Deposit Mix

Analysis Of Everest Bank Limited.

A Project Work Report

By
Asmita Karki
T.U. Registration No. 7-2-282-12-2016
Symbol No. 2820035
St.Xavier’s College

Submitted To
The Faculty Of Management
Tribhuvan University
Kathmandu

In Partial Fulfillment Of The Requirement For The Degree Of

Bachelor Of Business Studies (BBS)

Maitighar, Kathmandu
Jan,2021
 DECLARATION

I hereby declare that the project work entitled “DEPOSIT MIX ANALYSIS OF EVEREST
BANK LIMITED” submitted to the faculty of management, Tribhuvan University,
Kathmandu is an original piece of work under the supervision of Dr. Urmila Shrestha, faculty
member, St. Xavier’s College, Maitighar, Kathmandu and is submitted in partial fulfillment
of the requirement of the award of the degree of the bachelors of business studies (BBS). This
project work report has not been submitted to any other university or the institution or the
award of any degree or diploma.

_________________

Asmita Karki

Jan, 2021

ii
 Supervisor’s Recommendation

The project work report entitled “Deposit Mix Analysis Of Everest Bank Limited” submitted
by Asmita karki of St. Xavier’s College, Maitighar is prepared under my supervision as per
the procedure and format requirements laid by the Faculty of Management, Tribhuvan
University, as partial fulfillment of the requirements for the degree of Bachelor of Business
Studies (BBS). I, therefore, recommend the project work report for evaluation.

Dr. Urmila Shrestha

Date: January 19, 2021

iii
 Endorsement

We hereby endorse the project work report entitled “Deposit Mix Analysis Of Everest Bank
Limited” submitted by Asmita karki of St. Xavier’s College, Maitighar, in partial fulfillment
of the requirements for the degree of the Bachelor of Business Studies (BBS) for external
evaluation.

Maha Prasad Shrestha Fr. Augustine Thomas, S.J.(PhD)

Research Head Principal

Date:
 iv

ACKNOWLEDGEMENT

This report is possible only because of the motivation and decent support of various persons
whom I shall always remain appreciative. I would like to express my profound appreciation
to all those who directly or indirectly made this report possible. Mr. Bijay Thapa who gave
me important information which was necessary for analysis and also provided me with
feedback which helped me a lot in preparing the report, his assistance is gratefully
acknowledged. Without his kind supervision, preparing this report would have been very
difficult.

I would like to express my earnest thanks to my academic supervisor Ms. Urmila Shrestha,
St. Xavier's College, who dedicated her precious time from his busy schedule to guide and
help me at all times. It is under her treasured supervision, endless importance and inspiration
that I have been able to complete this report. I take this opportunity to thank my friends for
their valuable suggestions for the betterment of the report and my parents for encouraging me
throughout my life whatever the circumstances were, their blessings were always with me.

Thank You,

Asmita Karki
 v

Table of Contents

Title Page……………………………………………………………………………………….……….i
Declaration…………………………………………………………………………………………..….ii
Supervisor’s Recommendation………………………………………………………………….……..iii
Endorsement……………………………………………………..…………………………………….iv
Acknowledgement…………....………………………………………………………………………...v
Table of Contents………………………………...…………………………………………………….vi
List of Table……………………………………………...…………………………………..vii
List of Figures………………………………………………………………………....…….viii
Abbreviations……………………………………………………………….………………...ix
Chapter I : Introduction 1
Background…………………………………………………………………….1
Profile Of Organization………………………………………………………. …....5
Objectives ………………………………………………………………….. 5
Rationale……....………………………………………………………………..6
Review ……..…………………………………………………………………...6
Methods …...………………………………………………………………….7
Limitations……….……………………………………………………………..8
Chapter II: Analysis And Results …………………………………………….9
Data presentation…………...…………....…...…………………….………….9
Result Analysis………………………...…….……………………………….10
Major findings……..………………………………………………………... 22
Chapter III : Summary and conclusion…………………………………….23
Summary ……………….………………………..……………………..23
Conclusion…….………… ………………………..………….….………..24
Bibliography……………………………………………………………………...….... …...25
Appendices…………………………………………...……………………………………...26
 vi

List Of Tables

able No. Name of Tables Page No.

