copy (2) of report - copy

40
DEPOSIT MOBILIZATION OF NEPAL BANGLADESH BANK LIMITED Submitted to Pokhara University Faculty of Management Crimson College of Technology Summer project report in partial fulfillment of the requirement for the degree of BACHELOR OF BUSINESS ADMINSTRATION Submitted BY Moti Bahadur Rana Regd. No: 2008-02-03-0619 Exam roll: 930448

Upload: nikhil-rana

Post on 28-Nov-2014

1.709 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Copy (2) of Report - Copy

DEPOSIT MOBILIZATION OF NEPAL BANGLADESH

BANK LIMITED

Submitted to

Pokhara UniversityFaculty of Management

Crimson College of Technology

Summer project report

in partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS ADMINSTRATION

Submitted BY

Moti Bahadur Rana Regd. No: 2008-02-03-0619 Exam roll: 930448

Butwal 2011

Page 2: Copy (2) of Report - Copy

ACKNOWLEDGEMENT

This project work assignment is an integral part of the subject “Banking and Insurance” Which is one of the subjects of BBA programme designed by faculty of Management. Pokhara University. The main objective of this project work study is to fulfill partial requirement on project work assignment by standing certain format which is prescribed by P.U. This is the case study of deposit mobilization of NBBL Butwal Branch.

Today Banking and Insurance are the two very practical fields with broad scope in the world. Only theoretical knowledge can not make a person perfect and practical. So this study program has widened our thinking through the practical knowledge which is the great chance provided by P.U. for us. First of all I would like to thank P.U.

This study report of mine wouldn’t have been possible without the guidance and help of teachers and staff members of NBBL Butwal Branch. Therefore I would like to thank Mr. Devi Bhandari our campus chief, I would like to extend my sincere thanks to my respected teacher Mr. Gajendra Basnet and Mr. Sanjeev Bhandari who gave their valuable time for the guidance and suggestion in the fieldwork assignment orientation class.

My study report would not be complete without thanking the NBBL staff members. I wish to express my grateful thanks to Mr. Hari Prasad Acharya, the branch manager of NBBL Butwal Branch for the acceptance of my study proposal. I especially thank Mr. Shiva Pandey of NBBL for his kind advice and providing relevant data and support while drafting this project work report. I am also grateful to Mr. Om Prasad Sapkota, Amit Sharma and other staff of NBBL for the substantial help and support.

Similarly I would like to extend my thanks to all who helped me, a lot by computerizing this manuscript.

Moti Bahadur Rana Crimson College Of Technology

Page 3: Copy (2) of Report - Copy

Table of Contents page no

Recommendation iAcknowledgement iiTable of Contents iiiList of Table ivList of Figures ivList of abbreviation Executive summary

CHAPTER: 1 Introduction 1-91.1. Introduction of Bank 11.2. Historical Background of Banking In Nepal 21.3. Meaning & Function of Commercial Bank 31.4. Introduction of NBBL 41.5. International Network % Relations 41.6. Background of NBBL 51.7. Organizational Structure of NBBL 61.8. Branch Network 71.9. Staff structure of NBBL Butwal Branch 81.10 Objectives of the study 91.11 Significance of the study 101.12 Limitations of the study

Chapter: 2 Research Methodologies 2.1 Research design 2.2 Methods of Data Collection 2.3 primary data 2.4 secondary data 2.5 tools for data presentation and analysis

CHAPTER: 3. DATA PRESENTATION & ANALYSIS10-18

3.1 Presentation and Analysis of Data 103.2 Study Result 18

Page 4: Copy (2) of Report - Copy

CHAPTER: 4. SUMMARY CONCLUSION & RECOMMENDATION:

19-20

4.1 Summary of the Project work 194.2 Conclusion of the Study 194.3 Recommendation to the Bank 20

BibliographyAbbreviationAppendixLocation of NBBL, Butwal BranchBio- Data.

Page 5: Copy (2) of Report - Copy

LIST OF TABLE & FIGURE

LIST OF TABLETable No. Title Chapter Page No.

