DEPOSIT ANALYSIS OF

KUMARI BANK LTD.

A Project Work Report

Submitted by

Dipendra Khadka

Pinnacle college

T.U. Reg. No.: 7-2-455-17-2019

Symbol No:704550009

Submitted to

The Faculty of Management

Tribhuvan University

Kathmandu

In partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Kathmandu
July, 2024

i
DECLARATION

I hereby declare that the project work the entitled “Deposit analysis of Kumari
Bank Ltd.’’ submitted to the faculty of management, Tribhuvan University,
Kathmandu is an original piece of Work under the supervision Nirmal Tiwari
, Faculty coordinator of pinnacle college ,and is submitted in 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.

.…………………….

Dipendra Khadka

T.U. Reg. No. 7-2-455-17-2019

Symbol No. :704550009

ii
 SUPERVISOR’S RECOMMENDATIONS

This is to certify that Mr. Dipendra Khadka has prepared the project work report
entitled ‘’Deposit analysis of Bank Ltd.’’ under my supervision and guidance as
per the procedure and format requirements, 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.

Nirmal Tiwari

.....................................
Project Work Supervisor
Pinnace college

Date:

iii
 ENDORSEMENT

We hereby endorse the project work report entitled "Deposit analysis of Kumari
Bank Ltd" submitted by Mr. Dipendra khadka, pinnacle college partial
fulfillment of the requirement for award of the Degree of Bachelor of Business
Studies (BBS) for external evaluation.

...........................
Dr. Rishi Tiwari
Research Department
Campus chief
Pinnacle College
Date:

iv
 ACKNOWLEDGEMENT

I would like to express my deep gratitude to Pinnacle college for allowing to carry
out this project work in partial fulfillment of the requirements for Bachelor of
Business Studies (BBS).

I am extremely grateful and indebted my respected project work supervisor Nirmal

Tiwari, Pinnacle college Lagankhel, who in spite of his busy schedule spared his
valuable moments to provide me constructive input, in the way of guidance,
inspiration, support and constant encouragement to complete this project work. I
would like to appreciate him for supervision and inspirations to improve the quality
of project work.

I wish to express my sincere gratitude to Campus chief, Rishi Tiwari, I would also
like to thanks all the administrative staff of Pinnacle college, Lagankhel.

I am thankful to my family members and all my friends who provided regular

inspiration and continuous contribution for the completion of project work.

Lastly, I hearty beg sorry for my any mistake and assure to take responsibility for all
comments.

Dipendra khadka

T.U. Reg. No: 7-2-455-17-2019

v
 TABLE OF CONTENTS
Title Page i

Declaration ii

Supervisor’s Recommendation iii

Endorsement iv

Acknowledgements v

Table of contents vi

List of table viii

List of figure ix

Abbreviations x

CHAPTER-I
1. INTRODUCTION………………………………………………………….1
1.1 Background of the Study 1-3
1.2 Profile of organization 4

