'Deposit Mobilization Essay\r'

' demonstration\r\n1.1 Study Background\r\nFor the maturation of any state of matter, the pecuniary atomic number 18na of that country is responsible and must be strong. The m cardinaltary sector is vast field, which comprises of curses, cooperatives, insurance companies, monetary companies, stock exchange, foreign exchange markets, mutual silver etc. These institutions assemble idle and scattered property from the cosmopolitan universal and finally point in different enterprises of national economy that consequently facilitate in reducing poerty, increase in manners style of citizenry, increase employment opportunities and thereby exploitation the society and country as a whole. Thus, straight off’s concept, the pecuniary institutions and commercial brinks has become one of the bases for the measuring level of scotch development of nation.\r\n mercantile squeezes are the important source which motivates con socio-economic class to turn in their ea rnings. Bank deals in accepting the thriftiness of people in the miscellany of sedimentation appealingness and invest it in the productive area. They give the loan to the people against real and pecuniary assets. They imparting monetary sources from savers to users. In mixtureer(a) words, they are intermediate among loaner and receiver of fund they mobilize the dethronementor fund. Whereas in Nepal the fictional character of joint venture cants are still to be realized as an essentials machine of mobilizing upcountry saving by dint of different coin cambering schemes in the economy. Hence, to uplift the averse economic condition of the country, the process of capital letter accumulation, among different prerequisites should be expedited.\r\nThis project stem has been prepared as an output of the police detective’s internship experience in Nepal Credit and avocation Bank Limited. Nepal Credit and employment Bank Ltd. (NCC Bank) formally registered as Ne pal- Bank of Ceylon Ltd. Commenced its achievement on 14th October, 1996 as a colligation Venture with Bank of Ceylon, Srilanka. It was the first private sector intrust with the largest authorized capital of NRS. 1000 million. The passing play Office of the Bank is located at Siddhartha Nagar, Rupandehi, the place of birth of LORD BUDDHA, while its corporate office is rigid at Bagbazar, Kathmandu.\r\n1.2 Statement of the Problem\r\nNepal is underdeveloped country and rapid economic development is the basic necessity of the country. Development by its gist is not executable within a short period and it takes a long clip for the proper development of a country, it has to build up infrastructure. In Nepal, the process of development started only after 1956 A. D. when the first five year plan came into practice.\r\nCapital in fact, plays the leading billet for the economic development of a country. tho in Nepal, there is shortage of capital. There are various sources of accu mulating capital internal and out-of-door sources. Under external sources: aid, grants and loans are the main sources. In internal sources: accumulating capital, taxes, public enterprises, public debt are the popular in our country. But due to underdevelopment, poverty, lack of banking knowledge the desired capital for the development of the country cannot be accumulated from those internal sources. So, it can be said that in Nepal’s present situation bank desexualize is undecomposed and permanent sources of capital accumulation. The need of unsex militarisation for economic development of a country is no more to question. But we are facing an bang-up problem of resources mobilization. We have 32 commercial banks in Nepal which are very much considered to be brisk financial institution to mobilize domestic resources.\r\n1.3 nonsubjective of the Study\r\nThe objective of the train is to check alliance between the union of total deposit and get along of total comp uter address granted by the bank. The main objectives of the drive are:\r\n* To analyze the human relationship between deposits and loans and advances. * To analyze the effectiveness of deposit mobilization of the bank. * To examine how farthermost the affair rates of deposits have positively charged relationship with the deposit collection of the bank. * To measure the encroachment of interest rates of loan on the credit extended by the bank. * To draw suggestions and recommendations to the concerned bank for the further mendment.\r\n1.4 Significance of the Study\r\nBanks and other financial institutions play important usance to increase economic standard for the development of the country. Economic development becomes tardily if there are incomplete and unfair banking facilities. in particular commercial banks provide different economic and good facilities to the people who involve in business activities. mercenary banks play major role in collection of scared small n est egg form depositors and transfer these funds into productive sectors for the economic development.\r\nMainly this deal covers the deposit and credit position of commercial bank (NCC), so it helps to reveal the financial position of bank and guinea pig occupies an important role in the series of the studies on commercial bank. The significances of the take away are: * alpha to know how well the bank is utilizing its deposits. * Important to indemnity formulator and similarly be multipurpose for academic professionals, students curiously those involves in commerce, CA and financial institutions to mull over policies and plans on the basis of the performance of the bank. * Important to the management companionship of the bank for the evaluation of the performance of their bank and similitude with other banks. * Important for the investors, customers (depositors, loan takers) and personnel of bank to take various decisions regarding deposits and loan advances. * This co nsider impart be equally important to the others who are interested to know about the area. It may encourage to queryer to investigate further.\r\n1.5 Relevance of the Study\r\nCurrently, banks are gaining the stakeholders’ popular opinion through their efficient management and professional run and playing an eminent role in the economy. The deposit mobilization for the bank is tough job. So, the study is focussed on how the deposits are mobilized by the bank. The study attempts to unite the financial performance and the deposit mobilization of the bank.\r\nThe study is expect to be useful to different stakeholders as: 1. The study is expected to be useful to the shareholders as they can analyze the risk relating to credit. 2. The study is expected to be useful to the management bodies of the bank to improve the operations of the bank to add more cling to to its service 3. The study is expected to be useful to the government body, NRB for further seek is the area to formulate and implement new policies and regulations. 