Tribhuban University Field report in BBS

Background

According to new syllabus designed by faculty of management T.U. under the sectorial area or elective course. I have chosen the subject of “project management” in Nepal which carries 100 marks with theoretical and practical portion. On which theoretical parts obtain 75 marks with 25 marks in practical parts for fulfilling the requirement of practical parts all subject have to prepare a field work report.

I have selected the topic “Total deposit collection system of Nepal Bank Ltd, janakpur”. I have chosen this to know the total deposit collection by the NBL because it is the oldest and popular bank of Nepal which has been serving since 72 years. To provide the loan is known as loan providing system. Today, it is known as portfolio management. In this the bank selects the sector where it’s loan in returned in very short period and gets the maximum profits. Since fiancé is taken as the life blood of any business it is the banks have been started on loan. Loan plays an important role in establishing new business or organization. It helps the businessman, organization or industrialist to develop the business, trade and markets. All these things are formed as economic condition of this area. So I have selected the topic “Total deposit collection system of Nepal Bank Ltd, janakpur”.

The word “BANK “derives from a Latin word “BANCUS” which refer to the bench on which the Banker would keep it money and records. In ancient the 5^th century B.S. has practices of various banking function which similar to those of modern banking system in the 7^th century revival practices banking took place only toward the beginning of 12^th century A.D. the “Bank of Venice” was the first public banking institution establish in 1157A.D. in Venice Italy. After this some other bank were establish but did not survive fir the long time. After that in 1634 banking system? The 20^th century is observed in development if various banking

 Institution highly specialization particularly in advance country like USA, UK, GUIF and other.

In Nepal, the origin of commercial of activities can be traded to ancient Nepal. The institution from of commercial banking activities has been performed at the first instance by the established of “Tejarath adda” during 1993. Afterward the establishment of NBL in 1994B.S. was the first modern change in banking of Nepal.

1.2               Purpose of the study:

Every work has any purpose behind one cannot do any progressive work without any purpose. Account to the new course of BBS 3^rd year, on the concentration area of accounting group we have to study about the field management. On this study we have to go through the deep study of any one function of an organization what is deep and do work for the welfare of country. The positive and negative factors of it are for social environment. This is very positive step by T.U. to make student practically well known awake of theoretically aspects their main purpose are as follows:

·        To known the types and procedure of loan providing system.

·        To known how to invest collected amount in the loan providing system.

·        To known the term of its cash collection techniques.

·       To known how to arrange payment in international business transaction.

1.3            Importance of the study

Nowadays a role of wealth is as the needs of blood in the body. As blood is important body. Wealth takes an important place in the life. So wealth does some

 Function in the life, which is done by the blood in the body, wealth takes an important place in different area idle agriculture business and industries.

Bank plays a role of mediator between the loan provider and loan taken for the development of whole country it is not only by the development of any area, the development is done in some ratio of each area. Capital is one of the important components which are needed for the development of country economic condition.

1.4            limitation of study

The problem and difficulties arises during the time of field work report making can be timed as the limitation on study.

Following are the certain limitation observed in the study of field work.

v In the fear of disclose of secrets of bank, hesitate to give required information especially this problem is found in the bank.

v Since bank’s staffs are busy in their work, they mostly ignore giving data at one approach, and they also could not give much time for discussion there for everything may not be clearly.

v It is difficult to fulfill the report under their required limit of paper as instructed

v Problem arises in the collection of secondary data.

v Making field work report is very expensive.

1.5      procedure of field work: 

To prepare the field work report we have to go through different stages. Which are mentions below?

Ø   Attention oriented class

Ø   Selection of topic

Ø   Receive authority letter from campus

Ø   Known as the necessary information from the related teacher

Ø   Ask the necessary information from the related organization collection of required data

Ø   Make a type after preparation of field work report

Ø   Submitted in the campus after making a type

1.6      literature review

This field work report is only with the help of my friend, different newspaper, textbook, reference book, senior student and information of RBB and subject related book and teacher.

            To complete the field work report concern bank staff and bank’s annual books provided very helpful. Hope this field work report will be varying satisfactory although my writing is very small in each topic.

1.7      data collection method:

            The procedure of data collection plays vital role in the preparation of field work report. There are several ways to collection data, but in preparation of this field report data taken from two sources which are as follows:

a)     Primary data:

The data collection for the first time by the investigator from the field of inquiry is called primary data. It is original in characters and these data are like a raw material. These are different method of collection primary data such as

ü Personal contact

ü Oral interview

ü Information from correspondent

ü Mail questionnaire

ü Questionnaire through enumerators

In the preparing this field report only direct personal contact and oral interview methods are used. Data information is collected by making direct questionnaire and interviewing with branch managers and related section staff of bank.

b)    Secondary data:

The data prepared by highly skilled manpower is called secondary data. In other words, the data which are initially collected by indirect source (e.g. CBS), someone else but obtained from published or unpublished sources are secondary data. These data are not original in character. The sources helping as secondary data for the presentation of this field work report. In the annual book published by bank official records and newspaper there are different methods of collection secondary data such as

·        Estimated of books and newspaper etc.

·        Publication of different organization, school and collage

·       Record field from government of non-government office and their publication.

Deposit

Like sales to a manufacturing organization, deposit mobilizations are the key factor to any bank. It is only on the basis of the resources mobilized, that banks can plan their activities.

A bank is essentially an intermediary of short-item funds. It can carry out extensive leading operation only when it can efficiently channels the saving of the community. A good banker is one who efficiently mobilized the saving of the community as well as makes use of such saving by making it the growth and development of the nation’s economy. The main financial resources of any commercial bank and deposits bank will collect deposits without deposits a commercial bank cannot operates its business. