CHAPTER: I

INTRODUCTION

1.1 Background of the Study

Bank is an institution where monetary truncations are performed .it collected scattered
deposit from people and generate huge capital. Bank invests this capital as loan against
mortgage .So we can call bank as financial mediator. Bank provides interest to the
depositors in return of their deposit and takes interest from clients against loan facility
enjoyed by them from bank. In general interest rate on loan is higher than that of on
deposit.

To provide pre-determined interest to depositors against their deposit and invest the
collected deposit in risk free sector is it duty. Beside these bank has right to recover its
principle & interest if any misfeance by loanee.

The word bank was derived from "bankee" of French &"Banco" of Italian language it's
literal meaning is Bench. In ancient period people used to do monetary transaction
standing the bench. If they earned profit they used to worship the bench and if they beard
loss they used to breakdown and throw the bench. According to historical sources in
around 12th century banking activities were operated by the goldsmith to start the
practice of storing people's gold and valuables for safe keeping. When the goldsmiths of
Italy realized a large portion of profit in these activities they established a bank named
"Bank Of Venice" at 1157 A.D. The second was: Bank Of England" Established in 1401
A.D. and later it became the first central bank in the world in 1844 A.D.

1.2 Banking History In Nepal

In comparison with other developed countries, the development of banking system of

Nepal is far behind. The origin of banks in Nepal and its beginning of growth is
controversial. As in other countries, goldsmith and moneylenders were the ancient
bankers of Nepal. After that according to historical records, trader named "Shankadhar"
cleared the indebtness of the people and in the remembrance of this occasion, he
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introduce the "Nepal Sambat" the new Era. In the 14th century Jayasthiti Malla, the king
of Kantipur, introduced various measure of cast "Thankdhari". However they motivated
mainly towards profit making. Later in 1933 B.S. during the tenure of Prime Minister
Ranoddip Singh "Tejarath Adda" was established which carried to some of the banking
activities and it was the first step towards the institutional development of banking in
Nepal. Tejarath Adda did not accept deposit but only lends loan to the government
officials and the people against the deposit of gold and silver and other ornaments
charging 5% interest rate.

Banking in modern sense started with the establishment of Nepal Bank Limited (NBL) in
1994 B.S. It carried out the functions of modern commercial banks. The establishment of
NBL paved the path for development of banking in Nepal. Though this bank was given
the authority and responsibility of central bank, but with the change of time, "Nepal
Rastra Bank" was established in 2013 B.S. (1956-April-26 A.D.) Baisakh 14th as the
central bank of Nepal under Nepal Rastra Bank Act 2012 due to non-satisfactory banking
activities and political instability. It was established with a purpose to increase the usage
of Nepalese paper notes, to apply monetarism in all the parts of Nepal.

In 2022 B.S. Rastriya Banijya Bank was established, the second commercial bank as
public sector bank under Commercial Bank Act. The birth of this second commercial
bank brought a new Landmark on the history of banking development on Nepal
providing additional facility to the people.

The NRB will classify the institutions into "A" "B" "C" "D" groups on the basis of the
minimum paid-up capital and provide the suitable license to the bank or financial
institution.

Group 'A' is for the commercial bank, 'B' for the development bank, 'C' for the finance
Company and 'D' for the Micro Finance Development Banks.

1.3. Introduction of Laxmi Sunrise Bank Limited

Laxmi Sunrise Bank Limited, came into existence as the fifteenth commercial banks of
Nepal, starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an

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objective of providing competitive modern banking services in the Nepalese financial
market. The Bank has paid up capital of NPR 26.23 billion.

Laxmi Sunrise Bank Limited provides a wide-range of modern banking services through
410 points of representation located in various urban, semi-urban and rural parts of the
country, with 302 branches, 49 extension counters and 59 Branchless Banking Units.

The Bank has pioneered in providing modern banking services like Internet Banking and
Mobile Banking. With the implementation of Core Banking Software, FINACLE
(version 10), the Bank has been providing a robust, ultra-modern banking platform for all
customers throughout the country.

