DEPOSIT MOBILIZATION OF SANIMA BANK

A Project Work Report

By:

Sulochana Tamang

AshriwadbCollege

Campus Roll No: 35

T.U Reg. No: 7-2-39-722-2016

Symbol No: 390627

Proposal No: 115

Group: Finance

Submitted To:

The Faculty of Management

Tribhuvan University

In partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS STUDIES (BBS)

kapurdhara, Kathmandu

May,2023

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 DECLARATION

I hereby declare that the project work entitled "DEPOSIT MOBILIZATION OF SANIMA
BANK NEPAL LIMITED" submitted to the Faculty of Management, Tribhuvan
University, Kathmandu is an original piece of work under the supervision of Manandhar
, faculty member of Ashriwad College ,kapurdhara,Samakhusi Kathmandu, and is
submitted in partial fulfillment of the requirements for the degree of Bachelor of
Business Studies (BBS). This project work has not been submitted to any other
university or institution for the award of any degree or diploma.

………………………

Sulochana Tamang

May , 2023

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 SUPERVISOR'S RECOMMENDATION

The project work report entitled "DEPOSIT MOBILIZATION OF SANIMA BANK

NEPAL LIMITED" submitted by Sulochana Tamang of Ashriwad College,
Kapudhara ,Kathmandu, 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.

……………………..

Mrs. Binita Manandhar

May ,2023

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 ENDORSEMENT

We hereby endorse the project work report entitled "DEPOSIT MOBILIZATION OF

SANIMA BANK NEPAL LIMITED" submitted by Sulochana Tamang of Ashriwad
College, Kapudhara Kathmandu, in partial fulfillment of the requirements for the degree
of the Bachelor of Business Studies (BBS) for external evaluation.

………………………………………. …………..
………………………...

Asso. Prof. Dr. Kapil Khanal Mr, Dhurba Narayan

Manadhar

Chairman, Research Committee Campus Chief

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 ACKNOWLEGEMENT

The study entitled "DEPOSIT MOBILIZATION OF SANIMA BANK NEPAL LIMITED"

has been prepared to fulfill the partial requirements for the Degree of Bachelor of
Business Studies (BBS), Tribhuvan University, Nepal. I would like to express my special
thanks to everyone who has given their valuable time and support for doing this project.

I would also like to thank to Ashirwad College for providing me an opportunity to

accomplish this field work. From this field work ,I got the chance to expose myself by
applying theoretical knowledge to the real world of the external environment about
different aspects of management.

With deep sense of gratitude, I would like to acknowledge the encouragement and
guidance from my friends, teachers and other associated members. This really helped
me for completing this project with greater efficiency.

Sulchana Tamang

May ,2023

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 TABLE OF CONTENTS

Title Page…………………………………………………………………………………………….... i

Declaration……………………………………………………………………………………………. ii

Supervisor's Recommendation……………………………………………………………………… iii

Endorsement……………………………………………………………………………………….…. iv

Acknowledgement……………………………………………………………………………………. v

Table of contents………………………………………………………………………………….…. vi

List of Tables………………………………………………………………………………………… vii

List of Figures……………………………………………………………………………………….... viii

Abbreviations……………………………………………………………………………………….…. ix

CHAPTER-1 INTRODUCTION………………………………………………………… 1

1.1 Background of the study………………………………………………………………… 1

1.2 Profile of Janata Bank Nepal Limited…………….………………………………….…. 2

1.3 Objectives………………………………………………………………………………. 4

1.4 Rationale………………………………………………………………………………… 4

1.5 Review of literature……………………………………………………………………… 4

1.6 Methods……………………………………………………………………………….…. 6

1.7 Limitations………………………………………………………………………………. 8

CHAPTER-2 RESULTS AND ANALYSIS……………………………………………….

