MOBILIZATION OF DEPOSIT

SANIMA BANK LIMITED

A Project Work Report

By

Santosh Kumar Tajpuriya

Exam Roll No:68

T.U. Reg. No.:- 7-2-2069-0183-2016

Devi Campus

Submitted to

The Faculty of Management

Tribhuvan University

Kathmandu

In partial fulfillment of the requirements for the degree of bachelor of

Business of Studies (BBS) 4year

Devi Campus

Birtamod, Jhapa

JUN 2020
 TABLE OF CONTENTS

Page No.
Title Page ............................................................................................. i

Declaration .......................................................................................... ii

Supervisor’s Recommendation ..............................................................iii

Endorsement ............................................................................................iv

Abstract ................................................................................................... v

Acknowledgement ....................................................................................vi

Table of contents....................................................................................vii

List of Tables ........................................................................................viii

List of Figures..........................................................................................ix

Abbreviations .............................................................................................x

CHAPTER I: INTRODUCTION ...........................................................

1.1 Background ..................................................................................................
1.2 Problem Statement .......................................................................................
1.3 Objectives .....................................................................................................
1.4 Rational .........................................................................................................
1.5 Report Structure .........................................................................................
CHAPTER II: RELATED LITERATURE REVIEW .......................
2.1 Conceptual Review ......................................................................................
 2.2 Review of Previous Works ........................................................................
2.3 Research Gap ..............................................................................................
CHAPTER III: METHODS .................................................................
3.1 Research Design .......................................................................................
3.2 Population and Sample .............................................................................
3.3 Sources Of Data ............................................................................................
3.4 Method Of Data Collection.........................................................................
3.5 Techniques of Analysis..............................................................................

CHAPTER IV: RESULTS AND FINDINS .....................................

4.1 Analysis of Deposit Account ..................................................................
4.2 Analysis of CDTD and CDFD Ratio.......................................................
4.3 Analysis of CDSD and CDCD Ratio.....................................................
4.4 Major Findings...........................................................................................
CHAPTER V: DISCUSSION AND CONCLUSION ........................
5.1 Discussions ..............................................................................................
5.2 Conclusion and Implications...................................................................
REFERENCES ......................................................................................
APPENDICES

LIST OF TABLES

Table No. Page No.

4.1 Deposit Account

4.2 CDTD Ratio and CDFD Ratio

4.3 CDSD Ratio and CDCD Ratio

LIST OF FIGURES
Figure No. Page No.

4.2 Bar Diagram of CDTD Ratio and CDFD Ratio

4.3 Bar Diagram of CDSD Ratio and CDCD Ratio

LIST OF ABBREVIATION

ATM               Automated Teller Machine 

A.D.                 Anno Domi
HBL                       Himalayan Bank Limited
LC                                Letter of Credit
NRB                            Nepal Rastra Bank
No.                              Number       
U.S.                              United States
etc.                              Etcetera
i.e.                               For example
%                                  Percentage

CD : Current Deposit

CDCD : Current Deposit to Call Deposit

CDFD : Current Deposit to Fixed Deposit

CDSD : Current Deposit to Saving Deposit

CDTD : Current Deposit to Total Deposit

E.g. : Example

ESTD : Established
F/Y : Fiscal Year

FD : Fixed Deposit

Ltd : Limited

RBB : Rastriya Banitya Bank

SD : Saving Deposit

TD : Total Deposit

CHAPTER-I
INTRODUCTION

1.1 Background

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.

“Economic development demands transformation of saving or investible resources into the

actual investment. It is the financial institution that transfer funds from surplus spending units

to deficit units” (Nepal Rastra Bank,1996:43)

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), and 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.”

In the context of Nepal, like as in the other countries the goldsmith and landlords where the

ancient banker. The Nepalese people were highly exploited by ‘Sahu Mahajan’ by charging

higher interest rate, compound interest rate and even by manipulating the principal amount.

The introducing of ‘Tejarath Adda’ during the tenure of the Prime Minister Ranoddip Sing

(1993 B.S.) was the first step towards the institutional development of banking in Nepal. The

first commercial bank ‘Nepal Bank Limited’ was established on 30th Kartik 1994 B.S. and

started to perform proper banking activities. With the realization of central bank to develop

monetary policy as well as to have proper control over commercial banks and banking sectors

Nepal Rastra Bank was established on 14th Baishak 2017B.S. under Nepal Rastra Bank Act
2015 B.S. Likewise, Rastra Banijya Bank under the full ownership of government was

established on Magh 2022 as per ‘Rastra Banijya Bank Act 2015 B.S.’. The growths of the

banks accelerated only after the adoption of liberal economic policy by Nepalese Government

.This has attracted many new investors and encourage opening many new modern banks with

joint venture of foreign banks. Nepal Arab Bank was established on 29th Ashad 2041 B.S. as

the first modern bank with the joint venture of Dubai Bank Ltd. U.A.E. subsequently

following its established Nepal Indo Suez Bank France, Nepal Grin lands Bank England on

16th Marg 2043B.S. with its joint venture of Grin lands Bank England, Himalayan Bank Ltd

on 5th Marg 2049B.S. with the joint venture of Habib Bank of Pakistan, Nepal SBI Bank Ltd.