The Bank has been offering both Domestic and International Visa Debit and Credit Card,
accessible in all VISA linked ATMs in Nepal and India. It serves through 314 ATMs and
1100+ POS terminals across the country. Along with this, the Bank offers latest digital
banking services such as Mobile, Internet and QR payments.The Bank is recognized as
an innovative and fast-growing institution that always strives towards customer
satisfaction. It has transparent business practices, professional management, good
corporate governance, and Total Quality Management as the organizational mission.

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.

The Bank is recognized as an innovative and fast growing institution that always
strives towards customer satisfaction. It has transparent business practices, professional
management, good corporate governance, and Total Quality Management as the
organizational mission.

Laxmi Sunrise Bank Limited is a commercial bank in Nepal. The bank is an ‘A’ class
commercial bank licensed by Nepal Rastra Bank and has branches all across the nation
with its head office in Kathmandu which provides entire commercial banking services.
The bank was formed with merger between Laxmi Bank Limited and Sunrise Bank

3
Limited and started joints operations from July 14 2023 and renamed as Laxmi Sunrise
Bank Limited.

The bank's shares are publicly traded as an 'A' category company in the Nepal Stock
Exchange.[3] The bank currently has 262 [4] branches, 138 branchless banking units, 28
extension counters and 328 ATM terminals.

1.4 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:

(1) What is the deposit position of the Laxmi Sunrise Bank during period? (2) What is the
position of demand, saving time deposit ?

(3) What is the total deposit & advance of the bank ?

(4) To what extent the bank is leading to priority & deprive sectors?

1.5 Objectives Of The Study

We cannot reach to any destination without any goal. General objectives of this report is
to study about financial feasibility. . During the study the report has determined the
following objectives:

(1) To identify the fix deposit position of Laxmi Sunrise Bank Ltd.

(2) To analyze the impact of interest rate on fixed deposit of Laxmi Sunrise Bank Ltd.

(3) To identify changing trend of fixed deposit of Laxmi Sunrise Bank Ltd.

1.6 Importance of The Study

1. The present study has been under taken to find out the investment policy.
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2. It is collection of bank system in an economy analogous.

This Project work report is helpful to general public to know about the activities and the
positions of Laxmi Sunrise Bank Ltd.

1.7 Limitations of the Study

Though there was not serious problem for reporter during research but few technical
problems were faced by reporter while on field work. Because of busyness of staffs in
their official work it was difficult to get necessary data in time from them. On their
replacements they could not provide sufficient data timely. As a bank being a confidential
organization, staffs were hesitating to given data openly.

1. Due to inadequate knowledge and lack of sufficient information, it doesn't seem so

suitable to prepare this report.

2. It covers only three years data.

3. It has naturally been constricted by time as a 3 day visit to the bank is not enough.

4. The legitimacy of the report depends on the genuineness of the data sources that are
secondary by nature

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1.8 Structure of the Study

It has carried out a number of takes to complete the propose research study because this
Study concerned with the both corporate organization according to the objectives of this
study, the study has been classified into 5 chapter are as follows.

Chapter I: Introduction

Chapter I is the introductory part of the report 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 II: Review of Literature

Chapter II deals with the review of related literature which consist of the conceptual
framework and review of related previous study conduct on the same topic and Research
gap.

Chapter III: Research Methodology

Research design section comprise of research design population and sample nature and
sources of data collection procedure research variables tools and technique used in this
study.

Chapter IV: Data Presentation And Analysis

Chapter IV deals with the presentation and analysis of collected data of fulfill of the
objective in the study data have collect arrange tabulated and calculated using various
financial and statistical tools.

Chapter V: Summary, Conclusion And Recommendation

Chapter V is the conducting part of thesis which consist of summary of the study.
Conclusion and suitable recommendation on the basis of the study at the end of the
Chapter V biography and Appendices have been incorporated.

