CHAPTER-I

INTRODUCTION

1.1 Background of the Study

The term bank is either derived from old Italian word "Banco" or from a French word
"Banque" both mean a Bench or money exchange table. In olden days, European money
lenders or money changers used to display (show) coins of different countries in big
heaps (quantity) on benches or tables for the purpose of lending of exchanging.

A bank is a financial institution which deals with deposit and advances and other related
services. It receives money from those who want to save in the form of deposit and it
lends money to those who need it. Oxford Dictionary defines a bank as "an establishment
for custody of money, which it pays out on customer." Dealing in money: Bank is a
financial institution which deals with other people's money i.e., money given by
depositors. Individual / firm / company: A bank may be a person, firm or a company. A
banking company means a company which is in the business of banking. Acceptance of
Deposit: A bank accepts money from the people in the form of deposits which are usually
repayable on demand of after the expiry of a fixed period. It gives safety to the deposit of
its customers. It also acts as a custodian of fund of its customers. Giving Advance: A
bank lend out of money in the form of loans to those who require it for different
purpose.Payment and Withdrawal: A bank provides easy payment and withdrawal facility
to its customers in the form of cheques and drafts; it also brings bank money in
circulation. This money is in the form of cheques, drafts, etc. Agency and Utility
Services: A bank provides various banking facilities to its customers. They include
general utility services and agency services.

Profit and Service Orientation: A bank is a profit seeking institution having service
oriented approach. Ever Increasing Function: Banking is an evolutionary concept. There
is continuous expansion and diversification as regards the function, services of a
bank.Connecting Link: A bank acts as a connecting link between borrowers and lenders
of money. Bank collect money from those who have surplus money and give the same to

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those who are in need of money. Banking Business: A bank's main activity should be to
do business of banking which should not be subsidiary to any other business.

Name Identity: A bank should always add the word "bank" to its name to enable people
to know that it is a bank and that it is dealing in money.

1.2 Banking History in Nepal

The history of banking in Nepal dates back to the year 1937 AD with the establishment of
Nepal Bank Limited as the first commercial bank in Nepal. It was established as a semi-
government bank with METALLIC COINS worth NRS 10 million as the authorized
capital. Banknotes in Nepal weren't introduced up until the mid-1940s. It was in the year
1945 that the earliest banknotes were issued by the treasury "sadarMulukikhan". These
notes were signed by a "Khajanchi” the head of the treasury who also was a high priest.

Later in the year 1955 Nepal Rastra Bank Act was formulated for a better banking system
and Nepal Rastra Bank was established in 1956 as the Central Bank of Nepal
accordingly. After this date, the banknotes were issued by the Central Bank with the
signatures of the governors of the institution. Till the 1980s the banking sectors was
wholly owned by the government with NIC Asia Bank, Rastriya Banijya Bank, NBL and
NRB being the pillars of financial institution in Nepal.

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Hori 1984 saw the start of the private banking industry with the establishment of Nabil
Bank and the introduction of foreign banks such as the Nepal Arab Bank Indosuez Bank
and Nepal Grindlays. The banking sector in Nepal has faced many hurdles and
hindrances. It has undergone various political conflicts and instability. But today, it
stands more liberalized and modernized. There are various types of banks working in the
modern banking system in Nepal. As per the list issued by NRB as of mid-Jan, 2021, the
modern banking sector include 27 Commercial Bank (Class A), 19 Asia Banks (Class B),
21 Finance Companies (Class C), 76 Micro Finance Financial Institution (Class D), 1
Infrastructure Asia Bank and 15 other institutions. Cash machines

The growth in banking sector has drastically changed the paying habits of people. It
wasn't long ago when people only dealt with hard cash. Queuing in banks to withdraw the
smallest amount of money also wasn't unusual. But today, more and more Nepali people
find it convenient plastic money in their wallets instead of hard cash. If we look back into
banking history of Nepal, the first credit card in Nepal was introduced by Nabil Bank in
1990, and the first ATM was introduced by the Himalayan Bank in 1995. However, it
couldn't take a swift leap into people's behavior. Although ATM was introduced, it wasn't
in an adequate amount at the time. But now there are more than 9 ATMs per one
thousand adults in Nepal, belonging to different banks in various regions of the country.
And according to the Central Bank, there were 9,000,000 debit card issued as of
December 2022.

Furthermore, vendors have started using Electronic funds transfer at point of sale (POS)
machine, enabling customers to electronically transfer fund. And Nepal people definitely
have developed a culture of using cash machines without a moment's thought.

