A case study on fixed deposit of Nepal credit and commerce bank

limited

A project work report

By
Ashim Somai Magar

Exam Roll n.: 707440006

T.U. Registration no.: 7-2-744-0008-2017

Somnath Baba Campus

Submitted to

The faculty of management

Tribhuvan University

Kathmandu

In partial fulfillment of the requirement for the degree of

Bachelor of Business Studied (BBS)

Sunwal-1, Nawalparasi

2078
 Declaration

I hereby declare that the project work entitled “A CASE OF STUDY OF FIXED DEPOSIT OF NCC
BANK LTD” submitted the faculty of Management, Tribhuvan University, Kathmandu is an
original piece of work under the supervision of Mr. Bikash Acharya, faculty Member, Somnath
Baba Campus, Sunwal-1, Nawalparasi and is submitted in partial fulfillment of the requirements
for the award of the degree of Bachelor of Business Studied (BBS). This project works report has
not been submitted to any other university or institution for the award of any degree or
diploma.

Signature:

Ashim Somai Magar

Date:

i
 RECOMMENDATION

The project work entitled “A CASE STUDY ON FIXED DEPOSIT OF NCC BANK LIMITED.”
Submitted by Ashim Somai Magar of Somnath Baba Campus, Sunwal-1, Nawalparasi. is
prepared under my supervision as per the procedure and format requirement laid by the
Faculty of Management, Tribhuwan University, as partial fulfillment of the requirements for the
award of the degree of Bachelor of Business Studies (BBS). I, therefore, recommend the project
work report for evaluation.

Signature:

Bikash Acharya

Somnath Baba Campus

Date:

ii
 ENDORSEMENT

We hereby endorse the project work report entitled “A CASE ON STUDY OF FIXED DEPOSIT OF
NCC BANK LTD.” submitted by Ashim Somai Magar of Somnath Baba Campus, Sunwal-4,
Nawalparasi in partial fulfillment of the requirements for award of the Bachelor of Business
Studies (BBS) for external evaluation.

Signature: Signature

Mr. Bikash Acharya Mr. Thaman Sherchan

Management Research Committee Somnath Baba Campus

Date: Date:

iii
 Abstract

The project work entitled “A Case Study On Fixed Deposit Of NCC Bank Ltd.” submitted by
Ashim Somai Magar of Somnath Baba Campus, Sunwal-1, Nawalparasi. The main theme of this
study is analyzing fixed deposit of the Nepal Credit & Commerce Bank Ltd. The analysis of
strength and weakness is necessary and relative tools are applied such as fixed deposit ratio to
support the study. The other purpose of this study is to analyze interest structure of Fixed
Deposit account at different of time of the NCC Bank and to find out the contribution of fixed
deposit on net income.

For preparing report descriptive and analytical research is used data are collected from only
secondary method. I have used the Published audited Financial Statement of Five Year of the
NCC Bank Ltd. Besides, I have consulted. Last year’s report of NCC Bank ltd. and gathered
necessary information. This study uses the financial tools: Ratio of Fixed Deposit in Total
Deposit, Contribution of Fixed Deposit on Net Income and the Statistical Tools: trend line, bar
diagram.

After Calculating, analyzing and interpreting the annual financial statement of NCC Bank I have
come to the conclusion that Banks fixed deposit position and ratio is increasing trend shows the
bank should maintain it. Bank’s contribution of fixed deposit and net income is quite good so
the bank invests on deposit collection sector, bank must give its best efforts to increase the
amount of fixed and the duration of fixed deposit by providing attractive service to its
customer. The correlation coefficient between fixed deposit and net income is positive.

Keywords: annual financial statement, income,

 iv

ACKNOWLWDGEMENT

This project work report has been prepared in accordance with partial fulfillment of the
requirement for the degree of BBS 4 th year, I would like to decent my heartiest gratitude to all
those who made this possible to prepare this project work report by making available data,
information providing guidance and answering all sorts of my question during my project work
study on “A CASE STUDY ON FIXED DEPOSIT OF NCC BANK LTD.”