1.3 Statement of the Problem 5

1.4 Objective of the Study 5
1.5 Rationale of the study 5-6
1.6 Literature Review 6
1.6.1 Conceptual Framework 6-7

1.6.2 Forms of deposit 7

1.6.3 Review of previous studies 7-9

1.7 Research methods 9

1.7.1 Research Design 9

1.7.2 Population and sample 10

1.7.2 Data collection 10

1.7.3 Data analysis tools 10-11

1.8 Research gap 11-12

vi
1.9 Limitation of the study 12

CHAPTER II: RESULT AND ANALYSIS…………………………………..….13

2.1 Analysis of data 13

2.2 Major Findings 13

CHAPTER-III

SUMMARY AND CONCLUSION 18

3.1 Summary 18
3.2 Conclusion 18-19

BIBLIOGRAPHY

vii
 LIST OF TABLES
Table 2.1.1 Deposit to assets ratio……………….………………………………...13

Table 2.1.2 Long term debt to Total assets ratio…………………………………14

Table 2.1.3 Cash to total assets ratio……………….………..………………….…15

Table 2.1.4 Current to total assets ratio…………………………………………...16

viii
LIST OF FIGURES

Figures 2.1.1 Deposit to assets ratio…………….………………………………..14

Figures 2.1.2 Long term debt to Total assets ratio………...……………………15

Figures 2.1.3 Cash to total assets ratio…….…...………………………………..16

Figures 2.1.4 Current to total assets ratio..……………………………………..17

ix
ABBREVIATIONS

A.D : Anno Domini

ACH : Automated Clearing House

ATM : Automated Teller Machine

B. S. : Bikram Sambat

Co. : Company

DPS : Dividend Per Share

EPS : Earning Per Share

F/Y : Fiscal Year

FD : Fixed Deposit

FVIFA : Future Value Interest Factor of Annuity

HBL : Himalayan Bank Limited

LA : Loan & Advance

LTD : Limited

MM : Merton Miller

MPS : Market Price Share

KBL : Kumari Bank Limited

NEPSE : Nepal Stock Exchange

NII : Net Interest Income

NRB : Nepal Rastra Bank

SCBNL : Standard Chartered Bank Nepal Limited

WACC : Weighted Average Cost of Capital

x
CHAPTER 1 INTRODUCTION
1.1 Background of the study

Deposit is a sum of money in a bank account or other financial institute transfer one
party to another collect this money for something return back. Without deposit
commercial bank will not possible. Deposit is main source of bank. According to
oxford dictionary “Deposit is a sum of money that is given as the first part of a larger
payment and Analysis is the detailed study of examination of something in order to
understand more about it”. Thus Deposit Analysis is the analysis or examination of
deposit collected in the bank. Deposit are the collected amount from general people,
which when demanded by the person should be returned by the bank. But it demands
on the type of deposit invested by the people according to their wish. Growth of
deposit is the most essential part for the proper existence of the commercial bank. So,
the efficiency of the bank depends on its ability to attract the amount deposit. The
deposit creating power of commercial banks forces to ratio the assets along with the
liabilities of the bank balance sheet. Deposit analysis is the study about whole
reserved money of the selected bank.
Banking in its modern sense evolved in the 14th Prime in the rich cities of
Renaissance Italy but in many ways was a continuation of ideas and concepts of credit
and lending that had its roots in the ancient world. In the history of banking, a number
of banking dynasties have played a central role over many centuries. Banks act as
payment agents by conducting checking or current accounts for customers, paying
cheque drawn by customers on the bank, and collecting cheque funded to customers'
current accounts. Banks also enable customer payments via other payment methods
such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, and
automated teller machine (ATM) Sapkota, (2022).

Banks borrow money by accepting funds funded on current accounts, by accepting

term funds, and by issuing debt securities such as banknotes and bonds. Banks lend
money by making advances to customers on current accounts, by making installment
loans, and by investing in marketable debt securities and other forms of money

xi
lending. Banks provide different payment services, and a bank account is considered
indispensable by most businesses and individuals. Non-banks that provide payment
services such as remittance companies are normally not considered as an adequate
substitute for a bank account.

Banks can create new money when they make a loan. New loans throughout the
banking system generate new funds elsewhere in the system. The money supply is
usually increased by the act of lending, and reduced when loans are repaid faster than
new ones are generated. Bank plays an important role in the economic development of
a country. Banks are the most important financial institution for collecting and
utilizing resources for the economic development of the country. The economic
conditions are based on the financial institution and development of the country
depends on the active participation of the bank in different developmental activities in
the country. If all the banks increase their lending together, then they can expect new
funds to return to them and the amount of money in the economy will increase.
Excessive or risky lending can cause borrowers to default. The banks should become
more cautious while making investments so it can maximize its profit by minimizing
risks Basnet, (2020).

Introduction Background Capital formation is one of the important factors leads to

increase in the size of national output income and employment, solving the problem
of inflation and balance of payment and foreign debts. Domestic capital formation
helps in making a country self-sustainable. According to classical economist, one of
the main factors which helped capital formation was the accumulation of capital.
Profit made by the business community constituted the major part of savings the
community and the saved has assumed to be invested.

They thought capital formation indeed plays a deceive role in determining the level
and growth of national income and economic development. In the view of many
economists, capital occupies the central and strategies position in the process of
economic development in an underdeveloped economy lies in a rapid expansion of the
rate of its capital investment so that it attains a rate of growth of output which exceeds
the rate of growth of population by the significant margin. Only with such rate of
capital investment will the living standard begin to improve in developing country.

xii
In developing countries, the rate of saving is quite low and existing institutions are
half successful in mobilizing such savings as most people have incomes so low that
vertically all current income must be spent in maintain a subsistence level of
consumption. Investment is an essence of the national economy. Banking system is
the integral part of investment system in productive sector. It involves the sacrifice of
current rupees for future rupees. It is concerned with the allocation of present fund for
later reward, which is uncertain.

