Submitted By:
Kiran Lama
Submitted to:
Orient College
Maharajgunj, Chakrapath
In the partial fulfillment of the requirements of the degree of Bachelor of Business studies.
Faculty of Management Studies
TRIBHUVAN UNIVERSITY
RECOMMENDATION
Kiran Lama
Entitled:
A project on
NABIL Bank Ltd.
Kamaladi
Has been prepared and approved by this department. This field work assignment
report is forwarded for examination.
Supervisors
………………………. Date:-……………………..
Subash Acharya
(Principal)
ACKNOWLEDGEMENT
This Report has been prepared as a prerequisite for the completion of the Bachelor
Degree in Business Studies (BBS) of Tribhuvan University. I would like to express deep
appreciation and sincere thanks to the Management, Nepal Investment Bank Ltd. for
providing me the opportunity and encouragement to work in prestigious bank. This program
has in fact provided me high opportunity to learn about banking operation and in large extent
about marketing in Nepal.
So many people have contributed their support to me in preparing this report. First of
all, I would like to thank Tribhuvan University for providing us chance and allowing me for
this study. Besides, I would like to thank entire family of Nabil Bank for providing me a
guidance and great support throughout my particular project.
In this regard, I would like to express my cordial thanks to our supervisor, Mr. Subash
Acharya,(Principal) and Mr. Sushil Raj Das (Lecturer) of Orient College, for their keen
supervision, advice and support throughout the preparation of the report.
Lastly, I would like to thank all the valuable people for having spared their time to
assist me by sharing their views on the subject.
Kiran Lama
BBS, 3rd Year
Table of contents
Chapter 1..................................................................................6
Introduction......................................................................6
Origin Of Bank:...............................................................6
Meaning of Bank..............................................................6
History of Bank In Nepal.................................................7
Commercial Bank............................................................8
Commercial Banks in Nepal............................................8
Introduction Of Nabil Bank Limited................................8
Branches...........................................................................9
The Board of Directors of Nabil Consists of :-..............10
Deposits..........................................................................11
Guarantees......................................................................11
Credit Cards...................................................................11
Tele-banking..................................................................11
Western Union Money Transfer.....................................11
SWIFT (Society for Worldwide Inter Bank Financial
Telecommunication)......................................................11
Safe Deposit Locker.......................................................12
Automated Teller Machines (ATM).............................13
Other facilities................................................................13
Introduction To Deposit.................................................13
Types of Deposit and its Account opening Procedure...13
Types of Deposits...........................................................14
Interest Bearing Deposit.................................................14
Non-Interest Bearing Deposit........................................15
Statement Of Problems..................................................19
Significance of the study................................................19
Objective of the study...................................................19
Limitation of the study...................................................19
Methodology Of Research.............................................20
Research Design.............................................................20
Sources of Data..............................................................20
Data Processing Techniques..........................................21
Summary, Conclusion And Recommendation.......................23
Summary........................................................................23
Conclusion.....................................................................23
Recommendations..........................................................24
Chapter 1
Introduction
Origin Of Bank:
It is very hard to collect the correct information of the origin of bank. The World
Bank has derived from the Italian world “Banco”. Which means accumulation of money of
stock. The world of “Banco” is origin and evaluation of bank. The Banco means “Bench” So
it can also be said that bank is to stay in chair one place and do the money the business and
banking play significant role in the development of country, the bank of Venice that was
established in 1158 AD was the first hank in the history of banking. The bank of Barcelona
Spain, which was the establish in 1401 A.D was the second bank of the world. The first
center bank was the bank of England whit was established in 1844 AD.
Meaning of Bank
According to G. Growther:-
“A Bank is a dealer in debt in his own and other people are the bankers business is them to
take the debt of other people to otter his own in exchange and thereby to credit money.
Therefore the bank is an institution which accepts deposits from the public and, it turn
advances loan by crediting bank plays the ital role in the economical condition too and
creates money administer the payment system interest rates and intermediate between the
saving and investment.
