CHAPTER-1

Introduction
1.1 Background of the study:
Bank is an institution which accepts deposit from the public and a dvances loan to
business and personal customers. Bank deals with money and credit Bank is
commercial institution which aims at earning profit. Bank generally deals with
monetary transaction. In other words, we can say that bank is that kind of financial
institution which receives deposit of money from those having saving and lends to
those who need Money for different purposes, playing and charging interest at the
name of fixed rate of percentage per annum. Nowadays, bank also provides many
types of facilities to their agent. i.e. remitting and collecting cash on behalf of its
clients, opening bank draft and L.C. facilities, underwriting shares of newly
established companies, etc. A bank also helps people in different aspects of life
related to economy such as trade, official work, agriculture, administrative work,
academic field, etc.
Various scholars have described or defined the word "Bank" in different ways. Some
renowned scholar's definitions are given below: -
"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
"A bank is an organization whose principal operations are concerned with the
accumulation of the temporarily idle money of the general public for the purpose of
advancing to other for exlpenditure."2
"A bank is an establishment which makes to individuals such advance of money as
may be required and safely made, and to which individuals entrust money when not
required by them for use."3
"A bank is a manufacturer of credit and machine for facilitating exchange."4
"Bank is an Organization or place that provides a financial service."5
"A bank is an institution for keeping, lending and exchanging etc. of money."6
"A commercial bank is a bank which deals in exchanging currency, accepting deposits
giving loans and doing commercial transaction."7
Therefore, summarizing the above definitions banks are those financial institutions
that offer the widest range of financial functions of any business firm in the economy.
C.R. Crowther

1
 Kent
Prof. Kinley
Horace White
Oxford Dictionary
Chamber's Twentieth century Dictionary
The Commercial Bank Act 2031
Hariday Bir Singh, Banking & Insurance, page no.6&7
History of Development of Bank:
Form where and when banking services were established?
The answer of this question is very difficult, however it can be said that banking
activity are as old as human civilization and exchange activity. This evidence is
available in various old writing like Veda, Ramayana, Mahabharata, Bible and others.
The term bank has been derived from the following words: -
Italian word 'Banca' which means making transaction of money by sitting on a bench.
French word 'Banquee' which means collection of fund like mountain.
Greek word 'Bancus' which means public fund and joint fund.
Certainly, no comparison can be made between ancient and modern banks, yet it is
necessary to know how the present banking system gradually developed. According
to prof. Crowther three groups of ancient community played very important role in the
development of modern bank. These are known as ancestor of modern bank. They
are : -
Merchant
Money Lender
Gold Smith

I. Merchant: - The oldest ancestors of modern banks were merchants. The merchants
used to exchange the gold, silver coins and deposited the valuable ornaments or goods
made of gold, silver and gems. The receipt given by them was considered equivalent
to money.

II. Money Lender: - The money lenders were second ancestors of the modern banks.
Lending and borrowing are almost as old as money itself and the village money
lender, is found even in quite primitive communities.

2
III. Gold Smith: - The gold smiths were the third ancestors of the modern banks.
The gold smiths used to give receipts, which were known as Goldsmith's note. It was
made payable to bearer and on demand which transformed the said receipt into the
position of a bank note.
By the inspiration of these groups the first organizational bank was established in
Genoa, haming as 'casa' De san 'Giorgio' in 1148. 'Bank of Geneva' was established in
1407. Also 'Bank of Barcelona', the famous bank of that time was established in 1407.
But the improvement of banking sector in Europe and the improvement of banking
sector in Europe and the other parts of the world were started to begin only from 17th
century. In the 17th century various important banks were established in different parts
of the Europe like ' Bank of Amsterdam' in 1619. "Bank of Hymberg' in 1610. But
now a day only the 'Bank of England' is in the operation that is why we say it as the
mother of modern banking system. It's headquarters is in Lombard Street. In 1770 'the
bank of Hindustan' was setup as first bank of India. And then joint stock company act
in 1833 was used to operate and established a bank by the parliament of England.