When people fund money in a saving account in bank for example; the bank must
invest the money in new factories and equipment to increase their production. In
addition, borrowing from the banks most issues stocks and bonds that they sell to
investors to raise capital needed for business expansion. Government also issues
bonds to obtain funds to invest in such project such as the construction of dams, roads
and schools. All such investments by individual’s business and government involves a
presto sacrifice of income to get an expected future benefits. As a result, investment
raises a nation’s standard of living.

In other words, they are intermediate between lender and receiver of fund they
mobilize the funder fund. After the liberalization of the financial sector, financial
sector has made a hall mark progress both in terms of the number of financial
institutions and beneficiaries of financial services. Development by its means is not
possible within a short period and it takes a long time 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. Capital in fact,
plays the leading role for the economic development of a country. But in Nepal, there
is shortage of capital. There are various sources of accumulating capital internal and
external 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 fund is dependable and permanent sources of capital accumulation. The

xiii
need of fund mobilization for economic development of a country is no more to
question. But we are facing an acute problem of resources mobilization.

1.2 Profile of the organization

Kumari Bank Limited is a prominent commercial bank based in Nepal, known for its
robust presence in the country's financial sector. Established on March 21, 2001,
under the Bank and Financial Institution Act 2063, Kumari Bank has steadily grown
to become one of Nepal's leading banks, offering a wide range of banking and
financial services. Kumari Bank started its journey with a vision to provide modern
banking services with a focus on customer satisfaction and technological innovation.
Over the years, the bank has expanded its network across various regions of Nepal,
catering to both individual and corporate clients. It operates through a network of
branches and ATMs, ensuring convenient access to banking services for its
customers.

Kumari Bank Limited offers a comprehensive suite of banking products and services,
including:

 Retail Banking: Savings accounts, current accounts, fixed deposits, and

various loan products tailored to meet the needs of individual customers.
 Corporate Banking: Services designed for businesses, including corporate
loans, trade finance, treasury services, and customized financial solutions.
 Remittance Services: Facilitating domestic and international money transfers
to cater to the needs of migrant workers and global businesses.
 Electronic Banking: Providing internet banking, mobile banking, and other
digital channels to enhance customer convenience and accessibility.

The bank operates under a strong governance framework, ensuring transparency,

accountability, and compliance with regulatory requirements. It adheres to high
ethical standards and is committed to contributing positively to the socio-economic
development of Nepal. Kumari Bank has embraced technological advancements in
banking, continually upgrading its systems and introducing innovative digital
solutions. This includes robust online banking platforms, mobile banking apps, and
other digital channels aimed at enhancing customer experience and operational
efficiency.

Beyond its business operations, Kumari Bank actively engages in CSR activities
focused on education, healthcare, environmental sustainability, and community
development. It supports various social initiatives and partners with organizations to
make a meaningful impact on society.

xiv
Kumari Bank has been recognized within the financial industry for its excellence in
service delivery, corporate governance, and innovation. These accolades underscore
its commitment to maintaining high standards and leadership in the banking sector.

Looking ahead, Kumari Bank aims to further expand its market presence, strengthen
customer relationships, and leverage technology to offer cutting-edge financial
solutions. It remains dedicated to serving the evolving needs of its diverse customer
base and contributing to Nepal's economic growth.

In conclusion, Kumari Bank Limited stands as a testament to Nepal's growing

financial sector, combining traditional banking principles with modern innovations to
meet the dynamic needs of its customers and stakeholders effectively.

1.3 Problem statement

Although, the number of financial institutions including Commercial Banks have
increased rapidly; with the introduction of liberalized economic policy after 1990's.
The coverage of Commercial Banks has not spread throughout the nation uniformly.
Most of them centered in limited and facilitated urban areas like Kathmandu Valley
and other major cities. The increase in the number of Commercial Banks causes the
increase of its share in the whole financial system and consequently the contribution
in the economic development of the country through mobilization of funds and
utilization of its funds to increase the aggregate demand in the economy.

