PART 1

INTRODUCTION

1.1 INTRODUCTION TO BANKING

It has been seen that the origin of banking was from the ancient time.

Although at that time the banking activities were not in systematic way but

banking activities used to hold from that time. It has been said that the lending

and borrowing are as old as money itself.

The word bank has been derived from the Italian word "banco". The word

banco means bench. As the different monetary transaction used to be held by

sitting-up in the bench, it has been named as banco. Macleod has defined the

word banco as the accumulation of money or stock. Bank in an organized form

was first introduced in Italy in 1157 A.D. The Bank of Barcelona, Spain was the

bank established in 1401 A.D. The first central bank was established in England,

in 1844 A.D. But at present stage the bank has passed through different stage. It

has been developing and modernizing its activities.

Bank can be briefly defined as the financial intermediary between the

depositor and credit seeker. The transaction can happen between the bank and

depositor only when the depositors deposit certain amount in the bank and the

bank has good relation with its customer. The Bank can make good relation with

its customer only when it will be able to payback the amount deposited by the

depositor at time. The intermediation takes place when bank accept deposit from

general public, corporate bodies and private organization and invest those

deposit for profitable purpose in form of loan and advances. The bank has

started providing much more facility to its customer such as remittance of

money, letter of credit, Bank guarantee, issue of money and many more.

According to Kinley, "Bank is an establishment which makes to individual

such advances of money or other means of payment as may be required &

safety made and to which individual entrust money or means of payment when

not required by them for use."

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According to Cambridge International Dictionary of English "An

organization where people and business can invest or borrower money changes

it to foreign money etc. or a building where these services are offered."

Thus, bank can be described as the custodian of savings of general people

and established as well. It could have been quite impossible for the

entrepreneurs to acquire the saving of general public for investment without the

establishment of the bank. So, bank can be best described as the financial

institution that accept deposit and provide the certain rate of interest and loan it

to the needy person, charging certain rate of interest and earn some profit in the

process of intermediation.

1.2 ORIGIN AND GROWTH OF BANK IN NEPAL

The lending or borrowing process of money used to be held even at

ancient time. The historical evidence shows the presence of some crude banking

practice in the earlier period of time. But in case of Nepal it has a very short

history. The development of bank in Nepal can be divided into two parts:

a) Traditional Banking

b) Modern Banking

a) Traditional Banking

Traditional Banking is related with the process of taking money with

private money lender and not with a registered institution. Previously the people

used to take money from the private money lender. Generally, people used to

take such loan for meeting daily expenses. The lender used to charge high

interest rate. In remote area till now there are different money lenders. There are

the sayings that in 780 B.S. King Guna kam Dev took loan from the money lender

and in B.S. 937 Shankadhar paid out the loan and started Nepal Sambat. In 14 th

century King Jaysthity Malla divided the people in 64 different casts. And

Tankdhari was also one of them. The main occupation of such cast people was to

deal with monetary transition. After this the Tejrath Adda was established in

government sector. They provide its services only to the civil servant to lower

rate of interest.

Private money lender following certain malpractice used to charge

unreasonable rate of interest that caused inconvenience and difficulty to the

people of country. The great need of a commercial bank was felt to eliminate

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prevailing hindrances caused by private money lender to the general public. As a

result, the "Tejarath Adda" was replaced by modern commercial bank.

b) Modern Banking

As the banking transaction started to be in broad condition there felt the

need of modern banking system. So in 30th Kartik 1994 B.S the Nepal Bank Ltd.

was established which was the first commercial bank in Nepal. Since then, the

banking operation began to foster. After the establishment of NBL Ltd., Rastriya

Banijya Bank was established in 2013 B.S. Different joint venture banks also

started its operation in year 2041 B.S. Nepal Indosuez Bank Ltd. & Nepal

Grindlays Bank Ltd. was established in 2042 B.S. and 2043 B.S. respectively.

Himalayan Bank Ltd. was established with the joint venture with Habib Bank of

Pakistan. Nepal SBI bank followed Himalayan Bank in 2051 B.S. The three new

banks were opened in 2051 B.S., Nepal Bangladesh Bank Ltd., Everest Bank Ltd.,

and Bank of Kathmandu Ltd. Meanwhile there are 16 commercial banks in Nepal.

1.3 MEANING OF NEPAL BANK LTD

Nepal Bank Ltd. was the first commercial bank. The banking history in

Nepal began from 30th Kartik 1994 B.S. with the established of Nepal Bank Ltd.