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 CHAPTER - II

LITERATURE REVIEW

2.1 Concept of Literature Review

A literature review is a critical analysis of a segment of published body of knowledge

through summary, Classification and comparison of prior research study review of
literature, and theoretical articles, literature review are secondary sources and as such, do
not report any new original experimental work also, a literature review of literature is a
crucial aspects a planning of the study, the main propose of literature review is to find out
works have been done in the area of research problem under study and what has not been
done in the field of the research study been under taken with reference to the study, total
deposit of Laxmi Sunrise Bank this unit of the study tries to describe about the deposit
position of Laxmi Sunrise Bank decide this chapter highlights the literature that is
available in concerned subject as to my knowledge, research works, relevant study on this
topic and review of thesis works performed previously

This chapter is divided into following sections the first sections is conceptual review
which covers the topic such as concept of deposit the second section is review, which
covers the topic such as concept of deposit, the second section is related about the books
article and the pre done thesis related to the subject matter, this chapter highlight up on
the literature that have been already conducted by sum thesis research in this article of
topic of joint bank venture bank. Sum of them, as are supposed to the relevant for this
research proposed. And third section deals about research gap.

2.2 Conceptual Review

The review of Text books and other reference materials such as newspaper, magazines,
research articles, journals and past thesis have been include in this topic. Deposit is the
various types of from public especially from its client. It includes saving account, deposit
account, current account, fixed account deposit etc. These deposits are payable after a
certain time period. Banks pay interest on saving and fixed account deposits but does not

7
pay interest on current account. In the additional, many Nepalese banks offer deposit
scheme, called "Call Deposit" which is popular among the business house.

2.2.1 Concept of Fixed Deposit

A Fixed deposit studies the behavior of non-maturity deposits over time and provides
institution -specific results needed to accurately estimate and manage interest rate and
liquidity risk. A comprehensive Fixed Deposit from Mark. Fixed Deposit Higher interest
rate, quarterly interest rate minimum fixed deposited of NPR 10000, additional 1%
interest rate for in ward remittance deposited.

2.2.2 Types of Fixed Deposit

1. Laxmi Sunrise Maha Muddati: This is the primary type of FD of Laxmi Sunrise
Bank where the time period of FD is 3 months, 6months and 1 years and the interest rate
is 7%, and 11% respectively.

2. Laxmi Sunrise NRN FD: This type of FD is for the NRN people i.e, for Non
Residential Nepalese.

3. Laxmi Sunrise Instutional FD: This type of FD account is for any Instutional, any
agencies or for any companies. And the time period and the interest rate in this type of
FD account are 3 months and 1 year and 6.5 and 7% respectively.

2.3 Review of Previous Work

The main purpose of literature review is to find what works have been done in the area of
research problem under study and what has not been done in the fiend of books, reports,
journals and research study published by various instructions unpublished dissertation
submitted by bachelor level student have been reviewed. The review of text book and
other reference materials such as newspaper, magazines, research articles, journals and
past project work have included in the topic. Bank deposit has been studies various
economist in the different manners, in a comprehensive case study Jayanal Ud-din
Ahmed (2009) finds that growth of deposit is affected by various factors such as GDP,
interest rate and exposition of bank branches however these factors do not effect deposit
8
growth directly and in order to have a comprehensive picture the microeconomics
condition of the country must be studied.

Study of deposit and credit deposit ratio by M.syed Ibrahim (2011) suggested that there is
a positive relationship between demand and times deposit. Growth of deposits per bank
office since 1000 has been more than growth up credit per bank of office. His studies also
those that investment deposit ratio and priority sector advance to total have improved
during the period. The author concludes that over all operational efficiency of schedule
bank has improved.

2.4 Research Gap

It's clear from the above literature review that studies made on total deposit on different
from offer limited finding in the context of Nepal no special and core study have been
conducted on the total deposit of the bank. The earlier few studies conducted is a 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 deposit of t he
bank more precisely and accurately. Statistical tools have been used in the study.

