A Project on NABIL Bank Ltd. Kamaladi
Submitted By: Kiran Lama
T.U. Reg. No. !"!#$$!##!"%%$ &'am Roll No:""%%%( A )ield *ork Re+ort
Submitted to: ,rient -ollege a/arajgunj0 -/akra+at/
In the partial fulfillment of the requirements of the degree of Bachelor of Business studies. studies.
)aculty o1 anagement Studie2 TRIB3U4AN UNI4&RSIT5
R&-,&N6ATI,N
This is to certify that the field work assignment report is Submitted by: Kiran Lama
Reg. No.:- 7-2-!!--2""! Symbol No.:- 722"""#
$ntitled:
A +roject on NABIL Bank Ltd. Kamaladi
%as been prepared and appro&ed by this department. This field work assignment report is forwarded for e'amination. Super&isors (((((((((. Subash *charya +,rincipal
)ate:-((((((((..
A-KN,*L&67&&NT This Report has been prepared as a prereuisite for the completion of the Bac/elor 6egree in Bu2ine22 Studie2 8BBS9 of Tribhu&an /ni&ersity. 0 would like to e'press deep
appreciation and sincere thanks to the 1anagement Nepal 0n&estment 3ank 4td. for pro&iding me the opportunity and encouragement to work in prestigious bank. This program has in fact pro&ided me high opportunity to learn about banking operation and in large e'tent about marketing in Nepal. So many people ha&e contributed their support to me in preparing this report. 5irst of all 0 would like to thank Tribhu&an /ni&ersity for pro&iding us chance and allowing me for this study. 3esides 0 would like to thank entire family of Nabil 3ank for pro&iding me a guidance and great support throughout my particular pro6ect. 0n this regard 0 would like to e'press my cordial thanks to our super&isor 1r. Subash *charya+,rincipal and 1r. Sushil Ra6 )as +4ecturer of rient 8ollege for their keen super&ision ad&ice and support throughout the preparation of the report. 4astly 0 would like to thank all the &aluable people for ha&ing spared their time to assist me by sharing their &iews on the sub6ect.
9iran 4ama 33S rd ear
Table o1 content2
8hapter ;.................................................................................. < 0ntroduction...................................................................... < rigin f 3ank:............................................................... < 1eaning of 3ank.............................................................. < %istory of 3ank 0n Nepal................................................. 7 8ommercial 3ank............................................................ = 8ommercial 3anks in Nepal............................................ = 0ntroduction f Nabil 3ank 4imited................................ = 3ranches........................................................................... # The 3oard of )irectors of Nabil 8onsists of :-.............. ;" )eposits.......................................................................... ;; >uarantees...................................................................... ;; 8redit 8ards................................................................... ;; Tele-banking.................................................................. ;; ?estern /nion 1oney Transfer..................................... ;; S?05T +Society for ?orldwide 0nter 3ank 5inancial Telecommunication...................................................... ;; Safe )eposit 4ocker....................................................... ;2 *utomated Teller 1achines +*T1 ............................. ; ther facilities................................................................ ; 0ntroduction To )eposit................................................. ; Types of )eposit and its *ccount opening ,rocedure ... ; Types of )eposits........................................................... ;@ 0nterest 3earing )eposit................................................. ;@ Non-0nterest 3earing )eposit........................................ ;! Statement f ,roblems.................................................. ;# Significance of the study................................................ ;# b6ecti&e of the study................................................... ;# 4imitation of the study................................................... ;# 1ethodology f Research............................................. 2"
Research )esign............................................................. 2" Sources of )ata.............................................................. 2" )ata ,rocessing Techniues.......................................... 2; Summary 8onclusion *nd Recommendation ....................... 2 Summary........................................................................ 2 8onclusion..................................................................... 2 Recommendations.......................................................... 2@
-/a+ter
Introduction
,rigin ,1 Bank:
0t is &ery hard to collect the correct information of the origin of bank. The ?orld 3ank has deri&ed from the 0talian world A3ancoB. ?hich means accumulation of money of stock. The world of A3ancoB is origin and e&aluation of bank. The 3anco means A3enchB So it can also be said that bank is to stay in chair one place and do the money the business and banking play significant role in the de&elopment of country the bank of Cenice that was established in ;;!= *) was the first hank in the history of banking. The bank of 3arcelona Spain which was the establish in ;@"; *.) was the second bank of the world. The first center bank was the bank of $ngland whit was established in ;=@@ *).
