A Project on NABIL Bank Ltd. Kamaladi
Submitted By: Kiran Lama
T.U. Reg. No. 7-2-355-33-2005 Exam Roll No:7220009 A Field Work Report
Submitted to: Orient College Maharajgunj, Chakrapath
In the partial fulfillment of the requirements of the degree of Bachelor of Business studies .
Faculty of Management Studies TRIBHUVAN UNIVERSITY
RECOMMENDATION
This is to certify that the field work assignment report is Submitted by: Kiran Lama
Reg. No.:- 7-2-355-33-2005 Symbol No.:- 7220009
Entitled:
A project on NABIL Bank Ltd. Kamaladi
Has been prepared and approved by this department. This field work assignment report is forwarded for examination. Supervisors ………………………. Subash Acharya (Principal)
Date:-……………………..
ACKNOWLEDGEMENT This Report has been prepared as a prerequisite for the completion of the Bachelor Degree in Business Studies (BBS) of Tribhuvan University. I would like to express deep
appreciation and sincere thanks to the Management, Nepal Investment Bank Ltd. for providing me the opportunity and encouragement to work in prestigious bank. This program has in fact provided me high opportunity to learn about banking operation and in large extent about marketing in Nepal. So many people have contributed their support to me in preparing this report. First of all, I would like to thank Tribhuvan University for providing us chance and allowing me for this study. Besides, I would like to thank entire family of Nabil Bank for providing me a guidance and great support throughout my particular project. In this regard, I would like to express my cordial thanks to our supervisor, Mr. Subash Acharya,(Principal) and Mr. Sushil Raj Das (Lecturer) of Orient College, for their keen supervision, advice and support throughout the preparation of the report. Lastly, I would like to thank all the valuable people for having spared their time to assist me by sharing their views on the subject.
Kiran Lama BBS, 3rd Year
Table of contents
Chapter 1..................................................................................6 Introduction......................................................................6 Origin Of Bank:...............................................................6 Meaning of Bank..............................................................6 History of Bank In Nepal.................................................7 Commercial Bank............................................................8 Commercial Banks in Nepal............................................8 Introduction Of Nabil Bank Limited................................8 Branches...........................................................................9 The Board of Directors of Nabil Consists of :-..............10 Deposits..........................................................................11 Guarantees......................................................................11 Credit Cards...................................................................11 Tele-banking..................................................................11 Western Union Money Transfer.....................................11 SWIFT (Society for Worldwide Inter Bank Financial Telecommunication)......................................................11 Safe Deposit Locker.......................................................12 Automated Teller Machines (ATM) .............................13 Other facilities................................................................13 Introduction To Deposit.................................................13 Types of Deposit and its Account opening Procedure ...13 Types of Deposits...........................................................14 Interest Bearing Deposit.................................................14 Non-Interest Bearing Deposit........................................15 Statement Of Problems..................................................19 Significance of the study................................................19 Objective of the study...................................................19 Limitation of the study...................................................19 Methodology Of Research.............................................20
Research Design.............................................................20 Sources of Data..............................................................20 Data Processing Techniques..........................................21 Summary, Conclusion And Recommendation .......................23 Summary........................................................................23 Conclusion.....................................................................23 Recommendations..........................................................24
Chapter 1
Introduction
Origin Of Bank:
It is very hard to collect the correct information of the origin of bank. The World Bank has derived from the Italian world “Banco”. Which means accumulation of money of stock. The world of “Banco” is origin and evaluation of bank. The Banco means “Bench” So it can also be said that bank is to stay in chair one place and do the money the business and banking play significant role in the development of country, the bank of Venice that was established in 1158 AD was the first hank in the history of banking. The bank of Barcelona Spain, which was the establish in 1401 A.D was the second bank of the world. The first center bank was the bank of England whit was established in 1844 AD.