About Topic:
A bank is a mediator or a financial institution, which deals in money, receiving it on
deposit from customers, honoring customer's drawings against such deposit on
demand, collecting cheques for costomer and lending or investing surplus deposits
until they are required for repayment. As we know that there are various functions of
bank, but one of the important functions of bank is to accept deposit. It is the primary
function of any bank. But since deposit creates the liability for banks and on the basis
of liability of the bank, deposits are classified into two types:-
a) Interest Bearing Deposit
b) Non-Interest Bearing Deposit
Out of them interest bearing deposit is in use. It refers such deposit in which bank is
required to pay interest to their depositors. It creates liability of interest, therefore it
is known as interest bearing deposit and call deposit exists. Bank provides fixed
percentage rate of interest to account holders for depositing money in such
accounts.

3
This report is only centralized to interest bearing deposit of Kumari Bank, possesses
great role in capital structure of bank, it seems to provide more percentage rate of
interest in comparison of non-interest deposit.

1.2 Profile of Kumari Bank Ltd:

Kumari Bank Limited, came into existence as the fifteenth commercial bank of
Nepal by starting its banking operations from Charta 21, 2057 B.S (April 03, 2001)
with an objective of providing competitive and modern banking services in the
Nepalese financial market. The bank has paid up capital of Rs. 1,186,099,200.00 of
which 70% is contributed from promoters and remaining from public.
Kumari Bank Ltd has been providing wide - range of modern banking services
through 22 points of representations located in various urban and semi urban part
of the country, 13 outside and 9 inside the valley. The bank is pioneer in providing
some of the latest / lucrative banking services like E-Banking and SMS Banking
services in Nepal. The bank always focus on building sound technology driven
internal system to cater the changing needs of the customers that enhance high
comfort and value. The adoption of modern Globus Software, developed by Temenos
NV, Switzerland and arrangement of centralized data base system enables customer to
make highly secured transactions in any branch regardless of having account with
particular branch. Similarly the bank has been providing 365 days banking
facilities, extended banking hours till 7 PM in the evening, Utility Bill Payment
Services, Inward and Outward Remittance services , Online remit
Services and various other banking services.
Visa Electron Debit Card, which is accessible in entire VISA linked ATMs (including
21 own ATMs) and POS (Point of Sale) terminals both in Nepal and India.
The bank has been able to get recognition as an innovative and fast growing
institution striving to enhance customer value and satisfaction by backing transparent
business practice, professional management, corporate governance and total quality
management as the organizational mission.

The key focus of the bank is always center on serving unfulfilled needs of all classes
of customers located in various parts of the country by offering modern and

4
competitive banking products and services in their door step. The bank always
prioritizes the priorities of the valued customers.
1.3 Objectives of the Study:
The objectives of this research study on topic "Interest bearing deposits", apart from
the requirement of BBS program are covered under the points mentioned below:

General Objectives:
i. To maintain flexibility in interest rate fluctuation.
ii. To identify striking balance in between interest rate fluctuation and
accruing deposit.
iii. To analyze their position in cash collection and the trend of deposit in their
bank.
iv. To analyze the deposit, the trend line of deposit in Kumari Bank Ltd.

Specific Objectives:
 To analyze the interest bearing deposit of Kumari Bank Ltd.
 To analyze the deposit position of Kumari Bank Ltd.

1.4 Rationale of the study:

We know that the research study is requirement of BBS programs to make report. We
can find many importance of research study. They are given below: -
i. To know the condition of banks interest bearing deposits and non-
interest bearing deposits.
ii. To double the pace of economic growth through the sound Banking
Management system.
iii. To find out the problems of the bank and give recommendation to the
bank etc.
1.5 Review of Literature:
The review of literature includes the conceptual review of the topic i.e. interest
bearing deposit of Kumari Bank Limited. Beside these, it this topic the previous
review of work has also been analyzed and mentioned its objectives.
1.5.1 Conceptual Review:

5
The deposit interest rate is paid by financial institutions to deposit account holders.
Deposit accounts include certificates of deposit (CD), savings accounts, and self-
directed deposit retirement accounts. It is similar to a "depo rate," which can refer to
interest paid on the interbank market.
Interest-bearing accounts are types of bank accounts where you can keep your money
safe while earning interest. When you deposit money into an interest-bearing account,
the bank pays you interest (money) based on a percentage of your account balance.
There are different types of accounts that pay depositors interest. They include
savings accounts, high-yield online savings accounts, money market accounts and
Certificates of Deposit. The best type of savings account for you depends on your
timeframe, goals and administrative needs. Here are the different types:

Savings account: This is the white bread of interest-bearing accounts. Savings

accounts are super basic, day-to-day accounts that most banks offer. Most banks allow
you to link your savings account to your checking account to move money back and
forth. The money is typically easy to access, which makes it a good place to stash
your emergency fund. At the same time, if you struggle to save and the money is too
easy to access, you might want to either set up a savings account at a different bank or
explore other account options below. The downside to plain old savings accounts is
that they often pay customers very low interest rates. But if convenience is your
biggest priority, a savings account may be the right choice.

High-yield savings account: A high-yield savings account typically offers

higher interest rates than offered at traditional banks. That’s because these types
of accounts are offered mainly through internet-only banks, credit unions and
the online banking arms of the traditional banks.
1.5.2 Review of previous work:
In the preparation of this Project work Report, there are some research papers
and project report related wih this project work report which contribute some
ideas and help in the presentation of this study. There are very few thesis
submitted to the libraries of Tribhuvan University and its wing colleges on the
same topics. Beside this, there is some other Project Work Report which is
related to this study. The review and the extract from them are presented in
this section.

6
 Sah Mamta (2016) on the topic “Interest Rate Structure and Its Influence on
Deposit and Lending of Joint Venture Bank in Nepal”. He has shown the
influence of interest rate on deposit and lending in Nepalese Joint Venture
Banks.
The major objectives of the study were:
 To analyse the relation between interest rate and deposit.
 To analyse the interest rate and its impact on profitability.
The major findings of the study were;
 The interest rate of all sample banks is found to be decreasing trends.
 Analysis of sample banks shown that interest rates on lending are far
higher than deposit rates.
 Analysis of sample banks concludes that interest rate on deposit is
found low which does not attract the depositor.
Jha Dilip (2017) on the topic “Interest Rate and its Impact on lending Deposit
and Inflation will special reference to government owned banks in Nepal”.
Through the study;
The major objectives of the study were;
 To analyze the trend on interest rate and its impact on deposit and
lending.
 To explore the interest rate and its impact of investment.
 To analyse the interest rate effect on the profitability.
The major findings of the study were;
 The interest rates on both deposit and lending of all sample banks
found to be in decreasing trends. Despite of decrease in deposit and
lending rates, deposit and lending amount is found on increasing
trends.
 Though there is to be negative relationship between lending interest
and lending amount, he found increase in lending amount with increase
in lending rate.
1.6 Methods of the study:
A systematic study needs to follow a proper methodology to achieve pre
determine objective. Research methodology may be defined as “a systematic
process that is adopted by the researcher in studying problem with certain

7
 objective and view”. In other word, research methodology describes the methods
and process applied in the entire aspect of the study focus of data, data gathering
instrument and procedure, data tabulating and processing and methods of analysis.
It is really a method of critical thinking by defined and redefining the problems,
formulating hypo Project Work Report or suggested solution and collecting and
organizing and evaluating data, making decision and making conclusions.
Research Methodology consists of a brief explanation of research design,
population and sample, data collection procedures and techniques of analysis.

1.6.1 Research Design:

A research design is the specification of metods and procedures for acquireing
the information needed. It is the overall operational pattern of faramework for
the project that stipulates what information is to be collected. Form which
sources and by what procedures. Thus a research design is a plan for the
collection an analysis of data. For research there exists different types of
research design like; Historical research, Descriptive research, Case study
research, Field study research, Analytical research. But generally, to analyze
the interest bearing deposit of commercial bank, past historical data are used.
The relevant and needed data have been collected from various publications of
different commercial banks and Nepal Rastra Bank.