eaning o1 Bank
3ank is a financial intuition which is engaged in monitory transaction. 3ank has always been the most importance and largest financial intermediates. 3ank collect-scattered money from public pro&iding those interests and ser&ices. This collection becomes the capital for the bank to in&est. So the place where time money transactions are done is called 3ank. %ence money of the bank is better to be precise and clear. 0mportance meanings are as follows D*ccording to ?alter leaf:D* bank is that institution or indi&idual who is always ready to ser&ice money on )eposit to be returned against the cheue of their depositor.B *ccording to ,rof. 9inley A* bank is an established which makes to indi&iduals such ad&ances of money as may be reuired safer made and to which indi&iduals entrust money when not reuired for use.B *ccording to %arace ?hite: A3ank is a manufactures of credit and machine for facilitating e'changesB A*ccording to )r. %.4. %art A* bank is one who in the ordinary course of his business recei&es money which he repays by honoring 8heues of persons from whom or on hose account lie recei&ed it. *ccording to >. >rowther:A* 3ank is a dealer in debt in his own and other people are the bankers business is them to take the debt of other people to otter his own in e'change and thereby to credit money. Therefore the bank is an institution which accepts deposits from the public and it turn ad&ances loan by crediting bank plays the ital role in the economical condition too and
creates money administer the payment system interest rates and intermediate between the sa&ing and in&estment.
3i2tory o1 Bank In Ne+al
The modem banking practices are recent origin our country historical e&idences show the presence of some crude banking practices in the earlier period of time. The contributors to the respecti&e time ate considered to be 9ing >una 9am )e& a sudra merchant Shankhadhar the business group. DTankadhariesD of 9antipur and also Te6arath a go&ernment financial 0nstitution established by Rana ,rime minister Rannoddip Singh. 1ore o&er the setting up of DTe6aratha *ddaD 8onsidered as the father of modern banking institution in Nepal.B has been regarded as the first remarkable step in organiEed banking. The first bank to be initiated in Nepal was the commercial bank. The pioneer in the modem bank the history of Nepal 3ank 4imited which was established in the year ;##@ 3S of " 9artik NepalFs 8enter 3ank Rastriya 3ani6ya 3ank was established in 2"; 3S of 3aisakha to perform the function of 8enter 3ank in Nepal. Subseuently another State owned commercial bank. Rastriya 3ank 4td was established with 6oin &enture of %abib 3ank of ,akistan. Nepal S30 3ank followed %imalayan 3ank 4td. in the year 2"!; 3S. Nepal 3angladesh 3ank followed %imalayan 3ank 4td. in the year 2"!; 3S. Nepal 3angladesh 3ank 4td. $&erest 3ank 4td. and 3ank of 9athmandu 4td. were established in 2"!; 3S. Now in Nepal so many commercial banks are established run for smoothly. ,rincipal of 3anking G insurance Share6ung 9hadka G %ridhaya 3ir Singh 3anking has conic to the present ad&anced form through &arious stages. Some sort of banking acti&ities ha&e been carried out since the time immemorial. Traditional forms of banking were traced during the ci&iliEation of >reece Rome and 1esopotamia. *s early as 2""" 38 as a 6oint stock bank later in ;=@@ *) it became the first central bank in the world. The goldsmiths and landlords were the ancient bankers of Nepal as in other countries. They lent money against the deposit of gold ornament or securities of land. The moneylenders charged high ;# 3S +;=7< *) but it did not carry out all the banking acti&ities. Te6arath *dda did not collect deposit form the public but ga&e loans to employees and public against the bullion. %owe&er Nepal 3ank 4imited was the first and real commercial bank in Nepal which was established in ;##@ 3S+;#@7. Nepal Rastra 3ank the central bank of Nepal was established in 2"; 3S +;#!! *) 0n 2"2@ 3S an industrial bank namely Nepal 0ndustrial )e&elopment 8orporation +N0)8 was established. of Nepal Rastra 3ank. 0n 2"@2 3S Nepal also adopted liberal free economic policy and allowed to establish other 6oint &enture banks under collaboration with foreign banks as well as under pri&ate sectors. *t ,resent there are about ;! commercial banks with many branches are operating in Nepal. 5inally a bank is an institution which deals with money by accepting &arious types of deposit disbursing loan and rendering other financial ser&ices. Since banks are rendering a wide range of ser&ices to the ,eople different walks of life they ha&e become and essential part of modern society.
-ommercial Bank
* commercial bank is a financial institution which collects sa&ing from many persons and institutions and pro&ides credit or loan facility to different industrial and commercial business. 8ommercial banking business consists of changing cash into hank deposit and bank deposit into cash transferring bank institution to other gi&ing bank deposit in e'change for cheues. 3ills of e'change go&ernment securities etc. Nepal 3ank 4imited established in ;##@ 3S is the first commercial bank in Nepal. 8ommercial banks perform &arious functions. *mong them accepting &arious types of deposit is the main faction of commercial banks.