So, I would like to extend my gratitude to all those who helped me directly or indirectly to
prepare this report. I would like to gratitude especially to the supervisor Mr Bikash Acharya for
admirable guidelines and precious suggestion and Mr.Thaman Sherchan, Campus Chief of
Somnath Baba campus for his continuous support to my study. I would like to thank my all
respected teachers who had taken orientation class and generated ideas for us.

I would specially like to thank www.nccbank.com.np website for providing data and necessary
information. Last but not least, I would like to thank who typing and setting this reports. I also
express my gratitude to all of my friends as well as librarians who accompanied my project
work.

Thank you!
Ashim Somai Magar

BBS 4th Year

Somnath Baba Campus

Tables of contents

Declaration i

Recommendation ii

Endorsement iii

Abstract iv

Acknowledgment v

Table of Contents vi

List of Table viii

List Figure viii

Abbreviations ix

Chapter-I: INTRODUCTION Page No.

1.1 Background of the Study 1

1.2 Statement of the problem 3

1.3 Objectives of the study 3

1.4 Importance of the study 3

1.5 Organization of the study 4

CHAPTER-II: LITERATURE REVIEW

2.1 Conceptual review 5

2.2 Previous Studies 6

2.3 Research Gap 6

CHAPTER-III: RESEARCH METHODOLOGY

3.1 Research Methodology 7

3.2 Research Design 7

vi

3.3 Type of Research 7

3.4 Population & Sample 8

3.5 Data Collection Procedures 9

3.6 Data Collection Instrument 10

3.7 Techniques of Analysis 11

3.8 Limitation of the Study 12

CHAPTER-IV: PRESENTATION OF DATA ANALYSIS AND FINDINGS

4.1 Data Presentation and analysis 13

4.2 Statistical analysis 17

4.3 Major Findings 18

CHAPTER-V: DISCUSSION, CONCLUSION AND RECOMMENDATION

5.1 Discussion 19

5.2 Conclusion 19

5.3 Implication 19

BIBLIOGRATHY

APPENDICS
 vii

LIST OF TABLS
Table No. Title Page No.

1 Fixed Deposit Position 13

2 Ratio of Fixed Deposit in Total Deposit Ratio 15

3 Fixed Deposit Account Interest Rate 16

4 Contribution of Fixed Deposit on Net Income 17

LIST OF FIGURES
Figure No. Titles Page No.

1 Fixed Deposit Position 14

2 Ratio of Fixed Deposit in Total Deposit Ratio 15

3 Fixed Deposit Account Interest 16

 viii

list of abbreviations

F.Y : Fiscal Year

S.N : Serial Number

i.e : That is

NRB : Nepal Rastra Bank

T.U : Tribhuvan University

Regd. : Reistration

Fig. : Figure

No. : Number

Rs. : Rupees

Etc : Ex ec tra
NCC : Nepal Credit and Commerce

ix

CHAPTER-I

INTRODUCTION
1.4 Background of the Study:

A bank is a financial institution licensed to receive deposits and make loans. Banks may also
provide financial services such as wealth management, currency exchange, and safe deposit
boxes. There are several different kinds of banks including retail banks, commercial or
corporate banks, and investment banks. In most countries, banks are regulated by the national
government or central bank.

The history of banking in Nepal dates back to the year 1937 AD with the establishment of Nepal
Bank Limited as the first commercial bank in Nepal. It was established as a semi-government
bank with METALLIC COINS worth NRs 10 million as the authorized capital. Banknotes in Nepal
weren't introduced up until the mid-1940s. It was in the year 1945 that the earliest banknotes
were issued by the treasury “SadarMulukiKhana”. These notes were signed by a "Khajanchi”,
the head of the treasury who also was a high Hindu Priest.