Meaning of Bank
Bank is a financial intuition, which is engaged in monitory transaction. Bank has always been the most importance and largest financial intermediates. Bank collect-scattered money from public providing those interests and services. This collection becomes the capital for the bank to invest. So the place where time money transactions are done is called Bank. Hence money of the bank is better to be precise and clear. Importance meanings 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 Prof. Kinley “A bank is an established which makes to individuals such advances of money as may be required safer made and to which individuals entrust money when not required for use.” According to Harace White: “Bank is a manufactures of credit and machine for facilitating exchanges” “According to Dr. H.L. Hart “A bank is one who in the ordinary course of his business receives money which he repays by honoring Cheques of persons from whom or on hose account lie received it. According to G. Growther:“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. Therefore the bank is an institution which accepts deposits from the public and, it turn advances loan by crediting bank plays the ital role in the economical condition too and
creates money administer the payment system interest rates and intermediate between the saving and investment.
History of Bank In Nepal
The modem banking practices are recent origin our country historical evidences show the presence of some crude banking practices in the earlier period of time. The contributors to the respective time ate considered to be King Guna Kam Dev a sudra merchant Shankhadhar the business group. "Tankadharies" of Kantipur and also Tejarath a government financial Institution established by Rana Prime minister Rannoddip Singh. More over the setting up of "Tejaratha Adda" Considered as the father of modern banking institution in Nepal.” has been regarded as the first remarkable step in organized banking. The first bank to be initiated in Nepal was the commercial bank. The pioneer in the modem bank the history of Nepal Bank Limited, which was established in the year 1994 BS of 30 Kartik Nepal's Center Bank Rastriya Banijya Bank was established in 2013 BS of Baisakha to perform the function of Center Bank in Nepal. Subsequently another State owned commercial bank. Rastriya Bank Ltd was established with join venture of Habib Bank of Pakistan. Nepal SBI Bank followed Himalayan Bank Ltd. in the year 2051 BS. Nepal Bangladesh Bank followed Himalayan Bank Ltd. in the year 2051 BS. Nepal Bangladesh Bank Ltd. Everest Bank Ltd. and Bank of Kathmandu Ltd. were established in 2051 BS. Now in Nepal so many commercial banks are established run for smoothly. Principal of Banking & insurance Sharejung Khadka & Hridhaya Bir Singh Banking has conic to the present advanced form through various stages. Some sort of banking activities have been carried out since the time immemorial. Traditional forms of banking were traced during the civilization of Greece, Rome and Mesopotamia. As early as 2000 BC as a joint stock bank later in 1844 AD it became the first central bank in the world. The goldsmiths and landlords were the ancient bankers of Nepal as in other countries. They lent money against the deposit of gold, ornament or securities of land. The moneylenders charged high 1933 BS (1876 AD) but it did not carry out all the banking activities. Tejarath Adda did not collect deposit form the public but gave loans to employees and public against the bullion. However Nepal Bank Limited was the first and real commercial bank in Nepal, which was established in 1994 BS(1947). Nepal Rastra Bank, the central bank of Nepal was established in 2013 BS (1955 AD) In 2024 BS an industrial bank namely Nepal Industrial Development Corporation (NIDC) was established. of Nepal Rastra Bank. In 2042 BS Nepal also adopted liberal free economic policy and allowed to establish other joint venture banks under collaboration with foreign banks as well as under private sectors. At Present there are about 15 commercial banks with many branches are operating in Nepal. Finally, a bank is an institution, which deals with money by accepting various types of deposit disbursing loan and rendering other financial services. Since banks are rendering a wide range of services to the People different walks of life, they have become and essential part of modern society.
Commercial Bank
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 hank deposit and bank deposit into cash, transferring bank institution to other, giving bank deposit in exchange for cheques. 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 deposit is the main faction of commercial banks.
