Mobilization of Saving Deposit of Everest Bank Limited

A Project Work Report (MGT 401)

Submitted by;

Sandesh Khatiwada

TU Reg. No: 7-2-0266-0115-2013

TU Symbol No: 2660102

Submitted to;

The Faculty of Management

Tribhuvan University (TU), Kathmandu

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Business Studies (BBS)

Faculty of Management, Nepal Mega College, Babarmahal, Kathmandu,

Nepal

May, 2017
 Declaration

I hereby declare that the project work entitled “Mobilization of Saving

Deposit of Everest Bank Limited” submitted to the faculty of

Management, Tribhuvan University, Kathmandu is an original piece of

work carried out under the supervision of Mr.Ishwori Prasad Banjade,

faculty member, of Nepal Mega College, Babarmahal, Kathmandu, and is

submitted in partial fulfillment of the requirements for the award of the

degree of Bachelor of Business Studies (BBS). The Project work Report

hasn’t been submitted to any other university of institution for the award

of any degree.

………………………

Sandesh Khatiwada

Nepal Mega College

Babarmahal, Kathmandu

20thMay, 2017
 Recommendation

The work report entitled ‘Mobilization of Saving Deposit of Everest Bank

Limited’ submitted by Sandesh Khatiwada of Nepal Mega College,

Babarmahal, Kathmandu, is prepared under my supervision as per the

procedure and format requirements laid by the Faculty of Management,

Tribhuvan University, as partial he project. The work has been prepared

for completion of BBS course of TU. The study is original and carries

useful information in the concerned area.

I, therefore, recommend the project work report for evaluation.

………………………….

Mr. Ishwori Prasad Banjade

Nepal Mega College

Babarmahal, Kathmandu, Nepal

20thMay, 2017
 Endorsement

We hereby endorse the project work report entitled Mobilization of Saving

Deposit of Everest Bank Limited submitted by Sandesh Khatiwada of

Nepal Mega College, Babarmahal, Kathmandu, in partial fulfillment of the

requirements for award of the Bachelor of Business Studies (BBS)

Approved by

______________________

Mr. Ishwori Prasad Banjade Date: 20thMay, 2017

Supervisor

__________________________

Mr. Madhukar Pandey Date: 20thMay, 2017

Program Director, Bachelor

____________________________

Mr. Dinesh Khanal Date: 20thMay, 2017

Academic Director

____________________________

Mr. ……………………………… Date: 20thMay, 2017

External Examiner I understand that my thesis will become part of the

permanent collection of Nepal Mega College Library. My signature below

authorizes release of my thesis to any reader upon request.

_________________________

Sandesh Khatiwada, Author Date: 20thMay, 2017

 ACKNOWLEDGEMENTS

The author would like to extend his sincere gratitude to Faculty of

Management, Tribhuvan University, Kathmandu for designing the final

report project program as requirement for the partial fulfillment of

Bachelor of Business Studies (BBS). This report is prepared, on the topic

of “Mobilization of Saving Deposit of Everest Bank Limited”.

The author would like to thank all the staff of EBL of head office

including branch manager Mr. Satish Pratap Singh.

The author is also grateful to Mr. Madhukar Pandey, the coordinator of

Nepal Mega College as well as Mr. Ishwori Prasad Banjade for providing

necessary guidelines for preparation of report. The author would also

thankful to all the teachers and friends for their support during the period

of report preparation.

Finally, the author would like to thank all whom the author has forgotten

to mention.

__________________

Sandesh Khatiwada, Author Date: 20th May, 2017

 ABBREVIATION

AGM - Annual General Meeting

ATM - Automated Teller Machine

B.S. - Bikram Sambat

BBS - Bachelor of Business Studies

CB - Central Bank

CBS - Central Bureau of Statistics

EBL - Everest Bank Limited

i.e. - that is

LTD. - Limited

MOF - Ministry of Finance

NABIL - Nepal Arab Bank Limited

NG - Government of Nepal

NRB - Nepal Rastra Bank

PNB - Punjab National Bank

LIST OF TABLES
LIST OF FIGURES
TABLE OF CONTENTS
 CHAPTER I

INTRODUCTION

Finance is the life blood of trade, commerce and industry. Now-a-days,

banking sector acts as the backbone of modern business. Development of

any country mainly depends upon the banking system. A bank is a

financial institution which deals with deposits and advances and other

related services. It receives money from those who want to save in the

form of deposits and it lends money to those who need it. In most

countries, banks are regulated by the national government or central bank.

