PART 1INTRODUCTION1 .

1 I N T R O D U C T I O N T O B A N K I N G
It has been seen that the origin of banking was from the ancient
t i m e . A l t h o u g h a t t h a t t i m e t h e b a n k i n g a c t i v i t i e s w e r e n o t i n s ys t e m a t i c
w a y b u t banking activities used to hold from that time. It has been said that the
lendingand borrowing are as old as money itself. The word bank has been derived from
the Italian word "banco". The wordbanco means bench. As the different monetary
transaction used to be held bysitting-up in the bench, it has been named as banco.
Macleod has defined theword banco as the accumulation of money or stock. Bank in
an organized formwas first introduced in Italy in 1157 A.D. The Bank of Barcelona,
Spain was thebank established in 1401 A.D. The first central bank was established in
England,in 1844 A.D. But at present stage the bank has passed through different stage. Ithas been
developing and modernizing its activities.B a n k c a n b e b r i e f l y d e f i n e d a s t h e
f i n a n c i a l i n t e r m e d i a r y b e t w e e n t h e depositor and credit seeker. The transaction
can happen between the bank anddepositor only when the depositors deposit certain
amount in the bank and thebank has good relation with its customer. The Bank can make
good relation withits customer only when it will be able to payback the amount
deposited by thedepositor at time. The intermediation takes place when bank accept deposit
fromg e n e r a l p u b l i c , c o r p o r a t e b o d i e s a n d p r i v a t e o r g a n i z a t i o n a n d i n v e s t t h
osed e p o s i t f o r p r o f i t a b l e p u r p o s e i n f o r m o f l o a n a n d a d v a n c e s . T h
e b a n k h a s started providing much more facility to its customer such as re
m i t t a n c e o f money, letter of credit, Bank guarantee, issue of money and many
more.According to
Kinley
, "Bank is an establishment which makes to individuals u c h a d v a n c e s o f m o n e y o r o t h e r
m e a n s o f p a y m e n t a s m a y b e r e q u i r e d & safety made and to which individual
entrust money or means of payment when not required by them for use."
1

According to Cambridge International Dictionary of English

"Anorganization where people and business can invest or borrower money changesit
to foreign money etc. or a building where these services are offered." Thus, bank can be
described as the custodian of savings of general
peoplea n d e s t a b l i s h e d a s w e l l . I t c o u l d h a v e b e e n q u i t e i
m p o s s i b l e f o r t h e entrepreneurs to acquire the saving of general public for
investment without thee s t a b l i s h m e n t o f t h e b a n k . S o , b a n k c a n
b e b e s t d e s c r i b e d a s t h e f i n a n c i a l institution that accept deposit and provide the certain
rate of interest and loan itto the needy person, charging certain rate of interest and earn some
profit in theprocess of intermediation.
1.2ORIGIN AND GROWTH OF BANK IN NEPAL
The lending or borrowing process of money
u s e d t o b e h e l d e v e n a t ancient time. The historical evidence shows the presence of
some crude bankingp r a c t i c e i n t h e e a r l i e r p e r i o d o f t i m e . B u t i n c a s e o f N e p a l
i t h a s a v e r y s h o r t history. The development of bank in Nepal can be divided into two
parts:a ) T r a d i t i o n a l B a n k i n g b ) M o d e r n B a n k i n g
a ) T r a d i t i o n a l B a n k i n g
 Traditional Banking is related with the
p r o c e s s o f t a k i n g m o n e y w i t h private money lender and not with a registered institution.
Previously the peopleused to take money from the private money lender. Generally,
people used tot a k e s u c h l o a n f o r m e e t i n g d a i l y e x p e n s e s . T h e l e n d e r
u s e d t o c h a r g e h i g h interest rate. In remote area till now there are different money lenders.
There arethe sayings that in 780 B.S. King Guna kam Dev took loan from the money lenderand
in B.S. 937 Shankadhar paid out the loan and started Nepal Sambat. In 14
th
century King Jaysthity Malla divided the people in 64 different ca
s t s . A n d Tankdhari was also one of them. The main occupation of such cast people was
tod e a l w i t h m o n e t a r y t r a n s i t i o n . Af t e r t h i s t h e Tej r a t h Ad d a w a s
e s t a b l i s h e d i n government sector. They provide its services only to the civil
servant to lowerrate of
interest.P r i v a t e m o n e y l e n d e r f o l l o w i n g c e r t a i n m a l p r a c t i c e u s e d t o c
h a r g e unreasonable rate of interest that caused inconvenience and difficulty to
thepeople of country. The great need of a commercial bank was felt to eliminat

