired by Emirates
Bank International Limited,�Dubai) was the first joint venture partner of Nabil.
Currently NB (international) limited. Ireland is the foreign partner. Nabil Bank
limited had the official name Nepal Arab Bank Limited till 3lst December 2001.
Nabil is the pioneer in introducing maims innovative products and marketing concept
in banking sector of�Nepal�with 15 branches and 2 counters in all major cities. It
is the only bank having its presence at�Tribhuvan�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, as a pioneer in introducing many innovative products and marketing concepts

in the domestic banking sector, represents a milestone in the banking history
of�Nepal�as it started an era of modern banking with customer satisfaction measured
as a focal objective while doing business. Operations of the bank including day-to-
day operations and risk management are managed by highly qualified and experienced
management team. Bank is fully equipped with modern technology which includes ATMs,
credit cards, state-of-art, world-renowned software from Infosys Technologies
System, Banglore, India, Internet banking system and Telebanking system. Nabil
provides a full range of commercial banking services through its outlets spread
across the nation and reputed correspondent banks across the globe. Moreover, Nabil
has a good name in the market for its highly personalized services to the
customers. At the time of commencement it had Rs 100 million as Authorized Capital.

1.2 Statement of Problems

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 employ its funds suitably it is not possible to
maximize profit. A bank has to make decisions with a framework of statutory
requirements of credit regulation by center bank, as well as the national
objectives that are determined in the matter of the provision of credit from time
to time. What is the trend of risk and return pattern along the studied time
horizon?
* What is the real and adjusted nature of EPS, BVPS etc.?
* Is Nabil Bank common stock really suitable for investment?
* What is nature of ROE, EPS, P/E ratios growth is equity etc?

1.3 Objective of the study

The main objective of the study is to fulfill the partial requirement of T.U to
complete BBS project. The objective of this fieldwork is to analyses deposits
collected in NABIL. The study intends to present a brief and clear picture of
deposit and its utilization. The objective of the study includes.
*���������To find out deposit trend of NABIL bank.
*���������To analyses the cost of deposit
*���������To analyses whether the deposits are being properly utilized or not

1.4 Rational of the study

Deposit collection is the major function of all commercial banks, which help to
carry out almost all transaction of the bank. Mostly among the various deposit
features provided by commercial banks, fixed and saving deposit are considered to
be more important In the case of term deposit although the banker pay interest
(longer the period higher the interest).
*���������������������To find out the position of Nabil Bank
*���������������������To find out the strength and weakness of Nabil Bank
*���������������������To find out the marketing style and public relation of the
bank.

1.5 Report Structure

This study has been comprised into three sections, each devoted to some aspects of
deposit analysis of commercial banks (Nabil bank ltd). The titles of each of these
sections are summarized and the contents of each of these chapters of this study
are briefly mentioned here.
Chapter 1������� :���������� Introduction / Background
Chapter 2������� :���������� Related Literature Review
Chapter 3������� :���������� Methods
Chapter 4������� :���������� Results and findings
Chapter 5������� :���������� Discussion and Conclusion
The first section deals with the subject matter consisting General Background,
Nature of the Study, Objectives of the Study, Methodological Aspects, Limitations
of Study. The second section is concerned with nature of study Related literature
review. The third section concerned with the researches methods �of the study. The
fourth section results and findings and presentation of data through tables,
diagrams for five years. The fifth section discussions and conclusion the reference
is incorporated at the end of the study.

CHAPTER TWO
LITERATURE REVIEW

2.1 Conceptual Review

Deposit collection is one of the main features of commercial bank. A commercial
bank receives deposit in different accounts namely current, fixed and saving. These
are the direct deposits. When a bank receives cash it grants a right to the
depositors to withdraw it whenever they like Nepal Banijya Bank Act has regulated
all the deposit 2031. The act specifies �Deposit� means amount deposited in
current, fixed and saving deposit account of bank or financial institutions. Among
many functions of a commercial bank the main function is deposit function, which
all the commercial banks perform, in simple terms; deposit is a function of
collecting surplus from savers.

