DEPOSIT ANALYSIS OF KUMARI BANK LIMITED

A Project Proposal

Submitted by:
Nabin Bahadur Rawat
Roll No.: 10100001
T.U. Registration No.: 7-2-1010-012-2016

Submitted to:
Head of Research Department
Faculty of Management
Kapan Multiple Campus
Tribhuvan University

In partial fulfillment of the requirement for the degree of

Bachelor of Business Studies

Kathmandu, Nepal
MARCH,2020
1.1 Background of the Study:
It is very hard to collect the correct information of the origin of bank. The word “Bank”
has derived from the Italian word “Banco” which means accumulation of money of stock.
It is believed that its origin is from the French word “Banque” which means “beach” for
keeping, lending and exchanging of money or coin in the market place by money lenders
or money changers. It is believed that the ancestors of modern banking system were
merchants, goldsmiths and moneylenders. Modern banking sowed its seed in the
medieval Italy despite strong Christian prohibitions against charging interest.
The bank had started in Italy in 12 th century as a public bank. The Bank of Venice that
was established in 1158 A.D. was the first bank in the history of banking. Following its
establishment various banks such as Bank of Barcelona, which was established in 1401
A.D was the second bank of the world. Similarly, Bank of Geneva (1407), Bank of
Amsterdam (1609), Bank of Hindustan (1770) were established. The first central bank
was the “Bank of England” which was established in 1844 AD.

1.1.2 Meaning of Bank

A bank is a financial institution and a financial intermediary that accepts deposits and
channels those deposits into lending activities, either directly by loaning or indirectly
through capital markets. 
A bank may be defined as an institution that accepts deposits, makes loans, pays checks,
and provides financial services. A bank is a financial intermediary for the safeguarding,
transferring, exchanging, or lending of money. A primary role of banks is connecting
those with funds, such as investors and depositors, to those seeking funds, such as
individuals or businesses needing loans. A bank is the connection between customers that
have capital deficits and customers with capital surpluses. 
Banks distribute the medium of exchange. Banking is a business. Banks sell their services
to earn money, and they must market and manage those services in a competitive field.
Banks are financial intermediaries that safeguard, transfer, exchange, and lend money and
like other businesses that must earn a profit to survive. Understanding this fundamental
idea helps you to understand how banking systems work, and helps you understand many
modern trends in banking and financeBank is a financial institution, which is engaged in
monitory transaction. Bank has always been the most importance and largest financial
intermediates. Banks collect the scattered money from public providing those interests
and services. This collection becomes the capital for the bank to invest. “Banking means
the accepting of money for the view of lending or investment of deposit from the public
repayable on demand or otherwise and withdraw able by cheque, draft or otherwise”, is
according to Banking Regulation Act 1949 of India. World Bank says “Banks or a
financial institution that accepts funds in the forms of deposit repayable on demand or at
short notice.”
Some important meanings of bank given by different scholars are as follows:

According to Walter leaf:-

"A bank is that institution or individual who is always ready to service money on deposit
to be returned against the cheque of their depositor.”

According to Horace White:-

“Bank is a manufactures of credit and machine for facilitating exchanges.”

According to G. Crowther:-
“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.”

Some important meanings of bank given by different scholars are as follows:

Kumari Bank is considered, the initiator of internet banking in Nepal. It started its e-
banking services in 2002 (2059 B.S.) Since then, internet banking in Nepal has grown by
leaps and bounds. Also, Nepali banks have become hugely proactive to promote internet
banking and electronic payments.
In a country like Nepal having difficult topographical terrain, internet banking acts as an
easy medium to reach out to the customers in the hinterlands.

1.2 Profile of Organization

Kumari Bank Limited, came into existence as the fifteenth commercial bank of Nepal
by starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an
objective of providing competitive and modern banking services in the Nepalese financial
market. The Bank has paid up capital of NPR 9.55 billion of which 51% is contributed
from promoters and remaining from public.

Kumari Bank Limited has been providing wide-range of modern banking services

through 153 points of representation located in various urban, semi urban part and rural
parts of the country, with 96 outside valley branches, 30 inside valley branches,
6 extension counters and 21 Branchless Banking Units.
 
