Deposit mobilization of commercial banks: A comparative study of NABIL and NIBL

Abstract

Deposit mobilization is an integral part of banking activity. Mobilization of savings through intensive deposit collection has been regarded as the major task of banking. Acceptance of deposits is the primary function of commercial banks. As such, deposit mobilization is one of the basic innovations in current banking activity. Hence, in this paper, an attempt is made to evaluate the trend and growth in deposit mobilization of scheduled commercial banks in the period from 2070/071 to 7074/075 B.S. Different types of deposits, namely current deposit, savings deposit, fixed deposit, call deposit and margin deposit is considered for the study taking NABIL and NIBL. The total number of deposits accounts and total amount of deposits mobilized during the year from 2070/071 to 2074/075 in all scheduled commercial banks is gathered from NRB Annual report. The collected time series data are subjected descriptive and analytical research design. Different responsible factor for deposit mobilization of Nabil Bank Ltd (nabil) and Nepal investment bank ltd(nibl) has been analyzed by collecting secondary data. Correlation coefficient between deposits and loan & advances indicates the positive relationship between the variables of NABIL and NIBL. In most of the cases it has been found that investment decision depends upon the deposits and only few decisions depend upon other variables. By considering the probable error, the value of coefficient of determination of both banks is greater than that of 6 P.E. so it can be concluded that the value of correlation coefficient is significant i.e. there is significant relationship between total deposits and loan and advances for NABIL as well as NIBL.