1. Interest Bearing Deposit 112. Saving Deposit/ Total Deposit Ratio 113. Call Deposit to Total Deposit Ratio 124. Fixed Deposit to Total Deposit Ratio 125. Loan & Adv. To Total Deposit Ratio 136. Total Yearly Deposit Ratio 147. Total Yearly Loan & Adv. Percentage 158. Total Interest Income & Expenses 16

LIST OF FIGUREFigure No. Title Page No

1. Bar Diagram of Deposit & Adv. 132. Total Deposit & Total Adv Trend 143. Pie Chart of Yearly Deposit 154. Pie Chart of Yearly Loan & Adv 165. Bar Diagram of Total Int. Income & Expenses 176. Profit Mobilization Trend 18

Page 6: Copy (2) of Report - Copy

CHAPTER – 1INTRODUCTION

1.1 Introduction:

Nepal is a landlocked country with an area of 147,181 sq. km lie between 26 22’ to 30 27’ north latitude and 80’ to 88 12’ east longitude. It has an elongated shape. Nepal is a small country although it is beautiful country. It is a mountainous country where there are hundreds of peaks and ranges. It is the country of diversity. There are 14 zones and 75 districts in our country. It borders with China in the north and India in the east, west and south. Nepal is divided into 5 development regions. It is the second richest country in water resources.

On the basis of attitude Nepal is divided into three divisions. The mountains lies in the northern most part which covers about 35% land area. The Hill lies just below the mountain which covers about 42% land area and the terai lies in the southern part which covers 23% land. According to the latest census of 2001 A.D., the total population of Nepal is 2,315,14,23.

1.1 Introduction of Bank:

Banks are among the most important financial institution in the economy. It is an institution, which deals money, receiving, it on deposit from customers, honoring customers drawing against such deposits on demand, collecting cheque for the customers and lending or investing surplus deposit until they are required for repayment.

According to US Law, any institution offering deposits, subject’s withdrawal on demand and marketing loans of a commercial or business nature in bank. So, banks are those financial institutions that offer the widest range of financial services especially credit, saving and payments services and performs the widest range of financial functions of any business firm in the economy.

Bank means “A financial establishment for the deposit, loans exchange or issue of money and for the transmission of funds”

Page 7: Copy (2) of Report - Copy

There are various concepts among the economists about the origin of the World Bank. The term bank derives from the Latin word Bancus”, which refers to the bench on which the bankers would keep its money and his records. Some persons trace its origin to the French word “Banque” and the Italian Word Banco which means a bench for keeping lending and exchanging of money in the market.

The first bank called “Bank of Venice” was established in Venice in year 1157. The Bank of Barcelona and the bank of Genoa was established in 1401 respectively. After this establishment of Bank was going on. The bank of Amsterdam was established in Holland which was the great bank of the seventeenth century.

1.2. Historical Background of Banking in Nepal.In early ages there was very low economic standard of Nepalese

people. Our country is very rich in culture but economically very back. Because of geographical difficulties and economic problems, earlier people were not able to develop the standard in cultivation and some simple handicrafts were the source of income for the majority of the population. There was lack of good economic facilities and business to develop the economic standard of people. In such situation people can develop their traditional handicraft and traditional economic activates but are shield from the developments around the world. In those days there was not vast use of Nepalese Currency. Most of the parts country like Terai and border area use Indian currency. There fore for import and export business people had to depend on India.

Above 65% people were depend on agriculture. But there was not any economically support to those farmers. There fore they had to borrow from rich merchant of the village in high interest rate. This was the primitive Banking system for Nepal.

According to the historical evidence in 1723A.D.gun Kamdev. The kind of Kathmandu had borrowed money to rebuild and to rule Kathmandu. Another historical example of banking system is a financial institution named by Tejarath. Which was established to vive loan facilities to the government staff and also to the general public in the term of 5% interest. Another financial institution named ‘ Sainik Dravya Kosh” was established in 1994 B.S. for the welfare of government staff.