The Bank has pioneered in providing modern banking services like Internet Banking and
Mobile Banking services. With the implementation of Core Banking Software,
FINACLE (version 10), the Bank is confident that it will be able to provide a robust,
ultra-modern banking platform for all customers throughout the country.
 
The Bank has been offering both Domestic and International Visa Debit Card and Credit
Card, accessible in all VISA linked ATMs in Nepal and India, providing additional
services to the customers through its 122 ATMs throughout the country and several POS
terminals. Along with this, the Bank has also been offering latest Mobile Banking,
Internet banking and Viber Banking services. The Bank has been able to get recognition
as an innovative and fast-growing institution striving to enhance customer value and
satisfaction backed by transparent business practices, professional management,
corporate governance, and Total Quality Management as the organizational mission.
 
The key focus of the Bank is always centered on serving unfulfilled needs of all
customers by offering swift and modern technology-driven banking products and
services, thereby leaving the impression as a financial institution truly committed to
enhancing customer satisfaction, convenience and value.
 
 
Vision Statement
Our vision is to be the preferred financial partner to our customers, a center of career
growth to our employees, and to maximize our shareholders’ value, while contributing to
our nation’s financial sector and to its economic welfare.
 
Mission Statement
Our mission is to deliver innovative products and services to our customers, use these
innovative products to achieve financial inclusion, and do so by exemplifying good
corporate governance, proactive risk management practices, and superior corporate social
responsibility.
 

Capital Branch  Network ATMs

Authorized Capital NPR 10,000,000,000.00 96 Outside valley

Total - 122
Paid Up Capital NPR 9,500,000,000.00 30 Inside valley

1.3 Statement of problem:

As we know that the main objective of any business organization e.g. Bank. is profit
maximization. Deposit 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.

1.4 Objective of the Study:

The objective of this fieldwork is to analyses deposits collected in NBL. 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 Kumari Bank limited .
- To find out the deposit mix.
- To analyses the cost of deposit
- To analyses whether the deposits are being properly utilized or not.

1.5 Rationale
This studywill be useful to know overall picture of Kumari Bank Limited However it is
mainly concentrated in Deposit Analysis of Kumari Bank Limited. So anyone who want
information regarding the condition and trend of in Deposit Analysis of Kumari Bank
Limited they will be facilitated from this research to obtain the valuable information. The
procedure of opening saving account, will be helped by thisstudy. Also, the student in
coming years will as a reference.
1.6 Review

Researcher has gone through

various blogs, Newspaper
articles, experts’ opinion and
various Research papers.
Researcher has found both
positive & negative approach
towards
the usage of Mobile and Internet
Banking.
1.An Book naming “40 Money
Management Tips Every College
Student Should Know”
published in National
Endowmentfor
FinancialEducation.Theauthorha
s studied
Various techniques to maintain
the fund balance and how to
manage the funds are said. It
was published in the year 2010.
2.A PaperPublishedin Journal
ofBehavioralStudiesinBusinessn
aming“Student
budgeting and spending
behaviors: a comparative study”
written by Matthew Stollak - St.
Norbert College, Amy
Vandenberg - St. Norbert
College , Kevin Steiner -
Marquette
University , Jessica Richards -
St. Norbert College
Researcher has gone through
various blogs, Newspaper
articles, experts’ opinion and
various Research papers.
Researcher has found both
positive & negative approach
towards
the usage of Mobile and Internet
Banking.
Researcher has gone through various blogs, Newspaper articles, experts’ opinion and
various Research papers. Researcher has found both positive & negative approach
towards the usage of Mobile and Internet Banking.

 According to research conducted by Kumari, J. P. (2016) on the topic “A Study of

Online Banking Usage among University Academics” , usage of online banking
among academics were in middle average with used informational stage online
banking facilities.Young and middle age academics have high preferance for
using this facility while seen low rate rate among senior academic members.
 According to research conducted by Khatri, J. R. (2013) on the topic “Internet
Banking in Nepal: Use and Challenges” there are only limited services that BFIs
are providing in Nepal. Besides this study also highlighted the challenges faced
by banks for the development and adaptation of internet banking technology.
 Le, N. B. (2014) on research “Factors Affecting The Use of Internet Banking
Among Students in the UK” came to conclude convenience, accessibility, costs,
 security, reliability, ease of use are internet banking features that have significant
effect on students’ intention to use Internet Banking.
 Research conducted by Hammoud, J. (2018) on “The Impact of E-Banking
Service Quality on Customer Satisfaction” found that the four hypotheses in this
study were supported by the data, and the main contribution of this study was that
reliability, as a service quality variable, was the main predictor of customer
satisfaction in this particular market.

