Deposit Mobilization of Sanima Bank
Deposit Mobilization of Sanima Bank
By:
Sulochana Tamang
AshriwadbCollege
Group: Finance
Submitted To:
Tribhuvan University
kapurdhara, Kathmandu
May,2023
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DECLARATION
I hereby declare that the project work entitled "DEPOSIT MOBILIZATION OF SANIMA
BANK NEPAL LIMITED" submitted to the Faculty of Management, Tribhuvan
University, Kathmandu is an original piece of work under the supervision of Manandhar
, faculty member of Ashriwad College ,kapurdhara,Samakhusi Kathmandu, and is
submitted in partial fulfillment of the requirements for the degree of Bachelor of
Business Studies (BBS). This project work has not been submitted to any other
university or institution for the award of any degree or diploma.
………………………
Sulochana Tamang
May , 2023
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SUPERVISOR'S RECOMMENDATION
……………………..
May ,2023
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ENDORSEMENT
………………………………………. …………..
………………………...
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ACKNOWLEGEMENT
With deep sense of gratitude, I would like to acknowledge the encouragement and
guidance from my friends, teachers and other associated members. This really helped
me for completing this project with greater efficiency.
Sulchana Tamang
May ,2023
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TABLE OF CONTENTS
Title Page…………………………………………………………………………………………….... i
Declaration……………………………………………………………………………………………. ii
Endorsement……………………………………………………………………………………….…. iv
Acknowledgement……………………………………………………………………………………. v
Table of contents………………………………………………………………………………….…. vi
Abbreviations……………………………………………………………………………………….…. ix
CHAPTER-1 INTRODUCTION………………………………………………………… 1
1.3 Objectives………………………………………………………………………………. 4
1.4 Rationale………………………………………………………………………………… 4
1.6 Methods……………………………………………………………………………….…. 6
1.7 Limitations………………………………………………………………………………. 8
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CHAPTER-3 SUMMARY AND CONCLUSION…………………………………………
19
3.1 Summary…………………………………………………………………………………. 19
3.2 Conclusion………………………………………………………………………………... 20
BIBLIOGRAPHY…………………………………………………………………………… 21
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LIST OF TABLES
1. Return of Asset 11
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LIST OF FIGURES
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ABBREVIATION
No. = Number
% = Percentage
FY = Fiscal Year
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CHAPTER-1
INTRODUCTION
For the development of developing country like Nepal, every aspects of economic
sectors such as agriculture, trade, industry must be developed. So for the
development of these sectors large sums of resources are needed. But for the
developing country like Nepal, there is always a lack of capital for the
development activities .It is impossible for the government alone to handle and
develop all these sector alone at a same time. Likewise, Private sector alone
cannot invest in large business due to low per capital income and lack of sources.
Due to low per capital income their saving are very low and also their capital
formation are low. So for the economic development of these sectors, bank
always plays an important role.
Among various function of banks, deposit collection is the major functions of all
commercial Banks. A deposit is a financial term with multiple definitions. It is an
amount taken from the customer/amount deposited by the customer. Different
accounts (saving, current, fixed, margin call account) are used to collect the
amount. It can be interest-bearing and non-interest bearing.
Deposits are the funds, the customers collect in the bank for the purpose of
saving and interest income for which the bank gives or takes interest in
accordance with the nature. Mostly among the various deposits features provided
by banks. The deposit can be categorized into different categories based on the
currency, collection, time, interest-bearing and nature as follows:
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1. Current Account Deposit: – The depositors of such deposits can withdraw
and deposit money whenever they want any number of times. It is non- interest
bearing deposit mainly used by big business firms and business people because
they have to make payments and accept payments many times in a day.
3. Fixed Deposit: – This deposit is also called long term deposit because the
duration of the deposit is normally more than one year. The bank pays high
interest for the account holder. The account holder cannot withdraw money
before the maturity period.