Page 8: Copy (2) of Report - Copy

According to Nepalese company law commercial bank was established by the name of Nepal Bank Limited. In 1994 B.S. which was the first commercial bank in the history of Nepal. Nepal Rastra Bank was established in 2012 B.S. to do the master function as a Central Bank. Then Rastriya Banijya Bank (another commercial bank) was established in 2022 B.S.

1.3. Meaning and Function of Commercial Bank:Commercial Banks should be established for developing the economic

condition of the country. Most of under developing countries are faced with the problem of proper mobilization of the financial, physical and human resources. So one of the chief undertaking used to overcome the problems of mobilizing financial resources both internally and externally is to set up banks, promote and activate them therefore commercial banks should established. It provides financial service in different sector such as agriculture, Industry, Trade, commerce etc in the country.

Likewise section 2 (a) of the commercial Bank Act 2031 has defined the “Commercial Bank” as a bank which operates currency exchanges transaction, accept deposit, provided loan, perform dealing relating to commerce except the bank which have been specified for the loan, perform dealing relating to commerce except the bank which have been specified for the cooperative, agriculture, industry of similar other specific objectives. Commercial bank play an important role in removing such economic problems like inflation on and deflation of monetary trade, trade deficit and budget deficit etc by capital formulation from deficits spending units (trade and industry as well as general public).

The major functions of commercial banks according to Nepal Commercial Bank act 2031 B.S. are as follows:

1) They accept deposit with or without interest. To do this they open saving, current and fixed deposit accounts in the name of depositors.

2) They supply loans (Short term as well as long term what ever necessary for trade and commerce) or make investment.

3) They help to issue shares and debentures of any company of any others corporate body, guarantee or underwrite such shares or debentures and undertake any agency business but not become a meaning agent.

4) They grant overdraft and issue letter of credit draft and traveler’s cheque.

Page 9: Copy (2) of Report - Copy

5) They remit or transit fund to different place with in and outside of the country.

6) They purchase, sell or accept the securities of Government.7) They provide many agency functions related information to their

clients and many other services.

1.4. Introduction of NBBL:

Just because of government encouragement and open policy for joint venture bank operation, it was possible for NBBL to be established as a joint venture bank. NBBL was established in 6th June 1994 (B.S. 2051/02/23) as a joint venture with International Finance Investment and Commerce (IFCI) Bank Ltd. of Bangladesh. The joint venture partner IFCI Bank Ltd is a premier commercial Bank of Bangladesh with 58 branches and also has a joint venture exchange company in Oman and joint Bank in Pakistan.

NBBL has been rendering modern banking services to the different sectors of economy like manufacturing and service industries, hydropower product traders, small organization and weaker sections of the society through its 17 branches spread over all five development regions of the country.

This Bank is the only Bank entrusted by the World Bank and Nepal Government to be the Power Development fund Administrator (PDFA) for the development of small level hydro power project in the country.

1.5. International Network and Relations:

The bank has agency and correspondent relationship with more than 190 prominent foreign banks in the World enabling its to carry out remittance and foreign trade business.

Apart from the correspondent relationship, the bank has established agency relationship with various foreign money transfer agencies for getting inward remittance in to the country which are:First Remit (an IMTA based in UK)Money Gram ( an IMTA based in UK)Krishi Premura HK Ltd. (an IMTA based in HK)

Page 10: Copy (2) of Report - Copy

Ezremit of Bahrain financing company (a renowned money transfer agency based in Bahrain which covers all the Middle East countries)

The bank also has very good network to remit and receive funds from India. It has relationship with internationally known banks American Express Bank, Standard Chartered Bank as well as with ICICI Bank Ltd, which is the largest private sector bank in India having more than 540 branches all over India.

1.6 Background of NBBL:

NBBL was established with an authorized capital of Rs. 240mil. Divided into shares of Rs.100 each. Out of which Rs 120 mi, issued capital and paid up capital was Rs. 60mil in establishment year 1994

It is a commercial bank established by issuing 30% share by Nepalese citizens, 20% hold by Nepalese promoters and remaining 50% hold by IFIC bank Ltd.