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 CHAPTER-III

RESEARCH METHODOLOGY

3.1 Introduction
There is a need for a systematic methodology for any result to be carried out for any kind
of study research is the constant search for the knowledge. Here as methodology refers to
the various sequential steps used to a certain the study for the fulfillment of the objectives
of the study. Necessary data and information have been collected and hence the
methodology has been classified into types research design population and simple types
of data collection procedure instruments techniques of analysis and limitations.
3.2 Research Design
The study have been done to analyze the trend and pattern of the contribution made by
the total deposit of the bank. Descriptive research design has been applied to fulfilled the
requirement of the study. Data have been interrupted through filled observation use of
stoical tool and short interviews the function concerned authorities.
3.3 Population And Sample
Typically, the population is very large, making a census or a complete enumeration of all
the values in the population either impractical or impossible. The sample usually
represents a subset of manageable size. Samples are collected and statistics are calculated
from the samples,so that one can make inferences or extrapolations the sample to the
population. Among the many branches of Laxmi Sunrise Bank this project is based on the
bank of Laxmi Sunrise Dadeldhura Branch only.

3.4 Types Of Data

Data are raw fact and figures having separate meaning. It can be any alphabetical
numerical, or symbolic value,data can be primary and secondary.

1.Primary Data: First hand or originally, collected data by researcher is called primary
data interview, questionnaire, schedule questionnaire and observation are common source
of primary data.

10
2. Secondary Data: Data which are already collected, by other researcher or organization
is called secondary data. Government report and publications of private organization
news bulletins. Periodicals, researcher journals etc are common source of secondary data.
Under this study secondary data are used only.

3.5 Nature And Source of Data

There are many types of data and sources of gathering them but mainly there are two
types of data and they are primary data and secondary data. In this field work report the
deals that have been used are completely secondary. The main source of data have been
the three year annual report that is fiscal year 2077/2078-2079/2080 otherwise have been
the informal talks with the staff of Laxmi Sunrise Bank information given by them article
bulletins of the various references books relating to the study.

3.6 Collection of Data

All the data used in the field work is secondary and have been collected from the
published data and the official report of Laxmi Sunrise Bank that is annual report,
bulletins and reference relating to the study. No particular tools have been used to collect
the data and information.
3.7 Techniques of Analysis And Instrument
Data obtained from the, various sources cannot be directly used in their original from
further they need to be verified and simplified for the purpose of analysis. Data
information, figure and facts. So obtained need to be checked, rechecked edited in
meaningful tables, which have been shows in annexes. Homogenous data have been
sorted in one table and similarly various tables have been prepared in understandable
Manner odd data excluded from the table. Using financial and statistical tools data have
been analyzed and interpreted. Data will be presented in pie chart, bar diagram and
calculation of different statistical tools whatever necessary.

11
3.7.1 Tabulatien and Graphical Presentation
Pie chart
Proportional area chart used almost exclusively in showing relative sizes of the
components of a data-set, in comparison to one another and to the whole set.
Line Diagram
A diagram that show the logic of an electrical circuit of system using standard symbols.
Also known as a ladder diagram because the diagram appears as individual lines of
"rungs" connected between two vertical lines.

Bar Diagram
A bar graph displays data visually and is sometimes called a bar chart or a bar graph.
Data is displayed either horizontally or vertically and allows viewers to compare items
displayed. Data displayed will relate to things like amounts, characteristics, time and
frequency etc. A bar graph displays information in a way that helps us to make
generalizations and conclusions quickly and easy.

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 CHAPTER- IV

DATA PRESENTATION AND ANALYSIS

Following data information, tables and diagrams related to the topic of total deposit of
Laxmi Sunrise Bank Ltd Branch of Dadeldhura has been presented an order to study clear
and understandable.

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 saving accounts, checking accounts, and
money market accounts. The account holder has the right to withdraw deposited funds, as
set forth in the terms 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 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 Fixed Deposit

A fixed deposit, also known as an FD, is an investment instrument offered by banks, as

well as non-banking financial companies (NBFC) to their customers to help them save
money. With an FD account, you can invest a sizeable amount of money at a
predetermined rate of interest for a fixed period. Some banks may offer additional
services to FD holders such as loans against FD certificates at competitive interest rates.