10

2.1 Data Presentation and Analysis of Results………………………………………………. 10

2.2 Findings of the study……………………………………………………………………... 17

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CHAPTER-3 SUMMARY AND CONCLUSION…………………………………………
19

3.1 Summary…………………………………………………………………………………. 19

3.2 Conclusion………………………………………………………………………………... 20

BIBLIOGRAPHY…………………………………………………………………………… 21

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LIST OF TABLES

Table No. Title

Page No.

1. Return of Asset 11

2. Price Earning Ratio 12

3. Earning Per Share 14

4. Net Profit to Loan and Advance 15

5. Current Deposit to Total Deposit Ratio 16

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 LIST OF FIGURES

Figure No. Title Page

No.

1. Figure showing Return of Asset 11

2. Figure showing Price Earning Ratio 13

3. Figure showing Earning Per Share 14

4. Figure showing Net Profit to Loan and Advance 15

5. Figure showing Current Deposit to Total Deposit Ratio

17

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 ABBREVIATION

SBL = Sanima Bank Limited

No. = Number

T.U = Tribhuvan University

BBS = Bachelor of Business Studies

NRS = Nepali Rupee

S.N. = Serial Number

B.S. = Bikram Sambat

% = Percentage

ATM = Automated Teller Machine

FY = Fiscal Year

SMS = Short Message Service

ABBS = Any Branch Banking Sytem

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 CHAPTER-1
INTRODUCTION

1.1. Background of Study

For the development of developing country like Nepal, every aspects of economic
sectors such as agriculture, trade, industry must be developed. So for the
development of these sectors large sums of resources are needed. But for the
developing country like Nepal, there is always a lack of capital for the
development activities .It is impossible for the government alone to handle and
develop all these sector alone at a same time. Likewise, Private sector alone
cannot invest in large business due to low per capital income and lack of sources.
Due to low per capital income their saving are very low and also their capital
formation are low. So for the economic development of these sectors, bank
always plays an important role.

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. The role of banks in economic
development is to remove the deficiency of capital by stimulating savings and
investment. A sound banking system mobilizes the small and scattered savings of
the community, and makes them available for investment in productive
enterprises.

Among various function of banks, deposit collection is the major functions of all
commercial Banks. A deposit is a financial term with multiple definitions. It is an
amount taken from the customer/amount deposited by the customer. Different
accounts (saving, current, fixed, margin call account) are used to collect the
amount. It can be interest-bearing and non-interest bearing.
Deposits are the funds, the customers collect in the bank for the purpose of
saving and interest income for which the bank gives or takes interest in
accordance with the nature. Mostly among the various deposits features provided
by banks. The deposit can be categorized into different categories based on the
currency, collection, time, interest-bearing and nature as follows:

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1. Current Account Deposit: – The depositors of such deposits can withdraw
and deposit money whenever they want any number of times. It is non- interest
bearing deposit mainly used by big business firms and business people because
they have to make payments and accept payments many times in a day.

2. Saving Deposit: – Saving account is interest-bearing [low interest-bearing

account] suitable for low and fixed income and salaried people. There are
restrictions on the number of withdrawals that can be made through a saving
account and hence this type of account is not suitable for businessmen.

3. Fixed Deposit: – This deposit is also called long term deposit because the
duration of the deposit is normally more than one year. The bank pays high
interest for the account holder. The account holder cannot withdraw money
before the maturity period.

4. Call Deposit: – Call deposit is a hybrid of current deposit and saving a

deposit. It is an interest-bearing deposit wherein the rate of the interest depends
upon the amount.

5. Margin Deposit: – Margin deposit is a non-interest bearing deposit. No

cheque is issued in margin deposit.

Deposit Collection is the major function of all commercial bank it helps to carry
out almost all the transaction of bank. Mostly among the various deposits
schemes and features provided by bank: fixed and saving deposit are considered
to be the most suitable because this deposit can be invested in the short term loan
with higher rate of return .so the deposit in the commercial banks has a great
contribution to the country’s economy if deposits are extensively collected and
effectively mobilized. This report however intends to give general information
regarding banking, deposit and prospects of the deposit mobilization Sanima
bank Limited.