2.2 Review of Previous Works

Bank accepts deposit from those that can save but can�t utilize profitably. People
know that by depositing in the bank they could avail with many more facilities. By
saving in the bank people have the opportunity of earning interest, useful
contingencies; avoid risk such as theft lost accidents, the deposit of commercial
banks is increasing because people know its importance. So banks accept money on
current saving and fixed deposit accounts. Deposits are the main source of capital
for the lending activities of the banks. Banks utilize efficiencies to attract more
deposits to increase credit activities. Deposits are withdraw able according to the
terms of contract with the depositors to attract the people. The bank maintains
different types of deposit accounts.

According to Commercial Bank Act, the saving account means an account of amounts
deposited in a bank for savings purposes.

Saving Account are generally opened for the savings of customers (individuals,
nonprofit organization, charitable trusts, clubs, associations and cooperative) who
want to save for meeting future needs, Savings accounts is suitable for the
customers who do not want to withdraw frequently or who do not want to keep certain
amount for fixed long period.

2.3 Research Gap

Various studies have been conducted in the past on financial analysis of commercial
banks in the US and other regions were found done. The research paper done in the
context of Nepal mainly emphasized on liquidity, profitability and leverage of the
commercial banks. These studies lack micro-level analysis and found applying
traditional analysis of financial performance. In the context of Nepalese banking
environment, there are few academic researchers found conducted in the frame work.
However these researches lack analysis of the�component i.e Sensitivity of Market
Risk. This study attempts to evaluate financial performance of Himalayan Bank Ltd
and NABIL Bank Ltd..

CHAPTER THREE
RESEARCH METHODOLOGY

3.1. Research Design

The research methodology is the process of arriving to the solution of the problems
through planned and systematic dealing with the collection, analysis and
interpretation of facts and figures. As the research entirely considers about the
about �Deposit Analysis of NABIL Bank� The main purpose of this study is to show
deposits and its utilization in NABIL with its financial positions, collection and
uses of funds, its prospects and its position in context of Nepal as well as to
recommended suggestions for its improvement. Those research methodologies have been
used which proves helpful to deposit analysis. For the purpose of achieving the
objective, the following methodology is used. The data has been collected by
acquiring various kinds or reposts, bulletins and journals from the organization.
Similarly data has been acquired from NRB also.

The study report is based mostly on secondary information of NABIL. In addition to

this, reference has been made in library consult, class lectures, Related books of
banking, financial management and accounting during the preparation of this study.

3.2 Population and sample

The 28 commercial banks of the country Nabil Bank Ltd has been chosen and their
performances have been analyzed. Due to Lack of Penal access study mainly depends
on the balance sheet prepared by Nabil Bank Ltd, which is the secondary
source.�Nabil Bank Ltd has been selected for the present study. Financial statement
of this bank for the last five years has been taken as the sample for this purpose.

3.3 Type of Data

For the preparation of this report different kinds of books are followed. In this
report, all the data collected is secondary in nature. Almost all the data has been
collected form published annual reports, brochures etc. Mostly all the data are
collected from the concerned bank.
Secondary Data Source:
In this study, the main source of data is secondary which are collected from pre-
published data sources.�The financial data from the published documents and audited
financial statements were manually extracted into the computer files of Microsoft
Excel program which acted as master database file. The data was refined further
into spreadsheets
tocarry�out�financial�ratio�calculation�and�graphical�illustrations�throughmathemat
ical functions and Chart program of the Excel�program.

3.4 Data Processing Techniques

The data collected from the above stated sources has been classified tabulated and
interpreted for easier study. The data collected are classified, tabulated and
arranged in manner to make it easily understandable with the use of tables in
chronological order. After classification the data is tabulated.

