A PROPOSAL ON DEPOSIT MOBILIZATION OF NABIL BANK

LIMITED

Submitted By:

Barun Raj Shrestha

T.U. Reg. No. 7-2-868-5-2018

Exam Roll No: 708680005

Group: “Finance”

Submitted To:

CP College, Dhading

The Faculty of Management

Tribhuvan University

Kathmandu, Nepal

In Partial Fulfillment of the Requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Dhading, Nepal

April, 2023
 A PROPOSAL ON DEPOSIT MOBILIZATION OF NABIL BANK
LIMITED

1. Introduction

Deposit mobilization is the process of gathering funds from different sources, such as
individuals, business, or other entities, and placing them into deposit accounts like
saving, current, or fixed deposit accounts. This process is mainly conducted by financial
institution like banks, credit unions, or saving and loan associations to fund their leading
and investment activities. The deposits collected by financial institution are utilized to
finance their leading activities like providing loans, mortgages, or credit line to
individuals and businesses.

Deposit mobilization is a crucial component of the financial system as it helps financial

institutions to collect funds from various sources and use them to support economic
growth and development. Financial institution offer various incentive and interest rates to
attract customers and encourage them to deposit their funds. The funds collected through
deposit mobilization are also used to make investments like purchasing securities or
investing in other financial instruments to generate additional income for financial
institution.

Nabil Bank Limited (NBL) is the nation’s first private sector bank, commencing is
business since July 1984. Nabil was incorporated with the objective of extending
international standard modern banking services to various sectors of the society. Pursuing
its objective, Nabil provides a full range of commercial banking services through its 118
points of representation. In addition to this, Nabil has presence through over 1500 Nabil
Remit agents throughout the nation. Nabil Bank operates through its wide network of 248
branch offices, 271 ATMs, numerous POS terminals, remittance agents spread across the
nation. The Bank also has over 200 international correspondent banking relationships.
The Bank operates its investment banking arm through its subsidiary Nabil Investment
Banking Ltd.

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2. Scope of Study
Nabil bank is moving forward with a Mission to be “1st choice provider of complete
financial solutions” for all its stakeholders; customers, shareholders, regulators,
communities and staff. The commercial banks can play a vital role mobilization the
resources in developing as well as developed country. Deposit mobilization includes
various activities such as marketing, promotion, and customer relationship management
to attract deposit.

The scope of study of deposit mobilization encompasses various aspects of the banking
industry. The study includes the factors that influence deposit mobilization, such as
interest rates, economic condition, and customer behavior. It also covers the different
strategies adopted by banks to mobilize deposits, such as advertising, promotional
campaigns and customer relationship management. The study can also focus on the
impact of technology on deposit mobilization, including the development of online
banking platforms and mobile banking applications. Overall, the scope of study of
deposit mobilization is broad and includes multiple areas of the banking industry, making
it a crucial area of research for financial institution and policymakers alike.

3. Statement of Problem

A statement of problem is a brief description of an issue to be addressed or a condition to

be improved upon. It aims in identifying and explaining the problem.

Within the sphere of the proposed study, there exist a considerable number of problems
regarding the commercial banks, services they offer such as different deposit types, their
features etc., and their relationship with customers. For example: It's said that banks are
not being able to fully utilize their deposits fund in to productive sectors. In other words,
they are said to be more focused on retail banking rather than in corporate banking.
Similarly, banks are holding major portion of their deposits liabilities as the cost bearing
deposits. Likewise, it can be generalized that banks are not being able to manage their
liquid assets efficiently.

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The recent trend observed in banking industry is that they have not been able to fully
utilize their deposit fund by mobilizing it into productive sectors. Due to the deteriorating

economic scenario, management of the banks, and the attitude of the board of directors,
they have been able to lend about 70 percent of total deposits only. Referring to the
Banks' composition of deposit liabilities, it can be said that they are holding too much of
cost bearing deposits.

This capacity of banks to create money and deposits has a number of important
influences on the financial system and the economy as a whole. Banks can invest up to
their money or deposit multiplier and money created by banks is also instantly available
for spending. Therefore, unless carefully controlled by the central bank, it can fuel
inflation.

4. Objective of the Study

The main objectives of the study is to determine the effects of deposit mobilization on the
financial performance of Nabil Bank Limited. This research work are to examine the
efficiency of Nabil Bank Limited by making a study of deposit mobilization of sample
bank how they utilize to fulfill the financial needs of different sector of economy. The
specific objective of the study are given as below:

 To examine the relationship between total deposit mobilization, loan and

advances and profitability of Nabil bank Limited.
 To ascertain the profitability position of Nabil Bank Limited in Nepal.
 To examine the effect of profitability and loan & advance on total deposit
mobilization of Nabil Bank Limited.
 To evaluate trend of deposit utilization and its projection for the next five years.

5. Research Methodology

Research Methodology is also one of the important structures of the proposal. This
section is the heart of the proposal. This title shows that researcher tackles the research
problem in future. This part not only shows which methods are used but it shows why

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they are used in research. Research methodology is systematic way to solve the research
problem. So, this chapter is divided into different heading as below:

 Research Design
 Population and sample
 Nature and types of data
 Techniques of analysis
 Tools of analysis

Research Design:

The structure of the research is more specific. Thus, a research design is a plan for the
collection and analysis of data. If presents a guide posts of enable the researcher to
progress in the right direction in order to achieve the goal. The design may be a specific
presentation of the various steps in the problems, formulation of hypothesis, conceptual
clarity, methodology, survey of literature and documentation, bibliography, data
collection, testing of the hypothesis, interpretation, presentation and report writing.
Generally, a common research design possesses the five basic elements viz.

i) Selection of problem
ii) Methodology
iii) Data gathering
iv) Data analysis
v) Report writing

Population and Sample

In statistics and quantitative research methodology, a data sample is a set of data

collected or selected from a statistical population by a defined procedure. The elements of
a sample are known as sample points, sampling units or observations. The sample usually
represents a subset of manageable size.

