Table of Contents

CHAPTER - I : INTRODUCTION
1.1 Origin of Bank............................................................................................2
1.2 Introduction to Bank..................................................................................2
1.3 Introduction to the Everest Bank Ltd.:.......................................................3
1.3.1 Functions of Everest Bank Ltd.:...........................................................5
1.3.2 Introduction of study (Deposit mobilization of EBL).............................6
1.3.2.1 Deposit...................................................................................................................6
1.3.2.2 Deposit Mobilization..........................................................................................9
1.3.3 Organizational Structure of EBL.........................................................10
1.4. Statement of the problem.......................................................................13
1.5. Importance of the Study.........................................................................14
1.6. Objectives of the Study...........................................................................14
1.7 Research Methodology.............................................................................15
1.7.1 Sample Unit.......................................................................................15
1.7.2 Nature and sources of Data...............................................................15
1.7.3 Data collection procedure..................................................................15
1.7.4 Data processing.................................................................................16
1.8. Limitations of the Study..........................................................................16
1.9. Statistical and mathematical tools:........................................................16
1.10 Organization of the Study......................................................................17
CHAPTER - II : PRESENTATION AND ANALYSIS OF DATA
2.1 Meaning of Presentation and Analysis of Data:........................................18
2.2 Fixed Deposit to Total Deposit Ratio......................................................20
2.3 Trend of Fixed Deposit of EBL...................................................................21
2.4 Total Credit to Total Deposit Ratio............................................................22
2.5Total Investment to Total Deposit Ratio....................................................23
2.6 Trend Analysis..........................................................................................25
2.7 Major Findings..........................................................................................26
CHAPTER - III : SUMMARY, CONCLUSIONS AND RECOMMENDATION
3.1 Summary.................................................................................................27
3.2Conclusions:..............................................................................................27
3.3Recommendation......................................................................................28
1

Bibliography

CHAPTER I
INTRODUCTION

1.1 Origin of Bank

The
world Bank derived from the French word Banque and Italian word Banco
it referred to a bench. At that time there were some moneylenders sitting in
the bench for keeping, lending and exchanginzg of money in the market
place. That was the origin of commercial bank in the banking history.
The origin of bank and bank notes in Babylon start in 600 BC. And the
Bank of Venice of Italy was established in the middles ages. In Nepal
custom and tradition begun before 8th century. According to Corwther,
modern banking has three ancestors. They are:Merchant, Goldsmith and Moneylender

1.2 Introduction to Bank

A bank is institution, which deals with money. Bank can defined as the
financial

intermediary

between

depositors

and

entrepreneurs.

The

intermediation takes place when banks accept deposits from general public
Co-operate bodies and private organization and utilized those deposits in for
profitable purposes in the form of loan and advances. So bank is main source
for the regulation and channel of the saving of the community as well as
makes such uses of saving by making it available to productive and priority
sectors of economy which guide the nation on growth and development path.
The following definitions given by various author help to known the meaning
of bank.
According to Kent A bank is an organization whose principal operation is
concerned with the accumulation of the temporarily idle money of the
general public for the purpose of advancing to other for expenditure.
According to C.R Crowther A bank collects money from those who have it to
spare or who are saving it out of their incomes and it lends money to those
who require it.
By these definitions bank can be known as the dealer of money which
accepts deposits from the public and mobilizes the fund to productive
sectors. It also provides remittance facility to transfer money from one place
to another.
In conclusion, Bank is a financial institute established by a specific law,
for the deposit, loans exchange or issue of money and for the transmission of
funds. In other words we can define that, a bank is a financial supermarket
providing all kinds of monitory service, which is necessary for all the
economic development of a country. Without bank it would be quite
impossible for industrialists and entrepreneurs to go directly to general
public for getting their saving for the investment.
3

1.3 Introduction to the Everest Bank Ltd.:

Everest Bank Ltd. (EBI) started its operation as a joint venture bank
with Punjab National Bank (PNB), one of the largest commercial bank in
India. It started its operation since 18 th Oct. 1994(1st Kartik 2051 BS). (EBI)
has been established with the objectives of extending professionalized
banking services and to contribute in the economical development of the
country. In order to promote a joint venture commercial bank in Nepal a
memorandum of understanding was signed between of the EBL is in
Lazimpat and New Baneshwor respectively.

Everest Bank Ltd has objective of expanding its banking services in all
over the country in the most effective and efficient way. It us providing the
remittance service to its customers. Many of its branch offices have been
computerized to provide better function. It has further plan of E-Banking in
practice. Currently its 9 Branch offices are adjoined with ANYWHERE
BRANCH BANKING SYSTEM (ABBS). It is also providing ATM services to its
customers. It has altogether fifteen branches operating all over country. And
they are as below:

S.