1.3 Introduction of NIC Asia Bank Limited.

NIC ASIA Bank was founded as Nepal Industrial and Commercial Bank on 21 July
1998. It was renamed NIC ASIA Bank on 30 June 2013 after it merged with Bank of
Asia. The merger was the first between of two commercial banks in the Nepalese
Banking history. After the merger, NIC ASIA was recognized as ”Bank of the Year
2013-Nepal” by The Banker, Financial Times, UK. This is the second time that the bank
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was recognized with this prestigious award, the previous occasion being in 2007. The
Bank has successfully completed its 21 years of operation. The company has currently
the following wholly owned subsidiaries: NIC Asia Capital Limited and NIC Asia
Laghubittiya Sanstha limited.

NIC ASIA Bank Limited provides commercial banking services in Nepal. It offers
deposits, including call deposits, fixed deposits, special savings accounts, business
accounts, and social account deposits. The company also offers online banking services,
debit card services, cash management products, inward remittance, safety deposit lockers,
and dematerialization services. In addition, it offers loans and advancement, and small
and medium sized business loans. The company was formerly known as NIC Bank and
changed its name to NIC ASIA Bank Limited in June 2013. NIC ASIA Bank Limited
was founded in 1998 and is based in Kathmandu, Nepal with branches throughout Nepal.

The Bank was rechristened as NIC ASIA Bank after the merger of NIC Bank with Bank
of Asia Nepal on 30th June 2013. This was a historic merger in the annals of the
Nepalese financial landscape as the first of its kind merger between two successful
commercial banks in the country.

The bank, with its 360 branches, 671 atms, 118 extension counters and 51 branchless
banking service is the largest bank in terms of footprint expansion, customer base
including balance sheet size. Currently bank is providing services to more than 3 million
customers (2022, April).

NIC ASIA Bank has its roots in NIC Bank, established on July 21, 1998, and later
merged with Bank of Asia Nepal on June 30, 2013, becoming NIC ASIA Bank. This
merger was the first of its kind in Nepal between two successful commercial banks.
Currently, NIC ASIA Bank is one of the most successful commercial banks in Nepal with
360 branches, 671 ATMs, 118 extension counters, and 51 branchless banking units. The
post-merger integration phase was smooth, leading to accolades from regulators and
stakeholders. NIC ASIA Bank was recognized as 'Bank of the Year 2013-Nepal' by The
Banker, Financial Times, UK. The bank's history includes achievements like being the
first to introduce savings accounts bundled with life insurance and receiving ISO
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9001:2000 certification. The bank's board members include prominent individuals with
vast experience in business and finance. NIC ASIA Bank is committed to customer-
centric services and continuous improvement.

The bank is headed by Tulsi Ram Agrawal as its chairman and Roshan Kumar Neupane
as chief executive officer. Neupane was appointed as CEO of the bank on 2 December
2024 with 10 years tenure.

1.4 Covid-19 Impacts on Banking Sectors in Nepal

As the whole battles to minimize the effect of unprecedented COVID-19 pandemic,

Nepal is not as exception. Various temporary measurement and action have been taken by
the government to minimize its impacts however, the contingency measures put in place,
and to be taken in the future to contain the virus also come with economic ramifications.
The crisis has already put enormous strain on the economy and the financial sector, the
Nepali economy which was projected to grow by 15.7% has been re-forecasted to grow
only by 1.2% in the fiscal year 2021/022.

The long-term effects of the event may follow if a substantial number of large and small
businesses especially Small and medium-sized enterprises, bank and financial institutions
(BFIs) or other financial sector participants find themselves in deeper difficulties.
Therefore, to ensure smooth handling of the crisis, it's safe landing and minimize long-
term negative implications in the economy, adequate timely measures and actions should
be taken by the government and the central bank.

The government has already launched a temporary relief package while the central bank
has come out with few directives to provide immediate relief to the borrowers.
Nonetheless, the government is yet to lunch any comprehensive rescue or relief package
to protect businesses representing various sectors. As businesses are likely to take
significant time to return to normality, there is a higher risk of bank loan defaults and
insolvencies, unemployment and business closures. Some of the likely short-term and
long-term impact of the current crisis in the banking sector and some means to ease the
current challenges are highlighted below;

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  Asset quality,
 Interest rate,
 Liquidity,
 Securing the funding to the business,
 Uptake of digital transaction,
 Increased need for higher security.
Vision:
“To become one of the leading Investment and Merchant Bank in Nepal"
Mission:
“To provide innovative and best investment solution and excellent growth opportunities
as a good Corporate Citizen”

Objective

 To provide quality banking services

 The main objective is to accumulate the widely scattered deposits of shareholders
and provide them modern and innovative banking services plus a good return on
their savings.
 To enhance trust and relationship with the customers by incorporating high degree
of professionalism.
 To obtain sustained and competitive return on investment.