Later in the year 1955, Nepal Rastra Bank Act was formulated for a better banking system and
Nepal Rastra Bank was established in 1956 as the Central Bank of Nepal accordingly. After this
date, the banknotes were issued by the Central Bank with the signatures of the governors of
the institution. Till the 1980s, the banking sector was wholly owned by the government, with
Agriculture Development Bank, Rastriya Banijya Bank, NBL and NRB being the pillars of financial
institution in Nepal. 1984 saw the start of the private banking industry with the establishment
of Nabil Bank and the introduction of foreign banks such as the Nepal Arab Bank, Nepal
Indosuez Bank and Nepal Grind lays. The banking sector in Nepal has faced many hurdles and
hindrances. It has undergone various political conflicts and instability. But today, it stands more
liberalized and modernized. There are various types of banks working in the modern banking
system in Nepal. As per the list issued by NRB as of Mid-June 2018, the modern banking sector
includes 27 Commercial Banks, 33 Development Banks, 25 Finance Companies, and 63 Micro
Credit Development Banks.

Nepal Credit & Commerce Bank Ltd. (NCC Bank) formally registered as Nepal - Bank of Ceylon
Ltd. (NBOC), commenced its operation on October 14, 1996 as a Joint Venture with Bank of
Ceylon, Sri Lanka. It was then the first private sector Bank with the largest authorized capital of
NRS. 1,000million.

1
The Head Office of the Bank is located at Bagbazar, Kathmandu. The name of the Bank was
changed to Nepal Credit & Commerce Bank Ltd., (NCC Bank) on 10th September, 2002, due to
transfer of shares and management of the Bank from Bank of Ceylon, to Nepalese Promoters.
NCC Bank completed its 23 years of banking services on October 14, 2019 and recently, entered
into a historic merger with four Development Banks - Infrastructure Development Bank Ltd.,
Apex Development Bank Ltd., Supreme Development Bank Ltd. and International Development
Bank Ltd. The Bank started its joint transaction from January 01, 2017 has now become one of
the largest private sector commercial bank. At present NCC provides banking services and
facilities to rural and urban areas of the country through its. 120 branches, 85 ATMs and 4
Extension Counters scattered all over the country from Far West to Far East. The Bank has
developed corresponding agency relationship with more than 150 International Banks having
worldwide network.

Deposit refers to a transaction that involves a transfer of something to another party for
safekeeping. In the world of finance, a deposit may refer to a sum of money kept or placed in a
bank account, typically to gain interest. It also may refer to a portion of funds that is used as a
collateral or security for the delivery of goods. Deposits are as following:
1. Demand Deposit
2. Saving Deposit
3. Fixed Deposit
4. Margin Deposit
5. Call Deposit
6. Other Deposit
Among six deposits Fixed Deposit is one of the most popular ways to save money. It is a safe
investment offer good returns and are easy to open. Fixed deposit is investment instruments
offered by banks and non-banking financial companies, where you can deposit money for a
higher rate of interest than savings accounts. You can deposit a lump sum of money in fixed
deposit for a specific period, which varies for every financier.
Once the money is invested with a reliable financier, it starts earning an interest based on the
deposit. Usually, the defining criteria for F.D is that the money cannot be withdrawn before
maturity, but you may withdraw them after paying a penalty.
 2
This study analyzes fixed deposits account and the ratio of fixed deposit in total deposit of bank
to understand fixed deposit position of the Nepal Credit & Commerce Bank Ltd. The analysis of
strength and weakness is necessary and relative tools are applied such as fixed deposit ratio to
support the study.

1.2 Statement of Problems:

The prime problem areas to access in the study are as mentioned below:

 What is the fixed deposit position and the ratio of fixed deposit in total deposit?
 What is the interest structure of Fixed Deposit account at different period of the time?
 What is the contribution of fixed deposit on net income?

1.3 Objectives of the Study:

The main objectives of this study will be as follows:

 To analyze the fixed deposit position and the ratio of fixed deposit in total deposit of
NCC Bank Ltd.
 To analyze interest structure of Fixed Deposit account at different period of time.
 To analyze the contribution of fixed deposit on net income.