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1.2. Profile of organization

Sanima Bank is a leading commercial bank in Nepal, promoted by prominent

Non-Resident Nepali’s (NRNs) that commenced operations in 2004 as a National
Level Development Bank. Since February 2012, Sanima Bank has upgraded to an
"A" Class Commercial Bank with its registered office at 'Alakapuri', Naxal, and
Kathmandu, Nepal. This ‘A’ class commercial bank had received its operating
license from Nepal Rastra Bank and has been successful to establish itself as a
leading commercial bank of Nepal.

Sanima bank is established with a mission to provide banking and financial

solutions in a simplified way with customer focus while adding value to its
stakeholders’ interests. This Bank is committed to provide one window financial
solutions to various customer segments and to achieve a healthy level of growth
in profitability, consistent with the bank's risk appetite.

The bank has the authorized capital of Rs. 9,000,000,000 , issued capital of
Rs.8,801,380,984 and paid-up capital of Rs. 8,801,380,984 and its fifty-one
percent of the shares lay in the hands of the promoters while rest of the forty-nine
is in the hands of the general public. The bank has been providing various
services such as current account, fixed account ,Saving account, provides loans,
bank overdraft services, safe deposit lockers, debit and credit card services, SMS
banking, ABBS banking etc. The Bank has 79 full-fledged branches and 1
extension counter spread across the geography of Nepal and has been providing
charge fee ATM service all over Nepal from its 736 ATM Machines installed all
over Nepal .

Sanima Bank recognizes that in the capacity of a commercial bank, it has become
an inevitable part of the society’s economic organ and has drawn on societal
resources for day to day functioning. Therefore, apart from its core objectives, the
bank has certain obligations to contribute to society as a whole. So, it has been
creating societal impact through replicable, sustainable and scalable CSR
programs.

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1.3. Objectives of study:
 To analyze deposit collection.
 To identify deposit position.
 To examine mobilization of deposits.

1.4. Rationale of study:

This research study definitely fills the research gap on the study of mobilization
of deposit policy of Sanima bank. Definitely, the study will provide the useful
feedback to the policy makers of bank and also become the a useful reference to
other commercial bank of Nepal and central bank (NEPAL RASTRA BANK) for
the formulation of appropriate strategies. This study evaluates the investment
policy and finds its loopholes and significantly contributes to make sound policy.

1.5. Methods
Research methodology is the method ,guidelines and the steps that are following
in analysis and it is the way of presenting collected data with meaningful
analysis .It refers to the various sequential to be adopted by a researcher in
studying a problem with certain objects.

Research Design
The research methodology is the process of arriving to the solution of the
problem through planned and systematic dealing with collection, analysis and
interpretation of facts and figures. This research is about analysis and
mobilization of deposit system of Sanima bank. The main purpose of this study
is to analyze deposits and its utilization of Sanima bank. The study is based on
the annual reports of the bank, library consults, class lectures, other related
articles and internet. This study is based on descriptive research design. For this
study historical data of last five years are collected to find out the performance of
Sanima bank.

Population and Sample Unit

This section deals with research method used in field work assignment .It is
attempted to provide basic knowledge of deposit and procedure for its operation.
For this purpose necessary data and information are collected and presented in
this report. Several articles bulletins publication and thesis report are studied to
undertake this report writing. Among total 28 A Class commercial bank’s
certified by Nepal Rastra Bank, Sanima bank is the sample of study.

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Method of data collection
Data collection is a fundamental aspect and as a result, there are different
methods of collecting data which when used on one particular set will result in
different kinds of data. Collection of data refers to a purpose gathering of
information and relevant to the subject-matter of the study from the units under
investigation. The method of collection of data mainly depends upon the nature,
purpose and the scope of inquiry on one hand and availability of resources, and
the time to the other. The statistical Data may be classified into primary and
secondary depending upon the nature and mode of collection.

