AN ANALYSIS OF DEPOSIT POSITION OF

NABIL BANK LTD.

A Proposal

By

Ganesh Kumar Khatri

West Point College

T.U. Registration No. :- 7-2-0131-0016-2017

Exam Roll No.:- 701310021

Submitted to

The Faculty Of Management

Tribhuvan University

Kathmandu

In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Myagdi, Nepal

2021
 DECLARATION

I hereby declare that the project work entitled “AN ANALYSIS OF DEPOSIT POSITION
OF NABIL BANK LTD.” submitted to the Faculty of Management, Tribhuvan
University, Kathmandu is an original peace of work under the supervision of Mr. Narayan
Sapkota, West Point College, Beni Myagdi, and is submitted in partial fulfillment of the
requirements for the award of the degree of Bachelor of Business Studies (BBS). This
project work report has not been submitted to any other university or institution for the
award of any degree or diploma.

Signature
Ganesh Kumar Khatri
Date : 2078/06/25

ii
 SUPERVISOR’S RECOMMENDATION

The project work report entitled “AN ANALYSIS OF DEPOSIT POSITION OF NABIL

BANK LTD.” submitted by Ganesh Kumar Khatri of West Point College, is prepared

under my supervision as per the procedure and format requirements laid by the faculty of

Management, Tribhuvan University, as a partial fulfillment of the requirements for the

award of the degree of Bachelor of Business Studies. I therefore, recommend the project

work report for evaluation.

Signature:
Narayan Sapkota
West Point College
Date:2078/10/25

iii
 ENDORSEMENT

We hereby endorse the project work entitled “AN ANALYSIS OF DEPOSIT POSITION

OF NABIL BANK LTD.” submitted by Ganesh Kumar Khatri of West Point College,

Beni Myagdi, in partial fulfillment of the requirements for award of the Bachelor of

Business Studies (BBS) for external evaluation.

Signature: Signature:

………………………… …………………………

Management Research Committee West Point College

Date: Date:

iv
 ACKNOWLEDGEMENT

My project shows my dedication and I have done full justice to this title. This a course

designed by Tribhuvan University for bachelors student of commerce. Likewise, all the

fellow student I also extended a lot of pragmatic knowledge while devising the 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 and approx. information on penmanship this report. I

would like to thank Tribhuvan University for providing a chance and allowing for this

study. I am highly appreciative to my project work report supervisor Mr. Narayan

Sapkota and lecturer Mr. Gobinda Subedi of West Point College for this assignment and

proper instructions. Without their help my assignment would not complete at the time.

Besides, I would like to show appreciation to the Nabil Bank Ltd. and other sources, who

provided the data and enlightened the historic background of company. I also indebted to

all the related web sites owners who provided me the data and valuable information.

Thank you!

Ganesh Kumar Khatri

West Point College
Beni Myagdi

v
 TABLE OF CONTENTS

TITLE PAGE............................................................................................................................i
DECLARATION.....................................................................................................................ii
SUPERVISOR’S RECOMMENDATION.............................................................................iii
ENDORSEMENT ..................................................................................................................iv
ACKNOWLEDGEMENT........................................................................................................v
TABLE OF CONTENT...........................................................................................................vi
LIST OF TABLES ................................................................................................................viii
ABBREVIATIONS...................................................................................................................ix

CHAPTER ONE

INTRODUCTION.................................................................................................................1-10
Back ground of the study............................................................................................................1
History of Bank in Nepal.............................................................................................................1
An introduction of Nabil Bank......................................................................................................2
Statement of problem.....................................................................................................................4
Objective of study..........................................................................................................................5
Rational of study............................................................................................................................5
Limitations of the Study..............................................................................................................5
Conceptual Review.........................................................................................................................6
Review of Previous Works.............................................................................................................6
Research Gap..................................................................................................................................7
Research methodology.................................................................................................................8
Research Design...........................................................................................................................9
vi
Population sampling.....................................................................................................................9
Types of Data...............................................................................................................................9
Secondary data source.................................................................................................................9
Data processing techniques.........................................................................................................10
Techniques of analysis................................................................................................................10

