CHAPTERI INTRODUCTION 1.1 An Overview of Banking Sector The work bank generally means institution that deals in money.

In other words, the institution which deals with exchange of cash and credit is known as bank. Some way in others words as institution which deals with giving and receiving money is also called bank. Many authors have given different definitions of bank. Some of them are as follows: According to Oxford Advanced Learners Dictionary Bank is an establishment for the custody of money received from or an behalf of its customers its essential duty is to pay their draft on it, its use of the money left unemployment by them.1 1.2 Origin of Bank It is quite difficult to find exact date when bank was originated. When, how and from where bank was originated none of the institutions, organizations, authors intellectual can say exactly till today. But from deep study it is clear that it is started by the businessmen of gold and silver of by goldsmith and silversmith, they are main founder of the bank. From 2000 B.C. people started keeping cash, gold and silver safely which is stated on ancient economic book (writer Channakya 300 B.C.). On those days Babylon & Temples in India bank was situated which takes deposits give loans to general people. Before there was no word bank is stated or originated. There are two popular sayings of banks: a) Italian Work Banco In ancient time goldsmith and merchants of Italy do the business of giving and taking money sitting on bench. In Italian work bench means banco, so later on this banco work become bank. b) Monte Due to the war in Venice of Italy on 1171 A.D., the government faces great problem in economy. Due to shortage of money, government applied a policy of giving
1

Banking Insurance Principle and Practice by Dilli Raj Bhandari, page no. 3.

5% interest to the total people of Venice from their 1% of assets which they have compulsion to give the government. In Italy those collection of fund is called Monte. Actual meaning of Monte is hill. Taking debt from whole people become hill so that fund is called Monte. Same way his word is pronounced Bank in Germany, Banco in Italy, and banke in France & Bank in England. In the opinion of French writer Revil Pout the use of bank and bank notes were started in Babylon in 600 B.C. Bank of Venice of Italy was establishment in the middle ages. The use of it in India started in ancient age. Kautilays economic also describes bank and Mausmriti too has explained the banking the banking system of ancient age. 1.3 Ancestors of Modern Bank No comparison can be made between ancient and modern banks, yet it is necessary to know how the present banking system gradually developed. In ancient time, goldsmiths, businessmen and moneylenders used to perform the work of banking in every country. Hence Crowther has described following persons are the ancestors of modern bank. The Merchants The oldest ancestors of the modern bank were merchants. The merchants used to exchange the gold, silver, coins and used to given security of deposited valuable ornaments or goods made of gold, silver. They had played vital role to develop the banking transaction. The Moneylenders The moneylenders were second ancestor of the modern bank. Lending and borrowing are almost as old as money itself and in village moneylender is found even in quite primitive communities. He is not usually regarded as a, very lovely object user is one of the necessary, even though the record the extracts in return mat usually become rapacious. The Goldsmiths The goldsmiths were the third ancestors of the modern bank. Before the establishment of the modern bank in big cities and markets goldsmith created a strong safe to give security to the people. They used to take service charge of protecting people assets. Generally people used to keep and take out their assets as they need.

