CHAPTER-I

INTRODUCTION

1.1Introduction

Bank is a financial institution which deals with the monetary activities by accepting
deposits, lending to the various parties against securities and performing agency
services to its clients/customers. It has not so far been decided as to how the word
`Bank` originated. Some authors opine that this word is derived from the word
`Bancus` or `Benque` which means bench. Other authorities hold the opinion that the
word `Bank` is derived from German word `Back` which means `Joint Stock Fund`.
The banks perform not just one function but many types of functions. Bank now not
only make short term loans to the farmers, traders, industrialists etc but also invest in
a wide variety of long term earning assets. Banking industry acts as blood life of
modern trade and commerce acting as a brdge to provide a major source of financial
intermediation.

According to Dr. Hart,"`Banker or Bank is a person or company carrying on business

of receiving money and collecting drafts for the customers subject to the obligation of
honouringcheques drawn upon them from time to time by customers to the extends of
the amounts available on their currents accounts."

In the word of G.W Gillbert, "A banker is a dealer in capital or more properly a
dealer in money." He is an intermediate party and lends to theanother lender. He
borrows one party and lends to another party.

1.2 Background of the Study

Nepal SBI Bank Ltd.(NSBL) is a subsidiary of State Bank of India (SBI) having 55
percent of ownership. The local partner viz. Employee Provident Fund holds 15%
equity and General Public 30%. In terms of the Technical Services Agreement
between SBI and the NSBL, the former provides management support to the bank
through its expatriate officers including Managing Director who is also the CEO of
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the Bank. Central Management Committee (CENMAC), consisting of the Managing
Director & CEO, Chief Operating Officer & Dy. CEO, Chief Financial Officer, Chief
Risk Officer and Chief Credit Officer, exercises overall control functions with the
help of 3 Regional Offices, and oversee the overall operations of the Bank.

NSBL was established in July 1993 and has emerged as one of the leading banks of
Nepal, with 679 skilled and dedicated Nepalese employees working in 62 branches, 7
extension counters, 3 Regional Offices and Corporate Office. With presence in 32
districts in Nepal, the Bank is providing value added services to its customers through
its wide network of 85 ATMs, internet banking, mobile wallet, SMS banking, IRCTC
Ticket Online Booking facility, etc. NSBL is one of the fastest growing Commercial
Banks of Nepal with more than 6.22 lakhs satisfied deposit customers and over 4.80
lakhs ATM/Debit cardholders. The Bank enjoys leading position in the country in
terms of penetration of technology products, viz. Mobile Banking, Internet Banking
and Card Services. The Bank is moving ahead in the Nepalese Banking Industry with
significant growth in Net Profit with very nominal NPA. As of 31 stAshad, 2073, the
Bank has deposits of Rs. 65.21 billion and advances (net) of Rs. 47.54 billion, besides
investment portfolio of Rs.19.29billion.

State Bank of India (SBI), with a 210 year history, is the largest commercial Bank in
India in terms of assets, deposits, profits, branches, customers and employees. The
Government of India is the majority stakeholder and has controlling stake in SBI, a
“Fortune500”entity. The SBI group consists of SBI and five associate banks. The
group has an extensive network, with over 22,000 branches in India and another 198
foreign offices in 37 countries across the world.

SBI's non- banking subsidiaries / Joint ventures are market leaders in their respective
areas and provide wide ranging services, which include life insurance, merchant
banking, mutual funds, credit cards, factoring services, security trading and primary
dealership, making the SBI Group a truly large financial supermarket and India's
financial icon. SBI has arrangements with over 1,600 various international / local
banks to exchange financial messages through SWIFT in all business centers of the
world to facilitate trade related banking business, reinforced by dedicated and highly
skilled teams of professionals.

[2]
Vision and Mission

Vision

To be a state of the art, customer centric, values driven and professionally managed
bank; committed to high standards of good corporate governance practices; perpetual
enhancement of the wealth of all stakeholders and the society.

Over the years, we have grown larger and stronger - in terms of business, geography
and resources. This has been achieved by relying on the fundamentals of customer
service of top order. Our achievements have come through quality, consistency and
transparency of capital base, sound liquidity, a robust risk management framework
coupled with the practice of good corporate governance and above all, the tireless
focus on customer satisfaction.