Branch Offices

N
1

Baneshwor Main Branch, Kathmandu

2
3
4
5

Nepal
Newroad Branch, Kathmandu Nepal
Teku Branch, Kathmandu Nepal
Pulchok Branch, Lalitpur Nepal
Satungal Branch, WBL House

6
7

Kathmandu Nepal
Lazimpat Branch, Kathmandu Nepal
Biratnagar Branch, Biratnagar Nepal
4

8
9
10
11
12
13

Duhabi Branch, Sunsari Nepal

Janakpur Branch, Janakpur Nepal
Birgunj Branch, Birgunj Nepal
Simara Branch, Samara Bara Nepal
Butwal Branch, Rupendehi Nepal
Dhangadi Branch, Dhangadi Kailali

14
15

Nepal
Bhairahawa Branch, Bhairahawa Nepal
ICD(DRY PORT)
(Source: Annual report Of EBL)

1.3.1 Functions of Everest Bank Ltd.:

To achieve the objectives, bank performs various functional activities.
"Principally, commercial bank accepts deposits, provides loan, primarily to
business firms there by facilitating the transfer of funds in the economy."
Everest Bank Ltd is also commercial bank. Profit maximization is the main
objective of Everest Bank.

1.

Primary function:

The primary functions of commercial banks are as below.

a) Acceptance of deposits:
Being a Commercial bank, EBL collects money from public in
different types of deposit a/c.
i.

Current/demand deposit a/c.

ii.

Saving deposit a/c.

iii.

Fixed deposit a/c.

b) Advancing of loan:
Everest bank provides the requited loan credit to various sectors
of economy such as industry, trade, agriculture, business etc. In this
way bank creates credit. It provides loan various procedures in
different form such as:
i.

Discounting of bills of exchange.

5

ii.

Over draft.

iii.

Loan at call or short notice.

iv.

Cash credit.

v.

Direct loan with collateral.

vi.

Education Loan scheme.

2. Agency function:
Everest bank also performs the agency function for which it acts as
agent and takes commission providing facilities:
i.

By under write the govt. and private securities.

ii.

By collection of customers money.

iii.

By receipt and payment of dividend, interest, tax, liability.

iv.

By financial advisory services.

v.

By providing security service.

3. General utility functions:

Everest banks also perform general utility functions such as:
i.

Keeping valuable things safe custody.

ii.

Collection and payment of cheque, bill, promissory notes etc.

iii.

Dealing in foreign exchange.

iv.

Collection of trade information and banking statistics.

v.

Remittance of money.

1.3.2 Introduction of study (Deposit mobilization of EBL)

1.3.2.1 Deposit
As the production requirement us raw material, there is equal
importance of deposits for banking transaction. According to the act of
commercial bank 2031, if section 2, deposit is defined as the cash of current
account, saving account and fixed deposit account of any financial
institution. The cash, which is mot frequently needed for businessman,
general public and industrialists, comes in a bank as deposit. Deposits are
6

the main source of fund from commercial banks. The bank flow such deposit
as loan and invests it in productive sector to gain interest and bonus.
Type of Deposit
Generally there are two types of deposit.
a) Interest bearing deposit.
b) Non-Interest bearing deposit.
It is clear from the heading itself that interest bearing deposits are those in
which the bank pays interest. On the other hand non-interest bearing
deposits are those in which banks do not pay personal customers, who
deposit their savings for safety as well as to earn interest, whereas noninterest beating deposits are designed for business customers who look for
safe and swift frequent monetary transaction. Saving Deposit, Fixed Deposit
and Call Deposit whereas Current Deposit and Margin Deposit are noninterest bearing deposits.
Current Deposit
Current deposit is also known as demand deposit as the deposit is
withdrawal on demand. Since banks have to maintain high liquidity to meet
customers demand, no interest is paid on such deposits and thus it suits for
business customers who have to withdraw fund very frequently. Its
transaction is continual and such deposit cant be invested in the productive
sector, so such type of amount remains as stock in the bank. Though the
bank cant gain profit by investing I in new sector after taking from the
customer, this facility is given to the customer. Therefore, the bank doesnt
give interest on this account. From such deposit, the merchants and traders
are benefited more than the individual.
In any institution which carried out cash transaction, there is possibility
of corruption, misuses and fraud. There should be a provision of separate
employees for the recovery of the cash and for the payment of the cash. The
7

current account is very necessary to collect and buy the bills, to use the
facility of over-draft, letter of credit, remittance etc. Current deposit on the
one hand, save time and labor and on the other hand, the bank keeps the
accurate account of the account holders, so it is a great facility for the
customers.
Margin Deposit
Banks issue L/C, Guarantee, and indemnity etc, on behalf of customers
for a specified sum of money and these amounts have to be paid to the
beneficiaries, provided they claim as per the terms and conditions which
lead the banks to contingent liability. To reduce the liability, banks ask the
customer to deposit certain amount as the margin of safety, which is called
margin deposit. No interest is paid to this deposit.