Methods of data collection for primary and secondary Data:

Primary Data:
Primary data is data that is collected by a researcher from first-hand sources,
using methods like surveys, interviews, or experiments. It is collected with the
research project in mind, directly from primary sources. Primary data
collection sources include surveys, observations, experiments, questionnaire,
personal interview, etc. 

Secondary Data:
When the data are collected by someone else for a purpose other than the
researcher's current project and has already undergone the statistical analysis is
called as Secondary Data. The secondary data are readily available from the other
sources and as such, there are no specific collection methods.

Nature and sources of Data

The study is based on secondary data. I have consulted different books and past
year’s report writing and collected the data for report .I have taken the secondary
data of Sanima bank from data sources available from official site of Sanima
bank.

Data collection procedure:

Several articles, bulletins and prospectus along with other related material of
Sanima bank were studied and revised thoroughly. Then, most essential and
necessary data were chosen and collected .after the collection of all required data,
these were processed and actual writing of this field report has been preceded.

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Data processing
The collected data are processed by tabulation and arranging in a required form
for the sequential analysis of data .Comparative bar diagram and graph is also
used to processing the data .then through a study of all the collected secondary
data were done and important information were heighted and noted down.

Tools and Technique used

The collected and observed data are tabulated with necessary amount of each
head.for analysis of the data different tools are used. These tools are as follows:

 Financial Tools
 Statistical Tools

Financial tools
1. Fixed Deposit to Total Deposit Ratio

Fixed deposit is high interest bearing deposit and can be withdrawn only
after its maturity .the grater the proportion of fixed deposits, the lesser will
be the proportion of current or short term deposits in the total deposits,
which indicated higher short term position of a bank. It is calculated by
dividing the amount of fixed deposits by the amount of total deposit which
is given below:

Fixed deposit to Total deposit ratio = Fixed deposit

Total deposit

2. Saving deposit to total deposit ratio

Saving deposit stand midway between current and fixed deposit. These
deposit are not freely withdrawn as current deposit.it is calculated in order
to find out the proportion of total deposit which is short term and interest
bearing.
It can be calculated by dividing the amount of saving deposits by the
amount of the total deposits, which is given below:

Saving deposit to Total deposit ratio = Saving deposit

Total deposit

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 3. Current deposit to Total deposit Ratio:
It can be calculated by dividing the amount of current deposits by the
amount of Total deposits, which is given below:

Current deposit to Total deposit ratio = Current deposit

Total deposit

4. Margin deposit to total deposit ratio

It can be calculated by dividing the amount of Margin and Other deposit

by the amount of Total deposits, which is given below:

Margin to Total deposit ratio = Margin deposit

Total deposit

5. Call and short deposit to total deposit ratio

It can be calculated by dividing the amount of Call and short deposit by the
amount of Total deposits, which is given below:

Call and short deposit to Total deposit ratio = Call and short deposit

Total deposit

Statical Tools:
 Bar Graph
 Data Table
 Graph

1.6. Review of literature:

In this chapter, focus has been made on the review of literature that is
relevant on the investment policy of the commercial bank. Review of
literature is basically a stock taking of available literature in the field of
research. Every possible efforts has been made for the gasp of knowledge
and information that is available from the magazines ,newspaper,
document collection centre, other information managing bureaus and
concerned commercial bank. This chapter helps to take adequate feedback

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to broaden the information base and inputs to the study regarding the
commercial bank.

1.7. Limitation
The report does not represent detailed analysis of deposit in Sanima Bank
due to the lack of time relevant data and resources. This report is limited to
the information that was available in the bank and other sources.

 It is only based on secondary data.

 It is only limited upto 5 years data from 2014/15 to 2018/19.
The study is about analysis and mobilization of depositary of Sanima
Bank .This study does not concerned other aspects such as loan,
capital, and size.

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 CHAPTER-2

RESULTS AND ANALYSIS

In this section, basically the data presentation is done along with their
interpretation and thoroughly the result and analysis are performed for obtaining
the overall status of SBL with the given financial tools mentioned in previous
sections.