1.4 Importance of Study:

If we study any subject we go on analyzing the importance of study of same subject. This
project work has some importance this project work gives some valuable and needed
information of bank for stockholders. This project work gives information about situation of
bank, working capacity, working policies and way of solving problems of different banks as well
as NCC Bank. It gives information of accounts and the information of opening Fixed Deposit
account in NCC Bank from which general people can deposit their assets for security.
 3
1.5 Organization of the Study:

Introduction:

First Chapter deals with subject matter of the study consisting background of the study,
statement of the problem, objectives of the study, importance of the study and
organization of the study.

Literature Review:

Second chapter deals with conceptual review previous studies and research gap.

Research Methodology:

Third chapter deals with research methodology research design, type of research
population sample, data collection procedures, instruments techniques of analysis and
limitations of the study.

Presentation of Data Analysis and Finding

Fourth chapter deals with presentation of data and analysis and major findings.
 4

CHAPTER-II

LITERATURE REVIEW

2.1 Conceptual Review:

Investment attracts all people perspective of their conception, education and social status.
When one know the existence of a new thing known as awareness. External sources are
responsible for creating, modifying and shaping investment decision of investors Television,
Radio, Print, Media, Personal consultation for expert, relatives, friends etc. are responsible for
decision investment decision. They study is to find relationship between demographic and
social factors that affect the deposit decision of respondent like a deposit attitude, deposit
awareness and return. This study analysis the priorities of salary classed people regarding
deposit. Different factors that affect the decision of respondents such age, gender, income
scale, material status etc. –

Analysis of fixed deposit of NCC Bank Limited based on comparative with various years data of
fixed deposit. These data are collected through internet and with help of employee. In the
annual report of bank, there are high rate of fixed deposit in current year with respect of last
years. There are various types of interest rate with determine the fixed deposit.

This study determine of influence of financial literacy ,accounting information openness to

experience on decision making of investors, ate categories as risk taker or risk taking
performance investment in share, Risk aversion information asymmetry and bank fixed deposit.

A literature review is a study of past research findings. Literature reviews can be considered
secondary research, which mays then lead on to original research (primary research).
Sometimes the boundary between primary and secondary research is not clear (e.g., a critical
review of previously published ideas and data can lead to the discovery of new ideas).

According to Cardesco and Gatner "A literature review is a self-contained unit in a study which
e critically segment of a published body of knowledge through summary, classification and
comparison of poor research studies and theoretical articles."

According to Walliman “A literature review is a summary and analysis of current knowledge

about a particular topic or, area of equity.”

2.2 Previous Study:

A bank is a financial institution licensed to receive deposits and make loans. Banks may also
provide financial services such as wealth management, currency exchange, and safe deposit
boxes. There are several different kinds of banks including retail banks, commercial or
corporate banks, and investment banks. In most countries, banks are regulated by the national
government or central bank.
Source: https://www.investopedia.com

According to SumantkhanderaoMuranjan (1952), “A fixed deposit is a financial instrument

provided by banks or NBFC, which provides investors a higher rate of interest than a regular
saving account, until the given maturities date. It may or may not require the creation of a
separate account.” In this section effort has been to examine and review of some related
articles in different economic journals. Long-term investment from a large portion of
everybody's future plans. An alternative to simply applying for loans, fixed deposit allow you to
borrow from your own fund a limited periods, thus fulfilling your need as well as keeping your
saving secure.

2.3 Research Gap:

The review of literatures guides the researchers for getting better understanding of
methodology used, limitation of various available estimation procedures and data base, and
logical interpretation and reconciliation of the conflicting results. Besides this, the review of
empirical studies explores the avenues for future and present research efforts related to the
subject matter. In case of conflicting and unexpected results, the research can take the
advantages of knowledge of their researchers simply through the medium of their published
works. A number of research studies have been carried out on different aspects of performance
appraisal perspective. A review of these analyses is important in order to develop on approach
of banks financial condition.

Therefore, the present chapters review the empirical studies with different aspects.

CHAPTER-III
RESEARCH METHODOLOGY
3.1 Research Methodology:

Research Methodology is necessary for each research work. Research methodology is the way
to solve the research problems systematically. The research methodology considers the logic
behind the methods used in context of research study and explains why particular method or
technique is used .It also highlights about how to research problems has been defined, what
data have been collected. What particular method has been adopts.

