1.

1 Background of the study

Deposit mobilization is the process performed by banks of taking in funds from depositor and
then lending them out to a borrower. It is the first step in the financial intermediaries. Continuous
and adequate deposit mobilization would insure the banks shall be able to sustain its business of
lending and investing.
Deposit mobilization is an effort to collect the unproductive and idle saving that is spread all
over the country in different forms .The mobilization capital can be invested in the productive
and socially desirable sector for the production capacity, employment generation etc.
If deposits mobilized in the urban areas are utilized for development of small and cottage
industries in the respective areas, the employment opportunities, income potentials and
production prospects in those areas would bear concrete results.
Banks accepts money on current accounts, fixed deposit accounts & saving accounts. Deposits
are the main sources of capital for the lending activities of the banks. Banks utilized efficiencies
to attract more deposits to increases credit activities. Deposits are withdrawn able according to
the contract with the depositors. Current deposits are withdrawal on the demand of the
customers. Banks have to make them ready to pay the depositors at hand to pay according to the
wise of the customer. If the bank cannot pay the customer according to the demand, the
reputation of the Bank may fall or the banking activities may fail.
Saving account is another type of deposit. There is restriction in the account to withdraw any
amount, for eg. Minimum current balance is Rs.15, 000/- the minimum saving balance is
50,000/-.The customer is restricted to withdrawal in limited in such a/c, in each transaction, the
bank is provided with more funds for the credit activities.
The Monetary policy policy of Nepal 2075/2076 is the expansionary monetary policy. Nepal
Rastra Bank has decrease CRR to 4% and the bank rate 6.5 %. Such as attempt by the NRB will
increase the liquidity in the economy and consequently decrease the interest rates. There exit the
tradeoff between economic growth and price stability. The monetary policy of Nepal 2075-76
has focused on achieving their economic growth, so the economy must put up with rising prices
or inflationary pressures.The third source of deposit the fixed deposit account. The deposit a/c
can be redeemed after the expiry of the time as per contract term of the deposit. Therefore, such
deposit is the significance sources for the credit activities of the bank.
1.2 Profile of Himalayan Bank Limited
Himalayan Bank Limited, one of the predominant commercial bank of Nepal, which was
established in Nepal on January 18, 1993 under the commercial bank act 2013 and companies act
2021 to develop industry, trade, commerce and the total economy in aggregate. Himalayan Bank
Limited established by the distinguished business personalities of Nepal in partnership with
employee provident fund and Habib Bank Ltd. one of the largest commercial bank of Pakistan. It
is the first commercial bank of Nepal with maximum shareholder by the Nepalese private sector.
Beside commercial activities, the bank also industrial and merchant bank. Himalayan Bank is to
extend quality service to its valued customers as promptly as possible. All customers are treated
with utmost courtesy as valid clients. Personalized services are being provided to all clients. To
extend more efficient services to it’s customers. Himalayan Bank has adopted innovation and
latest banking technology. Such as credit card, Tele banking, automation, teller machine, visit
card, gold card etc.
Functions of HBL
The HBL does most of the commercial banking functions such as accepts deposits, invests
money, advances loans, collects bill, provide guarantee, borrows money, issues letter of credit,
remits money, exchanges currency, etc. Besides these, HBL has been a pioneer in introducing
Nepalese domestic credit card and HBL gold card with additional privileges. The bank is also a
member of VISA and MASTERCARD international. Telebanking is HBL next widely accepted
service because of which HBL has been able to provide prompt and efficient service to its
customers. Automatic teller machine is another 24 hours working station of this bank. HBL
provides any branch banking service. It enables to make certain operations like withdrawal and
deposit of cash and cheques from any of the HBL branches. Costumers maintaining an account
with any of the branches of HBL can walk in to any of the other branches convenient to them for
operation of the account which they are not restricted to a particular branch to operate that
account.