The Member of Board of Directors.

Mr. J.B. Shrestha Chairman

Mr. Shaful Islam Director

Mr. Habib Abu Ibrahim Director

Mr. Ataul Haq Director

Mr. Pramod Kumar Karki Director

Mr. Indra Pd. Rajbhandari Director

Mr. Lumb Dhoj Mahat Director

Mr. Ganesh Pd. Adhikari M.D.

Page 11: Copy (2) of Report - Copy

1.8 Branch Network:

NBBL is providing services to its clients thought 17 branches at present. It established its branches in all the development region of the country. The branches situated at New Baneshor, Bijuli Bazar (Main Branch), Putalisadak, New Road, Battar, Bhainsepati, Kalimati, lalitpur, Janakpur, Butwal, Hetauda, Birgunj, Nepagunj, Biratnagar, Tatopani, Dhangadi, Pokhara, Dharan. Its branch expansion program shall be continues in the future.

Board of Director Company Security

Executive Director

General Manager Internal Audit

DGM Planning & New A/C Dept. Legal Share Deposit Operation Service

System Asst. General Manager Branches Recondition

Treasury Marketing Credit Loan Admits L/C & Guarantee L/C

Page 12: Copy (2) of Report - Copy

1.9Staff Structure of NBBL Butwal Branch:

1.10 Objectives of Project Work:The main objective of this study report is to know about collection of

deposit and mobilization. To achieve these main objectives we should create further specific objective which are as follow."

1. To find the deposit mobilization trend of NBBL.2. To analysis deposit mobilization trend of NBBL.3. To provide suggestion and recommendation on the basis of study

analysis. 4. To complete the prescribed project work assignment report to submit

for the partial fulfillment of the requirement for the degree of BBS.

1.11 Limitation of the study:The study is done for the partial fulfillment for the degree of the

Bachelor of Business Studies Program. So there are some limitations which are as follows:

Branch Manager

Asst. Branch Manager Operation In charge

Credit L/C Guarantee General Banking Department Cash Department

A/C Reporting System

Page 13: Copy (2) of Report - Copy

1. The study is based on secondary data which are provided by NBBL Butwal Branch

2. The data are mainly based an annual report of NBBL.3. The study focused only on NBBL.

1.12 Significance of Study:

However the study has some limitation but there are many significance of this study. Firstly, the bank has operated by equity and borrowed capital sources. All types of deposits are one of the main borrowed sources of capital. It is the main source of Bank to get success by the banking transaction if they mobilize it properly.

Secondly, the study gives detail information about all types of deposit of NBBL as well as loan and advance provides by the bank. So this study helps those who want to know about it’s deposit mobilization.

Thirdly, this study shows deposit mobilization on trend. So we can compare the yearly deposit and loan and advance condition of NBBL.

Fourthly, many parties are benefited by this study like students (as a literature survey) well management group and others.

Lastly the main significance of study is to submit the prescribed project work assignment report for the partial fulfillment of the requirement for the degree of Bachelor of Business Studies.

1.13 Research Methodology:

Project work procedure: The study is mainly based on secondary data which is provided by

NBBL, the related data are obtained by annual report of NBBL.According to the need and objectives all the secondary data compiled.

Processed and tabulated in time service. Formal and informal things were concern with the head of department of the bank which is also helpful to obtain the additional information of the related problem.

1.14 Methods of data collection:

1) Primary Data: In concern with primary data it could not make the strong result for research because of the topics and time limitation. During my study period. I use some questionnaires and interview method for collection of primary data but it couldn’t make strong sources for my study.

Page 14: Copy (2) of Report - Copy

2) Secondary Data: Secondary data becomes a supportive source to

conduct the result and analyze them during my study. In the process

of report writing the required data were collected through magazine,

bulleting and the annual reports. After sorting these data various tools

have been used to analyzing and interpret the financial aspect of the

bank. Thus secondary data has been used widely in overall context.