1.4 Origin and Growth of Bank in Nepal The growth of banking in Nepal is not so long. In comparison with other or developed country, institutional development in banking system in Nepal is far behind. The proof found till now is in 7th century King Gunakamdev take loan from people for reconstruction of Kathmandu valley. The development of banking system in Nepal is divided in 5 stages. a) Preliminary Stage: Traditional Bankers In 18th century also we can find practice of banking in history. At the time of Rana ruling prime minster, Ranadip Singh an office named Tejarath Adda was established in Kathmandu in 1933 B.S. to give loans to the government officials and the people against deposit of gold and silver. he has also extended its branches outside Kathmandu valley for giving loan. So we can say that the institutional banking system has started from then. b) First Stage: Origin of Nepal Bank Ltd. In the history of baking system of Nepal, 1st time in Nepal in 1994 B.S. Nepal Bank Limited was established as modern bank. Its initial authorized capital was 1 crore rupees and issues capital was 25 lacs, paid up capital was 8 lacs and 42 thousand, but now it has increase its capital. In 2006 B.S. its paid up capital become 25 lacs. In 2030 B.S. again from reserve fund bonus share was issued of 50 lacs. After the establishment of democracy in 2047 B.S., the total authorized capital was 34 crore and 50 lacs and issued capital of 28 crore and 50 lacs. c) Second Stage: Origin of Nepal Rastra Bank Under the Nepal Rastra Bank Act 2012 B.S., Nepal Rastra Bank was established in 14th Baishakh 2013 B.S. It has authorized capital of 1 crore. Before 2013 B.S. there was dual currency system in Nepal, both Indian and Nepali. Due to this there are many economic problems. So, reduce this problem it issued Nepali notes on 7th Falgun 2016 B.S. for the first time. Under this bank many commercial bank was established. Now, NRB act 2012 has been replaced and Nepal Rastra Bank Act 2058 has been enacted by the parliament. d) Third Stage In 2022 B.S. Rastriya Banijya Bank was established under Banijya Bank Act, 2021. It was with the authorized capital 1 crore and paid up capital started from 25 lacs. 3

In 2026 B.S its paid up capital equals authorized capital and reached 1 crore. In 2035 B.S its authorized capital becomes 14 crore. In 2047 its paid up capital becomes 1 Arab and 23 lacs. e) Forth Stage: Origin of Modern Bank As other developing countries Nepal also enacted for the development of economic policy and tries to give fresh competition in banking. Government also enacted the policy for joint investment banking. There are 19 commercial banks in Nepal. They are: 1) Nepal Bank Limited 2) Rastriya Banijya Bank 3) Nabil Bank Limited 4) Nepal Investment Bank Limited 5) Standard Chartered Bank Limited 6) Himalayan Bank Limited 7) Nepal SBI Bank Limited 8) Everest Bank Limited 9) Bank of Kathmandu Limited 10) Nepal Credit and Commerce bank Limited 11) Lumbini Bank Limited 12) Nepal Industrial and Commercial Bank Limited 13) Machhapuchre Bank Limited 14) Kumari Bank Limited 15) Laxmi Bank Limited 16) Siddhartha Bank Limited 17) Nepal Bangladesh Bank Limited 18) Global Bank Limited 19) Citizen Development Bank Limited Similarly, development banks and other financial institutions are also established in Nepal. 1.5 Background of the Study

In simple words, the organization or institution which deals with money is called bank. It collects money from different sectors of country and invests in development sector which helps to develop society and country. When bank is established it issued different shares, debentures, bonds to collect capital or funds. If it needs more money it takes loan from NRB and other institutions. Banks also collected money from different people as deposit. Deposits are of following types:

Demand Deposit Saving Deposit Fixed Deposit Margin Deposit Call Deposit Other Deposit Among six deposits the most important deposit is saving deposit because in this

deposit system, the depositor has to deposit his money for flexible period from 1 day to the period account holder wants banks gives certain amount of interest from this deposit. The total amount (interest and principle) can be withdrawn by depositor any time. Middle class and lower class people eventually deposit money in this account.

1.6 Overview of Everest Bank Limited After the growth and development of bank in Nepal in late 80s of 20th century joint venture banks started to be organized, among them Everest Bank Limited (EBL) is one. Everest Bank Limited has joint venture with Punjab National Bank of India. It was established on 18th October 1994 (1st Kartik 2051 B.S.). For the development of economic and industrial sector this bank started its operation from 1st Kartik 2051 B.S. Punjab National Bank is one of the big banks in India which has lots of branches in India and all over the world. With joint venture with Punjab Bank, EBL established and operate its works in different big cities of country from its branch office of EBL. Share holding partner of EBL S.N. Shareholder 1. 2. 3. Nepalese Promoters Punjab National Bank (Joint Venture Partner) General Public Percentage 50% 20% 30% Amount 158,400,000 63,360,000 93,240,000