2.1 Total Deposits 9

2.2 Deposit Composition 11

2.3 Saving Deposit To Total Deposit Ratio 12

2.4 Current Deposit To Total Deposit Ratio 13

2.5 Fixed Deposit To Current Deposit Ratio 15

2.6 Cash Balance To Total Deposit 16

vii
 List Of Figures

Figure No. Name of Figure Page No.

2.1 Relative Increase of total Deposit 10

2.2 Percentage of saving Deposit 12

2.3 Percentage of current Deposit 14

viii
 1

Chapter I : Introduction

Background
A deposit refers to an amount of money in cash or checks form or sent via wire transfer that
is placed into the bank account. It is the main source of resources to meet the growing
demand of financial assistance. Higher the volume of deposit, higher will be the volume of
investment, which results in profit maximization. In december 2020, it was record that the
total funds deposited in Nepal was approximately 28.322 USD bn ,even though the economy
of the country was down due to the coronavirus pandemic (Nepal Total Deposits | Economic
Indicators, 2021). The same statistics source that the deposit in december 2020 was even
more than december 2018 and december 2019.The existence of commercial banks basically
depends upon the mobilization of deposits. The distribution of total deposits under various
types of deposit products and their share in total deposit is called deposit mix. Therefore,
deposit mix plays a vital role in deciding profitability of the banks. 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.

Banks need deposits like raw materials in the production process. Deposit accounts are also
one of the important sources to accumulate this raw material i.e banks' funds. In order to
attract customers, the banks offer attractive facilities to different types of deposits account
holders. Deposit facilities in the banks have played a vital role to avoid miniature expenses of
our daily life. Banks have also been providing sound interests because of the hard global
competition.

Banks are providing different types of deposit accounts to the general public considering their
different financial status and needs. There are three major types of banking accounts
commonly prevalent in Nepal i.e current, savings and term (Bank account:Meaning and
types, n.d.) . Except these other banking deposit accounts include recurring deposit, time
 2

deposit, fixed deposit. This study is concentrating only upon the three major accounts types
discussed below.

1. Current Deposit
2. Saving Deposits
3. Term Deposits

Current Deposit
Current deposit account refers to such an account opened by the depositor in which he
can deposit any amount any time and also withdraw any amount any time as required.
The account holder can deposit and withdraw any amount of money at one instance in
several installments. Such an account is very useful for traders who require to deposit or
withdraw money very frequently. Money in a current deposit account can be deposited for
a short period or long period without any restriction. Due to the liquidity on the deposits
provided by the bank, generally very low or no interest is given to the depositor; In fact
the bank could be changing some incidental change from the customers for the services
rendered. The minimum amount of money required to open such an account is other
formalities to be fulfilled depending upon the rules and regulations of the individual
required even several times in one day through cheques. The current deposit account is
also known as 'Demand Deposit' or 'Demand Liabilities'.

Saving Deposit
Depositors can deposit any amount of money in their saving deposit account but there are
certain restrictions in withdrawal of money. If the depositor needs to withdraw a high
amount, he is required to inform the bank authorities in advance. If his withdrawal
exceeds the specified limit and does not even intimate the bank in advance, he will have
to forgo his interest earning for the concerned month. The depositor is given a cheques
facility. Presently the rate of interest offered by commercial banks in Nepal on saving
deposit account is 2 to 3 % p.a.; however, the individual bankers are always free to offer
high rates. Such saving accounts greatly encourage capital formation in the country.
 3

Term Deposit
This account scheme allows a customer to earn a higher rate of interest for those amounts,
which a customer is confident that he will not require the amount for a certain period. The
scheme offers a higher rate of interest than savings accounts. The interest rates vary with
the period for which amount is kept in fixed deposit. The interest rates vary from time to
time.