prevailing hindrances caused by private money lender to the general public. As aresult, the
"Tejarath Adda" was replaced by modern commercial bank.
b ) M o d e r n B a n k i n g
As the banking transaction started to be in broad condition there felt theneed of
modern banking system. So in 30
th
Kartik 1994 B.S

the Nepal Bank Ltd.was established which was the first commercial bank in Nepal.
Since then, thebanking operation began to foster. After the establishment of NBL Ltd.,
RastriyaB a n i j y a B a n k w a s e s t a b l i s h e d i n 2 0 1 3 B . S . D i f f e r e n t j o i n t v e n t u r e
banks
alsos t a r t e d i t s o p e r a t i o n i n y e a r 2 0 4 1 B . S . N e p a l I n d o s u e z B a n k L t
d . & N e p a l Grindlays Bank Ltd. was established in 2042 B.S. and 2043
B . S . r e s p e c t i v e l y. Himalayan Bank Ltd. was established with the joint venture
with Habib Bank of Pakistan. Nepal SBI bank followed Himalayan Bank in 2051
B.S. The three newbanks were opened in 2051 B.S., Nepal Bangladesh Bank Ltd., Everest
Bank Ltd.,and Bank of Kathmandu Ltd. Meanwhile there are 16 commercial banks in Nepal.
1.3MEANING OF NEPAL BANK LTD
Nepal Bank Ltd. was the first commercial bank. The banking history
i n Nepal began from 30
th
Kartik 1994 B.S. with the established of Nepal Bank Ltd.Under the privilege
support from His Majesty King Tribhuvan. NBL commenced its operation of modern
banking system by accepting and monitoring the savingof people and granting appropriate loan
and monitoring the saving of people andgranting appropriate credit facilities to people, hence
removing the hindrance inthe economic development of the people of the country. NBL
was establishedwith the establishment with 51% of share of government of Nepal
and 49% wasissued to general public. The authorized capital of this bank was
10 million.
Theb a n k i n i t i a l l y s t a r t e d i t s b a n k i n g o p e r a t i o n w i t h p a i d u p c a p i t a l
o f R s 8 4 2 thousand of the issued price of Rs 2.5 million. NBL Ltd. has authorized capital
of Rs. 1000 million, issued capital of 500 million and paid up capital of 38.04 crore. The
present share percentage of Nepal Bank Ltd. is 40.49% of government and59.51% of
the general public.
1 . 4 E X P A N S I O N O F N B L
3

As the main objective of commercial bank is to earn profit thus at

t h e beginning NBL was centralized in those areas where their business affairs
tookplace. NBL has opened its main branch in Kathmandu.As different financial activities were
held at this place, the first importancewas given to Kathmandu. NBL has its head office at New
Road. Previously, as
them a i n e x p o r t & i m p o r t a c t i v i t i e s u s e d t o b e h e l d f r o m B i r j u n g i t
w a s q u i t e important to open branch office at Birjung so the first branch office was
openedthere at B.S. 1998. And as different business activities of eastern side was usedto be
done from Nepalgunj the most priority was given to it and at same
yeara n o t h e r b r a n c h o f f i c e o f N B L
w a s o p e n e d i n B h a d r a p u r , J a n a k p u r, G a u r a n d B i r a t n a g a r. F r o m t h e d a t e o f
e s t a b l i s h m e n t o f N B L w i t h i n 5 y e a r s , 8 b r a n c h offices were opened and had started
its services. In fiscal year 1999 to 2011 them o r e e m p h a s i s w a s g i v e n t o t h e
d e v e l o p m e n t o f t h o s e b a n k s . Ti l l f i s c a l y e a r 2046 the bank has got 234 branches at
67 district and the number of bank
staff r e a c h e d t o 8 7 2 1 . L a t e r o n a s t u d y r e p o r t o f
CBPASS (Commercial Bank Problem Analysis and Strategy Study)
suggested that the non-performingbranches as well as excess staff should be
removed. As a result NBL acceptedresignation of 800 staff and 15 branches were set
collaborated. As a result NBLhas 212 branch office having 5500 staff employed. At present
NBL has 7 branchoffices with fully computerized system and NBL is planning expand this
number.NBL is further planning to expand its sector and its services in
differentsectors.
1 . 5 F U N C T I O N S O F N B L NBL
is a commercial bank with an objective of earning maximum profit.But it has also
given priority to the economic development of the country.
NBL
supply the financial need of the business by various means. Although the
mainfunction of the bank is to earn maximum profit by providing different facilities ton e e d y
p e o p l e o r o r g a n i z a t i o n t o o b t a i n t h e p r o c e d u r e b e n e f i t h e r e a r e s o m e other
main functions of NBL:a ) T o d e p o s i t m o n e y i n s a v i n g , c u r r e n t a n d
fixed deposit.b)To provide loan w ith or without considering legal
procedure.c ) To i n v e s t m o n e y i n e d u c a t i o n , b u s i n e s s , a n d
a g r i c u l t u r e s e c t o r f o r the economic development of country as it has certain
responsibilitytowards them.
4
d)To invest in government bonds
and securities.e ) T o a c t a s a n a g e n t . f ) T o a c t a
s b a n k o f g o v e r n m e n t . g)To provide safe
custody of valuable goods.h)To issue letter of credit &
credit
instrument.i ) T o f i n a n c e i n f o r e i g n t r a d e . j ) T o
d e a l w i t h f o r e i g n c u r r e n c y . k)To act as a referee and
p r o v i d e a c c u r a t e i n f o r m a t i o n t o t h e p e o p l e . Apart from the banking
function, the act empowers
NBL
to do insuranceand transport business. Further the main function of NBL that differ
from otherc o m m e r c i a l b a n k s i s t h a t i t i s e s p e c i a l l y e m p o w e r e d b y a c t t o
g r a n t l o a n t o companies undertaking profitable business associated with
agriculture, mining,road, railways, ropeway and so on.
1.6OBJECTIVES OF STUDY
The main objective of the study is to get entire knowledge of fixed depositand its chief feature in
regards of NBL. The objective can be specified as follow: -1 . To a n a l y z e t h e s h a r e
of fixed deposit out of total deposit of NBL.2 . To a n a l y z e t h e t r e n d o f
f i x e d d e p o s i t i n N B L . 3 . To e v a l u a t e i m p o r t a n c e & u t i l i z a t i o n o f
fixed deposit account.4 . To k n o w o p e n i n g & c l o s i n g p r o c e d u r e o f
f i x e d d e p o s i t . 5. To draw out different problems in fixed deposit management.
1.7LIMITATIONS OF STUDY
The study is made in certain limitation they are as follows: -a ) T h i s s t u d y c o n c e r n o n l y
period of 6 years.b ) T h e r e a r e n u m b e r o f f a c t o r s t h a t a f f e c t t h e
b a n k i n g p o l i c y o f N B L . However only those factor, which are related
w i t h f i x e d d e p o s i t , i s considered in
study.c) Main focus is give only in the trend of fixed deposit of NB