Mission
The Bank’s mission is to provide one stop solution to all the banking needs for the
customer through a highly motivated professional and efficient human resource pool.
Promoting sustainable business growth by providing High quality customer service,
customer care and ensuring efficient use of Information Technology in a cost efficient
manner. Meeting the expectations of all stakeholders through transparent, true and fair
disclosures and responsive management, practices/principles. Strive to fulfill
corporate social responsibility in Nepal with emphasis to growth in business.

[3]
Organizational Structure of Nepal SBI Bank Limited

[4]
1.3Objectives Of the Study

The main purpose of their study is to find out the financial position of NSBI in
resource collection & mobilizing. The objectives of the study are as follows:

a) To analyses the deposit position of NSBI

b) To find out changing position of deposit collection along with the interest rates
in last years
c) To find out the effectiveness of resources mobilization of the banks in the last
period.
d) To recommended the solution on the basis of done study & findings.

1.4 Statement Of Problems:

The main vision of NSBI is to become a premier banking institution in Nepal. In

achieving this mission, NSBI has been successful by increasing its revenue, deposit
base and branches in Nepal. Although there are no. of major problems observed are as
follows:

a) Failures seen in technological equipment during work.

b) No job advancement procedure for lower staff or jr. executives.
c) Lack of employees in some branches.
d) No incentives schemes for employees.

1.5 Limitations Of The Study

a) Only one part of the operation/company was done due to time constrained.
b) This report has covered only few operations of the company.
c) Study of five fiscal year`s data due to difficulty in lengthy calculation.
d) Limited information due to lack of sources.
1.6 Review of Related Studies

The financial bank provides different types of deposit schemes to collect idle money
of public. By bringing even an ordinary people in a group, the bank deposits even a
small amount in their accounts, which can be invested into different sectors for which

[5]
financial bank charges certain amount as commission which may be the important
source of revenue collection.

The financial bank can utilize such funds in providing seasonal loan as well as to
purchase raw material to traders and manufacturers. The traders and manufacturers
use such amount in the process of production through which they can create a
product. After forwarding the product to the market, they collect the revenue through
selling. Then the traders and manufacturers use their revenue in paying the loan which
ensures the recoverable of amount invested in such sector. In the process of loan
providing facility, more than Rs. 100,000 like educational, building repairing &
maintenance involves a high quality of risk to recover the invested amount as future is
unpredictable. The small change in the environment may effect in the efficiency and
financial soundness of the company. Due to this reason the company is capable to pay
the amount of loan in present may be incapable to pay the amount of loan in future
which increases the risk in covering the loan of financial bank. Deposit helps to
increase the banking habit of public by providing withdrawal facility on the urgent
need of money, which is the good indicator for the economic development of the
nation.

Commercial Bank act 2031 defines deposit as "the amount deposited to current,
saving or fixed deposit account of bank or financial institutions in call deposit."
General public, businessman deposit the idle money left with them in banks to earn
interest on the idle money and for safety purpose. This amount which bank receives
as deposit is the main sources for the bank. Just as a manufacturing company can't
operate without raw materials, a bank can't operate without collection of depositors.
Deposits are the main sources for all types of banks. These deposits are collected for
different frame. In other word deposits are the main sources of raising capital. These
deposits are received in different form of a/c.

As Commercial Bank act 2031 sec.2 simply deposit means "The amount stored in
current/saving/fixed a/c by the customers in any banking or financial institute."

The excess amt. of money that lefts after meeting human wants, the person or group
of person or unit save the excess funds in hand they use to store that amt. in the bank
or any other institute call deposit.

[6]
Generally according to the future plan, the person or companies make fix deposits so
as after the expiry of fixed deposit time the deposited money can be withdrawn and
use for several purposes, to meet the social requirements like; house expenses,
marriage, big worship, construction activities, children education, health treatment,
tour, occasional need etc to acquire fixed deposits, to invest in more productive way,
to expand business.

Fixed deposit is also called tie deposit as the deposit not withdrawal before a certain
time i.e. maturity period of deposit of the deposit. As per clause of commercial bank
act 2031,"the a/c which records transaction of such deposits which are deposit for a
certain fixed time is known as fixed deposit a/c." A person who wishes to earn fixed
interest regularly on their idle money, fixed deposit a/c. bank offers fixed interest rate
regularly on their idle money deposited. The rate of interest is higher in long-term
deposit rather than in short term deposit.

