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A Field Report On Rastriya Banijya Bank
A Field Report On Rastriya Banijya Bank
TABLE OF CONTENTS
Recommendation
Acknowledgement
Abbreviation
List of tables
Contents
Chapter One
1. INTRODUCTION
BACKGROUND
INTRODUCTION TO Deposit
Introduction to bank
A. Meaning
B. Importance
C. History
D. Development
E. Types
F. Functions
1.4 Statements of the problems
1.5 Need of the study
1.6 Objective of the study
1.7 Statement of the problems
1.8 Limitation of the study
1.9 Area of the study
1.10 Research Methodology
1.11 Research Design
1.12 Nature and sources of data
1.13 Data collection and procedures
1.14 Data Analysis
1.15 Statistical tools and organization of the
study
Chapter Two
2. PRESENTATION AND ANALYSIS
2.1 Deposit position of Rastriya Banijya Bank
2.2 Share Deposit of Rastriya Banijya Bank
2.3 Credit positioning of Rastriya Banijya Bank
2.4 Deposition Mobilization and Utilization position
Chapter Three
3. SUMMARY AND CONCLUSION
Summary
Conclusion
Recommendation
BIBLIOGRAPHY
APPENDIX
CHAPTER 1
Background
Commercial Banks are the heart of our economic system. they
hold the deposit of million of person, government and
business units. They make funds available through their
lending and investing activities to borrower, individual
,business firms and government . Thus , their task is to
provide a collecting point for saving of relatively small
average amount from a large number of individual sources
and invest them into a productivity and needed sector ,
so as to develop the nation In the developing country like
Nepal there is always lack of financial resources not
only because of its real absence but because of available
resources are not only properly mobilized and are not
fully utilized for the productive purpose . In this course of
commercial bank are considered to be vital financial
institution rather than banking institution . Rastriya Banijya
Bank is playing a vital role in mobilizing the available
resource and utilizing them into the productive sector. , so
as to enlarge capital market and to attain economic
development of the country.
Introduction to Bank
A. Meaning
In general term bank is an institution , which deals in
term of money and credit . A bank accepts deposit from
the public and provides loan by creating credit. A bank
can easily be different from other financial institutions by
the means of credit creation . A bank can create through
accepted deposit but a financial institute never can .
B. Importance
In the current age, the importance of the bank and its
money business is very high, the industrial, political and
economics power of any country can easily be forecasted
by the means of banking organization of that country .
C. HISTORY
We also know that it is a scientist business age. Monetary
transaction and financial institute conduct almost all
business and another economics activity like banks
operates such transactions . Bank are useful to all the
people in these days . But, in ancient period ‘banks’ seemed
unnatural. Although goldsmiths ,merchants , etc , played a
great role on development of bank, banking history
started since 12th century . The first bank of the world is
“bank of Venice” which was established in Venice , Italy in
1157 A.D . Subsequently , “bank of Barcelona” and “bank of
Geneva” were established respectively in 1401 and 1407 .
Due to traditional society, these banks could not run well.
“Bank of Amsterdam” set up in 1609 became popular. But, the
establishment of “bank of England” in late 17 th century
made proper path on history of bank. The history of
modern banking in Nepal is made by the set up of
“Nepal Bank limited” in 1994 B.S The pioneer bank of
modern banking in Nepal .
D DEVELOPMENT
Goldsmith , merchants and money lenders have great role
to develop the banking business. In ancient time, people
used to deposit billion , money and ornaments for the
purpose of safeguard to them . They used to provide
receipts to the depositors and take some changes .
Observation made by Geoffrey Crowther gives us the
detail about amount of loan by changing interest as they
found that on average the withdrawal of money were
much less than the deposit with them . As a result ,
Goldsmith, Merchant, Money lenders became bankers who
started performing the two keys functions of modern
banking i.e. accepting deposit and advancing loans, After
the set up “bank of England” in 1964 A.D. The trend of modern
banking was well established . Our banking system has
been developed after the establishment of “ Nepal Bank
Limited” in 1994 B.S. afterwards, “ Nepal Rastriya bank”,
“Rastriya Banijya Bank” played a great role to develop
banking more rapidly in Nepal . At present , we have one
central bank, thirteen commercial banks, five rural
development banks . These numbers shows that banking
system is growing rapidly in our country . At present, our
commercial banks are operated under commercial bank
act -2031 .
E. TYPES
Although there are different types of banks emerged in
banking industry concentrating on special sector, we have
the following types of bank in our country :
1. Central bank
2. Commercial bank
3. Development bank
4. Rural development bank
5. Postal saving bank
1. Agency service
2. Credit creation
6. Financial advising
ii. To see how far the bank is able to utilize the collected
deposits
Data:
Chapter-1: Introduction
It includes general introduction, need of the study and
objective of the study , statement of thesis, scope and
limitation of study.
Chapter-2
Presentation and analysis of data
1.1 Deposit of Rastriya Banijya Bank
Bank deposit is one of the main sources for loan and
advances . so, the commercial bank basically depends
upon the mobilization of deposits . Commercial bank
accepts un the usually three types of deposit : current,
saving and fixed. Higher the volume of deposit higher will
be the volume of lending and investing, which again
generate higher volume of profit . First of all ,
commercial bank tried to mobilize as much as deposits as
possible. Since, the establishment of R.B. bank are playing,
as an important role in the economic development of the
country by collecting the scattered resources on the firm
of deposits. Rastriya Banijya Bank structures with their
increment are in table 1.