In 28th Ashad 2050 B.S. with joint venture of State Bank of India Nepal Bangladesh Bank

Ltd. on 28th Jestha, 2050B.s. with the joint venture of International Finance Investment and

Commercial Bank, Everest Bank Ltd. on 1st Kartik 2051B.S. with joint venture of Punjab

National Bank Ltd of Kathmandu on 28th Falgun 2051B.S. with joint venture of the Siam

Commercial Bank, Thailand.

Since, the financial sector in Nepal is small, it is growing fast. At present banking system
comprises of NRB, 27 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.

1.1.1 profile of Organization

A commercial bank is a financial institution which collects deposit from many persons and

institutions and provides credit or loan facility to different industrial and commercial

business. Commercial banking business consists of changing cash into hank deposit and bank

deposit into cash, transferring bank deposit form one person or institution to other, giving

bank deposit in exchange for cheques, bills of exchange, government securities etc.
Sanima Bank Limited is commercial bank in Nepal. Commercial banks perform various

functions. Among them, accepting various types of deposit is the main function of

commercial banks. Commercial banks are directly related with the people and institution. The

commercial bank is an important bank. Its function is very attractive for people. Although

these banks are truly inspired with the objective of gaining profit, these commercial banks are

also established to accelerate common people’s economic welfare and facility to make

available loan to the agriculture, industry, and commerce and to provide the banking

services to the public and the state. In Nepal the commercial bank perform the following

functions. Of the many function of the commercial bank acceptance of deposits is one of

them. The bank allows for opening the three types of accounts to accept deposit for their

customers. They are current, saving and fixed deposit account. People can collect their money

in one of the three as their need. But the interest is given to the saving and fixed account. The

commercial bank performs the important function of accepting all sorts of deposits. It earns

profit by investing that money in another place.

Another function of the commercial bank is to provide loan. A commercial bank provide loan

to a person, company and institution etc. A bank can earn a lot of profit from it. A bank is

capable of gain benefit in its banking development by receiving the interest as pre law and its

internal policies. It provides the loan by accepting the security of debtor. A bank flow the

loan against a third person guarantee or with the pledge of the third person. A bank provides

the loan on basis of agreement or deed of loan. It provides loan on basis of the following deed

securities:

▪ With the pledge of goods, .and pledge of gold and silver.

▪ With the security of immovable property.

▪ With the security of other similar goods.

 Sanima, promoted by prominent and dynamic Non-Resident Nepalese (NRNs)
Businessmen, commenced its operatic in 2004 as a National Level Development Bank.
Since February 2012, Sanima has been functioning as “A” Class Commercial Bank
with its registered office at ‘Alakapuri’, Naxal, Kathmandu. Sanima Bank is committed
to provide one window financial solutions to the different customer segments and to
achieve healthy growth in profitability consistent with bank’s risk appetite. The bank
has been dedicated to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. As a result, Sanima is
perceived as a Strong and Reliable player in the in the banking industry. Sanima has
been committed to meet customer expectations in all areas of its business through
continuous improvement for overall benefit of the economy. Sanima Bank offers a
wide range of banking products and financial services to corporate and retail
customers through 43 full-pledged branches from Mechi to Mahakali.

Deposits are the funds, the customers collect in the bank for the purpose of softy and interest
income for which the bank gives or takes interest in accordance with its nature. Purposes the
bank requires adequate funds. Deposits plays vital role in the development and prosperity of
any commercial banks. Thus, the bank's policy governing deposits must be appropriate which
can accelerate the growth of a bank. The policy differs whether the bank is serving in a
selective clientele or in mass clientele. However, the bank should attract new depositors and
sustain the decline in periods of recession. Thus the bank have to apply various corrective
actions are attracting more deposits as per the need and capacity of bank to mobilize them.
Deposits are the main sources of main capital to issue loan. Deposits are of different nature
and types. They can be classified in accordance with different basis. They are:

According to the duration of Time

 Time deposit
 According to the Interest
 Interest Bearing
 Current
 Saving

Noninterest bearing
  According to the Ownership
 Public Deposit
 Private Deposit
 Inter-Bank Deposit
 Saving Deposit

Saving deposit is one where deposit is collected by the bank usually from small depositors
and depositors having low income level. Usually the people working low middle level
earning occupation, farmers, small retailers etc. Deposit their income in saving deposit little
and little money from time to time they can also withdraw beyond the prescribed amount by
bank any time they using cheques and ATM. However, the bank usually pays small interest
to the saving depositors against their deposit in accordance with the prescribed rate of
interest.