The modem banking practices are recent origin our country historical evidences show
the presence of some crude banking practices in the earlier period of time. The contributors to
the respective time ate considered to be King Guna Kam Dev a sudra merchant Shankhadhar
the business group. "Tankadharies" of Kantipur and also Tejarath a government financial
Institution established by Rana Prime minister Rannoddip Singh. More over the setting up of
"Tejaratha Adda" Considered as the father of modern banking institution in Nepal.” has been
regarded as the first remarkable step in organized banking.
The first bank to be initiated in Nepal was the commercial bank. The pioneer in the
modem bank the history of Nepal Bank Limited, which was established in the year 1994 BS
of 30 Kartik Nepal's Center Bank Rastriya Banijya Bank was established in 2013 BS of
Baisakha to perform the function of Center Bank in Nepal. Subsequently another State owned
commercial bank. Rastriya Bank Ltd was established with join venture of Habib Bank of
Pakistan. Nepal SBI Bank followed Himalayan Bank Ltd. in the year 2051 BS. Nepal
Bangladesh Bank followed Himalayan Bank Ltd. in the year 2051 BS. Nepal Bangladesh
Bank Ltd. Everest Bank Ltd. and Bank of Kathmandu Ltd. were established in 2051 BS. Now
in Nepal so many commercial banks are established run for smoothly.
Principal of Banking & insurance Sharejung Khadka & Hridhaya Bir Singh
Banking has conic to the present advanced form through various stages. Some sort of
banking activities have been carried out since the time immemorial. Traditional forms of
banking were traced during the civilization of Greece, Rome and Mesopotamia. As early as
2000 BC as a joint stock bank later in 1844 AD it became the first central bank in the world.
The goldsmiths and landlords were the ancient bankers of Nepal as in other countries.
They lent money against the deposit of gold, ornament or securities of land. The
moneylenders charged high 1933 BS (1876 AD) but it did not carry out all the banking
activities. Tejarath Adda did not collect deposit form the public but gave loans to employees
and public against the bullion. However Nepal Bank Limited was the first and real
commercial bank in Nepal, which was established in 1994 BS(1947).
Nepal Rastra Bank, the central bank of Nepal was established in 2013 BS (1955 AD)
In 2024 BS an industrial bank namely Nepal Industrial Development Corporation (NIDC)
was established. of Nepal Rastra Bank. In 2042 BS Nepal also adopted liberal free economic
policy and allowed to establish other joint venture banks under collaboration with foreign
banks as well as under private sectors. At Present there are about 15 commercial banks with
many branches are operating in Nepal.
Finally, a bank is an institution, which deals with money by accepting various types of
deposit disbursing loan and rendering other financial services. Since banks are rendering a
wide range of services to the People different walks of life, they have become and essential
part of modern society.
Commercial Bank
A commercial bank is a financial institution which collects saving from many persons
and institutions and provides credit or loan facility to different industrial and commercial
business. Commercial banking business consists of changing cash into hank deposit and bank
deposit into cash, transferring bank institution to other, giving bank deposit in exchange for
cheques. Bills of exchange, government securities etc.
Nepal Bank Limited established in 1994 BS is the first commercial bank in Nepal.
Commercial banks perform various functions. Among them accepting various types of
deposit is the main faction of commercial banks.
Commercial Bank
1. Nepal Bank Limited
2. Rastriya Banijya Bank
3. Nepal Indosuez Bank
4. Nepal Arab Bank Limited
5. Nepal Grindlays Bank Limited
6. Himalayan Bank Limited
7. Nepal SBI Bank Limited
8. Nepal Bangladesh Bank Limited
9. Everest Bank Limited
10. Bank of Kathmandu
11. Bank of Ceylon
12. Lumbini Bank Limited
13. Nepal Industrial & Commercial Bank Limited
14. Laxmi Bank Limited
15. Kumari Bank Limited
16. Nepal Investment Bank Limited
17. Machhapuchhre Bank Limited
Nabil Bank Limited (Nabil) commenced its operation on 12 Jul, I984 as the first joint
venture bank in Nepal, Dubai Bank Limited. Dubai (Later acquired by Emirates Bank
International limited, Dubai) was the first joint venture partner of Nabil. Currently NB
(international) limited. Ireland is the foreign partner.