CHAPTER TWO

RESULTS AND FINDINGS.....................................................................................................11-16

Data Presentation and analysis...................................................................................................11
Data analysis..............................................................................................................................16
Major Finding............................................................................................................................16

CHAPTER THREE

SUMMARY CONCLUSION....................................................................................................17
Summary…………………………………………………………………………………17
Conclusion………………………………………………………………………………17

BIBLOGRAPHY………………………………………………………………………..18

vii
 LIST OF TABLES

Table 1 Total Deposit position of NABIL………………………………………...………11

Table 2 Current Deposit Position of NABIL……………………………………...………11

Table 3 Saving Deposit Position of NABIL………………………………….…...………12

Table 4 Fixed Deposit Position of NABIL…………………………………...…...………12

Table 5 Interest Bearing Deposit Trend of NABIL ………………………………………12

Table 6 Non-Interest Bearing Deposit Trend of NABIL ………………………...………13

Table 7 Ratio Of Interest-Bearing Deposit to Total Deposits…………………….………13

Table 8 Ratio of Non-Interest-Bearing Deposit to Total Deposits ………………………14

Table 9 Ratio of current deposit to total deposit…………………… ……………...……14

Table 10 Ratio of saving deposit to total deposit……………...……..……………...……14

Table 11 Ratio of Fixed deposit to total deposit ……………...……..……………...……15

Table 12 Ratio of call deposit to total deposit ……………...…,,…...……………...……15

Table 14 Ratio of other deposit to total deposit……………...…,,…...………...…...……16

viii
 LIST OF ABBREVIATION

ATM Automated Teller Machine

A.D. Anno Domi
LC Letter of Credit
NRB Nepal Rastra Bank
No. Number
RBB Rastriya Banijya Bank
ROA Return on Assets
ROE Return on Equity
EPS Earnings Per Share
MPS Market Price Per Share
U.S. United States
FY Fiscal Year
etc. Etcetera
i.e. For example
% Percentage

ix
x
 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 Nepal

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
1
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 28 th Jestha, 2050B.s. with the joint venture of
International Finance Investment and Commercial Bank, Everest Bank Ltd. On 1 st Kartik
2051B.S. with joint venture of Punjab National Bank Ltd of Kathmandu on 28 th 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 Introduction of Nabil Bank Ltd.

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

2
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:

a) With the pledge of goods, and pledge of gold and silver.

b) With the security of immovable property.

c) 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

3
name Nepal Arab Bank Limited till 3lst December 2001. Nabil is the pioneer in
introducing maims innovative products and marketing concept in banking sector of Nepal
with 15 branches and 2 counters in all major cities. It is the only bank having its presence
at Tribhuvan International Airport of the country. Also, the number of outlets in the
country is the highest among the joint venture and private banks operating in Nepal.
Success of Nabil is a milestone in the banking history of Nepal as it paved the way for the
establishment of many commercial banks and financial institutions.

Nabil, as a pioneer in introducing many innovative products and marketing concepts in the
domestic banking sector, represents a milestone in the banking history of Nepal as it
started an era of modern banking with customer satisfaction measured as a focal
objective while doing b u s i n e s s . Operations o f t h e b a n k i n c l u d i n g d a y -to-
day o p e r a t i o n s a n d r i s k 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?

4
a) What is the real and adjusted nature of EPS, BVPS etc.?

b) Is Nabil Bank Ltd. common stock really suitable for investment?

c) What is nature of ROE, EPS, P/E ratios growth is equity etc?

1.3 Objectives 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
Bank Ltd. The study intends to present a brief and clear picture of deposit and its
utilization. The objective of the study includes.

a) To compute deposit position.

b) To analyze the different deposit ratio.

c) To examine the trend of different deposits.

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).

a) To find out the position of Nabil Bank Ltd.

b) To find out the strength and weakness of Nabil Bank Ltd.

c) To find out the marketing style and public relation of the bank.

1.5 Limitation of the study

The study does not present detailed analysis of deposit in Nabil Bank Ltd. 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.
5
a) Annual reports of Nabil Bank Ltd.

b) Annual reports of NRB

c) This study only covers the data of five years only.

