DEPOSIT ANALYSIS OF NABIL BANK LIMITED

A Project Work Proposal

Submitted By:
[Name of Student]
[T.U. Reg. No]

Submitted To:
Department of Management
Mahendra Ratna Multiple Campus

In Partial Fulfilment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)
Ilam
January, 2024

Table of Contents
1.1 Background of Study 1
1.1.1Brief Introduction of Nabil Bank Limited 1
1.2. Statement of Problem 1
1.3 Theoretical framework 2
1.4 Objectives of the Study 2
1.5 Significance of the Study 2
1.6 Research Methodology 3
1.6.1 Research Design 3
 1.6.2 Population and Sampling 3
1.6.3 Types of Data 3
1.6.4 Data Collection Procedure 3
1.6.5 Instruments 3
1.6.6 Techniques of Analysis 4
1.7 Limitations of the study 4
1.8 Organization of the study 4
REFERENCES 6

1.1 Background of Study

Bank in simple term is an institution in which individuals and firm deposit their money when
they have surplus and withdraw or take loan when they need it. In another words, bank is a
financial institution that accepts deposits, supplies credits, deals in foreign currency, and carries
out off-balance sheet activities as well as general utility function.
According to Sayers " A bank is and institution whose whole debts are widely accepted in
settlement of other people debt."
According to Nepalese Bank and Financial Institution Act " Bank means a corporate body
incorporate to carry on financial transaction as referred to in sub-section (1) of section 49."
The conclusion that we can draw from these definitions is that the core function of a bank is to
accept deposits and supply credits and thereby make profit.
Deposit is one of the most important functions of the commercial bank and the composition of
deposit and investment directly affects the performance and profitability of the bank. There is
intense competition in banking business with limited market and less investment opportunities
available.

1.1.1Brief Introduction of Nabil Bank Limited

Nabil Bank Limited was established in 1984 AD, it has carved a cornerstone in the development
of the financial services industry in Nepal. Nabil Bank operates through its wide network of
266 branch offices, 313 ATMs, numerous POS terminals, remittance agents and sub-agents
20,000 plus spread across the nation. The Bank also has over 200+ international correspondent
banking relationships. (www.nabilbank.com) The Bank operates its investment banking arm
through its subsidiary Nabil Investment Banking Ltd. Nabil Bank believes that the Bank has
always stayed true to its three strong pillars: Service Excellence, Technology, and Product
innovation. This has led to the start of customer-centric banking culture with the development of
innovative services and products, enriching customers' livelihoods and setting benchmarks in the
Domestic Banking Sector.
1.2. Statement of Problem
The statement of problem of this bank is:
 1. What is the deposit position of Nabil Bank Limited?
2. What is the relationship between deposit collection and lending of Nabil Bank Limited?
3. What is the trend of deposit and lending of Nabil Bank Limited?

1.3 Theoretical framework

The aim of this study is to provide systematic and empirical analysis of the Deposit position of
Nabil Bank Limited. The following conceptual Framework is adopted for the study.
One can understand the deposit position of the bank with the help of current deposit, saving
deposit, fixed deposit, credit to deposit, deposit to total assets and liquid assets to deposit ratios.
1.4 Objectives of the Study
The objective of this study is to analysis, examine and interpret the liquidity mobilization
practice of Nabil Bank Limited and to find its actual financial position. The specific objectives of
this study are as follows:
1. To explore the deposit and lending position of Nabil Bank Limited.
2. To examine deposit and lending positionthe financial condition of Nabil Bank Limited.
3. To study the trend of deposit mobilization of NBL.
1.5 Significance of the Study
The significances of the study are as follows:
1. This study will provide the conceptual knowledge about the deposit analysis.
2. This study will support further academic researcher as a reference to understand deposit
analysis and financial performance of Nabil Bank Limited.