1.7 Research methods

Data collection is an essential part of fieldwork report. Collection of data is very

important for making the report clear and appropriate. Data should not be wrong
because it makes the report less reliable. Two types of data are used to prepare this
report.

1.7.1 Research Design

Field work design helps to collect right quantum of accurate data. Here researcher has
applied descriptive and analytical research design as it deals with description of
situation and interpretation of data.

1.7.2 Data collection method

In order to collect data, both primary as well as secondary sources of data and
information were obtained by questionnaire method. As data were found generally in
secondary sources in this case the secondary data concerning the actual financial
position of the enterprise was collected from the records and the annual report of the
enterprise as well.

A. Primary data

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 The primary data are mainly collected by the personal interview and
questionnaires method with employees. The field observation of this bank and
acquired knowledge about its system also helped in collecting primary data.

B. Secondary data
Almost all the data used in the project are secondary data. Annual report
published by the NSBI, office records, messages which are stored on the
BSBL are the sources of secondary data. All these data have been regressed
and presented in the report after interpreting and analyzing them.

1.7.3 Data presentation and analysis tools

Various statistical tools were used after compilation. The data was processed
tabulated and graphed to analyze and achieve objective of the study. Hence for the
analysis and evaluation of the report average, percentage, arithmetic mean, trend
analysis and correlation are used.

a) Tables and bar diagrams

b) Pie charts and trend line
c) Average and percentage

[8]
 CHAPTER II

PRESENTATION AND ANALYSIS OF DATA

2.1 Presentation of data and analysis:

Nepal SBI Bank Ltd. being one of the financial intermediaries has played a vital role
in mobilizing and utilizing saving to the investment. Deposits are the main source of
resources to meet the growing demand of financial assistance. The existence of
commercial banks basically depends upon the mobilization of deposits.
The commercial bank may function only when they have adequate deposits. Higher
the volume of deposit higher will be the volume of lending and investment again
generates higher volume of profit. So, commercial bank first tries to mobilize
available resources as much as possible.

2.1.1 Total Deposit position of Nepal SBI Bank Ltd.

Deposits are the main components of the liabilities side of the bank and are main
source of rising capital. “Only those deposit which are received in the form of cash or
in that of the rights of receive cash add to the working capital of the bank.” Hence
deposits may create either by customers or by bank itself. It is created by the banks
when the bank credits customers account in the form of loans. Higher the volume of
deposit, higher will be the volume of lending and investment, which again generates
higher volume of income.

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 Table no.1

Deposit position of Nepal SBI Bank Ltd.

(Amt in Lakhs)

Year 2068/69 2069/70 2070/71 2071/72 2072/73

Current 3779 50371 41155 48180 55314
Saving 103446 128872 166106 214854 368318
Fixed 362087 381791 285694 191295 230194
Others 27010 25716 47740 56735 91731
Total 496322 586750 540695 511064 745557

Deposit position of NSBI

Figure No. 1

Total Deposit
26% 17%

2068/69
2069/70
2070/71
20% 2071/72
2072/73

18%
19%

Analysis:

The given table and figure shows the deposit trend of Nepal SBI Bank Ltd. According
to table in fiscal year 2068/69, total deposit was Rs. 496322 increasing of Rs. 745557.
Similarly in 2069/70 total deposit was Rs. 586750, in 2070/71 total deposit is Rs.

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540695which is decrease due to the various financial reasons but again in
year2071/72 the total deposit is Rs.511064which reach up to Rs. 745557, in 2072/73.

2.1.2Current A/ C Deposit Account

Current deposit account is also known as demand deposit. Under this any amount may
be deposited in this deposited in this account. There are no restrictions regarding the
number of withdrawals or the amount of the withdrawals. The bank does not pay any
interest on such accounts and the depositors are required to leave a minimum balance
as per bank rule. Traders and businessmen keep their money with the bank under
current accounts.Below is given the table and the changing pattern of current deposit
of Nepal SBI Bank Limited

Table No.2

Amount Deposited in Current Account of NSBI Ltd (Amt. in Lakhs)

Date Deposit Change In Deposit % Change

2068/69 3779 0 0
2069/70 50371 46592 92.49766731
2070/71 41155 -9216 -22.3933908
2071/72 48180 7025 14.5807389
2072/73 55314 7134 12.89727736

Amount Deposited in Current Account of NSBI Bank Ltd.