1.6 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.

1.6.1 Review of Previous Works

Under this segment, it has tried to find out the major conclusion and recommendations of
the previous study made by the student. The unpublished thesis which is found relevant to
the study are as follows:-

Panta (2005) prepared a report on Deposit Analysis of NABIL Bank Ltd. The present
study has been undertaken to examine and evaluate the financial performance of NABIL.
The financial statement of five years that is from 2000-01 to 2004-05 has been examined
for the purpose of the study. The study has resorted mainly to secondary data that has been
first processed and analyzed comparatively. 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. Thus, the bank's
performance is effective in profitability and towards the customers and may attract more
customers.
6
Lamichhane (2010) the report has been prepared in partial fulfillment of the requirement
for the degree of bachelor of business administration from Purbanchal University, on
Deposit Mix of Everest Bank Ltd. The major findings of the study, which covers a period
of three years (2064-2066), Everest bank has much efficient in collection from people.
Deposit plays a vital role in the mobilization of the amount to earn. Total Deposit is
increasing over 3 years which is increasing gradually. The trends of general public to open
saving deposit account with Everest Bank have been increasing every year. The current
deposits accounts also in increasing trend in every year. But in the case of fixed deposits
accounts is increasing in first two years and then is decreasing. So the trend of deposit
collection is increasing in every year.

Kisan (2020) studied on Deposit Mobilization by the NBL, concluded that commercial
banks play a crucial role in accelerating growth of a country. The bank mobilizes the
saving of the people and diverts them into productive channels. The expansion of branches
as more as possible to encourage the savings i.e. to increase the saving habits of people
and thereby to mobilize the available financial resources efficiently and effectively in a
productive way and concluded that the branch expansion helps to collect more deposits
and utilize the available resources. The conclusion is derived from the analysis of five
years data from 2015 A.D. to 2020 A.D. using Karl's Pearsons's formula, percentage and
ration to meet the objective; the writer has analyzed how far the bank is able to utilize the
collected deposits.

1.7 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

7
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 Nabil Bank Ltd.

1.8 Research Methodology

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 Ltd.” The main purpose of this study is to show deposits and its utilization in
Nabil Bank Ltd. 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 Bank Ltd. 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.

1.8.1 Research Design

Research Methodology is a process of quantitative facts under study. This includes the
assumption and values that serve as ration for research and standard of criteria which a
researcher used for interpreting data and reaching for conclusion.

1.8.2 Population and sample

8
Population

In research, a population is not a demographic population but the entire collection of all
observation of interest i.e. people, objects or events as defined by the researcher is known
as population.

Sampling

Sampling is the selection of a subset of individuals from within a statistical population to

estimate characteristics of the whole population. Statisticians attempt for the sample to
represent the population in question. Two advantages of sampling are lower cost and
faster data collection for measuring the entire population.

Some of the reasons for selecting Sample are as follows:

a) Lower cost

b) Provide greater accuracy

c) Collect data quickly

d) Inaccessible population

1.8.3 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.

1.8.4 Secondary Data Source:

In this study, the main source of data is secondary which are collected from pre-published
9
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.

1.8.5 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.

1.8.6 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.

10
 CHAPTER TWO
RESULTS AND FINDINGS

Data Presentation and Analysis

Table 1
Total Deposit position of NABIL (Rs. in million)
Fiscal Fixed Current Saving Others Call Total Growth
Year Deposit %
2073/074 24044 16946 51398 2871 23634 118893 8
2074/075 45011 17325 44142 3252 24838 134568 13
2075/076 64949 17985 49871 1734 28366 162905 21
2076/077 78605 18230 56885 1698 35371 190789 17
2077/078 93275 30686 72214 7975 19254 223404 17
Source: NABIL Bank Ltd., Annual Financial Statement

This table shows the total and figure 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 fiscal year
2072/073 was Rs.110267 million which were 5% more than that of year fiscal year
2071/073, in fiscal year 2073/074 by 8%. In the year fiscal year 2074/075 the deposit
increased by 13%. In the fiscal year 2075/076 the total deposit increased by 21%. In the
year fiscal year 2076/077 the deposit increased by 17%. In the year fiscal year 2077/078,
the deposit again increased by 17% which reached to Rs.223,404 million.