Deposit Collection is the major function of all commercial bank it helps to carry
out almost all the transaction of bank. Mostly among the various deposits
schemes and features provided by bank: fixed and saving deposit are considered
to be the most suitable because this deposit can be invested in the short term loan
with higher rate of return .so the deposit in the commercial banks has a great
contribution to the country’s economy if deposits are extensively collected and
effectively mobilized. This report however intends to give general information
regarding banking, deposit and prospects of the deposit mobilization Sanima
bank Limited.
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1.2. Profile of organization
The bank has the authorized capital of Rs. 9,000,000,000 , issued capital of
Rs.8,801,380,984 and paid-up capital of Rs. 8,801,380,984 and its fifty-one
percent of the shares lay in the hands of the promoters while rest of the forty-nine
is in the hands of the general public. The bank has been providing various
services such as current account, fixed account ,Saving account, provides loans,
bank overdraft services, safe deposit lockers, debit and credit card services, SMS
banking, ABBS banking etc. The Bank has 79 full-fledged branches and 1
extension counter spread across the geography of Nepal and has been providing
charge fee ATM service all over Nepal from its 736 ATM Machines installed all
over Nepal .
Sanima Bank recognizes that in the capacity of a commercial bank, it has become
an inevitable part of the society’s economic organ and has drawn on societal
resources for day to day functioning. Therefore, apart from its core objectives, the
bank has certain obligations to contribute to society as a whole. So, it has been
creating societal impact through replicable, sustainable and scalable CSR
programs.
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1.3. Objectives of study:
To analyze deposit collection.
To identify deposit position.
To examine mobilization of deposits.
1.5. Methods
Research methodology is the method ,guidelines and the steps that are following
in analysis and it is the way of presenting collected data with meaningful
analysis .It refers to the various sequential to be adopted by a researcher in
studying a problem with certain objects.
Research Design
The research methodology is the process of arriving to the solution of the
problem through planned and systematic dealing with collection, analysis and
interpretation of facts and figures. This research is about analysis and
mobilization of deposit system of Sanima bank. The main purpose of this study
is to analyze deposits and its utilization of Sanima bank. The study is based on
the annual reports of the bank, library consults, class lectures, other related
articles and internet. This study is based on descriptive research design. For this
study historical data of last five years are collected to find out the performance of
Sanima bank.
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Method of data collection
Data collection is a fundamental aspect and as a result, there are different
methods of collecting data which when used on one particular set will result in
different kinds of data. Collection of data refers to a purpose gathering of
information and relevant to the subject-matter of the study from the units under
investigation. The method of collection of data mainly depends upon the nature,
purpose and the scope of inquiry on one hand and availability of resources, and
the time to the other. The statistical Data may be classified into primary and
secondary depending upon the nature and mode of collection.
Primary Data:
Primary data is data that is collected by a researcher from first-hand sources,
using methods like surveys, interviews, or experiments. It is collected with the
research project in mind, directly from primary sources. Primary data
collection sources include surveys, observations, experiments, questionnaire,
personal interview, etc.
Secondary Data:
When the data are collected by someone else for a purpose other than the
researcher's current project and has already undergone the statistical analysis is
called as Secondary Data. The secondary data are readily available from the other
sources and as such, there are no specific collection methods.
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Data processing
The collected data are processed by tabulation and arranging in a required form
for the sequential analysis of data .Comparative bar diagram and graph is also
used to processing the data .then through a study of all the collected secondary
data were done and important information were heighted and noted down.
Financial Tools
Statistical Tools
Financial tools
1. Fixed Deposit to Total Deposit Ratio
Fixed deposit is high interest bearing deposit and can be withdrawn only
after its maturity .the grater the proportion of fixed deposits, the lesser will
be the proportion of current or short term deposits in the total deposits,
which indicated higher short term position of a bank. It is calculated by
dividing the amount of fixed deposits by the amount of total deposit which
is given below:
Saving deposit stand midway between current and fixed deposit. These
deposit are not freely withdrawn as current deposit.it is calculated in order
to find out the proportion of total deposit which is short term and interest
bearing.