1.3 Objectives
HBL is one of the predominant banks of Nepal. It has not only the good impression among
Nepalese but also it had made in the pace of development of socio-economic environment of the
state. The field study report on "Deposit mobilization and loan advancement of HBL" has chosen
in order to clarify the present situation of this bank and to know personally about its operation in
the advancement and contribution in the national economy through its banking operations like
deposit mobilizations loans and advancements.
 To analyze the data of deposit, loan and advances of this
 To analyze the effectiveness of deposit mobilization.
 To analyze the financial performance of HBL.
1.4Rationale
Each and every study we made is important. The study researcher conducted on deposit too is
important from various aspects the study that comes to some exact conclusion can be said as
science and researcher proud that researcher also conducted a scientific working in study even
researcher is a student of management.
a. It helps in enhancing our mind and assists the study of banking and insurance of BBS final
year.
b. If properly and systematically made it can be the assets of library.
c. In some extent it may help other researchers.
d. The bank itself can be benefited if ideas, suggestions and opinions are applicable.
e. Connects students directly with the banks.
1.5 Review
The previous study materials books and research reports related to current research issues as
literature. The study of previous research works and books with the purpose of knowing the
research issue in detail and find out appropriate methodology is literature review. The purpose of
this literature review is to get acquainted with what has been accomplished in the concerned
subject matter and what is yet to be accomplished. It provides direction for doing something new
with appropriate variables and methodology.
Types of Deposits
Saving Deposit: The saving deposit is a transactional interest bearing accounts where a deposit
is collected for an unspecified period of time and depositors can withdraw or transfer cash
whenever they wants. Saving deposit always bears the interest after the certain period of time the
depositor can withdraw the saving money as well as they can transfer their amount.
Current Deposit: The deposit is a transactional non- interest bearing account where a deposit is
collected for unspecified period of time and they can withdraw or transfer funds whenever they
want. The current account allows the account holder to carry out the business transactions in an
efficient manner.
Fixed Deposit : The fixed deposit is an interesting bearing account where the fixed amount is
deposited for certain period of time and for this they will get the interest and the principal
amount at a fixed future date at a time of placement of the deposit.
Review of Previous Works
This report writing has been prepared with the help of the information obtained from the
www.himalayanbank.com. The information are the associates with Himalayan bank, the
information related to Himalayan bank services, the commerce associates and the individuals
involved in the business. All of the data related information is taken from the Annual Report
made by Himalayan bank during various time intervals. The researcher had considered the data
of last 5 years. In addition to these, the newsletters issued quarterly by Himalayan bank also
provide some necessary information about the seminars and workshops conducted by Himalyan
bank to promote this field.
Therefore, the researcher effort is to analyze and present the data upto 2018/2019 with the full
annual report, which will help to show the clear picture of the Himalyan Bank. In order to
analyze and present status of Himalyan Bank in Nepal. An attempt is made here to review the
research works submitted are as follows:
1.6 Research Methodology
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by researcher in studying his research problem along with the
logic behind them. The various objectives of this chapter are to show the financial relations from
which liquidity, structure of working capital and utilization of working capital of the factory can
be measured.
The study about selected listed manufacturing companies in Nepal has been already streamlined
to some extent in earlier chapter regarding their growth, objective, statement of problem, relevant
literature of concerning manufacture in companies have been reviewed in second chapter. This
chapter, the focus has been made on research design, nature of data, population and sample,
source of data, data collection techniques and tools used for data analysis.
1.7 Limitations
Although an extent have been made to measure the deposit management of HBL to the extent
possibilities. The study is entitled in some limitations:
a. Lack of adequate time so not able to reach the depth of study.
b. Limited sample information and data and examines only one topic- Deposit Mobilization.
c. Not availability of plentiful literature on the subject has handicapped the study of extent.
d. As the financial report of fiscal year is not available in the website of HBL. Only the data up
tools use.
e. This report is only for the academic purpose.
f. This report is not use in the specific area just for the academic purpose.