You are on page 1of 13

TABLE OF CONTENTS

1. Background of The Study… … … …… … … … … … … … … … … … … … … ……2

2. Profile of Organization … … ……… … … … … … … … … … … … ……………… 6

3. Objective of the Study … … … … … … … …… … … … … … … … … … … … … 8

4. Rationale of the Study … … … … … … … …… … … … … … … … … … … … … 9

5. Report Structure … … … … … …… … … … …… … … … … … … … … … … … 9

6. Review of Literature … … … … … … …… … …… … … … … … … … … … … … 10

7. Methods … … … … …………… … … … … … … …… … … … … … … … … … … 11

8. Limitations… …… … … … … … … …… … … … … …… … … … … … … … … … 13

BIBLIOGRAPHY… … … … … … … … … … … … …… … … … … … … … … … 14

1
1. Background of the Study
Generally, by the word “bank” we can easily understand that the financial institution dealing
with money. The whole scenario of the economy of a country can be ascertained by examining
the condition of the banking sector. But it is difficult to say exactly from where the term ‘bank’
has been derived. But it is assumed that the term ‘bank’ was originated from the Latin word
‘bancus’, Italian word ‘banca’ and French word ‘la banque’ which all mean ‘bench’, referring
to the culture in major cities of Europe, where a money lender used benches in streets for
acceptances, payment and exchange of valuable and coins. Hence, it can be said that the term
‘bank’ was derived from that culture.

Origin of Banks
The origin of bank is not a new phenomenon. There was crude from of banking even in ancient
Vedic ear. The term "Bank" came from the Italian word 'Banco' meaning a bench or table
because the money changes and tables. The word seems to have been, however used first in
Italy in the mid-ages with the foundation of the 'Bank of Venice' in 115 7 A.D. as first bank of
the world.
In 1401 A.D. as second bank of the world is "Bank of Barcelona" Spain and the bank of Genera
in 1407 A.D. Similarly, the bank of England of U.K. was established in 1694 A.D. which
becomes the first central bank of the world.
The "Bank of Hindustan" was established in 1770 is the first bank of India. By this way banking
was developed first in Europe and then spread all over the world and came to present advanced
form.

In Nepal, the course of establishment of banks is not very, old. As a first bank of Nepal 'Nepal
Bank limited' was established in 31st Kartik 1994 B.S. right from inception in carried out
function of a commercial bank. Having felt the need of development of banking sector and
monetary policies, Nepal Rastra Bank act 2012 B.S. was executed and Nepal Rastra Bank was
established on 14th Baishakh 2013. Similarly, NIDC in 2016 B.S. as an individual bank.
'Rastriya Banijya Bank' in 2022 B.S. as a second commentarial Bank and "Agriculture
Development Bank" in 2034 B.S. were established. In 2031 B.S. Commercial Banks uniformly

2
under a single act. In 1984 A.D.
Nepal government established five ruler development banks under the control and supervision
of Nepal Rastra Bank in five development regions.
Nepal has opened its door to foreign commercial banks to operation in the kingdom of Nepal
since it adapted 'Liberal Free Economic Policy' in 1985 AD (2042 BS) Nepal Arab Bank Limited
(NABIL) was established. Currently there are 28Commercial Banks, 57Development Banks, 36
Finance Companies, 48Micro Credit Development, 15 Saving and Credit Co-operatives
(Licensed by NRB), 25 Non-Government Organizations (NGOs) and 10 Other Institutions.

About Commercial Bank


Commercial Banks are the ordinary financial institution, i.e. accept deposit from the public
through different types of accounts, providing short term and long-term loan. These types of
banks deposits are repayable on demand. Commercial banks are generally set up as companies
under the Companies Act and it is work under Nepal Rastriya Bank.
Global IME Bank is also one commercial bank, which providing facilities as commercial bank.