1.6.2 Population and Sample:

Population covers the whole or total of the observation that have selected for
the study and sample is the part of population which represents population
with regards to the study.
When it is impossible or very difficult to study the whole population, a part of
the population is selected in order to draw conclusion of the whole population,
this process is sampling and the past selected is called samples. There are 20
commercial banks functioning all over in Nepal. In this study, Kumari Bank
Ltd are selected as sample from population.

1.6.3 Data Collection Procedures:

The most essential work for a researcher is data collection with the help of
different method. And he/she should take care of data collections which are

8
 relevant, free from errors and omissions as far as possible. There are certain
methods to collect primary data. They are:
a) Direct Personal Interviews
b) Indirect oral interviews
c) Information from local correspondents
d) Mailed questionnaire method
e) Schedule to be filled in by enumerators.

Researchers have collected certain data about the topic by direct personal
interviews with the manager of Kumari Bank Ltd. and with its staffs. But due
to lack of time and limitation of a single individual researcher, most of the
data & information are collected from the help of secondary data like annual
report of the bank, banking reports published in various journals, magazines
and news paper, etc. This is how researcher has gathred data & information for
his report.

1.6.4 Techinques of Analysis:

The methods, which are used to analyze a data are known as tools and techniques. To
analyze the performance of Kumari Bank ltd, the data collected from different sources
are presented in tabular form after making necessary adjustments. For the analysis of
data following different two tools are used. They are: -
a) Financial Tools
b) Statistical Tools

a) Financial Tools: - Financial tools are the tools, which are used to
measure the financial performance of the concern from long term as well as
short term solvency point of view. There are wide areas of financial tools that
can be applied in order to analyze the financial performance of Kumari Bank
Ltd. But for our field work study, following ratio analysis tools are taken to
measure the efficiency of Kumari Bank Ltd.
ii. Liquidity ratio: - Liquidity ratio measures the ability of the firm to
discharge its current obligation.
a) Cash reserve ratio (CRR)
b) Balance with NRB to total deposit ratio

9
 c) Investment to total deposit ratio
iii. Interest bearing deposit with other ratio: -

b) Statistical tools: - The mathematical tools which

are used to forecast about the future thought it is unknown, on the basis of past
data are called statistical tools. There are various tools that can be applied in
the study mainly in this study following statistical tools are used: -
i. Bar diagram of interest bearing deposit, total deposit
and investment.
ii. Trend line of interest bearing deposit.
iii. Pie chart.

1.7 Limitations of the study:

It became more difficult to collect data & information for a project with
primary data because of few reasons and due to lack of time. There are certain
limitations of the study. They are: -
i. Focus on interest bearing deposit only.
ii. Lack of computer knowledge.
iii. Less data accessibility
iv. The study is mainly depending on secondary data.

10
 CHAPTER-2
RESUSLTS AND ANALYSIS
2.1 Data Presentation
This chapter will present the data on table and figure. The main objectives of the
study are to present data and analyze them with the help of various financial tools.
This chapter consists of analysis and presentation of empirical data. The important
variables are very sensitive and taken into consideration, so this chapter will
present the analysis of components of deposit, Lending, and its effect on interest
rate. With the help of analysis of components of deposit, lending, and its effect on
interest rate. With the help of analysis of deposit, interest rate has been analyzed
and interpreted. So that, the strength and weakness of this organization and
historical performance and present financial condition can be determined by this
analysis. The financial tools included graphical presentation. The major variables
like assets, liability, sale, debt, and equity are taken for the analysis. Moreover, the
variables affecting to the financial performance is also considered in the study.
The analysis is made through the data presentations and various financial tool
reflecting the relationship among variables affecting financial performance.

