The Study On

Deposit Mobilization of

Nepal SBI Bank Limited

Submitted by:

Trishana Shahi

Resunga Multiple Campus

T.U. Regd. No :

A Project Work Report Submitted to:

Resunga Multiple Campus

In Partial Fulfillment of The Requirements For The Degree of

Bachelor of Business Studies (BBS)

Gulmi

Baisakh, 2076
 Proposal On Deposit Mobilization Of Nepal SBI Bank Ltd.

1.1 INTRODUCTION

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

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

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

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

1.2 Background of the study

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

NSBL was established in July 1993 and has emerged as one of the leading banks of Nepal, with
679 skilled and dedicated Nepalese employees working in 62 branches, 7 extension counters, 3
Regional Offices and Corporate Office. With presence in 32 districts in Nepal, the Bank is
providing value added services to its customers through its wide network of 85 ATMs, internet
banking, mobile wallet, SMS banking, IRCTC Ticket Online Booking facility, etc. NSBL is one
of the fastest growing Commercial Banks of Nepal with more than 6.22 lakhs satisfied deposit
customers and over 4.80 lakhs ATM/Debit cardholders. The Bank enjoys leading position in the
country in terms of penetration of technology products, viz. Mobile Banking, Internet Banking
and Card Services. The Bank is moving ahead in the Nepalese Banking Industry with significant
growth in Net Profit with very nominal NPA. As of 31 stAshad, 2075, the Bank has deposits of
Rs. 65.21 billion and advances (net) of Rs. 47.54 billion, besides investment portfolio of
Rs.19.29billion.

1.3 Statement of the problem

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

1.4 Objectives of the study

The objectives of the study are as follows.

1. To analyze the deposit trend of NSBI.

2. To analyze the yearly deposits of NSBI in different accounts during different fiscal year.
3. To present the yearly deposits of NSBI in graph and chart of different fiscal year.
4. To find out changing position of deposit collection along with the interest rates in last
years.
1.5 Review of Related Studies

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

1.6 Research Methods

Data collection is an essential part of fieldwork report. Collection of data is very important for
making the report clear and appropriate. Data should not be wrong because it makes the report
less reliable. Two types of data are used to prepare this report.

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

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

1.7 Data presentation and analysis tools

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

1. Tables and bar diagrams

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

1.8 Limitations of the study

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

This report will start and complete on as:

Time frame No. of days

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