Under the privilege support from His Majesty King Tribhuvan. NBL commenced

its operation of modern banking system by accepting and monitoring the saving

of people and granting appropriate loan and monitoring the saving of people and

granting appropriate credit facilities to people, hence removing the hindrance in

the economic development of the people of the country. NBL was established

with the establishment with 51% of share of government of Nepal and 49% was

issued to general public. The authorized capital of this bank was 10 million. The

bank initially started its banking operation with paid up capital of Rs 842

thousand of the issued price of Rs 2.5 million. NBL Ltd. has authorized capital of

Rs. 1000 million, issued capital of 500 million and paid up capital of 38.04 crore.

The present share percentage of Nepal Bank Ltd. is 40.49% of government and

59.51% of the general public.

1.4 EXPANSION OF NBL

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As the main objective of commercial bank is to earn profit thus at the

beginning NBL was centralized in those areas where their business affairs took

place. NBL has opened its main branch in Kathmandu.

As different financial activities were held at this place, the first importance

was given to Kathmandu. NBL has its head office at New Road. Previously, as the

main export & import activities used to be held from Birjung it was quite

important to open branch office at Birjung so the first branch office was opened

there at B.S. 1998. And as different business activities of eastern side was used

to be done from Nepalgunj the most priority was given to it and at same year

another branch office of NBL was opened in Bhadrapur, Janakpur, Gaur and

Biratnagar. From the date of establishment of NBL within 5 years, 8 branch

offices were opened and had started its services. In fiscal year 1999 to 2011 the

more emphasis was given to the development of those banks. Till fiscal year

2046 the bank has got 234 branches at 67 district and the number of bank staff

reached to 8721. Later on a study report of CBPASS (Commercial Bank

Problem Analysis and Strategy Study) suggested that the non-performing

branches as well as excess staff should be removed. As a result NBL accepted

resignation of 800 staff and 15 branches were set collaborated. As a result NBL

has 212 branch office having 5500 staff employed. At present NBL has 7 branch

offices with fully computerized system and NBL is planning expand this number.

NBL is further planning to expand its sector and its services in different

sectors.

1.5 FUNCTIONS OF NBL

NBL is a commercial bank with an objective of earning maximum profit.

But it has also given priority to the economic development of the country. NBL

supply the financial need of the business by various means. Although the main

function of the bank is to earn maximum profit by providing different facilities to

needy people or organization to obtain the procedure benefit here are some

other main functions of NBL:

a) To deposit money in saving, current and fixed deposit.

b) To provide loan with or without considering legal procedure.

c) To invest money in education, business, and agriculture sector for

the economic development of country as it has certain responsibility

towards them.

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d) To invest in government bonds and securities.

e) To act as an agent.

f) To act as bank of government.

g) To provide safe custody of valuable goods.

h) To issue letter of credit & credit instrument.

i) To finance in foreign trade.

j) To deal with foreign currency.

k) To act as a referee and provide accurate information to the people.

Apart from the banking function, the act empowers NBL to do insurance

and transport business. Further the main function of NBL that differ from other

commercial banks is that it is especially empowered by act to grant loan to

companies undertaking profitable business associated with agriculture, mining,

road, railways, ropeway and so on.

1.6 OBJECTIVES OF STUDY

The main objective of the study is to get entire knowledge of fixed deposit

and its chief feature in regards of NBL. The objective can be specified as follow: -

1. To analyze the share of fixed deposit out of total deposit of NBL.

2. To analyze the trend of fixed deposit in NBL.

3. To evaluate importance & utilization of fixed deposit account.

4. To know opening & closing procedure of fixed deposit.

5. To draw out different problems in fixed deposit management.

1.7 LIMITATIONS OF STUDY

The study is made in certain limitation they are as follows: -

a) This study concern only period of 6 years.

b) There are number of factors that affect the banking policy of NBL.

However only those factor, which are related with fixed deposit, is

considered in study.

c) Main focus is give only in the trend of fixed deposit of NBL.

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PART 2

MEANING OF FIXED DEPOSIT

2.1 MEANING

Fixed deposit constitutes a very important role for the bank. The amount

deposited for the fixed period of time is fixed deposit. It is generally opened by

such person who doesn't need money frequently. And as the money is kept in

bank for certain period of time it is also called time deposit. As the money is

withdrawn by the customers only after the maturity of date, pass book and

cheque book are not given by the bank. Since bank can be certain about the

withdrawl period of deposit, the bank gets the opportunity to utilize that money

in productive sector so his amount of interest is provided. In Nepal the fixed

deposit can be opened for 15 days, 1 month, 3 month, 6 months & 1 year and

above. The bank provides interest from 4.00% to 9.5%. After the maturity time

the customer can renew or withdraw the money. But before opening fixed

deposit it is necessary to have saving or current deposit.