Due to the hard working of office personals, this bank has earned great reputation in the country. It has hired software and hardware professionals to overcome for improvement of their skills. To provide better facilities to customers nowadays, it is using technologies like Telex, Fax and Swift. In near future, electronic banking, credit automatic machine, tele-banking technologies are going too introduced by this bank to provide more facilities to customers. For expansion of its work it has following branches: 1. New Baneshwor (Kathmandu) 2. New Road (Kathmandu) 3. Chabahil (Kathmandu) 4. Teku (Kathmandu) 5. Pulchowk (Kathmandu) 6. Lajimpat (Kathmandu) 7. Satungal (Kathmandu) 8. Pokhara (Kaski) 9. Biratnagar (Morang) 10. 11. 12. Duhabi (Sunsari) Itahari (Sunsari) Janakpur (Dhanusha)

13. 14. 15. 16. 17. 18.

Adarshnagar (Birgunj) Dry port (Parsa) Simra (Bara) Butwal (Rupandehi) Bhairahawa (Rupandehi) Dhangadi (Kailali)

1.6.1 Working Committee of Everest Bank Ltd. Director Chief Executive Officer Member Member Member Member Member Member Mr. Vishnu Kumar Shrestha Mr. D.V.S.S.V Prasad Dr. Bal Gopal Baidhya Ranjan Dhawan (Elected, P.N.B) Bed Krishna Shrestha Arun Man Serchan Nabin Bhakta Shrestha (Elected, Shareholders) Shiva Sharan K.C. (Elected, Shareholders)

1.6.2 Upper Managing Committee 1. Mr. D.V.S.S.V Prasad (Chief executive officer, PNB India) 2. Mr. Vishnu Mohan Panda 3. Mr. Ajay Shukla (Assistant G.M.) 4. Mr. RameshKumar Upadhya (Assistant G.M. RBB Nepal) 5. Mr. Homnath Gurung (Assistant G.M.) 6. Mr. Pramodraj Sharma 1.6.3 Function of Everest Bank Ltd. 1. Accept deposit. 2. Give loan. 3. Exchange Foreign Currency. 4. Give suggestion and services on economic and business sectors/ 5. Give and take delivery of cheque and draft. 6. Gives facilities of self deposit value. 7. Pays premium of insurance and income tax. 8. Provide facilities to account holders to withdraw money from any branch. 9. It investigates whether the loan given for a certain purpose are used on that purpose or not. 7

10.

Collects interest on loan and dividend of share.

1.7 Important of Study If we study any subject we go on analyzing the importance of study of same subject. This project work has some importance: a) This project work gives some valuable and needed information of bank for stockholders. b) This project work gives information about situation of bank, working capacity, working policies and way of solving problems of different banks as well as Everest Bank. c) This project work gives in short, information of accounts. d) This project work gives the information of opening saving deposit account in Everest Bank from which general people can deposit their assets for security. 1.8 Objective of the Study a) To know interest structure of saving deposit account. b) To know the situation of saving deposit account. c) To find out the trend of saving deposit. d) To find out the procedure of opening and closing saving deposit account in Everest Bank Limited. 1.9 Limitations of the Study a) This study is centred only to the Everest Bank Ltd. b) Bank doesnt give total amount of saving deposit can be withdrawn at a time. It keeps some amount for liquidity. c) It is most necessary to maintain minimum balance. d) The amount of withdrawn in limited by the bank. e) Time is another constraint.

CHAPTER-II REVIEW OF LITERATURE 2.1 Introduction of Saving Deposit Saving accounts pay interest to the depositors, but have no specific maturity date on which the funds need to be withdrawn or reinvested. Any amount can be withdrawn from a saving account up to the amount deposited. Under normal circumstances, customers can withdraw their money from a saving account simply by presenting cheques drawn to the bank. Withdrawals can also be made by using their automated teller machine (ATM) cards. Saving account is highly liquid. They are different from demand deposits, however, because depositors cannot write cheques against regular saving accounts. Saving accounts cannot be used directly as money to purchase goods or services. 2.2 Review of Previous Study Rajiv Malla conducted a study on A Field Report on Saving Deposit Position of Everest Bank Limited with following objectives: a) To find out the trend of the saving deposit of EBL. b) To find out the interest rate on saving deposit. c) To find out the procedure of opening and closing saving deposit account in Everest Bank Limited. To fulfill these objectives he used the following statistical tools: a) b) c) Bar Diagram Pie Chart Correlations

