FIXED DEPOSIT OF NEPAL BANK LTD.

A project Work Report

By

Sushma Bhattarai

T.U. Regd. No: 7-2-0479-0057-2013

Hetauda School of Management and Social Sciences

Submitted to

The Faculty of Management

Tribhuvan University
Kathmandu

In partial fulfillment of the requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Kathmandu, Nepal
Feb, 2017
 DECLARATION

I hereby declare that the project work entitled FIXED DEPOSIT OF NEPAL BANK
LTD. submitted to the Faculty of Management, Tribhuvan University, Kathmandu is an
original piece of work under the supervision of Mr. Tika Sapkota, faculty member,
Hetauda School of Management, Hetauda, and is submitted in a partial fulfillment of the
requirements for the award of the degree of Bachelor of Business Studies (BBS). This
project work report has not been submitted to any other university or institution for the
award of any degree or diploma.

Signature

SUSHMA BHATTARAI

Date:
 SUPERVISORS RECOMMENDATION

The project work report entitled FIXED DEPOSITOF NEPAL BANK LTD submitted by
SUSHMA BHATTARAI of HETAUDA SCHOOL OF MANAGEMENT, HETAUDA, is
prepared under my supervision as per the procedure and format requirements laid by the
Faculty of Management, Tribhuvan University, as partial fulfillment of the requirements
for the award of the degree of Bachelor of Business Studies (BBS). I, therefore,
recommend the project work report for evaluation.

Signature:

TIKA SAPKOTA

HETAUDA SCHOOL OF MANAGEMENT

 ACKNOWLEDGEMENT

Being a student of Bachelor of Business Studies ( BBS) of Tribhuvan University, it is my

privilege to prepare a report which is my first step towards the field of research of
management subject. Though this is the requirement of curriculum of TU, I personally put
my hard work on it to understand and analyze the fixed deposit of Nepal Bank ltd.

At first, I would like to express my cordial gratitude to all the teachers. For this
dissertation, I would like to pay my sincere thanks to my report Advisor Mr. Tika Sapkota
Lecturer at Hetauda School of management. His incessant suggestion and guidance from
the beginning to the end is really an appreciable effort. His valuable support for the
preparation of proposal to report is really praise worthy.

I would also like to express my gratitude to all teachers and faculty member for their
precious guidelines. I am extremely indebted by their efforts despite their busy schedule.

Last but not the least Im greatly indebted by my all friends and family members. In this
regard, Im grateful to the Bank Manager Mr Khadga singh Muktan who provides the
information or data about fixed deposits.

Sushma Bhattarai

(Researcher)