Lists of Commercial Bank


S. Name Operation Head Office Paid up Working
N. Date (A.D.) Capital (In Rs. Area
Crore)
1 Nepal Bank Ltd. 1937/11/15 Dharmapath,Kath 649.95 National
mandu Level
2 Rastriya Banijya 1966/01/23 Singhadurbarplaza 858.90 National
Bank Ltd. ,Kathmandu Level
3 Agriculture 1968/01/21 Ramshahpath, 1037.44 National
Development Bank Kathmandu Level
Ltd.
4 Nabil Bank Ltd. 1984/07/12 Beena Marg, 618.35 National
Kathmandu Level
5 Nepal Investment 1986/03/09 Durbarmarg, 870.66 National
Bank Ltd. Kathmandu Level
6 Standard Chartered 1987/02/28 Nayabaneshwor, 374.99 National
Bank Nepal Ltd. Kathmandu Level
7 Himalayan Bank Ltd. 1993/01/18 Kamaladi, 449.91 National
Kathmandu Level
8 Nepal SBI Bank Ltd. 1993/07/07 Kesharmahal, 388.37 National
3
Kathmandu Level
9 Nepal Bangaladesh 1994/06/06 Kamaladi, 401.18 National
Bank Ltd. Kathmandu Level
10 Everest Bank Ltd. 1994/10/18 Lazimpat, 274.26 National
Kathmandu Level
11 Kumari Bank Ltd. 2001/04/03 Durbarmarg, 269.92 National
Kathmandu Level
12 Laxmi Bank Ltd. 2002/04/03 Hattisar, 303.92 National
Kathmandu Level
13 Citizens Bank 2007/04/20 Kamaladi, 553.74 National
International Ltd. Kathmandu Level
14 Prime Commercial 2007/09/24 Newroad, 489.19 National
Bank Ltd. Kathmandu Level
15 Sunrise Bank Ltd. 2007/10/12 Gairidhara, 530.14 National
Kathmandu Level
16 Janata Bank Nepal 2010/04/05 Naya Baneshwor, 206.00 National
Ltd. Kathmandu Level
17 Mega Bank Nepal 2010/07/23 Kantipath, 401.20 National
Ltd. Kathmandu Level
18 Century Commercial 2011/03/10 Putalisadak , 368.90 National
Bank Ltd. Kathmandu Level
19 Sanima Bank Ltd. 2012/02/15 Nagpokhari, 530.59 National
Kathmandu Level
20 Machhapuchhre Bank 2012/7/9 New Road, 386.45 National
Ltd. Pokhara, Kaski Level
21 NIC Asia Bank Ltd. 2013/6/30 Thapathali, 581.96 National
Kathmandu Level
22 Global IME Bank 2014/4/9 Panipokhari, 616.43 National
Ltd. Kathmandu Level
23 NMB Bank Ltd. 2015/10/18 Babarmahal, 543.01 National
Kathmandu Level
24 Prabhu Bank Ltd. 2016/2/12 Babarmahal, 588.14 National
Kathmandu Level
25 Siddhartha Bank Ltd. 2016/7/21 Hattisar, 302.21 National
Kathmandu Level
26 Bank of Kathmandu 2016/7/14 Kamaladi, 457.69 National
Lumbini Ltd. Kathmandu Level
27 Civil Bank Ltd. 2016/10/17 Kamaladi, 458.38 National
Kathmandu Level
28 Nepal Credit and 2017/01/01 Siddharthanagar, 467.91 National
Commerce Bank Ltd. Rupandehi Level

4
Bank Deposits
Bank deposits consist of money placed into banking institutions for safekeeping. These deposits
are made to deposit accounts such as savings accounts, checking accounts and money market
accounts. The account holder has the right to withdraw deposited funds, as set forth in the terms
and conditions governing the account agreement.

Types of Deposits
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
 Demand Deposit
 According to the Interest
 Interest Bearing
 Fixing
 Current
 Saving
 Call
 Non-Interest Bearing
 According to the Ownership
 Public Deposit
 Private Deposit
 Inter-Bank Deposit

Saving Deposit
Savings accounts offer the account holder interest on his deposits. However, in some cases,
account holders may incur a monthly fee if they do not maintain a set balance or a certain
number of deposits. Although savings accounts are not linked to paper checks or cards like
current accounts, their funds are relatively easy for account holders to access. In contrast, money
market accounts offer slightly higher interest rates than savings accounts, but account holders
5
face limitations on the number of checks or transfers they can make from these accounts.

The scope of investigation in financial sector is wide. A researcher can select many topics to
conduct the researcher work in. As for me being a management student under Tribhuvan
University with specialized in finance, I am very curious to know about the saving deposit of
Global LME Bank Ltd. because I found interest on it and I have more knowledge about this
topic.