Profile of Everest Bank Limited

Everest bank limited (EBL) started its operations in 1994 with a view and objectives of
extending professionalized and efficient banking to various segments of the society. This
bank is providing customer friendly services through its branch network. All its branches are
connected through Anywhere Branch Banking System (ABBS) which enables customers for
operational transactions from any branches. The bank has 100 branches, 135 ATM counters,
31 revenue collection counters across the country making it a very efficient and accessible
bank for its customers, anytime, anywhere. Catering to more than 10 lacs customers today,
Everest Bank Limited has been one of the leading bank with professionalized & efficient
banking services. With clients from all walks of life, the Bank has helped the nation to
develop corporately, agriculturally & industrially. (Profile - Everest Bank, n.d.)

Punjab National Bank (PNB) is the joint venture partner holding 20% equity in the bank is
the largest nationalized bank in India with its presence virtually in all the important centers at
India, PNB offers a wide variety of banking services which include corporate bond and
personal banking, industrial finance, agricultural finance, financing of trade and international
banking. For its excellence in banking service it was awarded the “Best Bank Award
2011”amongst all banks in India by the leading magazine, Business India. Recently, PNB
was awarded with “IDRBT Banking Technology Excellence Award” under Customer
Management & Intelligence Initiatives. The Bank also bagged the “Golden Peacock Business
 4

Excellence Award 2013” by Institute of Directors. Similarly, the Bank was recognized as
‘Best Public Sector Bank’ by CNBC TV 18. The bank has now more than 7,000 branches and
8,500 ATMs spread all across India. As a joint-venture partner, PNB has been providing top
management support to EBL under Technical Service Agreement. (Profile - Everest Bank,
n.d.)

The bank has been conferred with “ Bank of the year 2006, Nepal” by the Banker, a
publication of financial times, London. The bank was bestowed with the “NICCI Excellence
Award” by Nepal India chamber of commerce for its spectacular performance under the
finance sector.

EBL was one of the first banks to introduce ABBS in Nepal. EBL introduced Mobile vehicle
banking system to serve the segment deprived of proper banking facilities through its
Birtamod Branch, which was the first of its kind. The first bank that has launched the e-
ticketing system in Nepal where customers can buy yeti airlines ticket through internet.
Recognizing the value of offering a complete range of services, EBL have pioneered in
extending various customer friendly products such as Home Loan, Education Loan, EBL
flexi loan EBL property plus (Future Lease Rental) , Home Equity Loan, Vehicle Loan, Loan
against Life Insurance policy And Loan For Professionals.

Despite the circular of NRB, the central bank of the country, regarding compulsory
investment of 10% of their total investment in the rural areas, these banks are inclined to pay
fines rather than investing these resources to such less profitable sectors. There is no debate
that a highly profitable or successful organization can easily fulfill the needs of the
organization, customers and can serve the society. To improve the profitability situation of
the bank, it is necessary to increase the deposits in the bank. Thus, the issues of cash or
deposit management is the major strategy of every commercial bank. Due to competition
among various banks, the interest rate for deposits is on an increasing trend.
 5

Vision Of Everest Bank Limited

EBL is amongst one of the leading banks in the country. From 1994 till 2020 , the bank has
faced various hurdles and overcome the hurdles to secure such prestige for the company. This
is all because of the vision that the company incorporates along with their daily
administration. The vision that the company incorporates is, “To be a Leading Commercial
Bank with Pan Nepal presence and become a household name, providing a wide range of
financial products and services under one roof.”

Mission of Everest Bank

The mission of EBL is to strategically improve the company’s base and to achieve the vision
that the company has incorporated . EBL has made various efforts to achieve this vision of
the company but the main mission that the company has declared is , “Growth through
Banking for ALL”. The bank is also working really hard to fulfill the mission the bank has
taken.

Thus, to know the deposits of the bank are in increasing or decreasing trend , Everest
Bank limited is selected as a sample.

Objective of the study

There is no doubt that commercial banks are the heart of the nation who mobilize and utilize
scattered resources. The main purpose of the study is to analyze, examine, and interpret the
deposit mix of Everest Bank Limited.
 6

Moreover, the study has specified the following objectives.

● To find out the share of fixed, current and saving Deposit out of the total deposit.
● To find out the total deposit trend of the public.
● To find the composition of Deposit in EBL.
● To know whether different kinds of deposit are in increasing or decreasing trends.