6
PART 2MEANING OF FIXED DEPOSIT2 . 1 M E A N I N G
Fixed deposit constitutes a very important role for the bank. The amountdeposited
for the fixed period of time is fixed deposit. It is generally opened bysuch person
who doesn't need money frequently. And as the money is kept in b a n k f o r c e r t a i n
p e r i o d o f t i m e i t i s a l s o c a l l e d t i m e d e p o s i t . As t h e m o n e y
iswithdrawn by the customers only after
the maturity of date, pass book andcheque book are not given by the bank.
S i n c e b a n k c a n b e c e r t a i n a b o u t t h e withdrawl period of deposit, the bank gets
the opportunity to utilize that moneyi n p r o d u c t i v e s e c t o r s o h i s a m o u n t o f
i n t e r e s t i s p r o v i d e d . I n N e p a l t h e f i x e d deposit can be opened for 15 days, 1
month, 3 month, 6 months & 1 year andabove. The bank provides interest from
4.00% to 9.5%. After the maturity
timet h e c u s t o m e r c a n r e n e w o r w i t h d r a w t h e m o n e y . B u t b e f o r e o p e
n i n g f i x e d deposit it is necessary to have saving or current deposit.
2.2PROCEDURE OF OPENING FIXED ACCOUNT
For opening fixed deposit account it is not necessary to have the identityof the
person opening it. The person should only have to specify the amount to the deposited.
The maturity date and other important documents as enquired bythe bank must be provided.
Here are some procedures of opening fixed deposit they are: -a) The applicant have
to fill up the application form in which an applicantshould mention his name,
address, the amount to be deposited and the time of maturity and the citizenship should
be clearly
mentioned.b ) T h e a p p l i c a n t s i g n a t u r e i s v e r y i m p o r t a n t f o r t h e b
a n k . S o , t h e signature should also be done
clearly.c ) A f t e r f i l l i n g u p t h e f o r m t h e d e p o s i t o r h a v e t o d e p o s i t t h e
d e s i r e d money in the counter enough the voucher prepared by the banks employee
forthe fixed deposit account.d) After completion of all the process, the fixed deposit section
open fixeddeposit account in the name of applicant the bank provide receipt which is
calledf i x e d d e p o s i t r e c e i p t . T h e f i x e d d e p o s i t r e c e i p t i s n o t n e g o t i a b l e , s o
o n l y t h e person whose name is in receipt can take money after maturity.
7