2.2 PROCEDURE OF OPENING FIXED ACCOUNT

For opening fixed deposit account it is not necessary to have the identity

of the person opening it. The person should only have to specify the amount to

the deposited. The maturity date and other important documents as enquired by

the bank must be provided. Here are some procedures of opening fixed deposit

they are: -

a) The applicant have to fill up the application form in which an applicant

should mention his name, address, the amount to be deposited and the time of

maturity and the citizenship should be clearly mentioned.

b) The applicant signature is very important for the bank. So, the signature

should also be done clearly.

c) After filling up the form the depositor have to deposit the desired

money in the counter enough the voucher prepared by the bank’s employee for

the fixed deposit account.

d) After completion of all the process, the fixed deposit section open fixed

deposit account in the name of applicant the bank provide receipt which is called

fixed deposit receipt. The fixed deposit receipt is not negotiable, so only the

person whose name is in receipt can take money after maturity.

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e) To open the account in minor's name, the guardian name, cast and

account number along with his/her own signature should be mentioned in the

form.

2.3 PROCEDURE OF CLOSING FIXED DEPOSIT ACCOUNT

The depositor may close the fixed deposit account after the maturity date.

Because of different reasons the depositor may also close the account before its

expiry date. So, for closing the fixed deposit earlier it is necessary for the bank to

give pre-information.

Thus the contract will be rescinded as well as the relationship between

bank and customer will come to and with completion of due date. After the

maturity date, the depositor may also renew his account if he doesn't want to

take the money. For this he has to fill up the application form and submit to the

bank.

2.4. CHARACTERISTICS OF FIXED DEPOSIT ACCOUNT

The fixed deposit has its certain characteristics, which are mentioned as

follow:

1. Fixed deposit account is opened for the fixed period of time. The

duration of the deposit period may be 7 days, 15 days, 1 month, 6

months, 9 months, 1 to 5 years or above.

2. Interest rate is provided according to the deposit period. Though the

fixed deposit can be opened for more than 5 years, the maximum

interest rate remains the same as that of 1 year.

3. The interest is awarded every 3 months.

4. The Fixed Deposit Account holder could not withdraw his deposit

without completing the deposit period. However, the Fixed Deposit

Receipt can be pledged for loan from the bank.

5. The Fixed Deposit Account can be renewed after expiry of the fixed

time.

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PART 3

PRESENTATION AND ANALYSIS OF DATA

The most valuable and crucial tool to evaluate the true and actual position

of any organization is its past data. The strength and weakness of the

organization can be appraised from the proper analysis of data.

The part of the report focuses on presentation and analysis of data related

to the current deposit of NBL to obtain the objective of study.

3.1 TOTAL DEPOSIT

The deposit are said to be "life blood of the bank". The first and utmost

important thing to know is the total deposit trend in NBL. Total deposit refers to

the total deposit of the general public in various accounts during certain period

of time.

The following table shows the status of deposit of NBL during the financial

year from 2055-056 to 2059-060.

Table No. 1Total Deposit of Nepal Bank Limited

(Rs. in million)Fiscal Year Total Deposit Change in Total Deposit

Amount Percentage

2055-056 33092.6 - -2056-057 35578.7 2486.1 7.51%2057-058 35528.5 (50.2) (0.14)%2058-059 34060.1 (1468.4) (4.13)%2059-060 34737.4 677.3 1.99%2060-061 36519.7 1782.3 5.13%2061-062 35934.2 (585.5) (1.60)%

Source: NBL Head Office.

From the above table we can say that the increasing trend of total deposit

of NBL has been fluctuating in every fiscal year. In the fiscal year 2056-057 the

trend of total deposits increased by Rs. 2486.1. Likewise in 2057-58 the change

in total deposit is Rs. (50.2). Same as in 2058-059 the change in deposit is

9

(1468.4). And in 2059-060 the change in deposit is increase as 677.3.Likewise in

2060-061 changes in deposit increase by 1782.3, but in 2061-062 deposit is

decreased by 585.50. So the data above shows both the increasing as well as

decreasing rate. The variation in the total deposit may be because of the

inflation caused by the increased of money supply in the country, which result in

the decrease in the value of the money.