Saving Deposit
According to the Commercial Bank Act 2031, saving account means
An account of amounts deposited in a bank for savings purpose. Deposit in
saving account has also become one of the features of commercial banks.
The account can be opened by anybody or on behalf of relatives. Saving
deposit is a kind of time deposit limited to draw money under we take saving
as demand deposit limited to draw money under certain fixed amount
according to the rule of the bank. The account can be opened jointly or
individually. A specimen of his thumbprint and photograph attached in
passbook.
This account is suitable and appropriate for the people of middle class,
farmers and the labors who have low income, officials and small
businessmen. This saving deposit bears the features of the current and fixed
period deposits.

Saving deposit is basically for personal customer who require safety as

well as an opportunity of withdraw though not so frequently. Interest is paid
on this deposit, which is one more reason for people to be attracted toward
this deposit.
Fixed Deposit
Under the Commercial Bank Act 2031(1974),Fixed account means an
account of amount deposited in a bank for certain period of time. The
customers opening such account deposit their money in this account, for a
fixed period. In other words, it is called time deposited for a certain period. In
fixed deposit the interest rate is even higher but depositors are prohibited to
withdraw their deposit before the maturity of deposit period, which is fixed
before hand. Hence depositor receives higher income but lose liquidity on
their assets.
Usually, only the person or institution that wants to gain more interest
opens such type of account. More interest rate is payable in this deposit than
other deposits. Both parties the bank and customers, can take benefits from
this deposit. The bank invests this money on the productive sector and gains
profit and the customer too can be made his financial transaction stronger by
getting more interest from this deposit. The amount calculated in the fixed
deposit must be returned to the customer after date is expired.

Call Deposit
Call Deposit incorporates the characteristic of current and saving
deposits current in the sense deposit is withdrawal at call and saving in the
sense the deposit earns interest. Withdrawal restriction is not imposed on
call deposit but the balance shouldnt go blow agree level.

1.3.2.2 Deposit Mobilization

The major obligation of bank is to give depositors their money when
they want it. But no bank keeps enough cash to meet its depositors claims if
they all demand their money on the same day. Banks know from experience
that such heavy withdrawals, called runs, rarely occur. If people are confident
that they can get their money back, they will leave it at the bank until they
need it. As a result, banks can safely loan or invest a large percentage of the
fund deposited with them. In most countries, the government specifies the
percentage the percentage of their funds available for possible withdrawal.
Like all business, banks try to make a profit. They do so by collecting
money from their depositors at low rate of interest and lending the funds at
higher rate. Banks uses some of their income from loans to other operating
expenses and interest on deposits. The remaining money is their profit.
The main function of commercial bank is to collect the idle money from
the society and invest them in various profitable sectors in order to earn
income to maximize the shareholder equity. The commercial banks provided
or lend the loan them who need it lend the money for the establishment of
the industry or for other propose. So by investing its accumulated in society
welfare programme it helps in economic development for the country. It
offers the loan not only to the person but against the government bonds too.
Earning profit is the main theme of the commercial bank. The main
objective of the sound deposit mobilization is as follows:
a) To have good assets.
b) To contribute to economic development.
c) To give guidance to officials.
d) To establish a standard or country.
As foreign capital has limitations and adverse implication on the national
economy. So one country cannot depend on this source for a long to meets
its expenditure and mobilize adequate resources for investment and
10

development. The bank deposit is one of the major sources of mobilizing

saving of the country. The role of EBL in mobilizing saving of country in many
sectors is significant. The bank is encouraging people to save and deposit
some portion of their income in the organized sector like bank. As a result
the deposit of the bank has recorded a significant growth in past years.
Table1 indicates the growth in the different type of deposit of EBL over the
period 2063/064 to 2064/065.
Table 1
Different types of deposit of EBL
Amount (in Rs.)
S.N.
1
2
3
4

Deposits
Current deposit
Saving deposit

FY2066/067
1,67,39,83,140
9,02,92,55,366

FY2067/068
2,49,23,46,111
11,88,38,57,17

Fixed deposit
Payment at call

1
5,62,66,61,717 6,44,61,81,289
1,57,34,96,439 2,78,06,47,781
(Source: Annual report of EBL)

We can see the deposits of EBL higher the deposits of bank higher the
level of investment and can obtain benefit from higher investments.
1.3.3 Organizational Structure of EBL
Figure No.1
Organizational chart

11

1.3.4 The Capital Structure of Everest Bank Ltd is as follows:

Table No 2
Capital structure of EBL
Share Capital
Authorized Capital

FY 2066/67 Rs.