Capital formation is one of the important factors leads to increase in the size of
national output income and employment, solving the problem of inflation and balance
of payment and foreign debts. Domestic capital formation helps in making a country
self-sustainable. According to classical economist, one of the main factors which
helped capital formation was the accumulation of capital. Profit made by the business
community constituted the major part of savings the community and the saved has
assumed to be invested. In the view of many economists, capital occupies the central
and strategies position in the process of economic development in an underdeveloped
economy lies in a rapid expansion of the rate of its capital investment so that it attains
a rate of growth of output which exceeds the rate of growth of population by the
significant margin. Only with such rate of capital investment will the living standard
begin to improve in developing country.

1.4 Objectives of the study

• To find out liquidity problem of Kumari bank.

• To find out status deposit of Kumari bank.

xv
 • To find out status deposit withdraws of Kumari bank.

1.5 Rationale of the study

Deposit is the source of bank. Without deposit bank is not possible because Bank’s
first priority collect the money and return. The depositor lets the bank safe keep their
money for some time, in return for which the bank pays the depositor interest
payment. The bank uses this money to invest or provide loans to its borrowers and, in
return, receive interest payment from them. It is help to increase capital of bank,
increase investment, portfolio, and status of bank. When we search to deposit analysis
and find out idea of how to stored money safely in bank.

1.6 Literature review

Review of literature is a summary and analysis of knowledge about a particular
topic or area of inquiry. It is the process of reviewing research studies or other
relevant propositions in the area of the study so that the past studies, their
conclusion and deficiencies may be known and further research can be conducted.
It analyses the previous studies for knowing about the data provided in detail
which further helps to develop a theoretical framework

1.6.1 Conceptual Frame work

Deposit Analysis

Withdrawl

Liquidity

The given figure explains the analytical framework (conceptual/ Theoretical) of

the study in the title “Deposit analysis”. The framework presents the applicable
theories of deposit analysis & investment. In the banking system theories of Nepal
guiding. In general deposit analysis refers to the collect the money and whenever
people want to withdraw money then the bank give the saving money. If bank has
more than money or less than money is called liquidity. A bank keeps a volume of

xvi
amount in liquid funds. Liquid funds help banks to meet liquidity requirement.
The funds have so many responsibilities in banking activities liquid funds
includes, cash in hand, balance with NRB, balance with other domestic banks and
call funds.

Deposits are financial amounts left with a financial institution. This is where
depository institution gets the majority of their funding. Demand deposit, saving
deposit and fixed or time deposit are the types of deposit.

1.6.2 Forms of deposits

In Nepal, deposits can come in different forms:

1. Saving Deposits: These are accounts where people save money for future
needs. They usually earn interest and are accessible for withdrawals.
2. Fixed Deposits: Also known as term deposits, these involve putting money
aside for a specific period, often with higher interest rates than savings
accounts. The money cannot be withdrawn before the term ends without
penalties.
3. Recurring Deposits: These accounts allow people to save regularly by
depositing a fixed amount each month. They earn interest and are a good way
to build savings over time.
4. Current Deposits: These are typically used by businesses and allow for
frequent withdrawals and deposits. They usually do not earn interest.
5. Foreign Currency Deposits: Accounts where money is held in foreign
currencies, useful for those dealing in international transactions or
safeguarding against currency fluctuations.

Each type of deposit has its own benefits and considerations depending on the
individual's or business's financial goals and needs.

1.6.3 Review of previous studies

Sapkota (2021). Banking system in Nepal is relatively new compared to countries

around the globe. The first bank established in Nepal was Nepal Bank Limited (NBL)
in 1937 A.D. However, for nineteen years after the establishment of the first
commercial bank NBL there was no central bank in the country. In 1956, the central
bank Nepal Rastra Bank was established and hence there was a central authority of
the financial sector. In 1966 A.D., Government of Nepal established Rastriya Banijya
Bank, the largest commercial bank in Nepal.