Page 15: Copy (2) of Report - Copy

CHAPTER -2DATA PRESENTATION AND ANALYSIS

2.1 Presentation and Analysis of Data:

Introduction of deposit, loan and advance schemes of NBBL.

Deposit Schemes:The deposit scheme of NBBL is divided into two categories which are as follow:

1. Interest free deposit2. Interest bearing deposit

1. Interest free deposit:In this category interest free deposit are included. It is mainly of three

types.i. Current depositii. Margin depositiii. Other deposit

2. Saving deposit: In this category interest is not free m earns it bears interest. The Bank

should provide interest on this deposit. It is mainly of three types.

i. Saving deposit: In this deposit NBBL provides interest @ 4.5% p.a. with minimum balance of Rs. 5000 only.

ii. Saving plus deposit: In this deposit NBBL provides interest @ 4.5% p.a. on daily balance with minimum balance of Rs. 50000 only.

iii. Call deposit: In this deposit NBBL provides interest @4%p.a. ( in average)

iv. Grihini Bachat: In this deposit NBBL provides interest @4.75% p.a. with min. balance of Rs. 1000 only.

v. Short term deposit (Fixed deposit): In this deposit NBBL provides interest @ 4.8% p.a. NBBL has also introduced free accidental insurance scheme up to 5 lack and medical insurance benefits up to 10 thousands to the individual saving a/c holder.

Page 16: Copy (2) of Report - Copy

2.2 Presentation and Analysis of Data:

Table No 1Interest bearing deposit

F/Y Saving Call Fixed Certificate of Deposit

Total

2063/064 1113438025

295231345 4356581832 - 5765251202

2064/065 1716840648

682159660 5236787874 - 7635788191

2065/066 2086888665

766045306 5453626762 13417118 8319977851

2066/067 2933352001

145217741 5031582970 10938397 9428591109

From the above table, in fiscal year 2063/064the total interest bearing deposit is Rs. 5765.25 million, in fiscal year 2064/065 it increases to 7635.79 million, in F/Y 2065/066 it increases to 8319.98 million and in F/Y 2066/067 also increases to 9428.59 million.

Page 17: Copy (2) of Report - Copy

Table No: 2Saving Deposit Total Deposit Ratio (in Lakh)

F/Y Saving Deposit Total Deposit Ratio2063/064 111344 646719 17.222064/065 171684 860081 19.962065/066 208689 951446 21.932066/067 293335 1058065 27.72

Formulae used:Saving Deposit × 100Total Deposit

From the above table the saving deposit to total deposit ratio in F/Y 2063/064 is 17.22%. In F/Y 2064/065 it increases to 19.96 %, in F/Y 2065/066 increase to 21.93%, in F/Y 2066/067 it increases to 27.72%.

Table No: 3Call Deposit to total deposit ratio (in Lakh)

F/Y Call Deposit Total Deposit Ratio2063/064 29523 646719 4.562064/065 68216 860081 7.932065/066 76604 951446 8.052066/067 145272 1058065 13.73

Formulae used:Call Deposit × 100 Total Deposit

From the above table the call deposit to total deposit ratio in F/Y 2063/064 is 67.36% in F/Y 2064/065 it decreases to 60.89%, in F/Y 2065/066 again it decreases to 57.32% in F/Y 2066/067 it also decrease and reaches to 47.55%

Page 18: Copy (2) of Report - Copy

Table No.4Fixed Deposit to total deposit ratio ( in Lakh)

F/Y Call Deposit Total Deposit Ratio2063/064 4356558 646719 67.362064/065 523679 860081 60.892065/066 545363 951446 57.322066/067 503158 1058065 47.55

Formulae used:Fixed Deposit ×100 Total Deposit

From the above table the fixed deposit to total deposit ratio in F/Y 2063/064 is 67.36% in F/Y 2064/065 it decreases to 60.89%, in F/Y 2065/066 again it decreases to 57.32% in F/Y 2066/067 it also decrease and reaches to 47.55%