It can be calculated by dividing the amount of saving deposits by the
amount of the total deposits, which is given below:
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3. Current deposit to Total deposit Ratio:
It can be calculated by dividing the amount of current deposits by the
amount of Total deposits, which is given below:
Total deposit
It can be calculated by dividing the amount of Call and short deposit by the
amount of Total deposits, which is given below:
Call and short deposit to Total deposit ratio = Call and short deposit
Total deposit
Statical Tools:
Bar Graph
Data Table
Graph
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to broaden the information base and inputs to the study regarding the
commercial bank.
1.7. Limitation
The report does not represent detailed analysis of deposit in Sanima Bank
due to the lack of time relevant data and resources. This report is limited to
the information that was available in the bank and other sources.
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CHAPTER-2
In this section, basically the data presentation is done along with their
interpretation and thoroughly the result and analysis are performed for obtaining
the overall status of SBL with the given financial tools mentioned in previous
sections.
1. Total Deposit
Total deposit of SBL comprises of Fixed deposit ,Current Deposit, Saving Deposit ,Call
Deposit ,Margin and Other Deposits where other deposit refers to the deposit collected
from different other sources mentioned than above. Total deposit is calculated with the
sum of all the deposit schemes as shown in the table below:
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Table 1
Total Deposit
Margin
and
Fixed Current Saving Call other
S.N. FY Total
deposit deposit deposit deposit deposit
In NRS (000)
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IN (NRS 000)
50,000,000
45,000,000
40,000,000
35,000,000
30,000,000 Fixed
NRS
25,000,000 Current
20,000,000 Saving
15,000,000 Call
10,000,000 Margin
5,000,000
0
2014/15 2015/16 2016/17 2017/18 2018/19
Fiscal year
Table 1 and figure 1 represents the composition of deposits of Sanima Bank through last
five years.the figure cleary shows the fixed deposit amount was comparatively less than
saving deposit but higher than curent and other deposits in 2014/15.Fixed deposits
doesnot have much increment till 2015/16 but saving and current deposit shows an
increasing trend over the years.Likewise in 2016/17 ,2017/18 and 2018/19 the fixed
deposits and saving deposits has been dastrically increased which shows the
involvement of nepalese people in saving.
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2. Fixed Deposit to Total Deposit Ratio
This ratio measures the percentage of fixed deposit to total deposit. This ratio is
calculated by dividing fixed deposit by total deposit. The following table shows the fixed
deposit to total deposit ratio.
Table 2
IN NRS (000)
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60
46.84 48.5
50 43.31
40 34.39
27.26
Ratio(%)
30
Fixed deposit to total deposit
20 ratio
10 Linear (Fixed deposit to total
deposit ratio)
0
5 6 7 8 9
4 /1 5 /1 6 /1 7 /1 8 /1
1 1 1 1 1
20 20 20 20 20
FISCAL YEAR
Table 1 and figure 1 represent the ratio of fixed deposit to the total deposit over the last
five years.Fixed deposit was Rs 11,709,277,000 which was 34.39% of total deposit. But
in 2015/16 the ratio of total fixed deposit decreased by 27.26% to the total deposit. But
after that the ratio rapidly increased from 43.31% in 2016/17 to 46.84% in
2017/18.Likewise, again in 2018/19 the ratio of total fixed reaches to 48.5% to the total
deposit.
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3. Current Deposit to Total Deposit Ratio
This ratio measures the percentage of current deposit to total deposit. This ratio is
calculated by dividing current deposit by total deposit. The following table shows the
current deposit to total deposit ratio.