However, the bank should attract new depositors and sustain the decline in periods of
recession. Thus the bank have to apply various corrective actions are attracting more deposits
as per the need and capacity of bank to mobilize them. Usually saving accounts have low
transaction; saving accounts have not given overdraft facility. Usually saving accounts need
minimum balance in the bank to keep account active

1.2Significance of study

This report will be useful to know overall picture of Sanima Bank Ltd. However, it is mainly
concentrated in ' deposit' of Sanima Bank Ltd. So anyone who wants information regarding
the condition and trend of ' deposit' of Sanima Bank Ltd they will be facilitated from this
research to obtain the valuable information. The procedure of opening saving account will be
helped by this field report. Also the student in coming years will as a reference.

1.3 Statement of the Problem

Deposits occupy portion of bank’s total sources of funds. Therefore, the efficiency of a
bank depends on its ability to attract depositors. The capacity of the banks to earn
profit depends on the volume of deposits and deposit mix they have.

Following are the major problems that have been identified for the purpose of this
study:

What is Deposit Account of Sanima Bank Ltd over the last five years?

What is Current Deposit to Total Deposit Ratio and Current Deposit to Fixed Deposit
Ratio of Sanima Bank Ltd?

What is Current Deposit to Saving Deposit Ratio and Current Deposit to Call Deposit
Ratio of Sanima Bank Ltd?

1.4 Objective of study

The main objective of this research is to analyze current account of commercial

bank in Nepal. Following are the objectives of this study:

To analyze the Deposit Account of Sanima Bank Ltd over the last five
years(2013/2018). .

To analyze Current Deposit to Total Deposit Ratio and Current Deposit to Fixed
Deposit Ratio of Sanima Bank Ltd.

To analyze the Current Deposit to Saving Deposit Ratio and Current Deposit to Call
Deposit Ratio of Sanima Bank Ltd.

1.5 Limitation of the study

The following are the limitation of this research work

i. The study will be based on three fiscal years 2013 to 2018.

ii. The study will be more specific in current saving account.

 iii. The data are taken from secondary sources.

iv. Analysis is concentrated in commercial bank of Nepal.

v. The comprehensibility and the accuracy of the study are based on the data

avail from the website:-https://en.wikipedia.org/wiki/deposit_account.

1.6 Report Structure

The Research will be divided into the following Chapters:

Chapter - I: Introduction

The first chapter deals and includes the background of the study, brief profile of the sample
banks, statement of the problem, objectives of the study, significance of the study, limitations
of the study, and organizations of the study.

Chapter- II: Related literature review

Is review of literature it includes the fundamental concept, various dimensions of

deposit account. This chapter will be divided into two parts, first being theoretical

framework and second will be review of the previous studies.

Chapter III: Research methodology

Dealt with research methodology consisting of introduction, research design, nature

and sources of data, data gathering procedure, tools and techniques of data analysis

and limitations of the study.

Chapter IV: Result and finding

It’s the main part of the study. It dealt with presentation and analysis of data collected

from different sources. The collected data will be analyzed to reach closer to the

actual result by using various necessary financial tools.

Chapter V: Discussions and conclusion Will be provided the summary, conclusion and

recommendation of overall study. At the end an extensive references and appendixes

will be also included.

CHAPTER-II
RELATED LITERATURE REVIEW

This chapter deals with review of literature. Review of literature means receiving research

studies or other relevant propositions inn the related area of the study so that all the

past studies their conclusion and deficiencies may be known and further research can

be conducted.

2.1 Conceptual Review

Deposit is the main part of every financial institution and banks. Without deposit collection

loan could not be flowed. There are many deposits which can be study in this report.

The mainly four deposits are included in this report which are as follows:

2.1.1 Saving deposit:- As these type of deposit are mainly used by middle class

farmers, officials, teachers, and small businessman who have low income sources.

This deposit is for saving purpose. It stand midway between current and fixed accounts

restrictions on the depositors regarding the number of withdrawals and the amount to

be depositors in a given period. Check facility is provided to the depositors. Rate of

interest paid on these deposits is low as compared to that of fixed deposits. These

deposits encourage the habit of thrift amongst people. Saving accounts are offered by

commercial banks and financial institution.

2.1.2 Fixed deposit:- A fixed deposit is a deposit at a banking institution that cannot:

be withdrawn for a certain “term” or period of time. When the term is over it can be

withdrawn or it can be held for another term. The longer the term the better the

yield on the deposit. No transactions are allowed to be performed by customer

against the deposit as is permitted in the demand deposit. In a fixed deposit, a

customer is required to keep a fixed amount of money with the bank for a specific

period of time. Depositor is not allowed to withdraw the amount before the expiry of

the period for which it is deposited. Comparatively higher interest is paid on them. Thus

fixed deposits are time liabilities of the banks.

2.1.3 Current deposit:- It is also known as demand deposit. These deposits are

generally maintained by the traders and businessman who have to make a number of

payments every day. This deposits are withdraw able by the depositors any time by

means of checks. Usually, no interest is paid on them. Depositors sometimes may have

to pay certain charges to the bank for the services rendered by it. Any amount of

money may be deposited in this account. There are no restriction regarding the number

of withdrawals or the amount of deposits.

2.1.4 Call deposit:- It is also known as hybrid deposit, is a combination of current

and fixed deposit invented for meeting customers financial needs in a flexible manner.