CHAPTERIII RESEARCH METHODOLOGY A definition of research that fits to different views is a systematic careful inquiry or examination done to discover one information or relationship and to expand verity existing knowledge for some specific purpose. 3.1 Sources of Data Without research the topic is not essential. Research can be done is different ways. Here two sources are used for the research. They are: a) Primary Sources In primary sources data are collected by doing inquiry, interview and investigation personally. No data are collected from primary sources. b) Secondary Sources In secondary sources data are collected from already existing data and from primary sources. Since for this project work necessary information and data must be clear, transparent so data are collected from annual report given by A.G.M. of EBL of Birgunj Branch. 3.2 Population and Samples The term population means aggregate totality of the objects under the study. It refers or covers all units is which have been chosen to study. here units chosen for studys banking as population where as sampling refer to the method of selecting from the population. Al subject of the population selected for the study is known as the sample. In other words we can say that sampling is a tool, which enables us to draw conclusion about the characteristics of the population. The population of study can be conducted on the following banks: 1) 2) 3) 4) 5) 6) 7) 8) Nepal Bank Limited Rastriya Banijya Bank Nabil Bank Limited Nepal Investment Bank Limited Standard Chartered Bank Limited Himalayan Bank Limited Nepal SBI Bank Limited Everest Bank Limited 10

9) Bank of Kathmandu Limited 10) Nepal Credit and Commerce bank Limited 11) Lumbini Bank Limited 12) Nepal Industrial and Commercial Bank Limited 13) Machhapuchre Bank Limited 14) Kumari Bank Limited 15) Laxmi Bank Limited 16) Siddhartha Bank Limited 17) Nepal Bangladesh Bank Limited 18) Global Bank Limited 19) Citizen Development Bank Limited From the above mentioned population EBL is kept as sample by using simple random technique. 3.3 Research Methodology For the purpose of achieving predetermined objectives, descriptive as well as analysis research methodology is used. 3.3.1 Variables There are two variables which are used to find out correlation: a) Independent variable which is saving deposit. b)Dependent variable which is lending. 3.3.2 Tools a) Correlation Analysis b)Data and Table c) Diagrammatic Representation of Data Here, different presentations of data are used to show clearly the difficult data collection from different sources. Here, different diagrams are used to show different statistical collection: i. ii. iii. iv. Two dimensional diagrams Three dimensional diagrams Pie chart Trend line

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CHAPTER-IV PRESENTATION AND ANALYSIS OF DATA 4.1 An Overview of Saving Deposit 4.1.1 Deposit Accounts Collection of money from general people, organization, institution, businessmen and deposit in current, saving and fixed deposit account is called deposit. Any customers who dont want money in short time those customers deposit the amount and earn certain amount interest. This money becomes capital for commercial bank. This money, banks invests in different business sector and earns more profit. As amount is collected from different account of the bank according to their working capability it deposit are divided into six type: 1. Demand Deposit 2. Fixed Deposit 3. Saving Deposit 4. Margin Deposit 5. Call Deposit 6. Other Deposit 4.1.2 Saving Deposit Account Customer open accounting bank to deposit certain amount in the sense to earn interest in flexible period of time that type of deposit is called saving deposit. It comes after fixed deposit means it has third place among deposits. General people save some of the amount from their remuneration which when kept in house might be theft, lost, burn by the fire as well there is no profit from the amount, and it is idle. But when kept in bank it gives interest. The amount kept for certain time gives fixed interest which will be benefit for people. 4.1.3 Feature of Saving Deposits Account

Saving deposit interest is more than current deposit. In saving deposit bank gets amount for investment. Bank should pay principle and interest to account holder at the presentation of cheque. Account holder cannot withdraw total money by cheque in saving deposit.