2. Profile of Global IME Bank Ltd.


Bank of the year in Nepal 2014with “The Bank of the Year Award 2014” for Nepal by the
Bankers Magazine (Publication of the Financial Times, UK) and “Best Internet Bank 2016-
Nepal” by International Finance Magazine, London. Global IME was established in
January2007 as an ‘A’ class commercial bank in Nepal which provided entire commercial
banking services. This bank was established with the largest capital base at the time with paid
up capital of NPR 1.0 billion. The paid-up capital of the bank has since been increased to NPR
8.08 billion. The bank's shares are publicly traded as an 'A' category company in the Nepal
Stock Exchange.
Global IME Bank Limited have probably more than 2250 employees are employed all over the
Nepal. It’s in order to accomplish Pastor recruited this bank is providing Mobile Banking,
Internet Banking, Locker, ATM Card, Credit Card etc. facilities forward dealing swift telex
facilities.
GIBL has been appointed as handling bank unit of CREF (Central Renewable Energy Fund)
under AEPC (Alternative Energy Promotion Center). GIBL has been the first ever bank selected
for such purpose by AEPC.
Board of Director
Mr. Chandra Prasad Dhakal Chairman
Mr. Pawan Kumar Bhimsaria Director
Mr. Sudarshan Krishna Shrestha Director
Mr. Suraj Kumar Shrestha Director
Mr. Suman Pokharel Director

6
Shareholders Structure
Authorized Capital of Global IME Bank is NPR 10,000 million and Paid up Capital is NPR
8,080.34 million. The promoters hold 51.18% while 48.82% is floated for the public. Current
shareholder structure of the bank is as below:

Percentage of Ownership Capital Invested


Promoter Shareholder 51.18% NPR 4,135.46 million
Public Shareholders 48.82% NPR 3,944.88 million
Total 100% NPR 8,080.34 million

Location
The head office of Global IME Bank Limited is located at Kantipath in the central of
Kathmandu at opposite of Mega Bank. It has good parking facilities.

Global IME Bank Limited Branch Networking


The bank is now operating 108 branches, 4 extension counters and 14 revenue collection
counters spread throughout Nepal. All of the bank's branches have been established as full
service outlets that offer a large range of banking services to its customers. The bank also
operates 126 ATMs throughout the country strategically placed for the convenience of
customers. Global IME Bank Limited has branches including Head office at Kantipath. Focus of
the study the main focus of the study is the saving deposit of Global IME Bank limited. The
focus of type of deposit and saving deposits.

Similar to other board of directions is the top policy of Global IME Bank Limited and gives
proper directions to guide the direction to the activities of bank.
Similarly, managers handle the branch offices. Under the managers various numbers of staffers
are working as per the need of branch, Now Global IME Bank Limited has probably more than
2250 staffs working in total offices/ branches with head office and regional office.

7
Lists of Global IME Bank Branches
SN Branches SN Branches SN Branches
1 Annamnagar 21 Dillibazar 41 Manakamana
2 Arghakhachi 22 Gaighat 42 Nakhhu
3 Baglun 23 Gongobu 43 Narayanghat
4 Baireni 24 Gorkha 44 Naxal
5 Baitadi 25 Gyaneshwor 45 Nepalgung
6 Banasthali 26 Hetauda 46 New Road
7 Barhabise 27 Indrachwok 47 Pani Pokhari
8 Baudha 28 Itahari 48 Pokhara
9 Beni 29 Janakpur 49 Pokhara (New Road)
10 Bhairahawa 30 Jitpur 50 Pulchok
11 Biratnagar 31 Kalanki 51 Rajbiraj
12 Birjung 32 Kamaldi 52 Sulechaur
13 Butwal 33 Kantipath 53 Surkhet
14 Butwal (Milanchwok) 34 Kawasolti 54 Suryabinayak
15 Chabahil 35 Koteshwor 55 Tatopani
16 Chhetrapati 36 Kritipur 56 Terathum
17 Daduldhura 37 Kuleshwor 57 Thamel
18 Dhangadi 38 Kupandol 58 Tulsipur
19 Dhapasi 39 Lagankhel
20 Dharan 40 Mahendranagar

3. Objective of the Study


Following are the major objectives of the study:
 To find out the saving deposit source
 To find out deposit trend of Global IME Bank

8
4. Rational of the Study
The significance of the study of the study are:
 Anyone who wants information regarding the condition and trend of 'Saving deposit’
can easily get it.
 Gave guideline to improve the bank's problem regarding to the saving deposit.
 It helps to know almost all transaction of the bank because deposit collection is the
major function of commercial bank.
 It helps to know nature of saving with their interest rate i.e. Fixed deposit have high
interest rate and other deposits have low interest rate.
 It will be as a reference for the students in coming years.