Hetauda school of Management

T.U. Regd. No. 7-2-0479-0057-2013

 TABLE OF CONTENT

Title page i

Declaration ii

Supervisors Recommendation iii

Acknowledgement iv

Table of Content v

List of Table vi

List of Figures vii

CHAPTER I: INTRODUCTION

1.1 Background 1

1.2 Statement of Problem 2

1.3 Objectives of Study 3

1.4 Significance of Study 4

1.5 Limitations of Study 5

1.6 Organization of Study 6

CHAPTER II: RELATED LITERATURE REVIEW

Conceptual Review 7

Review of Previous Works 8

Research Gap 9

CHAPTER III: METHODS

Types of Research 10

Population and Sample 11

Types of Data

Data Collection Procedure

Instrument

Techniques of Analysis

Limitation

CHAPTER IV: RESULTS AND FINDINGS

Presentation of Data

Major Findings

CHAPTER V: DISCUSSION AND CONCLUSION

Discussion

Conclusion and Implication

REFRENCES

APPENDICES
 Chapter I
INTRODUCTION
1.1 Meaning and definition of bank
Bank means, we simply know that those institution involvement in accepting deposit from
the general people and providing loan to them. A Bank is financial institution, which deals
with money and credit. Bank accepts deposits from the public and mobilizes the fund to
productive sectors. Bank also provides remittance facility to transfer money from one place
to another. Generally, bank accepts deposits from business institutions and individuals,
which is mobilized into productive sectors mainly business and consumer lending. So
bank is also called a dealer of money.
At present context, a bank may engaged in different types of functions such as remittance,
exchange currency, joint venture, underwriting, bank guarantee, discounting bills etc. The
bank collects deposits in three deposits schemes i.e fixed account, saving account and
current account. Bank plays an important role as a financial mediator between the money
saver and the users. Bank encourage the saving habit of the people. Bank invest huge
amount of capital in the productive areas by providing loan to the businessman.
According to G. Crowther
"A bank is an institution which collects money from those who have it to spare or who are
saving it out of their income and lend, this money out to those who require it".
Meaning of commercial bank
The commercial banks are those banks that pool together the savings of community and
arrange for their productive use. They activate the idle money to different productive areas.
They supply the financial needs of modern business by various means. Most of the banks
in the world are found established with a view to finance and help in developing trade,
industry and commerce. In fact, commercial banks can be defined according to the
function they perform. Commercial banks accept the deposit and also provide loan
functions they perform. Commercial banks can accept deposits and also provide loan
primarily to business firms thereby facilitating the transfer of funds in the economy.
There are 28 commercial bank licensed under class 'A'.

Introduction of Nepal bank limited

Among these commercial bank, Nepal bank limited is the first commercial bank which
was established in the year 1994 B.S. When NBL was established, it was formed under the
principle of Joint venture (Joint venture between Government and general public). NBL's
authorized capital was NPR 10 million & issued capital NPR 2.5 million of which paid-up
capital was NPR 842,000 with 10 shareholders. The bank has been providing banking
through its branch offices in the different geographical locations of the country. Nepal
Bank Limited is providing services to its customers from its 118 branches. It provides
deposit facility, various loan facilities, advanced ABBS services from 110
branches, Internet Banking along with the ATM facilities all over the country.
Deposits are one of the main sources of advances to customers. So, banks have
introduced different types of deposits. They are as follows:-
1. Saving Deposit
2. Fixed Deposit
3. Current Deposit
1.2 Statement of Problem
As we know that the main objective of commercial bank is to maximize profit by the
mobilization of the resources they have. But if the bank fails to collect adequate deposit
then it loses profitable opportunities and hence fails to generate profit.
Therefore the main focus of this study is to deal with the following problems so far it will
be possible to cope with:-
How much has Nepal bank limited branch office been able to collect the fund from
general public as fixed deposit?
What are the relationship between fixed deposit and total deposit?
Where and how much does the bank mobilize its collected deposit?

1.3 Objectives of the study

The main purpose of this report is to study, analyze and understand the fixed deposit out of
the total deposit of Nepal bank limited.
To sketch the position of fixed deposit of Nepal bank Ltd.
To analyze the relationship between fixed deposit and total deposit.
To analyze the ratio between fixed deposit and investment.

1.4 Significance of the study

Following are the significance of the study:-
It shows the financial position of Nepal bank Ltd. and its contribution in upgrading
national economy of Nepal.
It is consider for most suitable for long term investment.
It shows the relationship of fixed deposit and total deposit.
It gives some valuable and needed information of bank for stockholder.
It gives information about situation of bank, working capacity, working policies
and way of solving problems of banks.
To provide necessary documentary information to the existing and new companies
to be operated in near future.
1.5 Limitation of the study
As each and everything have some limitations. It's not an exception. It has also some
limitations. They are given below:-
This study focus only on fixed deposit among the different deposit pattern of Nepal
bank Ltd.
It is difficult to collect and gather all the required information due to the time limit
to prepare this study.
Only Nepal bank Ltd. is taken into consideration.
The study is mainly depends on secondary data.
The main focus is given to the quantitative aspect rather than qualitative aspect.
Very limited financial and statistical tools are used in the analysis.
Time is another constraint.
Only past 5 years data are taken.
1.6 Report structure
This study will be divided into five chapters as follows:
Chapter One deals with the subject matter of the study. The outline of the research is
presented in the chapter. The whole research will be based on the introduction chapter. It
deals with general background of the study, statement of the problems, objectives of the
study, significance of the study, limitations of the study and organization of the study.
Chapter Two deals with the review of literature. It includes a discussion on the conceptual
framework on fixed deposit. It also includes review of various studies(i.e. various books,
journals & articles, masters degree thesis etc) related with fixed deposit. It also includes
major studies relating with fixed deposit.
Chapter Three explains the Research methodology used to evaluate fixed deposit
practices of commercial banks in Nepal. It consists of research design, source of data,
population and sample statistical tools and financial tools and it also includes limitation of
the study.
Chapter Four is the main part of the study which fulfills the objective of the study by
presenting data and analyzing them with the help of various statistical tools as per
methodology. In this chapter, descriptive analysis of the gathered data and information
using statistical as well as financial tools is carried out. In this chapter, major findings of
the study have been conducted based on primary and secondary data.
Chapter Five includes the major findings and conclusion of the study. This chapter deals
with the summary and conclusion of the study and gives recommendations for
improvement in the fixed deposit behavior of the listed banks.