e ) To o p e n t h e a c c o u n t i n m i n o r ' s n a m e , t h e g u a r d i a n n a m e , c a s t
a n d account number along with his/her own signature should be mentioned in
theform.
2.3PROCEDURE OF CLOSING FIXED DEPOSIT ACCOUNT
The depositor may close the fixed deposit account after the maturity date.Because of different
reasons the depositor may also close the account before itsexpiry date. So, for closing the fixed
deposit earlier it is necessary for the bank togive pre-information. Thus the contract will be
rescinded as well as the relationship between b a n k a n d c u s t o m e r w i l l c o m e t o
a n d w i t h c o m p l e t i o n o f d u e d a t e . Af t e r t h e maturity date, the depositor may
also renew his account if he doesn't want to take the money. For this he has to fill up the
application form and submit to thebank.
2 . 4 . C H A R A C T E R I S T I C S O F F I X E D D E P O S I T AC C O U N T
 The fixed deposit has its certain characteristics, which are mentioned
asfollow:1. Fixed deposit account is opened for the fixed period of time. Theduration
of the deposit period may be 7 days, 15 days, 1 month, 6 months, 9 months, 1 to 5
years or above.2. Interest rate is provided according to the deposit period. Though thefixed
deposit can be opened for more than 5 years, the maximum interest rate remains the
same as that of 1
year.3. The interest is awarded every 3 months.4. The Fixed Deposit Account holder could
not withdraw his depositwithout completing the deposit period. However, the Fixed
DepositReceipt can be pledged for loan from the
bank.5. The Fixed Deposit Account can be renewed after expiry of the fixedtim

PART 3PRESENTATION AND ANALYSIS OF DATA

The most valuable and crucial tool to evaluate the true and actual
positiono f a n y o r g a n i z a t i o n i s i t s p a s t d a t a . T h e s t r e n g t h a n d w
e a k n e s s o f t h e organization can be appraised from the proper analysis of data. The part of
the report focuses on presentation and analysis of data relatedto the current deposit of NBL to
obtain the objective of study.
3 . 1 T O T A L D E P O S I T
The deposit are said to be "
life blood of the bank
". The first and utmostimportant thing to know is the total deposit trend in
NBL
. Total deposit refers tothe total deposit of the general public in various accounts during
certain periodof time. The following table shows the status of deposit of NBL during the
financialyear from 2055-056 to 2059-060.
Table No. 1Total Deposit of Nepal Bank Limited
(Rs. in million)
F i s c a l Y e a r T o t a l D e p o s i t C h a n g
e i n T o t a l D e p o s i t A m o u n t P e
r c e n t a g e
2 0 5 5 -
0 5 6 3 3 0
9 2 . 6 - -
2 0 5 6 -
0 5 7 3 5 5 7 8 . 7
2 4 8 6 . 1 7 . 5 1
% 2 0 5 7 -
0 5 8 3 5 5 2 8 . 5 (
5 0 . 2 )
( 0 . 1 4 ) % 2 0 5 8
-
0 5 9 3 4 0 6 0 . 1 ( 1
4 6 8 . 4 )
( 4 . 1 3 ) % 2 0 5 9
-
0 6 0 3 4 7 3 7 .
4 6 7 7 . 3 1 . 9
9 % 2 0 6 0 -
0 6 1 3 6 5 1 9 . 7
1 7 8 2 . 3 5 . 1 3
% 2 0 6 1 -
0 6 2 3 5 9 3 4 . 2 (
5 8 5 . 5 )
( 1 . 6 0 ) % Source: NBL Head Office.From
the above table we can say that the increasing trend of total depositof NBL has been
fluctuating in every fiscal year. In the fiscal year 2056-057 the trend of total deposits
increased by Rs. 2486.1. Likewise in 2057-58 the changei n t o t a l d e p o s i t i s R s . ( 5 0 . 2 ) .
Same as in 2058-059 the change in deposit is
9

(1468.4). And in 2059-060 the change in deposit is increase as 677.3.Likewise in2 0 6 0 - 0 6 1