Figure No.2

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 Current A/C Deposit
60000
Amount 50000
40000
30000 Current A/c Deposit

20000
10000
0
2068/69 2069/70 2070/71 2071/72 2072/73
Fiscal Year

% Change in Current A/C Deposit

% Change in Current A/c Deposit

10% 9%

2068/69
2069/70
2070/71
16% 2071/72
2072/73

[12] 65%
 % Change in Current Deposit
10% 9%

2068/69
2069/70
2070/71
16% 2071/72
2072/73

65%

Figure No. 3

Analysis:

The given table and figure shows amount deposited in current account of Nepal SBI
Bank Ltd. according to table in 2068/69 deposit was Rs 3779 but in 2069/70 deposit
was Rs.50371, current deposit was increased by Rs.46592 or rates of 92.49%%.
Similarly, in 2070/71 current deposit was Rs.41155, which was decreased by Rs.9216
or rates (22.39%) less than previous year’s current deposit. Similarly, in 2071/72
current deposit is Rs.48180 which is more than previous year by Rs7075 with
14.58% and in 2072/73 the current deposit is Rs 55314 with 12.89%. in last year
current deposit was highest increment than previous year.

2.1.3 Saving A/c Deposit Account

Saving deposit is one of the deposit collected from small depositors and low income
depositors. The bank usually pays small interest to the depositors against their deposit.
The depositors are allowed to withdraw their money by cheques to the amount
prescribed by bank. This account is called saving account. At present, NSBI Bank has
fixed 2.25%-8% per annum interest in saving account. The depositor must have

[13]
minimum balance of Rs. 100- Rs. 10000 according to a/c type.Below given table
shows the changing pattern of saving deposit of NSBI Bank ltd.

Table No.3

Amount Deposited in Saving Account of NSBI Bank Ltd.

( Amt in Lakhs)

Date Deposit Change In Deposit % Change

2068/69 103446 0 0
2069/70 128872 25426 19.72965423
2070/71 166106 37234 22.41580677
2071/72 214854 48748 22.68889572
2072/73 368318 153464 41.66616891

Amount Deposited In Saving A/c

400000
350000
300000
250000
Deposit

200000 Deposit
150000
100000
50000
0
2068/69 2069/70 2070/71 2071/72 2072/73
Fiscal Years

Amount Deposited in Current Account of NSBI Bank Ltd.

Figure No.4

[14]
 % Change in Saving A/c
19%

39%
2068/69
2069/70
2070/71
2071/72
21% 2072/73

21%

% Change in Saving A/c Deposit

Figure No.5

Analysis:

The given table and figure amount deposited in Saving Account of NSBI Bank .
According to table in 2068/69, deposit was Rs. 103446, saving deposit was increased
by Rs. 25426 or rates of 19.72%. Similarly, in 2069/70 saving deposit was Rs.
128872, which was increased by Rs. 37234 or 22.41% more percent than previous
year saving deposit. Similarly, in 2070/71 saving deposit is Rs. 48748, which is
increased by Rs.48748 or rates of 22,68% more percent than previous year saving
deposit. Likewise in 2071/72 saving deposit is Rs.214854, which is increase by Rs.
153464 or rates of 41.66%. in2072/73 saving deposit is Rs. 368318, which is more the
previous years.

2.1.4 Fixed A/c Deposit Account

A fixed deposit is one where a customer is required to keep a fixed amount with bank
for a specific period. The bank pays a higher interest on such deposit. It time of
emergency, customer are permitted to borrow money on the security of his fixed
deposit. Since the bank is aware of the repayment date of such fixed deposit, the bank
is free to make use of this money for granting loans and advances. Under this account,

[15]
the depositor should deposit money for a fixed period of time like ,3 months, 9
months, 1 year etc. the minimum cash balance required for opening fixed deposit is
Rs. 100000.