1.6 Research Methodology

The study is based on the following research methodology:

1.6.1 Research Design
The main objective of the study is to analyse deposit and lending performance using various
financial ratio analyses. For that purpose of the research, this study is designed under descriptive
and analytical method. Descriptive research design is the research design that is developed with
the aim of studying the subject of research in details and explains the facts and the characteristics
related to the research problems research related to predication, explanation of facts and
individual group or situation is descriptive research. So this study is based under descriptive
research design. Even though it is descriptive method, it uses the scientific method of collecting,
classifying and analysing related data, facts and figures.
1.6.2 Population and Sampling
There are currently 20 commercial banks in Nepal. Among them, due to the purpose of the
study,Nabil Bank is taken as the sample number for this study as per the random/convenience
sampling method.
1.6.3 Types of Data
The secondary data are the main data sources for this study; annual report of Nabil Bank is the
main source of data. All data are obtained from the website of Nabil Bank Limited.
1.6.4 Data Collection Procedure
Annual report publishes by Nabil Bank Limited is taken as the source of data. So the available
data is grouped in table and chart according to their nature and calculated using the financial
tools.
1.6.5 Instruments
Available data are analysed by using following financial tools such as profitability ratio, risk
ratio:
a) Credit to deposit (CD) ratio: Credit to deposit ratio is another important ratio to measure
liquidity. It shows the percentage of total loan on its total deposits. It is calculated by using
following equation:
Credit to Deposit Ratio = Total Credit Total deposit
b) Deposit to total Assets: It shows the relation between total deposit and total assets to meeting
the assets position to repay the deposit. It will calculate by using the following formula.
Deposit to total assets = Total Deposit Total Assets
c) Liquid Assets to Deposit Ratio:It shows the relationship between liquid assets and total
deposit of the bank. It is calculated by using following equation:
Liquid assets to Deposit Ratio = Liquid assetsTotal deposit
1.6.6 Techniques of Analysis
The annual report includes balance sheet, profit and loss statement, and financial statement. All
the available data will be grouped in tables and charts according their nature and calculated by
using statistical and the financial tools.
1.7 Limitations of the study
Each and every study has its own limitations and boundaries. This study also has various
limitations. The limitations of this study are as follow:
1. This study is purposed only for the partial fulfillment of Bachelor of Business Studies
(B.B.S) under Tribhuvan University.
2. This study is based on only one commercial bank of Nepal i.e.Nabil Bank Limited.
3. This report will cover only the latest five year data.
1.8 Organization of the study
This study willorganize under three chapters
Chapter-I Introduction: The first chapter will deal with the subject matter consisting
introduction, background of the study, statement of the problem, objectives of the study,
significant of the study, limitation of the study and organization of the study, literature review
that included a discussion on the conceptual framework on financial analysis, review of previous
studies and various articles research methodology used to conduct the present research. It deals
with research design, sources of data, data processing procedures, population and sample,
method of analysis and financial and statistical tools.
Chapter-II Results and Finding: The fourth chapter will concerned with analytical framework.
It includes the analysis of financial indicators.
Chapter-III Summary and Conclusion: The fifth chapter will included the summary,
conclusion and recommendations of the study which deals the main theme of study with major
findings.

REFERENCES
Adhikari, D.R. &Pandey, D.L. (2016).Business Research Methodology. Kathmandu;Asmita
Books Publishers & Distribution (P) Ltd.
Paudel, R.B., Baral, K.J. et.al. (2018). Financial Institution and Markets. Kathmandu;Asmita
Books Publishers & Distribution (P) Ltd.
Paudel, R.B., Baral, K.J. et.al. (2019). Fundamental of Corporate Finance.Kathmandu;Asmita
Books Publishers & Distribution (P) Ltd.
Paudel, R.B., Baral, K.J. et.al. (2019). Fundamental of Investment.Kathmandu; Asmita
Books Publishers & Distribution (P) Ltd.
Rawal, D.&Sapkota, C.K (2016). Commercial Bank Management. Kathmandu;Samjhana
Publication (P) Ltd.

Websites;
www.accountingtools.com
www.Nabilbank.com.np
www.wikipedia.com