In achieving its corporate objective in pursuit of its corporate mission and vision, NICA
will:

 Comply with all relevant legislation, codes of conduct and standards of good
corporate citizenship in Nepal while maintaining full autonomy in the
management of its operations;
 Conduct its operations in an open and transparent manner;
 put local resources to work for local Asia, serving the rural community and its
aspirations;
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 provide a full and balanced rage of financial products and services that satisfies
the needs of the rural population of Nepal, on a profitable and sustainable basis;
 strive consistently to provide improved products and services to its clients at
reasonable cost, using modern banking, information and communication
technology in the most appropriate form to its client’s needs;
 be vigorous in building reputation for professionalism, competitive pricing,
reliability and quality of service and innovation;
 operate in accordance with best banking practice, acting with financial prudence
and keeping in mind the need to balance profitability with asset preservation and
liquidity and to safeguard depositor's funds;
 work together with its employees to develop their capabilities to contribute to
achievement of the bank's objectives, promoting excellence, rewarding
achievement and providing them the opportunity to share in the bank's success;
 develop mutually acceptable relationship with government in the pursuit of
improvement in living standards in rural areas, while respecting best financial
practices;
 ensure that its activities contribute to the environmental stability and overall
improvement of living standards in Nepal.

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1.6 Statement of Problem

The analysis of deposit and advance is the important part of financial analysis. Therefore
this report has been undertaken to seek the answers of following questions:

 What is the deposit position of the NIC Asia Bank during five years period?
 What is the position of saving time deposit?
 What is the total deposit & advance of the bank?

1.7 Objectives of thy Study

Without any target, we cannot reach any destination. The general purpose of this report is
to analyze the financial viability of the far western area. During this review, the reporter
has established the following specific objectives:

 To know about the sum of saving deposit collected by the bank in different fiscal
year,
 To determine growth rate in saving deposit,
 To determine proportion of saving and deposits amount.

1.8 Signification of the Study

 It is collection of banking system in an economy analogous,

 It mobilizes adequate amount of deposits in economy,
 It is expected that this study will provide professionals and interested readers too.

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1.9 Limitations of the Study

As every study has been conducted within certain limitation, the present study is also not
an exceptional one. So this also has certain limitation. The main is time factor. Following
are the certain limitation on the study: This study is conducted in partial fulfillment of the
requirement for the BBS 4th year. So, it possesses some limitation of its own. One of the
limitations of the study is; with regard to tempera coverage of the study to arrive any
meaningful conclusions regarding the trend in the pattern and structure of financing a
time service of fairly a long period are needed. But this study has covered only
last five financial years. Other limitations are as follows:

 Though there are 20 commercial banks, this study covers only one NICA.

 Being a student time and resources consentient

 Limited variable has been selected.

 Simple techniques has been used in analysis

 The qualitative factors such as growth and expansions policy of the bank
quality and general economic conditions have not been studied.
 Due to inadequate knowledge and lack of sufficient information, it doesn't seem
suitable to prepare this report,
 It covers only five year’s data 2075/076 to 2079/080 Dadeldhura branch only,
Data source is secondary.

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1.10 Structure of the Study

It has carried out a number of tasks to complete the proposed research study because this
study concerned with the saving deposit analysis of the Commercial organization.
According to the objectives of this study, the study has been classified into five chapters
and the chapters are as follows.

Chapter –ONE: Introduction

Chapter one is the introductory part of the thesis which deals with background of the
study, statement of the problem, objectives of the study, significance of the study,
limitations of the study and organization of the study.

Chapter – TWO: Review of Literature

Chapter two deals with review of related literature which consists of conceptual
framework of saving deposit analysis of Bank and review of related previous studies
conducted on the same topic.

Chapter – THREE: Research Methodology

Research methodology section comprises of research design, population and sample,

nature and sources of data, data collection procedure, research variables, tools and
techniques used in this study.