Rationale of The Study

In this changing pace of time, most of the commercial banks are gaining a wide popularity
through their efficient management and professional services and playing a great role in the
economy. The main purpose of the commercial bank is to have effective analysis of finance
so that stakeholders get satisfactory. This study adds new ideas and findings about the
concerned bank.

This study is helpful for all the concerned parties which add new ideas and findings about the
Everest Bank Limited. The studies that will have importance to various groups but in
particular is directed to a certain group of people /organizations are:

● Important to the shareholders

● Important to financial agencies, stock exchange and stock traders.
● Important to the interested outsides parties like Investors, Competitors, personnel of
the banks, dealers and market makers.
● Important to macro level policy makers like the government and NRB

● Important to the management of Everest Bank Limited for self assessment of what
they have done in past and guide them in their future plans and program.

Review of Literature
 7

The review of the literature is a critical aspect because it denotes planning of the study. The
main purpose of the literature review is to find out what works have been done in the area of
research problem under the study and what has not been done in the field of books, reports,
journals and research studies published by the various institution unpublished dissertations
submitted by master (panta,2015)

Bajracharya (2017), in his article “monetary policy and deposit mobilization in Nepal” Has
conducted that mobilization of the domestic saving is one of the prime objectives of the
monetary policy in Nepal and commercial banks are the most active financial intermediary
for generating resources in the form of deposit of private sector and providing credit to the
investors in different sectors of the economy. The review of textbook and other reference
materials such as: Newspaper, Magazines, Research Articles Journals and Past thesis have
been included in this topic.

Research method

Research is a systematic method to find out the solution to a problem whereas research
methodology refers to various sequential steps to be adopted by a research in studying a
problem with certain objectives in view. In other words, research methodology describes the
methods, techniques and processes applied in the entire aspects of the study. It is a sequential
procedure and method to be adopted in a systematic study. (Adhikari, 2017)

It is the heart of the project that provides the work plan and describes the activities
undertaken for the completion of the project. This project uses both financial and statistical
tool for detail analyses on the project and it includes:

a) Research Design
b) Data Collection
c) Data Analysis Tools

Research Design
Research design is a master plan specifying the methods and procedures for collecting and
analyzing the needed information. This serves as the framework for the study, guiding the
 8

collection and analysis of data, the research instruments to be utilized, and the sampling plan
to be followed. Here, this study is concerned with the deposit mix of Everest Bank Limited.
For the study, descriptive and analytical research methodology is used. Those methodologies
involve gathering data that describes events and then organizes, tabulates, depicts and
describes the data collection that reduce the data to manageable form.

Data Collection Procedure

No matter what the basic design of a research study, it is necessary to collect accurate data to
achieve useful results. For this reason, it is helpful to consider various sources of collecting
data and the quality of information they produce. So , two sources of data collection
techniques have been used, that are:

a) Primary Data
b) Secondary Data

Primary Data
Primary data is the original data, which is collected for the first time. I have used primary
source i.e. Interviews, questionnaires and observations to collect the primary data on EBL.

Secondary Data
Secondary data refers to the data that has been already gathered by other researchers. I have
used secondary sources too, i.e. books, periodicals, published reports, data services through
 9

which data were collected. Besides them data was collected from publication of NEPSE,
Financial statements of EBL and Bank’s website, and from SEBO.

Limitations
● This study mainly focuses only on the deposit of Everest Bank Ltd. Therefore,
Overall position of EBL cannot be judged by this report.
● Due to time and cost constraints, it cannot cover all the dimensions of the subjects
matter.
● This study has covered only 4 financial years from 2072 to 2077 B.S.
● Validity of this report fully depends upon the information provided by concerned
authorities.
● Some of the data used are of secondary type, which is available from banks and other
sources of books.
● This study is conducted only for suggestion not for directing.

Chapter II: Analysis And Results

Data analysis is the process of developing answers to questions through the examination and
interpretation of data. Its purpose is to change the data from an unprocessed form to an
understandable presentation/result.

In this chapter, total deposit, deposit composition, saving to total deposit ratio, current deposit
to total deposit ratio, fixed deposit to total deposit ratio and cash balance to total deposit ratio
is presented to evaluate deposit mix of EBL. This chapter first explains methods of
organizing data by tabulation and then placing that data in presentable form by using figures
and tables.