3.5 Techniques of Analysis

Financial ratios are the major tools used�for the descriptive analysis of
the�study. In addition to the financial tools, simple statistical tools are also
used.�
Financial Ratio Analysis tools are used to determine the performance of the banks
in the framework components. These ratios are categorized in accordance of the
components.�Following category�of key ratios�are used to analysis the relevant
components in terms.:

3.6 Limitation of the study

The study does not present detailed analysis of deposit in NABIL due to lack of
time relevant data and resources. This study is limited to the information that was
available from the bank and other sources.
*���������Annual reports of NABIL
*���������Annual reports of NRB
*���������This study only covers the data of five years only.

CHAPTER �FOUR
RESULTS AND FINDINGS

4.1 Data Presentation and Analysis

Table 4.1
Total Deposit position of NABIL (Rs. in million)
YearFixedCurrentSavingOthersCall & Short DepositTotal
Growth %2013244627044972439494515506-22014225230345230390254113448-13201523102688
5994326280114119520162079279970263422341145873201734492910877136538511934733
����������� Source: NABIL Bank Ltd., Annual Financial Statement

Figure 4.1
Total Deposit position of NABIL (Rs. in million)

This table shows the total and finger 4.1 deposit mix of NABIL during the period of
six years. During the last years the current, margin or other deposits have a
fluctuating collection in the deposit mix of NABIL. Here, total deposit on NABIL in
was Rs.15839 million which were 0.006% less than that of year 2003, in 2013 by 2%.
In the year 2014 the deposit decreased by 13%. But in the year 2015 the total
deposit increased by 5% to Rs.14,119 million. In the year 2016 the deposit
increased by 3% which reached to Rs.14,587 million .In the year 2017, the deposit
increased by 33% which reached to Rs.19,347 million.

Table 4.2
Current Deposit Position of NABIL ( Rs. In Million)
YearCurrent DepositGrowth (Rs.)Growth %20132704-148-5201430343311120152688-346-13
201627991114201729111124Source: NABIL Bank Ltd., Annual Financial Statement
Figure 4.2
Current Deposit Position of NABIL ( Rs. In Million)

Above table and finger 4.2 shows that the current deposit of NABIL. In the year
�was Rs.2,851 million, which was decreased by 1% than the previous year. There had
been great decreased in current deposit during the year� by 1% corresponding to Rs.
30 million. But there was a decrease in the year 2013 by 5% and the current deposit
reached Rs. 2,704 million during year . In the year 2013 current deposit was Rs.
3,034 million which is Rs. 331 million more than that of year 2014. But in the year
2015 current deposit collection decreased by 13% corresponding to Rs.346 million
increases. In the year 2016 current deposit collection increased by 4%
corresponding to Rs.111 million increased. Now, in the recent year 2017, the
current deposit is increased by 4% i.e.Rs.112 million and has reached to Rs.2,911
million.

Table 4.3
Saving Deposit Position of NABIL (Rs. in million)
YearSaving DepositGrowth Rs.Growth %20134972551201452302575201559947651320167026
10321520178771174525Source: NABIL Bank Ltd., Annual financial Statement

Figure 4.3
Saving Deposit Position of NABIL (Rs. in million)

Here is the figure of saving deposit of NABIL. �In year� it was increased by 18%
and in the year 2013 it was increased by 5%. In the year 2014 saving deposit was
Rs.5,230 million which is Rs.257 million less than of year . In the year 2015 it
again increased by 13% and reached Rs. 5,994 million. In the year 2016 it again
increases by 15% and reached Rs. 7,026 million. In the year 2017, it continues to
increase and reaches to Rs.8,771 million which is the increase by 25% i.e. Rs.1745
million.
From the above table, saving deposit trend is seemed to be increasing. Most of the
people deposit their fund in saving deposit account. So, NABIL should attract
people towards saving deposit and manage its incremental trend.