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4.1.4 Opening Procedure of Saving Deposit Account To open saving deposit account in Everest Bank Limited firstly form should be filled up with specimen signature, provided by EBL. Amount must be submitted to bank. Since the minimum and maximum amount is not mentioned to open the account but in practical different commercial bank has provision of minimum amount should be paid while opening account same way EBL has minimum amount should be in bank in Rs. 5,000 and maximum is unlimited. After this process bank completes its necessary work on form and ask the depositor to deposit the amount and give chequebook to account holder. In that cheques book, account number, date of issue etc. are mentioned. This cheque book proves the dealing between bank and account holder. In any institution or organization, the firm or person who wants to open account, the following necessary documents are needed:

For general people: Photocopy of citizenship certificate. For institution, organization and firms: Registered number of firm, organization or institution; certificate, signature of officer or head of firm or organization and related documents.

For business firm: New registration no. or if then renewal of registration no. certificate photocopy, photocopy of owner of business firm citizenship certificate and registration certificate photocopy.

If it is company: Registration certificate photocopy of the company, photocopy of decision of opening account, tax registration photocopy, photocopy of authorized form given by working committee member to open account.

4.1.5 Closing Procedure of Saving Deposit Account For earn interest from their excess money account holder can deposit his cash in saving deposit account. There is facility of chequebook or pass for account holder. When account holder wants to close his account then he has to write an application to the bank and submit the chequebook of saving deposit himself in the bank and sign in the application. Which must tally with the specimen signature of bank. Bank does the investigating process and returns back the total amount. Generally principal with interest is return back to account holder. From here the relation between the bank and account holder comes to an end. 13

If the account holder dies, then after giving the death certificate to bank the nominee can get amount. If nominee also dies, the under the Commercial Bank Act 2031 account holder nearest relation proved by law get principal and interest and saving deposit account comes to an end. 4.2 Various Deposit Position Amount of Current, saving and fixed deposit amount total deposit in EBL. Table 4.2 Various Deposit Position Amount in 00,000 Accounts Years 2059/60 2060/61 2061/62 2062/63 2063/64 4701 4819 5623 7197 10250 13480 17353 27579 37306 48068 22846 27115 27947 28979 34039 Current Account Saving Account Fixed Account

Sources: Annual Report of EBL (2006)

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Diagram 4.1 Various Deposit Position

00000 333 33 333 33 333 33 00000 00000 00000 00000 0000 0

Amount in '00, 000'

0000 /00

33/3 33 3
Current Account

33/3 33 3
Year

33/3 33 3

33/3 33 3

Saving Account

Fixed Account

Diagram 4.2 Comparison of Saving Deposit and Total Deposit 333 333 333 333 000000 00000 333 33 00000 0 0000 /00 33/ 3 3 33 33/ 3 3 33
Year

Amount in '00, 000'

0000 /00

0000 /00

Saving Account

Total Deposit

From above diagram we can find saving deposit account amount holds goods position in comparison to the total deposit than other deposit during the beginning years 2058/59 but the ratio of the saving deposit is decreasing day by day. But the amount of saving deposit in the last five fiscal years is in increasing trend. The amount of saving deposit increases quite heavily from 2059/60 to 2060/61. The increasing trend is low from 2061/62 to 2062/63. But it increases quite heavily from 2062/03 to 2063/64.

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4.3 Ratio of Saving Deposit in Total Deposit As we saw the trend of saving deposit in the previous diagram 4.2 the amount of saving deposit is increasing every year but the might not be in the same manner. Therefore, the ratio of saving deposit to the total deposit is computed. The ratio of saving deposit to the total deposit is shown by the table below: Table 4.3 Ratio of Saving Ratio Amount in 00,000 Years 2059/60 2060/61 2061/62 2062/63 2063/64 Saving Account 13480 17353 27579 37306 48068 Total Account 45745 54666 66950 80639 100976 Ratio 0.30 0.32 0.41 0.46 0.48

