ABBREVIATION

R.B

Rastriya Banijya Bank

U.S

United States

A.D

Anno Domini

B.S

Bikram Sambat

L.C

letter of Credit

Rs

Rupees

Percentage

T.V

Total Value

T.D. Total deposit

C.D. Current deposit
S.D. Saving deposit
F.D. Fixed deposit
I.I. Interest income

LIST OF TABLES
TABLE
PAGE NO

TOPIC

Table 1
Bank

Deposit position of Rastriya Banijya

Table 2

Credit position of Rastriya Banijya Bank

Table 3
position

Deposit mobilization and utilization

TABLE

OF

Recommendation
Acknowledgement
Abbreviation
List of tables

Contents
Chapter One

CONTENTS

1. INTRODUCTION
BACKGROUND
INTRODUCTION TO Deposit

Introduction to bank
A. Meaning
B. Importance
C. History
D. Development
E. Types
F. Functions
1.4 Statements of the problems
1.5 Need of the study
1.6 Objective of the study
1.7 Statement of the problems
1.8 Limitation of the study
1.9 Area of the study
1.10 Research Methodology
1.11 Research Design
1.12 Nature and sources of data
1.13 Data collection and procedures
1.14 Data Analysis
1.15 Statistical tools and organization of the
study

Chapter Two
2. PRESENTATION AND ANALYSIS
2.1
2.2
2.3
2.4

Deposit position of Rastriya Banijya Bank

Share Deposit of Rastriya Banijya Bank
Credit positioning of Rastriya Banijya Bank
Deposition Mobilization and Utilization position

Chapter Three
3. SUMMARY AND CONCLUSION

Summary
Conclusion
Recommendation
BIBLIOGRAPHY
APPENDIX

CHAPTER 1
Background
Commercial Banks are the heart of our economic system. they
hold the deposit of million of person, government and
business units. They make funds available through their
lending and investing activities to borrower, individual
,business firms and government . Thus , their task is to
provide a collecting point for saving of relatively small
average amount from a large number of individual sources
and invest them into a productivity and needed sector ,
so as to develop the nation In the developing country like
Nepal there is always lack of financial resources not
only because of its real absence but because of available
resources are not only properly mobilized and are not
fully utilized for the productive purpose . In this course of
commercial bank are considered to be vital financial
institution rather than banking institution . Rastriya Banijya
Bank is playing a vital role in mobilizing the available
resource and utilizing them into the productive sector. , so
as to enlarge capital market and to attain economic
development of the country.
For the fulfillment of the growing need of banking
services in the country . Rastriya Banijya Bank is one of
the oldest and second commercial bank in Nepal which
was established in 1996 , under Rastriya Banijya Bank Act
1965 . At the time of establishment , the authorized
capital of this bank was 1 crore , having 100%
government share .

The main objectives of the bank are to provide facilities

to the country people . the function of the bank is not to
collect the deposits from the people but also to invest it.
They should pay attention in investing small scattered
saving into one bulk. It offers loans to commerce , industry
, agriculture and so on . Bank lends from the deposit,
which it receives . since , it has been said that the bank
are not lending their own money but furnish advances
from the deposit they receive from the customer . The
role of bank is to function as financial intermediaries , to
develop the country and give loan . facilities to the people
of the country to work well as to develop its own
standard . To collect deposit and credit disbursement and
social , banking , industrial, financial , banking services in
remote areas etc. Are important end function.

1.2 Introduction to deposit

Deposits are the main source of fund for commercial banks.
These deposits are collected for different time frame. In
others words , are the main source of raising capital .
These deposits are received in different form and account.
simply , deposits means the amount stored in any banking
or financial institute.
A person or a group of person or a unit save the excess
amount of money that are left meeting the human
wants , for the future needs , instead of keeping excess
fund in hand use they use to store that amount in the
bank or any other institute called deposit .