FY 2067/68 Rs.

65,00,000 ordinary

65,00,00,000

65,00,00,000

15,00,00,000

15,00,00,000

20,00,00,000

20,00,00,000

shares @ Rs.100 per

share
15,00,000 9%
cumulative non
redeemable
preference shares @
RS 100 per share
20,00,000 7%
Cumulative
convertible
preference shares @
Rs. 100

12

Issued Capital
49,32,000 ordinary

37,98,00,000

49,32,00,000

15,00,00,000

15,00,00,000

20,00,00,000

20,00,00,000

37,80,00,000

49,14,00,000

14,00,00,000

14,00,00,000

share @ Rs.100 per

share 15,00,000 9%
cumulative non
redeemable
preference shares @
Rs.100 per share
20,00,000

7%

Cumulative
convertible preference
shares @ Rs. 100

Paid up Capital
49,14,000 ordinary
share @ Rs.100 per
share 14,00,000 9%
cumulative non
redeemable

20,00,00,000

preference shares @
Rs.100 per share

20,00,000 7%
Cumulative
convertible preference
shares @ Rs. 100

(Source: Annual Report of EBL)

Holding of Share Capital

Nepalese Promoters

50%

General Public

30%

PNB, India.

20%

13

The share structure of EBL can be shown with help of Pie-chart.

Figure No 2
Share Structure of EBL

Holding of share capital

20%
50%
30%

Nepales Promoters
50%
General Public
PNB India

30%

20%

14

1.4. Statement of the problem

The studies access the prime problem relating to following areas.
i.

How far has been EBL able to mobilize monetary resources from
savers to users?

ii.

What is the condition of EBL relating different deposits?

iii.

How far the portion of deposit has been used as investment and loan?

iv.

How far the deposits have been efficiently mobilized?

v.

If there is inefficient management or lack of training or proper

inspection?

vi.

The suffering from past and present?

vii.

How sound is the operational result of EBL?

1.5. Importance of the Study

After the detailed study of the filed work report, the readers will find the
following significance.
a) The readers may obtain a lot of useful information regarding the
various account of Everest Bank Ltd. Such as structure of deposit,
trend of deposit, utilization if deposit, etc.
b) How the bank earn the maximum profit from its deposit through the
efficient mobilization of deposit.
c) How the bank can help in the economic development of the country.
d) The reader easily can find out the status of fixed deposit, saving
deposit and current deposit of Everest Bank Ltd.
e) It helps to complete BBS 3rd year education
f) It can be a good asset of library and guideline for other report writer.
15

g) The report may be useful for Banks as the suggestions and

recommendation have been provided.
h) Lastly the government can obtained the necessary information to
amend and improve its rules and regulations regarding deposit to
meet the requirement of the nation.

1.6. Objectives of the Study

The main objective of the field work repot is to study the deposit
mobilization of Everest Bank Ltd. Being one of the best joint venture bank of
Nepal. The main objectives of the study are given below.
a) To find out the used portion of deposit as investment and loan.
b) To examine how far the deposits have been efficiently mobilized.
c) To sketch the trend of deposit of Everest Bank Ltd.
d) To compare various kinds of deposits with total deposit of Everest
Bank Ltd.
e) To evaluate the utilization of deposits of various accounts.
f) To find the problems and make recommendation for the solution.

1.7 Research Methodology

1.7.1 Sample Unit
I have felt very comfortable to come to the choice of research
methodology. Research Methodology refers to the various sequential to
adopt by a researcher in studying a problem with certain object Everest Bank
Ltd. The study will draw the conclusion to the point that the position of
Everest Bank Ltd, has got in whole commercial bank of Nepal and
recommend the useful and meaningful points so that all concerned can
achieve something from this study. To meet this goal, the study follows the
research methodology described in this chapter.
16

1.7.2 Nature and sources of Data

The study has used secondary data mostly. The research designed is
based on the descriptive method. The nature of data is secondary. It covers
the period of F/Y 2066/67 to F/Y2067/68. Being the secondary nature, data
have been collected from the Annual balance sheet of Everest Bank Ltd,
monthly bulletin, share application form, official records and from local news
paper. By the following data different sources have been compiled in one
format presented and refined by the simple arithmetic rules. Regular facts
are selected analyzed presented in the form lf tables charts and graphs.