3.2 Research Design:

The analysis of this study is based in certain research design. To accomplish any type of
research, well-set research design is necessary to fulfill the objectives of the study. The research
design followed for this study is analytical as well as descriptive. For the analytical purpose, the
annual report published throughout different years by the bank and other data were collected.

3.3 Types of Research:

This report study attempts to analyze on Fixed Deposit of NCC Bank Ltd.by searching adequate
information. It is a type of analytical and descriptive research and is conducted to know the
profit.

a) Basic Research:

Basic of pure research is the research which is intended to add new knowledge of uncovered
knowledge. This is also called fundamental research. Basic research focuses on theory building,
generalization and reinterpretation. It is difficult to implement the findings of pure research in
to direct practice. Normally, law of science are the example of pure research like billings point
can be reduced with increasing volume price of commodity of individual influences managerial
success. Normally basic research is used to conduct among the physical scientist in laboratory.
Basic research is conducted in order to explain the act regarding why changes are occurred. It
can be exploratory, descriptive and explanatory. Basic research provides ground for applied
research.
 7

b) Applied Research:

Applied research is the research work which is intended to identify new procedure or
explore new knowledge in order to solve day to day work like problems Investigating way of
decreasing employee absenteeism working procedure to decrease wastage, increasing sales
volume, improving quality with decreasing the cost of production, reducing customer
complaints, improving effectiveness of promotional activities etc. are some areas in which
applied research can work. Applied research is also called action research. Action research
aims at solving immediate problem with developing applications.

3.4 Population and Sample:

3.4.1 Population:

In a research a population is not demographic population but the entire collection of all
observation of interest i.e. people, objects or events as defines by the research is known as
population is also known as universe. Among 27 commercial banks, NCC Bank Ltd has been
selected for the present study. Thus, here the population encompasses all the commercial
banks they are:

1. Nepal Bank Ltd.

2. Rastriya Banijya Bank Ltd.
3. Nepal Investment Bank Ltd.
4. Standard Chartered Bank Ltd.
5. Nepal SBI Bank,
6. Himalayan Bank Ltd.
7. Nabil Bank Ltd.
8. Nepal Bangladesh Bank Ltd.
9. Bank of Kathmandu Ltd.
10. Everest Bank Ltd.
11. Nepal Credit and Commerce Bank Ltd.
12. NIC ASIA Bank Ltd.
13. Machhapuchhre Bank Itd.
14. Laxmi Bank Ltd.
15. Kumari Bank Itd.
16. Siddhartha Bank Ltd.
17. Agricultural Development Bank Ltd.
 8

18. Citizens Bank International Ltd.

19. Prime Commercial Bank Ltd.
20. Sunrise Bank Ltd.
21. Century Commercial Bank Ltd.
22. Sanima Bank Ltd.
23. Global IME Bank Ltd.
24. NMB Bank Ltd.
25. Prabhu Bank Ltd,
26. Civil Bank Ltd.
27. Mega Bank Ltd.

3.4.1 Sampling:

Sampling is the process of selecting sub-set of the population by the study of which researcher
would able to draw conclusions that would be generalizable to the population so, among the 27
Commercial Bank in Nepal. I have Chosen NCC Bank Ltd.as the sample of my study.

3.5 Data Collection Procedures:

For preparing this report descriptive and analytical research is used. Data are collected from
only secondary method because this method is economy. The following methodology is
adopted for the data presentation and analysis .Data has the most important material of a
business. There are several methods of data collection .The most common source is secondary
data.

a) Primary Data:

Those sources from which first hand data can be generated through the application of
appropriate data collection tools are called primary sources of data. Data collected from the
primary sources are fresh as well as more authentic and reliable.

b) Secondary Data:

The data collected by someone else, used already and make available to other in form of
published statistic are known as secondary data. Data are collected by other in context and
used by an investigator for his purpose. The Majority of the data used in this report is
secondary data. I have used the published audited financial statements of the NC Bank. Also
I have collected Annual Financial Report of Five years of NCC Bank .Beside, I have consulted:
 9

 Published Sources:

In published sources, data are already published. The necessary data for preparing this
will be collected from Annual report, Account or records maintained in this bank
maintained in this bank.

