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Proposal of NABIL BANK
Proposal of NABIL BANK
Proposal of NABIL BANK
A Project Proposal
Submitted by
MD MOSTAK RAIN
TU Registration No:7-2-25-1320-2019
Submitted to
Research Department
Tribhuwan University
Kathmandu
2024
INTRODUCTION
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 12th 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.
Bank 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.”
A commercial bank is a financial institution which collects saving from many persons and
institutions and provides credit or loan facility to different industrial and commercial
business. Commercial banking business consists of changing cash into bank deposit and bank
deposit into Withdraw, transferring bank withdraw form one person or institution to other,
giving bank deposit in exchange for cheque, bills of exchange, government securities etc.
Nepal Bank Limited established in 1994 BS is the first commercial bank in Nepal. Commercial
banks perform various functions.Among them, accepting various types of withdraw is the
main function of commercial banks. Commercial banks are directly related with the people
and institution. The commercial bank is an important bank. Its function is very attractive for
people. In Nepal the commercial bank perform the following functions. Of the many function
of the commercial bank acceptance of withdraw is one of them. The bank allows for opening
the three types of accounts to accept withdraw for their customers. They are current, saving
and fixed deposit account. People can collect their money in one of the three as their need.
But the interest is given to the saving and fixed account. The commercial bank performs the
important function of accepting all sorts of withdraw. It earns profit by investing that money
in another place.
Another function of the commercial bank is to provide loan. A commercial bank provide loan
to a person, company and institution etc. A bank can earn a lot of profit from it. A bank is
capable of gain benefit in its banking development by receiving the interest as per law and
its internal policies. It provides the loan by accepting the security of debtor. A bank flow the
loan against a third person guarantee or with the pledge of the third person. A bank
provides the loan on basis of agreement or deed of loan. It provides loan on basis of the
following deed securities:
Nabil Bank Limited (Nabil) commenced its operation on 12 July, 1984 as the first joint
venture bank in Nepal, Dubai Bank Limited. Dubai (Later acquired by Emirates Bank
International Limited,Dubai) was the first joint venture partner of Nabil. Currently NB
(international) limited. Ireland is the foreign partner. Nabil Bank limited had the official
name Nepal Arab Bank Limited till 31st December 2001. Nabil is the pioneer in introducing
maims innovative products and marketing concept in banking sector of Nepal with 15
branches and 2 counters in all major cities. It is the only bank having its presence at
Tribhuvan International Airport of the country. Also, the number of outlets in the country is
the highest among the joint venture and private banks operating in Nepal. Success of Nabil is
a milestone in the banking history of Nepal as it paved the way for the establishment of
many commercial banks and financial institutions.
Nabil, as a pioneer in introducing many innovative products and marketing concepts in the
domestic banking sector, represents a milestone in the banking history of Nepal as it started
an era of modern banking with customer satisfaction measured as a focal objective while
doing business.Operations of the bank including day-to-day operation and risk management
are managed by highly qualified and experienced management team. Bank is fully equipped
with modern technology which includes ATMs, credit cards, state-of-art, world-renowned
software from Infernos Technologies System, Banglore, India, Internet banking system and
telebanking system. Nabil provides a full range of commercial banking services through its
outlets spread across the nation and reputed correspondent banks across the globe.
Moreover, Nabil has a good name in the market for its highly personalized services to the
customers. At the time of commencement it had Rs 100 million as Authorized Capital. The
range and scope of modern banking services the bank has been providing is an example to
its commitment towards customer satisfaction. It is this commitment that has helped the
bank register quantum growth every year. And the bank is confident and hopeful that it will
be able to retain this trust and move even future towards its mission of becoming one of the
leading banks of the industry.
Vision
Nabil Bank Limited run with a vision to be financially sound, operationally efficient and keep
abreast with technological developments.
Mission
The bank desire to be one of the leading banks fulfilling the interest of stakeholders and also
aims to provide total customer satisfaction by way of offering innovative products and by
developing and retaining highly motivated and committed staff. It directs all its efforts to
move ahead with increased profits. The following mission statement is a guide to meet the
vision of the bank:
Be one of the leading banks in terms of withdraw, deposit, profitability, productivity and
innovation.