Table No.5Loan and Adv. to total deposit ratio (in Lakh)

F/Y Call Deposit Total Deposit Ratio2063/064 6467193594 4617097 71.39%2064/065 8600812128 7358837 85.56%2065/066 9514457399 8083987 84.96%2066/067 10580648192 7961511 75.26%

Formulae used:Total Loan & Adv. ×100 Total Deposit

From the above table total loan and advance to total deposit ratio in F/Y 2062/063 is 71.39% in F/Y 2063/064 it increases to 85.56%, in F/Y 2064/065 it decreases to 84.96% in F/Y 2066/067 again it decreases 75.26% and reaches.

Page 19: Copy (2) of Report - Copy

Table No.6Total Yearly Deposit Percentage

Fiscal Year Deposit Percentage2063/064 646719 18.392064/065 860081 24.462065/066 951446 27.062066/067 1058065 30.09

Formula Used: Yearly Deposit ×100 Total Deposit

Table No.7Total Yearly Loan & Adv. Percentage

Fiscal Year Deposit Percentage2063/064 4617/97 16.482064/065 7358837 26.262065/066 8/83987 28.852066/067 7961511 28.41

Formula Used: Yearly Loan and Adv.. ×100 Total Balance and Adv..

Page 20: Copy (2) of Report - Copy

Table No. 8Total interest income and Expenses (in lakh)

Fiscal Year Total Interest (Income)

Total Interest (Expenses)

Difference (Profit)

2063/064 60927 41500 194272064/065 81005 51585 294202065/066 85052 55274 297782066/067 101371 59788 41583

Formula Used: Total income - Total Interest Expenses

Fig. No. 1Bar Diagram of Deposit and Advance

Page 21: Copy (2) of Report - Copy

Fig. No. 2

Fig. No. 3Pie Chart of Yearly Deposit

Deposit

2062/063

2063/064

2064/065

2065/066

Page 22: Copy (2) of Report - Copy

Fig. No. 4Pie Chart of Yearly Loan & Advance

Fig. No. 5Bar Diagram of Total Interest Income and Expenses

Page 23: Copy (2) of Report - Copy

From above bar diagram in 2062/063 the total int. income is Rs. 609 mil. Where total int. exp. is Rs. 415 mil. Difference income is Rs. 194 mil. In f/y 2063/064 the total int. income is 810 mil. Where total int. exp. is Rs. 516 and difference income is Rs. 294 mil. In f/y 2064/065 the total int. income is Rs. 851 mil. where total int. exp. is Rs. 553 mil. and the difference income is Rs. 298 mil. . In 2065/066 the total int. income is Rs. 1014 mil. Where total int. exp is Rs. 598 mil. and the difference income is Rs. 416 mil. From the above table int. income is in increasing trend, total int. expenses is in slightly increasing trend and the profit is also in increasing trend.

Fig. No. 6

Page 24: Copy (2) of Report - Copy

2.3. Study ResultHowever the interest bearing deposit of NBBL is in increasing trend

separately saving and call deposit are in increasing trend but in fixed deposit, in starting it increases but lastly it decreases. (Table No. 1)

The saving deposit to total deposit ratio and call deposit to total deposit ratio is also in increasing trend but the fixed deposit to total deposit ratio is not in increasing trend. In starting it increases but lastly it decrease. (Table No. 2,3,4)

But as a whole the total deposit trend is in increasing trend. Till 2064/065 it increases rapidly but later it increases slightly. (Fig. 2)

The loan and adv. of NBBL is increases till f/y 2065/066 but in f/y 2066/067 it decreases. We can see the load and adv. to total deposit ratio where it increases up to f/y 2064/065 decrease there after.

But as a whole the loan and adv. trend is going up till 2065/066 and then going down and total int. income is in increasing trend, total interest expenses is in slightly increasing trend, but the profit increases rapidly from 2063/064 to 2066/067 then slightly increases and lastly from 2065/066 to 2066/067 again increase rapidly up to 416 mil.