1.7.3 Data collection procedure

Since the field work is based on secondary data, there is no any
specified method used while collection of data. To some extend observation
method is used. The secondary data are compiled processed and tabulated
in time series. In order to judge the reliability of data provide by the bank
they were complied with annual report. Formal and informal talks with the
employees of share department and marketing department of Everest Bank
Ltd were also helpful to obtain the additional information about the topic.

1.7.4 Data processing

Various financial accounting and statistical tools have been used in this
study to achieve the objectives of the study. The analysis of data has been
done according to pattern of data available. The data are simply analyzed
because of time limit and sources. Some strong accounting tools have been
used for financial analysis. The various calculated results obtained through
financial and accounting tools are tabulated under different headings. To
interpret the result they are compared with the each others.
17

1.8. Limitations of the Study

This fieldwork report is simply a partial requirement for the degree of
BBS program. This fieldwork report has so many limitations which are as
follows:
a) This case study is only concentrated on Deposit Mobilization of
Everest Bank.
b) It is tough to get the required details from the institute.
c) The whole study is basically depends on secondary data collected
from the institute.
d) The study concerns only periods of last 5 years, from the fiscal year
2063/63 to 2067/68 and hence the conclusion drawn confined only
to the above period.
e) The detailed study is not possible.
f) First and foremost is the relevant data being only of Everest Bank
Ltd, and ignores the same of other commercial banks.
g) Time and resource were limited.

1.9. Statistical and mathematical tools:

In this reporting following tools are used:
Financial Tools:
The tools which are used to measure the financial performance of the
concern from long term as well as short term solvency point view are called
financial tools. There are wide range of financial tool that can be used in
analyzing the performance and financial soundness of the organization. In
the field work, mainly following financial tools are used.

18

 Total credit to total deposit ratio: it shows the ratio between total credit
and total deposit showing certain ratio of utilization of total deposit in
granting loan.

Total investment to total deposit: the ratio between total

investment to total deposit shows the ratio of utilization of total deposit
in Investment.

Statistical tools:
The mathematical tools that are used to forecast the future on the
basis of past data are called statistical tools .They help to express the data.
Mainly the following tools are used in the study.
Bar diagram: To represent two or more interrelated data, Bar diagram is
used. It consist a set of equidistance rectangles of equal width. And the
height of the rectangles is presented by the value of Variables.

Pie chart: A pie chart shows the proportion size of items that
make up a data series and is series and is useful to emphasize a
significant element. It is round in shape.

Standard Deviation: It is the statistical tools that measure the risk. It is

square root of Variance.

1.10 Organization of the Study

This study has been organized into three chapters. The titles of each of
these chapters are as follows:
Chapter - I: Introduction, objective of the study,

significance of the

study, limitation of the study, research methodology

Chapter - II: Presentation and analysis of data
Chapter - III: Summary, conclusions and recommendation

19

CHAPTER II

PRESENTATION AND ANALYSIS OF DATA

2.1 Meaning of Presentation and Analysis of Data:

This report is carried out to study and analyzed the fixed deposit of
Everest Bank Limited. For this purpose financial tools have been excessively
used. As financial tools ratio analysis, mean, percentage, trend line analysis
etc has been the major tools in the research. Basically the research questions
have been answered relying upon the secondary data.
1.

Gathered data are examined in relation to the objectives.

2.

Data are processed and grouped into several items or heading for
their analysis.

3.

Processed data are then present in the form of table's charts;

diagrams, figures, descriptions, historical narrations etc are used to
explain the relationship of the data analyzed.

4.

The uses of analytical and statistical techniques are made for better
interpretation of data to draw inferences.

5.

The results are explained in sufficient details to enable the reader to

have an adequate understanding of the work.

Total Deposit Trend of EBL

20

The main source of the bank is Deposit .So Deposit plays a vital role in
a banking sector through the deposit, the bank made profit by investing
money, providing short terms, mid terms and long terms loan.