CHAPTER II
REVIEW OF LITERATURE
Going through previous studies and books with the purpose of knowing the research issue
in detail and find out appropriate methodology is known as literature review.This Chapter
is basically concerned with review of literature relevant to the topic "Fixed deposit of
Nepal Bank Ltd."Every study is very much based in past knowledge. The previous study
cannot be ignored because they provide the foundation to the present study. There must be
continuity in research. This continuity in research is ensured by linking the present study
with past research studies.
2.1.Conceptual Review
2.1.1Fixed Deposit
The account which is opened for a particular fixed period (time) by depositing particular
amount (money) is known as Fixed (Term) Deposit Account. The term 'fixed deposit'
means that the deposit is fixed and is repayable only after a specific period is over.
Under fixed deposit account, money is deposited for a fixed period say six months, one
year, five years or even ten years. The money deposited in this account cannot be
withdrawn before the expiry of period. The rate of interest paid for fixed deposit vary
(changes) according to amount, period and from bank to bank.
Fixed deposit refers to deposit of the fixed amount, fixed interest rate, fixed time and fixed
payee, banks issue fixed deposit as proof deposit or deposit from the borrower which is
non negotiable. Fixed deposit contains following information:-
Date of deposit
Value date if any
Amount
Payee
Interest rate
Date of maturity
Signature of bank official
Since, interest is normally paid at fixed interest before maturing the depositor is required to
maintain another account i.e. current saving or call normally higher rate offered for long
term deposit.

Opening Procedure of Fixed A/C

Comparatively the opening procedure of fixed deposit is easy because the depositor is not
allowed the facility of customers being as a fixed deposit holder that is he is not allowed to
deposit any other installment nor allowed to introduce.
To open the fixed deposit a/c, stating the amount to be deposited and thetime period to it,
should fill fixed deposit a/c form. Similarly the payment of interest procedure should also
be stated in the form. The form also needs a signature of the a/c holder or thumb
impression or both. After depositing the amount with the approval from the bank, bank
issues fixed deposit receipt in which the bank accepts the liability to pay the deposited
amount and interest after the maturity period. The interest may also be provided quarterly,
semi annually and for that purpose the condition to pay interest, to whom and in which
way should also be mentioned.
It should be noted that the fixed deposit a/c is not a negotiable instrument that is it cannot
be transferred to any other person by making any endorsement. The account holder should
come himself to refund the amount after the maturity period. The provision about fixed
deposit a/c is generally printed on the account opening form's batch.

Closing Procedure of Fixed A/C

Generally fixed a/c is closed only after the maturity period. After the end of the maturity
time, the customer has to give application to return the amount with fixed deposit receipt.
But incase if the customer has turned insane, lunatic or has died, the bank has to pay the
deposit willed by him. But if no person is willed by the depositor the amount should be
paid to person from among the relative in accordance to the commercial act 2031 sec
23(1). Similarly, if the person is declared insolvent by the court the amount should be paid
according to the direction given by the current or official nominee.

