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hereby declare that the project work entitled “NAME OF TITTLE TOPIC ”submitted to the Faculty of Management, Your University's Name, location of your University is an original peace of work under the supervision of Mr. XYZ (Name of the teacher), faculty member, NAME OF YOURCOLLEGE, LOCATION OF YOUR COLLEGE, and is submitted in
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The
project work report entitled "NAME OF YOUR TOPIC" submitted by YOUR NAME of COLLEGE NAME, LOCATION OF COLLEGE, is prepared under my supervision as per the
procedure and format requirements laid by the Faculty of Management, Name of your University, as partial fulfillment of the requirements for the award of the
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ABSTRACT
Project has to be described in short.This content must not be large it must be like a conclusion.
Half page of content of approximately A4 sized paper will be better.
ACKNOWLEDGEMENT
My
project shows my dedication and I have done full justice to this title. This a
course designed by Name of Your University for bachelors student of commerce.
Likewise all the fellow student I also extended a lot of pragmatic knowledge
while devising this task. I feel the excitement in each and every span of time
while creating this report.
I
would like to express my gratitude to all supporters who provided me very
informative and precious as well as proper information on penmanship this
report. I would like to thank (Name of your University) for providing a chance
and allowing for this study. I am highly appreciative to Lecturers Mr ABC and Mr XYZ Principal
of Your College Name for this assignment and proper instruction without his
help my assignment would not complete at the time.
Besides,
I would like to show appreciation to the related Name of the person of the Name
of researched Company, who provided the data and enlightened the historic
background of company. I also indebted to Mr/s. XYZ who provided me the data
and the valuable information. I cannot entire this assignment without giving thanks
to the Manager/Manager/Officer of the Name of researched company.
Thank
you!
Your Name
Name of your College
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TABLE OF
CONTENTS
Title Page… … … … … … … … … … …… … … … … … … … … … … … …
... i
Declaration
… … … … … … … … … …
…… … … … … … … … … … … … … ii
Supervisor’s Recommendation … … … … … … … … … … … … … … … … … ... iii
Acknowledgement… … … … … … … … … … … … … … … … … … … … … … iv
Abstract… … … … … … … … … … … … … … … … … … … … … … … … …. v
Endorsement … … …. … … … … … … … … … … …. … … … … … … … … … vi
Table of Content… … … … … … … … … … …. … … … … … … … … … …
… vii
List of Tables … … … … … … … … … ... … … … … … … … … … … …. … …viii
List of Figures … … … … … … … … … … … … … … … … … … … … … … …
ix
Abbreviations … … … … … … … … … … … … … … … … … … … … … …
… x
CHAPTER-I
1. INTRODUCTION… … ……. … … … … … … … … … … … … … … Page No.
1.1. Back ground of the study … … … … … … … … … … … … … … … … … … xx
1.1.1 Meaning and definition of Topic … … … … … … … … ... ... ... ... ... .… xx
1.1.2 Relevancy of topic in Nepal… … … … … … … …
… … … … … … … xx
1.1.2.1
List of services/production … … … … … … … … … … … … .xx
1.1.3 An overview of Topic … … … … … … … … … …
… … … … … ... ... xx
1.1.4 Promoters associated with the research company … … … … … … ... ... ...xx
1.1.5 Head
office and Branches of the company… … … … … … … … … .. ..xx
1.1.6 Products
and Services of researching company… … … … … … …. ... ...xx
1.1.7 Meaning of Financial Analysis … … … … …
… … …. … … … ….. ... ... xx
1.2. Statement of problem … … … … … … …. … … … … … … … … …. ... ... ... .xx
1.3. Objective of study … … … … … … … …. … … … … … … … … … … ... ... xx
1.4. Rational
of study … … … … … … … … … … … … … … …. …. ….
... ... ... ..xx
1.5. Report Structure … … … … …
… … … … … … … … … … … … … … ... ... .xx
CHAPTER –II
2. LITERATURE REVIEW … … … … … … … … … … …
… … … … … … xx
2.1 Conceptual Review… … … … …
… … … … … … … … … … … … …. xx
2.2 Review of Previous Works…
… … … … … … … … … … … … … … …xx
2.3 Research
Gap … … … … … ….. … … … … … … . … … … … …
… … xx
CHAPTER –III
3. RESEARCH METHODOLOGY … … … … … … … … … … … … … … …xx
3.1. Type of Research … … … …
….. … … … … … … . … … … … … … … xx
3.2 Population sampling… … … …
….. … … … … … … . … … … … …. … xx
3.3 Types
of Data … … … … ….. … … … … …
… . … … … … … … … … xx
3.4 Data
collection procedure… … … … ….. … … … … … … … … … … … xx
3.5 Instruments… … … … ….. … …
… … … … . … … … … … … … … … xx
3.6 Statistical
Tools and Techniques … … … … ….. … … … … … … . … … xx
3.7 Limitations of the Study …
… … … ….. … … … … … … . … … … … … …xx
CHAPTER – IV
4. RESULTS AND FINDINGS … … … … … … … … … … … … … … … … …. xx
4.1 Presentation
of data … … … … ….. … … … … … … . … … … … … …. xx
4.2 Data analysis… … … … ….. … … … … … … . … … …
… … … … xx
4.3 Major Finding … … … … ….. … … … … … … . … …
… … … … … … xx
CHAPTER –V
5. DISCUSSIONS, CONCLUSION …. … … … … … … … … … … … … … … ...xx
5.1 Discussion
… … … … ….. … … … … … … . … … … … … … ...… … xx
5.2 Conclusion … ... … … … …
….. … … … … … … . … … … …xx
REFERENCE … … … … ….. … … … … … … . … … … … … … … … … … …xx
LIST OF
TABLES
TABLE PAGE NO.