Table 3
IN NRS (000)
8 7.29
6.83
7
6 5.47 5.77
5 4.44
Ratio(%)
4
3 Current deposit to total
2 deposit
1 Linear (Current deposit to to-
tal deposit)
0
5 6 7 8 9
4 /1 5 /1 6 /1 7 /1 8 /1
1 1 1 1 1
20 20 20 20 20
FISCAL YEAR
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Figure 3: Current Deposit to Total Deposit line graph
Table 3 and figure 3 represent the ratio of Current deposit to the total deposit over the
last five years.Current deposit was Rs 1,863,965,000 which was 5.47% of total deposit.
Likewise, the current deposit in 2015/16 increase upward by 5.77% .But , in 2016/17
the ratio of Current deposit decreased decrease drastically by 4.44% to the total deposit.
But after that the ratio rapidly increased from 7.29% in 2017/18 .Likewise, again in
2018/19 the ratio of total current deposit reaches to 6.83% to the total deposit. This
shows that current deposit keeps on fluctuating to the total deposit other than other
deposit.
This ratio measures the percentage of saving deposit to total deposit. This ratio is
calculated by dividing saving deposit by total deposit. The following table shows the
saving deposit to total deposit ratio.
Table 4
IN NRS (000)
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42 40.82
40
38 36.57 36.83
36.21
Ratio(%)
36 34.66
Saving deposit to total
34 deposit ratio
32 Linear (Saving deposit to to-
tal deposit ratio)
30
15 16 17 18 19
14/ 15/ 16/ 17/ 18/
20 20 20 20 20
FISCAL YEAR
Table 4 and figure 4 represent the ratio of Saving deposit to the total deposit over the
last five years. Saving deposit was Rs 12,452,252,000 which was 36.57% of total deposit.
Likewise, the Saving deposit in 2015/16 drastically increase upward by 40.82% .But , in
2016/17 the ratio of Saving deposit decreased by 36.83% to the total deposit. Again, the
ratio of total saving deposit rapidly decrease from 36.21% in 2017/18 to 34.66% in
2018/19 the ratio of total deposit .This shows that Saving deposit has been fluctuating
in downward to the total deposit other than other deposit.
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This ratio measures the percentage of call deposit to total deposit. This ratio is
calculated by dividing call deposit by total deposit. The following table shows the call
deposit to total deposit ratio.
Table 5
IN NRS (000)
30
26.13
25 23.15
20
Ratio(%)
14.43
15 Call deposit to total deposit
ratio
10 8.54 8.66
Linear (Call deposit to total
deposit ratio)
5
0
2014/152015/162016/172017/182018/19
FISCAL YEAR
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Figure 5: Call Deposit to Total Deposit line graph
Table 5 and figure 5 represent the ratio of Call deposit to the total deposit over the last
five years. Call deposit was Rs 7,882,471,000 which was 23.15% of total deposit.
Likewise, the Call deposit in 2015/16 drastically increase upward by 26.13% .But , in
2016/17 the ratio of Call deposit decreased rapidly by 14.43% to the total deposit and
continues to decrease to 8.54% in 2017/18 .It slightly increase to 8.66% in 2018/19 in
the ratio of total deposit .This shows that Call deposit has been continuously fluctuating
in to the total deposit other than other deposit.
This ratio measures the percentage of margin deposit to total deposit. This ratio is
calculated by dividing margin deposit by total deposit. The following table shows the
margin deposit to total deposit ratio.
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Table 6
2. 2015/16 - 46,423,306 -
IN NRS (000)
1.4 1.33
1.2 1.09
0.97
1
Ratio(%)
0.8
Margin deposit to total
0.6 deposit
0.4
0.4 Linear (Margin deposit to to-
0.2 tal deposit)
0
0
2014/152015/162016/172017/182018/19
FISCAL YEAR
Table 5 and figure 5 represent the ratio of margin deposit to the total deposit over the
last five years. Margin deposit was Rs 137,351,000 which was 0.4% of total deposit.