Increasing competition and computerization of banking has facilitated to introduce this

deposit product. This deposit mainly serves the need of appropriate assets liability

management of the banks and financial institution. Generally the practice of inter-bank

borrowing and lending activities are conducted through this product. This kind of

account is generally opened by bank and financial institutions, firms and companies.

Bank pays certain rate of interest to these depositors.

2.1.5 CDTD Ratio and CDFD Ratio:- They are the ratio which shows that what

percent of current deposit is of total deposit and fixed deposit. CDTD Ratio is

presents the relationship between current deposit and total deposit. Likewise CDFD

Ratio presents the relationship between current deposit to fixed deposit.

2.1.6 CDSD Ratio and CDCD Ratio:- Both ratios are related with current deposit. It

means that what percent of current deposit is of saving deposit and call deposit

.CDSD Ratio presents the relationship between current deposit to saving deposit and

CDCD Ratio shows the relationship between current deposit to call deposit.

Bank is an institution which deals in money and credit. Banks are the institution which acts

as an intermediary between different kinds of people and institutions who are in need of

money and who can supply money at certain rate of interest. A bank simply carries out the

work of exchanging money, providing loan, accepting deposits and transferring the money.

several studies had been carried out regarding the funds allocation and deposit mobilization

which depicts that the commercial banks mobilizes its deposit on various sectors by making

investment, providing loans advances and purchase of assets[ CITATION Pau10 \l 2057 ].

Commercial banks are those which collect the immobilized capital from public, organizations

etc as deposits and invest these capitals in different sectors like business, industries, and

services etc, which fulfill the demands of capital in these sectors. Banks invests its fund in
different banking activities and different fields. Many types of fields are shown in market for

investment (Smith, 1993)

A bank’s most important role may be matching up creditors and borrowers, but banks are also

essential to the domestic and international payments system and they create money. Not only

do Individuals, businesses, and governments need somewhere to deposit and borrow money;

they need to move funds around- for example, from buyers to sellers or employers to

employees or taxpayers to governments. Here too a bank plays a central role. They process

payments, from the tiniest of personal checks to large-value electronic payments between

banks. The payment system is a complex network of local, national and international banks

and often involves government central banks and private clearing facilities that match up

what banks owe each other. In many cases payments are processed nearly instantaneously.

The payments system also includes credit and debit cards. A well-operating payments system

is a prerequisite for an efficiently performing economy, and breakdowns in the payment

system are likely to disrupt trade- and therefore, economic growth- significantly [ CITATION

Bha10 \l 2057 ]

.Review of Articles/Journals

In this section effort has been made to examine and review of some related articles in

different economic journals. World Bank discussion papers, magazine, newspaper and other

related books.

[ CITATION Kaf90 \l 2057 ] .states that, consideration and liberalization of interest rate reform

measure are initiated with a view to provide more option to commercial banks in the

mobilization of savings and portfolio management through market determined interest and

lending rates.

Review of Related Unpublished Thesis

Under this segment, it has tried to find out the major conclusion and recommendations of the

previous study made by the T.U. student. The unpublished thesis which is found relevant to

the study is as follows: -

[ CITATION Kar04 \l 2057 ] concluded that commercial banks play a crucial role in accelerating

growth of a country. The bank mobilizes the savings 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 savings 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 seven years data from 1970 A.D. to 1977 A.D. using Karl’s

Pearson’s formula, percentage and ratio to meet the objective; the writer has analyzed how

far the bank is able to utilize the collected deposits.

2.2 Review of Previous Works

Mrs. Radhika Dhungana[ CITATION Rad16 \l 1033 ] had conducted research on the “Deposit

and Current position of Nepal Bank Limited” on 2016 an unpublished bachelor level

project report submitted to Damak Multiple Campus, Faculty of Management T.U.

Researcher main objective was to identify current account and opening procedure of

current account. Researcher used both financial and statistical tools to conduct such

research. She used data only for last three years. Historical and ex-post facto research design

was used by researcher.

[ CITATION MrB16 \l 1033 ]Mr. Bishal Bhattarai had conducted research on the “Deposit

Policy and Current Position of Nepal Bank Limited” on 2016 an unpublished bachelor

level project report submitted to Mechi Multiple Campus, Faculty of Management

T.U. Researcher analyzed the impact of interest rate in deposit mobilization and
utilization and analyzed the current fixed and saving deposit position. Researcher also

used three year data to conduct research work.

[ CITATION MrD72 \l 1033 ] Mr. Shishir Dhakal had done research on “Deposit

Mobilization and Utilization of RBB” The focus of the study is to study the trend of

total deposit and deposit mobilization and its utilization. Researcher had followed

descriptive, analytical and ex-post facto approach of research design. It is an

unpublished bachelor level project report submitted to Kankai Multiple Campus,

Faculty of Management T.U.