2.1.2 INTEREST RATE

Fixed Deposit

1. 3 Month 5.00% 3.00%

2. NBL 100 days Fixed Deposit 8.50%

3. 6 Month 9.50% 6.00%

4. 1 year 10.50% 6.50%

5. Nepalaxmi Fixed Deposit (Above 1 year up to 5 years) 7.00%

6. Employee Welfare Account 4.00%

7. Flexi Fixed Deposit 6.00%

2.2 Review of Previous Work

Review of previous report:
Ghimire Sarmila (2014) in her case study titled ' A case study on Fixed Deposit at Nepal
Bangladesh Bank Ltd' mention the following objectives:
To identify the trend of deposit of Nepal Bangladesh Bank.
Show the problem and make recommendation for the solution.
To analyze Fixed deposit scheme.
To fulfill the objectives she used following tools:
Liquidity ratio
Cash reserve ratio (CRR)
Liquid assets to total deposit ratio
Mean
Standard deviation
By using above tools she present the conclusion as Nepal Bangladesh Bank Limited has
been efficient in correlation and mobilization of resources from the people in both Urban
and rural areas of the country. Going through the study of report and analysis of data, we
found that the total deposit and specially the fixed deposit show decrement. It is because of
the changes in interest rate. The bank's fixed deposit has played a positive role in the
collection of overall funds for the bank. Therefore, overall performance of Nepal
Bangladesh Bank Limited resulted from this report indicates satisfactory and worthwhile.
Review of Previous Article
A Fixed deposit (FD) is a financial instrument provided by banks which provides
investors with a higher rate of interest than a regular saving account, until the
given maturity date. It may or may not require the creation of a separate account. It
is known as a term deposit or time deposit in Canada, Australia, New Zealand, and
the US, and as a bond in the United Kingdom and India. They are considered to be
very safe investments. Term deposits in India and Pakistan is used to denote a
larger class of investments with varying levels of liquidity. The defining criteria for
a fixed deposit is that the money cannot be withdrawn from the FD as compared to
a recurring deposit or a demand deposit before maturity. Some banks may offer
additional services to FD holders such as loans against FD certificates at
competitive interest rates. It's important to note that banks may offer lesser interest
rates under uncertain economic conditions. The interest rate varies between 4 and
11 percent. The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can
be as high as 10 years. These investments are safer than Post Office Schemes as
they are covered by the Deposit Insurance and Credit Guarantee
Corporation (DICGC). However, DICGC guarantees amount up to 1, 00,000
(about) per depositor per bank. They also offer income tax and wealth tax benefits.

Source: en.wikipedia.org/wiki/Fixed deposit

2.3 Research Gap

The above review of the literature from various books, journal and thesis related to the
fixed deposit shows that the one of the major problem of fixed deposit in Nepalese bank is
unhealthy and people are not conscious about saving in fixed deposit account. The
literature review also shows that the commercial bank has been efficient in correlation and
mobilization of resources from the people in both Urban and rural areas of the country.
But it doesn't show the position of fixed deposit. So, this study attempts to sketch the
position of fixed deposit of Nepal bank ltd. by using the 5 years data, to know analyze the
relationship between fixed deposit and total deposit, to analyze the ratio between fixed
deposit and investment by using the different methodology discussed below.

CHAPTER III

Method/Methodology
3.1 Types of research
There are various types of research which were explained below:-
a. Descriptive research design:-
It is developed for subjective nature. It is completed as Finding objective
collection of sample data collection analysis of data preparing report.
b. Case study Research design:-
Details and intensive of single event. It is qualitative method of data
collection. The result of case study is not generalized. It is completed as
determine objective - preparing question for few event for single unit
prepare report.
c. Developmental Research design:-
It is used to predict future trend considering to the changes in events and
human social and cultural activities is known as developmental research
design. Following are the methods of developmental research:-
Longitudinal growth study
Cross sectional growth study
d. Comparative research design:-
Study the position of case that impact on certain works. It includes:-
explaination of effect explaination of cause impact of event. It is
classified into catagories :-
Correlational research
Casual comparative research
e. Experimental research design:-
The researcher controls all other variables and conducts research
considering to a few variables through observation or experiment is known
as experimental research. It is classified as two catagories:-
True experimental research design
Quasi experimental research design

Among these above types this research design is based on

descriptive research design because this research explained about
the single variable. It does not explain the relationship between the
variables.
3.2 Population and sample:-
Population refers to the entire group of people events or things of interest that
the researcher wishes to investigate. When some of the elements are selected
with the intension of finding out something about the population from which
they are taken, that group of elements is referred as a sample and the process of
selection is called sampling.