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Likewise, there is no margin deposit in 2015/16.In 2016/17 the ratio of Call deposit
increase rapidly by 0.97% to the total deposit and continues to increase to 1.09% in
2017/18 . Again it increase to 1.33% in 2018/19 in the ratio of total deposit .This shows
that margin deposit has been continuously increase in ratio to the total deposit other
than other deposit.
Fixed deposit has the lowest ratio in the 2014/15 but it has been in increasing
trend over and saving has been decreasing over some year.Likewise, current
deposit and other deposit showed fluctuate trend all over the yearrs.
Saving deposit showed the increasing trend till 2015/16 and has been drastically
decreased from 2017/18 to 2018/19.
Call deposits was increased in the intial phase but has been continusoly decreasing
from 2016/17 to 2018/19.
Both current deposit and margin and other deposit has been drastically
fluctuating over the year from 2014/15 to 2018/19.
Total deposit all over the last five year it also shows the positive balance and has
been increasing upward. It shows the postive sign of economic growth.
Fixed deposit has showes higher value amount then other deposit all over the
fiscal year from 2014-15.
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CHAPTER 3
From this study, some points about the saving and deposit aspect of
Sanima Bank Limited has to come to ligh. They are listed below :
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Saving deposit showed an fluctuating balance from 2014/15 to 2018/19,
the initial amount in current deposit is Rs 12,452,252,000and till the end it
reaches Rs30,977,444,000.
Call deposit showed an fluctuating balance from 2014/15 to 2018/19,
the initial amount in current deposit is Rs 17,882,471,000 and till the end
it reaches Rs7,747,172,000.
Margin and other deposit showed an fluctuating balance from 2014/15
to 2018/19, the initial amount in current deposit is Rs 137,351,000 and till
the end it reaches Rs1,195,491,000.
By the analysis of the saving and deposit of Sanima Bank Limited it can
be concluded that the bank is able to utilize its deposit to a greater
extent.
The Bank’s overall performance looks effective in profitability and
towards customer satisfaction. The bank may seem to be able to attract
more customer in future.
Conclusion
Sanima bank was established with a mission to provide banking and
financial solutions in a simplified way with customer focus while adding
value to its stakeholders’ interests. This Bank is committed to provide one
window financial solutions to various customer segments and to achieve a
healthy level of growth in profitability, consistent with the bank's risk
appetite. The Bank has displayed dedication towards maintaining the
highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. Consequently, Sanima Bank is
perceived as a strong and reliable player in the banking industry. The
Bank has 79 full-fledged branches and 1 extension counter spread across
the geography of Nepal and has been providing charge fee ATM service all
over Nepal from its 736 ATM Machines installed all over Nepal and also
has been actively exploring alternative channels and also expects to add
more branches in the coming days.
The total Deposit of Sanima Bank Limited Shows decreasing balance in year
2014/15. But after the year by year till 2018/19 it shows the management has
practiced all the available means and exploited its resources fully in the last year
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to raise its total deposit which is the most important function of any commercial
bank. The bank is also making great efforts for the mobilization of deposits.
But the overall view of the bank’s Profit and Loss Account of the past five years
shows that the net profit has declined heavily from Rs.316,542,342,000 in
2012/13 to Rs. 251,236,970,000 in 2013/14. But the net profit has increased to
Rs.275,504,670,000 in 2014/15. This decline in net profit was in increasing
trend with Rs. 291,448,356,000 balance in year 2015/16 and
At last, I hope the Sanima Bank Limited will further improve, will be able to make
larger collections, invest them in profitable sectors and help in contributing to
economic development of the country and provide better services to its customers
in future .
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https://www.investopedia.com/terms/b/bank.asp
https://www.investopedia.com/terms/d/deposit.asp
https://www.sanimabank.com/interest-rate
http://bossnepal.com/sanima-bank-limited
https://www.sanimabank.com/reports/annual-report
https://www.ratojob.com/types-of-deposit-and-deposit-mobilization
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