However, ratio analysis is the process of determining and interpreting numerical

relationships between figures of financial statements. Since an absolute
accounting figure often does not provide much meaning by itself, it has to be
analyzed in relation to other figures so that significant information about the
company's financial performance can be derived.

2.1 Data Presentation and analysis of result

1. Total Deposit

Total deposit of SBL comprises of Fixed deposit ,Current Deposit, Saving Deposit ,Call
Deposit ,Margin and Other Deposits where other deposit refers to the deposit collected
from different other sources mentioned than above. Total deposit is calculated with the
sum of all the deposit schemes as shown in the table below:

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 Table 1

Total Deposit

Margin
and
Fixed Current Saving Call other
S.N. FY Total
deposit deposit deposit deposit deposit

2014/ 1,863,96 34,045,31

1. 11,709,277 12,452,252 7,882,471 137,351
15 5 6

2015/ 12,656,28 2,682,57 18,952,30 12,132,14 46,423,30

2. -
16 6 4 4 2 6

2016/ 24,323,43 2,496,79 20,686,56

3. 8,106,921 547,345 56,161,055
17 5 4 0

2017/ 36,471,00 5,682,90 28,190,73 6,650,88 77,849,38

4. 853,852
18 8 3 2 5 0

2018/ 43,347,07 6,106,54 30,977,44 1,195,49 89,373,72

5. 7,747,172
19 8 4 4 1 9

In NRS (000)

Source: Annual report of Sanima Bank.(2014/15 to 2018/19)

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 IN (NRS 000)

50,000,000
45,000,000
40,000,000
35,000,000
30,000,000 Fixed
NRS

25,000,000 Current
20,000,000 Saving
15,000,000 Call
10,000,000 Margin
5,000,000
0
2014/15 2015/16 2016/17 2017/18 2018/19

Fiscal year

Figure 1: Total Deposit Collection of Sanima Bank.

Table 1 and figure 1 represents the composition of deposits of Sanima Bank through last
five years.the figure cleary shows the fixed deposit amount was comparatively less than
saving deposit but higher than curent and other deposits in 2014/15.Fixed deposits
doesnot have much increment till 2015/16 but saving and current deposit shows an
increasing trend over the years.Likewise in 2016/17 ,2017/18 and 2018/19 the fixed
deposits and saving deposits has been dastrically increased which shows the
involvement of nepalese people in saving.

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2. Fixed Deposit to Total Deposit Ratio

This ratio measures the percentage of fixed deposit to total deposit. This ratio is
calculated by dividing fixed deposit by total deposit. The following table shows the fixed
deposit to total deposit ratio.

Table 2

Fixed Deposit to Total Deposit Ratio

S.N. FY Fixed deposit Total deposit Ratio (%)

1. 2014/15 11,709,277 34,045,316 34.39

2. 2015/16 12,656,286 46,423,306 27.26

3. 2016/17 24,323,435 56,161,055 43.31

4. 2017/18 36,471,008 77,849,380 46.84

5. 2018/19 43,347,078 89,373,729 48.50

IN NRS (000)

Source: Annual report of Sanima Bank.

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 60
46.84 48.5
50 43.31
40 34.39
27.26
Ratio(%)

30
Fixed deposit to total deposit
20 ratio
10 Linear (Fixed deposit to total
deposit ratio)
0
5 6 7 8 9
4 /1 5 /1 6 /1 7 /1 8 /1
1 1 1 1 1
20 20 20 20 20
FISCAL YEAR

Figure 2: Fixed Deposit to Total Deposit line graph

Table 1 and figure 1 represent the ratio of fixed deposit to the total deposit over the last
five years.Fixed deposit was Rs 11,709,277,000 which was 34.39% of total deposit. But
in 2015/16 the ratio of total fixed deposit decreased by 27.26% to the total deposit. But
after that the ratio rapidly increased from 43.31% in 2016/17 to 46.84% in
2017/18.Likewise, again in 2018/19 the ratio of total fixed reaches to 48.5% to the total
deposit.