4.1
Current Ratio … … … … … … … … … … … … … … … …. xx
4.2
Cash and bank balance to deposits ratio… … … …
… … … … xx
4.3
Long-term Debt to Net worth Ratio… … … … … … …
… …. xx
4.4
Net worth to Total Liabilities Ratio… … … … …
… … … …. xx
4.5
Capital Adequacy Ratio … … … … … … … … … … … ….. xx
4.6
Loan and Advances to Total Deposit ratio… … ….
… … … …xx
4.7
Credit and Investment to Total Deposits Ratio…
… … … … …xx
4.8
Interest Expenses to Total Expenses Ratio… … …
… … … … xx
4.9
Total Interest Income to Credit &
Investment Ratio… ….. … .. xx
4.10 Return on Assets … … … … … ,.. … … … … … … … … … xx
4.11 Return on Shareholder’s equity… … …. …
…. … … … … … xx
3.12 Net Interest Earned to Total Assets
Ratio… … … … …. … … xx
LIST OF FIGURES
FIGURE PAGE NO.
4.1
Current
Ratio... … … … … … … … … … … … … … … … … … … … … xx
4.2
Cash and
bank balance to deposits ratio … … … … … … … … … … … … xx
4.3
Long-term
Debt to Net worth Ratio… … … … … … …. …. …. …. … …. …xx
4.4
Net
worth to Total Liabilities Ratio… … … … … … … … … … … … … … xx
4.5
Capital
Adequacy Ratio… … … … … … … … … … … … …
… …. … … xx
4.6
Loan and
Advances to Total Deposit ratio … … … … … … … … …. … …. xx
4.7
Credit
and Investment to Total Deposits Ratio… … …. … … …. …. …. ….. xx
4.8
Interest
Expenses to Total Expenses Ratio… … … … … … …. … … … … ...xx
4.9
Total
Interest Income to Credit & Investment Ratio… … … … … … … … ….xx
4.10 Return
on Assets … … … … … … … … … … …
… … …. …… … xx
4.11 Return on Shareholder’s equity… … … … … … … … … …. …. … … … …xx
4.12 Net Interest Earned to Total Assets Ratio… … … …. … … … … … … … … xx
LIST OF
ABBREVIATION
ATM Automated
Teller Machine
A.D. Anno
Domi
HBL Himalayan
Bank Limited
LC Letter of Credit
NRB Nepal
Rastra Bank
No. Number
RBB Rastriya Banijya Bank
U.S. United
States
etc. Etcetera
i.e. For
example
% Percentage
CHAPTER-ONE
INTRODUCTION
1.1
Background of the study
It is very hard
to collect the correct information of the origin of bank. The word “Bank” has
derived from the Italian word “Banco” which means accumulation of money of
stock. It is believed that its origin is from the French word “Banque” which
means “beach” for keeping, lending and exchanging of money or coin in the
market place by money lenders or money changers. It is believed that the
ancestors of modern banking system were merchants, goldsmiths and moneylenders.
Modern banking sowed its seed in the medieval Italy despite strong Christian
prohibitions against charging interest.
The bank had
started in Italy in 12th century as a public bank. The Bank of
Venice that was established in 1158 A.D. was the first bank in the history of
banking. Following its
establishment various banks such as Bank of Barcelona, which was established in
1401 A.D was the second bank of the world. Similarly, Bank of Geneva (1407), Bank of Amsterdam (1609), Bank
of Hindustan (1770) were established. The first central bank was the “Bank of
England” which was established in 1844 AD.
Bank is a
financial institution, which is engaged in monitory transaction. Bank has
always been the most importance and largest financial intermediates. Banks
collect the scattered money from public providing those interests and services.
This collection becomes the capital for the bank to invest. “Banking means the
accepting of money for the view of lending or investment of deposit from the public
repayable on demand or otherwise and withdraw able by cheque, draft or
otherwise”, is according to Banking Regulation Act 1949 of India . World
Bank says “Banks or a financial institution that accepts funds in the forms of
deposit repayable on demand or at short notice.”