Table 4.4
Fixed Deposit Position of NABIL (Rs. in million)
YearFixed DepositGrowth (Rs.)Growth (%)20132446-1273-220142252-195-920152079-231-11
20162079-231-1120173449137067Source: NABIL Bank Ltd., Annual Financial Statement

Figure 4.4
Fixed Deposit Position of NABIL (Rs. in million)

This above table and figure 4.4 shows the fixed deposit of NABIL. In the year it
again decreased by 106% to Rs.3719. But there was decrease in fixed deposit during
the year 2013. It decreased by 2% to Rs.2446. In the year 2014 it was increased by
9% and reached Rs.2252 million. In the year 2015 it was increased by 11% and
reached to Rs.2310. In the year 2016, it has again increased by 11% and reached to
Rs. 2079 million. In the year 2017, it has again increased by 69% and reached to
Rs. 3449 million. Above table shows that the growth in fixed deposits it is rather
fluctuating. Since the fund of fixed deposit can be utilized for long-term
investment, it should be made consistent. So, such increase and drastic decrease
affects the profitability of the company.

Table 4.5
Interest Bearing Deposit Trend of NABIL (Rs. in million)
YearInterest Bearing DepositGrowth (Rs.)Growth (%)201312363-222-2201410022-2341-3
2015111061084102016114463403201716071462529Source: NABIL Bank Ltd., Annual
Financial Statements

Figure 4.5
Interest Bearing Deposit Trend of NABIL (Rs. in million)

From table and finger 4.5 Interest bearing deposit of NABIL. In the year it was
increased year 2013 it again decreased by 2% to Rs. 12,363. But there was decrease
in interest bearing deposit during the year 2014 it decreased by 23% to Rs.10,022.
In the year 2015 it was increased by 10% and reached to Rs.11,106 million. �But
there was increase in interest bearing deposit by 3% in year 2016 and reached to
Rs. 11,446. In the year 2017, it has increased to 29% and has reached to Rs.16,071
million.

Table 4.6
Non-Interest Bearing Deposit Trend of NABIL (Rs. in million)
YearNon-Interest bearing depositGrowth (Rs.)Growth (%)20133142-112-3201434242828
20153012-412-14201631401284201732761364Source: NABIL Bank Ltd, Annual Financial
Statement

Finger 4.6
Non-Interest Bearing Deposit Trend of NABIL (Rs. in million)

In above table and figure 4.6 the non-interest bearing deposit of NABIL In the
Similarly during the year 2013 it was decreased by 3% and reached to Rs.3,142. In
the year 2014 it increased by 8% Rs. reached Rs.3,424 million. In the year 2015 the
non-interest bearing deposit decreased by 14% million which is corresponding to
Rs.3,012. And in the year 2016 the interest bearing deposit increased by 4% and
reached Rs.3,140. Now, in the recent year 2017, the non-interest bearing deposit
has increased by 4% and reached to Rs.3,276 million.

Table 4.7
Interest Expenses on Deposit (Rs. in million)
YearInterest on DepositTotal Deposit Rs.Ratio%2013457155062.942014307134482.282015
265141191.882016244145871.672017359193471.86Average14.2Source: NABIL Bank Ltd,
Annual Financial Statement

The table and finger 4.7 interest expenses on deposit are presented. In the year
2013 the total collection of deposit was Rs.15,506 while interest on deposit was
Rs. 457 of the total deposit, which is 2.29% ratio. In the year 2014 total deposit
and interest of rate on deposit are Rs. 12,448 and Rs. 307, which is 2.28% of total
deposit. In the year 2015 the total collection of deposit was 14,119 while interest
on deposit was 265, which is only 1.88% of total deposit. In current year 2016 the
collection of deposit was 14,587 while interest on deposit was 244 which is 1.67%.
In the year 2017 the collection of deposit was Rs. 19,347 million and interest on
deposit.

Table 4.8
Cost of Deposit of NABIL (Rs. in million)
YearTotal DepositTotal Deposit ExpensesInterest bearing DepositCost of Deposit %
201315506457123633.7201413448307100223.06201514119265111062.4201614587244114462.13
201719347359160712.23Source: NABIL Bank Ltd, Annual Financial Statement