Commercial Banks in Nepal Commercial Bank
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
Nepal Bank Limited Rastriya Banijya Bank Nepal Indosuez Bank Nepal Arab Bank Limited Nepal Grindlays Bank Limited Himalayan Bank Limited Nepal SBI Bank Limited Nepal Bangladesh Bank Limited Everest Bank Limited Bank of Kathmandu Bank of Ceylon Lumbini Bank Limited Nepal Industrial & Commercial Bank Limited Laxmi Bank Limited Kumari Bank Limited Nepal Investment Bank Limited Machhapuchhre Bank Limited
Introduction Of Nabil Bank Limited
Nabil Bank Limited (Nabil) commenced its operation on 12 Jul, I984 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 3lst December 2001. Nabil is the pioneer in introducing maims innovative products and marketing concept in banking sector of Nepal with 15 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 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. Now, the Authorized capital of the bank is Rs. 500 million while the issued and paid up capital is Rs. 49,16,54,400. The share holding of NABIL Bank Ltd. is as following. N.B. (International), Ltd., Ireland Nepalese Public Local Financial Institutions Total
50% 30% 20% 100%
Figure A Share Holder N.B. (International), Ltd., Ireland
20%
Nepalese Public 50% 30%
Local Financial Institutions
Nabil invites you to visit its branches/counters to have the taste of fledge banking services
NABIL BANK LIMITED HEAD OFFICE Nabil House, Kamaladi, Kaqthmandu
Branches
1. Kantipath Branch, Kantipath 2. Nabil House Corporate Banking, Nabil House, Kamaladi, Ktm. 3. New Road Branch, New Road 4. Jorpati Branch, Jorpati 5. Lalitpur Branch, Kupondole 6. Airport Exchange Counter, TIA 7. Credit Card Counter, Thamel, Ktm 8. Biratnagar Branch, Goswara Raod
9. Itahari Branch, Main Road, Itahari 10. Butwal Branch, Main road, Butwal 11. Bhalwadi Branch, Bhalwadi, Rupandehi 12. Pokhara Branch, Chipledhunga, Pokhara 13. Bhairahawa Branch, Narayanpath 14. Credit Card Counter, Lakeside, Pokhara 15.Birgunj Branch, Adarshanagar, Birgunj 16. Alau Branch, Alau, Parsa
The Board of Directors of Nabil Consists of :-
Chairman Director Director Director Alternate Director
Mr. Satyendra Pyara Shrestha, NB(International) Limited Mr. Supriya Gupta , NB(International) Limited Mr. Mukunda Nath Dhungel, Nepal Stock Exchange Limited Mr. Mohiuddin Ahemd, NB(International) Limited Mr. Manish Gupta, NB(International) Limited
Figure B
Products & Services
Deposits
Credits cards
Lending
Tele- banking
Safe Deposit Locker
Transfer Fund
Deposits
Following types of accounts can he opened at any NABIL branches upon completion of simple documentary requirement. All the accounts can he opened in various currencies (against which rate are provided) subject to ruled of opening and fulfilling the required documents. Savings Current Fixed Call
Guarantees
NABIL Bank issues guarantees and Bonds on behalf of customers to the beneficiaries in Nepal. Upon fulfillment of requirement, NABIL, also arranges issuance of guarantees in the name of foreign beneficiaries through reputed international banks.
Credit Cards
NABIL is the first bank in Nepal to issue Rupee (valid in Nepal and India) and international valid worldwide) Master card, cards in Nepal, a global prestigious service to its esteemed clients NABIL is also expanding credit and facilities issuing visa credit card very soon. Tele-banking
Telephone banking is another product provided by NABIL bank to its customers. Under this arrangement customer can know the balance of his account through telephone with out human assistance.
Western Union Money Transfer
NABIL bank has established unique money remittance system with western union financial service whereby money can be remitted anywhere in the world within minutes, through online computer system funds can world. Nepali wage earners abroad can send money to their near and dear ones in Nepal within a very short time. By using the above services, you can now send and receive money within minutes in 165 countries in the world.
SWIFT (Society for Worldwide Inter Bank Financial Telecommunication)
NABIL has started Worldwide transfer of fund by this fast and efficient funds transfer and messaging system. Messaging and fund transfers are carried through SWIFT with minimum time and cost.