Brief Study of Everest Bank Limited (EBL)

Everest Bank Limited is a commercial bank in Nepal. The company offers

deposit accounts; import, term, demand, contract, housing, education and

gold loans, as well as export finance, working capital, and loans against

FDR and bonds/guarantees; and mobile/SMS banking, E-banking, debit

card, utility payment, remittance, branchless banking, and locker services.

It provides banking services to the different sectors, such as industries,

traders, businessmen, priority sector, small entrepreneurs, and weaker

section of the society and other people who need banking services. At the

present there are about 28 commercial banks operating in Nepal. Some of

these are new entries and are likely to be very aggressive in their

marketing approach. Bank of the year in Nepal 2006 A.D., Everest Bank

Limited was established on 1st Oct. 1994 A.D. as per company act of

Nepal. Everest Bank Limited is a joint venture with Punjab National Bank

(PNB) one of the largest commercial bank in India. The bank started with

an authorized share capital 12 crores its issued capital was 12 crores with a

paid up capital of 9 crores of the total issued share capital. Punjab National

Bank has hold 20% of total number of shares by general public of Nepal

for Everest Bank Limited More than 306 employees are EBL employed.

It’s in order to accomplish faster recruited this bank is providing tale-

banking, ATM, Credit card facilities forward dealing swift telex facilities.

The head office of Everest Bank Limited is located at Lazimpat in the

central of Kathmandu at opposite of Shangrila Hotel. It has good parking

facilities. Similar to other bank, the board of direction is the top policy of

Everest Bank Limited and gives proper directions to guide the direction to

the activities of bank.

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.

 Statement of Problems

Capital plays an important role in the banking sector. It is a requisite from

the promotional stage up to the end of a banking sector. No banking

transactions can be operated without capital. So, capital is labeled as ‘life

blood’ of banking sector. The capital can be collected from the various

sources such as shares, debentures, public deposits, bank loan etc.

Generally, there are various sources of accumulating capital internal and

external.

The negligence and corruption made by management level, over-staffing,

lack of social obligation, lack of proper control and directions are the

reasons that are facing by the Nepalese commercial banks. The problems

specially related to deposit mobilization of EBL has been presented below:

Impact of saving deposit mobilization on profitability of bank.

Unsafe and risky investment sector.

Ideal deposit and its impact.

Objective of the Study

To evaluate the share of saving deposit out of total deposit of EBL.

To generalize whether the mobilization of saving deposit in EBL are in

increasing or decreasing trends.

To explore the weight of ideal deposit out of saving deposit

 Rationale of the Study

This report will be useful to know overall picture of Everest Bank Ltd.

However, it is mainly concentrated in 'Saving deposit' of Everest Bank

Ltd. So anyone who wants information regarding the condition and trend

of 'Saving deposit' of Everest 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.

Limitations of the Study

This fieldwork report is prepared in the partial fulfillment of requirement

for the degree of 'Bachelor of Business Studies'.

The study mainly concentrates on saving deposit aspects of EBL.

The study on saving deposit uses the trend of past five years only.

It focuses only on saving schemes, therefore. Overall position of EBL

can't be judged by this report.

Most of the data used are of secondary type, which is available from bank

and other sources of books.

Report Structure
The first chapter includes general background of the study, overview of

sample bank, statements of the problem, objectives of the study, rationale

of the study and limitations of the study.

The second chapter, Review of Literature contains the conceptual review

of bank, review of related books, journals, and past research works.

Similarly, the third chapter expresses the way and the technique of the

studying applied in the research process. It includes research design,

population and sample, data collection procedure and processing, tools

and methods of analysis and findings of the study.

The fourth chapter is the important chapter in which collected and

processed data are presented, analyzed and interpreted with using financial

tools as well as statistical tools.

Finally, the fifth and the last chapter provide the summary of the study,

conclusion and recommendations which are forwarded to the related

banking industry for utilization and mobilization of their deposits.

 CHAPTER II

LITERATURE REVIEW

In this chapter, a relevant study has been made to analyze the opinion of

other researchers and authors related to saving deposit mobilization of

commercial banks in Nepal. Only the relevant literatures have been

reviewed. Every possible effort has been made to grasp knowledge and

information that is available from the concerned commercial banks. This

chapter helps to take adequate feedback to broaden the information base

and inputs to my study. In this chapter inputs are reviewed as follows.