Mohan (2019). Even though collecting fund is an essential activity of banks but
proper management of those funds is also equally important as profitability of bank

xvii
depends on proper mobilization of fund which is an integral part of banking activity.
Mobilization of savings through intensive fund collection has been regarded as the
major task of banking today. Mobilization of funds for a bank is as essential as
oxygen for human being. In the post liberalization scenario, the number of players in
banking industry has increased considerably which developed competition in bank
marketing. ‘The survival of the fittest’ has made applicable for the bank. To enhance
profitability, banks take steps to minimize the interest paid expenditure and so banks
are forced to mobilize low cost funds. In the present context bank’s efficiency is
measured based on the fund mix and on the quantum of low cost funds in the mix.
The initiation of the financial sector liberalization policy by Nepal Rastra Bank a
board of joint venture banks entered with the view to accelerate the pace of
development of nation. At present there are many joint venture banks, which are
running successfully in a competitive environment. His majesty government
deliberates policy of allowing foreign joint venture banks to operate in Nepal
basically targeted to encourage local tradition commercial bank to enhance their
capacity through competitor’s efficiencies mechanization modernization and prompt
customer service

According to Miklinski (2021), The current norms governing deposit banking

activities are the result of a centuries-old evolution of the construct of bank
account, the legal nature of bank account, the subject of deposit, and banking
institutions themselves. Different civilizations and cultures have contributed to the
shaping of deposit activities. The aim of the article is to present and discuss, from
a historical-legal point of view, the origin and unfolding of deposit banking
activities over time: from antiquity, through the Middle Ages, the early modern
period, to modern times. The deliberations are set against a broader financial and
legal backdrop to include the transformation of economic power that accompanies
deposit activities, expressed in the form of: commodity money, bullion, paper
money, and funds. The picture of evolution is completed by the emerging
institutions of supervision, capital requirements or deposit guarantee schemes,
constituting a series of normative solutions adopted due to the need to provide a
framework for deposit activities that would prioritize the security of the depositor.
The study, due to its historical-legal character within the scope of detailed

xviii
sciences, does not aim at applying the conclusions in legal practice or in the
theoretical-legal dimension. It serves to collect and show the already acquired
historical-legal knowledge about the foundations of contemporary normative
solutions of bank deposit activities. In order to achieve the research goal, the study
uses the research method of critical literature review. Thus, a reference was made
to scientific historical-legal and historical studies, from the point of view of a
selected research problem, which has not been elaborated in a cross-sectional
manner so far. In nepal has Bank and financial institution Act 2073 include all the
regulation.

1.7 Research Methods

Research methodology describes the methods and process applied in the entire subject
of the study. This chapter refers to the research process from the theoretical underpin
to the collection and analysis of the data. The process used to collect information and
data for the purpose of making business decisions. The methodology may include
publication research, interviews, surveys and other research techniques, and could
include both present and historical information.

Since the object of research, particularly the applied research, it to arrive at a solution
for a given problem, the available data and the unknown aspects of the problem have
to be related to each other to make a solution possible.

1.7.1 Research Design

Research design indicates a plan of action to be carried out in connection with

proposed research work. The research design is descriptive and core prescriptive in
this study because the historical secondary data have been mainly deployed for
analysis. “A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the research purpose
with economy in procedure” Kothari, (1985).
Basically, the proposed study is mainly based on two types of research design namely
descriptive and analytical. Descriptive research design describes the general attitude
of the Nepalese funders, business environment, problems regarding the funds
mobilization aspects etc. Similarly, the analytical research design makes a thorough

xix
analysis of gathered facts and information and critically evaluates it as well this
research will use descriptive research design. I will conduct using development research
to define research problem by formulating different hypothesis.

1.7.2 Population and Sample

The number of commercial bank has been increasing over the years. Prior to 1995
there were less than 10 banks. However, after 1995 the rate of increase in commercial
banks has increased tremendously. As there are numerous banks which can be taken
as population and as it is self-explanatory that the study is based on only field work, a
single unit Kumari bank will be selected for the study purpose

1.7.3 Data collection

There are two types of data i.e primary and secondary data. Among them, Secondary
data have been used for this study. Secondary data has been employed in order to
analyze the relationship between fund and its explanatory variables. The study will
use secondary data. The various data required for the study will be collected from the
concerned annual report, economic indicators and official records and other.

1.7.4 Data Analysis tools

The report will mostly rely secondary data. As for secondary data, I will consult the
magazines and bulletins, financial statement and annual financial report of Prime
Bank, Banking & Financial statistics of Nepal Rastra Bank. The collected data will be
re-arranged and tabulated where necessary to facilitate the purpose of the study. The
conclusions of the study will be derived and suitable recommendation will be
suggested at last.