Safe Deposit Locker
NABIL provides safe deposit lockers to keep valuables safety at a minimum cost. Presently, this facility is available at Kantipath and Kamaladi offices.
Automated Teller Machines (ATM)
NABIL has launched the ATM facility to its account holders to enable fast withdrawal of funds in account holder need not wait long hours for withdrawing money and sign cheques anymore. A simple card with a unique PIN number known only to the account holder will suffice.
Other facilities
The bank provides the facilities for the customer like deposit services, loans and advances, consumer finance, cash management. remittance services etc.
Introduction To Deposit
Deposit collection is one of the main features of commercial bank. A commercial bank receives deposit in different accounts namely current, fixed and saving. These are the direct deposits. When a bank receives cash it grants a right to the depositors to withdraw it whenever they like Nepal Banijya. Bank Act has regulated all the deposit 2031. The act specifies. “Deposit mean amount deposited in current fixed and saving deposit account of hank of financial institution’s. Among many functions of a commercial bank the main function is deposit function which all the commercial banks perform in simple terms, deposit is a function of collecting surplus from savers. Bank accepts deposit from those that can save but can’t utilize profitably. People accidents, the deposit of commercial banks is increasing because people know its importance. So banks accept money on current saving. Banks utilize efficiencies to attract more deposits to increase credit activities. Deposits are with draw able according to the terms of contract with the depositors to attract the people o deposit the bank maintains different types of deposit accounts.
Types of Deposit and its Account opening Procedure
Deposit is the major source of fund of commercial bank, which is generated in the hands of customers, government, corporate bodies, public enterprises, individuals and others and a surplus. Main features 1. Purpose: saving, fixed or call (short term) 2. With maturity or without maturity 3. Interest bearing and non interest bearing It interest bearing: Calculation of interest on monthly minimum balance, or average balance Payment of interest quarterly or semi annually
3
Special arrangement with any other deposit account
4
Operate or nom operative If operative: Limitation on frequency and amount of withdrawal: yea or no 6. Time liabilities or demand liabilities.
Types of Deposits
Deposits of commercial banks can he categorized into following two categories 1. Interest bearing deposit 2. Non interest hearing deposit
Interest Bearing Deposit a.
Saving Deposit
The pm pose of saving deposit is to encourage the habit of saving among the common people and institutions. Saving deposits attract interest which is normal less than that of longterm deposit but more than that of short-term deposit. There is restriction in this account to withdraw any amount. The with more funds for the credit activities, interest is paid in this deposit account. According to Commercial Bank Act, the saving account means an account of amounts deposited in a bank for savings purposes. Saving Account are generally opened for the savings of customers (individuals, nonprofit organization, charitable trusts, clubs, associations and cooperative) who want to save for meeting future needs, Savings accounts is suitable for the customers who do not want to withdraw frequently or who do not want to keep certain amount for fixed long period The main features of such accounts are as follows: i. Interest bearing ii. Restriction or limitation in respect of both the amount of withdrawal and frequency withdrawal. iii. Purpose and period of such deposit is for savings purpose for the individuals who do not want frequent withdrawals and who do not want to keep money for fixed long period. b.
Fixed Deposit! Term Deposit
Another source of deposit is the fixed deposit account. Money in this account is deposited for a fixed period of time, which cannot be withdrawn before the maturity of time. The rate of interest on this account is higher than other accounts. It is also known as time deposit. General this is for three months to five years. According to Commercial Bank Act, fixed account means the account of amount deposit in a bank for a certain period of time. The main features of such accounts are as follows:
c.
i.
Specific period Normally the bank is not bound to repay the amount until the maturity of the fixed deposit. However, on request of the depositor, a banker may liquidate the fixed deposit and repay the amount, interest will be paid at the discretion of the banker.
ii.