Chapter – FOUR: Data Presentation and Analysis

Chapter four deals with the presentation and analysis of collected data. To fulfill the
objectives of the study, data have been collected, arranged, tabulated and calculated using
various financial tools.

Chapter – FIVE: Summary, Conclusion and Recommendation

Chapter five is the concluding part of the report which consists of summary of the study,
conclusion and suitable recommendations on the basis of the study.

At the end of the chapters, bibliography and appendices have been incorporated.

CHAPTER-II
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 LITERATURE REVIEW

2.1 Review of Literature

Literature review is a critical summary of research on a topic of interest, generally

prepared to put a research problem in context or to identify gaps and weaknesses in prior
studies so, as to justify a new investigation. Literature review is defined is a survey,
discussion and discourse on the literature in a given area of the study. A literature review
is a summary and analysis of current knowledge about a particular topic or area of
enquiry."A literature review is the process of the locating, obtaining, reading and
evaluating the research literature in the area of year interest." P Haywood and E.C Wragg
(1996)

"A literature review is a self-contained unit in a study which analyzes critically a segment
of a published body of knowledge through summary, classification and comparison of
prior research studies and theoretical articles." F Cardesco and E.M Gatner (1986)

A literature review surveys scholarly articles, books and other sources relevant to
particular issue, area of research, or theory, providing a description, summary and critical
evaluation of each work. The writer has done preliminary search, which has helped to
generate and refine research ideas and profitability of the banks Many researchers have
conducted their research in the field of banking sector especially financial performance,
fund mobilization policy etc. Beside these, there are some books, articles and other
relevant studies written in the topic of profitability of banks. Some of the relevant studies,
their objective findings and theoretical review have been discussed below. The researcher
went through online and offline on the definition of banks, banking facilities, the origin
of banks and the growth of the banking sector in the Nepalese and global context before
choosing the subject for the field study. Various textbooks, bulletins and studies have
been received. The annual report of the chosen bank previous fieldwork studies,
textbooks and banking legislation and regulation were reviewed in order to define and
understand the context and situation of the field study issue. The online content was
reviewed in the 2009 Microsoft Encarta Library. In the same way the website of Nepal

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Rastra Bank and NIC Asia Bank has been visited by the researcher to gain an in depth
knowledge of the bank.

Solely economical manager of the corporate can do the set-up goals. If a bank doesn't
maintain adequate equity capital, it makes the bank riskier. If a bank has inadequate
equity capital, it should be used a lot of debt that has high fixed costs. The most
objectives of the bank square measure to gather deposits the maximum amount as doable
from the shoppers and to mobilize into the foremost profitable sector. If a bank fails to
utilize its collected resources than it cannot generate revenue. Resource mobilization
management of bank includes resource assortment, investment portfolio, loan and
advances, assets, fastened assets management etc. it measures the extent to that bank is
triple-crown to utilize its resources, to measures the bank performance in several aspects.
We should always analyze its monetary indicator with the assistance of economic
statements.

2.2 Conceptual Review

Microsoft Encarta defines bank as business offering financial services. It further explains
that this is a business that keeps money for individual people or companies, exchanges
currencies, makes loans and offers other financial services. The basic services a bank
provides are checking accounts, which can be used like money to make payments and
purchase goods and services savings accounts and time deposits that can be used to save

money for future use; saving accounts and time deposits that can be used to save money
for future use; loans that consumers and businesses can use to purchase goods and
services and basic cash management services such as check cashing and foreign currency
exchange. Four types of banks specialize in offering these basic banking services:
commercial bank, saving and loan associations, savings banks, and credit unions. But in
developing countries like Nepal, there are one more types of Bank-Asia Banks.

2.3 Some definitions of bank

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Simply, Bank can be defined as the institution which is legally authorized to create
money and credit. Many scholars have defined bank with different terms but with more
or less same meaning.

R.S Sayers defines bank as "I believe in that the banks are not purveyors of money, but
also in an important sense, manufacturers of money." G. Crowther defines bank in this
way-PA bank is an institutions, which collects from those who have it spare or who are
saving it out of their income and lends this out to those who require it.

2.3.1 Concept of Saving Deposit

A saving deposit is one of the sample type of bank account available to consumer letting
store case and earn interest bearing deposit bearing account held higher interest that
saving account. To the average person, it would seem like making deposits into their
savings or checking accounts would be viewed as a good thing. After all doesn't a regular
savings plan mean an individual handle their money responsibly and they have a good
plan in place to save for their for their future?