Nabil Bank limited had the official name Nepal Arab Bank Limited till 3lst December
2001. Nabil is the pioneer in introducing maims innovative products and marketing concept
in banking sector of Nepal with 15 venture and private banks operating in Nepal. Success of
Nabil is a milestone in the banking history of Nepal as it paved the way for the establishment
of many commercial banks and financial institutions.
Nabil provides a full range of commercial banking services through its outlets spread
across the nation and reputed correspondent banks across the globe. Moreover, Nabil has a
good name in the market for its highly personalized services to the customers. At the time of
commencement it had Rs 100 million as Authorized Capital. Now, the Authorized capital of
the bank is Rs. 500 million while the issued and paid up capital is Rs. 49,16,54,400.
Figure A
Share Holder
N.B.
20% (International),
Ltd., Ireland
Nepalese Public
50%
Nabil cordially
invites you to visit its branches/counters to have the taste of fledge banking services
Branches
Figure B
Products &
Services
Safe Deposit
Tele- banking Transfer Fund
Locker
Deposits
Following types of accounts can he opened at any NABIL branches upon completion
of simple documentary requirement. All the accounts can he opened in various currencies
(against which rate are provided) subject to ruled of opening and fulfilling the required
documents.
Savings
Current
Fixed
Call
Guarantees
NABIL Bank issues guarantees and Bonds on behalf of customers to the beneficiaries
in Nepal. Upon fulfillment of requirement, NABIL, also arranges issuance of guarantees in
the name of foreign beneficiaries through reputed international banks.
Credit Cards
NABIL is the first bank in Nepal to issue Rupee (valid in Nepal and India) and
international valid worldwide) Master card, cards in Nepal, a global prestigious service to its
esteemed clients NABIL is also expanding credit and facilities issuing visa credit card very
soon.
Tele-banking
NABIL bank has established unique money remittance system with western union
financial service whereby money can be remitted anywhere in the world within minutes,
through online computer system funds can world. Nepali wage earners abroad can send
money to their near and dear ones in Nepal within a very short time. By using the above
services, you can now send and receive money within minutes in 165 countries in the world.
NABIL has started Worldwide transfer of fund by this fast and efficient funds transfer
and messaging system. Messaging and fund transfers are carried through SWIFT with
minimum time and cost.
Safe Deposit Locker
NABIL provides safe deposit lockers to keep valuables safety at a minimum cost.
Presently, this facility is available at Kantipath and Kamaladi offices.
Automated Teller Machines (ATM)
NABIL has launched the ATM facility to its account holders to enable fast
withdrawal of funds in account holder need not wait long hours for withdrawing money and
sign cheques anymore. A simple card with a unique PIN number known only to the account
holder will suffice.
Other facilities
The bank provides the facilities for the customer like deposit services, loans and
advances, consumer finance, cash management. remittance services etc.
Introduction To Deposit
Among many functions of a commercial bank the main function is deposit function
which all the commercial banks perform in simple terms, deposit is a function of collecting
surplus from savers. Bank accepts deposit from those that can save but can’t utilize
profitably. People accidents, the deposit of commercial banks is increasing because people
know its importance. So banks accept money on current saving. Banks utilize efficiencies to
attract more deposits to increase credit activities. Deposits are with draw able according to
the terms of contract with the depositors to attract the people o deposit the bank maintains
different types of deposit accounts.
Deposit is the major source of fund of commercial bank, which is generated in the
hands of customers, government, corporate bodies, public enterprises, individuals and others
and a surplus.
Main features
1. Purpose: saving, fixed or call (short term)
2. With maturity or without maturity
3. Interest bearing and non interest bearing
It interest bearing:
Calculation of interest on monthly minimum balance, or average balance
Payment of interest quarterly or semi annually
Types of Deposits
a. Saving Deposit
The pm pose of saving deposit is to encourage the habit of saving among the common
people and institutions. Saving deposits attract interest which is normal less than that of long-
term deposit but more than that of short-term deposit. There is restriction in this account to
withdraw any amount. The with more funds for the credit activities, interest is paid in this
deposit account.
According to Commercial Bank Act, the saving account means an account of amounts
deposited in a bank for savings purposes.