Table 2
Current Deposit Position of NABIL ( Rs. In Million)
Fiscal Year Current Growth %
2073/074 16946 4
2074/075 17325 2
2075/076 17985 3
2076/077 18230 1

11
 2077/078 30686 68
Source: NABIL Bank Ltd., Annual Financial Statement

Above table and figure 2 shows that the current deposit of NABIL. In the fiscal year
2072/073 was decreased by 1% than the previous year. But there was a increase in the
fiscal year 2073/074 by 4% and the current deposit reached Rs. 16,946 million. In the
fiscal year 2074/075 the current deposit increased by 2%. In the fiscal year 2075/076 the
current deposit increased by 3%. In the fiscal year 2076/077 the current deposit increased
by 1%. In the fiscal year 2077/078 there was massive increment in the current deposit by
68% which reached to Rs. 30,686 million.

Table 3
Saving Deposit Position of NABIL (Rs. in million)
Fiscal Year Year Saving Deposit Growth %
2073/074 2016 51398 -3
2074/075 2017 44142 -14
2075/076 2018 49871 12
2076/077 2019 56885 14
2077/078 2020 72214 27
Source: NABIL Bank Ltd., Annual Financial Statement

Here is the figure of saving deposit of NABIL. In the fiscal year 2072/073 was decreased
by 1% than the previous year. In the fiscal year 2073/074 saving deposit decreased by
3%. In the fiscal year 2074/075 the saving deposit decreased by 14%. But in the fiscal
year 2075/076 the saving deposit increased by 12%. In the fiscal year 2076/077 the
saving deposit increased by 14%. In the fiscal year 2077/078 there was increment in the
saving deposit by 27% which reached to Rs. 30,686 million.
From the above table, saving deposit was decreased till the fiscal year 2074/075 and
increasing afterward. 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
Fiscal Year Fixed Growth %
2073/074 24044 171
2074/075 45011 87
2075/076 64949 44
2076/077 78605 21
2077/078 93275 18
Fixed Deposit Position of NABIL (Rs. in million)
Source: NABIL Bank Ltd., Annual Financial Statement
This above table and figure 4 shows the fixed deposit of NABIL. In the fiscal year
2073/074 there was massive increment in the fixed deposit, i.e. by 171% and the fixed
deposit reached Rs. 24,044 million. In the fiscal year 2074/075 the fixed deposit
increased by 87%. In the fiscal year 2075/076 the fixed deposit increased by 44%. In the
12
fiscal year 2076/077 the fixed deposit increased by 21%. In the fiscal year 2077/078 the
fixed deposit increased by 18%.
From the above table, fixed deposit was increasing in decreasing trend. So, NABIL
should motivate people towards fixed deposit and manage its incremental trend.

Table 5
Interest Bearing Deposit Trend of NABIL (Rs. in million)
Fiscal Year Interest Bearing Deposit Growth %
2073/074 99076 9
2074/075 113991 15
2075/076 143186 26
2076/077 170861 19
2077/078 184743 8
Source: NABIL Bank Ltd., Annual Financial Statement

This above table and figure 5 shows the Interest Bearing Deposit of NABIL. In the fiscal
year 2073/074 there was increment in the interest bearing deposit, i.e. by 9% and the
interest bearing deposit reached Rs. 99,076 million. In the fiscal year 2074/075 the
interest bearing deposit increased by 15%. In the fiscal year 2075/076 the interest bearing
deposit increased by 26%. In the fiscal year 2076/077 the interest bearing deposit
increased by 19%. In the fiscal year 2077/078 the interest bearing deposit increased by
8%.