CHAPTER - 3SUMMARY, CONCLUSION AND RECOMMENDATION

3.1. Summary of the project workDeposit is the one of the main source of the Bank Capital. The types

of deposit of NBBL are categories in two types, one is interest free deposit and another is interest bearing deposit. Current deposit, margin deposit and other deposits are included in interest free deposit where as saving deposit, call deposit Grihini Bachat and fixed deposit are included in interest bearing deposit. The deposits are collected by the bank from bank customer which functioning as a life blood of the Bank. Basically the Bank mobilizes its deposit to run well. To mobilize its deposit, the bank provides loan and advances to their customer if they demand. The different types of loan and advance has provided by the NBBL like working capital loan, term loan, demand Loan, Trade finance loan, Hire Purchase, Housing Loan, Education Loan Etc.

This study mainly aims to know the deposit and its mobilization. Its specified objectives are to find analysis and interpret the deposit mobilization trend of NBBL. To fulfill these objectives of the study, the

Page 25: Copy (2) of Report - Copy

financial data are collected from financial statements of NBBL. The data are collected for the period of year from 2063/064 to 2066/067. This study used some financial ratios to analyzed and interpret.

3.2. Conclusion of the StudyBy the overall study, I have found that the total deposit had followed

increasing trend over the period of time, indicating satisfactory position. The saving deposit to total deposit ratio is in increasing trend. It indicated the increase of saving deposit which is satisfactory. The call deposit to total deposit ratio has followed increasing trend over all fiscal years, indicating satisfactory condition of call deposit but the fixed deposit to deposit ratio followed decreasing trend over all fiscal years, indicating the fixed deposit of bank is not in satisfactory condition, It may be harmful to the bank in near future if the trend is going decrease.

The loan and advance to total deposit ratio followed increasing trend in starting but then decreasing, it shows the mobilization of bank is in increasing in starting but decreasing there after. Overall it is satisfactory.

The total deposit and total adv. trend shows the mobilization of bank is in increasing in starting but decreasing there after. Overall it is satisfactory.

The total and total trend shows till f/y 2065/066 the bank has able to mobilize its deposit very well but after that it can't able to mobilize its deposit properly.

The difference of total int. income and total int. expenses means the profit has followed increasing trend. The trend shows the satisfactory condition of profit up to f/y 2065/066 after then shows good condition of profit in f/y 2066/067. Overall it is satisfactory.

Therefore, by the above studies of NBBL, overall it has in satisfactory condition not in better.

3.3. Recommendation to the Bank:Although, from the available data, I have analyzed and interpret them

to get result but now this study is going to provide some suggestions and recommendation that may be acceptable to the Bank Manager as an input to their decision making.

Page 26: Copy (2) of Report - Copy

The fixed deposit to total deposit ratio is continuously going down. So to increase this ratio NBBL tries to promote fixed deposit and attract the customers for it means it should try to maintain the level of deposit.

There is also some problem in deposit mobilization the bank is not utilizing its deposit properly. The bank should search the various productive profitable sectors to mobilize its deposit. And also all the banks should search the various productive profitable sectors to mobilize its deposit.

And also all the banks have to control their unnecessary expenses and try to increase their profit by the proper management with the help of promotional tools. So the bank must formulate the strategy to control such problems by using modern technology, experts, and well trained personnel and by providing better services.

Page 27: Copy (2) of Report - Copy

ABBREVIATION

NBBL - Nepal Bangladesh bank Limited

IFIC - International Finance Investment and Commerce

B.S. - Bikram Sambat

IMTA - International Money Transfer Agency.

UK - United Kingdom

HK - Hong Kong

PDFA - Power Development Fund Administration

No. - Number

F/Y - Fiscal year

Amt. - Amount

Mil. - Million

Inte. - Interest

Exp. - Expenses

P.A. - Per Annum

Adv. - Advance