 Unpublished Sources:

In unpublished sources, data are made but not published. The necessary data for
preparing this report will be collected from official of this bank.

3.6 Data Collections Instruments:

 Observation Method:

In this method the data are gathered by researcher on observing some events
information in this method.

 Interview Method:

The interview is a face-to-face interpersonal role situation in which one person, the
interview, ask a person being interviewed, the respondent, questions designed to obtain
answers pertinent to the research problem.

 Questionnaire Method:
 In this method a questionnaire (a list of questions related to the investigation of
enquiry) is prepared and is given to the respondent that the expected to read and
understand the questions and write down reply in the questionnaire itself. After duly
fillings questionnaire, the respondents return the questionnaire, the respondents the
questionnaire to the investigator.

10

3.7 Techniques of Analysis:

Data are collected from various sources and method cannot be measurable and meaningful
without its appropriate presentation and analysis. This study uses the following tools for data
presentation and analysis.

a) Financial Tools:

 Ratio of Fixed Deposit in Tools Deposit:

The ration of fixed deposit to the total deposit is computed by given Formula:

¿ Deposit
Fixed deposit in Total Deposit Ratio =
Total Deposit

 Contribution of Fixed Deposit (Investment) on Net Income:

The Contribution of Fixed Deposit on Net income shows the relation between fixed
deposits in net income where, fixed deposit represent the investment made by bank.
Contribution of Fixed Deposit on Net Income is calculated as below.
 ¿ Deposit
Contribution of Fixe Deposit on Net Income =
Net Income

b) Statistical Tools:

 Tables:
 Trend line:

A trend line is a line draw over point high or under pivot lows to show the prevailing
direction of price. Trend lines are a visual representation of support and resistance in
any timeframe. Trend line used to show direction and speed of price, and also describe
patterns during periods of price contraction.

 Bar Diagram:

A Bar graph is a chart that uses bars to show comparisons between categories of data.
The bars can be either horizontal or vertical. Bar graphs with vertical bars are sometimes
called vertical bar graphs.

 Correlation Coefficient:

The correlation coefficient is a measure that determines the degree to which two
variables movements are associated.

11

The range of values of the correlation coefficients is -1.0 to 1.0. If a calculated is greater
than 1.0 or less than -1.0, a mistake has been made. A correlation of -1.0 indicates a
perfect negative correlation, while a correlation of 1.0 indicates a perfect positive
correlation.

N ∑ xy −(∑ x )(∑ y)
r=
√ N ∑ x 2−( ∑ x ) 2 √ N ∑ y 2− (∑ y ) 2
3.7 Limitation of the Study:

This study heavily based on secondary data. This study based on the following limitation:

 This study has covered only the five year data beginning from 2072/73 to F.Y 2076/77.
 This study has used simple table, bar diagram, trend line and simple statistical tools for
data presentation and analysis.
 This study based on the secondary data. It does not include the view of customers and
strategies.
 12

Chapter-iv

Presentation of data analysis and findings

4.1 Data Presentation:

Presentation means the presentation of the collected data to through table, figure etc. It is the
process of understanding the study or to the report and calculating the opinion. An analysis of a
data refresh to process where the statement or to the report gets resolve by breaking them
into simple statement. Analysis means to find out something and give opinion about the
presented data. According to annual report of NCC Bank Nepal Ltd. the 5 year data of fixed
deposit is given below.

4.1.1 Fixed deposit position & ratio of Fixed deposit in total deposit:

A) Fixed Deposit Positions:

Fixed Deposit Position

Table No.1

(Amount Rs. In 00,000)

Year Fixed Deposit

2072/73 2654.74
 2073/74 2845.96

2074/75 3120.75

2075/76 3221.74

2076/77 4317.70

13

Fixed Deposit Position

Figure 1

5000
4500
4000
3500
Amount in Rs.

