APPENDIX

A PROPOSAL ON

DEPOSIT ANALYSIS OF NMB BANK

SUNWAL, NAWALPARASI
1.1 Background of the study

The origin of bank linked to the Italian word ‘banco’ which means where money lenders and
money changers of the period gather to keep their money and their records of lending or
exchanging of coins in the market place. A bank is define as financial institution which works
as mediator between surplus unit and deficit unit i.e. it collects deposit in different form of
surplus unit and provides loan to deficit units to carry out different work.

In the context of Nepal, like as other countries the goldsmith and landlord was tile ancient
banker. The Nepalese people were highly exploited by Sahumahajan by charging higher
interest rate, compounded interest rate and even manipulating the principal amount. In the
time of Shankhardhar Sakuwa Tankadhari was formed to deal monetary transactions during
the regime of Jung Bahadur Rana. Mulikhana was established for taking care of financial
responsibility of the country. Tejrarath Adda was established on 1933 Bs, during the prime
minister Ranoddip Singh which was the first step towards the institutional development of
banking in Nepal. Tejrarath Adda did not collect the deposit from the public but gives loans
to employees and public against billion. The first commercial bank ‘Nepal Bank limited’ was
establishment on 30th kartik 1994 Bs and start to perform banking activities then after on
B.s.2013.01.14 Nepal Rastra bank was est. as a central bank and Rastriya banijya bank on
B.s.2022.10.10 as a fully government owned commercial bank. Nowadays a several banks
and other financial institutions have been established and performing their banking activities.

In every aspects, all deposits funds became nonproductive until it is financed or invested in
the market for the sustainable development of economic status, the financing should continue
regularly as the market demands which is possible by sufficient deposit that allows the
adequate flow of money. When we deal with the money and its long term mobilization, it is
very important to analysis the trend and utilization to make the future real.

A deposit consists of money placed into banking for safekeeping. Deposit is one of most
important functions of commercial banks. Without deposit, bank cannot perform its function
smoothly. Banks accept the deposit into two forms i.e. noninterest bearing and interest
bearing deposit. The noninterest bearing deposit is known as current deposit or demand
deposit. Saving deposit account, fixed deposit and call deposit accounts are interest bearing
deposit. Deposit traditionally provide a cheap and reliable sources of funds for development,
which is of great value developing countries, especially when the economy has difficulty
raising capital in international markets.
 Among 27commercial bank, NMB has been in operation in Nepal. NMB Bank Nepal is one
of those with headquarters in Kathmandu. NMB was formed in May 2008 is licensed as ‘A’
class financial institution. It was created as merger with four financial institution i.e. Bhrikuti
development bank, Pathibhara bikash bank, prudential financed company and cleaned energy
development. It has 110 branches across the nation providing retail and commercial banking
services. NMB Bank has been recognized as “Bank of the year in Nepal” for two consecutive
years, 2017 and 2018 by, The Banker a service of Financial Times, for leading roles in the
country’s financial sector by using new digital technologies.

1.2 Literature review

‘’Deposits plays a vital role in bank funding as a major portion of a commercial bank’s assets
is usually financed through customer deposits.’’(Bologna, 2011)

‘’Nobody is allowed to solicit deposits on behalf of Non Banking Financial Companies

(NBFCs) by publishing a prospectus or advertisement or through any other manner unless he
is authorized in writing to do so and the advertisement/prospectus conforms to the Reserve
Bank of India (RBI) stipulations and the other provision of law.’’ (Khan, 1997)
‘’Since commercial banks depends on depositor’s money as a source of funds, it means that
there are some relationships between the ability of the banks to mobilize deposits and the
amount of credit granted to the customers.’’ (Szczesmy & Schenk, 2000)

1.3 Statement of the problem

If bank resorts less deposits funding and reply more on open market funding, this is widely
seen as negative for financial stability. Research problem may be stated in the form of
following questions:
 What is the deposit trend of NMB bank?
 What is the position of deposit?
 What is the relationship between deposit and credit?
1.4 Objectives of the study
This study mainly focuses on the following objectives:
 To examine the trend of deposit.
 To identify the position of deposit.
 To find out the relationship between deposit and credit.
1.5 Research methodology
1.5.1 Research design
In this project, descriptive research design is used for analyzing secondary data to obtain
research result on the basis of predetermined objectives of the study.
1.5.2 Data collection method
Secondary data:If a research uses the data developed by others in the past for their own
purpose is known as secondary data.
The majority of the data used in this project report is secondary data. While collecting the
secondary data, the following sources are used.
In the course of preparing field report, different data are collected on the basis
of:
 Websites
 Annual report & Previous research report
 Article

1.5.3 Data Presentation and analysis tools

The collection data will be arranged and presented in proper table and graphs. For
presentation and analysis the data, tables, bar diagrams, trend line, average and percentage
will be used.
1.6 Limitation of the study

 This study will cover only the past five year’s data from 2071 to 2076.
 In this study, only selected financial and statistical tools will be used.
 This study is based on secondary data. It doesn’t include the view of customers and
strategies.
 The scope of study is limited to deposit analysis.

1.7 Time allotment

 Topic selection 3 days

 Proposal writing 5 days
 Data collection 10 days
 Data presentation and analysis 15 days
 Preparation of report 7 days
 Setting and printing 5 days
Total 45days

SUBMITTED BY :
LAXMAN KUMAR GUPTA
MAHAKAVI DEVKOTA CAMPUS
BBS 4TH YEAR