Non operative Fixed deposit account is non operative i.e. depositing into or withdrawal from fixed deposit account as in case of savings and current deposit account is not allowed. Call Deposit
The banks may accept deposit for short period of time to meet the short fall and such deposits secured from money market and having element of overnight stay is called call deposits. The rates of interest of such funds are not fixed hut are dependent on demand and supply of funds in the money market. Such all deposits become payable on demand and hence such deposits become payable demand and hence such deposits are considered demand liabilities of the bank. i. ii. iii. iv.
Non-operative Short term: overnight stay Interest rate not fixeda Payable at demand d.
i.
Other Deposit
Bearer Certificate of Deposit
It is a scheme of special type of deposit where some specified amount of money for specific period of note is accepted as deposit against a certificate given by the banker to a customer. A bank issues such the principal amount and will issue the will issue the certificate for such amount which will include the interest payable at maturity on the amount deposited. On maturity date any person presenting the certificate at the bank can encase the same. Such types of deposits are considered as time liabilities.
i. ii. iii. iv.
The major feature of such deposit are as follow s:— Negotiable with prepaid interest having fixed maturity No particulars of the depositor contained in the certificate. Opening of account is not required It could be discontented before maturity
Non-Interest Bearing Deposit
a. Current Deposit Account. Current deposit is also known as demand deposit as the deposit is with draw able on demand. Current deposits are withdrawn able on the demand of the customers. Banks have to make themselves ready to pay the depositors at hand to pay according to the wish of the customer. If the bank cannot pay the customer according to the demand,
the reputation of the bank may fall of the banking activities may tail. The business people, business institutions who have to withdraw at any time, normally open it. Since banks have to maintain high liquidity to meet customers demand, no interest is paid on such deposit. According to Commercial Bank Act the current account means an account of amounts deposited in bank. which may be drawn at any time on demand. i.
No yield As the cost of providing the facilities of current account becomes considerable to the banks do not pa any interest on the balance of current account.
ii.
Highly liquid and no limitation There is no limitation on withdrawal and deposit of any amount within banking hours Privileges
Overdraft facilities are provided to current account holder only. The banks normally sanction the loans and advances through current accounts since they are not given in cash. Account Opening Procedure 1. Application on the prescribed form
The customer who comes to hank with a desire to open an account in the bank should complete the application from designed in prescribed format. NABIL Bank also has its own The required to fill up the name, address, occupation, nationality etc. about the customer. The form is designed with a declaration that the applicant should accept that he should comply with the banks rule on force from time to time for the operation of the account. 2. Reference /Introduction
The selection of the customer is regarded to be done by the customer very carefully. After being satisfied about the identity of the account opening individual or film, the banker should take person incapable of making a valid contract. In such a case banker does not get any protection under Negotiable Instrument Act and is considered guilty of negligence. 3. Specimen Signature
The bank has Its own specimen signature card which is provided to the customer for putting one or more specimen signatures of him. These cards are indexed and placed in a visa desk in numerical order. These signature specimens are used by the bank bar issue and payment filing into hands of unauthorized persons and also to exclude the chance of replacements of it by fraudulent card. 4. Account Opening Mandate
The customer may authorize the third person to operate tile account for which clear instruction for operation of the account shall he noted on both account opening form and specimen signature cards. The name and the signature of the mandated must provide the copy of his/her citizenship certificate and must also be presented in the bank. Procedure for Opening Saving and Current Account.
1. The account opening form and specimen signature cards are required to be filled up mid submitted I he details in the form shall he checked by the account opening official, signature in the specimen he verified. The proposed account opener must be percent at the time put signature in specimen Signature ear in front of the account opening official 2. After being satisfied with the document and account and account opening from it is placed before the manager for approval. The document required for current accounts are as follows. They should provided a copy of: i.
For Proprietor business a. b. c.
Registration certificate Income tax certificate Citizenship certificate of the proprietor.
ii.
For partnership business a. b. c. d.
iii.
Registration certificate Income tax certificate Partnership deed Citizenship certificate of the partners Limited companies
a. b. c. d. e. iv.
Registration certificate Income tax certificate ]Board resolution for operation of account. Memorandum and articles Citizenship certificates of the directors NGO lobs school associations
a. b. c. d.