Table No 3
Trend of Total Deposit of EBL
(In Rs. Thousand)
Fiscal Year
2063/64
2064/65
2065/66
2066/67
2067/68

Total

Deposit
8063900
10097700
13802400
18186250
23976290

Change
25.22
36.69
31.76
31.84

(Source: Annual Report of EBL)

%Change

Ending Deposit Begining Deposit

100
Begining Deposit

Figure No 3
Trend line of Total Deposit of EBL

21

Total Deposit
Total Deposit
30000000
Amount

25000000
20000000
15000000
10000000
5000000
0
2063/64 2064/65 2065/66 2066/67 2067/68
Fiscal year

From above table & figure shows that, the total deposit of EBL is increased in
each year from 2063/064 to 2067/068 In this figure, total deposit increased
by 25.22% in the fiscal year 2063/64 compared to the year 2064/65,by
36.69%in the year 2065/66 by 1.76%in the year 2066/67 by31.84 in the year
2067/68.

2.2 Fixed Deposit to Total Deposit Ratio

Table No 4
Fixed Deposit to Total Deposit Ratio
Fiscal Year
2063/64
2064/65
2065/66
2066/67
2067/68

Fixed Deposit
2897961
3403958
4242351
5626662
6446182

Total Deposit

Ratio %

8063902
10097690
13802444
18186250
23976290

35.94
33.71
30.74
30.94
26.89

22

(In Rs.Thousand)
(Source: Annual Report of EBL)

% of Fixed Deposit to Total Deposit Fixed Deposit 100

Total Deposit

Figure No 4
Column diagram of Fixed Deposit and Total Deposit

30000000

Fixed Deposit
Total Deposit

Amount

25000000
20000000
15000000
10000000
5000000
0
2063/64

2064/65

2065/66

2066/67

2067/68

Fiscal year

Above table & figure shows that, the fixed deposit to total deposit ratio of
EBL. The fixed deposit and total deposit of EBL is increasing in every fiscal
year. The ratio of fixed deposit & total deposit of 5 fiscal year are 35.94%,
33.71% , 30.74%, 30.94% & 26.89 respectively. It shows that, being increase
in, ratio of total deposit, fixed deposit is not increased as usually.

2.3 Trend of Fixed Deposit of EBL

Fixed deposit is the part of deposit. Fixed deposit is main sources of
bank. Fixed deposit is deposit for long term and it can be withdraw after
mature period.
23

Table No 5
Fixed Deposit of EBL
Fiscal Year

Fixed Deposit

% Change in Fixed
Deposit

2063/64
2064/65
2065/66
2066/67
2067/68

2897961
3403958
4242351
5626662
6446182

Note : %Change

_
17.46
24.63
32.63
14.56
(Source: Annual Report of EBL)

Ending Deposit Beginning Deposit

Beginning Deposit

Above table shows that, trend of fixed deposit of EBL is increase in every
fiscal year. Thus, bank should invest in various aspects.

Figure No 5

24

Trend line of fixed deposit of EBL

7000000
6000000
A
m
o
u
nt

5000000
4000000

Fixed Deposit

3000000
2000000
1000000
0
2063/642064/652065/662066/672067/68
Fiscal year

In above figure shows the amount of fixed deposits in the fiscal year
2063/64 to 2067/68. the banks fixed deposit in 067/68.

2.4 Total Credit to Total Deposit Ratio

Table No 6
Total Credit to Total Deposit Ratio
(Rs. In Thousand)
Fiscal Year
2063/64
2064/65
2065/66
2066/67
2067/68

Total Deposit
8063902
10097690
13802444
18186250
23976290

Total Credit
Ratio %
6095841
75.59
7900000
78.24
10136200
73.44
14082690
77.44
19065695
79.52
(Source: Annual Report of EBL)

Note : Total Credit toTotal Deposit Ration

Total Credit
Total Deposit

Above table shows that ratio of total credit to total deposit. In deposit,
interest is less than credit. Thus, bank can earn more profit as well as it helps
to increase in goodwill.
25

Figure No 6

Total Deposit
Total credit to Total deposit ratioTotal Credit
30000000

Amount

25000000
20000000
15000000
10000000
5000000
0
2063/642064/652065/662066/672067/68
Fiscal year

2.5 Total Investment to Total Deposit Ratio

Table No 7
Total Investment to Total Deposit Ratio
(Rs. In Thousand)
Total
Fiscal Year
2063/64
2064/65

Total Deposit
8063902
10097690

Investment
2535657
2128930

Ratio %
31.45
21.08
26

2065/66
2066/67
2067/68

13802444
18186250
23976290

4201300
30.44
4985120
27.41
5061158
21.11
(Source: Annual Report of EBL)

Note : -Total Investment toTotal Deposit Ratio

Total Investment
Total Deposit

Above the table reflects the total investment to total deposit. In the
year,2063/64 Total investment to total deposit is 24.7% which shows that the
bank invest of its total deposit. It shows that, total investment does not
increase as increase in the total deposit. In the year,2064/65 the bank
investment has increased but in the year2064/65 the bank investment has
decrease as compare to2065/66. the bank investment has increase but in the
year2068/69 the bank investment has decreased

Investment is the medium through which bank generally generate the

revenue. So, it should apply the broader investment to earn high return by
taking minimum risks. If the excess amount remains active, it will be the
cause for the decrease in the profit of the bank. So, bank should invest its
excess amount to secure place i.e. on government securities, Treasury bills
etc.