Conceptual Review

Under this heading the concept of the bank and banking transactions are

described after reading thoroughly the available books.

Modern Banking in Nepal

Nepal Bank Ltd. is the first modern bank of Nepal. It is taken as the

milestone of modern banking of the country and was established in 1937

A.D. From the beginning, it has rendered the following services to the

customers: -

Accept deposit.

Extend loan.

Render customer-related service i.e. issue of bill of exchange.

Invest in government bonds and securities.

Perform agency function.

Act as banker to the government.

Until mid-1940s, only metallic coins were used as medium of exchange.

So the Government of Nepal felt the need of separate institution or body to

issue national currencies and promote financial organization in the

country. Hence, the NRB Act 1955 was formulated. Accordingly, Nepal

Rastra Bank was established in 1957 A.D. as a central bank of

Nepal.RastriyaBanijya Bank was established in 1966 A.D., as the second

commercial bank of Nepal. The financial shapes of these two commercial

banks have a tremendous impact on the economy. That is the reason why

these banks still exist in spite of their bad position.

After that for more than two decades, no more banks have been

established in the country. Only after declaring free economy and

privatization policy, Government of Nepal encouraged the foreign banks

for joint venture in Nepal. As a result, Nepal Arab Bank Ltd. (NABIL)

was established in 1985 A.D. This is the first modern bank with latest

banking technology.

Concepts of Commercial Bank

The Encyclopedia America; 1985 A.D. defines “A bank is a business

organization that receives and holds deposits of funds from others make

loan or extents credits and transfer funds by written order of deposits”.

In the Nepalese context, Commercial Bank Act, 1974 A.D. defines “A

commercial bank is one which exchanges money, deposits money, accepts

deposits, grants loans and performs commercial banking functions”.

Commercial banks are those banks that pool together the savings of the

community and arrange for their productive use. They supply the financial

needs of modern business by various means. They accept deposits from

the public on the condition that they are repayable on demand of short

notice. Commercial banks are restricted to invest their funds in corporate

securities. Their business is confined to financing the short term needs of

trade and industry such as working capital financing. They cannot finance

in fixed assets. They grant loans in the form of cash credits and overdrafts.

Apart from financing they also render services like collection of bills and

cheque, safe keeping of valuables, financial advertising etc. to their

customers (Vaidya, S.; 2001)

Conceptual Framework

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 (Paudel,2010). Based on the same this

study has depicted the following conceptual framework.

Conceptual Framework: Funds Allocation and Saving Deposit

Mobilization

Investment

Loans and Advances

Deposit

Assets Purchased
Banks are majorly determined by the conceptual framework namely

investment, loans &advances and the asset purchased. This variable has

the significant impact on the deposit mobilization mechanism and

practices of the banks which in turn influences the performance. This

study is based upon above mentioned deposit variable in order to explain

the relationship between the variables and the performance of the banks

under study.

Investment
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). But banks invest its funds in

profitable and safety activities. Bank invests its funds in the various

possible sectors such as share and debenture, government securities and

joint venture. Share a unit of ownership interest in a corporation or

financial asset. While owning shares in a business does not mean that the

shareholder has direct control over the business’s day-to-day operations,

being a shareholder does entitle the possessor to an equal distribution in

any profits, if any are declared in the form of dividends (Brennan et al.,

2011). The two main types of shares are common shares and preferred

shares. Likewise, a debenture is an unsecured loan one offer to a company.

The company does not give any collateral for the debenture, but pays a

higher rate of interest to its creditors. In case of bankruptcy or financial

difficulties, the debenture holders are paid later than bondholders.

Debentures are different from stocks and bonds, although all three are

types of investment. Government securities are the securities issued by the

government to raise the funds necessary to pay for its expenses. Treasury
bills, debt restructuring bills, government bonds, and government saving

bonds are an example of government securities.