Table No.4
Amount deposited in Fixed Deposit A/c of NSBI Bank Ltd.

Date Deposit Change In Deposit % Change

2068/69 362087 0
2069/70 381791 19704 5.1609388
2070/71 285694 -96097 -33.636338
2071/72 191295 -94399 -49.347343
2072/73 230194 38899 16.898355

Anount Deposited Into Fixed A/c

400000
350000
300000
250000
Depsit

200000 Deposit
150000
100000
50000
0
2068/69 2069/70 2070/71 2071/72 2072/73
Fiscal Years

Amount deposited in fixed account of NSBI Bank Ltd.

Figure No.6

Analysis:
The given table and figure shows amount deposited in fixed account of Nepal SBI
Bank Ltd. According to table, in 2068/69 deposit was Rs. 362087, fixed deposit was
increased by 5.16%. Similarly, in 2069/70, fixed deposit was Rs.381791 which was
decreased by the rates of 33.63 % in comparison with previous year. Similarly in
2070/71, fixed deposit was Rs. 285694 which was also decreased by the rates of
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 49.347% with the comparison of previous year. In 2072/73, fixed deposit was Rs.
230194 which was increased by the rate of 16.89%. But in last year fixed deposit
was decreased by Rs. 598705 or 9.79%.
2.1.5 Other A/c Deposit Account
Below given table shows the changing pattern of otherdeposit of NSBI Bank Ltd.
Table No.5
Amount deposited in other account of NSBI Bank ltd.

Date Deposit Change In Deposit % Change

2068/69 27010 0 0
2069/70 25716 -1294 -5.0318868
2070/71 47740 22024 46.133222
2071/72 56735 8995 15.854411
2072/73 91731 34996 38.15068

Amount deposited in other account of NSBI Bank ltd.

Other Deposit
100000
90000
80000
70000
60000
Deposit

50000 Other Deposit

40000
30000
20000
10000
0
2068/69 2069/70 2070/71 2071/72 2072/73
Fiscal Years

Figure No. 7

Analysis:
The given table shows amount deposited in other deposit account of NSBI Bank
ltd. According to table, in 2068/69 deposit was Rs. 27010. Similarly in 2069/70
deposit was Rs. 25716, which was decreased with the comparison of previous year.
Similarly, in 2070/71 deposit was Rs. 47740, which was increased by the rates of

[17]
 46% with the comparison of previous year. And in 2071/72&2072/73 other deposit
are 56735 and 91731 which was increased by 38.15% then that of previous years.

2.1.6 Interest rates of NSBI Bank Ltd

Type of Saving Deposit Interest Rate (p.a) Payable Quaterly

Schemes 9th April 2017, (27th Chaitra 2073)
Corporate Salary Package 2.50%
2.25%
NSBL NariBachatKhata
Minimum balance NRs 500.
2.25%
NSBL Baal BachatKhata
Minimum balance NRs 501.
2.75%
Account can be opened at zero balance. Minimum balance Rs 5000/-
(Auto Lien by System)
NSBL Combo Savings Scheme
(Interest on deposit account to be calculated on the basis of
daily closing balance (day end balance) of the account and credited
quarterly)
2.00%
SwarnimBachat
Minimum balance requirement NRs 30,000
2.00%
IndreniBachatYojana
Minimum balance requirement NRs 10,000
2.25%
VisheshBachat
Minimum balance requirement NRs 50,000
2.75%
VaristhaNagarikBachat
Minimum Balance requirement NRs 1000
KarmachariBachatKhata 2.50%
Savings-Gorkha 2.25%
Savings-Nepal Army 2.75%
Savings-Police 2.75%
Other Saving Deposit
NRS(SaralBachat only) 1.50%
NRS(Public) 2.75%
NRS(Others) 2.00%
USD 0.50%
th st
Call Deposit 14 April 2017, (1 Baisakh 2074)
Minimum Balance Interest Rate
NRs 10,000 1.25%
NRs 1.00 Lacs 1.25%
NRs 10.00 Lacs 1.50%
NRs 50.00 Lacs 1.75%
NRs 75.00 Lacs 1.50%
NRs 1.00 Crore 1.50%
NRs 2.00 Crore 1.50%