3000
2500
2000 Fixed Deposit
1500
1000
500
0
2072/73 2073/74 2074/75 2075/76 2076/77
Fixed Year
From the above table and figure, the Fixed Deposit is 2654.74, 2845.96, 3120.75, 3221.74 and
4317.70 in the fiscal year 2072/73 to 2076/77 respectively. Fixed deposit is increasing in every
year. Fixed deposit is increasing. So, the bank’s net income is increase.

14

B) Fixed Deposit in Total Deposit Ratio:

Fixed Deposit in Total Deposit Ratio

Table No. 2

(Amount In Rs. 00,000)

 Year Fixed Deposit Total Deposit Ratio in (%)

2072/73 2654.74 3004.77 88.35

2073/74 2845.96 3261.37 87.26

2074/75 3120.75 3546.61 87.99

2075/76 3221.74 4089.23 78.79

2076/77 4317.70 5176.25 83.41

Fixed Deposit in Total Deposit Ratio

Figure

90

88

86

84
Raio in (%)

82

80 Ration in (%)

78

76

74
2072/73 2073/74 2074/75 2075/76 2076/77
Fiscal Year
 15

In the above table and figure, fixed deposit in total deposit ratio is 88.35%, 87.26%, 87.99%,
78.79%, and 83.41% in the fiscal year 2072/73 to 2076/77 respectively. Fixed deposit to total
deposit ratio is decrease to 87.26% in the fiscal year 2073/74, from 88.35% and increase to
87.99% in the fiscal year 2074/75 and again decrease to 78.79% in the fiscal year 2075/76 and
again increase to 83.41%. It seems that fixed deposit to total deposit is fluctuating to every
year.

2.1.2 Fixed Deposit Account Interest Rates:

Fixed Deposit Account Interest Rates

Tables No. 3

Period of fixed deposit Institutional Individual Interest Payable

3 month to less than 6 6.00% 6.25% Quarterly

month

6 month to less than 1 6.50% 7% Quarterly

year

1 year to less than 2 7% 7.50% Quarterly

year

2 year and above 7.5% 8% Quarterly

Fixed Deposit Account Interest Rates

Figure 3
 9

5
Institution
4 Individual

0
3 month - 6 month 6 month - 1 year 1 year - 2 year 2 year - above

16

The above table and figure show that the interest rate of fixed deposit on 3 month to less than
6 month, 6 month to less than 1 year, 1 year to less than 2 year and 2 year and 2 year and
above in institution is paid 6%, 6.50%, 7%, 7.5% respectively and individual 6.25%, 7% 7.50%
and 8% respectively.

4.1 Statistical Analysis:

4.1.2 Contribution of Fixed Deposit on Net Income:

Contribution of Fixed Deposit on Net Income

Table No. 4

Year Fixed Net income x×y X2 Y2

Deposit (x) (y)

2072/73 2654.74 3376.42 8963517.23 7047644.47 11400212

2073/74 2845.96 3870.68 11015800.5 8099488.32 1482163.7

2074/75 3120.75 3953.29 12337229.8 9739080.56 15628501.8

2075/76 3221.74 4382.64 14119726.6 10379608.6 19207533.4

2076/77 4317.70 4900.14 21157334.5 18642619.6 24011372

∑x=12939.15 ∑y=20483.17 ∑xy=54885808.6 ∑x2=53908441.6 ∑y2=85229782.9

Now,

N ∑ xy −(∑ x )(∑ y)
r=
√ N ∑ x 2−( ∑ x ) 2 √ N ∑ y 2− (∑ y ) 2
5 ×54885808.6−12939.15 × 20483.17
=
√5 ×53908441.6−( 12939.15 ) 2× √5 × 85229782.9−( 20483.17 ) 2
= 0.86

Since the correlation coefficient between net income and fixed deposit is positives. It indicates
that the net income and interest income movement is positives to each other.