Saving Account are generally opened for the savings of customers (individuals,
nonprofit organization, charitable trusts, clubs, associations and cooperative) who want to
save for meeting future needs, Savings accounts is suitable for the customers who do not
want to withdraw frequently or who do not want to keep certain amount for fixed long period
Another source of deposit is the fixed deposit account. Money in this account is
deposited for a fixed period of time, which cannot be withdrawn before the maturity of time.
The rate of interest on this account is higher than other accounts. It is also known as time
deposit. General this is for three months to five years.
According to Commercial Bank Act, fixed account means the account of amount
deposit in a bank for a certain period of time.
c. Call Deposit
The banks may accept deposit for short period of time to meet the short fall and such
deposits secured from money market and having element of overnight stay is called call
deposits. The rates of interest of such funds are not fixed hut are dependent on demand and
supply of funds in the money market. Such all deposits become payable on demand and
hence such deposits become payable demand and hence such deposits are considered demand
liabilities of the bank.
i. Non-operative
ii. Short term: overnight stay
iii. Interest rate not fixeda
iv. Payable at demand
d. Other Deposit
It is a scheme of special type of deposit where some specified amount of money for
specific period of note is accepted as deposit against a certificate given by the banker to a
customer. A bank issues such the principal amount and will issue the will issue the
certificate for such amount which will include the interest payable at maturity on the
amount deposited. On maturity date any person presenting the certificate at the bank can
encase the same. Such types of deposits are considered as time liabilities.
i. No yield
As the cost of providing the facilities of current account becomes considerable to the
banks do not pa any interest on the balance of current account.
There is no limitation on withdrawal and deposit of any amount within banking hours
Privileges
Overdraft facilities are provided to current account holder only. The banks normally
sanction the loans and advances through current accounts since they are not given in
cash.
The customer who comes to hank with a desire to open an account in the bank should
complete the application from designed in prescribed format. NABIL Bank also has
its own The required to fill up the name, address, occupation, nationality etc. about
the customer. The form is designed with a declaration that the applicant should accept
that he should comply with the banks rule on force from time to time for the operation
of the account.
2. Reference /Introduction
The selection of the customer is regarded to be done by the customer very carefully.
After being satisfied about the identity of the account opening individual or film, the
banker should take person incapable of making a valid contract. In such a case banker
does not get any protection under Negotiable Instrument Act and is considered guilty
of negligence.
3. Specimen Signature
The bank has Its own specimen signature card which is provided to the customer for
putting one or more specimen signatures of him. These cards are indexed and placed
in a visa desk in numerical order. These signature specimens are used by the bank bar
issue and payment filing into hands of unauthorized persons and also to exclude the
chance of replacements of it by fraudulent card.
1. The account opening form and specimen signature cards are required to be filled
up mid submitted I he details in the form shall he checked by the account opening
official, signature in the specimen he verified. The proposed account opener must
be percent at the time put signature in specimen Signature ear in front of the
account opening official
2. After being satisfied with the document and account and account opening from it
is placed before the manager for approval. The document required for current
accounts are as follows.
a. Registration certificate
b. Income tax certificate
c. Citizenship certificate of the proprietor.
a. Registration certificate
b. Income tax certificate
c. Partnership deed
d. Citizenship certificate of the partners
a. Registration certificate
b. Income tax certificate
c. ]Board resolution for operation of account.
d. Memorandum and articles
e. Citizenship certificates of the directors
a. Registration certification
b. Board resolution
c. By laws
d. Citizenship certification
(Those customers who fall under VAT payer should also provided a copy of VAT
Registration certificate)
Note: Copy of citizenship certificate in case of individual saving (for opening saving
account in the name of associations, cooperatives, non-profit organizations like NGOs,
charitable trust all the documents are required are required as in point (iv) above in case of
current account is required).
3. Then the account opening official should allot an account no from basic number
register in both the form and specimen signature card.
4. Account is opened in the computer also.
5. The particulars of account opening form and the account number is entered in the
respective account opened and register.
6. Against the request for cheques book as mentioned in account number is entered
in the cheques leaves are printed, blinded at the end of business hour and provided
to the customer along with letter of banks next day. The cheques book numbers
shall be recorded in the cheque book issue register and handed over to the part
against his her acknowledgement.