Table 6
Non-Interest Bearing Deposit Trend of NABIL (Rs. in million)
Fiscal Year Non-Interest Bearing Deposit Growth %
2073/074 19817 4
2074/075 20577 4
2075/076 19719 -4
2076/077 19928 1
2077/078 38661 94
Source: NABIL Bank Ltd., Annual Financial Statement

This above table and figure 6 shows the Non-Interest Bearing Deposit of NABIL. In the
fiscal year 2073/074 the non-interest bearing deposit was increased by 4%. In the fiscal
year 2074/075 the non-interest bearing deposit increased by 4%. But in the fiscal year
2075/076 the non-interest bearing deposit decreased by 4%. In the fiscal year 2076/077
the non-interest bearing deposit increased by 1%. In the fiscal year 2077/078 the non-
interest bearing deposit was massively increased by 94% and reached Rs. 38,661 million.

Table 7
Ratio Of Interest-Bearing Deposit to Total Deposits (Rs. in million)
Fiscal Year Interest Bearing Deposit Total Deposit Ratio %
2073/074 99076 118893 83
13
 2074/075 113991 134568 85
2075/076 143186 162905 88
2076/077 170861 190789 90
2077/078 184743 223404 82
Average 86
Source: NABIL Bank Ltd., Annual Financial Statement

In the above table and figure 4.7, ratio of interest-bearing deposit to total deposits of
NABIL is shown. In the fiscal year 2073/074 the ratio was 83%. In the fiscal year
2074/075 the ratio was 85%. In the fiscal year 2075/076 the ratio was 88%. In the fiscal
year 2076/077 the ratio was 90%. In the fiscal year 2077/078 the ratio was 82%. The
average ratio of interest-bearing deposit of last 5 years seems to be 86%.

Table 8
Ratio of Non-Interest-Bearing Deposit to Total Deposits (Rs. in million)
Fiscal Year Non-Interest-Bearing Deposit Total Deposit Ratio %
2073/074 19817 118893 17
2074/075 20577 134568 15
2075/076 19719 162905 12
2076/077 19928 190789 10
2077/078 38661 223404 17
Average 14
Source: NABIL Bank Ltd., Annual Financial Statement

In the above table 8, ratio of non-interest-bearing deposit to total deposits of NABIL is

shown. In the fiscal year 2073/074 the ratio was 17%. In the fiscal year 2074/075 the
ratio was 15%. In the fiscal year 2075/076 the ratio was 12%. In the fiscal year 2076/077
the ratio was 10%. In the fiscal year 2077/078 the ratio was 17%. The average ratio of
non-interest-bearing deposit to total deposit of last five years seems to be 14%.

Table 9
Ratio of current deposit to total deposit (Rs. in million)
Fiscal Year Current Deposit Total Deposit Ratio %
2073/074 16946 118893 14
2074/075 17325 134568 13
2075/076 17985 162905 11
2076/077 18230 190789 10
2077/078 30686 223404 14
Average 12
Source: NABIL Bank Ltd., Annual Financial Statement

In the above table 9, ratio of current deposit to total deposits of NABIL is shown. In the
fiscal year 2073/074 the ratio was 14%. In the fiscal year 2074/075 the ratio was 13%. In
the fiscal year 2075/076 the ratio was 11%. In the fiscal year 2076/077 the ratio was

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10%. In the fiscal year 2077/078 the ratio was 14%. The average ratio of current deposit
to total deposit of last five years seems to be 12%.

Table 10
Ratio of saving deposit to total deposit (Rs. in million)
Year Saving Deposit Total Deposit Ratio %
2073/074 51398 118893 43
2074/075 44142 134568 33
2075/076 49871 162905 31
2076/077 56885 190789 30
2077/078 72214 223404 32
Average 34
Source: NABIL Bank Ltd., Annual Financial Statement

In the above table 10, ratio of saving deposit to total deposits of NABIL is shown. In the
fiscal year 2073/074 the ratio was 43%. In the fiscal year 2074/075 the ratio was 33%. In
the fiscal year 2075/076 the ratio was 31%. In the fiscal year 2076/077 the ratio was
30%. In the fiscal year 2077/078 the ratio was 32%. The average ratio of saving deposit
to total deposit of last five years seems to be 34%.