Aim at total customer satisfaction by rendering efficient and diversified financial
services through improved technology.
Build a highly motivated and committed term of staff by nurturing a good work culture
to achieve superior individual performance aiming to enhance organizational
effectiveness.
Be the place of pride to all its stakeholder.
The main objective of the study is to fulfill the partial requirement of T.U to complete BBS 4th
years project. The objective of this fieldwork is to analyses withdraw collected in NABIL. The
study intends to present a brief and clear picture of withdraw and its utilization. The
objective of the study includes.
5. Review of Literature
Withdraw collection is one of the main features of commercial bank. A commercial bank
receives withdraw in different accounts namely current, fixed and saving. These are the
direct withdraw. When a bank take cash it grants a right to the withdrawals to withdraw it
whenever they like Nepal Banijya Bank Act has regulated all the withdraw 2031. The act
specifies “Withdraw” means amount withdraw in current, fixed and saving account of bank
or financial institutions. Among many functions of a commercial bank the main function is
withdraw function, which all the commercial banks perform, in simple terms; withdraw is a
function of withdraw surplus from savers.
Investment
Assets Purchased
6. Research Methodologies
A research methodology helps us to find out accuracy, validity, and suitability of any
particular study. The research methodology used in present study is briefly mentioned
below:
The 28 commercial banks of the country Nabil Bank Ltd has been chosen and their
performances have been analyzed. Due to Lack of Penal access study mainly depends on the
balance sheet prepared by Nabil Bank Ltd, which is the secondary source. Nabil Bank Ltd has
been selected for the present study. Financial statement of this bank for the last five years
( 2075/76 to 79/80) has been taken as the sample for this purpose.
For the preparation of this report different kinds of books are followed. In this report, all the
data collected is secondary in nature. Almost all the data has been collected form published
annual reports, brochures etc. Mostly all the data are collected from the concerned bank.
Secondary Data Source: In this study, the main source of data is secondary which are
collected from pre-published data sources.The financial data from the published documents
and audited financial statements were manually extracted into the computer files of
Microsoft Excel program which acted as master database file. The data was refined further
into spreadsheets to carry out financial ratio calculation and graphical illustrations through
mathematical functions and Chart Program of the Excel program.
Financial ratios are the major tools used for the descriptive analysis of the study. In addition
to the financial tools, simple statistical tools are also used. Financial Ratio Analysis tools are
used to determine the performance of the banks in the framework components. These
ratios are categorized in accordance of the components. Following category of key ratios are
used to analysis the relevant components in terms.
I. Tables
II. Bar Diagrams
III. Average
IV. Percentage
V. Financial Ratio
Financial Analysis is the process of identifying the financial strengths and weaknesses of the
firm by properly establishing relationship between the items of balance sheets, which
represents snapshot of the firm’s financial position at a momentin time and next, income
statement, the depicts a summary of the firm’s profitability overtime ( Van Horne and
wachowicz, 2003). In financial analysis, ratio is used as a benchmark for evaluating the
financial position and performance of a firm. Financial Analysis is a technique of answering
various questions regarding the performance of a firm in the past, present and future. As
financial analytical tools, following ratio will be used.
Mean (X) = X
N
Where,
_
X = Mean of the Value
8. Report Structure
This report has found to be difficult to understand and create confusion if it has not
partition into various heads. For our convenience, the entire these has been
segregated into five parts. They are mentioned as bellow:
Chapter- I: Introduction
This chapter describes the background of the study. It has served orientation for
readers to know about the basic information of the resources area, various problems
of the study, objectives of study, scope of the study, and limitation of the study and
chapter plan of the study. Review of Literature Research methods.
This chapter analyzes the data related with study and presents the findings of the
study and also commend briefly on them. Data processing, data analysis and
interpretation are given in the chapter and there is use of techniques relating to
analysis such as ratio, descriptive expression, diagrams and so fourth.
On the basis of the result from data analysis, the researcher concludes about the
performance of the concerned organization in terms of liquidity management. This
chapter is devoted to the summary of the research, conclusion derived on the basis
of data analyzed and the recommendations for improvement to the concerned
organization.