[ CITATION Mrs72 \l 1033 ] Mrs. Genisha Sangraula had done research on “Deposit and

current position of Kanchanjunga Multipurpose Cooperative Damak” The focus of the

study is to study the impact of interest rate in deposit mobilization and utilization

and saving and fixed deposit position of Kanchanjunga Multipurpose Cooperative,

Damak.

.2.3 Research Gap

Through few affiliated researchers have been done in this area but these have been

very few exclusive researcher on this subject. This study may be a new study in this

Bank and in study has been made on Deposit Analysis of Nepal Bank Limited.

Previous researcher use primary data collection. Present context, these are the significant

issue in Nepalese bank sector. Thus to fill up this gap the current researcher in

conducted. This researcher is based on the secondary data. It examines the current data and

figure. This study is trying to do something new on the topic not yet studies.

Previous researchers had analyzed Deposit and Current Position, Deposit Policy and

Current Policy, Deposit Mobilization and Utilization. They had not analyzed Deposit

Account of Nepal Bank Limited. Therefore the researcher try to analyzed ratio related

to various deposit such as Current Deposit, Fixed Deposit, Saving Deposit and Call
Deposit. Previous researcher used both financial and statistical tools to analyzed the

CDTD, CDFD, CDSD and CDCD ratio but now researcher used financial tools only.

Previous researcher used data from fiscal year 2012/014 to 2016/017 but now

researcher included data up to fiscal 2017/018.

CHAPTER-III
RESEARCH METHODOLOGY

3.1 Research design

Research design is master plan specifying the method and procedures for collecting and

procedures for collecting and analyzing the needed information. This serves as a framework

for the study, guiding the collection and analysis of data, the research instruments to be

utilized, and the sampling plan to be followed. The design of the study type and sub type

research questions, hypothesis, independent and dependent variables, the plan for collecting

and utilizing data so that desire information can be obtained. The description and analytical

procedures will be used an research design.

3.2 Population and Sample

The population refers to the industries of the same nature and its services and production in

general Thus, the total Commercial Banks constitutes the population of the data and the bank

under study constitutes the sample for the study. So, form the population of 27 commercial

Banks operating in Nepal. Sanima Bank Limited has been selected as the sample for the study

3.4 Sources of Data

 For investigation propose the data are necessary requirement. Generally data can be

obtained by the two sources it primary sources and secondary sources. The researcher

would select secondary data collection sources:

Primary Data: This type of data are obtained by study especially designed to fulfill

the data needs. Primary data can obtain by applying the direct personal interviews,

indirect interviews, information from correspondence, mailed questionnaire method etc.

Secondary Data: Particularly the study will base on the data available from Sanima

Bank Ltd. Such a concentration for the bank only is simply because of easy access

upon their reliable data. The study will be based on secondary provided by bank and

other relevant sources. The data will be collected from the balance sheet, profit and

loss account, Nepal Rastra Bank and informal enquires from the bank’s personnel.

NRB reports and bulletins.

 Various articles published in the News Papers.

 Periodic returns submitted by the bank’s Head office to NRB.
 The NEPSE reports etc.

3.4Method of data collection

Data are considered as an internal part of research. In order to make the study more

reliable and coherent secondary sources have been applied here while collecting

data, facts and statistics. In this study secondary data are collected from different

sources i.e. annual report of respective bank, some related information taken from

economic survey and from internet websites.

3.5 Analytical Tools

All the collected data are tabulated and presented in the figures. For this purpose, the

researcher has applied financial tools.

3.5.1 Financial Tools:- Financial analysis tools are one of the most efficient ways that

can be used for ensuring good profit from your investments. These financial tools are

highly helpful in evaluating the market and investing in a way so as to maximize the

profit from the investments made. This financial tools useful for deciphering both

internal and external information related to a specific business organization.

Following are the financial analysis tools to analysis deposit account of Nepal Bank

Ltd:

i. Current Deposit to Total Deposit Ratio

This ratio shows the relationship between total deposit and current deposit. It shows

that what percentage of current deposit is of total deposit. It is calculated as follows.

Current Deposit
Current Deposit=
Total Deposit

i. Current Deposit to Fixed Deposit Ratio

This ratio shows the relationship between current deposit and fixed deposit. It shows

that what percentage of current deposit is of fixed deposit. It is calculated as

follows.

Current Deposit
CDFD Ratio=
¿ Deposit

ii. Current Deposit to Saving Deposit Ratio

This ratio shows the relationship between current deposit to saving deposit. It shows

that what percentage of current deposit is of saving deposit. It is calculated as

follows.
 Current Deposit
CDSD Ratio=
Saving Deposit

iii. Current Deposit to Call Deposit Ratio

This ratio shows the relationship between current deposits to call deposit. It shows

that what percentage current deposit is of call deposit. It is calculated as follows.

Current Deposit
CDCD Ratio=
Call Deposit

CHAPTER-IV
RESULTS AND FINDING

This chapter deals with presentation of data, analyzing of data and findings of this

calculated data. This data are collected from an annual report of Sanima Bank

Limited and calculated by using different formula of deposit related ratio analysis

variables.