Loans & Advances

While at any given moment some depositors need their money, most do

not. That enables banks to use shorter-term deposits to make longer-term

loans. The process involves maturity transformation- converting short-

term liabilities (deposits) to longterm assets (loans). Banks pay depositors

less than they receive from borrowers, and that difference accounts for the

bulk of banks’ income in most countries. Banks can complement

traditional deposits as a source of funding by directly borrowing in the

money and capital markets. They can issues securities such as commercial

paper or bonds; or they can temporarily lend securities they already own to

other institutions for cash- a transaction often called a repurchase

agreement (repo). Banks can also package the loans they have on their

books into a security and sell this to the market (a process called liquidity

transformation and securitization) to obtain funds they can relend

(Abraham and Harrington, 2011). 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 payments system are likely to disrupt trade- and

therefore, economic growth- significantly (Bhandari, 2010).

Asset Purchased

A long-term tangible piece of property that a firm owns and uses in the

production of its income and is not expected to be consumed or converted

in to cash any sooner than at least one year’s time. Banks purchases fixed

assets such a land & building, furniture and fixtures, computer software

etc for the commencement of the business. Likewise, banks keep on

increasing its assets volume or bases during for the branch expansions.

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,

magazines, newspapers and other related books.

Kafle(1990) .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.

Bajracharya (1990) has mentioned, mobilization of domestic savings is

one of the prime objectives of the monetary policy in Nepal. For this

purpose CBs stood as the active and vital financial intermediary for

generating resource in form of deposit of the private sector. So far

providing credit to the investors is a different aspect of the money.

Morris (1980) concluded that, most of the banks concentrated on

compliance with central bank rules on resources requirement, credit

collection and interest rates. While analyzing loan portfolio quality,

operating efficiency and soundless of bank investment management has

largely been overlooked. The huge losses now find in the bank’s portfolio

in many developing countries and testimony to the poor quality of this

ever sight investment function.

The writer adds that mismanagement in financial institution has involved

inadequate and over optimistic loan appraisal, tax recovery, high risk

diversification of lending and investments, high risk concentration,

connected and insider lending, loan mismatching. This has led many banks

of developing countries to the failure of 1980s A.D. (Morris; 1990).

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: -

Karmacharya (2004) 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.

Rayamajhi (2009) concluded that commercial banks play a crucial

accelerating the growth in the 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 this analysis.

Joshi (2011), the objectives of finding the comparative financial strengths

and weakness of various commercial banks, return rate and expected

return to the shareholders, systematic and unsystematic risk of the banks

and providing recommendation on the basis of research findings, by using

financial ratios, it is calculated that lending condition of banks are in

decreasing trend. Banks in strong condition are holding good customers

and discouraging low rated and less amounted loans. Instead of that, they

are initiated towards remittance, bank guarantees and other commission

generating activities, while other banks are showing aggressive and are

spontaneously increasing loan loss provision. Deposits in the banks are

also decreasing while some banks are holding enough funds.

Venkatesan (2012) carried out a study on an empirical approach to deposit

mobilization of commercial banks in the context of Tamilnadu. The data

are first subjected to descriptive statistics, namely mean, standard

deviation and coefficient of variation in order to know the central

tendency, dispersion and volatility in the data. Next simple linear

regression technique was used and the variables were current deposit,

fixed deposit and term deposit. The study is based on secondary data for

the span of ten years from 1990-00 to 2008- 09. The data were obtained

from statistical handbooks and broachers published by Reserve Bank of

India (RBI). The major findings of the study were that there was a

significant trend and growth in current deposits in terms of value despite

there was a significant decline in number current deposits accounts in

scheduled commercial banks in Tamil Nadu during the period from 1990-

00 to 2008-09. Regarding saving deposits, there was a significant trend

and growth in it both in terms of number of accounts and in value

(amount). But the scenario was different in the case of term deposits in

scheduled commercial banks. The number of term deposits exhibited a

significant growth and trend but there was neither decrease nor increase in

it when evaluated by value. Hence, it was concluded that the scheduled

commercial banks in Tamil Nadu performed well in deposit mobilization

in ten years from 1999-00 to 2008-09.

Research Gap
There are many research study conducted entitled “Saving Deposit

Mobilization", mainly research have selected various commercial bank

and development bank as well for the research. As the research gap is

concerned there are many changes takes place in the deposit mobilization

environment and investment habits of banks as compared to last few years.