Figure 4.8
Cost of Deposit of NABIL (Rs. in million)
Form the table and finger 4.8 year 2013 the cost of deposit was Rs.457, which is
3.7% of total interest bearing deposit of Rs. 12,363. In the year 2013the cost of
deposit decrease slightly with decrease in deposit was 3.06% i.e. Rs.307 million
when the total interest bearing deposit is Rs.10,022 million. In the year 2014 the
cost of deposit decreased in deposit and it was 2.4% i.e. Rs.265 million when the
total interest bearing deposit is Rs.14,119 million. In current year 2016 total
deposit is Rs. 14,587 million while a total deposit expense is Rs. 244 million and
interesting bearing deposit is Rs. 11,446 million. In the year 2017 total deposit
is Rs. 19,347 million while a total.

deposit expense is Rs. 359 million and interest bearing deposit is Rs. 16,071
million and the ratio is 2.23%. Therefore, cost of deposit reached at 3%.

Table 4.9
Deposit Lending Ratio (Rs. million)
YearTotal Deposit (Rs.)Total Loans And Advance (Rs.)Deposit Lending%2013155067438
47.96201413448775657.67201514119818957.992016145871058672.572017193471292266.79
Average59.26Source: NABIL Bank Ltd, Annual Financial Statement

Finger 4.9
Deposit Lending Ratio (Rs. million)

The above the table and finger 4.9 analyses shows the ratio of total loans and
advances to total deposits .During the year 2013 the deposit-lending ratio was
47.96% of total deposit. The ratio decreased by 47.96% of total deposit in the year
2013 the total deposit decreased but the loans and advances could be increased.
Total loans and advances in the year 2015 were 57.99% of total deposit
corresponding to Rs.8,189. In the year 2016, both total deposit and loan and
advances has been increased. Therefore, the deposit-lending ratio has reached to
72.57% of total deposit. In the year 2017 the deposit-lending ration was again
increased by 66.79% and reached Rs. 12,922.

Table 4.10
Ratio of Interest Bearing Deposit to Total Deposits (Rs. in million)
YearInterest bearing depositTotal depositRatio%2013123631550679.7320141002213448
74.522015111061411978.652016114461458778.472017160711934783.07Average79.98Source:
NABIL Bank Ltd, Annual Financial Statements

Table 4.10
Ratio of Interest Bearing Deposit to Total Deposits (Rs. in million)
In the above table and finger 4.10, ratio of interest bearing deposit to total
deposits of NABIL, in the year was 79.45% of total deposits. But in the year 2013
it was 79.73% corresponding to Rs.15,506. In the year 2014 both the interest
bearing deposit and total deposit decreased and the interest bearing deposit shared
74.52% of total deposit of Rs. 10,022 million. It again decreased in year 2015 and
the ratio was 78.65% of total deposit. In the year 2016 interest-bearing deposit is
Rs.11,446 corresponding to Rs. 14,587 million by 78.47%. Now, in the year 2017,
both the interest bearing deposit and total deposit has increased. But the ratio
reached to 83.07% of total deposit.
Table 4.11
Ratio of non-interest bearing deposit to total deposit (Rs. in million)
YearNon-Interest bearing depositTotal DepositRatio%201331421550620.262014342413448
25.46201530121411921.33201631401458721.53201732761934716.93Average21Source: NABIL
Bank Ltd, Annual Financial Statement

Finger 4.11
Ratio of non-interest bearing deposit to total deposit (Rs. in million)
In the above table finger 4.11, ratio of non-interest bearing deposit to total
deposits of NABIL, in the year� the ratio is 20.54 % of total deposits
corresponding to non-interest bearing deposit Rs.3,254.But in the year 2013 it was
20.26% corresponding to Rs.3,142. Similarly in the year 2014 non-interest bearing
deposit shared 25.46% of total deposit Rs. 13,448 million. In year 2015 non-
interest bearing deposit shared only 21.33% of total deposit as only Rs.3,012
million was collected. In the year 2016 non-interest-bearing deposit is shared only
21.53% of total deposit corresponding to Rs.3,140. Now, in the current year 2017,
it shared to 16.93% of total deposit where non-interest bearing deposit and total
deposit are Rs.3,276 and Rs.19,347 million respectively.
Table 4.12
Ratio of current deposit to total deposit (Rs. in million)
YearCurrent depositTotal DepositRatio%201327041550617.44201430341344822.5620152688
1411919.04201627991458719.19201729111934715.04Average����������18.54Source: NABIL
Bank Ltd, Annual Financial Statement