There are altogether 27 Commercial banks functioning all over the Nepal and most of
their stocks are traded actively in the present study market. Here Nabil Bank Limited has

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been selected as sample for the present study. Similarly, financial statements of this bank
for five years have been taken as samples for the same purpose.

Nature and Sources of Data

In case of study secondary data used are basically of the following nature.

 Most of the data taken for the analysis is collected in the form of published by the
concerned banks through their annual reports.
 Since all the banks which are taken into account for the study are listed in
NEPSE, the figures are all most reliable and suitable too.

In order to fulfill the objectives of this research work, all the secondary data are
complied, processed and tabulated in time series. And to judge the reliability of data
provided by the banks and other sources, they were complied with the annual reports of
auditors. Formal and informal talks to the concerned head of the department of the bank
were also helpful to obtain the additional information of the related problem.

There are two sources of data collection. They are primary sources and secondary
sources.

a) Primary Sources:

The primary source of data is collected from the concerned bank. The way of data
collection is by making questionnaire and distributed to the credit department of the
concerned bank and also to the client of the bank.

b) Secondary Sources:

This refers to data are already used and gathered by others. Secondary data are mostly
used for research purpose. The major sources of secondary data are as follows:

 Economy survey of NG. ministry of finance

 Annual general of Nabil Bank Limited
 National newspaper, journals and magazine and reports for central library of T.U.
 Libraries of college
 Internet

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  NRB directives

Techniques of Analysis

Data analysis is the collecting and organizing of data so that a researcher can come to a
conclusion. Data analysis allows one to answer questions, solve problems, and derive
important information.

According to Wikipedia, ‘Data analysis is the process of gathering, modeling and

transforming data with the goal of highlighting useful information, suggestions,
conclusions and supporting decision making. Data analysis has multiple facts and
approaches, encompassing diverse techniques under a variety of names, in different
business, sciences and science domain’.

There are two methods that a researcher can pursue: qualitative and quantitative.

Qualitative research resolves around describing characteristics. It does not use numbers.
A good way to remember qualitative research is to think quality.

Quantitative research is the opposite of qualitative research because its prime focus is
numbers. Quantitative research is all about quantity.

Data Processing Procedures

Data collected from various sources were in raw from. Method of analysis is applied as

Simple as possible. The obtained data are presented in various tables, diagrams and
graphs with supporting interpretation. The data gathered are assembles in an organized
way and are entered into database program of computer software. Finally, spreadsheet
analysis was carried over the database records. Care had been taken during the
formulation of the database program such that and single change in the input data could
reflect an effect to each table presented throughout this study report, which was linked
with that data.

Data Analysis

Analysis and presentation of the data is the core of each and every research work. This
study requires some financial and statistical tools to accomplish the objective of the

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study. The financial and statistical tools are most reliable. In this study various financial,
statistical and accounting tools have been used. These tools make the analysis more
effective, convenience, reliable and authentic.

The various results obtained with the help of financial, accounting and statistical tools are
tabulated under different headings. Then they are compared with each other to interpret
the results. Two kinds of tools have been used to achieve the certain goals.

1. Financial Tools
2. Statistical Tools

6. Chapter Plan

i) Chapter one – Introduction

It deals with the introductory part. It consist of background of study, banking scenario in
Nepal, profile of the organization, statement of the problem, objective of the study,
review of literature, method of data collection, limitation of the study and definition of
terms.

ii) Chapter two – Result and Analysis

Chapter two deals with data presentation and analysis of result and findings. It exhibits
systematic presentation of data collected and analysis of result and finding of project
work.

iii) Chapter three – Discussion and conclusion

Chapter three, last chapter of the study focuses on evaluating and interpreting the results

obtained. Further, it also deals with present implication of results obtained and conclusion
drawn useful for future studies.

7. Limitation of the study

This study covers only limited years period i.e. only for the period of 5 years.

 Limited statistical tools are used to analyze data.

 Only secondary data are used to get information about the bank.

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  This study focuses on deposit mobilization and does not cover other aspects.
 It is not always possible to make future estimation on the basis of the past as it
always does not come true.

BIBLIOGRAPHY

Books

Adhikari, D.R. (2021) “Business Research Methods”, Asmita Publication, Kathmandu.

Joshi, P.R. (2004). Fundamental of Financial Management. Asmita’s book Publishers
and distributors, Putalisadak, Kathmandu.
Kothari, C.R.(1992) ‘Quantitative Techniques’ Vikash Publication House Pvt.Ltd, New
Delhi.
Journal/Articles
International Journal of small and Entrepreneurship Research Vol.3, No.6,pp,44-
71,November 2015 published by European Centre for Research Training and
Development UK (www.eajournals.org)
Junarsin, E. (2010). Issue in the innovation Service Product Process: A Managerial
Perspective. International Journal of Management, 27(9), pp. 45-76.21
Nepal Rastra Bank, 1996:43
Scott, D. (1992). Banking Institution in Development Markets Volume- 1. Washington
D.C.: World Bank.
Unpublished Thesis
Shrestha, S. (2021) ‘Deposit Mobilization of Nabil Bank Limited’, Dhading, Library of
CP College.

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Johnson, E. (1940). Research Methodology; Method and Techniques. New Delhi: Tata
Mc- Graw Hill Publishing Company Limited.
Panta U.R. (1976). A Study of Commercial Bank and Deposit and Utilization.
Websites
www.nabilbank.com.np
http://www.nbl.com.np
www.nrb.org.np
http://www.stock.com.np
www.business.com