Total Deposit Trend

Total deposit refers to the total amount of deposit public collected by the bank under different
accounts. It is essential to evaluate the overall performance of a bank
 10

Total deposit Of Everest Bank

Fiscal Year Total Deposit of EBL Change In%

(Rs in Crores)

2072/73 608.75 -

2073/74 9409.18 41.83

2074/75 11551.18 22.77

2075/76 13017.74 11.81

2076/77 14472.83 11.18

Table-2.1 (source- annual Report Of EBL 2072-2077B.S)

F.g 2.1: The relative increase of total deposit(%) in comparison to last fiscal year.

In the above table we can see that the total deposit of EBL is in increasing order. In 2072/73
there were only 609 crores of deposit. In 2073/74 the amount of deposit was increased by
41.83% which is Rs.9409 crores. Then, the deposit in 2074/75 was Rs.11551 crores which
shows that it was increased by 22.77%. After that, the deposit in 2075/76 reached to 13018
 11

crores which means an increase by 11.81%. Finally, in 2076/77 the deposit is 14473 crores
i.e. 11.18% increase that the previous year. This table shows the consistent progress of the
bank.

Deposit Composition Of Everest Bank Limited

Deposit composition of EBL is composed of Current, Margin, Saving, Fixed, Call and Other
deposits. It has been presented in the following table:

(amount in crore)

Types Of 2072/73 2073/74 2074/75 2075/76 2076/77

Deposit↓

Current 8630 8868 9395 9494 11123

Margin 874 1067 1394 1051 1001

Saving 38650 35556 38539 42892 47392

Fixed 26000 36312 54064 34756 72875

Call 19425 13144 11461 13041 10432

Others 159 149 659 639 728

Total 93738 95095 115512 101873 143551

Table- 2.2 (source annual Report of EBL 2072 to 2077 B.S)

From the above table we can see the position of different deposits of EBL. We can
clearly see that the saving deposit is in increasing trend from fiscal year 2072/73 to
2074/75 but it has decreased in fiscal year 2075/76. And again in fiscal year 2076/77
 12

the deposit amount has increased. Current deposit on other hand is on an increasing
trend in every fiscal year.

Saving Deposit To Total Deposit Ratio

It is calculated to find out the proportion of saving deposit with respect to total
deposit . It can be calculated by the following formula:
(Saving Deposit/ total Deposit)*100

Saving deposit to total deposit ratio (amount in crore)

Fiscal year Saving deposit Total deposit % of saving deposit

2072/73 38650 93738 41.24

2073/74 35556 95095 37.39

2074/75 38539 115512 33.37

2075/76 42892 101873 42.11

2076/77 47392 143551 33.02

Table 2.3 (source annual Report of EBL 2072 to 2077 BS)

 13

F.g 2.2: Pie chart of percentage of saving deposit from total deposit in different fiscal year.

The above table, chart shows the composition of saving deposits to total deposits. It shows
the decreasing trend of saving deposits from the fiscal year 2072/73 to 2073/74 and In the
fiscal year 2074/75 to 2076/77 there is the increment in the trend of saving deposits.

Current Deposits To Total Deposit Ratio

It is calculated to find out the proportion of current deposit with respect to total deposits. It
can be calculated by the following formula:
(Current Deposit / Total deposit) * 100

Current deposit to total deposit ratio ( amount in crore)

Fiscal Year Current Deposit Total deposit % Of Current Deposit

2072/73 8630 93738 9.21

2073/74 8868 95095 9.36

 14

2074/75 9395 115512 8.14

2075/76 9494 101873 9.32

2076/77 11123 143551 7.75

Table 4(source annual report of EBL 2072 to 2077 BS)

F.g 2.3: Pie chart showing percentage of current deposit from total deposit in
different fiscal year.