c h a n g e s i n d e p o s i t i n c r e a s e b y 1 7 8 2 . 3 , b u t i n 2 0 6 1 - 0 6 2 d e p o s i t i s decreased
by 585.50. So the data above shows both the increasing as well
asd e c r e a s i n g r a t e . T h e v a r i a t i o n i n t h e t o t a l d e p o s i t m a y b e b e c a u s
e o f t h e inflation caused by the increased of money supply in the country, which result inthe
decrease in the value of the money. T h e g r a p h i c p r e s e n t a t i o n o f t o t a l d e p o r t o f
N B L i s s h o w n i n t h e f i g u r e below:
Figure No.1Total Deposit Trend
31000320003300034000350003600037000
2055-056 2056-057 2057-058 2058-059 2059-060 2060-061 2061-062
FiscalYear
R s i n M i l l i o
TotalDeposit
3.2 TREND OF FIXED DEPOSIT OF NBL:
Fixed deposit is the major source of working capital of any
commercialbank. Thus NBL has been able to collect adequate fixed
d e p o s i t b y p r o v i d i n g competitive rate of interest for investing alternatively in loans and
advances andinvestment. The following table shows the trend of Fixed Deposit in
NBL duringfiscal 2055-56 to 2059-60.
Table No. 2Fixed deposit Trend of NBL
(Rs. in Million)
F i s c a l y e a r F i x e d d e p o
s i t A m o u n t P e r c e n t a g e
2 0 5 5 -
0 5 6 1 4 1
5 4 . 7 - -
2 0 5 6 -
0 5 7 1 2 2 7 5 . 8 ( 1
8 7 8 . 9 ) -
1 3 . 2 7 % 2 0 5 7 -
0 5 8 9 9 2 1 . 7 ( 2 3
5 4 . 1 ) -
1 9 . 1 8 % 2 0 5 8 -
0 5 9 9 7 3 1 . 8 ( 1
8 9 . 9 ) -
1 . 9 1 % 2 0 5 9 -
0 6 0 8 3 9 6 . 9 ( 1 3
3 1 . 9 ) -
1 3 . 6 8 % 2 0 6 0 -
0 6 1 7 4 8 0 . 9 ( 9
1 6 . 0 ) -
1 2 . 2 4 % 2 0 6 1 -
0 6 2 7 2 1 6 . 9 ( 2
6 4 . 0 ) - 3 . 5 3 %
10
Fixed deposit are considered to be the major source of capital and
NBLh a s b e e n a b l e t o c o l l e c t t h e f i x e d d e p o s i t b y p r o v i d i n g c o m p e t i
tive rate of interest to the account holder in order to fulfill the de
m a n d o f c a p i t a l f o r investing alternatively in Loans and advances
and Investment. The followingtable shows the before and current rate of interest on Fixed
deposit:
Table No. 4Interest rate of
Fixed DepositP e r i o d o f T i m e B e f o
r e R a t e C u r r e n t R a t e
7 d a
y s 2 .
0 0 % -
1 4 d a
y s 2 . 5
0 % - 1
m o n t h 3 .
5 0 % 2 . 5 0
% 2 m o
n t h -
2 . 7 5
% 3 m o n
t h 4 . 0 0 %
3 . 0 0 % 6
m o n t h 5 .
0 0 % 3 . 5 0
% 1 y e a
r 6 . 7 5 %
4 . 0 0 % 2
y e a r s & a b
o v e 7 . 0 0 % 4 .
0 0 % Source: NBL Head Office
3 . 5 C O M PAR I S I O N O F I N T E R E S T R ATE O F F I X E D
D E P O S I T O F N B L W I T H OTHER BANKSTable No. 5Comparison of interest rate of
fixed deposit of NBL with other banks
Nameof bank 7days14days1month2months3months6months1 y r 2 y r s
& above
N B L 2 . 0 0 -
3 . 2 5 3 . 5 0 3 .
7 5 4 . 2 5 5 . 7 56.00H
B L 2 . 3 0 3 .
3 0 -
3 . 7 5 4 . 0 0
5 . 2 55.75E B L 3 .
0 0 3 . 5 0 -
4 . 0 0 5 . 0 0
5 . 5 06.00N S B I 2
. 5 0 3 . 0 0 -
4 . 0 0 5 . 0 0 6
. 0 06.25K B L 3 . 0
0 3 . 5 0 -
4 . 0 0 4 . 2 5
5 . 2 55.50-6.00Source: Banking & Financial StatisticsSo for
the above table we can say that the interest rate of NBL and otherbank are quite
similar. The percentage of providing the interest rate has
beeni n c r e a s i n g t i m e t o t i m e . A s t h e p e r c e n t a g e o f t h e
deposit is also constantly
13
increasing it is quite important to make the changes in the percent
a g e o f providing the interest.
Table No. 63 . 6 C O M P A R I S I O N O F F I X E D D E P O S I T O F N B L W I T H
OTHER BANKS
(Rs. in Million)
N a m e o f B a n k
2 0 0 0 2 0 0 1 2 0 0 2
2 0 0 3
N e p a l B a n k L t d . 1
2 2 7 5 . 8 9 9 2 1 . 8 9 7 3 1
. 8 8 3 9 6 . 0 H i m a l a y a n
B a n k L t d . 5 1 0 9 . 4 5 6 6
8 . 1 6 0 4 4 . 9 5 8 8 0 . 7 N e p
a l S B I B a n k 2 4 2
0 . 3 2 9 2 9 . 4 3 1 3 2 .
7 3 3 3 7 . 6 Source of Banking and Financial StatisticsSo
from the above table it can be noticed that the fixed deposit trend of NBL is more
than that of other banks. For example Himalayan Bank has got the fixed deposit of Rs.
2104.5 thousand in the fiscal year 1996-97 whereas NBL hasgot the deposit of Rs. 7001.0
thousand. In the same way from the above table itc a n a l s o b e n o t i c e d t h a t t h e a m o u n t
o f f i x e d d e p o s i t h a s b e e n i n c r e a s i n g i n every year, which is a quite good sign of the
economic development of country.
3 .7 KAR L PE ARS ON 'S C ORR EL ATIO N CO EF FI CIE NT
K a r l P e a r s o n ' s m e t h o d , p o p u l a r l y k n o w n a s P e a r s o n i a n c o e f f i c i e n t o f corre
lation, is most widely used in practice to determine the relation between two variables.
It is denoted by "r" and defined by:
22
y x xyr
=
Where, r = Karl Pearson's correlation coefficient
yYy,xXx
==
Value of
r
a l w a ys l i e s b e t w e e n + 1 a n d - 1 , r = + 1 d e n o t e d t h e p e r f e c t p o s i t i v e
c o r r e l a t i o n b e t w e e n t h e t w o v a r i a b l e a n d r = - 1 d e n o t e d t h e p e r f e c t negative
correlation between the two variables.
Table No. 7Correlation Between Fixed Deposit with Total Deposit
YearFixedDeposit (X)TotalDeposit (Y)
xX x
=
yY y
=
x
2
Y
2
xy
205614154.733092.64 2 7 2 . 1 ( 1 9 4 3 . 2 ) 1 8 2 5 0 8 3 8 . 413776026.2
4(8301544.72)
14
205712275.835578.72 3 9 3 . 2 5 4 2 . 9 5 7 2 7 4 0 6 .
2 42 9 4 7 4 0 . 4 1 1 2 9 9 2 6 8 . 2 8 20589 9 2 1 . 7 3 5 5 2 8 . 53 9 .
1 4 9 2 . 7 1 5 2 8 . 8 1 2 4 2 7 5 3 .
2 9 1 9 2 6 4 . 5 7 20599 7 3 1 . 8 3 4 0 6 0 . 1( 1 5
0 . 8 )
( 9 7 5 . 7 ) 2 2 7 4 0 . 6 4 9 5 1 9 9 0 . 4 9 1 4 7 1
3 5 . 5 6 20608 3 9 6 . 9 3 4 7 3 7 . 4( 1 4 8 5 . 7 )
( 2 9 8 . 4 ) 2 2 0 7 3 0 4 4 . 98 9 0 4 2 . 5 6 4 4 3 3 3 2 . 8 8 2
0617 4 8 0 . 9 3 6 5 1 9 . 7( 2 4 0 1 . 7 ) 1 4 8 3 . 9 5 7 6 8 1 6
2 . 8 92201959.21(3563882.63)20627 2 1 6 . 9 3 5 9 3 4 . 2( 2 6 6 5 . 7 )
8 9 8 . 4 7 1 0 5 9 5 6 . 4 98 0 7 1 2 2 . 5 6 ( 2 3 9 4 8 6 4 . 8 8 )