Introduction to Bank
A. Meaning
In general term bank is an institution , which deals in
term of money and credit . A bank accepts deposit from

the public and provides loan by creating credit. A bank

can easily be different from other financial institutions by
the means of credit creation . A bank can create through
accepted deposit but a financial institute never can .
As per Kent A bank is an organization whose principle
operations are concerned with the accumulation of the
temporarily idle money of the general public for the
purpose of advancing to other for expenditure .
As per U.S Law any institution offering deposits subject to
withdrawal demand and mistake loans or business natural
is bank.
Finally. a bank is a financial institute that offer widest
range of financial services especially credit , saving and
payment service and performs the widest range of
financial function of any business firm in the economy .
since , a bank renders a wide range of services to the
people in various walks of life ; it becomes an essential
part of modern society .

B.

Importance

In the current age, the importance of the bank and its

money business is very high, the industrial, political and
economics power of any country can easily be forecasted
by the means of banking organization of that country .
The importance of bank can be forecasted in the following
roles:

a) The intermediation role

the prime role of the bank is to transform saving received
primarily from households into credit for business firm and
other to make investment in new ventures:

b) The payment role

Banks plays another equally important role by carrying out
payments for goods and services on behalf of their
customer such as issuing and clearing cheques , writing
funds, etc .

C) The guarantor role

A bank also acts as a guarantor for the customer to
obtain credit or other services elsewhere in the financial
market place .

d) The agency role

A bank also acts on behalf of customer to manage and
protect their property or issue and redeem a customers
securities .

e)The policy role

A banks serves as a conduit government policy in
attempting to regulate the growth of the economy and
pursue social goals .

C. HISTORY
We also know that it is a scientist business age. Monetary
transaction and financial institute conduct almost all
business and another economics activity like banks
operates such transactions . Bank are useful to all the
people in these days . But, in ancient period banks seemed
unnatural. Although goldsmiths ,merchants , etc , played a

great role on development of bank, banking history

started since 12th century . The first bank of the world is
bank of Venice which was established in Venice , Italy in
1157 A.D . Subsequently , bank of Barcelona and bank of
Geneva were established respectively in 1401 and 1407 .
Due to traditional society, these banks could not run well.
Bank of Amsterdam set up in 1609 became popular. But, the
establishment of bank of England in late 17 th century
made proper path on history of bank. The history of
modern banking in Nepal is made by the set up of
Nepal Bank limited in 1994 B.S The pioneer bank of
modern banking in Nepal .

D DEVELOPMENT
Goldsmith , merchants and money lenders have great role
to develop the banking business. In ancient time, people
used to deposit billion , money and ornaments for the
purpose of safeguard to them . They used to provide
receipts to the depositors and take some changes .
Observation made by Geoffrey Crowther gives us the
detail about amount of loan by changing interest as they
found that on average the withdrawal of money were
much less than the deposit with them . As a result ,
Goldsmith, Merchant, Money lenders became bankers who
started performing the two keys functions of modern
banking i.e. accepting deposit and advancing loans, After
the set up bank of England in 1964 A.D. The trend of modern
banking was well established . Our banking system has
been developed after the establishment of Nepal Bank
Limited in 1994 B.S. afterwards, Nepal Rastriya bank,
Rastriya Banijya Bank played a great role to develop
banking more rapidly in Nepal . At present , we have one
central bank, thirteen commercial banks, five rural
development banks . These numbers shows that banking
system is growing rapidly in our country . At present, our

commercial banks are operated under commercial bank

act -2031 .

E. TYPES
Although there are different types of banks emerged in
banking industry concentrating on special sector, we have
the following types of bank in our country :
1.
2.
3.
4.
5.

Central bank
Commercial bank
Development bank
Rural development bank
Postal saving bank

F FUNCTIONS OF COMMERCIAL BANK

We know that the key function of any commercial bank is
square i.e. Accepting deposit and advancing loans. Besides
these two ranges of function there are also many other
function and among them the main functions are listed
below :
1. Agency service
2. Credit creation
3. Issue letter of credit (L.C)
4. Purchase and sale of foreign exchange
5. Safe keeping of valuables
6. Financial advising
7. Offers security brokerage service

Among the above - mentioned functions, accepting deposit

and advancing loans are the major functions of a
commercial bank and they are also the integral part of
commercial bank for its survival . A bank provides loan to
the customer from the money which it actually collects
from the customer i.e. From deposits. So it is said that
loan are children of deposit.