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3. Current Deposit to Total Deposit Ratio

This ratio measures the percentage of current deposit to total deposit. This ratio is
calculated by dividing current deposit by total deposit. The following table shows the
current deposit to total deposit ratio.

Table 3

Current Deposit to Total Deposit Ratio

S.N. FY Current deposit Total deposit Ratio (%)

1. 2014/15 1,863,965 34,045,316 5.47

2. 2015/16 2,682,574 46,423,306 5.77

3. 2016/17 2,496,794 56,161,055 4.44

4. 2017/18 5,682,903 77,849,380 7.29

5. 2018/19 6,106,544 89,373,729 6.83

IN NRS (000)

Source: Annual report of Sanima Bank.

8 7.29
6.83
7
6 5.47 5.77
5 4.44
Ratio(%)

4
3 Current deposit to total
2 deposit
1 Linear (Current deposit to to-
tal deposit)
0
5 6 7 8 9
4 /1 5 /1 6 /1 7 /1 8 /1
1 1 1 1 1
20 20 20 20 20
FISCAL YEAR

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Figure 3: Current Deposit to Total Deposit line graph

Table 3 and figure 3 represent the ratio of Current deposit to the total deposit over the
last five years.Current deposit was Rs 1,863,965,000 which was 5.47% of total deposit.
Likewise, the current deposit in 2015/16 increase upward by 5.77% .But , in 2016/17
the ratio of Current deposit decreased decrease drastically by 4.44% to the total deposit.
But after that the ratio rapidly increased from 7.29% in 2017/18 .Likewise, again in
2018/19 the ratio of total current deposit reaches to 6.83% to the total deposit. This
shows that current deposit keeps on fluctuating to the total deposit other than other
deposit.

4. Saving Deposit to Total Deposit Ratio

This ratio measures the percentage of saving deposit to total deposit. This ratio is
calculated by dividing saving deposit by total deposit. The following table shows the
saving deposit to total deposit ratio.

Table 4

Saving Deposit to Total Deposit Ratio

IN NRS (000)

S.N. FY Saving deposit Total deposit Ratio (%)

1. 2014/15 12,452,252 34,045,316 36.57

2. 2015/16 18,952,304 46,423,306 40.82

3. 2016/17 20,686,560 56,161,055 36.83

4. 2017/18 28,190,732 77,849,380 36.21

5. 2018/19 30,977,444 89,373,729 34.66

Source: Annual report of Sanima Bank.

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 42 40.82
40
38 36.57 36.83
36.21
Ratio(%)

36 34.66
Saving deposit to total
34 deposit ratio
32 Linear (Saving deposit to to-
tal deposit ratio)
30
15 16 17 18 19
14/ 15/ 16/ 17/ 18/
20 20 20 20 20
FISCAL YEAR

Figure 4: Saving Deposit to Total Deposit line graph

Table 4 and figure 4 represent the ratio of Saving deposit to the total deposit over the
last five years. Saving deposit was Rs 12,452,252,000 which was 36.57% of total deposit.
Likewise, the Saving deposit in 2015/16 drastically increase upward by 40.82% .But , in
2016/17 the ratio of Saving deposit decreased by 36.83% to the total deposit. Again, the
ratio of total saving deposit rapidly decrease from 36.21% in 2017/18 to 34.66% in
2018/19 the ratio of total deposit .This shows that Saving deposit has been fluctuating
in downward to the total deposit other than other deposit.

5. Call Deposit to Total Deposit Ratio

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This ratio measures the percentage of call deposit to total deposit. This ratio is
calculated by dividing call deposit by total deposit. The following table shows the call
deposit to total deposit ratio.

Table 5

Call Deposit to Total Deposit Ratio

S.N. FY Call deposit Total deposit Ratio (%)

1. 2014/15 7,882,471 34,045,316 23.15

2. 2015/16 12,132,142 46,423,306 26.13

3. 2016/17 8,106,921 56,161,055 14.43

4. 2017/18 6,650,885 77,849,380 8.54

5. 2018/19 7,747,172 89,373,729 8.66

IN NRS (000)

Source: Annual report of Sanima Bank.