X=69178.7

Y=245451.2

x
2
=58949678.38

y
2=
8363634.76

xy=(12351290.94)
55.08363634.7638.58949678412351290.98.3503572.2454516.988277.69178
22
=========
y x xyr N y y N x x
Since Karl Pearson's correlation coefficient (
r)
=
-0.55
t h e t w o variables fixed deposit and total deposit has high degree of negati
v e correlation. That means the increament/decreament in total deposit will not cause
change in fixed deposit.
Estimation of Fixed Deposit of NBL For the year
15
2062By least square methodTime Series
Table 8: Trend line of fixed deposit
Year(X)Fixed
Deposit(y)x = X -
2 0 5 8 x y
x
2
2 0 5 6 1 4 1
5 4 . 7 - 2 -
2 8 3 0 9 . 4
4 2 0 5 7 1 2
2 7 5 . 8 -
1 -
1 2 2 7 5 . 8
1 2 0 5
8 9 9 2
1 . 7 0
0 0 2 0
5 9 9 7 3
1 . 8 1 9 7
3 1 . 8 1 2
0 6 0 8 3 9
6 . 9 2 1 6
7 9 3 . 8 4
2 0 6 1 7 4
8 0 . 9 3 2
2 4 4 2 . 7
9 2 0 6 2 7
2 1 6 . 9 4
2 8 8 6 7 .
6 1 6

y = 69178.7

x=7

xy = 37250.7

x
2
= 35
Let the straight line trend be represented by the equation. Y = a+bx...................................... eq
n
1 The deviation is taken from the year. i.e. year 2058.Since,

x=7
3.1064357.37250 b 6.988277.69178 aSo,
2
======
x xy N y
Substituting the value of a and be in eq
n
1, the required trend line is Y = 9882.6+1064.3x.................equation 2Again Calculation of trend
values for the year 2063X = year -2058, 2062-2058=4When we substitute the value of x
in equation 2, we get Y = 9882.6+1064.3x4 = 14139.8

The fixed deposit of NBL for year 2062 will be 14139.