The graphic presentation of total deport of NBL is shown in the figure

below:

Figure No.1

Total Deposit Trend

31000

32000

33000

34000

35000

36000

37000

2055-056 2056-057 2057-058 2058-059 2059-060 2060-061 2061-062

Fiscal Year

Rs

in

Millio

n

Total Deposit

3.2 TREND OF FIXED DEPOSIT OF NBL:

Fixed deposit is the major source of working capital of any commercial

bank. Thus NBL has been able to collect adequate fixed deposit by providing

competitive rate of interest for investing alternatively in loans and advances and

investment. The following table shows the trend of Fixed Deposit in NBL during

fiscal 2055-56 to 2059-60.

Table No. 2Fixed deposit Trend of NBL

(Rs. in Million)

Fiscal year Fixed deposit Amount Percentag

e

2055-056 14154.7 - -

2056-057 12275.8 (1878.9) -13.27%

2057-058 9921.7 (2354.1) -19.18%

2058-059 9731.8 (189.9) -1.91%

10

2059-060 8396.9 (1331.9) -13.68%

2060-061 7480.9 (916.0) -12.24%

2061-062 7216.9 (264.0) -3.53%

Source: NBL head office

From the above table it is apparent that the fixed deposit has been

decreasing continuously form 2055-056 to 2060-061. In fiscal year 2056-057 it

has decreased by 1878.9, in 2057-058 it again decreased by 2354.1, in 2058-059

by 189.9, in 2059-060 it decreased by 1334.9 and in 2060-061 & 2061-062 it is

decreased by 916.0 and 264.0 respectively.

The trend of six year is presented graphically if figure.

Figure No. 2

Fixed Deposit

0

2000

4000

6000

8000

10000

12000

14000

16000

2055-056

2056-057

2057-058

2058-059

2059-060

2060-061

2061-062

Fiscal Year

Rs in

millio

n

Fixed deposit

Fixed Deposit Trend

11

0

2000

4000

6000

8000

10000

12000

14000

16000

2055-056 2056-057 2057-058 2058-059 2059-060 2060-061 2061-062

Fiscal Year

Rs

in m

illio

n

Fixed deposit

3.3 FIXED DEPOSIT TO TOTAL DEPOSIT RATIO

This ratio measures the percentage of fixed deposit to total deposit ratio.

This deposit is calculated by dividing fixed deposit with total deposit.

Fixed deposit to total deposit =

Table 3

Fixed deposit to Total Deposit Ratio

(Rs. in Million)

Fiscal Year Fixed Deposit Total Deposit Percentage of F.D. to T.D.

2055-056 14154.7 32755.9 43.21%

2056-057 12275.8 35197.5 34.88%

2057-058 9921.7 35210 28.18%

2058-059 9731.8 33895 28.71%

2059-060 8396.9 34620.9 24.25%

2060-061 7480.9 36519.7 20.48%

2061-062 7216.9 35934.2 20.08%

Mean 28.54%

Source: NBL Head Office

The Table No. 2 shows the high volume of Fixed Deposit in comparison to

other deposit. The mean ratio of Fixed Deposit to Total Deposit is 28.54% for the

previous seven years during the fiscal year 2055-056 to 2061-062. The highest

percentage is 43.21% for the fiscal year 2055-056. The high volume of Fixed

Deposit shows the high liquidity of capital in NBL.

Figure No. 3

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3.4 RATE OF INTERESTFixed deposit are considered to be the major source of capital and NBL

has been able to collect the fixed deposit by providing competitive rate of

interest to the account holder in order to fulfill the demand of capital for

investing alternatively in Loans and advances and Investment. The following

table shows the before and current rate of interest on Fixed deposit:

Table No. 4

Interest rate of Fixed Deposit

Period of Time Before Rate Current Rate

7 days 2.00% -

14 days 2.50% -

1 month 3.50% 2.50%

2 month - 2.75%

3 month 4.00% 3.00%

6 month 5.00% 3.50%

1 year 6.75% 4.00%

2 years & above 7.00% 4.00%

Source: NBL Head Office

3.5 COMPARISION OF INTEREST RATE OF FIXED DEPOSIT OF NBL WITH

OTHER BANKS

Table No. 5

13

Comparative Fixed Deposit with Total Deposit

0

5000

10000

15000

20000

25000

30000

35000

40000

2055-056 2056-057 2057-058 2058-059 2059-060 2060-061 2061-062

Fiscal Year

Rs

in M

illio

n

Fixed Deposit

Total Deposit

Comparison of interest rate of fixed deposit of NBL with other banks

Name

of

bank

7

days

14

days

1

month

2

months

3

months

6

months

1 yr 2 yrs &

above

NBL 2.00 - 3.25 3.50 3.75 4.25 5.7

5

6.00

HBL 2.30 3.30 - 3.75 4.00 5.2

5

5.75

EBL 3.00 3.50 - 4.00 5.00 5.5

0

6.00

NSBI 2.50 3.00 - 4.00 5.00 6.0

0

6.25

KBL 3.00 3.50 - 4.00 4.25 5.2

5

5.50-

6.00

Source: Banking & Financial Statistics

So for the above table we can say that the interest rate of NBL and other

bank are quite similar. The percentage of providing the interest rate has been

increasing time to time. As the percentage of the deposit is also constantly

increasing it is quite important to make the changes in the percentage of

providing the interest.

Table No. 6

3.6 COMPARISION OF FIXED DEPOSIT OF NBL WITH OTHER BANKS

(Rs. in Million)

Name of Bank 2000 2001 2002 2003

Nepal Bank Ltd. 12275.8 9921.8 9731.8 8396.0

Himalayan Bank Ltd. 5109.4 5668.1 6044.9 5880.7

Nepal SBI Bank 2420.3 2929.4 3132.7 3337.6

Source of Banking and Financial Statistics

So from the above table it can be noticed that the fixed deposit trend of

NBL is more than that of other banks. For example Himalayan Bank has got the

fixed deposit of Rs. 2104.5 thousand in the fiscal year 1996-97 whereas NBL has

got the deposit of Rs. 7001.0 thousand. In the same way from the above table it

can also be noticed that the amount of fixed deposit has been increasing in

every year, which is a quite good sign of the economic development of country.

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3.7 KARL PEARSON'S CORRELATION COEFFICIENT

Karl Pearson's method, popularly known as Pearsonian coefficient of

correlation, is most widely used in practice to determine the relation between

two variables. It is denoted by "r" and defined by:

Where, r = Karl Pearson's correlation coefficient

Value of r always lies between + 1 and -1, r = +1 denoted the perfect

positive correlation between the two variable and r = -1 denoted the perfect

negative correlation between the two variables.

Table No. 7

Correlation Between Fixed Deposit with Total Deposit

Year

Fixed Deposit (X)

Total Deposit (Y)

x2 Y2 xy

2056

14154.7

33092.6

4272.1 (1943.2) 18250838.41

3776026.24

(8301544.72)

2057

12275.8

35578.7

2393.2 542.9 5727406.24

294740.41 1299268.28

2058

9921.7 35528.5

39.1 492.7 1528.81 242753.29 19264.57

2059

9731.8 34060.1

(150.8) (975.7) 22740.64 951990.49 147135.56

2060

8396.9 34737.4

(1485.7) (298.4) 22073044.9

89042.56 443332.88

2061

7480.9 36519.7

(2401.7) 1483.9 5768162.89

2201959.21

(3563882.63)

2062

7216.9 35934.2

(2665.7) 898.4 7105956.49

807122.56 (2394864.88)

X=69178.

7

Y= 245451

.2

x2=58949678.

38

y2=

8363634.76

xy=(12351290.9

4)

15

Since Karl Pearson's correlation coefficient (r) = -0.55 the two

variables fixed deposit and total deposit has high degree of negative

correlation. That means the increament/decreament in total deposit will

not cause change in fixed deposit.

Estimation of Fixed Deposit of NBL For the year

2062

By least square method

Time Series

Table 8: Trend line of fixed deposit

Year

(X)

Fixed Deposit

(y)

x = X-2058 xy x2

2056 14154.7 -2 -28309.4 4

2057 12275.8 -1 -12275.8 1

2058 9921.7 0 0 0

2059 9731.8 1 9731.8 1

2060 8396.9 2 16793.8 4

2061 7480.9 3 22442.7 9

2062 7216.9 4 28867.6 16

y = 69178.7 x = 7 xy = 37250.7 x2 = 35

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Let the straight line trend be represented by the equation.

Y = a+bx...................................... eqn 1

The deviation is taken from the year. i.e. year 2058.

