ANALYSIS OF DEPOSIT COLLECTION OF PRABHU BANK

A project work Proposal

Submitted By:

Rabin Adhikari
T.U. Regd. No: 7-2-618-109-2019
Exam Roll No:
N.R. College
Nepaltar, Kathmandu

Group: Finance

Subm
Faculty of
Management
Tribhuvan University
Kathmandu, Nepal

In Partial fulfillment of the requirements for the degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Kathmandu, Nepal
March 2024
 TABLE OF CONTENTS

CONTENTS PAGE NO.

1.1 Introduction
1.2 Scope
1.3 Statement of problems
1.4 Objective of the study
1.5 Research methodology
1.6 Data presentation and analysis tool
1.7 Chapter plan
1.8 Limitation of the study

References
1.1 Introduction

Bank is a financial institutions,which is engaged in monetary transactions which has

always been the most important and largest financial intermediaries.Banks collects
the scattered money from the public providing those interest and services.This
collection becomes the capital for the bank to invest.the bank operates its
performance after receiving deposits from the public.Banking services are of
particular importance.various thinker and economist have forwarded different ideas
regarding the origin of the banks.

According to journal of monetary economics,“Banks are financial intermediaries that

issue deposits and use the proceeds to purchase securities.”(Fama,1980)

1.1.1 Concept of deposit

Deposit is the main source of commercial banks.A commercial bank receives deposit
in different accounts namely current,saving,fixed and call account which are also
khown as direct deposit.deposit are the main source of capital for the lending
activities of financial institution.the existence of commercial banks basically depends
upon the mobilization of deposit.

These banks cannot longer function in the absence of adequate deposits.In other
words,strength and weakness of the bank largely depends upon the ability to attract
more people to deposit their savings on various deposit accounts of the bank itself.

In the case prabhu bank there are mainly three types of deposits I.e.current deposit,fixed
deposit, saving deposit .
1.1.2 Profile of prabhu bank

The bank has gone through the various phases of its growth trajectory over a short
period of it’s existence .growth of prabhu bank was phenomenal,especially after
merger of grand bank Nepal limited,kist bank ltd ,prabhu bank Ltd,gaurishanker
development bank ltd and zenith finance Ltd in 2016,attaining the status of “A”class
financial institution licensed and regulated by the central bank of Nepal,Nepal Rastra
bank.

The banks has completed years of journey since the inception and has
accommodated seven different financial institutions in its making.

2. Statement of problem
A statement of the 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.

In the present context of Nepal, commercial banks have good performance. On the
basis of the profitability and productivity of commercial banks, the public has
confidence in their performance. However, various environmental factors, the state of
the economy, the structure of capital and money market, government policies,
taxation policies, and various internal factors have influenced upon financial
performance and position of commercial banks. In these circumstances, it is highly
useful to make the study on the financial statement of Everest Bank Ltd.

Profitability position and stock prices are the general factors considered for
evaluating the financial performance of Everest Bank Ltd. However, one can raise the
question, “Are these the only factors to reflect the performance of the bank?”

Thus, the main problem of the study is to inquire into the financial performance of
Everest Bank Limited.
This study is targeted to find out answers to the following questions:
1. What is the financial performance of Everest Bank Limited?
2. Does the overall financial statement depict the financial position indicating any
special strengths and weaknesses of the Bank?
3. Is Everest Bank Limited utilizing its assets efficiently?
4. Everest Bank Limited is considered to be operationally efficient. But how far it is
efficient?
In this context, the main purpose of the study is to analyze the financial performance
of Everest Bank Limited in terms of turnover, profitability, liquidity, and efficiency
in operation.
4. Objective of the study
It defines the purpose of this study. Simply, it helps to find out the answer to the
questions stated above. The general objective of this study is to analyze the financial
statements of Everest Bank Limited regarding the financial performance and position.

Other specific objectives are as follows:

1. To evaluate the financial position of Everest Bank Limited.

2. To analyze the financial performances through the use of appropriate financial
and analytical tools.
3. To identify the profitability position i.e. Earning per share (EPS), Dividend per
share (DPS), and Return on Asset (ROA).
4. To measure liquidity, solvency, and efficiency.
5. To determine the past, present, and projected performance of the company.
5. Research methodology
The research methodology is the process used to collect information and data. The
methodology may include interviews, surveys, publications, research, and other
research techniques.

5.1 Sources of data collection

Data can be collected from primary sources and secondary sources. Primary data are
first-hand data collected through the direct involvement of the researcher whereas
secondary data are second-hand data that are already collected by someone else and
used by the researcher for his/her study. The major data used in this project report are
collected through secondary sources.

5.2 Secondary data:

Secondary data are those data, that have previously been gathered and can be
accessed by researchers. Data in this project are collected from published as well as
unpublished sources. Secondary data used in this project are listed below:

1. Annual financial reports of Everest Bank Limited.

2. Official website of Everest Bank Limited.
3. Newspapers
4. Books and articles
6. Data presentation and analysis tool
Various statistical, as well as financial ratios, are used for the analysis of data
obtained in the due course of research. The obtained data is presented, tabulated, and
graphed to analyze and achieve the goal of the study. The financial ratios used for
data analysis are:
a. Profitability ratios
b. Liquidity ratios
c. Assets management ratio
And other financial
ratios
Further, the following tools have been used for data presentation:

a. Tabulation
b. Bar diagrams
c. Pie-chart

7. Chapter plan
i) Chapter one – Introduction:
It deals with the introductory part. It consists of a background of the study, banking
scenario in Nepal, the profile of the organization, statement of the problem, the
objective of the study, review of literature, methods of data collection, limitations of
the study, organization of the study and definition of terms.

ii) Chapter two – Result and analysis:

Chapter two deals with data presentation and analysis of results and findings. It
exhibits a systematic presentation of data collection and analysis of results and
findings of project work.

iii) Chapter three – Discussion and conclusion:

Chapter three, the last chapter of the study focuses on evaluating and interpreting the
results obtained. Further, it also deals with the present implication of results obtained
and conclusions drawn useful for future studies.
iv) Supplementary chapter: References/Bibliography, Appendices

8. Limitation of the study

Limitation tends to narrow the area of study. It is caused due various undeniable
circumstances. The major limitations of this study are mentioned below:
1. The Research is based on records of 3 fiscal years’ analysis only i.e. from FY
2077/78 to FY 2079 /2080.
2. The researcher has used only some statistical tools for the presentation and
analysis of data.
3. Most of the data used in this study are based on secondary sources mainly the
official website of Everest Bank Limited.
4. The main focus is given to the quantitative aspect rather than the qualitative
aspect.
5. The study is based on Everest Bank Limited only.
6. It is only for partial fulfillment of Bachelor of Business Studies (BBS).
7. The required time duration to complete the proposed study is 1 month.
8. Tentative Time Frame