3.3 Types of data:-

There are two types of data :-
a. Qualitative data:-
A research which is concerned with subjective phenomenon is known as
qualitative research. The main aim of qualitative research is to get depth
knowledge and explain the issue rather than finding the solution or coming
to the conclusion.
b. Quantitative research:-
A research which is conducted based on the measurement of quantity is
known as quantitative research. Quantitative technique of research can be
used in the research of those issues which can be measured exactly in the
quantity or amount.

Among these two types of research my research is based on quantitative

method because it contains various types of data which can be measured by
using statistical tools.

3.4 Data collection procedure:-

a. Primary source of data:-
Data developed by the researcher himself for the purpose of present
research is known as primary data. Primary Data is used when secondary
 data is not available or secondary data only is not sufficient to draw
conclusions or to know the attitude and behavior of individual and groups.
It can be collected using various methods:-
Interview
Questionnaire
Observation
b. Secondary source of data:-
Information gathered by someone other than the researcher associated with
the current study is known as secondary data. Secondary data are
irreplacement element of organizational research. It can be collected from
various sources:-
Published sources
Unpublished sources
Computerized database
As the data used in the research are collected with the help of internet. Thus the data
collection procedure is from secondary sources. The data are taken from the audited annual
report of Nepal bank which was published in the page of Nepal bank ltd in internet.
Whereas some more information or data were collected through primary source as by
observation, interview and preparing questionnaire. Thus the data are collected from both
sources primary and secondary.

3.5. Instruments / Techniques of Analysis:-

The methods which are used to analyze a case are known as tools after adjusting necessary
amount of each overhead. However for the analysis of the data following tools are used:-
Financial tools
Graphical tools
Statistical tools
3.5.1. Financial tools:-
There are different type of financial tools that can be applied to analyze the financial
performance of Nepal Bank Ltd, but for our field work analysis following ratio analysis
tools are used

a) Fixed Deposit to Total Deposit Ratio

The ratio can be calculated by this way.
Fixed deposit
Fixed Deposit to Total Deposit Ratio =
Total Deposit

b) Investment to Fixed Deposit Ratio

The ratio can be calculated by this way.
Investment
Investment to Fixed Deposit = Fixed Deposit

3.5.2. Graphical Tools:-

For the presentation of data, diagrams are more attractive, impressive and easy to
understand than the numerical data. . For our field work study following selected graphical
tools are taken to examine the economic data of Nepal Bank Ltd.
Table
Bar diagram
Pie Chart

STATISTICAL TOOLS

.
3.5.3. Statistical tools:-
The mathematical tools used to forecast the future on the basis of previous data are called
statistical tools. For our field work study following selected statistical tools are taken to
examine the economic data of Nepal Bank Ltd.
Arithmetic Mean:-
The sum of all observations divided by the total number of observations is known
as arithmetic mean.
Mean ( X ) = fx / n
Where, n = number of observation
Standard Deviation:-
The positive square root of the arithmetic mean of the deviation taken for arithmetic
mean is known as standard deviation. It is denoted by greek letter ( ).
Coefficient of Variation (CV) :-
Coefficient of variation can be calculated by using following formula :-
CV = / X

CHAPTER IV
RESULTS AND FINDINGS
Presentation of data in table and figures and their analysis:-
The most valuable and crucial tool to evaluate the true and actual position of any
organization is its past data. The strength and weakness of the organization can be
appraised from the proper analysis of data.
The part of the report focuses on presentation and analysis of data related to the fixed
deposit of Nepal Bank Ltd to obtain the objective of study.
For the presentation of data, diagrams are more attractive, impressive and easy to
understand than the numerical data. So here are the data of previous five years of Nepal
Bank Ltd in tabular form and pie chart and bar diagram.

4.1. TOTAL DEPOSIT

The deposit are said to be "life blood of the bank". The first and utmost important thing to
know is the total deposit trend in Nepal Bank Ltd. Total deposit refers to the total deposit
of the general public in various accounts during certain period of time.
The following table shows the status of deposit of Nepal Bank Ltd during the financial
year from 2069 to 2073.