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NRs 5.00 Crore and above Negotiable with maximum of 1.50%
Table No.6

Fixed / Recurring Deposits

Interest Rate (p.a) Payable Quarterly
9th April 2017, (27th Chaitra 2073)
Individuals/
Duration Foreign Diplomatic Institutions
Institutions
≥ 1 month and < 3 months 4.00% 3.50%
≥ 3 months and < 6 months 5.25% 4.00%
≥ 6 months and < 1 year 7.50% 4.50%
≥ 1 year and < 2 years 8.00% 5.50%
≥ 2 years and ≤ 3 years 7.50% 5.50%
> 3 years and ≤ 10 years 7.00% 5.50%
Fixed Deposit for 101 days 4.00% 3.50%
Fixed Deposit for 201 days 5.25% 4.00%
Analysis:

In the above table it is seen that the interest rate provided to the customers is based on
the term of maturity of the customers’ deposit. The minimum interest rate is 2%
increasing upto 4% for customers with the deposit upto 5years and thereafter on
maturity period higher than 5 years the interest rate is negotiable.

2.2 Major Findings

From the whole study and analysis of deposit trend of the Nepal SBI Bank Ltd, results
have been found. Likewise, it is found that the maximum deposit is made on the fixed
deposit account with the total fixed deposit of Rs.1451061/- . Likewise the second
highest deposit is made on saving account with the total amount of Rs.981596/- and
on current account total of Rs.198799/- in the fiscal year 2072/73. Besides this the
bank is also providing various schemes on fixed deposit account on the basis of period
of deposit done by the customers ranging from minimum of 1 month fixed deposit to
10 years & above term. Deposit collection on the different account from the public
and the number of customers taking banking services with different purposes shows
the increasing trend on deposit .This is very positive aspect for bank for mobilizing

[19]
the idle fund of public in very productive sectors deciding the higher interest rate in
credit lending than deposit accepting.

CHAPTER III

CONCLUSION AND RECOMMENDATION

3.1 Summary and Conclusion

Nepal SBI Bank Limited current position is good. Inspiteof sluggish economic
condition and political instability of our country, the bank has gained growth. Though
the NSBI is profit oriented, it is doing social beneficial activities as well as smooth
remittance facility, ATM facilities, easy banking etc. From the foregoing discussions
in preceding chapters following conclusion can be derived.
The major findings of this study which covers a period of 5years (2083 to 2073) have
been much efficient in the collection of deposit from the people. The trend of NSBI
shows increasing position in the deposit. More customers are willing to deposit rather
than invest.
According to the study, it is found that there is increase in the collection of deposit.
There is large amount of deposit with NSBI. The main sources of investment of the
bank are the collection of deposit but the activities of the bank for mobilizing deposit
don’t seem satisfactory. It has provided banking facilities to the general public. The
bank has taken further steps for collecting more deposit and granting loans to its
borrowers for their different purpose. Finally, it is concluded that the deposit as well
as loans & advances must increase proportionately in order to maintain balance.

3.2 Recommendation

If we analysis any subject matter both positive and negative sides can be found. Even
the well going work can have its dark sides on the other. That means a well-known or
a well going work can have problem on the other side. The NSBI has got its

[20]
popularity in very short period of time and has spread its work all over Nepal. But
also this bank has some drawbacks which may affect the goodwill of the bank.
Therefore, the bank has to do its work on every step very carefully. Either in
advancing loan or keeping the deposit, the bank must be very careful in every step.
This study discloses some weaknesses of NSBI. Therefore the following
recommendations are submitted:-
Interest rate structure affects both deposit and loans & advances. There should be less
interest to the loaner and the time duration should be more according to the financial
condition of the loaner. Bank should be able to give people highly satisfaction, which
encourage people to deposit their money as well as loaner.
Further the bank must give attention to improve operation and to shorten its procedure
in its making period. Many problems are arrogated with internal organization and
management and so bank should give first attention in this respect. Otherwise
improvement measures may not be effectively used unless the poorest managing
system can`t be improved.
Bank should manage to collect source of fund by attractive interest on deposit prized
for certain amount deposited and gives many more facilities to depositors.
Staffs are the assets of the bank. They should be motivated to increase their
incentives. The smooth running of the banking business depends upon their incentives
provided to the staffs. If the bank has not made provision for providing facilities to
them compared to other bank; they are frustrated and would not take interest in their
duties. So, the bank should make some provision for the betterment of the staffs to run
its business.