The above table and chart shows the change in current deposit amount in respect to
total deposit. In the fiscal year 2072/73 the percentage of current deposit to total
deposit was 9.21% which was increased to 9.36 in the year 2073/74 but the trend
decreased to 8.14 in the year 2074/75 i.e 8.14%. Again the percentage rises to 9.32 in
the year 2075/76 where in 2076/77 it again falls to 7.75 %. Therefore current deposits
have been steadily decreasing due to the diversion of current accounts to other
accounts.
 15

Fixed Deposit To Total Deposit Ratio

It is calculated to find out the proportion of fixed deposits with respect to the total deposits.
It can be calculated by the following formula:
(Fixed Deposit/Total Deposit) *100

Fixed Deposit to total deposit ratio ( amount in crore)

Fiscal Year Fixed Deposit Total Deposit % of fixed Deposit

2072/73 26000 93738 27.74

2073/74 36312 95095 38.19

2074/75 54064 115512 46.81

2075/76 34756 101873 34.12

2076/77 72875 143551 50.77

Table 2.5 ( source annual report of EBL 2072 to 2077 B.S)

In the above table , we can see the percentage of fixed deposit to the total deposit was
27.74 and 38.19 in 2072/73 and 2073/74 which increased to 46.81 and decreased to
34.12 in the fiscal year 2074/75 and 2075/76 respectively. Again we can see it
increased in 20776/77 which was 50.77% of the total deposit. It shows the increasing
volume of fixed deposits during last fiscal year’s which is due to an increase in
interest rate.

Cash Balance To Total Deposit Ratio

Cash balance consists of cash on hand, foreign cash on hand, cheques and other cash items
which represents the greater ability to meet the deposits. The ratio can be calculated by the
following formula:
( Cash Balance/ Total deposit ) *100
 16

Cash balance to total deposit ratio ( amount in crore)

Fiscal Year Cash balance Total deposit Percentage

2072/73 2515 93738 2.68

2073/74 3060 95095 3.22

2074/75 10066 11512 87.44

2075/76 7760 101873 8.17

2076/77 9647 143551 10.29

Table 2.6 (source annual report of EBL 2072 to 2077 BS)

From the above table, we can see cash and cash related balances in the fiscal year
2072/73, 2073/74 and 2074/75 were increasing trends which were 2.68%, 3.22% and
87.44 % of the total deposit respectively. But in the year 2075/76 it declined and
reached 8.17 % of the total deposit. Again in 20776/77 it increased to 10.29% of the
total deposit. From this analysis it can be concluded that cash and and cash related
balances of the Everest bank is in declining state. For further increment of the cash,
Ebl can invest in productive sectors like short term marketable security treasury bills
etc.
 17

Mathematical analysis

In this report , various accounting financial and statistical tools have been used to analyze the
collected data and interpret the results obtained.

The various tools used are-

● Arithmetic Mean
● Standard Deviation
● Coefficient of Variation

Arithmetic Mean
This statistical tool is used in this study to find the arithmetic average of the variable.
Arithmetic Mean is the figure we get when the total of all the values in a distribution is
divided by the numbers of values in the distribution. It is used in this study to calculate the
average value of current, saving, and fixed deposit and interpret it.

Mathematically,
__
X = ∑X / N

where ,
__
X = Mean
∑X =total of all observations
N = total number of observation
 18

Standard deviation

Standard Deviation is often powerful and helpful measures of dispersion. It is the

positive square root of the average of the deviations of the measurement from their
means. It is denoted by ‘ σ ’. It is used in this study to measure the size of deviation of
the current , fixed and saving deposit from the average.

Mathematically,

Standard deviation (σ) =

Coefficient of variation

It is a relative measure of dispersion based on the standard deviation. In order to

compare the variability between two sets of data, coefficient of variation can be used
as a useful method. In this study it is used to find the variation of the current fixed and
saving deposit.