1.4 Statement of the problems

The need of resource mobilization for economic
development of a country is no more questions. But,
facing a actual problem which are very much considered
to be the vital financial institution to mobilize domestic
resources . Of course they are well in their performance
in the course of mobilizing ideals resources . The problem
is not only the subject to our deep concern but the
problem is how that the total amount of resource
mobilization is spread among different heading to accord
our true development needs . In this context, the
information shows the concentration of resource
mobilization by Rastriya Banijya Bank in loan and advance
i.e. pledge loans and priority sector investment have got
a very little figures as compare to the loans.
From the developing point of view and utilization point of
view , the bank should carry deep concern in the
investment of the priority sector and investment on his
Majestys Government securities sector also . The Rastriya
Banijya Bank has to go still a long way forward in order
to contribute considerably to economic development of our
country . This is what to move in our study as the main
problem area .
There seems many problem in utilizing the available
resource such as the centralize loans providing policies,
complicated formalities of commercial banks, unbalanced
growth of the bank and branches security minded of
banks, high rate of margin ratio, etc.

1.5 Need of study

Mobilizing of domestic resources has been a great concern
for the under developed and developing countries as well
as the developed countries for the economic upliftment
and to obtain growth with stability, which is not possible
without mobilizing the idle domestic resource of a country.
And this course the commercial bank is considered to be
the vital financial body . The banking institutions are
playing an important and use capable role in the
mobilization of economic life. In this sense Rastriya Banijya
Bank , a leading commercial bank of Nepal , became the
focal point of this present study and the need being to
see how far this bank is successful and how it is going
in its performance in the course of resource mobilization
and utilization.

1.6 Objective of the study

i. To examine the role of Rastriya Banijya Bank in the
bank accumulation
ii. To see how far the bank is able to utilize the collected
deposits
iii. To analyze the impact of interest in deposit mobilization
and utilization
1.7 Statement of the problem
a. There is a significant relationship between total deposits
and total credits by the Rastriya Banijya Bank
b. there is a significant relationship between :
I. What interest rate and credit granted by the bank.
ii. Interest rate and saving deposit of the bank.

iii interest rate and fixed deposit of the bank .

1.8 Limitation of the study

The scope and limitation of the study are as
below:
For the purpose of the study only current , fixed and
saving deposits of commercial banks have been taken into
account . Other deposits such as margin, bank guarantee
so on have been left outside of the study .
Unavailability of the sufficient datas references and
resources also limit the study .
This study includes the data of recent five years only.

1.9 Area of the study

Deposit plays a vital role in the collection of fund, which
is invested in different sectors for which the bank
charges amount as commission etc. which are important
sources of revenue .

1.10 Research Methodology

A Research methodology is required to pick out an actual
result for any special study. Research means the search
for knowledge and methodology refer to the various
sequential steps that developed in the study . This study
is undertaken to have clear picture of resource deposit
mobilization and its proper utilization by Rastriya Banijya
Bank. For the fulfillment of these objectives ,necessary
data and information are collected . This study i based on
secondary data collection.

Generally , the study limits on the basis practices and

trends of deposit mobilization in Rastriya Banijya Bank
which is one of the oldest banks established in 1996 A.D.
The main objective of the bank is to provide banking
facilities to the country people . The main functions of the
bank is not to collect the deposit from the people but
also to invest it. They should pay attention in investing
small scattered saving into one bulk. It offers loan to
commerce , business, industry ,agriculture and so on from
the deposit which it receives. Since it has been said that
the bank are not lending their own money but furnish
advances from the deposit they receive from the customer
. The role of the bank is to function as financial
intermediaries , the country and give loan.

1.11 Research Design

This study is undertaken to analyze the trend and pattern
of resources deposits mobilization and utilization of
Rastriya Banijya Bank . It shows the situation of resources
of deposit and its utilization in context of present
development needs of the cause and effects of
mobilization or under utilization of collected resources of
Rastriya Banijya Bank . To achieve this very objective ,
available data / information and opinions of bank staff and
concerned expert have been taken to analyze and to
support the finding to .
1. Annual reports , bulletin, financial statement, annual
balance sheet and profit and loss account of Rastriya
Banijya Bank .
2. Additional information of official records , other
published materials and concerned books.