-ommercial Bank2 in Ne+al -ommercial Bank
;. 2. . @. !. <. 7. =. #. ;". ;;. ;2. ;. ;@. ;!. ;<. ;7.
Nepal 3ank 4imited Rastriya 3ani6ya 3ank Nepal 0ndosueE 3ank Nepal *rab 3ank 4imited Nepal >rindlays 3ank 4imited %imalayan 3ank 4imited Nepal S30 3ank 4imited Nepal 3angladesh 3ank 4imited $&erest 3ank 4imited 3ank of 9athmandu 3ank of 8eylon 4umbini 3ank 4imited Nepal 0ndustrial G 8ommercial 3ank 4imited 4a'mi 3ank 4imited 9umari 3ank 4imited Nepal 0n&estment 3ank 4imited 1achhapuchhre 3ank 4imited
Introduction ,1 Nabil Bank Limited
Nabil 3ank 4imited +Nabil commenced its operation on ;2 Hul 0#=@ as the first 6oint &enture bank in Nepal )ubai 3ank 4imited. )ubai +4ater acuired by $mirates 3ank 0nternational limited )ubai was the first 6oint &enture partner of Nabil. 8urrently N3 +international limited. 0reland is the foreign partner. Nabil 3ank limited had the official name Nepal *rab 3ank 4imited till lst )ecember 2"";. Nabil is the pioneer in introducing maims inno&ati&e products and marketing concept in banking sector of Nepal with ;! &enture and pri&ate banks operating in Nepal. Success of Nabil is a milestone in the banking history of Nepal as it pa&ed the way for the establishment of many commercial banks and financial institutions.
Nabil pro&ides a full range of commercial banking ser&ices through its outlets spread across the nation and reputed correspondent banks across the globe. 1oreo&er Nabil has a good name in the market for its highly personaliEed ser&ices to the customers. *t the time of commencement it had Rs ;"" million as *uthoriEed 8apital. Now the *uthoriEed capital of the bank is Rs. !"" million while the issued and paid up capital is Rs. @#;<!@@"". The share holding of N*304 3ank 4td. is as following. N.3. +0nternational 4td. 0reland Nepalese ,ublic 4ocal 5inancial 0nstitutions Total
!"I "I 2"I %%;
)igure A Share Holder N.B. (International), Ltd., Ireland
20%
Nepalese Publi 50% 30%
Loal !inanial Institutions
Nabil cordially in&ites you to &isit its branchesJcounters to ha&e the taste of fledge banking ser&ices
N*304 3*N9 4010T$) %$*) 5508$ Nabil %ouse 9amaladi 9athmandu
Branc/e2
;. 9antipath 3ranch 9antipath 2. Nabil %ouse 8orporate 3anking Nabil %ouse 9amaladi 9tm. . New Road 3ranch New Road @. Horpati 3ranch Horpati !. 4alitpur 3ranch 9upondole <. *irport $'change 8ounter T0* 7. 8redit 8ard 8ounter Thamel 9tm =. 3iratnagar 3ranch >oswara Raod
#. 0tahari 3ranch 1ain Road 0tahari ;". 3utwal 3ranch 1ain road 3utwal ;;. 3halwadi 3ranch 3halwadi Rupandehi ;2. ,okhara 3ranch 8hipledhunga ,okhara ;. 3hairahawa 3ranch Narayanpath ;@. 8redit 8ard 8ounter 4akeside ,okhara ;!.3irgun6 3ranch *darshanagar 3irgun6 ;<. *lau 3ranch *lau ,arsa
T/e Board o1 6irector2 o1 Nabil -on2i2t2 o1 :!
8hairman )irector )irector )irector *lternate )irector
1r. Satyendra ,yara Shrestha N3+0nternational 4imited 1r. Supriya >upta N3+0nternational 4imited 1r. 1ukunda Nath )hungel Nepal Stock $'change 4imited 1r. 1ohiuddin *hemd N3+0nternational 4imited 1r. 1anish >upta N3+0nternational 4imited
5igure 3
,roducts G Ser&ices
)eposits
8redits cards
4ending
Tele- banking
Safe )eposit 4ocker
Transfer 5und
6e+o2it2
5ollowing types of accounts can he opened at any N*304 branches upon completion of simple documentary reuirement. *ll the accounts can he opened in &arious currencies +against which rate are pro&ided sub6ect to ruled of opening and fulfilling the reuired documents. Sa&ings 8urrent 5i'ed 8all
7uarantee2
N*304 3ank issues guarantees and 3onds on behalf of customers to the beneficiaries in Nepal. /pon fulfillment of reuirement N*304 also arranges issuance of guarantees in the name of foreign beneficiaries through reputed international banks.
