A STUDY ON

DEPOSIT COLLECTION AND MOBILIZATION ANALYSIS

OF KUMARI BANK LTD

A Project Work Proposal

Submitted By:
Yogesh Katwal
Class Roll no: 178/070
T.U. Regd no.: 7-2-0025-1217-2013

Submitted To
Research Department
Nepal Commerce Campus

In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Kathmandu, Nepal
February, 2017
Table of contents

1.1 Introduction
1
1.2 Objectives of
Study2
1.3 Statement of the
Problem...2
1.4 Research
Methodology.......................3
1.5 Limitation of
Study3
 Chapter I
INTRODUCTION

1.1 Background of the Study

Bank is a financial institution, which is engaged in monitory transaction. Bank has
always been the most importance and largest financial intermediates. In Nepal, one of the
fast developing sectors is the banking sector. It has played crucial role in economic
development of Nepal. The modern banking practices are of recent origin, however
historical evidence shows the presence of crude banking practices from earlier period.
The goldsmiths and landlords were ancient bankers of Nepal as similar to other countries.
They lent money against gold ornaments, livestock or land etc. The modern banking
history starts from the establishment of Nepal Bank Limited in 1937 A.D. which is
regarded as a milestone in modern banking history. Nepal Bank Limited was established
as a joint venture between Nepal government and Private sector. Nepal Bank Limited was
established as a result of need call from the governmental side. In lack of proper financial
institution, development and economic progress of the country was being affected. It
played the role of central bank. Nepal Rastra Bank established as central bank in 1957
A.D. Another bank fully owned by government Rastriya Banijya Bankwas
established1965 A.D.as the second commercial bank of Nepal.
The general meaning of bank refers to the commercial banks. 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. Specially, with the reinstitution
of democracy in 2047 B.S. the new flow started in Nepalese commercial periphery and
wide range of commercial banks was established.

Kumari Bank Limited, came into existence as the fifteenth commercial bank of Nepal
by starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an
objective of providing competitive and modern banking services in the Nepalese financial
market. The bank has paid up capital of Rs. 2,699,166,532 of which 51% is contributed
from promoters and remaining from public.Kumari Bank Limited has been providing
wide - range of modern banking services through 38 points of representations located in
various urban and semi urban part of the country, 36 branches outside and inside the
valley; and 2 extension counters. The bank is pioneer in providing some of the latest /
lucrative banking services like E-Banking and SMS Banking services in Nepal.
1.2 Focus of the Study
This field study is basically focused on the performance of deposit collection
andmobilization of Kumari Bank Limited,

1.2Objectives of Study
The project report has been prepared with the extensive research and study
based on following objectives:
To analyze the structure of deposits collection and mobilization.
To find out the trend of its deposits collection and its effectiveness in
utilization.
To present the interest income in consonance to interest expenses and
find out profitability trend.
To figure out comparative advantages and special products and
services of kumara bank.
To determine trend of loans provided based on characterization and
classification.

1.3Statement of the Problem

The banking sector in Nepal plays important role for its

economic prosperity, but it is facing many problems and challenges. The
increasing numbers of bank, finance and insurance companies are
creating competition in the field of banking sectors. The major problem
can be viewed from an insignificant or negative growth rate in net profit
of these banks in recent fiscal years. There is unhealthy competition
among the financial institutions, which is creating threat to these banks.
Similarly, the rapid growth of saving credit cooperatives and private
finance companies without proper control and supervision of Nepal
Rastra Bank is also a major threat to the commercial banks in Nepal.
Banking sector has not been responsive enough to meet
the growing need of resources to the economy as expected Why is so
and what are the problem? is very important question. In the process of
seeking the answer to this question, the researcher of this study has
 analyzed the present Deposit Collection And Mobilization of Kumari
Bank.
Financial analysis helps in identifying strengths and
weakness of organization. In the present time there are social as well as
political instabilities in the country, which is directly affecting banking
sector. In this way Kumari Bank is facing many problems. Such
problems in turn affect the overall performance of the bank. So the
researcher in this study will try to answer the following questions:
What amount of deposits is collected based on various
classifications?
How sound is the operational results in relation to their
profitability?
How far have Kumari Bank Limited been able to Collect Deposit
and utilize Deposit so Collected?
What is the trend of gross income collected after deducting
interest expenses?

1.4Research Methodology
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.
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 Kumari Bank.
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.
1.5Limitation of Study
Though the report has been conducted on the basis of data and figures
availed from authentic sources and it is dedicated towards presenting actual
position, the report might be affected by various limitations. Followings are
some of the limitations faced during preparation and presentations of report:
The study has Time, Cost and Effort limit.
Judgment and analysis made on data and figures may not be exact.
The data is gathered from published sources only, thus it cannot cover
all the aspects.
Since, data is taken for limited period it may not portray actual overall
situation.
The data are solely from Kumari Bank alone, thus it doesnt facilitate
inter-bank comparison for better results.