1.12 Nature and sources of data

The sources of data used in the study are basically

secondary in natural and to some extend primary
information are also used. The following are the main sources
of
Data:
1.Annual reports ,bulletin, financial statements, annual
balance sheet and profit and loss account of Rastriya
Banijya Bank.
2.Additional information of official records, other published
materials and concerned books.
3. Rastriya Banijya Bank

1.13 Data collection procedure

The nature of data for study is secondary type. All the
necessary data are collected from published data and
additional official record of Rastriya Banijya Bank , such as
annual bulletin, balance sheet , annual profit and loss
account , magazine , newspapers and other economics
bulletin of Rastriya Banijya Bank. So the study is based on
secondary data only.

1.14 Data Analysis

This study period covers the seven year balance sheet of
Rastriya Banijya Bank from the fiscal year 2000 to 2006.
All the available data are collected in crude form. These are
properly synthesized, arranged and presented in tabular form.

1.15

Statistical tool used

In this study statistical tools like percentage

changes and other necessary tools (if required)
are used for interpretation of data.
List of statistical tools are:

Mean
Median
Correlation
Trend analysis

1.16Organization of the study

This study has been broadly divided into three
chapters , which are as follows:

Chapter-1: Introduction
It includes general introduction, need of the study and
objective of the study , statement of thesis, scope and
limitation of study.

Chapter-2: Presentation and analysis of

data
This chapter attempts to analyze and evaluate the
data with the help of analytical tools and interpret the
result so obtained.

Chapter-3: Summary and conclusion

It sums up brief of the report and major conclusion
derived from analysis of data.

Chapter-2
Presentation and analysis of data
1.1 Deposit of Rastriya Banijya Bank
Bank deposit is one of the main sources for loan and
advances . so, the commercial bank basically depends
upon the mobilization of deposits . Commercial bank
accepts un the usually three types of deposit : current,
saving and fixed. Higher the volume of deposit higher will
be the volume of lending and investing, which again

generate higher volume of profit . First of all ,

commercial bank tried to mobilize as much as deposits as
possible. Since, the establishment of R.B. bank are playing,
as an important role in the economic development of the
country by collecting the scattered resources on the firm
of deposits. Rastriya Banijya Bank structures with their
increment are in table 1.

Deposit position of Rastriya Banijya Bank

RS in Million
Year T.D

%
incre
ase

C.D

200
5
200
6
200
7
200
8
200
9

5.3

7015 24.2

7.4

8305 18.37

9.2

1211 45.85
1
1159 -4.27
4
1754 51.28
0

4301
6
4619
5
5046
4
5797
1
6689
0

14.9
15.3
8
.

%
S.D
increas
e

2697
9
2974
6
3330
6
3942
0
4617
9

%
F.D
increa
se

%
I.I
increa
se

13.82

9022 -21.65 2329

% in
intere
st
incom
e
4.16

10.26

8145 -9.72

-1.98

11.97

5046 -38.05 2358

3.28

18.35

6956 37.85

2704

14.67

17.14

3171 -54.41 3448

27.51

2283

70000
60000
50000
Total Deposit

40000

Current Deposit
Saving Deposit

30000

Fixed Depsoit
Interest Income

20000
10000
0
2005

2006

2007

2008

2009

From above table 1 we can see the increasing trend of

total deposit of R.B Bank in different year comparison
over previous year R.B bank has collected deposits
efficiently .
The deposits collected by Rastriya Banijya bank is
increasing year by year i.e. which shows the increment
trend has led to positive direction in year 2005 by 5.3%
and continued from 2006,2007,2008,2009 of 7.4%, 9.2%,
14.9% to 15.38% respectively. In every year the total
deposit is increasing and increasing in slow movement .
Here the analysis shows the increasing tendency of the
deposits . This tendency reflects the two things.
-It shows the efficiency of Rastriya Banijya bank to collect
the deposits from the various areas of the country.
-It shows the banking habit development among the people.
The faith of people on the banks has increased. a lots of
bank have opened in the different parts of the country
including remotes areas . so, the people got opportunity
to be aquatinted with the banking habits. They are
attracted by the interest rate and their money will also
be secured in the bank . so that in their year , deposit

has increased due to these reason. By establishing lots of

different types of bank the only one Rastriya Banijya Bank
can able to pull the lots of customers on their service by
these above following reasons .