Sources: Annual Report of EBL (2006) From above table we can see the ratio of saving deposit to total deposit for different fiscal years. The ratios are good in beginning year and these ratio are in increasing trend. 4.4 Deposit, Lending and Investment Position The amount received by the bank under various deposit schemes are invested and granted as loan to other parties. The remaining amount is kept as the cash reserve as guided by the Nepal Rastra Bank. The details of the total deposit for the year 2059/60 to 2063/64 have been shown through the table below. Table 4.4 Deposit, Lending and Investment Position Amount in 00,000 Years 2059/60 2060/61 2061/62 2062/63 2063/64 Deposit 45745 54666 66950 80639 100976 Lending 30057 40442 50496 60958 79000 Investment 9017 16930 16540 25356 21289

Sources: Annual Report of EBL (2006) The data of the above table can be presented also by the help of the diagram below:

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Diagram 4.3 Deposit, Lending and Investment Position

333 333
Amount in '33 ' , 333

000000 00000 00000 00000 00000 0 0000/00 33/3 33 3

Deposit

33/3 33 3
Year Lending

0000/00
Investment

33/3 33 3

The above three dimensional diagram the first show deposit, the second one show lending and the third one show the investment for five different years. The relation between deposit and lending and investing is directly proportional. We can say that deposit is independent variable and lending and investment are dependent variables. This can be seen through the diagram also. The year, in which the deposits are high, the lending and investment ratio is also high. 4.5 Total Deposit and Net Income The net income of a bank is related to the amount of deposit accepted by the bank and how it utilizes and fund (deposited amount) with it. The past 5 years trend of the net income and total deposit is shown by help of the table shown below.

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Table 4.5 Total Deposit and Net Income Amount in 00,000 Years 2059/60 2060/61 2061/62 2062/63 2063/64 Sources: Annual Report of EBL (2006) The data mentioned in the above table can be presented in the form of diagram to have clear view for comparing the total deposit and the net income. The diagram is as under: Diagram 4.4 Total Deposit and Net Income
333 333
Amount in '33 ' , 333

Total Deposit 45745 54666 66950 80639 100976

Net Income 697 853 842 1436 1701

333 333 333 33 333 33 333 33 333 33 3 33/3 33 3 33/3 33 3 33/3 33 3

Year Total Deposit Net Income

33/3 33 3

33/3 33 3

The above diagram shows the total deposit and net income of five fiscal years. The net income in the year 2059/60 is 697 lacs, 583 lacs in the year 2060/61, 942 lacs in the year 2061/62, 1436 lacs in the year 2062/63 and 1701 lacs in the year 2063/64.

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4.6 Contribution of Saving Deposit on Net Income Table 4.6 Contribution of Saving Deposit on Net Income Amount in 00,000 Years 2059/60 2060/61 2061/62 2062/63 2063/64 Saving Deposit 13480 17353 27579 37306 48068 Net Income 697 853 842 1436 1701 Contribution (%) of Saving Deposit on Net Income 5.17% 4.92% 3.42% 3.85% 3.54%

Sources: Annual Report of EBL (2006) From the above table we can see that the contribution of saving deposit on net income of EBL. Its contribution is 5.17% in 2059/60, 4.92% in 2060/61, 3.42% in 2061/62, 3.85% in 2062/63 and 3.54% in 2063/64. Hence from the above table we can conclude that with the increase in the saving deposit there is rational increase in the net income of the bank. 4.7 Amount Deposited under Different Account at EBL in year 2063/64 Everest Bank Ltd. provides various account options for the facility of customers. Customers use the service of accounts according to their need and benefits. The amounts deposited under various types account are shown in the table below: Table 4.7 Amount Deposited under Different Account at EBL in year 2063/64 Amount in 00,000 S.N. 1 2. 3. 4. 5. 6. Accounts Current Deposit Saving Deposit Fixed Deposit Call Deposit Margin Deposit Other Deposit Amount 10250 48068 34039 7043 1167 407 Percentage 10.15% 47.60% 33.71% 6.98% 1.16% 0.40%

Sources: Annual Report of EBL (2006) Diagram 4.5 Amount Deposited under Different Account at EBL in year 2063/64