Table no 1
Total Deposit of Nepal Bank Limited

Fiscal Year Total Deposit Change in total Change in total

deposit (Amount) deposit (percentage)
2068-069 56,052,372,757 - -
2069-070 62,984,350,047 6,931,977,290 12.37%
2070-071 69,337,609,697 6,353,259,650 10.09%
2071-072 77,998,775,919 8,661,166,220 12.49%
2072-073 89,;410,018,773 1,141,124,286 14.63%

(Source: Audited report of NBL)

The graphic presentation of total deposit of Nepal Bank Ltd is shown in the figure below:
Figure no. 1
Total Deposit Trend

Total Deposit
100,000,000,000
90,000,000,000
80,000,000,000
70,000,000,000
60,000,000,000
50,000,000,000
Total Deposit
40,000,000,000
30,000,000,000
20,000,000,000
10,000,000,000
0
2068-069 2069-070 2070-071 2071-072 2072-073
4.2 Trend of Fixed Deposit of Nepal Bank Ltd:
Fixed deposit is the major source of working capital of any commercial bank. Thus Nepal
Bank Ltd has been able to collect adequate fixed deposit by providing competitive rate of
interest for investing alternatively in loans and advances and investment. The following
table shows the trend of fixed deposit in Nepal Bank Ltd during fiscal year 2069-070 to
2073-074.

Table no.2
Fixed Deposit Trend of Nepal Bank Ltd

Fiscal year Fixed deposit Change in Total Change in Total

Deposit(amount) deposit
(percentage)
2068-069 11,664,593,179 - -
2069-070 12,651,262,432 986669260 8.46%
2070-071 12,122,995,495 (528266940) (4.18%)
2071-072 11,286,210,943 (836784550) (6.90%)
2072-073 11731210126 444999180 3.94%
(Source: Audited report of NBL)
The trend of five year is presented graphically in figure.
Figure no. 2
 Fixed Deposit

Fixed Deposit
1.3E+10

1.25E+10

1.2E+10

Fixed Deposit
1.15E+10

1.1E+10

1.05E+10
2068-069 2069-070 2070-071 2071-072 2072-073

Fixed Deposit Trend

Fixed deposit
1.3E+10

1.25E+10

1.2E+10

Fixed deposit
1.15E+10

1.1E+10

1.05E+10
2068-069 2069-070 2070-071 2071-072 2072-073
4.3 Fixed Deposit to Total Deposit Ratio
This ratio measures the percentage of fixed deposit to total deposit ratio. This deposits is
calculated by dividing fixed deposit with total deposit.

Fixed deposit to total deposit = Fixed Deposit

Total Deposit

Table no. 3
Fixed Deposit to Total Deposit Ratio
Fiscal year Fixed Deposit(F.D) Total Deposit(T.D) Ratio of F.D to T.D

2068-069 11,664,593,179 56,052,372,757 20.81%

2069-070 12,651,262,432 62,984,350,047 20.09%
2070-071 12,122,995,495 69,337,609,697 17.48%
2071-072 11,286,210,943 77,998,775,919 14.47%
2072-073 11731210126 89,410,018,773 13.12%

(Source: Appendices 1.1)

Figure no. 3
 Comparative Fixed Deposit with Total Deposit

1E+11

9E+10

8E+10

7E+10

6E+10

5E+10 fixed deposit

Total Deposit
4E+10

3E+10

2E+10

1E+10

0
2068-069 2069-070 2070-071 2071-072 2073-074

Pie Chart

Fixed deposit to total deposit ratio

14.47%
20.81% 2068-069
2069-070
2070-071
2071-072
17.48%
2072-073

20.09%
Investment to Fixed Deposit Ratio
Fiscal year Fixed Deposit(F.D) Investment Ratio

2068-069 11,664,593,179 8,391,726,083 71.94%

2069-070 12,651,262,432 10,979,120,246 86.78%

2070-071 12,122,995,495 22,664,105,663 186.96%

2071-072 11,286,210,943 16,902,242,686 149.76%

2072-073 11,731,210,126 12,843,441,784 109.48%

( Source : Apendices 1.2)

Pie chart

Investment to Fixed deposit Ratio

71.94%
109.48%
2068-069
86.78% 2069-070
2070-071
149.76% 2071-072
2072-073
186.96%
Major Findings
A) Total deposit
Total deposit shows the financial position of the bank. Higher total deposit leads to
increase in the profit of the bank. In the above calculation, the total deposit is
increasing from FY 2068/069 to FY 2072/073. Increasing total deposit shows the
strong financial position of the bank.
B) Fixed deposit
Fixed deposit shows the investment done by the people. In the above calculation,
the fixed deposit is increasing from FY 2068/069 to FY 2069/070 and it decreases
from FY 2069/070 to FY 2070/071 and again increase in FY 2072/073. It shows
that the people are interested to invest their savings in bank in recent year.
C) Ratio analysis
Fixed deposit to total deposit
According to the ratio of fixed deposit to total deposit in various years, the above
calculation shows the ratios are decreasing over the time period. The ratio are decreased
from FY 2068/069 to FY 2072/073.