Mathematically,
 19

Coefficient of variation (CV)= σ÷μ

Calculation of mean, SD , and CV OF saving deposit (amount in Billion)

__ 2
YEAR X (X - X )

2072/73 39 13456

2073/74 36 28561

2074/75 39 13456

2075/76 43 26244

2076/77 48 24649

Total 205 106366

Where,
X = saving deposits in billion

__
X = ∑X / N
= 205/5
= 41

σ =

=√ ❑

= 18.33

CV = σ÷μ
 20

= 18.33/41
=0.44

Calculation of mean, SD and Cv of fixed Deposit (amount in billion)

__ 2
Year X (X - X )

2072/73 26 345.96

2073/74 37 57.76

2074/75 54 88.36

2075/76 34 112.36

2076/77 72 750.76

Total 223 1275.2

Where, X = fixed deposits in billion

__
X = ∑X / N
= 223/ 5
= 44.6

σ =

=√ ❑
= 15.97

CV = σ÷μ
= 570.29/44.6
= 12.79
 21

Calculation of mean sd and cv of current deposit ( amount in billion)

__ 2
Year X (X - X )

2072/73 9 1

2073/74 9 1

2074/75 10 0

2075/76 10 0

2076/77 12 4

Total 50 6

Where, X = current deposits in billion

__
X = ∑X / N

= 50/ 5
= 10

σ =

=√ ❑

= 2.69

CV = σ÷μ

= 2.69/10
= 0.27
 22

Major findings
The major findings of the study which covers a period of 5 years (2072- 2077 BS) are as
follows :
● The average deposit of the saving, fixed and current account from 2072 to 2077 are
41, 44.6 and 10 respectively. It shows in an average deposit, deposit in fixed account
is higher than in another account.
● The standard deviation of the saving, fixed and current account from 2072 to 2077
are 18.33, 15.97 and 2.69 respectively which shows the higher deviation in current
account.
● The coefficient of variation of saving, current and fixed account from 2072 to 2077 is
0.44, 0.27 and 12.79. It shows that there is greater variation in fixed accounts and less
variation in current accounts.
● Therefore, there is uniform and consistent deposit in the current account.

Chapter III : Summary and conclusion

This report mainly concerns the principal objectives to comply with assessment required for
the degree of BBs 4th year of tribhuvan university. EBL is one of the successful banks which
started its operation with an objective of providing excellent professional services and
improves its positions as a leader in the field of financial related services. This bank is a joint
venture partner with Punjab National Bank (PNB) of india. EBL has achieved so much
success in the way of its operation.
 23

Everest Bank Mainly collects the deposit under the account of fixed, saving , current and
others. They are the main source of raising capital for banks. According to the latest data of
2076/77 of EBL, the total deposit is Rs.143551 crore. Among the total Deposit , the current
deposit is Rs 11123 crore i.e. 7.75% of the total deposit whereas saving deposit is 47392 i.e.
33.02% of the total deposit. But fixed deposit is Rs. 72875 crore i.e. 50.77 % of the total
deposit. This shows that the fixed deposit occupies the larger portion.

EBL is at consistent progress over five years which can be known by the increase in deposit
every year. Due to its improvement, it is gradually expanding its branches. IN the same way,
the bank has been facing various challenges that has raised in the market and has been able
to give the best performance in the market.

Conclusion
● In this way we can conclude that the trend analysis of EBL shows that the deposit of
EBL is in increasing trend. This shows that there is consistent progress of the bank.
● In this research, we found that the share of fixed deposit is more than that of saving,
current, margin,call and other deposits in EBL.While conducting this study it was
found that the saving deposit was decreased in the fiscal year 2073/74 and 2074/75
which where 37.39 and 33.37 % respectively. And it was increased in the fiscal year
2075/76 which was 42.11 % but again in the fiscal year 2076/77 it decreased to
33.02%. This shows the decreasing trend of the saving deposit in EBL.
● The study has concluded that the fixed deposit was increased in the fiscal year
2073/74 and 2074/75 by 38.19% and 46.81 % respectively. But It Decreased by 34.12
 24

% and again in the fiscal year 2076/77 the fixed deposit increased by50.77%. So it's
clear that the fixed deposit of EBL is in increasing trend.
● While conducting this study it was found that the current deposit was increased in the
fiscal year 2073/74 by 9.36% but it decreased in the year 2074/75 by 8.14 %. After
that it gradually increases in 2075/76 by 9.32 % and decreases to 7.75 % in the fiscal
year 2076/77. So we can say that the current deposit is in increasing trend.
● By the analysis of deposit mix we can conclude that the bank is able to utilize its
deposit to a great extent.

Bibliography

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%20240%20observations> [Accessed 3 January 2021].
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