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3.3% 33

00.00% 00.00% 0.00% 0.00% 0.00%

Current Deposit Call Deposit

Saving Deposit Margin Deposit

Fixed Deposit Other Deposit

The above pie chart shows how amount are divided into divided into different deposit account. The above table and diagram shows that the amount of saving deposit occupies the highest percentage in total deposit, which is 47.60%, saving deposit occupies 2nd highest position in total deposit which is 33.71%, current deposit is 10.15%, call deposit is 6.97%, margin deposit is 1.16% and other deposit is 0.40%. 4.8 Correlation of Saving Deposit and Lending Table 4.8 Correlation of Saving Deposit and Lending Year 2059/60 2060/61 2061/62 2062/63 2063/64 Saving Deposit (X) 13480 17353 27579 37306 48068 X= 143786 Lending (Y) 30057 40442 50496 60958 79000 Y= 260953 X 181710400 301126609 760601241 13917837636 2310532624 X = 4945708510 Y 903423249 1635555364 2549846016 3715877764 6241000000 Y = 15045702393 XY 405168360 701790026 1392629184 2274099148 3797372000 XY = 8471058718

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Calculation of correlation between saving deposit and lending: We have, r= or, or, or, = = =

r = 0.5737 Correlation between saving deposit and lending is positive correlated (0.5737). This shows that when saving deposit increases the lending also increases and vice-versa. Thus we can say that to increase the revenue bank must increase lending and to increase lending again the saving deposit must increase.

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CHAPTER-V SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary Bank collects necessary amount, which is scattered in society from saving of people, organization, and institution as deposit. Same way gives loan to people, organization, institution, which is called as investment of bank. From this gathered amount bank strengths its economic position and by more interests it increases its revenue. By studying different data of EBL. Saving deposit plays a great role for bank revenue, bank investment and bank lending. Not only this, it has great role for the development of country. To increase the deposit in EBL many changes and improvement of steps should be taken which is necessary today. In which improvement of interest rate on saving deposit, improvement of lending, interest rate should be some percent less in lending and compound interest should not be taken as well as modern banking facility should be provided to people. By analyzing correlation it is seen that correlation between saving deposit and lending is highly positive correlated. This shows that when ever saving deposit increases lending also increases and vice-versa. Therefore saving deposit is independent variable and lending is dependent variable. 5.2 Conclusion

The interest structure of saving deposit of EBL is lower. To open a saving deposit account, on EBL to credit interest and has to deposit at least minimum amount of Rs. 5,000 for opening this account. The saving deposit account is closed when account holder wants to be close and

the account holder gets interest + principle after closing the account. In case account holder is dead, his nominee or if no nominee, his nearest legal relationship person will get principle and interest amount and saving deposit account is closed then after.

5.3 Recommendation

Bank has to focus to change the interest rate to survive in the competitive market level.

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If bank could decrease initial amount to open saving deposit a/c, total saving deposit may increase.

If further study is conducted regarding the trend of saving deposit, it may help bank to develop new plans and strategies as well as it will be beneficial for banks.

More study is needed in regarding saving deposit and total investment, as well as saving deposit and earning.

Bank must give its best efforts to increase the amount of saving deposit and the duration of saving deposit by providing various attractive services to its customers.

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BIBLIOGRAPHY

1. 2. 3.

Annual Report of Everest Bank Limited. Bank and Financial Statistics of Nepal Rastriya Bank Limited. Bhandari, Dilli Raj (2003), Banking, Insurance Principle and

Practice, Ayush Publication, Kathmandu. 4. Chaudhary, A.K. and Pant, G.D. (2055), Business Statistics and

Mathematics, Bhundi Puran Prakashan, Kathmandu. 5. Dahal, Sarita and Dahal, Bhuvan (2002), A Hand Book Banking for

Bankers, Other and Students, Ashmita Books and Stationary, Kathmandu. 6. Pant, Prem Raj (1998), Field Assignment and Report Writing

Kathmandu: Veena Academic Enterprises. 7. Pant, Prem Raj (2002), Fieldwork Assignment and Report writing,

Kathmandu: Buddha Academic Enterprises. 8. Some National News Papers.

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