Finger 4.12
Ratio of current deposit to total deposit (Rs. in million)

From the above table and 4.12, in the year current deposit contributed .In the year
2013 current deposit was Rs.2,851, which is 17.43%. The current deposit collection
was Rs.2,704 million in 2014. In the year 2014 current deposit increased and shared
total deposit by 22.56%. The current deposit collection was Rs.3,034 million this
year. In the year 2015 current deposit decreased to 19.19% the amount of Rs.2,688.
In the year 2016 current deposit increased to 15.04% where current deposit and
total deposit are Rs. 2,799 and Now in the year 2017 current deposit ratio was
increased by15.04% and reached to Rs. 2,911 million where total deposit was Rs.
19,347 million.
Table 4.13
Ratio of saving deposit to total deposit (Rs. in million)
YearSaving depositTotal DepositRatio%201349721550632.07201452301344838.8920155994
1411942.45201670261458748.17201787711934761.13Average42.3Source: NABIL Bank Ltd,
Annual Financial Statement

�4.13
Ratio of saving deposit to total deposit (Rs. in million)
From the above table and finger 4.13, in the year saving deposit contributed total
deposit by 31.04%. The saving deposit collection was Rs.4,917 saving deposit
Rs.4,972 million which was 32.07% of total deposit of Rs.15,506 million. In the
year 2014 saving deposit Rs.5,230 million which was 38.89% of total deposit of
Rs.13,448 million. In the year 2015 the saving deposit Rs.5,994 million which was
42.45% of� total deposit of Rs.14,119 million .Similarly, in the year 2016 saving
deposit Rs.7,026 million which was 48.17% of total deposit of Rs.14,587 million.
And in the year 2017, saving deposit has increased to 61.13% of total deposit.
Here, saving deposit and total deposit amounted to Rs.8,771 and Rs.14,347 million
respectively.

Table 4.14
Ratio of Fixed deposit to total deposit (Rs. in million)
YearFixed depositTotal DepositRatio%20131550615.77201422521344816.752015231014119
16.36201620791458714.25201734491934717.82Average����������21.56Source: NABIL Bank
Ltd, Annual Financial Statement

Finger �4.14
Ratio of Fixed deposit to total deposit (Rs. in million)

From the above table and finger 4.14, in the year� fixed deposit contributed total
deposit by 48.41% where fixed deposit was Rs.3,719. It had reached to15.77 % in the
year 2006/2007. In the year 2014, the fixed deposit collection was Rs. 2252 when
total deposit collection was Rs.13448 and its ratio was 16.75%.Similarly, in 2015
fixed deposit contributed total deposit of Rs.14119 million by Rs.2310 million
which is 16.36% of total deposit. In the year 2016 fixed deposit contributed total
deposit of Rs.14587 million by Rs.2079 which is 14.25% of total deposit .Now, in
the current year 2017; fixed deposit contributed total deposit by 17.82%. Here, the
fixed deposit and total deposit amounted to Rs.3449 and Rs.19347 million
respectively.

4.2 Data Analysis

None of the organizations is perfect in each and every way. I here are some
weaknesses and threats, which affect the organization�s performance. It may have
lots of strength to be proud of but besides with some weakness and threats as well.
And the organization does not remain same forever there will be lots of
opportunities in order to expand the transactions. So NABIL has also its strength
to be proud, some weakness to be recovered and threats to be faced patiently.

4.3 Major Findings

*���������Interest expenses on deposit of NABIL are also quite high but there has
been a decreasing trend of interest expenses till the year 2017.
*���������Similarly, the cost of deposit during the year 2017 is also quite high
but there has been decreasing trend in the later year. So, it helps to increase the
efficiency to bank.
*���������By the analysis of deposit landing we can conclude that the bank is able
to utilize its deposits a greater extent.
*���������Thus, the bank�s performance is effective in profitability and towards
the customers and may attract more customers.