[21]
 BIBLIOGRAPHY

Bhandari, D.R.(January 2003), Banking & insurance Principle and practice, 3rd edition,

Ayush Publication, Kathmandu, Nepal.

Bajracharya, B.C. (2000), Business Statistics and Mathematics,M.K Publishers and

Distributers, Kathmandu

Basu, A.K. (1962) ,Fundamentals of Banking Theory and Practice, M.K Publications,

Kathmandu.

Bexley, J.B.(Reprinted in 1996), Banking Management, Ist edition Subject Publication,

India.

Bhuwan and Sharita( 2002), A Handbook of Banking, 2nd edition, Union Press Pvt. Ltd.,

Kathmandu, Nepal.

Shekhar and Shekhar(2001), Banking Theory and Practice, 18th edition, Vikas Publishing

House Pvt. Ltd New Delhi.

Khadka S.J. and Singh H.B. (1965), Banking and insurance(Nepali), Asia Publication,

Kathmandu.

Pradhan, R.P. (2000), A Study of Deposit and its utilization by commercial bank in Nepal,

Kathmandu: An unpublished thesis submitted to institute of management T.U., Kritipur.

Annual Reports of NSBi ( from 2068/69-2072/73)

[22]
 APPENDIX I

Questionnaire:Some questions are asked to the related persons of Nepal SBI Bank
Ltd. as an interview for the collection of necessary data which are as follows:

Name: ……………………………. Age…….

………………………….
Qualification: …………………….

Occupation: ………………………
Address: ………………………… .
Telephone No.:……………………
Questions:

1. When was the Nepal SBI Bank Ltd. established?

2. How many employees are working in the Bank?

3. What are the different difficulties faced in the due course of time?

4. How do you take today’s capital and money market affecting the banking
sector?

5. What is the status of the Bank’s deposit trend with the capital mobilization?

6. Does the deposit effect the liquidity position of the bank?

7. Is the advertising necessary ?(tick your answer)

a. Yes[..] b. No[..]

8. Is there any facility provided to staff?

a. Yes[..] b. No[..]

[23]
 APPENDIX-II

Proposal On Deposit Mobilization Of Nepal SBI Bank Ltd.

1.1 INTRODUCTION

Bank is a financial institution which deals with the monetary activities by accepting
deposits, lending to the various parties against securities and performing agency
services to its clients/customers. It has not so far been decided as to how the word
`Bank` originated. Some authors opine that this word is derived from the word
`Bancus` or `Benque` which means bench. Other authorities hold the opinion that the
word `Bank` is derived from German word `Back` which means `Joint Stock Fund`.
The banks perform not just one function but many types of functions. Bank now not
only invest by giving short term loans to the farmers, traders and industrialists but
also invest in a wide variety of long term earning assets. Banking industry acts as
blood life of modern trade and commerce acting as a bridge to provide a major source
of financial intermediation.

According to Dr. Hart, "Banker or Bank is a person or company carrying on business

of receiving money and collecting drafts for the customers subject to the obligation of
honouring cheques drawn upon them from time to time by customers to the extends of
the amounts available on their current accounts."

According to C.R.Crowther, “A bank collects money from those who have it to spare
or who are saving it out of their incomes, and it lends this money to those who require
it.”

1.2 Background of the study

Nepal SBI Bank Ltd.(NSBL) is a subsidiary of State Bank of India (SBI) having 55
percent of ownership. The local partner viz. Employee Provident Fund holds 15%
equity and General Public 30%. In terms of the Technical Services Agreement
between SBI and the NSBL, the former provides management support to the bank
through its expatriate officers including Managing Director who is also the CEO of

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the Bank. Central Management Committee (CENMAC), consisting of the Managing
Director & CEO, Chief Operating Officer & Dy. CEO, Chief Financial Officer, Chief
Risk Officer and Chief Credit Officer, exercises overall control functions with the
help of 3 Regional Offices, and oversee the overall operations of the Bank.