2062By least square methodTime Series

Table 8: Trend line of fixed deposit
Year(X)Fixed
Deposit(y)x = X -
2 0 5 8 x y
x
2
2 0 5 6 1 4 1
5 4 . 7 - 2 -
2 8 3 0 9 . 4
4 2 0 5 7 1 2
2 7 5 . 8 -
1 -
1 2 2 7 5 . 8
1 2 0 5
8 9 9 2
1 . 7 0
0 0 2 0
5 9 9 7 3
1 . 8 1 9 7
3 1 . 8 1 2
0 6 0 8 3 9
6 . 9 2 1 6
7 9 3 . 8 4
2 0 6 1 7 4
8 0 . 9 3 2
2 4 4 2 . 7
9 2 0 6 2 7
2 1 6 . 9 4
2 8 8 6 7 .
6 1 6

y = 69178.7

x=7

xy = 37250.7

x
2
= 35
Let the straight line trend be represented by the equation. Y = a+bx...................................... eq
n
1 The deviation is taken from the year. i.e. year 2058.Since,

x=7
3.1064357.37250 b 6.988277.69178 aSo,
2
======
x xy N y
Substituting the value of a and be in eq
n
1, the required trend line is Y = 9882.6+1064.3x.................equation 2Again Calculation of trend
values for the year 2063X = year -2058, 2062-2058=4When we substitute the value of x
in equation 2, we get Y = 9882.6+1064.3x4 = 14139.8

The fixed deposit of NBL for year 2062 will be 14139.8

PART 4SUMMARY AND CONCLUSION4 . 1 S U M M A R Y
16
Bank is the most important institution for accelerating economic growth inthe country. It is quite
true that a strong financial institution is of a great need inthe development of the developing
country like Nepal. The Nepal Bank Limited isone of the oldest banks of the country which has
got the history of 66 years. Thisbank is now in its advance stage. As being the first
commercial Bank it has top a s s t h r o u g h t h e d i f f e r e n t u p s a n d d o w n . N B L
h a s b e e n p r o v i d i n g d i f f e r e n t services to its customers. NBL played a vital role in
the over all development of t h e c o u n t r y. T h e b a n k o n l y h a d a u t h o r i z e d c a p i t a l
of Rs 842 thousand at itsstarting stage, which has now increased to 1000
m i l l i o n . N B L p r e v i o u s l y w a s started with the 51% of the government and 49% of
the public but at presenttime the bank has got the 40.49% share of the government
and 59.51% of thegeneral public. So looking at this factor, NBL has developed a lot in this
time. TheBank has high contribution in fulfilling the economic improvement
by collectingthe scattered resources through the network of 127 branches through
out thec o u n t r y. T h e b a n k h a s t h e t h o u g h t o f c o m p u t e r i z i n g t h e v e r y b r a n c h .
N B L a t present has 7 branch offices which are fully computerized. Though commercial
banks are profit oriented and invest these resources in those sectors from where they
could gain maximum profit, NBL is initiated notonly with profit oriented motive. It has always
given preference to the economicand the financial development of the country. It
provides credit facilities to thetrader, agriculturist, industrialist, businessman etc. It
can also be said that
NBLa c t s a s t h e p i l l a r o f t h e e c o n o m i c d e v e l o p m e n t . N B L f a c i l i t a t e s i n t e r n
a t i o n a l banking by being directly connected with major international banks.NBL has different
functions but the main function is to provide the securityto the wealth of the customers.
NBL generally provide three different types of accounts i.e. saving, current and
fixed deposit account. Although the interest is n o t p r o v i d e d i n c u r r e n t a c c o u n t ,
p e o p l e d e p o s i t i n t h i s a c c o u n t f o r i t s s a f e t y. Fixed deposit account is most common
among the people because it has higherinterest rate, can be pledged as collateral for loan and
easier to open. The study provides the entire knowledge of getting Fixed Deposit
Accounto p e n e d , o p e r a t e d a n d c l o s e d . F i x e d D e p o s i t A c c o u n t i s o p e n e d f o r
t h e f i x e d period of time but the account holder cannot operate it during its time
period. T h e r a t e o f i n t e r e s t o n F i x e d D e p o s i t A c c o u n t i s p r o v i d e d a c
cording to the