Correlation between the year and total deposit

Year(y)

Total deposit(x)
43016

T=(Y2007)
-2

2005

2006

46195

-1

2007
2008

50464
57971

0
1

0
1

2009

66890

Total

264536

10

XT
8604
2
4619
5
0
5797
1
1337
80
5951
4

1850376256

2133978025

2546615296
3360636841
4474272100
14365878518

Now the correlation between the year and

total deposit(r)

X
T

T
2

X
2

i.e. r =

2
n
X

2
n
T

XT
n

Or=

5595140
5100

Or, =

1
5143658785182645362

297570
7.0743012.7

Therefore, r=0.978
Again test of significant
I.e. probable error of r=0.6745

=0.6745

10.9409
5

=0.018
Therefore, P.E(R) =0.018
Now, 6 P . E ( r )=6 0.018=0.11

1r
N

Here, r 6 P. E( r)
i.e. 0.97 8>0.11
Therefore the value of correlation coefficient is
significant

Correlation between the profit and total

deposit
S
Profit(y Total
)
deposit(
X)
2329
43016
2283
46195
2358
50464
2705
57971
3448
66890

T=(Y2625
)
-296
-342
-267
80
823

T2

87616
116964
71289
6400
7677329

Y =13123 X =264536 T =323 T 2=980463

XT

X2

-12732736
-15798690
-13473888
4637680
55050470
XT =

176828

36
Here, mean for Y is =

Y
N

1850376256
2133978025
2546615296
3360636841
4474272100
X 2=

14365878

518
=

13123
5

=2624.6

OR 2625
Now the correlation between the year and
total deposit(r)

X
T

T
2

X
2
I.e. r =

2
n
X

2
n
T

XT
n

Or, =

264536

2
5 14365878518

5 176828360 1

5 9804630

Or, =

88414180
2214.11 43012.75

r=

88414180
95234959.9

Therefore r=0.92
Again, test of significant
I.e. is probable error of r =0.6745
=0.6745

10.8464
5

Therefore, P.E.(r)=0.046
Now, 6 P . E ( r )=6 0.046=0.27

1r
N

Here, r 6 P. E( r)
i.e. 0.92 0.27
Therefore, the value of the correlation
coefficient is significant

Trend analysis between the year and total

deposit
Year(Y) Total
deposit(X)

T=(Y2007)

2005

43016

-2

2006

46195

-1

2007
2008

50464
57971

0
1

0
1

2009

66890

Total

264536

T2

XT

Y e=52907.2+5952.4(T )

10

8603
2
4619
5
0
5797
1
1337
80
5952
4

X
T =3

Since,
, bo =
=
n
And

T.V
41002.2

46954.8

52907.2
58859.9
64812

264536
5

XT
b1 = T 2 =

59524
10

=52907.2

=5952.4

Hence, the best fit of trend line is Y e

=52907.2+5952.4(T)
Since

1=
b 5952.4, this shows that the total deposit

has increasing trend therefore, the exact increasing

rate of total deposit is RS. 5952.4 million.