11
 Table No. 2.1
Particulars F.Y. 2076-77 F.Y. 2077-78 F.Y. 2078-79 F.Y.2079-
2080
A. Saving Deposit 185467960 446705520 1000068847
1,868,381,213
1) Local Currency 182997426 442124572 984965017 1,795,913,525
1.1 Organized institution 14854035 23859339 168749315 579,141,887
1.2 Individuals 168143391 418264903 816215702 1,216,771,638
1.3 Others - - - -
2) Foreign Currency 2470534 4580948 15103830 72,467,688
2.1 Organized institution - - 1317795 7,637,866
2.2 Individuals 2470534 4580648 13786035 64,829,822
2.3 Others - - - -
B. Fixed Deposit 1082924872 1786380933 2658178631
4,245,038,797
1) Local currency 1082924872 1736925933 2643298631 4,106,309,690
1.1 Organized institution 1028994876 1530006371 2528667487 4,007,670,737
1.2 Individuals 53929996 206919562 114631144 98,638,953
1.3 Others - - - -
2) Foreign currency - 49455000 14880000 138,729,107
2.1 Organized institutions - 49455000 14880000 138,729,107
2.2 Individuals - - - -
2.3 Others org. Inst. - - - -
2.4 Others - - - 947,271,773

2.1.1 Interest bearing deposit scheme of Kumari Bank Ltd.:

D. Certificate of Deposit - - - -
1. Organized institutions - - - -
2. Individuals - - - -
3. Others - - - -

Total Int. Bearing deposit 1456212068 2572643734 4308704463 7,060,691,783

Total Deposit 1684158652 3051758905 4444351452 7,611,653,306

12
 Fig 2.1
Interest bearing deposits of Kumari Bank Ltd:

1
2
3
4
5

At the fiscal year 2076-77, interest bearing deposit was increased to in which saving
deposit was also increased to 10829 laces, call deposit decreased to 1878 laces and
certificate of deposit remained nil.
At the fiscal year 2077-78, interest bearing deposit was increased to 25726
laces, in which saving deposit was increased to 4467 laces, fixed deposit was also
increased to 17863 laces, call deposit was increased to 3395 laces and certificate of
deposit remain nil.
At the fiscal year 2078-79, interest bearing deposit was increased to 43087
laces, in which saving deposit was increased to 10000 laces, fixed deposit also
increased to 26581 laces, call deposit was increased to 6504 laces and certificate of
deposit remained nil.
At the fiscal year 2079-2080, interest bearing deposit was increased to 70606
laces, in which saving deposit was increased to 18683 laces, fixed deposit also
increased to 42450 laces, call deposit was increased to 9472 laces and certificate of
deposit remained nil.
In conclusion, we can say that interest bearing deposit of Kumari Bank is growing
more & more year by year.

13
Above bar diagram shows the interest bearing deposit of Kumari Bank Ltd. of F.Y.
2063-2064 in which saving, fixed & call deposit is given. The interest bearing deposit
of Kumari Bank is more in F.Y. 2076-2077.

2.1.2 Cash reserve ratio: -

This ratio is used to measure banks liquidity and immediate funds like current, saving,
fixed & call deposit. It is calculated by dividing cash & bank balance with total
deposit.

CRR =

Cash & bank balance includes, cash in hand, foreign cash in hand, balance with NRB,
balance with domestic bank and balance held abroad. The following table shows CRR
of Kumari Bank.

Table No. 2.2

Calculate for CRR
Particulars F.Y. 2076-77 F.Y. 2077-78 F.Y. 2078-79 F.Y.2079-2080

Cash & Bank 379467216 469543585 225123980 469,722,133

Total Deposit 1684158652 3051758605 4444351452 7611653306
CRR 22.53% 15.39% 5.07% 16.20%
Source: 2nd, 3rd & 4th Annual report of Kumari Bank.
Fig 2.2
Calculation for CRR

076/77 077/78 078/79 079/80

14
Analysis:
Form the above table no. 2.2, it is clear that CRR of F.Y. 2076-77 & F.Y.
2078-79 is not balanced. But CRR of F.Y. 2065-66 trying to come in pace condition
CRR of F.Y. 2066-2067 is proper balance of CRR.