60000
50000
Total Deposit
40000 Current Deposit
Saving Deposit
30000
Fixed Depsoit
20000 Interest Income
10000
0
2005 2006 2007 2008 2009
5∗59514−0 1
×
Or= √5∗10−0 √5∗14365878518−2645362
297570
Or, = 7.07∗43012.7
Therefore, r=0.978
Again test of significant
2
1−r
I.e. probable error of r=0.6745 × √N
1−0.9409
×
=0.6745 √5
=0.018
Therefore, P.E(R) =0.018
Now, 6 × P . E ( r )=6 ×0.018=0.11
Here, r ¿ 6 P. E( r)
i.e. 0.97 8>0.11
Therefore the value of correlation coefficient is
significant
S
Profit(y Total T=(Y- T2 XT X2
) deposit( 2625
X) )
2329 43016 -296 87616 -12732736 1850376256
2283 46195 -342 116964 -15798690 2133978025
2358 50464 -267 71289 -13473888 2546615296
2705 57971 80 6400 4637680 3360636841
3448 66890 823 7677329 55050470 4474272100
∑ Y =13123 ∑ X =264536 ∑ T =323 ∑ T 2=980463 XT =¿ X 2=¿
∑¿ 176828 ∑¿ 14365878
36 518
∑Y 13123
Here, mean for Y is = N = 5 =2624.6
OR 2625
Now the correlation between the year and
total deposit(r)
X
T
∑¿
¿
¿
¿
T
∑¿2
¿
¿
¿
¿
X
I.e. r = ∑¿
¿2
¿
2−¿
n∑ ¿
X
2−¿
n∑ ¿
T
∑ ¿¿
XT −¿
n∑ ¿
¿
264536
¿
¿
¿2
Or, = 5× 14365878518−¿
√¿
5 × 17682836−0 1
×
√5 × 980463−0 ¿
88414180
Or, = 2214.11 × 43012.75
88414180
r= 95234959.9
Therefore r=0.92
Again, test of significant
2
1−r
×
I.e. is probable error of r =0.6745 √N
1−0.8464
×
=0.6745 √5
Therefore, P.E.(r)=0.046
Now, 6 × P . E ( r )=6 ×0.046=0.27
Here, r ¿ 6 P. E( r)
i.e. 0.92 ¿ 0.27
Therefore, the value of the correlation
coefficient is significant
∑ T =3 ∑X 264536
Since, , bo = n = 5 =52907.2
∑ XT 59524
And b1 = ∑ T 2 = 10 =5952.4
Hence, the best fit of trend line is Y e
=52907.2+5952.4(T)
1=¿
Since b¿ 5952.4, this shows that the total deposit
36
∑X
Here we can find the mean 2625 by N =
13123
5 =2624.6 or 2625
T =¿ ∑X 264536
Since, ∑¿ 0, bo = n = 5 =52907.2
∑ XT 17682836
And b1 = ∑ 2 = 980463
T
=18.03
Table -2
Credit position of Rastriya Banijya Bank
year Total Total loan Total Change on % change
investmen and credit total in total
t advance amount credit
2005 8416 27001 35417 7194 25.49
2006 11555 23246 34801 -616 -1.74
2007 12650 24871 37521 2720 7.82
2008 14443 27525 41968 4447 11.853
2009 15418 26154 41572 -396 -0.94
45000
40000
35000
30000
Total investment
25000
Total loan and
20000 advance
15000 Total credit
10000
5000
0
2005 2006 2007 2008 2009
Table -4
Deposit mobilization and its utilization
year Total deposit Total utilization % of total utilization
2005 43016 35417 82.33
2006 46195 34801 75.33
2007 50464 37521 74.35
2008 57971 41968 72.39
2009 66890 41572 62.14
100000
50000
5 2
Total deposit
Total utilization
0
4 3
3.2 conclusions
Nepal has realized that the desired growth rate can only be
achieved when the domestic finance is properly mobilized
and utilized in productive sector. Rastriya Banijya Bank is
playing vital intermediary role on the acceleration of economic
development and lastly enlisted of the living standard of the
Nepalese people.
3.3 Recommendation
The recommendation of the study may provide significant
information for those who want to have an idea of deposit
mobilization and utilization of bank. Hence the following
recommendations can be obtained.
Bank should invest deposit in various sectors so as to
increase fixed deposits.
Bank should provide loan and advances to its customer in
order to utilize its resources efficiently and effectively.
It should evaluate the credit worthiness before granting
loans to debtors.
Bibliography
1) Bhandari, Dilli raj, “banking and insurance” 4 th Edition
2064, Ayush prakashan
2) Chaudari,A.K and Pant G.D, “business mathematics and
stastistics”Third Edition
3) Rastriya Banijya Bank “Banking Prawadan”
4) Rastriya Banijya bank annual balance sheet 2066.
5) www.rbb.np
6) Rastriya banijya Bank souvenir 45th anniversary
Appendix
1) In Table: 1
% increased of deposit=old deposit-new deposit/old deposit ×
100%
2) In Table: 2
%share of rastriya banijya bank in total commercial bank
deposit is rastriya banijya bank deposit /total deposit of
commercial bank*100%
3) In table: 3
-Total credit=total investment+ total loan and advance
-%Change in total credit = new total credit –old total credit /old
total credit × 100%
4) In table: 4
% of total utilization = total utilization/total deposition × 100%