-redit -ard2
N*304 is the first bank in Nepal to issue Rupee +&alid in Nepal and 0ndia and international &alid worldwide 1aster card cards in Nepal a global prestigious ser&ice to its esteemed clients N*304 is also e'panding credit and facilities issuing &isa credit card &ery soon. Tele!banking
Telephone banking is another product pro&ided by N*304 bank to its customers. /nder this arrangement customer can know the balance of his account through telephone with out human assistance.
*e2tern Union oney Tran21er
N*304 bank has established uniue money remittance system with western union financial ser&ice whereby money can be remitted anywhere in the world within minutes through online computer system funds can world. Nepali wage earners abroad can send money to their near and dear ones in Nepal within a &ery short time. 3y using the abo&e ser&ices you can now send and recei&e money within minutes in ;
S*I)T 8Society 1or *orld
N*304 has started ?orldwide transfer of fund by this fast and efficient funds transfer and messaging system. 1essaging and fund transfers are carried through S?05T with minimum time and cost.
Sa1e 6e+o2it Locker
N*304 pro&ides safe deposit lockers to keep &aluables safety at a minimum cost. ,resently this facility is a&ailable at 9antipath and 9amaladi offices.
Automated Teller ac/ine2 8AT9
N*304 has launched the *T1 facility to its account holders to enable fast withdrawal of funds in account holder need not wait long hours for withdrawing money and sign cheues anymore. * simple card with a uniue ,0N number known only to the account holder will suffice.
,t/er 1acilitie2
The bank pro&ides the facilities for the customer like deposit ser&ices loans and ad&ances consumer finance cash management. remittance ser&ices etc.
Introduction To 6e+o2it
)eposit collection is one of the main features of commercial bank. * commercial bank recei&es deposit in different accounts namely current fi'ed and sa&ing. These are the direct deposits. ?hen a bank recei&es cash it grants a right to the depositors to withdraw it whene&er they like Nepal 3ani6ya. 3ank *ct has regulated all the deposit 2";. The act specifies. A)eposit mean amount deposited in current fi'ed and sa&ing deposit account of hank of financial institutionKs. *mong 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 sa&ers. 3ank accepts deposit from those that can sa&e but canKt utiliEe profitably. ,eople accidents the deposit of commercial banks is increasing because people know its importance. So banks accept money on current sa&ing. 3anks utiliEe efficiencies to attract more deposits to increase credit acti&ities. )eposits are with draw able according to the terms of contract with the depositors to attract the people o deposit the bank maintains different types of deposit accounts.
Ty+e2 o1 6e+o2it and it2 Account o+ening Procedure
)eposit is the ma6or source of fund of commercial bank which is generated in the hands of customers go&ernment corporate bodies public enterprises indi&iduals and others and a surplus. ain 1eature2 ;. ,urpose: sa&ing fi'ed or call +short term 2. ?ith maturity or without maturity . 0nterest bearing and non interest bearing 0t interest bearing: 8alculation of interest on monthly minimum balance or a&erage balance ,ayment of interest uarterly or semi annually
Special arrangement with any other deposit account
@
perate or nom operati&e 0f operati&e: 4imitation on freuency and amount of withdrawal: yea or no <. Time liabilities or demand liabilities.
Ty+e2 o1 6e+o2it2
)eposits of commercial banks can he categoriEed into following two categories ;. 0nterest bearing deposit 2. Non interest hearing deposit
Intere2t Bearing 6e+o2it a.
Sa=ing 6e+o2it
The pm pose of sa&ing deposit is to encourage the habit of sa&ing among the common people and institutions. Sa&ing deposits attract interes t which is normal less than that of longterm deposit but more than that of short-term deposit. There is restriction in this account to withdraw any amount. The with more funds for the credit acti&ities interest is paid in this deposit account. *ccording to 8ommercial 3ank *ct the sa&ing account means an account of amounts deposited in a bank for sa&ings purposes. Sa&ing *ccount are generally opened for the sa&ings of customers +indi&iduals nonprofit organiEation charitable trusts clubs associations and cooperati&e who want to sa&e for meeting future needs Sa&ings accounts is suitable for the customers who do not want to withdraw freuently or who do not want to keep certain amount for fi'ed long period The main features of such accounts are as follows: i. 0nterest bearing ii. Restriction or limitation in respect of both the amount of withdrawal and freuency withdrawal. iii. ,urpose and period of such deposit is for sa&ings purpose for the indi&iduals who do not want freuent withdrawals and who do not want to keep money for fi'ed long period. b.
)i'ed 6e+o2it> Term 6e+o2it
*nother source of deposit is the fi'ed deposit account. 1oney in this account is deposited for a fi'ed period of time which cannot be withdrawn before the maturity of time. The rate of interest on this account is higher than other accounts. 0t is also known as time deposit. >eneral this is for three months to fi&e years. *ccording to 8ommercial 3ank *ct fi'ed account means the account of amount deposit in a bank for a certain period of time. The main features of such accounts are as follows:
c.
i.