4.2.2 Number of Fixed deposit amount

Table 1: Fixed deposit amount

Fiscal Year Fixed Depositor

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 2077/078 2790

2078/079 2900

2079/080 3100

Source: Annual report of LSBL [From 2077/080]

Figure 1: Fixed deposit of LSBL

12
Fixed deposit of KBL

10

8
Amount in Number

6 Fixed Depositor

0
2077/078 2078/079 2079/080
Fiscal Year

In above the table and figure, fixed depositors of LSBL last three fiscal year are
demonstrated. Years 2077/78 fixed depositor 2790. Similarly in year 2078/079 the fixed
deposit is 2900 and fiscal 2079/80 fixed deposit 3100. So the bank liquidity position is
very good shows the fixed deposit in above table and figure.

Table No.2 Total Costumer fixed deposit (in Million)

Fiscal Year Amount in (NPR)
2077/078 5758
2078/079 6231
2079/080 6600

Source: Annual report of LSBL [from 2075/076- 2078/079)

Figure No.2 Total Costumer fixed deposit (in Million)

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 Customers Fixed Deposit Amount

5758
6600
2077/078
2078/079
2079/080

6231

According to figure no.2 we can see the increasing trend of fixed deposit of Laxmi
Sunrise bank limited in years 2077/078 to 2079/80. The fixed deposit in the year 2077/78,
the fixed depositor is increasing by 5758. In the year 2078/79, the fixed deposit increased
by 6231. In the year 2079/80, the fixed deposit increase by 6600,

Table No. 3 Percentage Change in fixed Depositor Fiscal Year

Fiscal Year % in fixed depositor
2077/078 11.11
2078/079 12.25
2079/080 15

Source: Annual report of LSBL [from 2077/78- 2079/80)

Figure no. 3 Percentage Change in fixed Depositor

60
% in fixed depositor
50

40

30
% in fixed depositor

20
15

10
 50% 100% 150% 200% 250% 300% 350%

Therefore we can see the depositor in Laxmi Sunrise bank limited increasing both
trend. Through the amount of fixed depositor increasing at growing rate exert in terms of
percentage. According to table no 3 we can see the increasing trend of fixed deposit of
Laxmi Sunrise bank limited. The fixed depositor in years 2077/78 the fixed depositor to
11.11% this number will happen 12.25% in year 2078/79. The fixed depositor is 15% in
year 2079/80.

Table No. 4 Yearly Deposit and Growth (in Million)

Fiscal Year Yearly Deposit Cumulative Deposit Growth Rate
2077/078 5758 21268 -
2078/079 6231 27499 29.30
2079/080 6664 34163 24.23

Source: Annual report of LSBL [from 2077 to 080)

Figure No. 4 Yearly Deposit and Growth (in Million)

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 7000

6000

5000

4000
Yearly Deposit
3000 Growth Rate

2000

1000

0
2077/078 2078/079 2079/080

Above table 4 shows that the deposit growth rate is zero in year 2077/78, growth rate is
decreasing up to 29.30%. In year 2078/79, 2079/80 growth rate is 24.23 finally the
growth rate is positively decreased up.

4.4. Major Finding

 Fixed deposit is one the main sources of generating fund of Laxmi Sunrise Bank
Ltd.

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 Laxmi Sunrise Bank Ltd 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.
 Laxmi Sunrise Bank Ltd has a sufficient liquidity condition.
 Deposit utilization rate is satisfactory of Laxmi Sunrise Bank Ltd.
 Fixed deposit interest rate is high then other deposit.

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 CHAPTER-V

SUMMARY, CONCLUSION AND RECOMMANDATION

5.1 Summary

The study was conducted for the fulfillment of the requirement of the degree of BBS and
to again some practical knowledge. The study was focused on the Fixed deposit of Laxmi
Sunrise Bank Ltd branch office Dadeldhura, established in 2065-03-29 B.S.

The report was subjected to find out various things related to the topic of deposit
collection such as No. of depositors, total amount of deposit under various account and
growth rate in deposit. The report was also subjected to find out the things related to the
topic "Leading" such as amount of leading in different types of loan, growth rate in loan
and proportion of leading in priority and deprived sector. The relevant data was collected
from Laxmi Sunrise Bank Ltd branch office Dadeldhura. Secondary data as well as
primary data collection approach was used in the collection of necessary data and
information required for the study. All the available data were grouped under several
heading and interpreted by different statistical techniques.

