MOBILIZATION OF SAVING DEPOSIT OF NABIL BANK

LIMITED

A Project Work Report

By

Badri Narayan Muraw

T.U. Registered Number: 7-2-1029-7-2016
Bhairahawa Namuna Campus

Submitted to

The Faculty of Management

Tribhuvan University
Kathmandu

In Partial Fulfillment of the Requirements for the Degree of

BACHELORS OF BUSINESS STUDIES (BBS)

Bhairahawa

Feb, 2020
 DECLARATION

I hereby declare that the project work entitled “MOBILIZATION OF SAVING DEPOSIT OF
NABIL BANK LIMITED” submitted to the Faculty of Management, Tribhuvan Univercity,
Kathmandu is an original peace of work under the supervision of Mr. ,
faculty member BHAIRAHAWA NAMUNA CAMPUS, BHAIRAHAWA and is submitted in
partial fulfillment of the requirements for the award of the degree of Bachelors of Business
Studies (BBS). This project work report has not been submitted to any other university or
institution for the award of any degree or diploma.

...............................

BADRI NARAYAN MURAW

Date: 2076/10/
 SUPERVISOR’S RECOMMENDATION

The project work report entitled “MOBILIZATION OF SAVING DEPOSIT OF NABIL BANK
LIMITED” submitted by BADRI NARAYAN MURAW of BHAIRAHAWA NAMUNA
CAMPUS, BHAIRAHAWA is prepared under my supervision as per the procedure and format
requirements laid by the Faculty of Management, Tribhuvan University, as partial fulfillment of
the requirements for the award of the degree of degree of Bachelors of Business Studies (BBS). I,
therefore, recommend the project work report for evaluation.

.........................................

....................................

BHAIRAHAWA NAMUNA CAMPUS

BHAIRAHAWA

Date: ..............................
 ENDORSEMENT

We hereby endorse the project work report entitled MOBILIZATION OF SAVING DEPOSITE
OF NABIL BANK LIMITED submitted by BADRI NARAYAN MURAW OF BHAIRAHAWA
NAMUNA CAMPUS, BHAIRAHAWA, in partial fulfillment of requirements for the degree of
the Bachelor of the Business Studies (BBS) for external evaluation.

....................................... .......................................

MADHUSUDAN POKHERAL TUMNATH ARYAL

Chairman, Research Committee Campus Chief

BHAIRAHAWA NAMUNA CAMPUS

Date: 2076/10/
 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
BHAIRAHAWA NAMUNA CAMPUS for providing a chance and allowing for this study. I am
highly appreciative to Lecturers Mr. Madhusudhan Pokheral Principal of Tumnath Aryal 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. Amit K. C. who provided me the data and the valuable
information. I cannot entire this assignment without giving thanks to the Branch Manager of the
Nabil Bank Limited.

Thank you!