So fresh study related to deposit mobilization of Everest Bank Limited has

been done with secondary data which is obtained from the annual report of

the concerned bank in this research. On review of the unpublished thesis,

researchers has manly focused on the financial and statistical data analysis

such as financial ratio, standard deviation, correlation, coefficient of

variation, probable error etc. but our objectives is to analyze the trend for

the future in all these financial and statistical tool used for the forecasting

of deposit and its investment. Some of the financial ratios and the trend

value formula with the trend chart have been applied to cover the

analytical part and fulfill the objectives of this study. Various empirical

contradictions were presented by several researchers on funds allocation

and deposit mobilization. The comparison of the mobilization and use of

savings across types of financial intermediaries study found that in a

developing country context, if financial institutions could not effectively

and efficiently perform the fundamental role intermediation between

savers and borrowers, market failure would exist, which may have adverse

impact on the productivity of the economy. Likewise, access to credit may

be an important determinant in the selection of deposit institutions by

savers, and especially by no wealthy households, in developing countries.

It was found that there is highly positively correlation between total

deposit and total investment the researcher concluded that finance

Company has been found profit oriented, ignoring the social responsibility

which is not a fair strategy to sustain in long run. The related literatures

with funds allocation and deposit mobilization taking the investment,

loans & advances and asset purchased as independent variables and

deposit as dependent variables are rarely found in context of Nepal.

 CHAPTER III

RESEARCH METHODOLOGY

. “Research methodology refers to the various sequential steps to be

adopted by a researcher in studying a problem with certain objectives in

view”. In other word research methodology describes the method and

process applied in the entire subject of the study. This topic deals with the

research design, nature of data collection, process of data analysis and

statistical tools used.In other words, research methodology describes the

methods and process applied in the entire subject of the study.

Research Design

To achieve the objectives of the study, descriptive as well as analytical

research design have been used. This study is based on secondary data.

Some samples such as statistical tools such as Mean, S.D, Trend line, Bar

diagram and Pie-chart has been applied to examine the facts of data. Not

only data but also recommendations and suggestions are also derived from

the study by taking the EBL as a sample. So that all concerned can be

achieved something from the study.

Basically, the proposed study is mainly based on two types of research

design namely descriptive and analytical. Descriptive research design

describes the general attitude of the Nepalese depositors, business

environment, problems regarding the deposits mobilization aspects etc.

Similarly, the analytical research design makes a thorough analysis of

gathered facts and information and critically evaluates it as well.

Quantitative Research method

In this research quantitative method of data collection is used.

Types of Data

Both primary and secondary data have been used for this study. Primary

data has been used in order to assess the opinions of bank managers on

funds allocation and deposit mobilization of EBL. In addition, the primary

data attempts to reveal other facets regarding funds allocation and deposit

mobilization situation in EBL. At the same time, secondary data has been

employed in order to analyze the relationship between deposit and its

explanatory variables.

Primary Data

Primary data refers to those data collected by the investigator

himself/herself for a specific purpose. In this research the primary data

have been collected through the help of staffs of bank.

Secondary Data

Data collected by someone else for some other purpose (but being utilized

by the investigator for another purpose). In this research, Supplementary

data and information are collected from the head office of EBL and

authoritative sources like NRB, NEPSE, SEBON, web sites etc.

Secondary data were used to test the ability of the EBL on the utilization

and mobilization of the deposits available and the effect of various

elements such as Loans and advances, Investments and the Assets

purchased on the profitability of the bank.

Method of Data Analysis

To achieve the objectives of the study various statistical tools have been

used. The analysis of the study will be done according to the pattern of

data available and to make the analysis more effective, convenience,

reliable and authentic. The different calculated results obtained through

statistical tools are tabulated under different headings. Then they are

compared with each other to interpret the results.

Statistical Tools
Statistical methods are the mathematical techniques used to facilitate the

analysis and interpretation of numerical data secured from groups of

individuals or groups of observation from a single individual. The figures

provide detail descriptions and tabulate as well as analyze data without

subjectivity but only objectivity (Joshi; 2002).

Arithmetic Mean

Standard Deviation (S.D.)

Trend Analysis

Bar diagram

Pie-chart
 CHAPTER IV

Data Presentation and Discussion

Statistical Analysis

Arithmetic Mean

Table

4.1.1

(Rs.Inlacs

Total

Fiscal Deposit(X

Year )

2068/6

9 500061

2069/7

0 577205

2070/7

1 621081

2071/7

2 830937

2072/7 937355
 3

∑X 3466639

Source: Annual Report of EBL

N 5

Arithmetic Mean (A.M.) = ∑X/n

RS.693327.