Since, x = 7

Substituting the value of a and be in eqn 1, the required trend line is

Y = 9882.6+1064.3x.................equation 2

Again Calculation of trend values for the year 2063

X = year -2058, 2062-2058=4

When we substitute the value of x in equation 2, we get

Y = 9882.6+1064.3x4 = 14139.8

The fixed deposit of NBL for year 2062 will be 14139.8

PART 4

SUMMARY AND CONCLUSION

4.1 SUMMARY

Bank is the most important institution for accelerating economic growth in

the country. It is quite true that a strong financial institution is of a great need in

the development of the developing country like Nepal. The Nepal Bank Limited is

one of the oldest banks of the country which has got the history of 66 years. This

bank is now in its advance stage. As being the first commercial Bank it has to

pass through the different ups and down. NBL has been providing different

services to its customers. NBL played a vital role in the over all development of

the country. The bank only had authorized capital of Rs 842 thousand at its

starting stage, which has now increased to 1000 million. NBL previously was

started with the 51% of the government and 49% of the public but at present

time the bank has got the 40.49% share of the government and 59.51% of the

general public. So looking at this factor, NBL has developed a lot in this time. The

Bank has high contribution in fulfilling the economic improvement by collecting

the scattered resources through the network of 127 branches through out the

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country. The bank has the thought of computerizing the very branch. NBL at

present has 7 branch offices which are fully computerized.

Though commercial banks are profit oriented and invest these resources

in those sectors from where they could gain maximum profit, NBL is initiated not

only with profit oriented motive. It has always given preference to the economic

and the financial development of the country. It provides credit facilities to the

trader, agriculturist, industrialist, businessman etc. It can also be said that NBL

acts as the pillar of the economic development. NBL facilitates international

banking by being directly connected with major international banks.

NBL has different functions but the main function is to provide the security

to the wealth of the customers. NBL generally provide three different types of

accounts i.e. saving, current and fixed deposit account. Although the interest is

not provided in current account, people deposit in this account for its safety.

Fixed deposit account is most common among the people because it has higher

interest rate, can be pledged as collateral for loan and easier to open.

The study provides the entire knowledge of getting Fixed Deposit Account

opened, operated and closed. Fixed Deposit Account is opened for the fixed

period of time but the account holder cannot operate it during its time period.

The rate of interest on Fixed Deposit Account is provided according to the

duration of deposit period. The fixed Deposit Receipt is provided to the depositor,

in lieu of passbook or cheque book. Once the deposit period mature, the interest

and principal of the Account is credited to the depositor saving or current

Account and thereafter, Fixed Deposit Account is automatically closed.

4.2. CONCLUSION

So from the study and analysis of the data of the fixed deposit of NBL it

can be said that the percentage of depositing money in the fixed deposit has

been decreasing day by day. It can be said that the bank has not been able to

utilize the collected saving according to the borrower and nation requirement.

Since in these few years economy is going through recession it has resulted in

the drastic decrease in the interest rate provided by commercial banks including

NBL. It will be profitable for NBL if it provides more amount of long term and

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medium term loan. Though full effort is given to make this study meaningful and

weighty, some mistakes might have occurred due to time shortage.

4.3 RECOMMENDATION

After the study of the different data provided by NBL and the data

collected from different sources about NBL there are some recommendation

referred to NBL which may help it in further development:

a) As this is the modern competitive, customers want more improved

services so bank should attract more depositors by providing

improved and new services and facilities.

b) The banks should use modern instrument to perform the banking

activities.

c) The bank must employ only required number of employees

otherwise it may create a big problem in bank.

d) The Bank should also provide more attention towards the priority

sectors and also provide the industrial scheme for the development

of the economic condition of the country.

e) The bank must not invest only in one sector; different sector should

be selected of the investment.

g) Since it has certain responsibility towards the country, it must work

for the economic development of the country.

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BIBLIOGRAPHY

1. Vaidya Shakespeare: - Money & Banking (Published by Pratibha Joshi

December 1997)

2. Nepal Rastra Bank: - Banking and Financial Statistic (Published Under

Banking Operation Department)

3. Dr. Joshi Shyam Dr. Hari Prasad Shrestha: - Principle of Banking and

Insurance (Published by Teleju Prakshan 2058)

4. Nepal Bank Limited: - Bank Patrika and Annual Report (Published by Nepal

Bank Limited)

5. Pant R. Prem: - Field Work Assignment and Writing (Published by Veena

Academic Enterprise Pvt. Ltd. Kathmandu)

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