Savings accounts offer account holders interest on their deposit. However in some cases
account holders may incur a monthly fee if they do not maintain a set balance or a certain
number of deposits. Although savings accounts are not linked to paper checks or cards
like current accounts, their funds are relatively easy for account holders to access.

In contrast a money market account offers slightly higher interest rate than a savings
account but account holders face more limitation on number of checks or transfers they
can make from money market accounts.

2.3.2 Types of Saving Accounts in NIC Asia Bank

(A) NIC Normal Saving Account: - This is primary types of saving account deposit of
NIC Bank where the minimum balance rs. 1000 and the rate 3.650 to 6.650 percent
interest.

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(B) NIC Institutional Saving Account:- This types of saving account is for any
institution, any agencies or any companies and the minimum balance Rs. 5000 and
6.50 to 7.69 percent interest rate.

(C) Student super saving account:-This is types of saving account is minimum balance
0 and interest rate is 5.50 up to 6.50 percent

2.4 Review of Previous Work

It is systematic process, accumulations, analysis and evaluation of fact of knowledge on

selected topic of problem from previous work. For our study the review from previous
work is not available so the review from previous work is not taken. The review of text
book and other reference materials such as; newspaper, magazines, research articles,
journals and past project have included in this topic. Our country refuses ample resources
to prepare for its growth. Because of this too many construction proposals are pending. If
adequate capital is available it will spend and add to the prosperity of a nation in a
successful project. For example, when individuals deposit money in a saving bank
account for a bank, the bank must invest by lending the fund to carious business firms. In
return these companies can invest the cash in new factories and equipment in order to
increase their productivity. In addition to borrowing from the bank the bank must issue
stocks and bonds that it offers to investors in order to collect the money required to grow
its business. Government bonds are also released to obtain fund to invest in capital
incentive programs such as dam road and school building. In order to get an anticipated
future gain, all such contributions by people, industry and government require a presto
loss of profits. Consequently, investment increases the standard of living of a country.

2.5 Review of Previous Studies

It is systematic process for accumulation, analysis and evaluation of fact or knowledge on

selected topic or problem from previous work. For the review from previous work, the
previous work report is needed but previous work report is not available. So review
cannot be taken.

2.6 Research Gap

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It is clear from the above literature review that studies made on total deposit of different
firms offer limited finding in the context to Nepal. No special and core studies have been
conducted on the deposit mobilization of the bank. The earlier few studies conducted is
unable to assess the recent total deposit. So, more extensive testing and adjustment of
necessary variables are needed to be done. This study will evaluate the impact of total of
the bank more precisely and accurately. Although some previous studies have been
conducted in the similar topic, the present research work is a different .There is
fundamental difference between those and presents one. The previous researcher focused
dividend policy of different Asia banks. This research has further tried to identify the
Saving Deposit of NICA.

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 CHAPTER-III

RESEARCH METHODOLOGY

3.1 Introduction

The system of collecting data for research projects is known as research methodology.
The data may be collected for either theoretical or practical research for example
management research may be strategically conceptualized along with operational
planning methods and change management. Research methodology is the way to solve
the research problem in a systematic manner. It may be understood as a science of
studying how research is done scientifically. Scientifically and planned way of collection,
analysis and interpretation of data will be made to solve the research problem and
accomplish basic objective of the study. This study will be carried out to analyze examine
and interpret the profitability and its effectives in the cooperative organization with the
help of various financial statements, statistical tools etc. Research methodology will be
followed to achieve the objective of this research paper. The following contents of
research methodology are followed to conduct the research on this subject matter. Some
important factors in research methodology include validity of research data, ethics and
the reliability of measures most of your work is finished by the time you finish the
analysis of you data by formulating of research questions along with sampling weather
probable is followed by measurement that includes surveys and scaling. This is followed
by research design which may be either experimental or quasi-experimental. The last two
stages are analysis and finally writing the research paper, which is organized carefully
into graphs and tables so that only important relevant data is shown. The report study
attempts to acquaint the information about the types of bank and the additional facility
provided by NIC Asia Bank as well as report tries to compare the saving deposit of NIC
Asia Bank in financial year 2078/79. Hence descriptive research design as well as
comparative research design was used.