1.1.1 History of Bank in Your Country
In the context
of Nepal, like as in the other countries the goldsmith and landlords where the
ancient banker. The Nepalese people were highly exploited by ‘Sahu Mahajan’ by
charging higher interest rate, compound interest rate and even by manipulating
the principal amount. The introducing of ‘Tejarath Adda’ during the tenure of
the Prime Minister Ranoddip Sing (1993 B.S.) was the first step towards the
institutional development of banking in Nepal . The first commercial bank
‘Nepal Bank Limited’ was established on 30th Kartik 1994 B.S.and started to
perform proper banking activities. With the realization of central bank to
develop monetary policy as well as to have proper control over commercial banks
and banking sectors Nepal Rastra Bank was established on 14th Baishak 2017B.S.
under Nepal Rastra Bank Act 2015 B.S. Likewise, Rastra Banijya Bank under the
full ownership of government was established on Magh 2022 as per ‘Rastra
Banijya Bank Act 2015 B.S.’. The growths of the banks accelerated only after
the adoption of liberal economic policy by Nepalese Government .This has
attracted many new investors and encourage opening many new modern banks with
joint venture of foreign banks. Nepal Arab Bank was established on 29th Ashad
2041 B.S. as the first modern bank with the joint venture of Dubai Bank Ltd.
U.A.E. subsequently following its established Nepal Indo Suez Bank France,
Nepal Grinlands Bank England on 16th Marg 2043B.S. with its joint venture of
Grinlands Bank England, Himalayan Bank Ltd on 5th Marg 2049B.S. with the joint
venture of Habib Bank of Pakistan, Nepal SBI Bank Ltd. in28th Ashad 2050
B.S.with joint venture of State Bank of India Nepal Bangladesh Bank Ltd. on
28th Jestha, 2050B.s. with the joint venture of International Finance
Investment and Commercial Bank, Everest Bank Ltd. on 1st Kartik 2051B.S. with
joint venture of Punjab National Bank Ltd of Kathmandu
on 28th Falgun 2051B.S. with joint venture of the Siam Commercial Bank,
Thailand.
Since, the
financial sector in Nepal is small, it is growing fast. At present banking system comprises of
NRB, 16 commercial bank
and many financial
companies, contractual, saving
institution and non- government organization conduction
limited banking activities
transaction. The umbrella act set out regulation for licensing, supervision and
cancellation of commercial bank. Currently, the growths of commercial banks are
shown below:-
1.1.2 List of Commercial Nepal Bank
Source:
nrbbank.com
1.1.3 Introduction of Nabil Bank
A commercial
bank is a financial institution which collects saving from many persons and
institutions and provides credit or loan facility to different industrial and
commercial business. Commercial banking business consists of changing cash into
hank deposit and bank deposit into cash, transferring bank deposit form one
person or institution to other, giving bank deposit in exchange for cheques,
bills of exchange, government securities etc.
Nepal Bank
Limited established in 1994 BS is the first commercial bank in Nepal .
Commercial banks perform various functions. Among them, accepting various types
of deposit is the main function of commercial banks. Commercial banks are
directly related with the people and institution. The commercial bank is an
important bank. Its function is very attractive for people. Although these
banks are truly inspired with
the objective of gaining
profit, these commercial banks are also established to
accelerate common people’s
economic welfare and
facility to make available loan
to the agriculture, industry, and
commerce and to provide the banking services to the public and the state. In Nepal the
commercial bank perform the following functions. Of the many function of the
commercial bank acceptance of deposits is one of them. The bank allows for
opening the three types of accounts to accept deposit for their customers. They
are current, saving and fixed deposit account. People can collect their money
in one of the three as their need. But the interest is given to the saving and
fixed account. The commercial bank performs the important function of accepting
all sorts of deposits. It earns profit
by investing that money in another place.
Another function
of the commercial bank is to provide loan. A commercial bank provide loan to a
person, company and institution etc. A bank can earn a lot of profit from it. A
bank is capable of gain benefit in its banking development by receiving the
interest as pre law and its internal policies. It provides the loan by
accepting the security of debtor. A
bank flow the loan against a
third person guarantee
or with the
pledge of the third person. A bank provides the loan on basis of
agreement or deed of loan. It provides loan on basis of the following deed
securities:
▪ With the pledge of goods, .and pledge of
gold and silver.
▪ With the security of immovable property
▪ With the security of other similar goods.