Investment to fixed deposit

According to the ratio of investment to fixed deposit in various years, the above calculation
shows the ratios in various years are fluctuated. The highest ratio was in FY 2070/071 and
the lowest ratio is in FY2068/069. It shows that ratio increase from FY 2068/069 to FY
2070/071 and after that ratio decreases from FY 2070/071 to FY 2072/073.
 CHAPTER V

DISCUSSIONS AND CONCLUSION

Discussions
After the study of different data provided by NBL and the data collected from different
sources about NBL there are some recommendation referred to NBL which may help it in
further development:
a. As this is the modern competitive, customers want more improved services so bank
should attract more depositors by providing improved and new services and
facilities.
b. The banks should use modern instrument to perform the banking activities.
c. The bank must not invest only in one sector; different sector should be selected for
the investment.
d. The bank should also provide more attention towards the priority sectors and also
provide the industrial scheme for the development of the economic condition of the
country.
Conclusion and implication
From the study and analysis of the data of the fixed deposit of NBL. It can be said that
percentage of depositing money in the fixed deposit has been fluctuated. NBL has been
efficient in collection and mobilization of resources from the people in both Urban and
rural areas of the country. Going through the study of report and analysis of data, we found
that the total deposit has been increasing over the five years time period but the fixed
deposit show decrement. It is because of the change in interest rate in fixed deposit. The
bank's fixed deposit has played a positive role in the collection of overall funds for the
bank. From the analysis and findings of the study, deposit controls the major economic
activities of the nation because it is invested. The increasing investment in business can
generate income and create employment opportunity in the society. Also the invested
money is satisfactorily returned back and interest is earned.
From the above ratio analysis of the fixed deposit to total deposit, we concluded that the
ratio has been decreasing over the five years time period. Also if we look for the ratio
analysis of the Investment to fixed deposit ratio we concluded that the ratio has been
fluctuated over the five years time period.

The analysis of fixed deposit conclude that the collected funds are properly utilized in
returnable area. The increment on fixed deposit can encourage bank to maintain and
enhance its profitability and long term sustainability as well as proper management and
utilization of fixed deposit can help them to maintain its interest rates so that it can
encourage the low income people towards fixed deposit.
APENDICES
1. Ratio Analysis:
1.1. Fixed Deposit to Total Deposit Ratio

Ratio = (Fixed deposit / Total deposit) 100%

2068/069 = ( 11,664,593,179 / 89,410,018,773) 100% =20.81%

2069/070 = (12,651,262,432 / 77,998,775,919) 100% =20.09%

2070/071 = ( 12,122,995,495 / 69,337,609,697) 100% =17.48%

2071/072 = ( 11731210126 / 62,984,350,047) 100% =14.47%

2071/072 = (11,286,210,943 / 56,052,372,757) 100% =13.12%

1.2.Investment to Fixed deposit ratio

Ratio = ( Investment / Fixed deposit ) 100%

2068/069 = (8,391,726,083 / 11,664,593,179) 100% = 71.94%

2069/070 = (10,979,120,246 / 12,651,262,432) 100% = 86.78%

2070/071 = (22,664,105,663 / 12,122,995,495) 100% = 186.96%

2071/072 = (16,902,242,686 / 11,286,210,943) 100% = 149.76%

2072/073 = (12,843,441,784 / 11,731,210,126) 100% = 109.48%

1.3.Financial Analysis of Loan Investment

Fiscal Year Fixed deposit (x-x) ^2

068/069 11,664,593,179
069/070 12,651,262,432
070/071 12,122,995,495
071/072 11,286,210,943
072/073 11,731,210,126
Total

Mean(x) =x =