1.7.5 Technique of Analysis:

Various Financial and Statistical tools have been used to analyze the data of this
study.

1.Financial Tools

xx
Financial tools are those which help to study the financial position of the firms. The
financial tools used in this are as follows:

a) Total deposit to total assets ratio

Total deposit to total assets ratio is a financial metric used to evaluate the proportion of a
financial institution's assets that are funded by customer deposits. It is calculated by dividing
the total deposits held by the institution by its total assets. This ratio provides insight into
the extent to which a bank or financial institution relies on customer deposits to finance its
operations and investments.

Total debt
Total deposit to total assets ratio =
Total Assets

b) Long-term debt to total assets ratio

Long-term debt to total assets ratio is a financial metric that evaluates the proportion
of a company's assets financed through long-term debt. It is calculated by dividing the
total long-term debt of the company by its total assets. This ratio provides insights
into the extent to which a company relies on long-term borrowing to finance its
operations and investments

Total Long−term debt

Long-term debt to total assets ratio=
T otal assets

c) Total cash to total assets ratio

Total cash to total assets ratio is a financial metric that assesses the proportion of a
company's total assets that are held in the form of cash and cash equivalents. It is
calculated by dividing the total cash and cash equivalents by the company's total assets.
This ratio provides insights into the liquidity position and financial flexibility of a
company.

Total cash
Total cash to total assets ratio=
total assets

a) Current deposit to total deposit ratio

The current deposit to total deposit ratio is a financial metric used to evaluate
the composition of a bank's deposit base by assessing the proportion of current
deposits relative to total deposits. It is calculated by dividing the amount of
current deposits by the total deposits held by the bank.

xxi
 Current Deposits
Current Deposit to Total Deposit Ratio=
Total Deposits

1.8 Research gap

There is lot of research work done by different researcher on the topic of Deposit
Analysis. Some researcher used very few sample size which may not cover the whole
population and some researcher used normal fiscal period which may not provide the
whole scenario of market. Some researcher uses only statistical tools and technique to
determine the deposit analysis

1.9 Limitations of study

 This study covers only five fiscal years’ historical data of Nabil Bank Limited.
 This study covers limited dimensions of the subject matter
 Only secondary data have been used.

xxii
 CHAPTER-II

DATA ANALYSIS
This chapter deals with the presentation, analysis and interpretation of relevant data of
Kumari Bank Ltd. in order to fulfill the objectives of this study. To obtain best result,
the data have been analyzed according to the research methodology as mentioned in
third chapter. The purpose of this chapter is to introduce the mechanics of data
analysis and interpretation. With the help of this analysis, efforts have been made to
highlight credit management of Prime Bank as well as other cases or problems of
Prime Bank can be visualized. For analysis, different types of analytical methods and
tools such as financial ratio analysis as well as statistical analysis are used.

2.1 Data Presentation and analysis

2.1.1 Deposit to assets ratio

As per NRB, the ratio of total deposits to total assets can vary widely depending on factors
such as the size of the institution, its business model, risk appetite, and prevailing economic
conditions. Banks generally aim to maintain a healthy balance between deposits (liabilities)
and assets to ensure liquidity, profitability, and regulatory compliance.

Table no 2.1 Deposit to assets ratio (in Rs million)

Year Total deposit Total Assets Ratio

2075/76 73201143766 105311485153 69.5%

2076/77 116547033196 145971942062 79.5%

2077/78 145838231009 189782816080 76.85%

2078/79 134576014969 167085705833 80.54%

xxiii
2079/80 122308047903 154572660996 79.13%

Source= Annual report of Kumari Bank Limited

Total deposit to total assets rati o

189782816080

167085705833
Total deposit Total assets total deposit to total asset ratio

154572660996
145971942062

145838231009

134576014969

122308047903
116547033196
105311485153
73201143766

69.50%

79.50%

76.85%

80.54%

79.13%
2 0 7 5 /7 6 2 0 7 6 /7 7 2 0 7 7 /7 8 2 0 7 8 /7 9 2 0 7 9 /8 0

Figure 2.1. Deposit to assets ratio

2.1 table and figure shows that the total deposits to total assets ratio of the company
for 2075/2076 to 2079/80. It shows that the highest ratio is on the year of 2078/79
with the 80.54% and the lowest ratio is at 2075/76 with 69.50%.