7. The signature is scanned from the specimen signature card and placed fir final
approval to the manager.
8. After the final approval the account opening form is filed in numerical order in the
respective account type file.
1. Separate account opening form for fixed deposit is designed. The customer
wishing to open a fixed deposit account shall till up such form and put the
signature in the specimen card, which is same as in the case of saving and current
account opening.
2. The form contains the rate of interest, period, amount and the nominee account for
crediting the interest and two witnesses along with nominee form in the back.
3. The account opening official after being satisfied with the form allots a number
from the basic number register and puts in the form.
4. The accounts opened in the computer and details are entered.
5. The details such as name, date of opening, rate of interest, maturity date, nominee
a/c for interest should be recorded in fixed deposit register.
6. In case of fixed deposit being opened through the cheques, the official looking
after the fixed account does the transaction. In case of back to the account opening
official.
7. Then the account opening official shall issue the fixed deposit receipt.
8. The account opening form, specimen signature card, fixed deposit receipt and the
voucher are placed before the manager for the final approval and signature.
9. Upon completion of full formalities as above the fixed deposit receipt is handed
over to the customer against his/her acknowledgement on the counterfoil of the
fixed deposit receipt.
10. The account opening form is filed in the numerical order in a separate file. The
specimen signature card is placed is placed in the visa desk in numerical order
once its gats scanned and approved by the manager.
Statement Of Problems
As we know that the main objective of any business organization e.g. Bank. is profit
maximization. Deposit mobilization is the key factor to attain this objective: therefore, if the
bank fails to employ its funds suitably it is not possible to maximize profit. A bank has to
make decisions with a framework of statutory requirements of credit regulation by center
bank, as well as the national objectives that are determined in the matter of the provision of
credit from time to time.
Through the banking system is making much progress, the progress has been set up
with the problems and hindrances. the banking system and do not know the importance of
bank. Bank concentrate only in the city so that the villages have to take a loan from money
Lander at a high rate of interest. Most of the people keep their saving idle or give it to others
to use it in greed of more interest.
Deposit collection is the major function of all commercial banks, which help to carry
out almost all transaction of the bank. Mostly among the various deposit features provided by
commercial banks, fixed and saving deposit are considered to be more important In the case
of term deposit although the this deposit can be invested in short term loans with higher rate
of return (interest) and hence it helps to earn high profits.
So the deposits in the commercial banks have a good contribution to the country
economy. If deposits are well intends to give general information regarding banking, deposits
and prospects of the deposit and its mobilization in the country, which may give the general
idea about banking, and deposits
the objective of this fieldwork is to analyses deposits collected in NABIL. The study
intends to present a brief and clear picture of deposit and its utilization. The objective of the
study includes.
- To find out deposit trend of NABIL bank.
- To find out the deposit mix.
- To analyses the cost of deposit
- To analyses whether the deposits are being properly utilized or not
The study does not present detailed analysis of deposit in NABIL due to lack of time
relevant data and resources. This study is limited to the information that was available from
the bank and other sources.
- Annual reports of NABIL
- Annual reports of NRB
- Articles in Newspapers, journals, booklets, issues published by financial institution.
Methodology Of Research
Research Design
The research methodology is the process of arriving to the solution of the problems
through planned and systematic dealing with the collection, analysis and interpretation of
facts and figures. As the research entirely considers about the about “Deposit Analysis of
NABIL Bank” The been used which proves helpful to deposit analysis. For the purpose of
achieving the objective, the following methodology is used. The data has been collected by
acquiring various kinds or reposts, bulletins and journals from the organization. Similarly
data has been acquired from NRB also.
Sources of Data
For the preparation of this report different kinds of books are followed. In this report,
all the data collected is secondary in nature. Almost all the data has been collected form
published annual reports, brochures etc. Mostly all the data are collected from the concerned
bank.
In this study the main source of data is secondary which are collected from pre-
publisher data sources. The secondary data sources used in this stud are:
Internal source
Annual reports of NABIL
Interim performance report
External source
Book publications
Journals
Articles from newspapers
Annual reports of NRB
Data Processing Techniques
The data collected from the above stated sources has been classified tabulated and interpreted
for easier study.