4.1 Analysis of Deposit Account of Sanima Bank

Deposit occupy a significant portion of bank’s total sources of funds. Therefore, the

efficiency of a bank depends on its ability to attract depositors. The capacity of the

banks to earn profit depends on the volume of deposits and the deposit max the

have. In Nepal, banks offer different type of deposits account to their customers.

These deposits can vary from one bank to other. Principally these can be categorized as;
  Current Deposit

 Saving Deposit

 Fixed Deposit

 Call Deposit

Deposit Account Sanima Bank Ltd.

Table-4.1

TYPE 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018

Current Deposit 3.3395 % 3.60545 % 2.9685 % 5.4971 % 5.3072 %

Fixed Deposit 48.8848 % 66.7583 % 38.3520 % 36.7237 % 41.0347 %

Saving Deposit 31.86 % 3.1144 % 32.5291 % 34.5325 % 27.3901 %

Call Deposit 15.91 % 26.5219 % 26.1504 % 23.2467 % 26.2680 %

Total Deposit 100 % 100 % 100 % 100 % 100 %

Source: Appendices I

In the year 2013/2014 the CD was 3.3395 % which was increased and reached at

3.60545 % in year 2014/2015. After the fiscal year 2014/2015 the CD was decreased

and falls to 2.9685 % and then increased at 5.4971 % and decreased at 5.3072 % in

the fiscal year 2016/2017 and 2017/2018. It means increasing and decreasing condition.

FD was 48.8848 % and 66.7583% in the year 2013/2014 and 2014/2015. After that the FD

was decreased at 38.3520 % in year 2013/2014 and 36.7237 % in year 2016/2017 and

FD was increased in fiscal year 2017/2018 at 41.0347 %.

In fiscal year 2013 the SD was 31.86 % which was highly decreased and fall to

3.1144 %. After the fiscal year 2014/2015 SD was increased at 32.5291 % and 34.5325

% in the fiscal year 2015/2016 and 2016/2017. In fiscal year 2017/2018 SD was

decreased and fall to 27.3901%

CD in fiscal year 2013/2014 was 15.91 % and 26.5219 % in fiscal year 2014/2015. After

fiscal year 2014/2015 the CD was decreased in 26.1504%, 23.2467 %, and 26.2680 %

in fiscal year 2015/2016, 2016/2017 and 2017/2018 respectively.

4.2 Analysis of CDTD Ratio and CDFD Ratio

CDTD Ratio shows the relationship between total deposit and current deposit. It

shows that what percentage of current deposit is of total deposit. It is calculated as

follows.

Current Deposit
CDTD Ratio=
Total Deposit

CDFD Ratio shows the relationship between current deposit and fixed deposit. It

shows that what percentage of current deposit is of fixed deposit. It is calculated as

follows.

Current Deposit
CDFD Ratio=
¿ Deposit

CDTD Ratio and CDFD Ratio

Table- 4.2
Fiscal Year CDTD Ratio CDFD Ratio
2013/2014 0.0334 0.0683
2014/2015 0.0361 0.0540
2015/2016 0.0297 0.0774
2016/2017 0.0550 0.0132
2017/2018 0.0531 0.1293

Source: Appendices II and III

In the year 2013/2014 the ratio was 3.34 % in the year 2014/2015 the ratio was

increased and reached at 3.615 % but in the year 2013/2014 it is decreased and falls

at 2.97 %. In the year 2015/2016 the ratio was 5.50 % and after that the ratio was

decreased and falls to at 5.31% in the year 2017/2018. Total analysis shows that the

CDTD ratio is fluctuating. In means increasing decreasing condition. The above given data

shows that the CDFsD ratio was 6.83 % in the year 2013/2014. It decreased in the

year 2014/2015 to 5.40 % but in the year 2015/2016 it increased to 7.74 %. In year

2016/2017 CDFD ratio was highly decreased and falls at 1.32 % and year 2016/2017

was highly increased and reached at 12.93 %. It is a fluctuate signal.

Bar Diagram of CDTD Ratio and CDFD Ratio

Figure-4.2
 14.00%

12.00%

10.00%

8.00%
CDTD Ratio
6.00% CDFD Ratio

4.00%

2.00%

0.00%
2013/014 2014/015 2015/016 2016/017 2017/018

Source: Appendices II and III

After observing diagram we get conclusion that 3.34 % of CDTD Ratio is covered by

F/Y 2013/014, 3.61% covered by F/Y 2014/015, 2.97% covered by F/Y 2015/016,

5.50% covered by F/Y 2016/017 and 5.31% covered by F/Y 2017/018. The highest

CDTD Ratio is 5.50% in F/Y2016/017 and the lowest CDTD Ratio is2.97% . Similarly

we get conclusion that 6.845 % of CDFD Ratio is covered by F/Y 2013/014, 5.40%

covered by F/Y 2014/015, 7.74% covered by F/Y 2015/016, 1.32% covered by F/Y

2016/017 and 12.97% covered by F/Y 2017/018. The highest CDTD Ratio is 12.97%

in F/Y2017/018 and the lowest CDFD Ratio is 1.32% in F/Y 2016/017.