= 8

The above table shows that the trend of total deposit is increasing. The

average total deposit of last five years is Rs. 693327.8 (lacs) which shows

that bank is in good condition. It shows that the perception of customer is

positive towards the bank.

Standard Deviation (S.D.)

Table 4.1.2

(Rs. In lacs)

Total

Fiscal Deposi

Year t (X) ( X-A.M.)2

2068/6 50006 3735205598

9 1 2

2069/7 57720 1348450468

0 5 0

2070/7 62108

1 1 5219600110

2071/7 83093 1893629192

2 7 5
 2072/7 93735 5954927434

3 5 0

Source: Annual Report of EBL

Standard Deviation (S.D.) = 122516939.2

Percentage Change in Total Deposit

The percentage increase/decrease in total deposits from fiscal year

2068/69 to 2072/73 is given below.

Table 4.1.3

(Rs. In lacs)

Total

Fiscal Deposit %

Year of EBL Change

2068/69 500061 -

2069/70 577205 15.43

2070/71 621081 7.6

2071/72 830937 33.79

2072/73 937355 12.81

Source: Annual Report of EBL

 % Change
40
35
30
25
20
% Change
15
10
5
0
2068/69 2069/70 2070/71 2071/72 2072/73

Figure 4.1.1 Percentage Change in Total Deposit

The above figure shows the deposit trends from the fiscal year 2069/70 to

2072/73. Form the table we can see the total deposits of EBL are at

increasing trend. This increasing trend in total deposit of EBL shows the

general public attitude is going positively.

Position of investment ratio to total loan and advances

Table 4.1.4

(Rs.

In

lacs)

Fis Tot Invest Ratio

cal al ment %

Ye loan

ar &

adv

anc

es

206

8/6 366 7863 21.475

9 168 6 38835

206

9/7 441 9263 20.959

0 978 8 86678

207

0/7 484 6504 13.424

1 503 2 47828

207

1/7 553 1510 27.278

2 635 26 98345

207

2/7 689 1819 26.408

3 115 87 79969

(Source: Annual report of EBL)

 Ratio %
21.47%
26.40%

2068/69
2069/70
2070/71
20.95% 2071/72
2072/73
27.27%

13.42%

Figure4.1.2 Investment to total loan ratio

The above figure shows that deposit mobilization of EBL is more

fluctuate. The deposit collected in bank is mainly use in issue loan and

advances than investment in real assets.

In fiscal year 2068/69 the ratio of investment to loan and advances is

21.41%. Similarly in year 2069/70 is 20.95%, in year 2070/71, 2071/72,

2072/73 is 13.42%, 27.27%, and 26.40% respectively. Which shows that

the bank have consistency to use the collected deposits.

Percentage change in Saving Deposit

Table 4.1.5 (Rs. in lacs)

Fiscal Total %

Year Saving Change

 Deposit

2068/69 172692

2069/70 210674 22%

2070/71 264894 25.74%

2071/72 326042 23.08%

2072/73 386496 18.54%

% Change
30%
25.74%
25% 23.08%
22%

20% 18.54%

15%
% Change
10%

5%

0%
2068/69 2069/70 2070/71 2071/72 2072/73

Figure 4.1.3 Percentage change in Saving Deposit

The above figure shows that the saving deposit is in increasing trend in

amount. But the saving deposit ratio is in decreasing in percentage. In

fiscal year 2069/70 the percentage of saving deposit is increased to 22%,

similarly in year 2070/71, 2071/72, 2072/73 is 25.74%, 23.08% and

18.54% respectively. The above figure reflect the people are aware that

they are not collecting their money in saving because saving deposit have

less interest than other deposit.

Share of saving deposit out of total deposit

Table 4.1.6

(Rs. In lacs)

Fisc Sa Tot Sav

al vin al ing

yea g dep to
r dep osit tota

osit l

dep

osit

rati

206 17 50 34.

8/6 26 006 53

9 92 1 %

206 21 57 36.

9/7 06 720 5%

0 74 5

207 26 62 42.

0/7 48 108 65

1 94 1 %

207 32 83 39.

1/7 60 093 24

2 42 7 %

207 38 93 41.