Trend analysis between the profit and total

deposit

Profit(Y Total
T=(Y)
deposit( 2625
X)
)
2329
2283
2358
2705
3448
13123

43016
46195
50464
57971
66890
264536

-296
-342
-267
80
823

XT

T2

87616
116964
71289
6400
7677329

T =323 T 2=980463

T.V

52907.2+18.03(
T)
47570.32
46740.94
48093.19
54349.6
67745.89

-12732736
-15798690
-13473888
4637680
55050470
XT =

e=
y

176828

36
Here we can find the mean 2625 by
13123
5

Since,

X
N

=2624.6 or 2625
T =

0, bo =

X
n

264536
5

=52907.2

 XT
b1 = 2 =

And

17682836
980463

=18.03
Hence, the best fit of trend line is Y e
=52907.2+18.03(T)
Since, b1 =18.03, this shows that the profit has
increasing trend
Therefore the exact increasing rate of profit is RS.
18.03 Million

Table -2
Credit position of Rastriya Banijya Bank
year

2005
2006
2007
2008
2009

Total
investmen
t
8416
11555
12650
14443
15418

Total loan
and
advance
27001
23246
24871
27525
26154

Total
credit
35417
34801
37521
41968
41572

Change on
total
amount
7194
-616
2720
4447
-396

% change
in total
credit
25.49
-1.74
7.82
11.853
-0.94

45000
40000
35000
30000
Total investment

25000
20000

Total loan and

advance

15000

Total credit

10000
5000
0
2005

2006

2007

2008

2009

Table -4
Deposit mobilization and its utilization
year
2005
2006
2007
2008
2009

Total deposit
43016
46195
50464
57971
66890

Total utilization
35417
34801
37521
41968
41572

% of total utilization
82.33
75.33
74.35
72.39
62.14

Deposit mobilization and its utilization position

1
100000

50000
5

Total utilization

Total deposit

Viewing the above table 4 the amount of total deposit of

Rastriya Banijya bank is increasing year by year .It
signifies that the development as well as the economic
development of the country . it was RS 43016 million in
the year 2005 and reached RS 66890 million in the year
2009.
Viewing to the same table above we see the utilization of
resources is first increasing and then decreasing and again
increasing and slowly decreasing at the last year is clearly
shown in the table .It was RS 35417 million in the year
2005 which is increased by 82.33% as compare to
previous year 2004. But in 2006 the utilization of
resources is decreased by 75.33% as compare to previous
year 2005 i.e. RS 34801 million. After decreasing the
utilization of resources in year 2006 again the data shows
the increasing utilization of resources in the both year
2007 and 2008(i.e. RS 37521 and RS 41968 million) By
74.35% And 72.39% respectively. Similarly from the year
2008 to 2009 there is little bit decreasing in the
utilization from amount of RS\ 41968 to 41572 . we can
easily see that the decreasing percent 62.14% in 2009 and
the previous percent was 72.39% . It clearly shows that
there is 10.25% decrease from 2008 to 2009(decreasing
utilization).

 Rastriya Banijya bank is playing a vital role on the

deposit mobilization and utilization for Nepalese
economic development. Since , its establishment in the
year 1996 , it has contributed to the great extent
mobilizing domestic small saving and utilizing it in
the national investment. Rastriya Banijya banks main
function is:
The mobilization of the deposits.
Rastriya Banijya Bank collects the scattered small
saving from the people and invest them in needy
sectors of the country in big amount .
Deposits are the prime concern of Rastriya Banijya
Bank, and without deposits the bank cannot run its
daily performance as well.
In the utilization side the main objectives of Rastriya Banijya
Bank are:
To generate profit, to which is possible only through
the maximum and proper utilization of the business.
And also the point view of countrys economic
development too.
Rastriya Banijya Bank should pay a vital role in the
mobilization and utilization domestic idle resources.
Not only the Rastriya Banijya Bank should also give
due concern to the proper and effective utilization of
the resources , it should clearly allocate resources in
different fields so as to meet countrys economic
requirement.

Chapter -3
1. Summary, conclusion and
recommendation
1.1 summary
Commercial banks are the major financial institution playing
crucial role in the economic development of a country.
Economic growth, trade and commerce have become so
much depend upon banking that if banking activities are
stopped for some day, economic life of nation will
completely be paralyzed. The economic development without
inflationary pressure in the economy, mobilization as well
as channelization of saving on the productive sectors is
important. It is quite true that a strong financial institution Is
of great need on developing country, like our country
Nepal . because in developing country, there is always
shortage of capital for investment and as the government
could not persuade economic development. All the
economic conditions are based on the financial institution
and the development of the country depends upon the
active participation of the bank in the different activities
in the country . Rastriya Banijya bank is one of the oldest
and second commercial bank in the country and providing
services from the year 1996 A.D. The bank has