Registration certification Board resolution By laws Citizenship certification
(Those customers who fall under VAT payer should also provided a copy of VAT Registration certificate) Note: Copy of citizenship certificate in case of individual saving (for opening saving account in the name of associations, cooperatives, non-profit organizations like NGOs, charitable trust all the documents are required are required as in point (iv) above in case of current account is required). 3. Then the account opening official should allot an account no from basic number register in both the form and specimen signature card. 4. Account is opened in the computer also. 5. The particulars of account opening form and the account number is entered in the respective account opened and register. 6. Against the request for cheques book as mentioned in account number is entered in the cheques leaves are printed, blinded at the end of business hour and provided to the customer along with letter of banks next day. The cheques book numbers shall be recorded in the cheque book issue register and handed over to the part against his her acknowledgement. 7. The signature is scanned from the specimen signature card and placed fir final approval to the manager. 8. After the final approval the account opening form is filed in numerical order in the respective account type file. Procedure for Opening Fixed Deposit Account
1. Separate account opening form for fixed deposit is designed. The customer wishing to open a fixed deposit account shall till up such form and put the signature in the specimen card, which is same as in the case of saving and current account opening. 2. The form contains the rate of interest, period, amount and the nominee account for crediting the interest and two witnesses along with nominee form in the back. 3. The account opening official after being satisfied with the form allots a number from the basic number register and puts in the form. 4. The accounts opened in the computer and details are entered. 5. The details such as name, date of opening, rate of interest, maturity date, nominee a/c for interest should be recorded in fixed deposit register. 6. In case of fixed deposit being opened through the cheques, the official looking after the fixed account does the transaction. In case of back to the account opening official. 7. Then the account opening official shall issue the fixed deposit receipt. 8. The account opening form, specimen signature card, fixed deposit receipt and the voucher are placed before the manager for the final approval and signature. 9. Upon completion of full formalities as above the fixed deposit receipt is handed over to the customer against his/her acknowledgement on the counterfoil of the fixed deposit receipt. 10. The account opening form is filed in the numerical order in a separate file. The specimen signature card is placed is placed in the visa desk in numerical order once its gats scanned and approved by the manager.
Statement Of Problems
As we know that the main objective of any business organization e.g. Bank. is profit maximization. Deposit mobilization 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.
Significance of the study
Deposit collection is the major function of all commercial banks, which help to carry out almost all transaction of the bank. Mostly among the various deposit features provided by commercial banks, fixed and saving deposit are considered to be more important In the case of term deposit although the this deposit can be invested in short term loans with higher rate of return (interest) and hence it helps to earn high profits. So the deposits in the commercial banks have a good contribution to the country economy. If deposits are well intends to give general information regarding banking, deposits and prospects of the deposit and its mobilization in the country, which may give the general idea about banking, and deposits
Objective of the study
the objective of this fieldwork is to analyses deposits collected in NABIL. 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 NABIL bank. - To find out the deposit mix. - To analyses the cost of deposit - To analyses whether the deposits are being properly utilized or not Limitation of the study
The study does not present detailed analysis of deposit in NABIL due to lack of time relevant data and resources. This study is limited to the information that was available from the bank and other sources. - Annual reports of NABIL - Annual reports of NRB - Articles in Newspapers, journals, booklets, issues published by financial institution.
Methodology Of Research
Research Design
The research methodology is the process of arriving to the solution of the problems through planned and systematic dealing with the collection, analysis and interpretation of facts and figures. As the research entirely considers about the about “Deposit Analysis of NABIL Bank” The been used which proves helpful to deposit analysis. For the purpose of achieving the objective, the following methodology is used. The data has been collected by acquiring various kinds or reposts, bulletins and journals from the organization. Similarly data has been acquired from NRB also. The study report is based mostly on secondary information of NABIL. In addition to this reference has been made in library consult, class lectures, books related to banking, financial management and accounting during the preparation of this study.
Sources of Data
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.