2.1.3 NRB balance to total deposit ratio: -

According to commercial act, 8% of total deposit amount has to be held at NRB in
order to satisfy the legal requirement. The ratio is calculated by dividing balance with
NRB with total deposit.

NRB balance to total deposits ratio =

Table No. 2.3

NRB to total deposit ratio.
Particulars F.Y. 2076-77 F.Y. 2077-78 F.Y. 2078-79 F.Y.2079-
2080
Balance with NRB 222596254 254904149 132381459 323 ,697,613
Total Deposits 1684158652 3051758905 4444351452 7,611,653,306
NRB balance to Total 13.22% 8.35% 2.98% 4.25%
Deposit ratio
Source: 3nd, 4th & 5th Annual report of Kumari Bank.
Fig 2.3
NRB to total deposit ratio

076/77 077/78 078/79 079/80

15
 Analysis:
In above table, Kumari Bank Ltd. had the NRB balance more than the
requirement of NRB in F.Y. 2077-78 & F.Y. 2078-79 in F.Y. 2079-80, Kumari Bank
is showing the NRB balance to total deposit ratio which is lower than the requirement
of NRB.

2.1.4 Interest Bearing Deposit with other Ratio: -

Interest bearing deposit with total deposit ratio: - The ratio measures the
percentage of interest bearing deposit to total deposit ratio. This is calculated by
dividing interest bearing deposit with total deposit.
Table No. 2.4
Interest bearing deposit with total deposit ratio:
Particulars F.Y. 2076-77 F.Y. 2077-78 F.Y. 2078-79 F.Y.2079-
2080
Interest Bearing Deposit to 1456212068 2572643734 4308704463 7,060,691,783
Total Deposit 1684158652 3051759805 4444351452 7,611,653,306
Interest Bearing Deposit to 86.46% 84.30% 96.95% 92.76%
Total Deposit
Source: 2nd, 3rd & 4th Annual report of Kumari Bank.
Fig No. 2.4
Interest bearing deposit with total deposit ratio:

076/77 077/78 078/79 079/80

16
Analysis:
In the above table interest bearing deposit with total deposit ratio was 86.46% &
84.30% in F.Y. 2076-77, F.Y. 2077-78, F.Y. 2078-79, respectively. In F.Y. 2079-
2080, this ratio is 92.76% which is lesser than 2078-79.

2.1.5 Investment to interest bearing deposit ratio: -

This ratio measures whether Bank is successful in mobilizing the interest bearing
deposit on investment or not.

Investment to interest bearing deposit=

This can be shown by following table:

Table No. 2.5
Investment to interest bearing deposit
Particulars F.Y. 2076- F.Y. 2077-78 F.Y. 2078- F.Y.2079-
77 79 2080
Investment 29106298 410939324 499310970 1,437,170,759
Interest bearing Deposit 1456212068 2572643734 4308704463 7,060,691,783
Interest Bearing Deposit 20.26% 15.97% 11.59% 4.91%
to Total Deposit
Source: 3rd, 4th & 5th Annual report of Kumari Bank.
Table No. 2.5
Investment to interest bearing deposit

076/77 077/78 078/79 079/80

17
 Analysis: -
In the above table investment to interest bearing deposit of Kumari Bank was
17.48%, in F.Y. 2075-76, it decreased to 20.26% in F.Y. 2076-77, it increased to
15.97% and in F.Y. 2078-79, it increased to 11.59% in conclusion, we can say that
this bank was able to mobilize the interest bearing deposit on investment.

