A REPORT ON DEPOSIT

MOBILIZATION OF NABIL BANK

A Proposal

Submitted by:
Symbol No:
T.U. Reg. No:
College

Submitted to:
The Faculty of Management
Tribhuvan University Kathmandu

In Partial fulfillment of the requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)
February 2025
 ACKNOWLEDGMENT

I would like to express my gratitude to my respected supervisor Mr. sabin Upreti, for
the valuable suggestions and encouragement without which this work would not
have been completed.

I would like to express my gratitude towards our campus chief Mr. sabin Upreti sir
for his kind cooperation and encouragement in completion of this project report. I
am highly indebted to all my teacher of College who has provided crucial
information through orientation class regarding preparation of my project report.

I must give special thanks to the respected teachers, library staffs compliment for
their idea, opinion, suggestion and valuable time and effort in going through my
work.

Finally, I offer thanks to all who directly and indirectly contributed to prepare this
report.

BBS 4th year

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 TABLE OF CONTENTS

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

Acknowledgement………………………………………………………………………….………….. ii

Table of contents……………………………………………………………………………………….. iii

CHAPTER 1 INTRODUCTION……………………………………………….. 1
1.1. Background of the Study……………………………………………………………….1

1.1.1. Meaning and definition of

Topic…………………………………………11
1.1.2. Introduction of Nabil Bank .. 2Error! Bookmark not defined.
1.2. Statement of Problem ........................... 3Error! Bookmark not defined.

1.3. Objective of the Study ........................... 4Error! Bookmark not defined.

1.4. Rationale of the Study ........................... 4Error! Bookmark not

defined. 1.5. Report Structure .................................... 5Error! Bookmark not

defined.

1.6. Literature Review ................................... 5Error! Bookmark not

defined.

1.6.1. Conceptual Review…………………………………………………………………5

1.6.2. Review of Previous Works……………………………………………………..5

1.6.3. Research Gap…………………………………………………………………………6

1.7. Research Methodology ......................... 7Error! Bookmark not

defined.
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 1.7.1. Type of Research ........................................................................ 7
1.7.2. Population Sampling………………………………………………………..………7

1.7.3. Types of Data…………………………………………………………………………8

1.7.4. Secondary Data Source ..............................................................

8

1.7.5. Data Processing Techniques ...................................................... 8

1.7.6. Techniques of Analysis............................................................... 8

1.7.7. Limitations of the Study .............................................................

9

1.8. Discussion and Conclusion…………………………………………………………………….9

REFRENCES…………………………………………………………………………………………………..11
Error! Bookmark not defined.

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1.1. Background of the Study:

1.1.1. Meaning and definition of Topic:

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), and 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.”

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1.1.2. Introduction of Nabil Bank:

A commercial bank is a financial institution which collects saving from many

person 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. 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.

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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 31st 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 Problem:

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

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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 objective of this fieldwork is to analysis 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. Rationale 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.

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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 are Background of the Study,
Statement of Problem, Objective of the Study, Rationale of the Study, Report
Structure, Literature Review, Research Methodology, Discussion and Conclusion and
References.

1.6. Literature Review:

1.6.1. 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.

1.6.2. 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

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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.

1.6.3. 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.

1.7. Research Methodology:

1.7.1. Type of Research:

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 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.

1.7.2. 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.

1.7.3. Types 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

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collected from published annual reports, brochures etc. mostly all the data are
collected from the concerned bank.

1.7.4. 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 to carry out financial ratio calculation and graphical
illustrations through mathematical functions and Chart program of the Excel
program.

1.7.5. 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.

1.7.6. 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.

1.7.7. Limitations of the Study:

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 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.

1.8. Discussion and Conclusion:

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.

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 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.

REFRENCES:

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Annual Report of NABIL from 2019 to 2024

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.

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.

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