successfully collected the large amount of scattered

saving through 114 branches with 3002 employees up to
year 2009 A.D.
This study is undertaken to show the performance of
Rastriya Banijya Bank is mobilizing and utilizing resources
efficiently in contributing for economic development of the
nation.
Bank is utilizing its resources in advancing loans and
advances, investment in priority sector and other loans.
Rastriya Banijya Bank being a commercial have to be
engaged in commercial sector alone, but with the
difference and refinancing scheme of Nepal Rastriya
Banijya bank, the central bank of our country , the bank is
extended very few amount of credit in priority sector. Yet ,
it is appreciable because the bank is investing more out
of its deposit in the scheme.
In this study , it is found that the relation between
resources mobilization and utilization is significant .the
increasing trend of deposit collection is accompanied by
increment in utilization side also .yet to go hand with the
development activities of the country , the bank has to try
more utilize even better with proper allocation scheme.

3.2 conclusions
Nepal has realized that the desired growth rate can only be
achieved when the domestic finance is properly mobilized
and utilized in productive sector. Rastriya Banijya Bank is
playing vital intermediary role on the acceleration of economic
development and lastly enlisted of the living standard of the
Nepalese people.
The major finding of this study which covers a period of six
years (2005-2009) is that rastriya banijya bank has been much

efficient in the collection of resources from the people in the

both rural and urban areas of the country. But in the process of
its utilization, they are still behind. There is decrease in the
ratio of loans and investment to deposits and wide gap has
existed between them in 2004 to 2006. In analysis it is
observed that the percentage of the total credit supplied by the
Rastriya Banijya bank within 5 year period is more or less some
while in the collection of the deposits the percentage has to
increase too much. Thus, the decrease 5 of loans and
investment is correspondence to deposit is the main factor
responsible for the wider gap.
The interest rate has played important role in mobilizing the
resources of the bank. So that the structure of interest rate
should be changed according to the need of the nation.
Again, the function of the commercial banks is to offer shortterm loans for working capital, but they collect fixed deposits.
Thus, they have capacity to offer terms loans. In actual practice
they do not offer medium and long-term credit and are found
keeping deposit idle. Thus it can be said that the commercial
banks in Nepal are not playing active role to utilize collected
saving according to the borrowers and nation requirement for
long-term and medium term investments.

3.3 Recommendation
The recommendation of the study may provide significant
information for those who want to have an idea of deposit
mobilization and utilization of bank. Hence the following
recommendations can be obtained.

 Bank should invest deposit in various sectors so as to

increase fixed deposits.
Bank should provide loan and advances to its customer in
order to utilize its resources efficiently and effectively.
It should evaluate the credit worthiness before granting
loans to debtors.
Thus the bank should make positive attitude towards
public of every public society and treat them well as it is
said customer are god. If the bank succeeds to make
positive attitude from public, even in the situation of
providing less interest rate also, deposit from clients will
not decrease. As new management has taken the charge
lets hope for the betterment of Rastriya Banijya Bank.

Bibliography
1) Bhandari, Dilli raj, banking and insurance 4 th Edition
2064, Ayush prakashan
2) Chaudari,A.K and Pant G.D, business mathematics and
stastisticsThird Edition

3) Rastriya Banijya Bank Banking Prawadan

4) Rastriya Banijya bank annual balance sheet 2066.
5) www.rbb.np
6) Rastriya banijya Bank souvenir 45th anniversary

Appendix
1) In Table: 1
% increased of deposit=old deposit-new deposit/old deposit
100%

2) In Table: 2

%share of rastriya banijya bank in total commercial bank

deposit is rastriya banijya bank deposit /total deposit of
commercial bank*100%

3) In table: 3
-Total credit=total investment+ total loan and advance
-Change on total amount = new total credit- old total credit
-%Change in total credit = new total credit old total credit /old
total credit 100%

4) In table: 4
% of total utilization = total utilization/total deposition 100%