2.1.2 Long term debt to Total Assets Ratio

Table no 2.2 Long term debt to Total Assets Ratio in Rs (million)

Year Long term Total assets Debt ratio

borrowing

2075/76 52474152670 105311485153 49.82%

2076/77 56731401207 145971942062 38.86%

2077/78 90415857891 189782816080 47.64%

2078/79 65492866970 167085705833 39.19%

2079/80 68756277483 154572660996 44.46%

xxiv
Source= Annual report of Kumari Bank Limited

debt rati o

189782816080

167085705833
Total assets Borrowing Debt ratio

154572660996
145971942062
105311485153

90415857891

68756277483
65492866970
56731401207
52474152670

49.82%

38.86%

47.64%

39.19%

44.46%
2 0 7 5 /7 6 2 0 7 6 /7 7 2 0 7 7 /7 8 2 0 7 8 /7 9 2 0 7 9 /8 0

Figure 2.1.2 Long term debt to Total Assets Ratio

The table and figure no. 2.1.2 shows the long term debt to Total Assets Ratio. The
debt ratio are 49.82%,38.86%,47.64%,39.19% and 44.46% respectively from year
2075/76 to 2079/80. The highest debt ratio is 49.82% on 2075/76 and lowest debt
ratio is 38.86% on 2076/77 respectively.

2.1.3 Cash to total Assets ratio

Table no 2.1.3 Cash to total Assets ratio in rs (million)

Fiscal year cash Total assets Cash ratio

2075/76 12404404363 105311485153 11.77%

2076/77 14989230123 145971942062 14.23%

2077/78 16066694370 189782816080 8.46%

2078/79 23085203072 167085705833 13.81%

xxv
2079/80 33390281725 154572660996 21.60%

Source= Annual report of Kumari Bank Limited

Figure no 2.3 ratio of cash to total assets

From the table and figure no. 2.3 the ratio of cash to total assets for the fiscal year
2075/2076 is 11.77%. The ratio of cash to total assets for the fiscal year
2076/77,2077/78,2078/79 and 2079/80 are 14.23%,8.43%,13.81% and 21.60%
respectively. In the fiscal year2075/76 and 2076/77 the ratio of cash to total assets is
in increasing trend. After that it is decreased in the fiscal year 2077/78. After that in
the fiscal year 2078/79 and 2079/80 it is in increasing trend.

Current deposit to deposit ratio

Table no 2.4 Current deposit to deposit ratio (in million)

year Current Total deposit ratio

deposit
2075/76 6088 73201.143766 8.31%

2076/77 16141 116547.033196 13.84%

2077/78 14807 145838.231009 10.15%

2078/79 20586 134576.014969 15.29%

2079/80 30220 122308.047903 24.70%

Source= Annual report of Kumari Bank Limited

xxvi
 c u r r en t d ep o si t t o t o t a l d ep o si t r a ti o

145838.231009
Current deposit total deposit ratio

134576.014969

122308.047903
116547.033196
73201.143766

30220
20586
16141

14807
6088

13.84%

10.15%

15.29%

24.70%
8.31%

2 0 7 5 /7 6 2 0 7 6 /7 7 2 0 7 7 /7 8 2 0 7 8 /7 9 2 0 7 9 /8 0

Figure no. 2.4 Current deposit to deposit ratio

In the above table and figure no. 2.1.4 shows the ratio of current deposit to total
deposit of Kumari Bank limited for FY 2075/76 to 2079/80 respectively. The ratio of
the bank is 8.13% in the 2075/76 but rise back to 24.70% for the year 2079/80.

2.2 Findings
The following major findings are obtained from the study of analysis of secondary
data of KBL:

i. The total deposit to total assets ratio has been decreased by 7.41% i.e. 80.54% to
79.13% as comparison to 2079/80 & 2078/79.
ii. In context of long term debt to total assets, the ratio is slightly increases from
39.19% of 2078/79 to 44.16% of 2079/80.
iii. All of the calculated ratio has increase and decrease flow rate in every year due to
change in price and stock in economy.
iv. While talking about cash to total assets ratio have a positive ratio from year
2078/79to 2079/80.
v. In current deposit to deposit ratio excluding the year 2077/78 others year have
positive ratio, which is good indicator.

xxvii
 CHAPTER III
SUMMARY &CONCLUSION
This study is enquiry upon the deposit analysis of KBL. This chapter is divided into
two parts: summary and conclusion. In summary part revision or summary of all parts
are made and conclusion part, the results are summed up.