Primary Data Source:
Primary source of data is questionnaires, observation, interviewing personally in the site. The data regarding the organization, its feature and structures were received primary through the officer of NABIL. Secondary Data Source:
In this study the main source of data is secondary which are collected from pre publisher data sources. The secondary data sources used in this stud are: Internal source Annual reports of NABIL Interim performance report External source Book publications Journals Articles from newspapers Annual reports of NRB
Data Processing Techniques
The data collected from the above stated sources has been classified tabulated and interpreted for easier study. Classification and Tabulation of Data
The data collected are classified tabulated and arranged in manner to make it easily understandable with the use of tables in chronological order. After classification the data is tabulated. Diagrammatic Representation of Data
Various diagrams are used to present the data more clearly. The diagrams used are follows: Bar Diagram Pie Chart Line Graph Bar Graph
Tools for Analysis of Data Various Financial. Accounting and statistical tools have been used of analyses the collected data and interpret the result obtained. The various tools used are: Deposit Trend Deposit Landing Ratio Deposit Mix Ratio of Interest Bearing Deposit to Total Deposit Deposit Categorization Ration of Non interest Bearing Deposit to Total Deposit Interest Expenses Ration of Fixed Deposit to Total Deposit Cost of Deposit Ratio of Current Deposit to Total Deposit Correlation Coefficient Ration Saving Deposit to Total Deposit Trend Analysis
SWOT Analysis
None of the organizations is perfect in each and every way. I here are some weaknesses and threats, which affect the organization’s performance. It may have lots of strength to be proud of but besides with some weakness and threats as well. And the organization does not remain same forever there will be lots of opportunities in order to expand the transactions. So NABIL has also its strength to be proud, some weakness to be recovered and threats to be faced patiently. Strength
a. NABIL has 250 correspondent relationships besides numerous drawing arrangements with 75 banks in 40 countries of the world. Nabil has also drawing arrangement with the exchange companies and bank besides many others lie Habib Qatar International Exchange Limited, Doha, Qatar.
b. To add its strength. NABIL has vast network system in the nation thus helping customer to transact through bank from place to place. It has 17 branches nationwide which is the highest number of any joint venture bank in Nepal. It is the only bank to operate inside international airport of arrival and departure lounges. c. Nabil is well known for providing highly personalized services to its customers. It provides different services like ATM, credit cards, Tele banking service, safe deposit locker etc. It has also introduced a number of attractive deposit skills. d. Human resources in NABIL are well trained and they are dedicated to the bank too. NABIL is providing high remuneration and other benefits as well to its staff. e. NABIL is well supplied with latest technology. Computer does most of banking services. Thus the services of the bank are prompt and accurate. The bank is capable to maintain the standard.
Weakness:
a. The Increase in the number of branches increases the cost operation. Administration expenses for personnel etc. are increased. b. The political instability in the country can he considered another weakness of the bank. c. Too much dependency in computers is not considered to be reliable. d. NABIL pays high interest rates on deposits. For this reason the bank also charges high interest rates on credit, which has bad impact in investment situation in nation. e. Staff is unwilling to give even required information. It seems that they don’t want to cooperate with once who are not really its customers. Opportunities
a.
b.
c. d. e.
A lot of people deposit their fund in this bank due to its skill in attracting people by adopting attractive policies like high interest rate, prompt services, credit card service, ATM etc. Staff can perform their work more efficiently with the help of computers. The environment of the bank is sound which helps to enhance its stall bar its better profitability. People in various sectors get employed through this bank, which has highest number of branches among joint venture banks in the nation. Citizens of underdeveloped country like Nepal get the favorable chance to show their inner skills and talent. The policies of the HMG and NRB rules and regulation always give confidence to the banking sector to uplift the economy of the nation.
Threats
a. Banks must land and invest its fund to parties having good reputation. Otherwise the bank will have to regret later on.
b. Excess government pressure may create irregular banking transaction, which leads to bad reputation of the bank. c. The economic condition of country is deteriorating. d. There is increasing number of competitions. Now there are 13 commercial banks, which include 9 joint venture and 45 finance companies. e. The bank should be discouraged to open account for the individuals or firms having bad reputation. It May be a threat, which can ruin the bank.