The data collection conducted for the report writing was based on both primary and
secondary source. Data was collected through direct personal contact with the officials of
the bank itself. For the process of direct of direct personal contact some formal type
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meeting is conducted related to the subject matter. The data about the matter also the data
already obtained by other is secondary data. As it is not feasible for anyone to gather the
data themselves, indirect information may be used to compile the study. The required and
valid secondary information was gathered from publications, newsletters, bank annual
reports, documents, journals, etc. These data included information on programs
equipment, training positions, recruiting process, leave pay etc. NIC Asia Bank provides
its customers with full-fledged commercial banking services. In addition to accepting
deposits, the equipment and resources are made available in several ways. There are a
few other types of information and collection methods, but there are mostly two
categories of data and mostly secondary data. In this field work study, the data used is
largely secondary. They key data sources were the five-year annual report, i.e., the
informal talks with the workers of the NIC Asia Bank were also from 2075/76 to
2079/80. Details provided by them, papers and bulletins from the numerous study-related
reference banks.

3.2 Research Design

Research design refers to the various sequential steps adopted by a researcher in studying
a problem with certain objectives in view. It is way to solve research problem
systematically. Research methods is the overall framework for how contract, process,
analyze and present data on table and diagram to find answer of the research problem
question/objective. It may be understood as a science of studying how research is done
scientifically. Research methodology describes the methods or process applied in the
entire study. This research is concerned with secondary data. For the purpose of
achieving the objectives the following methodology has been purposed. This include
research design, population and sample, source of data, data collection technique and data
analysis tools. After the collection, data analysis is performed for the purpose of data
ending, coding, tabulating. The researcher makes descriptive and statistical analysis of
those data. Statistical tool are used to make the analysis more effective, reliable and
authentic. To evaluate the financial condition and solving the problem of the analytical
tools researcher used.

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All collected secondary data arranged, scanned, tabulated various heads and then
descriptive have been carried out to enlighten the study. The collected data of this bank is
presented in table form and figure form using different types of diagram.
After the collection, data analysis is performed for the purpose of data ending, coding,
tabulating. The researcher makes descriptive and statistical analysis of those data.
Statistical tool are used to make the analysis more effective, reliable and authentic. To
evaluate the financial condition and solving the problem of the analytical tools researcher
used. All collected secondary data arrange, scanned, tabulated various heads and then
descriptive have been carried out to enlighten the study. The collected data of this bank is
presented in table form and figure form using different types of diagram.
3.2 Population and Sample
A population in most studies usually consist larger group because of its larger size it is
fairly difficult to collect detailed information from each number. A sub group is chosen
which in derived to reprehensive of population. This sub group is called a sample and the
method of choosing this sub group is done by sampling. The sample allows the
researchers more time to make intensive studies of a research problem.
All banks are considered as a population and here only NICA is taken as a sample for
research purpose.
3.3 Types of Data
The researcher uses secondary data for this empirical study.
b) Secondary data
The data that has already been gathered by someone else, this is called secondary data.
Advantage of the secondary data is, it is less expensive, data's already there -no hassles of
data collection.
3.4 Collection Data and Tabulation

The details gathered from the public data and the NIC Asia Bank official documents i.e.
annual report, newsletters and references related to the analysis are secondary and taken
from the reported fieldwork. No special technique has been used for gathering and
information.

3.5 Data Analysis

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Data interpretation is one of the key components of exact and real science results.
Researchers take activities as critical and carried out with great caution. Any valuable
statistical methods like standard deviation for the analysis of the collected data are used
for the analysis of the data, meaning that co-efficient of variance is used to obtain real
outcomes. Certain other statistical and mathematical methods are still used as needed.

3.6 Techniques and Instruments of Analysis

Techniques

Various analytical instruments and techniques, i.e., growth rates of saving deposit,
change in percentage of saving deposit, were added to the actual results of the analysis.
The data obtained were clustered accurately and displayed to achieve the target using
many graphs and charts.

Instruments:

Data instruments are the main tools for data analysis; researchers used annual report of
NIC Asia Bank, website of NRB and other websites and visit the NIC Asia Bank
Dadeldhura. And the report will be analyzed using following tools and techniques

• Financial ratio:

Ratio analysis is the systematic use of ratio to interpret the financial statements so that the
strengths and weaknesses of a firm as well as its historical performance and current
financial condition can be determined.

• Saving deposit to total deposit ratio:

This is the ratio between the amount of saving to amount of total deposit and it can be
calculation by the formula listed benefit.