30
26.13
25 23.15

20
Ratio(%)

14.43
15 Call deposit to total deposit
ratio
10 8.54 8.66
Linear (Call deposit to total
deposit ratio)
5
0
2014/152015/162016/172017/182018/19
FISCAL YEAR

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Figure 5: Call Deposit to Total Deposit line graph

Table 5 and figure 5 represent the ratio of Call deposit to the total deposit over the last
five years. Call deposit was Rs 7,882,471,000 which was 23.15% of total deposit.
Likewise, the Call deposit in 2015/16 drastically increase upward by 26.13% .But , in
2016/17 the ratio of Call deposit decreased rapidly by 14.43% to the total deposit and
continues to decrease to 8.54% in 2017/18 .It slightly increase to 8.66% in 2018/19 in
the ratio of total deposit .This shows that Call deposit has been continuously fluctuating
in to the total deposit other than other deposit.

6. Margin Deposit to Total Deposit Ratio

This ratio measures the percentage of margin deposit to total deposit. This ratio is
calculated by dividing margin deposit by total deposit. The following table shows the
margin deposit to total deposit ratio.

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 Table 6

Margin Deposit to Total Deposit Ratio

Margin and other

S.N. FY deposit Total deposit Ratio

1. 2014/15 137,351 34,045,316 0.40

2. 2015/16 - 46,423,306 -

3. 2016/17 547,345 56,161,055 0.97

4. 2017/18 853,852 77,849,380 1.09

5. 2018/19 1,195,491 89,373,729 1.33

IN NRS (000)

Source: Annual report of Sanima Bank.

1.4 1.33
1.2 1.09
0.97
1
Ratio(%)

0.8
Margin deposit to total
0.6 deposit
0.4
0.4 Linear (Margin deposit to to-
0.2 tal deposit)
0
0
2014/152015/162016/172017/182018/19
FISCAL YEAR

Figure 6: Margin Deposit to Total Deposit line graph

Table 5 and figure 5 represent the ratio of margin deposit to the total deposit over the
last five years. Margin deposit was Rs 137,351,000 which was 0.4% of total deposit.

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Likewise, there is no margin deposit in 2015/16.In 2016/17 the ratio of Call deposit
increase rapidly by 0.97% to the total deposit and continues to increase to 1.09% in
2017/18 . Again it increase to 1.33% in 2018/19 in the ratio of total deposit .This shows
that margin deposit has been continuously increase in ratio to the total deposit other
than other deposit.

2.2 Findings of the study

 Fixed deposit has the lowest ratio in the 2014/15 but it has been in increasing
trend over and saving has been decreasing over some year.Likewise, current
deposit and other deposit showed fluctuate trend all over the yearrs.
 Saving deposit showed the increasing trend till 2015/16 and has been drastically
decreased from 2017/18 to 2018/19.
 Call deposits was increased in the intial phase but has been continusoly decreasing
from 2016/17 to 2018/19.
 Both current deposit and margin and other deposit has been drastically
fluctuating over the year from 2014/15 to 2018/19.
 Total deposit all over the last five year it also shows the positive balance and has
been increasing upward. It shows the postive sign of economic growth.
 Fixed deposit has showes higher value amount then other deposit all over the
fiscal year from 2014-15.

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 CHAPTER 3

SUMMARY AND CONCLUSION

3.1 Summary of the Report

A bank is a financial intermediary that accepts deposit and channels those
deposit into leading activities. Banks are a fundamental Component of the
financial system and are also active player in the financial market. A bank
is a institution, which deals in a money. It draws surplus money from the
people who save and lend them to the people who want to use it productive
purpose. Those present study has been undertaken to examine and
evaluate the role plays by Sanima Bank Limited in saving and deposit .
The financial Statement of five years that is from 2014/15 to 2018/19 has
been examined for the purpose of the study. The Study has resorted mainly
to secondary data that has been first processed and analyzed
comparatively.