1.7Research Methodology
A systematic approach and methodology is needed in order to do any type of study and
prepare report on that study. An intense research has to be done in order to get the
appropriate results.
The research methodology adopted in this report is based on secondary data. The
information gathered is based on the data from various journals, newspaper and
magazines. The nature of the report is descriptive. Researcher has focused on bringing
together the role, impact, challenges, limitations, services, and making people aware
about its different services and benefits.

I. Research Design
The research methodology is the process of arriving to the solutions for the
problems trough systematic and planned dealing with collections, analysis and
interpretation of facts and figures. As the research entirely considers about
“Deposit analysis of Kumari Bank Limited” the main purpose of this study is to
know as much as possible about different aspects of online banking such as its
benefit, challenges and so on. The data have been acquired from various kinds of
reports, bulletins and journals of the organization. Similarly certain data’s have
been acquired from Kumari Bank Limited also. The study report is mostly based
on secondary information.
II. Population and Sample
In any study, a population is not a demographic population but the entire
collection of all observation of interest. In other words, it is entire group of
 people, events or things that the researcher wishes to investigate. Representation
portion of the population selected for investigation based on nature and necessity
of research is sample. This research has been conducted by taking the population
as Commercial Banks and sample as Kumari Bank Limited.
III. Nature and Sources of Data
In this report, all the collected data will be secondary in nature. Almost all the
data are collected from concerned bank. The nature of the report is descriptive.
 Secondary source of data includes the likes of internal sources such as Annual
reports of Kumari Bank Limited, Interim Performance Report and external
sources such as books, publications, journals, newspaper articles and so on
IV. Data Collection
All the data’s collected for the research are of secondary in nature. The
information gathered is based on the data from various journals, newspaper,
websites and magazines.
V. Analytical Tools
Various tools such as tables, pie-charts, bar diagrams, excel etc are used for
presentation and analysis of data collected.
1.8 Structure of Proposal
This report is divided into three different chapters as per the requirement. They are as
follows:
Chapter I: It will include topics such as General Background, Organization Profile,
objectives of the Study, Rationale, Literature Review, Research Methodology, and some
of the Limitations.
Chapter II: It includes data analysis, presentation and discussion of the findings.
Chapter III: It includes summary and conclusion.
Finally, Bibliography and Appendix are incorporated at the end of the report.

1.9 Limitations
This research is the small effort for studying and analyzing the Internet Banking services
of Nepal Bank Limited which has limited time so it cannot focus on all areas and may not
be able to explore many fields. This research work is done within limited time frame
during the BBS dissertation. There are so many constraints while doing the work such as
inadequate time, load shedding, and resources etc. To understand methodology of
Internet Banking service is very difficult because banks only provide surface level of
information because of their security concern.
 Bibliography
Devkota, S. (2018). Risning Junkiri. Retrieved March 2, 2020, from E-Banking Nepal Bank : It's
History And Future: https://risingjunkiri.com/ebanking-nepal-bank/
Hammoud, J. (2018). The Impact of E-Banking Service Quality on Customer Satisfaction.
Khalti. (n.d.). About Us. Retrieved from Internet Banking/eBanking in Nepal: Past, Present and
Future Ahead: https://blog.khalti.com/fintech-trends/internet-banking-ebanking-in-nepal-past-
present-and-future-ahead/
Khatri, J. R. (2013). Internet Banking in Nepal: Use and Challenges. Banking Journal , 77.
Kumari, J. P. (2016). A Study of Online Banking Usage among University Academics. 5.
Le, N. B. (2014). Factors Affecting The Use of Internet Banking Among Students in the UK.
Nepal Bank Limited. (2020). About Us. Retrieved March 5, 2020, from
https://nepalbank.com.np/introduction.html
Nepal Bank Limited. (2076/77). Mid January Report.