Specific period Normally the bank is not bound to repay the amount until the maturity of the fi'ed deposit. %owe&er on reuest of the depositor a banker may liuidate the fi'ed deposit and repay the amount interest will be paid at the discretion of the banker.
ii.
Non operati&e 5i'ed deposit account is non operati&e i.e. depositing into or withdrawal from fi'ed deposit account as in case of sa&ings and current deposit account is not allowed. -all 6e+o2it
The banks may accept deposit for short period of time to meet the short fall and such deposits secured from money market and ha&ing element of o&ernight stay is called call deposits. The rates of interest of such funds are not fi'ed hut are dependent on demand and supply of funds in the money market. Such all deposits become payable on demand and hence such deposits become payable demand and hence such deposits are considered demand liabilities of the bank. i. ii. iii. i&.
Non-operati&e Short term: o&ernight stay 0nterest rate not fi'eda ,ayable at demand d.
i.
,t/er 6e+o2it
3earer 8ertificate of )eposit
0t is a scheme of special type of deposit where some specified amount of money for specific period of note is accepted as deposit against a certificate gi&en by the banker to a customer. * bank issues such the principal amount and will issue the will issue the certificate for such amount which will include the interest payable at maturity on the amount deposited. n maturity date any person presenting the certificate at the bank can encase the same. Such types of deposits are considered as time liabilities.
i. ii. iii. i&.
The ma6or feature of such deposit are as follow s:L Negotiable with prepaid interest ha&ing fi'ed maturity No particulars of the depositor contained in the certificate. pening of account is not reuired 0t could be discontented before maturity
Non!Intere2t Bearing 6e+o2it
a. 8urrent )eposit *ccount. 8urrent deposit is also known as demand deposit as the deposit is with draw able on demand. 8urrent deposits are withdrawn able on the demand of the customers. 3anks ha&e to make themsel&es ready to pay the depositors at hand to pay according to the wish of the customer. 0f the bank cannot pay the customer according to the demand
the reputation of the bank may fall of the banking acti&ities may tail. The business people business institutions who ha&e to withdraw at any time normally open it. Since banks ha&e to maintain high liuidity to meet customers demand no interest is paid on such deposit. *ccording to 8ommercial 3ank *ct the current account means an account of amounts deposited in bank. which may be drawn at any time on demand. i.
No yield *s the cost of pro&iding the facilities of current account becomes considerable to the banks do not pa any interest on the balance of current account.
ii.
%ighly liuid and no limitation There is no limitation on withdrawal and deposit of any amount within banking hours Pri=ilege2
&erdraft facilities are pro&ided to current account holder only. The banks normally sanction the loans and ad&ances through current accounts since they are not gi&en in cash. Account ,+ening Procedure . A++lication on t/e +re2cribed 1orm
The customer who comes to hank with a desire to open an account in the bank should complete the application from designed in prescribed format. N*304 3ank also has its own The reuired to fill up the name address occupation nationality etc. about the customer. The form is designed with a declaration that the applicant should accept that he should comply with the banks rule on force from time to time for the operation of the account. ". Re1erence ?Introduction
The selection of the customer is regarded to be done by the customer &ery carefully. *fter being satisfied about the identity of the account opening indi&idual or film the banker should take person incapable of making a &alid contract. 0n such a case banker does not get any protection under Negotiable 0nstrument *ct and is considered guilty of negligence. #. S+ecimen Signature
The bank has 0ts own specimen signature card which is pro&ided to the customer for putting one or more specimen signatures of him. These cards are inde'ed and placed in a &isa desk in numerical order. These signature specimens are used by the bank bar issue and payment filing into hands of unauthoriEed persons and also to e'clude the chance of replacements of it by fraudulent card. @. Account ,+ening andate
The customer may authoriEe the third person to operate tile account for which clear instruction for operation of the account shall he noted on both account opening form and specimen signature cards. The name and the signature of the mandated must pro&ide the copy of hisJher citiEenship certificate and must also be presented in the bank. Procedure 1or ,+ening Sa=ing and -urrent Account.
;. The account opening form and specimen signature cards are reuired to be filled up mid submitted 0 he details in the form shall he checked by the account opening official signature in the specimen he &erified. The proposed account opener must be percent at the time put signature in specimen Signature ear in front of the account opening official 2. *fter being satisfied with the document and account and account opening from it is placed before the manager for appro&al. The document reuired for current accounts are as follows. They should pro&ided a copy of: i.
5or ,roprietor business a. b. c.
Registration certificate 0ncome ta' certificate 8itiEenship certificate of the proprietor.
ii.