4.3Analysis of CDSD Ratio and CDCD Ratio

CDSD Ratio shows the relationship between current deposit to saving deposit. It
shows that what percentage of current deposit is of saving deposit. It is calculated as
follows.

Current Deposit
CDSD Ratio=
Saving Deposit
CDCD Ratio shows the relationship between current deposits to call deposit. It shows

that what percentage current deposit is of call deposit. It is calculated as follows.

Current Deposit
CDCD Ratio=
Call Deposit

CDSD Ratio and CDCD Ratio

 Table-4.3
Fiscal year CDSD Ratio CDCD ratio
2013/2014 0.1048 0.2099
2014/2015 1.1576 0.1359
2015/2016 0.0913 0.1135
2016/2017 0.1592 0.2365
2017/2018 0.1938 0.2020

Source: Appendices IV and V

In the year 2013/2014 the ratio of CDSD was 10.48 % but in the year

2014/2015 it was increased at 115.76 % and decreased at 9.13 % in the year

2015/2016 and then increased at 15.92 % as well as in the year 2016/2017 it is

further increased and reached at 19.38 %.

In the year 2013/2014 the ratio of CDCD WAS 20.99 % but in the year 2014/2015 it

was decreased at 13.59 % as well as 11.35 % in the year 2015/2016 but in the year

2016/2017 the ratio is increased 23.65 % and then finally decreased in 2017/2018 at

20.20 %.

Bar diagram of CDSD Ratio and CDCD Ratio

Figure-4.3
 120.00%

100.00%

80.00%
CDSD Ratio
60.00% CDCD Ratio

40.00%

20.00%

0.00%
2013/014 2014/015 2015/016 2016/017 2017/018

Sources: Appendices IV and V

After observing diagram we get conclusion that 10.485% of CDSD Ratio is covered

by F/Y 2013/014, 115.76% covered by F/Y 2014/015, 9.13% covered by F/Y

20135/016, 15.92% covered by F/Y 2016/017 and 19.38% covered by F/Y 2017/018.

The highest CDSD Ratio is 115.76% in F/Y2014/015 and the lowest CDSD Ratio is

9.13 in F/Y 2015/016 . Similarly we get conclusion that 20.99% of CDCD Ratio is

covered by F/Y 2013/014, 13.59% covered by F/Y 2014/015, 11.35% covered by F/Y

2015/016, 23.65% covered by F/Y 2016/017 and 20.20% covered by F/Y 2017/018.

The highest CDTD Ratio is 23.65% in F/Y 2017/018 and the lowest CDFD Ratio is

11.35% in F/Y 2015/016

4.4Major Finding

i. In year 2013/014 , 2014/015, 2015/016, 2016/017 and 2017/018 the bank

CDTD ratio was 3.33%, 3.61%, 2.97%, 5.50% and 5.31% respectively. Only

in year 2015/016 the bank CDTD ratio was decreased and then increasing
 position. The bank CDTD ratio shows the bank’s ability is increases to

attract the people.

ii. In year 2013/014 , 2014/015, 2015/016, 2016/017 and 2017/018 the bank

CDFD ratio was 6.83%, 5.40%, 7.74%, 1.32% and 12.93% respectively. This

shows the bank CDFD ratio was decreased in year 2014/015 and

2016/017. This CDFD ratio position is not good for this bank but the bank

try to increase the fixed deposit category.

iii. In year 2013/014 , 2014/015, 2015/016, 2016/017 and 2017/018 the bank

CDSD ratio was 10.48%, 115.76%, 9.13%, 15.92% and 19.38%

respectively. This position shows that the bank CDSD ratio was highly

increased in year 2014/015 and highly decreased in year 2015/016. This

condition shows that the bank was gone to developed the all-around in

world.

iv. In year 2013/014 , 2014/015, 2015/016 2016/017 and 2017/018 the bank

CDCD ratio was 20.99%, 13.59%, 11.35%, 23.65% and 20.20%

respectively. This condition shows that the bank was gone to developed the

all around in world.

CHAPTER-V
DISCUSSION AND CONCLUSION
 5.1 Discussions

Current Deposit to Total Deposit Ratio increasing over the last five years period of

Sanima Bank. Increasing bank CDTD ratio shows that the bank’s ability is increased

to attract the people. Table-2 shows that the bank CDTD ratio was increasing position

in year 2013/014 and 2014/015 i.e. 3.33% and 3.61% and then year 2015/016 the

bank CDTD ratio was decreased at 2.97% and thereafter the bank CDTD ratio was

increased at 5.50% and 5.31%. When the bank CDTD ratio increased this means that

the bank position is good. If the bank CDTD ratio was decreased it affect the

banking position in the market. In this position the bank CDTD ratio is good for the

bank. But CDFD ratio of the bank is not good which presents the table-3 .Bank

CDFD ratio was increasing in small portion in year 2014/015 period compared to year

2013/014 but decreased at 2.97% in year 2015/016. After the year 2015/16 the bank

CDFD was increased at 5.50% and 5.31% which show that CDFD ratio is increased

at small portion compared to 2016/2017. If the bank is try to increase the fixed

deposit the bank CDFD ratio was increased and helps to maintain the bank position

in the market. If the bank cannot success to increased its fixed deposit it affect the

bank CDFD ratio and affect the bank current position. Table- 4 show the bank CDSD

ratio i.e. 10.48%, 115.76%, 9.13%, 15.92% and 19.38%.This bank CDSD ratio is fluctuating.