2/7 64 735 23

3 96 5 %
 (Source: Annual report

of EBL)

Saving to total deposit ratio

45.00%
40.00%
42.65% 41.23%
35.00% 39.24%
36.50%
30.00% 34.53%
25.00%
Saving to total deposit
20.00% ratio
15.00%
10.00%
5.00%
0.00%
2068/69 2069/70 2070/712071/72 2072/73

Figure 4.1.4

The above figure shows that in fiscal year 2068/69 saving deposit to total

deposit ratio is 34.53%, in fiscal year 2069/70 is 36.50%, in 2070/71 is

42.65% which is in increasing trend. But in year 2071/72 the ratio of

saving deposit to total deposit is decreased to 39.24%. In coming year

2071/72 bank makes up their saving deposit than previous year. Bank

successes to grow their saving deposit from 39.24% to 41.23%.

Table 4.1.7
 Fiscal Saving to total

year deposit ratio

2068/69 34.53%

2069/70 36.50%

2070/71 42.65%

2071/72 39.42%

2072/73 41.23%

Total 194.33%

(Source: Annual report of EBL)

Average of saving deposit to total deposit ratio is 38.87%.

Major Findings

From the data presented and analysis done the following are the major

findings:

There is increasing trend in collection of total deposits.

Saving deposit is also increasing Ratio compare with total deposits.

The portion covered by saving deposit is quite better i.e. 38.87% in

average.

The position of investment in total loans and advances has increased each

year.

Saving deposit has more uniformity as its standard deviation is more

consistent or increasing trend.

Saving deposit has estimated for coming year.

The average of total deposit for last five year is Rs.693327.8.

CHAPTER V
DISCUSSIONS AND CONCLUSION

Discussions

Everest Bank Limited is one of the best commercial bank in Nepal. The

owner ship of total capital of bank is 20% of Punjab National Bank (PNB),

50% share by Nepalese promoters and 30% of shares by general public of

Nepal. Everest Bank Limited is Bank of the year 2006 in Nepal.

From the above analysis researcher can say that EBL has good strength in

market. Every year the deposit amount of bank is in increasing trend but in

year 2071/72 and 2072/73 the ratio of collecting deposit is decreasing by

less percentage. The above analysis also shows that the bank has

mobilized their deposits in better way.

In fiscal year 2068/69 saving deposit to total deposit ratio is 34.53%, in

fiscal year 2069/70 is 36.50%, in 2070/71 is 42.65% which is in increasing

trend. But in year 2071/72 the ratio of saving deposit to total deposit is

decreased to 39.24%. In coming year 2071/72 bank makes up their saving

deposit than previous year. Bank successes to grow their saving deposit

from 39.24% to 41.23%.

The saving deposit is in increasing trend in amount. But the saving deposit

ratio is in decreasing in percentage. In fiscal year 2069/70 the percentage

of saving deposit is increased to 22%, similarly in year 2070/71, 2071/72,

2072/73 is 25.74%, 23.08% and 18.54% respectively. The above figure

reflect the people are aware that they are not putting their money in saving

because saving deposit have less interest than other deposit.

EBL contributes to the process of capital formation by converting

dispersed saving into meaningful capital investment in order to aid

industry, trade, commerce and agriculture for the economic development

of a nation. Saving deposits are the obligation of EBL. So, EBL must

allocate the funds in different loans and advances and investments and

purchase of assets. Deposit mobilization plays a vital role for the

economic development of an underdeveloped and developing country

rather than developed one.

Conclusion and Recommendation

For the development of the economy banks play a significant role, Everest

Bank Limited. EBL has big hand in development of the economy of our

country. It is helping the economic growth and standard of people. EBL

provides various financial services to customer i.e. accepting deposits,

issuing loan and advances, agency services, locker facility etc. They also

give appropriate interest rate on customer savings.

The saving deposit of Everest Bank Limited is in increasing trend. The

position is quite good and contributed saving to generate more income for

the bank by making investment in various productive sectors. In Nepalese

context it has best performance in comparison to other banks.

It has increasing ratio total deposit, saving deposit, loans and profit.

EBL should conduct a market research on a periodic basis to identify and

attract the potential borrowers by using various promotional tools. EBL

should come up with newer products to compete in the cut throat

competition and to stand the challenged rising from new upcoming bank.

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www.nrb.org.np

http://www.everestbankltd.com/