5or partnership business a. b. c. d.
iii.
Registration certificate 0ncome ta' certificate ,artnership deed 8itiEenship certificate of the partners 4imited companies
a. b. c. d. e. i&.
Registration certificate 0ncome ta' certificate M3oard resolution for operation of account. 1emorandum and articles 8itiEenship certificates of the directors N> lobs school associations
a. b. c. d.
Registration certification 3oard resolution 3y laws 8itiEenship certification
+Those customers who fall under C*T payer should also pro&ided a copy of C*T Registration certificate Note: 8opy of citiEenship certificate in case of indi&idual sa&ing +for opening sa&ing account in the name of associations cooperati&es non-profit organiEations like N>s charitable trust all the documents are reuired are reuired as in point +i& abo&e in case of current account is reuired. . Then the account opening official should allot an account no from basic number register in both the form and specimen signature card. @. *ccount is opened in the computer also. !. The particulars of account opening form and the account number is entered in the respecti&e account opened and register. <. *gainst the reuest for cheues book as mentioned in account number is entered in the cheues lea&es are printed blinded at the end of business hour and pro&ided to the customer along with letter of banks ne't day. The cheues book numbers shall be recorded in the cheue book issue register and handed o&er to the part against his her acknowledgement. 7. The signature is scanned from the specimen signature card and placed fir final appro&al to the manager. =. *fter the final appro&al the account opening form is filed in numerical order in the respecti&e account type file. Procedure 1or ,+ening )i'ed 6e+o2it Account
;. Separate account opening form for fi'ed deposit is designed. The customer wishing to open a fi'ed deposit account shall till up such form and put the signature in the specimen card which is same as in the case of sa&ing and current account opening. 2. The form contains the rate of interest period amount and the nominee account for crediting the interest and two witnesses along with nominee form in the back. . The account opening official after being satisfied with the form allots a number from the basic number register and puts in the form. @. The accounts opened in the computer and details are entered. !. The details such as name date of opening rate of interest maturity date nominee aJc for interest should be recorded in fi'ed deposit register. <. 0n case of fi'ed deposit being opened through the cheues the official looking after the fi'ed account does the transaction. 0n case of back to the account opening official. 7. Then the account opening official shall issue the fi'ed deposit receipt. =. The account opening form specimen signature card fi'ed deposit receipt and the &oucher are placed before the manager for the final appro&al and signature. #. /pon completion of full formalities as abo&e the fi'ed deposit receipt is handed o&er to the customer against hisJher acknowledgement on the counterfoil of the fi'ed deposit receipt. ;". The account opening form is filed in the numerical order in a separate file. The specimen signature card is placed is placed in the &isa desk in numerical order once its gats scanned and appro&ed by the manager.
Statement ,1 Problem2
*s we know that the main ob6ecti&e of any business organiEation e.g. 3ank. is profit ma'imiEation. )eposit mobiliEation is the key factor to attain this ob6ecti&e: therefore if the bank fails to employ its funds suitably it is not possible to ma'imiEe profit. * bank has to make decisions with a framework of statutory reuirements of credit regulation by center bank as well as the national ob6ecti&es that are determined in the matter of the pro&ision of credit from time to time. Through the banking system is making much progress the progress has been set up with the problems and hindrances. the banking system and do not know the importance of bank. 3ank concentrate only in the city so that the &illages ha&e to take a loan from money 4ander at a high rate of interest. 1ost of the people keep their sa&ing idle or gi&e it to others to use it in greed of more interest.
Signi1icance o1 t/e 2tudy
)eposit collection is the ma6or function of all commercial banks which help to carry out almost all transaction of the bank. 1ostly among the &arious deposit features pro&ided by commercial banks fi'ed and sa&ing deposit are considered to be more important 0n the case of term deposit although the this deposit can be in&ested in short term loans with higher rate of return +interest and hence it helps to earn high profits. So the deposits in the commercial banks ha&e a good contribution to the country economy. 0f deposits are well intends to gi&e general information regarding banking deposits and prospects of the deposit and its mobiliEation in the country which may gi&e the general idea about banking and deposits
,bjecti=e o1 t/e 2tudy
the ob6ecti&e of this fieldwork is to analyses deposits collected in N*304. The study intends to present a brief and clear picture of deposit and its utiliEation. The ob6ecti&e of the study includes. - To find out deposit trend of N*304 bank. - To find out the deposit mi'. - To analyses the cost of deposit - To analyses whether the deposits are being properly utiliEed or not Limitation o1 t/e 2tudy
The study does not present detailed analysis of deposit in N*304 due to lack of time rele&ant data and resources. This study is limited to the information that was a&ailable from the bank and other sources. - *nnual reports of N*304 - *nnual reports of NR3 - *rticles in Newspapers 6ournals booklets issues published by financial institution.