NSBL was established in July 1993 and has emerged as one of the leading banks of
Nepal, with 679 skilled and dedicated Nepalese employees working in 62 branches, 7
extension counters, 3 Regional Offices and Corporate Office. With presence in 32
districts in Nepal, the Bank is providing value added services to its customers through
its wide network of 85 ATMs, internet banking, mobile wallet, SMS banking, IRCTC
Ticket Online Booking facility, etc. NSBL is one of the fastest growing Commercial
Banks of Nepal with more than 6.22 lakhs satisfied deposit customers and over 4.80
lakhs ATM/Debit cardholders. The Bank enjoys leading position in the country in
terms of penetration of technology products, viz. Mobile Banking, Internet Banking
and Card Services. The Bank is moving ahead in the Nepalese Banking Industry with
significant growth in Net Profit with very nominal NPA. As of 31 stAshad, 2073, the
Bank has deposits of Rs. 65.21 billion and advances (net) of Rs. 47.54 billion, besides
investment portfolio of Rs.19.29billion.

1.3 Statement of the problem

Every research is done due to some problem. So, first of all we have to recognize the
problem of related field of study. A project can’t be projected or objectives can’t be
determined without problem. The main problem of this study is to know and analyze
the trend of deposit of the same bank.

1.4 Objectives of the study

The objectives of the study are as follows.

1. To analyze the deposit trend of NSBI.

2. To analyze the yearly deposits of NSBI in different accounts during different
fiscal year.
3. To present the yearly deposits of NSBI in graph and chart of different fiscal
year.

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 4. To find out changing position of deposit collection along with the interest rates
in last years.

1.5 Review of Related Studies

The financial bank provides different types of deposit schemes to collect idle money
of public. By bringing even an ordinary people in a group, the bank deposits even a
small amount in their accounts, which can be invested into different sectors for which
financial bank charges certain amount as commission which may be the important
source of revenue collection. The financial bank can utilize such funds in providing
seasonal loan as well as to purchase raw material to traders and manufacturers. The
traders and manufacturers use such amount in the process of production through
which they can create a product. After forwarding the product to the market, they
collect the revenue through selling. Then the traders and manufacturers use their
revenue in paying the loan which ensures the recoverable of amount invested in such
sector. In the process of loan providing facility, more than Rs. 100,000 like
educational, building repairing & maintenance involves a high quality of risk to
recover the invested amount as future is unpredictable. The small change in the
environment may effect in the efficiency and financial soundness of the company.
Due to this reason the company is capable to pay the amount of loan in present may
be incapable to pay the amount of loan in future which increases the risk in covering
the loan of financial bank. Deposit helps to increase the banking habit of public by
providing withdrawal facility on the urgent need of money, which is the good
indicator for the economic development of the nation.

1.6 Research Methods

Data collection is an essential part of fieldwork report. Collection of data is very

important for making the report clear and appropriate. Data should not be wrong
because it makes the report less reliable. Two types of data are used to prepare this
report.

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 A. Primary data
The primary data are mainly collected by the personal interview and
questionnaires method with employees. The field observation of this bank and
acquired knowledge about its system also helped in collecting primary data.

B. Secondary data

Almost all the data used in the project are secondary data. Annual report
published by the NSBI, office records, messages which are stored on the NSBI
are the sources of secondary data. All these data have been regressed and
presented in the report after interpreting and analyzing them.

1.7 Data presentation and analysis tools

Various statistical tools were used after compilation. The data was processed
tabulated and graphed to analyze and achieve objective of the study. Hence for the
analysis and evaluation of the report average, percentage, arithmetic mean, trend
analysis and correlation are used.

1. Tables and bar diagrams

2. Pie charts and trend line
3. Average and percentage

1.8 Limitations of the study

During the preparation of this report, I have to face some problems. So, this report is
consists of some limitations. They are as follows:
1. This report only covers deposit trend of the company.
2. Only few financial and statistical tools are used in the analysis.
3. Analysis is done on the basis of only 5 years data.
4. The areas of study are restricted within the Gulmi District.

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1.7 Time management:

This report will start and complete on as:

Time frame No. of days

Topic selection 1
Proposal 2
Field visit and data collection 5
Presentation and analysis 5
Preparation of this report 15
Setting and printing 2
Submission 1
Total 31

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