The data collected are classified tabulated and arranged in manner to make it easily
understandable with the use of tables in chronological order. After classification the data is
tabulated.
Various diagrams are used to present the data more clearly. The diagrams used are
follows:
Bar Diagram
Pie Chart
Line Graph
Bar Graph
SWOT Analysis
None of the organizations is perfect in each and every way. I here are some
weaknesses and threats, which affect the organization’s performance. It may have lots of
strength to be proud of but besides with some weakness and threats as well. And the
organization does not remain same forever there will be lots of opportunities in order to
expand the transactions. So NABIL has also its strength to be proud, some weakness to be
recovered and threats to be faced patiently.
Strength
Weakness:
a. The Increase in the number of branches increases the cost operation. Administration
expenses for personnel etc. are increased.
b. The political instability in the country can he considered another weakness of the
bank.
c. Too much dependency in computers is not considered to be reliable.
d. NABIL pays high interest rates on deposits. For this reason the bank also charges high
interest rates on credit, which has bad impact in investment situation in nation.
e. Staff is unwilling to give even required information. It seems that they don’t want to
cooperate with once who are not really its customers.
Opportunities
a. A lot of people deposit their fund in this bank due to its skill in
attracting people by adopting attractive policies like high interest rate, prompt
services, credit card service, ATM etc.
b. Staff can perform their work more efficiently with the help of
computers. The environment of the bank is sound which helps to enhance its stall bar
its better profitability.
c. People in various sectors get employed through this bank, which has
highest number of branches among joint venture banks in the nation.
d. Citizens of underdeveloped country like Nepal get the favorable chance
to show their inner skills and talent.
e. The policies of the HMG and NRB rules and regulation always give
confidence to the banking sector to uplift the economy of the nation.
Threats
a. Banks must land and invest its fund to parties having good reputation.
Otherwise the bank will have to regret later on.
b. Excess government pressure may create irregular banking transaction,
which leads to bad reputation of the bank.
c. The economic condition of country is deteriorating.
d. There is increasing number of competitions. Now there are 13 commercial
banks, which include 9 joint venture and 45 finance companies.
e. The bank should be discouraged to open account for the individuals or
firms having bad reputation. It May be a threat, which can ruin the bank.
Summary
A bank is an institution which deals in money. A bank is like a reservoir. It draws surplus
money from the people who save and lend them to the people who want to use it for
productive purpose. In this process the bank earns commission. The rate of interest paid to
the depositors is generally lower than the rate charged to the borrowers. The difference
between these two rates of interest is the profit of the bank. Deposit collection is the main
function of commercial bank.
The present study has been undertaken to examine and evaluate the financial performance of
NABIL. The financial statements of five years that is from 2000/01 to 2004/05 have been
examined for the purpose the study. The study has resorted mainly to secondary data that has
been first processed and analyzed comparatively. Individual interview with the management
personnel has been taken whenever necessary. This study is exploratory as well as analytical
sometimes.
NABIL was established in 12th July 1984, which was the first joint venture bank in Nepal.
Among many joint venture banks, it is a leading one, which is always running in profit due to
its proper management and good policies. Data that I have presented is all from the secondary
sources, which are in the annual reports or other printed matters.
A customer can be account holder when he opens account. There are the numbers of rules
and procedures regarding opening different types of accounts. The interest rates on different
accounts are different.
Conclusion
Recommendations
i. Although NABIL has a strong financial base and capital structure as well as
good market status and reputation in order to attract new customers and
increase deposit collection NABIL should introduce new schemes.
ii. Customer services should be diversified and should further be accommodated.
iii. Interest rate on deposit should be competitive with other commercial banks.
iv. The bank should aim towards increasing its customers but it must also provide
the quality services to the present customers. For this the bank must make
plans and policies keeping customers in mind.
v. Bank should also pay attention towards the priority sector and industrial sector
for lending loans to develop the economic condition of the country.
vi. Bank should provide more facilities to the staff, it has to provide job
satisfaction, training and should encourage its staff.
BIBLIOGRAPHY