From this study, some points about the saving and deposit aspect of
Sanima Bank Limited has to come to ligh. They are listed below :

 The total deposit of Sanima Bank Limited shows an increasing trend

from the year 2014/15 to year 2018/19. The total deposit showed
balance in year 2014/15 is Rs 34,045,316,000 to the year 2018/19 it
shows Rs 89,373,729,000 total deposit balance in final year.
 Fixed deposit showed an increasing balance from 2014/15 to 2018/19,
the initial amount in fixed deposit is Rs 11,709,277,000 and till the end it
reaches Rs43,347,078,000.
 Current deposit showed an fluctuating balance from 2014/15 to
2018/19, the initial amount in current deposit is Rs 1,863,965,000 and till
the end it reaches Rs6,106,544,000.

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  Saving deposit showed an fluctuating balance from 2014/15 to 2018/19,
the initial amount in current deposit is Rs 12,452,252,000and till the end it
reaches Rs30,977,444,000.
 Call deposit showed an fluctuating balance from 2014/15 to 2018/19,
the initial amount in current deposit is Rs 17,882,471,000 and till the end
it reaches Rs7,747,172,000.
 Margin and other deposit showed an fluctuating balance from 2014/15
to 2018/19, the initial amount in current deposit is Rs 137,351,000 and till
the end it reaches Rs1,195,491,000.
 By the analysis of the saving and deposit of Sanima Bank Limited it can
be concluded that the bank is able to utilize its deposit to a greater
extent.
 The Bank’s overall performance looks effective in profitability and
towards customer satisfaction. The bank may seem to be able to attract
more customer in future.

Conclusion
Sanima bank was established with a mission to provide banking and
financial solutions in a simplified way with customer focus while adding
value to its stakeholders’ interests. This Bank is committed to provide one
window financial solutions to various customer segments and to achieve a
healthy level of growth in profitability, consistent with the bank's risk
appetite. The Bank has displayed dedication towards maintaining the
highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. Consequently, Sanima Bank is
perceived as a strong and reliable player in the banking industry. The
Bank has 79 full-fledged branches and 1 extension counter spread across
the geography of Nepal and has been providing charge fee ATM service all
over Nepal from its 736 ATM Machines installed all over Nepal and also
has been actively exploring alternative channels and also expects to add
more branches in the coming days.
The total Deposit of Sanima Bank Limited Shows decreasing balance in year
2014/15. But after the year by year till 2018/19 it shows the management has
practiced all the available means and exploited its resources fully in the last year

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 to raise its total deposit which is the most important function of any commercial
bank. The bank is also making great efforts for the mobilization of deposits.

But the overall view of the bank’s Profit and Loss Account of the past five years
shows that the net profit has declined heavily from Rs.316,542,342,000 in
2012/13 to Rs. 251,236,970,000 in 2013/14. But the net profit has increased to
Rs.275,504,670,000 in 2014/15. This decline in net profit was in increasing
trend with Rs. 291,448,356,000 balance in year 2015/16 and

Reach to Rs.341,654,966,000 in final year 2016/17. However, the Bank has

managed to double its total deposit so, it is very likely that the bank will be able
to increase its net profit significantly as well. (YESMA K LEKHNYA)
Recommend the management team to analyze and find out the cause behind the
significant drop in the net Profit and to work and formulate new polices and
strategies to increase its net profit in its coming years as net profit directly
reflects the efficiency and position of the bank’s overall function .

At last, I hope the Sanima Bank Limited will further improve, will be able to make
larger collections, invest them in profitable sectors and help in contributing to
economic development of the country and provide better services to its customers
in future .

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https://www.investopedia.com/terms/b/bank.asp

https://www.investopedia.com/terms/d/deposit.asp

https://www.sanimabank.com/interest-rate

http://bossnepal.com/sanima-bank-limited

https://www.sanimabank.com/reports/annual-report

https://www.ratojob.com/types-of-deposit-and-deposit-mobilization

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