BADRI NARAYAN MURAW

BHAIRAHAWA NAMUNA CAMPUS

BHAIRAHAWA
 TABLE OF CONTENTS

Title Page… … … … … … … … … … …… … … … … … … … … … … … … ... i

Declaration … … … … … … … … … … …… … … … … … … … … … … … … ii

Supervisor’s Recommendation … … … … … … … … … … … … … … … … … ... iii

Endorsement … … …. … … … … … … … … … … …. … … … … … … … … … iv

Acknowledgement… … … … … … … … … … … … … … … … … … … … … … v

Table of Content… … … … … … … … … … …. … … … … … … … … … … … vi

List of Tables … … … … … … … … … ... … … … … … … … … … … …. … …vii

List of Figures … … … … … … … … … … … … … … … … … … … … … … … vii

Abbreviations … … … … … … … … … … … … … … … … … … … … … … … ix

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

APPINDEX … … … … ….. … … … … … … . … … … … … … … … … … … ...xx

LIST OF TABLES
LIST OF ABBREVIATION
ATM Automated Teller Machine

B.C. Bikram Sambat

A.D. Anno Domi

U.A.E. United Arab Emirates

HBL Himalayan Bank Limited

LC Letter of Credit

NRB Nepal Rastra Bank

No. Number

RBB Rastriya Banijya Bank

U.S. United States

NB Nepal Bank

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

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 throughmathematical 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)
Year Fixed Current Saving Others Call & Total Growth %
Short
Deposit
2013 2446 2704 4972 439 4945 15506 -2
2014 2252 3034 5230 390 2541 13448 -13
2015 2310 2688 5994 326 2801 14119 5
2016 2079 2799 7026 342 2341 14587 3
2017 3449 2910 8771 365 3851 19347 33
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)
Year Current Deposit Growth (Rs.) Growth %
2013 2704 -148 -5
2014 3034 331 11
2015 2688 -346 -13
2016 2799 111 4
2017 2911 112 4
Source: 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)
Year Saving Deposit Growth Rs. Growth %
2013 4972 55 1
2014 5230 257 5
2015 5994 765 13
2016 7026 1032 15
2017 8771 1745 25
Source: 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)
Year Fixed Deposit Growth (Rs.) Growth (%)
2013 2446 -1273 -2
2014 2252 -195 -9
2015 2079 -231 -11
2016 2079 -231 -11
2017 3449 1370 67
Source: 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)
Year Interest Bearing Deposit Growth (Rs.) Growth (%)
2013 12363 -222 -2
2014 10022 -2341 -3
2015 11106 1084 10
2016 11446 340 3
2017 16071 4625 29
Source: 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)
Year Non-Interest bearing deposit Growth (Rs.) Growth (%)
2013 3142 -112 -3
2014 3424 282 8
2015 3012 -412 -14
2016 3140 128 4
2017 3276 136 4
Source: 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)
Year Interest on Total Deposit Rs. Ratio%
Deposit
2013 457 15506 2.94
2014 307 13448 2.28
2015 265 14119 1.88
2016 244 14587 1.67
2017 359 19347 1.86
Average 14.2
Source: 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)
Year Total Total Deposit Interest bearing Cost of
Deposit Expenses Deposit Deposit %
2013 15506 457 12363 3.7
2014 13448 307 10022 3.06
2015 14119 265 11106 2.4
2016 14587 244 11446 2.13
2017 19347 359 16071 2.23
Source: 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)
Year Total Deposit Total Loans And Advance Deposit Lending%
(Rs.) (Rs.)
2013 15506 7438 47.96
2014 13448 7756 57.67
2015 14119 8189 57.99
2016 14587 10586 72.57
2017 19347 12922 66.79
Average 59.26
Source: 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)
Year Interest bearing deposit Total deposit Ratio%
2013 12363 15506 79.73
2014 10022 13448 74.52
2015 11106 14119 78.65
2016 11446 14587 78.47
2017 16071 19347 83.07
Average 79.98
Source: 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)
Year Non-Interest bearing deposit Total Deposit Ratio%
2013 3142 15506 20.26
2014 3424 13448 25.46
2015 3012 14119 21.33
2016 3140 14587 21.53
2017 3276 19347 16.93
Average 21
Source: 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)
Year Current deposit Total Deposit Ratio%
2013 2704 15506 17.44
2014 3034 13448 22.56
2015 2688 14119 19.04
2016 2799 14587 19.19
2017 2911 19347 15.04
Average 18.54
Source: 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)
Year Saving deposit Total Deposit Ratio%
2013 4972 15506 32.07
2014 5230 13448 38.89
2015 5994 14119 42.45
2016 7026 14587 48.17
2017 8771 19347 61.13
Average 42.3
Source: 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)
Year Fixed deposit Total Deposit Ratio%
2013 15506 15.77
2014 2252 13448 16.75
2015 23101 4119 16.36
2016 2079 14587 14.25
2017 3449 19347 17.82
Average 21.56
Source: 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 - FIVE
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 .

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