Summary, Conclusion And Recommendation
Summary
A bank is an institution which deals in money. A bank is like a reservoir. It draws surplus money from the people who save and lend them to the people who want to use it for productive purpose. In this process the bank earns commission. The rate of interest paid to the depositors is generally lower than the rate charged to the borrowers. The difference between these two rates of interest is the profit of the bank. Deposit collection is the main function of commercial bank. The present study has been undertaken to examine and evaluate the financial performance of NABIL. The financial statements of five years that is from 2000/01 to 2004/05 have been examined for the purpose the study. The study has resorted mainly to secondary data that has been first processed and analyzed comparatively. Individual interview with the management personnel has been taken whenever necessary. This study is exploratory as well as analytical sometimes. NABIL was established in 12th July 1984, which was the first joint venture bank in Nepal. Among many joint venture banks, it is a leading one, which is always running in profit due to its proper management and good policies. Data that I have presented is all from the secondary sources, which are in the annual reports or other printed matters. A customer can be account holder when he opens account. There are the numbers of rules and procedures regarding opening different types of accounts. The interest rates on different accounts are different.
Conclusion
i.
ii.
iii.
The deposit of NABIL is in increasing trend. The share of fixed deposit is more than that of savings, current, margin and other deposits in the deposit mix of NABIL. The trend of interest bearing deposit has been gradually increasing but there has been more fluctuation in non-interest bearing deposits, similarly, there is also more fluctuation in interest expenses on total deposits. The trend analysis shows that the deposit of NABIL is in increasing trend. In addition to this, the bank is being able to satisfy its customers and in providing higher quality and newer services to them.
iv.
v.
vi. vii.
Interest expenses on deposit of NABIL during the year 2000 are also quite high but there has been a decreasing trend of interest expenses till the year 2005. Similarly, the cost of deposit during the year 2000 is also quite high but there has been decreasing trend in the later year. So, it helps to increase the efficiency to bank. By the analysis of deposit landing we can conclude that the bank is able to utilize its deposits a greater extent. Thus, the bank’s performance is effective in profitability and towards the customizing,. era and may attract more customers.
Recommendations
i.
ii. iii. iv.
v. vi.
Although NABIL has a strong financial base and capital structure as well as good market status and reputation in order to attract new customers and increase deposit collection NABIL should introduce new schemes. Customer services should be diversified and should further be accommodated. Interest rate on deposit should be competitive with other commercial banks. The bank should aim towards increasing its customers but it must also provide the quality services to the present customers. For this the bank must make plans and policies keeping customers in mind. Bank should also pay attention towards the priority sector and industrial sector for lending loans to develop the economic condition of the country. Bank should provide more facilities to the staff, it has to provide job satisfaction, training and should encourage its staff.
BIBLIOGRAPHY
•
Agrawal. G.R, “Project Management in Nepal”, M.K Publishors an Distributors, Kathmandu.
•
Banking Information and Data, Annual Report of Nabil Bank Ltd.
•
Brigham, Eugene F., “Fundamental of Financial Management”, Holt
Rincht and Winston: The Dryden Press, 1998. •
Khan, M. Y. and P.K., “Financial Management Policy”: New Delhi:
McGraw Hill Publishing Co. Ltd., 1978. •
Poudel, Rajan B, Keshar j. Baral, Rishi R. Gautam, Gyan B. Dahal “Fundamentals of
Financial Management” : Kathmandu Asmita Publication, 2065 •
Van Horn James C.,”Financial Management and Policy”: New Delhi
Prentice Hall of India Pvt. Ltd., 1986. •
Van Horn James C.,”Fundamental of Financial Management”: U.S.A.
Prentice Hall Inc. Engle Wood Cliff, 1983. •
URL: www.nabilbank.com
•
URL: www.nrb.org.np