Saving Deposits
Saving to total deposit ratio =
Total Deposit

This is the ratio between the amount of Institutional Saving amount of total deposit and it
can be calculated by the formula listed beneath.
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 Individual Saving Deposits
Individual Saving Account to total deposit ratio:
Total Deposit

This is the ratio between the amount of Institutional Saving amount of total deposit and it
can be calculated by the formula listed beneath.

Instutional Saving Deposits

General Saving Account to total deposit ratio:
Total Deposit

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 CHAPTER-IV

DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation and Analysis

Presentation and analysis of the data is the core of each and every research work. This
study requires some financial and statistical tools to accomplish the objective of the
study. The various results obtained with the help of financial, accounting and statistical
tools are tabulated under different headings. As the main objective of the study is to
analyze the deposit mobilization of selected banks; the necessary financial facts and
figures as well as descriptive information are gathered through the financial statement.
The major variables for the study are deposit balance, total investment, investment on
loan & advance, business loan and fixed deposit in commercial banks.

4.1.1 Bank Deposits

Bank deposits consist of money placed into banking institutions for safekeeping. These
deposits are made to deposit accounts such as savings accounts, checking accounts, and
money market accounts. The account holder has the right to withdraw deposited funds, as
set forth in the terms and conditions governing the account agreement. Savings Account
How Bank Deposits Work The deposit itself is a liability owed by the bank to the
depositor. Bank deposits refer to this liability rather than to the actual funds that have
been deposited. When someone opens a bank account and makes cash deposit, he
surrenders the legal title to the cash, and it becomes an asset of the bank. In turn, the
account is a liability to the bank.

4.2 Saving Deposit

A saving deposit is one amongst the sample form of checking account accessible to
Shopper rental store money and earn interest bearing deposit bearing time deposit
account Command higher interest that saving account. To the common person, it'd appear
to be Creating deposits into their savings or checking accounts would be viewed as an
honest factor. After all, does not an everyday saving set up mean a personal handle their
cash responsibly and that they have an honest set up in situ to save lots of for his or her
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future? Savings accounts provide account holders interest on their deposits. However, in
some cases, account holders might incur a monthly fee if they are doing not maintain a
group balance or a particular range of deposits. Savings accounts don't seem to be
coupled to paper checks or cards like current accounts, their funds area unit
comparatively simple for account holders to access. In distinction, a market account
offers slightly higher interest rates than a bank account; however account holders face a
lot of limitations on the amount of checks or transfers. They will build from market
accounts.

Table: 4.1 Saving Deposit Amount of NICA.

Fiscal year Amount (Rs in Millions)

2075/076 137
2076/077 159
2077/078 182
2078/079 257
2079/080 301
Source: Annual report of NIC Asia Bank ltd Dadeldhura branch (From 2075 to 2080)

Figure: 4.1 saving deposit

(Rs. in Million
350
300
Amount (Rs in million)

250
200
150
100
50
0
2075/076 2076/077 2077/078 2078/079 2079/080

Fiscal Year

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In above table and figure, it is clear that the total amount of deposit during the last five
year. Year wise deposits are Rs 138 million for 2075/076, Rs 159 million for year
2076/077, Rs 182 million for 2077/078, Rs 257 million for 2078/079, and Rs 301 million
for 2079/080.

Table: 4.2 Total Deposit amount of NICA

Fiscal year Amount Rs. (in million)

2075/076 230
2076/077 241
2077/078 273
2078/079 284
2079/080 264
Source: Annual report of NIC Asia Bank ltd Dadeldhura branch (From 2075 to 080)

Figure: 4.2 Total Deposit Amount

300

250
Intrest Rates(%)

200

150

100

50

0
2075/076 2076/077 2077/078 2078/079 2079/080

Fiscal Year

In above table and figure show that that the total amount of deposit during the last five
year. Year wise deposits increasing that in first four fiscal year 2075 to 2078 and fiscal
year 2079/080 is decrease in total deposit.

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 Table: 4.3 Saving deposit to total deposit ratio.

Fiscal year Saving Deposit Total deposit rs. (in Ratio (%)
( in million) millions)
2075/076 137 230 59.56
2076/077 159 241 65.97
2077/078 182 273 66.66
2078/079 257 284 90.49
2079/080 301 264 114.01
Source: Annual report of NIC Asia Bank ltd Dadeldhura branch (From 2075 to 2080)

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 Figure: 4.3 Change in percentage of saving deposit

(Rs. in Million
120

100
Change on Deposit (%)

80

60

40 Ratio (%)

20

0
2075/076 2076/077 2077/078 2078/079 2079/080
Fiscal Year

About table and figure represent the total amount of deposit during the last five year.
Total and saving deposit ratio is increase.