et/odology ,1 Re2earc/
Re2earc/ 6e2ign
The research methodology is the process of arri&ing to the solution of the problems through planned and systematic dealing with the collection analysis and interpretation of facts and figures. *s the research entirely considers about the about A)eposit *nalysis of N*304 3ankB The been used which pro&es helpful to deposit analysis. 5or the purpose of achie&ing the ob6ecti&e the following methodology is used. The data has been collected by acuiring &arious kinds or reposts bulletins and 6ournals from the organiEation. Similarly data has been acuired from NR3 also. The study report is based mostly on secondary information of N*304. 0n addition to this reference has been made in library consult class lectures books related to banking financial management and accounting during the preparation of this study.
Source2 o1 6ata
5or the preparation of this report different kinds of books are followed. 0n this report all the data collected is secondary in nature. *lmost all the data has been collected form published annual reports brochures etc. 1ostly all the data are collected from the concerned bank.
Primary 6ata Source:
,rimary source of data is uestionnaires obser&ation inter&iewing personally in the site. The data regarding the organiEation its feature and structures were recei&ed primary through the officer of N*304. Secondary 6ata Source:
0n this study the main source of data is secondary which are collected from pre publisher data sources. The secondary data sources used in this stud are: Internal 2ource *nnual reports of N*304 0nterim performance report &'ternal 2ource 3ook publications Hournals *rticles from newspapers *nnual reports of NR3
6ata Proce22ing Tec/niue2
The data collected from the abo&e stated sources has been classified tabulated and interpreted for easier study. -la22i1ication and Tabulation o1 6ata
The data collected are classified tabulated and arranged in manner to make it easily understandable with the use of tables in chronological order. *fter classification the data is tabulated. 6iagrammatic Re+re2entation o1 6ata
Carious diagrams are used to present the data more clearly. The diagrams used are follows: 3ar )iagram ,ie 8hart 4ine >raph 3ar >raph
Tool2 1or Analy2i2 o1 6ata Carious 5inancial. *ccounting and statistical tools ha&e been used of analyses the collected data and interpret the result obtained. The &arious tools used are: )eposit Trend )eposit 4anding Ratio )eposit 1i' Ratio of 0nterest 3earing )eposit to Total )eposit )eposit 8ategoriEation Ration of Non interest 3earing )eposit to Total )eposit 0nterest $'penses Ration of 5i'ed )eposit to Total )eposit 8ost of )eposit Ratio of 8urrent )eposit to Total )eposit 8orrelation 8oefficient Ration Sa&ing )eposit to Total )eposit Trend *nalysis
S*,T Analy2i2
None of the organiEations is perfect in each and e&ery way. 0 here are some weaknesses and threats which affect the organiEationKs performance. 0t may ha&e lots of strength to be proud of but besides with some weakness and threats as well. *nd the organiEation does not remain same fore&er there will be lots of opportunities in order to e'pand the transactions. So N*304 has also its strength to be proud some weakness to be reco&ered and threats to be faced patiently. Strengt/
a. N*304 has 2!" correspondent relationships besides numerous drawing arrangements with 7! banks in @" countries of the world. Nabil has also drawing arrangement with the e'change companies and bank besides many others lie %abib atar 0nternational $'change 4imited )oha atar.
b. To add its strength. N*304 has &ast network system in the nation thus helping customer to transact through bank from place to place. 0t has ;7 branches nationwide which is the highest number of any 6oint &enture bank in Nepal. 0t is the only bank to operate inside international airport of arri&al and departure lounges. c. Nabil is well known for pro&iding highly personaliEed ser&ices to its customers. 0t pro&ides different ser&ices like *T1 credit cards Tele banking ser&ice safe deposit locker etc. 0t has also introduced a number of attracti&e deposit skills. d. %uman resources in N*304 are well trained and they are dedicated to the bank too. N*304 is pro&iding high remuneration and other benefits as well to its staff. e. N*304 is well supplied with latest technology. 8omputer does most of banking ser&ices. Thus the ser&ices of the bank are prompt and accurate. The bank is capable to maintain the standard.
*eakne22:
a. The 0ncrease in the number of branches increases the cost operation. *dministration e'penses for personnel etc. are increased. b. The political instability in the country can he considered another weakness of the bank. c. Too much dependency in computers is not considered to be reliable. d. N*304 pays high interest rates on deposits. 5or this reason the bank also charges high interest rates on credit which has bad impact in in&estment situation in nation. e. Staff is unwilling to gi&e e&en reuired information. 0t seems that they donKt want to cooperate with once who are not really its customers. ,++ortunitie2
a.
b.
c. d. e.