3.1 Summary
The research work should reach the conclusion where the queries specified in
statement of problem are satisfied. The analysis of financial statement of KBL for the
period of 5 years from 2075/76 to 2079/80 is done by using various accounting and
statistical tools. To conduct the research work, the researcher consulted mainly
secondary sources such as documents published by concerned bank. Before
presenting and analyzing the data, the researcher review related books, journals,
annual reports of the bank which help to construct conceptual framework and to
analyze and interpret data.

On the basis of the data analysis and presentation, the major findings related to the
research were extracted. On the basis of the findings, the researchers have reached the
conclusion of the research work.

3.2 Conclusion

In conclusion, the deposit analysis of Kumari Bank Limited provides valuable insights
into its financial health and market position. The bank's ability to attract and retain
deposits is crucial for its liquidity and lending activities, which are fundamental to its
growth and stability in the financial sector. Through a detailed examination of deposit
trends, composition, and growth rates, it becomes evident that Kumari Bank Limited
has effectively managed to expand its deposit base while maintaining prudent risk
management practices. However, ongoing challenges such as competitive pressures,
regulatory changes, and economic fluctuations underscore the need for continued
vigilance and strategic adaptation. Overall, the deposit analysis highlights Kumari
Bank Limited's strong performance in mobilizing funds and underscores its position
as a key player in the banking industry, poised for sustained growth in the future.

In deeper exploration, the deposit analysis of Kumari Bank Limited reveals a robust
strategy in mobilizing and managing deposits, reflecting its resilience and strategic
foresight in the banking landscape. The bank's diversified portfolio of deposit
products, coupled with effective customer engagement initiatives, has contributed
significantly to its deposit growth trajectory. Moreover, the analysis underscores
Kumari Bank's commitment to maintaining sound financial health through prudent
liquidity management and adherence to regulatory requirements.

Furthermore, the examination of deposit trends highlights Kumari Bank's agility in

responding to market dynamics, thereby strengthening its competitive edge and
enhancing customer trust. Despite challenges such as interest rate fluctuations and
xxviii
evolving customer preferences, Kumari Bank Limited has demonstrated adaptability
and innovation in its deposit mobilization strategies.

Looking ahead, the insights gleaned from this analysis suggest promising prospects
for Kumari Bank Limited, underpinned by its solid foundation in deposit management
and strategic growth initiatives. As the banking sector continues to evolve, Kumari
Bank's proactive approach positions it favorably to navigate uncertainties and
capitalize on emerging opportunities, reinforcing its role as a pivotal player in the
financial market.

BIBLIOGRAPHY

 Basnet,P.(2007) Fund Mobilization of Commercial Banks in Nepal.

Kathmandu: An unpublished dissertation submitted to TU. Kirtipur,

xxix
 Kathmandu

 Ibrahim, F. (2012) Comparative financial performance of NBBL & HBL

Kathmandu: An unpublished dissertation submitted to TU. Kirtipur,
Kathmandu

 Kisha (2010).A comparative study of profitability. An Unpublished

dissertation submitted to TU. Kritipur, Kathmandu

 Kothari, P. (1985) Onward Industry. New York: Harper and Row University Press.
 Mohan, J. (2009) Dynamics of business in Nepal. Kathmandu : M.K Publishers
 Paudel, A. (2010) Management Ideas in Action New Delhi: Think Inc.

 Sapkota, A. (2013) Financial Analysis of Commercial Banks in Nepal.

Katmandu: An unpublished dissertation submitted to TU. Kirtipur, Kathmandu

 Sapkota, S. (2012) Management: Theory and Practice.N. Y: McGraw Hill

 Timilsina,A (2014). A comparative study of Fund mobilization of selected

commercial bank in Nepal. An Unpublished dissertation submitted to TU.
Kritipur, Kathmandu

 Annual Report of Kumari Bank (2075/76 -2079/80)

 Website:www.kumaribank.com.np

xxx
31