Table: 4.4 Normal Saving deposit rate

Fiscal year Interest rate

2074/075 4.50
2075/076 5.50
2076/077 6.30
2077/078 6.50
2078/079 7.50
Source: Annual report of NIC Asia Bank ltd Dadeldhura branch (From 2075-080)

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 Figure: 4.4 Normal Saving deposit rate

percentage (%)
8
7
6
5
Deposit on %

4
3 Interest rate
2
1
0
2075/076 2076/077 2077/078 2078/079 2079/080
Fiscal Year

Above table and figure represent that the total deposit interest rate during the last five
year wise interest rate 4.50 for 2075/076 and nest 4 fiscal year 2076 to 2080 increase
continuously 5.50, 6.30, 6.50, 7.50 respectively.

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4.3 Major Finding

 Saving deposit is one of the main sources of generating fund of NIC Asia Bank

Limited.

 NIC Asia Bank has a huge number of different types of deposit holders in saving

deposit account.

 NIC Asia Bank Limited has a sufficient liquidity position.

 NIC Asia Bank Limited has played a vital role to develop the banking system in

Nepal that's why the bank is under profit each year deposit of the increase in

completions.

 Saving deposit amount is in increasing trend over five years.

 Thus, the bank's performance is effective in profitability and towards the

customers and may attract more customers.

 Finally, the researcher can say that present position of the NIC Asia Bank Limited

is so good.

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 CHAPTER-V

SUMMRY, CONCLUSION AND RECOMMENDATION

5.1 Summary

NIC Asia Bank Limited is a commercial bank. Bank which deals with commercial
activities, are known as commercial banks. These financial institutes help to integrate
very financial activity of the community. The main objective of a commercial bank is to
play a vital role in the Asia of good trade. Commercial banks are mechanisms or
mobilizing fund in returnable resources.

As per the research studies, NIC Asia Bank limited of Dadeldhura branch is providing the
different types of saving and deposit facilities to the customers by opening different types
of accounts. During the study time, NIC Asia Bank Limited Dadeldhura branch have
huge numbers of deposit holders and able to accumulate a good and huge amount in
saving deposit with different interest rates.

They offer financial support to all types of business through providing various types of
loan and other financial services. Commercial banks aid the economic Asia of the nation
community and use the fund productively through product investment, the commercial
act 2031 defines a commercial bank as a bank which deals in exchanging currency,
accepting deposit, giving loans and is involved in commercial activities integrated and
speedy developed activities integrated and speedy Asia of the country is possible only
when competitive banking service reach every nooks and corner of the country. Today
number of commercial banks are concentrated in only few places because lake of Asia of
nations. So today it is challenging of government to formulate the new banking policy
rationally in remote area.

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5.2 Conclusion

This study is on saving deposit of NIC Asia Bank Limited. The objective of this study is
to know the position of NIC Asia Bank Limited. Regarding the saving deposit, its present
and future trend about the saving deposit schemes is the basic objective that is
considered. We found the share of saving deposit of all the commercial banks. Its
services to its clients. Other objective can be to know the total contribution of saving
deposit in the investment so as to earn is higher return. The researcher collects other
information about the bank. I preferred the website of the bank and annual report.

5.3 Recommendation

The overall results are satisfactory. But in some case the bank should take certain steps to

Improve the bank current deposit policy. Therefore, some recommendations are being put

Forward for its improvement along with its Asia. The recommendations are as follows:

 Bank should be aware of public belief and relationship

 Bank should be aware of its policy and qualitative services
 Bank should be aware of unhealthy competition of banking market.
 The bank should involve in different kinds of social and community Asia
Activities. It should make corporate social responsibility its integral objective in
this growing competition among the banks.

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 BIBLIOGRAPTHY

NIC Asia Bank Ltd Branch Office Dadaeldhura.

Asmita Publication Pvt. Ltd

Baral, K.J Keshar Jung, (2018) “Fundamental of corporate finance” Kathmandu:

Bank And Financial Instructional Act 2073

Khan, M. Y., and Jain, P.K. (1990). Financial Management; New Delhi: Tata McGraw

NRB act 2058

World Bank Report; 1996:232

Website:

www.nrb.org.np

www.NIC Asia Bank.gov.np

www.google.com

www.wikipedia.com

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