Nabil Bank
Limited (Nabil) commenced its operation on 12 July, 1984 as the first joint
venture bank in Nepal, Dubai Bank Limited. Dubai
(Later acquired by Emirates Bank International Limited, Dubai ) was the first joint venture partner of
Nabil. Currently NB (international) limited. Ireland is the foreign partner. Nabil
Bank limited had the official name Nepal Arab Bank Limited till 3lst December
2001. Nabil is the pioneer in introducing maims innovative products and
marketing concept in banking sector of Nepal with 15 branches and 2
counters in all major cities. It is the only bank having its presence at Tribhuvan International Airport 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 & Short Deposit
|
Total
|
Growth %
|
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 Deposit
|
Total Deposit Rs.
|
Ratio%
|
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 Deposit
|
Total Deposit Expenses
|
Interest bearing Deposit
|
Cost of 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 (Rs.)
|
Total Loans And Advance (Rs.)
|
Deposit Lending%
|
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 - THREE
DISCUSSION, CONCLUSION
5.1. Discussion
A bank is an
institution, which deals in money. A bank is like a reservoir. It draws surplus
money from the people who save and lend them to the people who want to use it
for productive purpose. In this process the bank earns commission. The rate of
interest paid to the depositors is generally lower than the rate charged to the
borrowers. The difference between these two rates of interest is the profit of
the bank. Deposit collection is the main function of commercial bank. The
present study has been undertaken to examine and evaluate the financial
performance of NABIL. The financial statements of five years that is from
2000/01 to 2004/05 have been examined for the purpose the study. The study has
resorted mainly to secondary data that has been first processed and analyzed
comparatively. Individual interview with the management personnel has been
taken whenever necessary. This study is exploratory as well as analytical
sometimes. NABIL was established in 12th July 1984, which was the
first joint venture bank in Nepal. Among many joint venture banks, it is a
leading one, which is always running in profit due to its proper management and
good policies. Data that I have presented is all from the secondary sources,
which are in the annual reports or other printed matters. A customer can be
account holder when he opens account. There are the numbers of rules and
procedures regarding opening different types of accounts. The interest rates on
different accounts are different
5.2. Conclusion
·
The deposit of NABIL is in increasing trend. The
share of fixed deposit is more than that of savings, current, margin and other
deposits in the deposit mix of NABIL.
·
The trend of interest bearing deposit has been
gradually increasing but there has been more fluctuation in non-interest
bearing deposits, similarly, there is also more fluctuation in interest
expenses on total deposits.
·
The trend analysis shows that the deposit of NABIL
is in increasing trend. In addition to this, the bank is being able to satisfy
its customers and in providing higher quality and newer services to them.
·
Although NABIL has a strong financial base and
capital structure as well as good market status and reputation in order to
attract new customers and increase deposit collection NABIL should introduce
new schemes.
·
Customer services should be diversified and
should further be accommodated.
·
Interest rate on deposit should be competitive
with other commercial banks.
·
The bank should aim towards increasing its
customers but it must also provide the quality services to the present
customers. For this the bank must make plans and policies keeping customers in
mind.
·
Bank should also pay attention towards the
priority sector and industrial sector for lending loans to develop the economic
condition of the country.
Bank should provide more facilities to the staff, it
has to provide job satisfaction, training and should encourage its staff .
REFERENCE
.
Annual Report
of NABIL from 2013 to 2017
Brigham, Eugene
F., “Fundamental of Financial
Management”, Holt Rinchtand Winston: The Dryden Press, 1998.
Ghimire, Shiva
Raj (2011) “Fundamentals of Investment”:
Kathmandu:
Khadka,
Sherjung. (2011), “Banking and
Insurance”. Kathmandu: Asia Publication.
Khan, M.Y. and
Jain P.K., “Management Accounting”,
New Delhi: McGraw Hill Publishing Co. Ltd.
Khan, M. Y. and
P.K., “Financial Management Policy”:
New Delhi: McGraw Hill Publishing Co. Ltd., 1978.
Pradhan, Radhe S
(2009). “Financial Management”:Kathmandu:
Buddha Academic Enterprises Pvt.Ltd: Nepal
Shrestha, M.K.
and Bhandari, D.B (2010), “Financial
Markets and Institution”.
Asmita Publication, Bhotahity, Kathmandu.
Singh, H.B.
(2008), “Banking and Insurance”.
Kathmandu: Asia Publication.
S.P. Gupta,”Statistical
Method”.
Tiwari, Drona
Prasad (2008). “Business Statistics”:
Chabahil: Srijana Books Publishers and Distributors
Van Horn James
C.,”Financial Management Band Policy”:
New Delhi Prentice Hall of India Pvt. Ltd., 1986.
Van Horn James
C.,”Fundamental
Financial Management”: U.S.A. Prentice Hall Inc. Engle Wood Cliff,
1983.
Website:
www.nrb.org.np
If you are in need of additional assistance and want to purchase the project. You can contact 9841077943. Cheers for your project.
If you are in need of additional assistance and want to purchase the project. You can contact 9841077943. Cheers for your project.
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