duration of deposit period. The fixed Deposit Receipt is provided to the depositor,in lieu of
passbook or cheque book. Once the deposit period mature, the
interesta n d p r i n c i p a l o f t h e A c c o u n t i s c r e d i t e d t o t h e d e p o s i t o r s a v i
n g o r c u r r e n t Account and thereafter, Fixed Deposit Account is automatically closed.
4 . 2 . C O N C L U S I O N
So from the study and analysis of the data of the fixed deposit of NBL itcan be said
that the percentage of depositing money in the fixed deposit hasbeen decreasing day
by day. It can be said that the bank has not been able toutilize the collected saving
according to the borrower and nation requirement.Since in these few years economy
is going through recession it has resulted in the drastic decrease in the interest rate
provided by commercial banks includingN B L . I t w i l l b e p r o f i t a b l e f o r N B L i f i t
p r o v i d e s m o r e a m o u n t o f l o n g t e r m a n d medium term loan. Though full effort is given
to make this study meaningful andweighty, some mistakes might have occurred due to time
shortage.
4 . 3 R E C O M M E N D ATI O N
After the study of the different data provided by NBL and the data
collected from different sources about NBL there are some recommendatio
n referred to NBL which may help it in further
development:a) As this is the modern competitive, customers want more improveds e r
v i c e s s o b a n k s h o u l d a t t r a c t m o r e d e p o s i t o r s b y p r o v i d i n g improved
and new services and
facilities.b) The banks should use modern instrument to perform the bankingactivities.c
) The bank must employ only required number of
e m p l o y e e s otherwise it may create a big problem in
bank.d) The Bank should also provide more attention towards the prioritysectors and
also provide the industrial scheme for the developmentof the economic condition of the
country.e) The bank must not invest only in one sector; different sector shouldbe selected of
the investment.g) Since it has certain responsibility towards the country, it must workfor the
economic development of the country.
18

duration of deposit period. The fixed Deposit Receipt is provided to the depositor,in lieu of
passbook or cheque book. Once the deposit period mature, the
interesta n d p r i n c i p a l o f t h e A c c o u n t i s c r e d i t e d t o t h e d e p o s i t o r s a v i
n g o r c u r r e n t Account and thereafter, Fixed Deposit Account is automatically closed.
4 . 2 . C O N C L U S I O N
So from the study and analysis of the data of the fixed deposit of NBL itcan be said
that the percentage of depositing money in the fixed deposit hasbeen decreasing day
by day. It can be said that the bank has not been able toutilize the collected saving
according to the borrower and nation requirement.Since in these few years economy
is going through recession it has resulted in the drastic decrease in the interest rate
provided by commercial banks includingN B L . I t w i l l b e p r o f i t a b l e f o r N B L i f i t
p r o v i d e s m o r e a m o u n t o f l o n g t e r m a n d medium term loan. Though full effort is given
to make this study meaningful andweighty, some mistakes might have occurred due to time
shortage.
4 . 3 R E C O M M E N D ATI O N
After the study of the different data provided by NBL and the data
collected from different sources about NBL there are some recommendatio
n referred to NBL which may help it in further
development:a) As this is the modern competitive, customers want more improveds e r
v i c e s s o b a n k s h o u l d a t t r a c t m o r e d e p o s i t o r s b y p r o v i d i n g improved
and new services and
facilities.b) The banks should use modern instrument to perform the bankingactivities.c
) The bank must employ only required number of
e m p l o y e e s otherwise it may create a big problem in
bank.d) The Bank should also provide more attention towards the prioritysectors and
also provide the industrial scheme for the developmentof the economic condition of the
country.e) The bank must not invest only in one sector; different sector shouldbe selected of
the investment.g) Since it has certain responsibility towards the country, it must workfor the
economic development of the country.
18

BIBLIOGRAPHY
1 . Vai d y a S h a k e s p e a r e : - M o n e y & B a n k i n g ( P u b l i s h e d b y P r a t i b h a
J o s h i December 1997)2 . N e p a l R a s t r a B a n k : - B a n k i n g a n d F i n a n c i a l S t a t i s t i c
( P u b l i s h e d U n d e r Banking Operation Department)3 . D r . J o s h i S h y a m D r .
H a r i P r a s a d S h r e s t h a : - P r i n c i p l e o f B a n k i n g a n d Insurance (Published by
Teleju Prakshan 2058)4. Nepal Bank Limited: - Bank Patrika and Annual Report
(Published by NepalBank Limited)5 . P a n t R . P r e m : - F i e l d
W o r k A s s i g n m e n t a n d W r i t i n g ( P u b l i s h e d b y V e e n a Academic Enterprise
Pvt. Ltd. Kathmandu)