17

4.2 Study of Major Finding:

The study of fixed deposit of “NCC Bank Ltd.” has been helpful to known the financial aspect of
the concerned firm. It is still running due to proper service towards the customers and its good
will.
a) We found on 2072/73, 2073/74, 2074/75, 2075/76 and 2076/77 fixed deposit amount
are Rs.2654.74, Rs.2845.96, Rs.3120.75, Rs.3221.74 and Rs.4317.70 respectively.
b) We found on 2072/73, 2073/74, 2074/75, 2075/76 and 2076/77 fixed deposit in total
deposit ratio is 88.35%, 87.26%, 87.99%, 78.79%, and 83.41% respectively. The ratio of
fixed deposit in total deposit is fluctuating in every year.
c) We found that the contribution of fixed deposit on net income of NCC Bank Ltd. Its
contribution is 2.68% in 2072/73, 3.24% in 2073/74, 3.43% in 2074/75, 3.45% in
2075/76 and 4.1% in 2076/77.
d) The correlation between fixed deposit and net income is positive.
e) Banks fixed deposit position and ratio is increasing trend shows the bank should
maintain it.
f) To bank’s contribution of fixed deposit and net income is quite good so the bank invest
deposit collection sector.
g) Bank must give its best efforts to increase the amount of fixed deposit and the duration
of fixed deposit by providing attractive service to its customers.
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Chapter-v
Discussion, conclusion and implication

5.1 Discussion:

Bank collects necessary amount which is scattered in society from saving of people,
organization and institution as deposit. Same way gives loan to people, organization and
institution which is collected as investment of bank. From this gathered amount bank strength
its economic position and by more interest it increase its revenue. By studying different data of
NCC Bank Ltd. fixed deposit plays a great role for the development of country. To increase the
deposit in NCC Bank Ltd. Many changes and improvement of steps should be taken which is
necessary today. In which improvement of interest rate on Fixed Deposit, improvement of
lending, interest rate should be some present less in lending and compound interest should not
be taken as well as modern banking facility should be provided people.

5.2 Conclusion:

NCC Bank Ltd. is one of the best commercial banks of the Nepal’s which provides various
facilities to the customers.

 It gives chance to develop people their business with low rate of interest of loan and
provides good interest for the customers.
 The fixed deposit is increasing in different year which means the bank is doing nice
progress in the banking field.
 The ratio of fixed deposit in total deposit is fluctuated in different time.
 Contribution percentage of fixed deposit on net income is positive.

5.3 Implication:

 Bank fixed deposit position and ratio is increasing trend shows the bank should maintain
it.
  To bank’s contribution of fixed deposit and net income is quite good so the bank invests
deposit collection sector.
 Bank must give its best efforts to increase the amount of fixed deposit and the duration
of fixed deposit by providing attractive service to its customers.

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Bibliography

Adhikari Devraj, Pandey Dhrubalal, (2017), Business Methods, Kathmandu: Asmita Publication

Agrawal, G.R (2003), Project Management in Nepal, MK Publisher and Distributors,

Kathmandu.

B.C Bajracharya, (2074), Basic Statistic, B.B.S. 1st Year, MK publisher and distributors,
Kathmandu.

Dangol, R.M (2059), Accounting for Financial Analysis and Planning, Kathmandu: Teleju
Prakashan

Jhoshi Padamraj, (2062 B.S), Principle of Investment: Asmita Books Publisher and Distributors,
Kathmandu, Nepal.

Poudel Rajan Bahadur, Baralkesharung, Joshi Padamraj, Gautam Rishiraj, Rana Surya Bahadur,
(2016), Fundamentals of Investment, Kathmandu: Asmita Publication

Poudel Raja, Baralkesharung, Gautam Rishira, Dahal Gyan B., B.R. Surya, (2008).

Fundamentals of Financial Management, Kathmandu: Asmita Publication

Thapa kiran, (2017), Commercial Bank Management, Kathmandu: Januka Publication.

Website Accessed

www.nccbank.com.np

En.m.wikipedia.org
Annual Report: 2072 to 2076.

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