Figure No:7

27

2.6 Trend Analysis

The statistical test use in this study, which describe the trend of any
variables whether it increase or decrease with passage of time. The formula
of least square method.
Yc = a + bx
Table No 8
Trend Analysis of Total Deposit

(In

thousand)
x=X
Fiscal

Total

062/06

Year (X)

Deposit (y)

2064/6
5
2065/6

X2

xy

Yc
-

8063902

-2

-16127804

684264
7

10097690

-1

-10097690

28

108339

6
2066/6
7
2067/6
8
2068/6
8

81
148253

13802444

18186250

18186250

23976290

47952580

y=74126

x2=10

576

xy=399133

15
188166
49
228079
83
38773319

36

Now,

y
a=

xy
x
2

b=

74126576
5

39913336
10

= 14825315

= 3991334

Hence, equation of trend line,

Yc = a + bx
Yc (064/65)= 14825315+ 3991334 (-2)
Yc (065/66) =14825315+ 3991334 (-1)

= -6842647
=

-10833981
Yc (066/67) = 14825315+ 3991334 (0)

= 14825315

Yc (067/68) = 14825315+ 3991334 (1)

= 18816649

Yc (068/69) = 14825315+ 3991334 (2)

= 22807983

2.7 Major Findings

From the research and study the above report on the case of the Deposit
mobilization of Everest bank limited, researcher has achieved that the main
function of the commercial banks are the acceptance of deposit and lending
29

of surplus of deposited money by maintaining the minimum cash balance as

per the directives of central bank. So it is crystal clear without the
acceptance of deposit and proper utilization of it i.e. mobilization no
commercial banks can fulfill its objectives. The presentation and analysis of
the data of Everest bank shows that Deposit increasing Trend is not steady
and has fluctuated in five F/Y of 2064/65, 2065/66, 2066/67, 2067/68 &
2068/69. The bank is increasing the rate of deposit. The trend of fluctuation
may be a treat to Everest as the deposits are the very key for the profit
maximization.
Likewise the analysis of data deposit mobilization increasing Trend has also
shown that it is also of fluctuating nature. This mobilizing trend may hamper
the profitability of Everest Bank, as the path for profit maximization of
commercial banks. As most of the deposits are interest bearing, it becomes
able to overcome the liability. Commercial bank most employs it in the
economy in the form of mobilization. So this steady rate guarantees the
profit from the mobilization of deposit.
The loans and advances are the assets of commercial banks. The ratio of
liabilities and assets to total assets shows that they are in the line of 50% i.e.
out of the total assets 50% consist of loan and advances.
As deposits are the sources of funds of commercial banks, EBLs deposit of
source is very high in the ratio percentage. As a result, less the ratio of
deposits to fund less the liability of interest which means more profit. The
minus point is that the unsteady rate may be a barrier to the function of
deposit mobilization.

30

CHAPTER III
SUMMARY, CONCLUSIONS AND RECOMMENDATION
3.1 Summary
Bank is the one of the indispensable institutions for economic
development of the country. The modern banking system is the result of
wonderful scientific invention that passes through various phases. The bank
has par amount signification in the economic development of the country. For
the economic development there should be equal participation from the
private and public sector.
This concept of development has given birth of the bank in Nepal. For the
development of any sector there must be the huge flow of fund. The flow of
fund is possible only through deposit from the various sectors and the bank
has taken active part in this. So to evaluate, observe and understanding the
deposit made by the bank in different sectors inside the country, this study
has been made under the title "Deposit Mobilization ". To fulfill the objectives
of this study "Everest Bank limited" has taken into consideration.
This study is limited to the secondary data provided by the bank between
2059/60 and 2063/64.The primary source has been the personal interview.
The truth of the result fully realizes upon the data available from the bank.
To approach the result, some tools have been used. The basic tools are
financial tools and statistical tools respectively. As financial tools, ratio
analysis has been used. A part from it, to make the study more specific, the
help of diagram, Bar graph,, trend line etc are also undertaken.