5.2 Conclusion

After going through the overall study which mainly focused on the financial analysis of
the Laxmi Sunrise Bank Ltd, it can be concluded that the bank was still in good shape
and it could delivery yet another year of stable financial performance in the backdrop of
an extremely challenging and dynamic business environment. The bank's capital position
is more than adequate to meet their business needs and receives the fixed NRB's capital
adequacy requirement under the Basal capital accord and also exceeds the international
norms. Euro zone economic crisis seemed to affect the banks operation to some extent.
The volatile political situation coupled with low economic growth, widening the trade
deficit. From the data analysis and measure finding drawn, it can be concluded that the
liquidity position of Laxmi Sunrise Bank Ltd was better since the cash and bank balance
of Laxmi Sunrise Bank Ltd are great than other. The main sources of found of Laxmi

19
Sunrise Bank Ltd is fixed deposit. Recently it is facing competition from newly
established join venture bank insurance companies and financial intuition, so it is highly
recommended to change the strategy regarding fixed deposit. It is better to increasing the
rate on fixed deposit. Laxmi Sunrise Bank Ltd should be more market oriented, service
oriented step forward on new business activities development manpower offer a complete
range of financial service to give emphasis on technology development Bank should
follow and adopt all direction rule and regulation of Nepal Rastra Bank (NBR) for the
sake of national development. They should be access small medium and higher level
customers in enjoyment deposit borrowing and other facilities. They should adopt
efficient and latest market strategy to make their transactions more capable as well as
fulfill growing demand of new financial service facilities.

5.3 Recommendation

Tendency of global homogenization of financial institutions, which means that intuitions

tend to invest in similar areas and have similar investment strategies, is prevailing in the
context of Nepal. The reason for this tendency is the financial deregulation.
Consequences might be that there will be no banks that serve specific target groups and
e.g. small scale producers are left behind. The bank which is able to give the service to
the small scale business and the indigenous folks tends to the further business expansion
and ultimately they lead toward the climax of success.
Most major banking problems have been caused by weakness in loan management.
Banks should now have a keen awareness of the need to identify measure, monitor and
control credit as well as to determine that they hold adequate capital against these risks
that they are adequately compensated for risks incurred. Every organization needs profit
to survive for long period which is the fact but also profit is not everything. It would be
better for the bank if there is excellent management and the excellent servies, cooperation
will all the costumers of the bank and excellent team work within thewithin the
organization which is the key elements for the survival of the bank as well as for its own
goodwill. On the basic of the major findings and conclusion drawn, the following
recommendations have been provided.
 Profit is life blood of any organization. Profit maximization is the objectives of
any organization. So, banks are recommended to diversify its investment on more
profitable sector and adopt sounds investment policy rather than conservative
policy.

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 Fixed deposit is like a core instrument to achieve the highest profit in the
organization. One can be achieved only at cost of other. If bank has high liquidity
it cannot be sound in profitability as it has to hold more assets in the form of cash.
So banks should try to make balance and maintain reasonable liquidity to get
optimum level of profitability.
 In this research the researcher finds that fixed position of Laxmi Sunrise bank
limited is growth which is going to be up respectively every year. So the present
position of bank is so good. According to bank history the entire department of
bank is well managed and well directed. And finally the bank earned maximum
profit this year so all shareholders were very happy of this bank.

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 REFERENCES

Laxmi Sunrise Bank Ltd Annual Report [2077/078 to 2079/080]

Annual Reports of Laxmi Sunrise Bank Ltd.

Book prefrence

Laxmi Sunrise Bank Branch, Branch office Dadeldhura.

Baral K.J. (2018) " Fundomentals of corporate Financial Markets and Institutions"

Kathmandu: Asmita Publication Pvt. Ltd

Website

http://www.google.com

http://www.lsbl.com.np

http://www.nrb.org.np

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