* lot of people deposit their fund in this bank due to its skill in attracting people by adopting attracti&e policies like high interest rate prompt ser&ices credit card ser&ice *T1 etc. Staff can perform their work more efficiently with the help of computers. The en&ironment of the bank is sound which helps to enhance its stall bar its better profitability. ,eople in &arious sectors get employed through this bank which has highest number of branches among 6oint &enture banks in the nation. 8itiEens of underde&eloped country like Nepal get the fa&orable chance to show their inner skills and talent. The policies of the %1> and NR3 rules and regulation always gi&e confidence to the banking sector to uplift the economy of the nation.
T/reat2
a. 3anks must land and in&est its fund to parties ha&ing good reputation. therwise the bank will ha&e to regret later on.
b. $'cess go&ernment pressure may create irregular banking transaction which leads to bad reputation of the bank. c. The economic condition of country is deteriorating. d. There is increasing number of competitions. Now there are ; commercial banks which include # 6oint &enture and @! finance companies. e. The bank should be discouraged to open account for the indi&iduals or firms ha&ing bad reputation. 0t 1ay be a threat which can ruin the bank.
Summary0 -onclu2ion And Recommendation
Summary
* bank is an institution which deals in money. * bank is like a reser&oir. 0t draws surplus money from the people who sa&e and lend them to the people who want to use it for producti&e purpose. 0n 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. )eposit collection is the main function of commercial bank. The present study has been undertaken to e'amine and e&aluate the financial performance of N*304. The financial statements of fi&e years that is from 2"""J"; to 2""@J"! ha&e been e'amined for the purpose the study. The study has resorted mainly to secondary data that has been first processed and analyEed comparati&ely. 0ndi&idual inter&iew with the management personnel has been taken whene&er necessary. This study is e'ploratory as well as analytical sometimes. N*304 was established in ;2th Huly ;#=@ which was the first 6oint &enture bank in Nepal. *mong many 6oint &enture banks it is a leading one which is always running in profit due to its proper management and good policies. )ata that 0 ha&e presented is all from the secondary sources which are in the annual reports or other printed matters. * 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.
-onclu2ion
i.
ii.
iii.
The deposit of N*304 is in increasing trend. The share of fi'ed deposit is more than that of sa&ings current margin and other deposits in the deposit mi' of N*304. 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 e'penses on total deposits. The trend analysis shows that the deposit of N*304 is in increasing trend. 0n addition to this the bank is being able to satisfy its customers and in pro&iding higher uality and newer ser&ices to them.
i&.
&.
&i. &ii.
0nterest e'penses on deposit of N*304 during the year 2""" are also uite high but there has been a decreasing trend of interest e'penses till the year 2""!. Similarly the cost of deposit during the year 2""" is also uite high but there has been decreasing trend in the later year. So it helps to increase the efficiency to bank. 3y the analysis of deposit landing we can conclude that the bank is able to utiliEe its deposits a greater e'tent. Thus the bankKs performance is effecti&e in profitability and towards the customiEing. era and may attract more customers.
Recommendation2
i.
ii. iii. i&.
&. &i.
*lthough N*304 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 N*304 should introduce new schemes. 8ustomer ser&ices should be di&ersified and should further be accommodated. 0nterest rate on deposit should be competiti&e with other commercial banks. The bank should aim towards increasing its customers but it must also pro&ide the uality ser&ices to the present customers. 5or this the bank must make plans and policies keeping customers in mind. 3ank should also pay attention towards the priority sector and industrial sector for lending loans to de&elop the economic condition of the country. 3ank should pro&ide more facilities to the staff it has to pro&ide 6ob satisfaction training and should encourage its staff.
BIBLI,7RAP35
•
*grawal. >.R A,ro6ect 1anagement in NepalB 1.9 ,ublishors an )istributors 9athmandu.
•
3anking 0nformation and )ata *nnual Report of Nabil 3ank 4td.
•
3righam $ugene 5. A5undamental of 5inancial 1anagementB %olt
Rincht and ?inston: The )ryden ,ress ;##=. •
9han 1. . and ,.9. A5inancial 1anagement ,olicyB: New )elhi:
1c>raw %ill ,ublishing 8o. 4td. ;#7=. •
,oudel Ra6an 3 9eshar 6. 3aral Rishi R. >autam >yan 3. )ahal A5undamentals of
5inancial 1anagementB : 9athmandu *smita ,ublication 2"
Can %orn Hames 8.B5inancial 1anagement and ,olicyB: New )elhi
,rentice %all of 0ndia ,&t. 4td. ;#=<. •
Can %orn Hames 8.B5undamental of 5inancial 1anagementB: /.S.*.
,rentice %all 0nc. $ngle ?ood 8liff ;#=. •
/R4: www.nabilbank.com
•
/R4: www.nrb.org.np