4. The study is expected to be useful to the other stakeholders to know the practices made over the deposit mobilization by the bank 5. The study is expected to be useful to analyzes the internal strengths and weaknesses of the bank 6. The study is expected to be useful to anyone who is conducting a bank survey in the related topic.\r\n1.6 research Questions\r\nThe study intends to reveal the following issues of deposit mobilization practices by the bank: 1. What is the relationship between deposit and loans and advances? 2. What is the effectiveness of deposit mobilization of the bank? 3. How far the interest rates of deposits have positive relationship with the deposit collection of the bank? 4. What is the increasing or decreasing trend of deposit mobilization of the bank?\r\n1.7 Limitations of the Study\r\nAs every research has its knowledge limitation, this study is not biased. The research is done for the incomplete fulf illment of MBA. Therefore, this study has whatever limitations, which are listed beneath: * This research study largely depends on the inessential entropy like annual reports (Profit and Loss Account, proportion Sheet and Financial Statements). * The study is base on only financial and statistical tools and technology. * The study primarily based on last five historic period data (2003 to 2008) that are not enough for the statistical calculation and cannot be generalized for entire financial sectors.\r\n1. 8 Organization of the Report\r\nChapter one deals with the general background of the study and the major issues which has governed the overall study, chapter 2 deals with the nature of Nepal’s banking industry and challenges of banking sector in Nepal, chapter three deals with the qualitative aspect of Nepal Credit and Commerce Bank Limited which gives the introduction of major products and service provided by NCC Bank and new innovative products recently launched by NCC Bank, chapter four deals with presentation and analysis of data and Finally chapter five deals with the findings of the study and the recommendations which have been given up to the bank for improving its deposit mobilization.\r\nCHAPTER II\r\n look backward OF LITERATURE\r\n2.1Review of Literature\r\nDeposit is the sum of coin lodged with a bank, discount house or other financial institution. Deposit is nothing more than the assets of an exclusive which is given to the bank for safe-keeping with an obligation to get something (interest) from it. To a bank these deposits are liabilities. Commercial bank encounter 2031 (1974) defines â€Å"Deposits” as the amount deposited in a current, savings or fixed accounts of a bank or financial institution. The deposits are subject to withdrawals by means of cheque on a short regain by customers. There are several restrictions on these deposits, regarding the amount of deposit, number of withdrawal etc. These are considered more as investments and hence they earn some interest. The rate of interest varies depending on the nature of the deposits. The bank attracts deposits from customers by offering different rates of interest and different kinds of facilities. Though the bank plays an important role in influencing the customer to save and open deposit accounts with it, it is ultimately the customer who decides whether s/he should deposit his surplus funds in current deposit a/c, saving deposits or fixed/time deposit a/c.\r\nBank deposits cabbage in two ways. When the banker receives cash in, it credits the customer’s account, it is cognise as a indigenous or a simple deposit. People deposit cash in the banking system and thereby convert one form of money, cash, into another form, bank money. They prefer to keep their money in deposit accounts and issue cheques against them to their creditors. Deposits also arise when customers are granted accommodation in the form of loans. When a bank grant s a loan to a customer it doesn’t usually pay cash but simply credits the customers account with the amount of loan. Of course, there is nothing that prevents the borrower from withdrawing the entire amount of adoption in cash but quite oft s/he retains the amount with the bank as deposit.\r\nCHAPTER III\r\nRESEARCH METHODOLOGY\r\nTo solve the research problems, few systematic ways are adoptive to collect the needful data and information. Research methodological analysis refers to the various sequential steps that are to be adopted by a researcher during the course of studying the problem with certain objectives. It shows overall research method from the theoretical aspects to the collection and analysis of the data. This study covers quantitative methodology in a great extent and also uses the descriptive part based on twain technical and logical aspect. This study tries to perform a well designed, quantitative and qualitative research in a very micturate and direct wa y by using both financial and statistical tools.\r\n3.1 Research Design\r\nThis study is based on a descriptive research design and follows an analytical approach. To achieve the study objectives, the required data are collected from secondary and primary sources and analyzed through the use of different financial and statistical tools.\r\n3.2 Research Tools\r\nIn order to collect the data, the researcher had visited the bank as an intern for 8 weeks of time period. The tools that are used for the study is through direct observation at the time of internship, and discussions with the officers of the bank in concerned department.\r\n3.3 Data Collection manner\r\nThe methods of collecting data are primary and secondary. original data includes personal observation, informal talk and also interview with officers whereas Secondary data includes yearbook report of the bank, published and unpublished documents etc.\r\n3.4 Data abstract Tools\r\nThe processed data were analyzed and test ed with the financial tools i.e. Ratio Analysis, Trend Analysis, graphs whereas Statistical tools are Karl Pearson’s Coefficient of Correlation Analysis, Probable Error (P.E) and Hypothesis Testing.\r\nBIBLIOGRAPHY\r\nBooks\r\n* Annual Report of NCC Bank limited 2003/04 †2007/08.\r\n* Kathmandu bourn Associates (KFA), Professional Banking Course references. * Levin R. I and Rubin D.S. (2008), â€Å"Statistics for Management (7th Ed.)”, Pearson assimilator Hall. modernistic Delhi * Sharma, Pushkar Kumar and Chaudhary, Arun Kumar (2058), â€Å"Statistical Methods”, Kathmandu: Khanal Books Prakashan. * Van Horne, C. mob (2005), â€Å"Financial Management and Policy”, (12th Ed.), Pearson Prentice Hall, New Delhi.\r\nWebsites\r\nwww.nrb.gov.np\r\nwww.google.com\r\nwww.wikipedia.com\r\nwww.nccbank.com.np\r\n'