5. Report Structure
The report will be divided into 3 different chapters
Chapter 1
Introduction
The first chapter deals with the subject matter consisting Introduction such as Background of
the Study, Profile of the Organization, Statement of the Problem, Objectives of the Study,
Rationale of the Study, Structure of the Report, Review of the Literature, Methods of the
Study and Limitation of the Study.

Chapter II
Results and Analysis
The second chapter deals about the Data Presentation, Results and Analysis and Findings of
the Study.

Chapter III
Summary and Conclusion
The third includes a brief Summary of the Study and Conclusion based on the findings of
the study.

9
6. Review of Literature

 Conceptual Review
Bank deposits consist of money placed into banking institutions for safekeeping. 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.
However, the bank usually pays small interest to the saving depositors against their deposit in
accordance with the prescribed rate of interest.
Deposit collection of the bank is the major function of all commercial banks. Mostly among the
various deposits features provided by commercial bank, fixed and saving deposit are mostly
used and take by general people. Generally, most of the people seeking for high interest rate for
saving their funds, but fixed deposit is the only one type where high rate of interest have for the
long period of time. So that fixed deposit is suitable for getting high rate but it is not suitable in
the condition of use funds short period of time.
Now day's organizations, institutions, etc. are using saving deposit money/ funds for the purpose
of distribution of salary of their employee and also for to do payments. Bank is the only one safe
way to do expensive transactions.

 Review of Previous Work


Baidar (2015) her study on "A Study of Saving Deposit of Global IME Bank Ltd." concluded
that saving deposit of Global IME Bank Limited is increasing trend. Its position is quite good
and contributed a lot of the bank to be able to generate more income for the bank by Investment.
And its branches are increasing slowly and after some year it has many branches in Nepal.
Similarly, she found that ratio of relation of saving deposit and total deposited are highly
correlated.

 Research Gap
In this study, the major area will be disclosing the saving deposit position of Global IME Bank
Ltd. commercial bank. This type of research is really done. This study will show that the unique

10
feature of findings. In previous research, she fined that the saving deposit ratio is increasing
rapidly than other commercial banks. The reliable banking as well as remittance facilities made
it "A" Graded Bank of Nepal till date.

7. Methods

 Research Design
A research design is conceptual within which research process is performed. Design set up the
framework for adequate tests of the relations among variables. For the analysis of the saving
deposit of Global IME Bank Ltd. of Nepal, developmental research of descriptive design will be
applied to achieve the objective of my report writing.

 Population Sampling
As population in this report writing, 28 commercial bank will be considered. As sample Global
IME Bank Ltd. will be selected.

 Sources of Data
Data may be obtained from several sources. Each research has its own data needs and data
sources. The research will be based on secondary data.

 Data Collection Procedure


The sources of data will be collected from concerned annual report and website of relevant
bank, previous thesis and various articles published by various people and organizations.

 Instrument
As instrument statistical tools will be applied to analysis data.
The statistical tools are:
 Correlation Coefficient (r)
 Probable Error (PE)
 Stander Derivation
11
 Techniques of Analysis
The research will be conducted on content analysis. The research will be presented data in
different tables, Charts and figures.

8. Limitation
 The study mainly concentrates on saving deposit aspects of Global IME Bank Ltd
 Most of the data used are of secondary type, which is available from bank and other
sources of books.
 It focuses only on saving schemes, therefore. Overall position of GIB can't be judged by
this report.

12
Bibliography

Baidar, S. (2015). A Study of Saving Deposit of Global IME Bank Ltd. Kabhre Multiple
Campus, Tribhuvan University, Kathmandu, Nepal.

Chaudhary, A.K (2014). Business Statistics (2nd ed). Kathmandu: Bhundipuran Prakashan.

Panta, S.B. (2008). Deposit Analysis of NABIL Bank Ltd. Public Youth Campus, Faculty of
Management, Tribhuvan University, Kathmandu, Nepal.

http:// www.globalimebank.com.
http:// www.nrb.org.np
http:// www.wikipedia.org

13