CHAPTER - THREE
DISCUSSION, CONCLUSION

5.1. Discussion
A bank is an institution, which deals in money. A bank is like a reservoir. It
draws surplus money from the people who save and lend them to the people who want
to use it for productive purpose. In this process the bank earns commission. The
rate of interest paid to the depositors is generally lower than the rate charged to
the borrowers. The difference between these two rates of interest is the profit of
the bank. Deposit collection is the main function of commercial bank. The present
study has been undertaken to examine and evaluate the financial performance of
NABIL. The financial statements of five years that is from 2000/01 to 2004/05 have
been examined for the purpose the study. The study has resorted mainly to secondary
data that has been first processed and analyzed comparatively. Individual interview
with the management personnel has been taken whenever necessary. This study is
exploratory as well as analytical sometimes. NABIL was established in 12th�July
1984, which was the first joint venture bank in Nepal. Among many joint venture
banks, it is a leading one, which is always running in profit due to its proper
management and good policies. Data that I have presented is all from the secondary
sources, which are in the annual reports or other printed matters. A customer can
be account holder when he opens account. There are the numbers of rules and
procedures regarding opening different types of accounts. The interest rates on
different accounts are different

5.2. Conclusion
*���������The deposit of NABIL is in increasing trend. The share of fixed deposit
is more than that of savings, current, margin and other deposits in the deposit mix
of NABIL.
*���������The trend of interest bearing deposit has been gradually increasing but
there has been more fluctuation in non-interest bearing deposits, similarly, there
is also more fluctuation in interest expenses on total deposits.
*���������The trend analysis shows that the deposit of NABIL is in increasing
trend. In addition to this, the bank is being able to satisfy its customers and in
providing higher quality and newer services to them.
*���������Although NABIL has a strong financial base and capital structure as well
as good market status and reputation in order to attract new customers and increase
deposit collection NABIL should introduce new schemes.
*���������Customer services should be diversified and should further be
accommodated.
*���������Interest rate on deposit should be competitive with other commercial
banks.
*���������The bank should aim towards increasing its customers but it must also
provide the quality services to the present customers. For this the bank must make
plans and policies keeping customers in mind.
*���������Bank should also pay attention towards the priority sector and industrial
sector for lending loans to develop the economic condition of the country.
Bank should provide more facilities to the staff, it has to provide job
satisfaction, training and should encourage its staff�.

REFERENCE

�������������������������������������������������������.
Annual Report of NABIL from 2013 to 2017
Brigham, Eugene F., �Fundamental of Financial Management�, Holt Rinchtand Winston:
The Dryden Press, 1998.
Ghimire, Shiva Raj (2011) �Fundamentals of Investment�: Kathmandu:
Khadka, Sherjung. (2011), �Banking and Insurance�. Kathmandu: Asia Publication.
Khan, M.Y. and Jain P.K., �Management Accounting�, New Delhi: McGraw Hill
Publishing Co. Ltd.
Khan, M. Y. and P.K., �Financial Management Policy�: New Delhi: McGraw Hill
Publishing Co. Ltd., 1978.
Pradhan, Radhe S (2009). �Financial Management�:Kathmandu: Buddha Academic
Enterprises Pvt.Ltd: Nepal
Shrestha, M.K. and Bhandari, D.B (2010),��Financial Markets�and Institution�.
Asmita Publication, Bhotahity, Kathmandu.
Singh, H.B. (2008), �Banking and Insurance�. Kathmandu: Asia Publication.
S.P. Gupta,�Statistical Method�.
Tiwari, Drona Prasad (2008). �Business Statistics�: Chabahil: Srijana Books
Publishers and Distributors
Van Horn James C.,�Financial Management Band Policy�: New Delhi Prentice Hall of
India Pvt. Ltd., 1986.
Van Horn James C.,�Fundamental Financial Management�: U.S.A. Prentice Hall Inc.
Engle Wood Cliff, 1983.

Website:
www.nabilbank.com
www.nrb.org.np