2.1.6 Correlation coefficient: -

Table No. 2.6
Correlation Coefficient between Interest & Deposit of Kumari Bank Ltd.
Year Interest Deposit Xy x2 y2
(x) (Y)
2076-77 634.39 691.81 (1608.6) (1776.21) 2857211.41 2587593.96 3154921.96
2077-78 1456.21 1684.16 (786.77) (783.86) 616717.53 619007.03 614436.50
2078-79 2572.64 3051.76 329.655 583.74 192432.81 108672.42 340752.39
2079- 4308.70 4444.35 2065.715 1976.33 4082534.52 4267199.118 3905880.27
2080

= = = = =
8971.94 9872.08 7748896.27 7582472.53 8015991.12

Calculation of Mean:

= = =2242.985

= = = 2468.02

Calculation of correlation coefficient

r=

= 0.9939

18
Calculation of Standard Deviation:

S.D. = (O) =

= 1589.76
Analysis: -
On the basis of the above calculation, the value of r (co-relationship) is +0.99.
It shows that there is high degree of positive correlation between the interest and
deposit of Kumari Bank, i.e. the incensement in the amount of interest also brings the
corresponding increment in the amount of deposit simultaneously. Similarly, the S.D.
(O) of interest is 1589.76.

2.2 Major Findings of the study:

In order to enhance & develop the capital management of Kumari Bank, the global
challenges , which Kumari Bank is facing , should be tackled by prescribing the
following policy measures & programs: -
a. Kumari bank, should expand its branches in rural areas too in order to
develop the living standard of people living.
b. Kumari bank has given ATM facility in some branch not in all
branches.
c. Kumari Bank should give 24-hours banking service.
d. The bank should give proper attention towards training & development
in programs in domestic banks through conduction seminars, conference
etc.
e. The bank should use latest model of computer technology.
f. The bank should give excess services to all branches.

19
 CHAPTER - 3
SUMMARY and CONCLUSION

Interest Bearing Deposit is a critical & important tasking banking sector. So the
researcher has tried to explain in detail. Concluding remarks on the research study
with suggestions & recommendation has been also present in this chapter.

3.1 Summary
Kumari bank Ltd. is the modern bank which gives better serves to its
customer. It not only provides banking services to its customer .It not only provides
banking services but also helps in business houses to make right investment decisions
with trained investment. It is performing its best by the help of modern technology,
modern services in interval of very less time taker to satisfy the customer .It is also
ready to give returns.
Kumari Bank ltd. has sound banking management system with division of
labour & specialization .So, it is awarded two times for best presented accounts by &
CAN. It has also established a unfair public relation department to give its customers
a personal touch. It plays a vital role in development of banking sector in Birgunj &
Nepal as well.
Thus, the financial performance of NIC Bank is good As the bank has been
able to maintain its CRR as per requirement i.e. 5.07%. As we know that activity ratio
helps us to know about the efficiency of the bank in managing its resource. The
interest bearing deposits of Kumari Bank is positively able to mobilize.
3.2 Conclusion
Kumari Bank Ltd. has been able to get success in the banking sector in very
short period (i.e. 4 yr) due to its customer's oriented approach and proper management
of deposit.
Thus, it can be concluded from the observation and analysis of the above data
that interest bearing deposit controls measure economic activity of the nation.
Therefore, it is very important for policy maker to adopt appropriate policy with
calculated interest rate so that large capital can be measured at very low capital cost
encouraging the industrial & commercial activity eventually lending to better
economic growth ,socio economic development , & employment opportunities, etc.

20
BIBLIOGRAPHY
Previous Research Work
Sah Mamta (2016) on the topic “Interest Rate Structure and Its Influence on Deposit
and Lending of Joint Venture Bank in Nepal”.

Jha Dilip (2017) on the topic “Interest Rate and its Impact on lending Deposit and
Inflation will special reference to government owned banks in Nepal”.

BOOKS:

1. 3rd, 4rh & 5TH Annual report of Kumari Bank Ltd.

2. Bhandari, Dilli Raj, Banking & Insurance, PP. 20
3. Crowther, C.R., Hriday Bir Sing, Banking &
Insurance, PP67
4. Horace White, Bir Sing, Banking & Insurance, PP67
5. Hriday Bir Singh, Banking & Insurance, PP. 30
6. Prof. Kinley, Bir Sing, Banking & Insurance, PP67
7. Sarita & Bhandari, A hand book to Banking PP. 4
8. Sarita & Bhuwan Dahal, A hand book to Banking, PP.
31

21