Table 11
Ratio of Fixed deposit to total deposit (Rs. in million)
Year Fixed Deposit Total Deposit Ratio %
2073/074 24044 118893 20
2074/075 45011 134568 33
2075/076 64949 162905 40
2076/077 78605 190789 41
2077/078 93275 223404 42
Average 35
Source: NABIL Bank Ltd., Annual Financial Statement

In the above table 11, ratio of fixed deposit to total deposits of NABIL is shown. In the
fiscal year 2073/074 the ratio was 20%. In the fiscal year 2074/075 the ratio was 33%. In
the fiscal year 2075/076 the ratio was 40%. In the fiscal year 2076/077 the ratio was
41%. In the fiscal year 2077/078 the ratio was 42%. The average ratio of fixed deposit to
total deposit of last five years seems to be 35%.

Table 12
Ratio of call deposit to total deposit (Rs. in million)
Year Call Deposit Total Deposit Ratio %
2073/074 23634 118893 20
2074/075 24838 134568 18

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 2075/076 28366 162905 17
2076/077 35371 190789 19
2077/078 19254 223404 9
Average 16
Source: NABIL Bank Ltd., Annual Financial Statement

In the above table 12, ratio of call deposit to total deposits of NABIL is shown. In the
fiscal year 2073/074 the ratio was 20%. In the fiscal year 2074/075 the ratio was 18%. In
the fiscal year 2075/076 the ratio was 17%. In the fiscal year 2076/077 the ratio was
19%. In the fiscal year 2077/078 the ratio was 9%. The average ratio of call deposit to
total deposits of last five years seems to be 16%.

Table 13
Ratio of other deposit to total deposit (Rs. in million)
Year Other Deposit Total Deposit Ratio %
2073/074 2871 118893 2
2074/075 3252 134568 2
2075/076 1734 162905 1
2076/077 1698 190789 1
2077/078 7975 223404 4
Average 2
Source: NABIL Bank Ltd., Annual Financial Statement

In the above table 13, ratio of other deposit to total deposits of NABIL is shown. In the
fiscal year 2073/074 the ratio was 2%. In the fiscal year 2074/075 the ratio was 2%. In
the fiscal year 2075/076 the ratio was 1%. In the fiscal year 2076/077 the ratio was 1%.
In the fiscal year 2077/078 the ratio was 4%. The average ratio of other deposit to total
deposits of last five years seems to be 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 weaknesses to be
recovered and threats to be faced patiently.

Major Findings
 Interest expenses on deposit of NABIL are quite high till the year 2075/06 but there has
been a decreasing afterward.

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 Similarly, the cost of deposit till the year 2075/06 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
SUMMARY AND CONCLUSION
3.1 Summary
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 fiscal years
that is from 2073/074 to 2077/078 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

3.2 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
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 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 .

BIBLOGRAPHY

Books

Adhikari D.R. and Pandey D.L. (2016) Business Research methods, Kathmandu: Asmita
Book Publication

Articles
Panta K.R. (2005) An Analysis of Deposit Position of NABIL Bank Ltd., Public Youth
Campus, Kathmandu
Lamichhane R.P. (2010) An Analysis of Deposit Mix of Everest Bank Ltd., Kantipur
Valley College, Kathmandu
Kisan S. (2020) An Analysis of Deposit Position of Nepal Bank Ltd. West Point College,
Beni

Internet
Annual Report [online] (cited 207, Shrawan 1)
<https://www.nabilbank.com/individual/report/investor-relations> [2074, Shrawan 1]
Annual Report [online] (cited 2075, Shrawan 1)
<https://www.nabilbank.com/individual/report/investor-relations> [2075, Shrawan 1]
Annual Report [online] (cited 2076, Shrawan 1)
<https://www.nabilbank.com/individual/report/investor-relations> [2076, Shrawan 1]
Annual Report [online] (cited 2077, Shrawan 1)
<https://www.nabilbank.com/individual/report/investor-relations> [2077, Shrawan 1]
Annual Report [online] (cited 2078, Shrawan 1)
<https://www.nabilbank.com/individual/report/investor-relations> [2078, Shrawan 1]

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