3.2 Conclusions:
The major conclusion of this study goes as such:
31

i) The bank is liquid and is able to pay cash on demand to its depositor.
ii) Fixed deposit account can be generalized as the most common account
attracts to most people because it has higher interest rate can be
pledge as collateral for loans opened for the minimum duration .
iii) EBL has the advantages of banking expertise and financial strength of
its partner.
iv) EBL has been successful in collecting deposit from customer and
different way by providing effective & reasonable interest rate.
v) Deposit is the main source of bank. EBL has successfully mobilized in
different sector.
vi) Deposit has increased due to increasing performance of EBL.
vii) Without proper collection and mobilization of deposit, the banks can
not survive in the competitive market.

3.3 Recommendation
The overall of the bank is satisfactory. After analyzing the deposited made
by the
bank, we came to the conclusion that the bank is not willing to take risk in
deposit.
The staffs should also be given various facilities as requirement.
The bank should provide new services and facilities to attract more
depositors in the competitive banking industry.
The bank should find out new sector to invest, and should be
invested in portfolio so that it makes safer and earn more profit.
Cash and bank balance of bank is increase show the idle money
should be maximum utilized to earn profit as bank has to pay
certain amount to the customer instead of their deposits.
The

bank

should

have

to

increase

its

investment

because

percentage of investment of total deposit is low.

32

33

Bibliography
Bajracharya, B. C. (1998). Business Statistics & Mathematics. Kathmandu: M.
K. Publication and Distributors.
Bashu, A. K., & K., M. A. (1990). Fundamental of Banking Theory & Practices.
New Delhi: Mac Millan IndiaLtd.
Bhandar, D. R. (2002). Banking & Insurance: Principle and Practice.
Kathmandu: Ayus Publication.
Dahal, B., & Dahal, S. (2002). A Hand Book to Banking. Kathmandu: Asmita
Books and Stationary.
Ghimire, S. R. (2005). Financial Management. Kathmandu: K. P. Putalisadak
Bhandar.
L, H. H., & Sayers, R. S. (1970). Principle of Banking. New York: Oxford
Publication.
P.N., G. (1987). O. P. Dictionary of Commerce. New Delhi: Anmol Publication.

websites
www.ebl.com
www.everestbank.np

Appendices:
This given below appendices shows the total list of existing commercial
banks of Nepal.
List of Commercial Banks in Nepal:
S.N Commercial Bank
Established Date
o.
(AD)
1
Nepal Bank Ltd.
1937/11/15
2
RastriyaBanijya Bank
1966/01/23
3
Nepal Arab Bank Ltd.
1984/07/16
( Now Nabil Bank )
4
Nepal Indosuez Bank Ltd.
1986/02/27
(Now Nepal Investment Bank Ltd.)
5
Nepal Grindlays Bank Ltd
1987/01/30
(Now Nepal Standard Chartered Bank
Ltd.)
6
Himalayan Bank Ltd.
1993/01/18
7
Nepal SBI Bank Ltd.
1993/07/07
8
Nepal Bangladesh Bank Ltd.
1993/06/05
9
Everest Bank Ltd.
1994/10/18
10
Bank of Kathmandu Ltd.
1995/03/12
11
Nepal Bank of Ceylon Ltd.
1996/10/14
(Now Nepal Credit & Commercial
Bank Ltd.)
12
Lumbini Bank Ltd
1998/07/17
13
Nepal Industrial & Commercial Bank
1998/07/21
Ltd.
14
Machhapuchhre Bank Ltd.
2000/10/03
15
Kumari Bank Ltd.
2001/10/03
16
Laxmi Bank Ltd.
2002/04/03
17
Siddharth Bank Ltd.
2002/12/24
18
Agriculture Develop Bank Ltd.
2006/03/16
19
Global Bank Ltd.
2007/01/02
20
Citizens Bank International Ltd.
2007/04/20
21
Prime Bank Ltd.
2007/09/08
22
Sunrise Bank Ltd.
2007/10/12
23
Bank of Asia Nepal Ltd.
2007/10/12
24
Development Credit Bank Ltd.
2001/01/23
25
Nepal Merchant Bank Ltd.
1996/11/26
26
KIST Bank
2009/05/07
27
Janata Bank Nepal Ltd.
2010/04/05

28
29
30
31
32

Mega Bank Nepal Ltd.

Commerz& Trust Bank Nepal Ltd.
Civil Bank Ltd.
Century Commercial Bank Ltd.
Sanima Bank Ltd.
Source www.nrb.com

2010/07/23
2011/01/23
2010/11/26
2011/03/10
2012