It means highly increased and decreased. In year 2014/015 the bank CDSD ratio was

highly increased compared to other period CDSD ratio. This ratio shows that the bank

gone to developed the all-around in world. Table-5 shows the bank CDCD ratio. The

CDSD ratio of the bank was 20.99%, 13.59%, 11.35% 23.65% and 20.20%. This

position of ratio is not good for the bank because the bank CDCD ratio was

decreasing in 2nd and 3rd position and then increased and at last the bank CDCD ratio

was decreased. It means the bank growing CDCD ratio is not equally increased or
decreased. CDCD ratio shows that the bank was gone to developed all around in

world.

5.2 Conclusion and implications

CDTD Ratio increasing over the last five year 2013/014 to 2017/018. CDFD Ratio is

fluctuated over the last five year period. CDFD Ratio increasing and decreasing

condition. The current deposit in 2017/2018 increased by Rs.587,218,346. Similarly the

total deposit increased by Rs. 12377990056 as compared to previous year. CDSD Ratio

and CDCD Ratio are highly increasing and decreasing condition over the last five

year period. This shows that the performance of bank is positive in total deposit. The

total capital of Sanima Bank is found to Rs. 4,710,596,500 and Paid up capital is

found to be Rs. 3,060,288,000. Sanima Bank has opened up various branches in all

major cities of the country and it has been successful in its branch expansion

program. All the branches have been located in proper location and have provided its

customers with various services. It has well trained staff. Sanima bank has contributed a

lot for the national development of the country by providing loans own export and

import to fulfill the increasing needs of trade, industry and commerce. It also given

credit facility at low rate of interest to trade, industrialist, businessman and

agriculturist.

Sanima Bank Limited is committed to its best service for the satisfaction of its

customer but it is said nobody is perfect in the world so considering this saying we

can say that no bank perform and operates successful as through there may be some

weak point of Sanima Bank Limited too . The following implications have been made

to improve the statement if Analysis of Deposit Account of Sanima Bank Limited:

 i. The Sanima Bank should try to open more branches in inner tarai and

other regions where there are no branches. There should be equality in

branches expansion. The activities of Sanima Bank should related to

poverty elimination or production oriented in the countryside. The bank

should work for the development of the nation and income generation.

ii. The Sanima Bank should try to provide training facilities to its staff. It

should discourage to open a/c to those individuals having black money or

earning from unauthorized sources.

iii. Sanima Bank should introduce and implement new schemes and program

effectively in order to maximize profit.

iv. Sanima Bank should determine its cash holding structure to its operational

needs.

v. Information is most effective tools for better communication in 21 th century.

Sanima Bank should utilize information technology.

Finally this report is helpful to the other researcher to gain knowledge about the

Sanima Bank’s CDTD Ratio, CDFD Ratio, CDSD Ratio and CDCD Ratio. It also

help researcher to develop his/her skills in research, survey and report writing. This

study provides sufficient information to the other researcher about the Sanima Bank

Deposit related rations.

REFERENCES

Annual Report of Sanima Bank Limited, 2013 to 2017.

Investopedia.com (2016). Sharper insight. Smarter investing. In . Retrieved from

http://www.investopedia.com/

Bhandari, S. (2010, 12 08). Retrieved 06 25, 2013, from bhandarisantos. Retrieved from
http://bhandarisantos.blogspot.com/

Bishal, M. B. (2016). Deposit Policy and Current Position. Bhadrapur.

Dangol, R. (2060). Accounting for Financial Analysis, Planning and Markets. kathmandu: Dangol, R.M.
(2060). Accounting for Financial Analysis and Planning. Asmita Books Publishers and
Distributors.

Genisha, M. S. (B.S. 2072). Deposit and Current position . Damak: Kanchanjunga Multipurpose
Cooperative Damak.

Kafle, B. (1990). Monetary and financial reports in Nepal.

Karmacharya, G. (2004). A Study on Deposit Mobilization by the NBL.

Koirala, P. (2014). Essential of Commerical Bank Management. kathmandu: Ekta books.

Paudel, N. (2010). Nepalese financial system & investment environment. Kathmandu,nepal: Ratna
Pustak Bhandar.

Radhika, M. D. (2016). Mobilization of depost. Damak.

Sanima, B. ( 2016, August 10). Sanima Bank | Nepal. Retrieved . Retrieved from
https://www.sanimbankltd.com.np.

Sapkota, C. R. (2016). Commerical bank management. Kathmandu: Samjhana Publication Pvt.

Shisir, M. D. (B.S. 2072). Deposit and Utilization . surunga,jhapa.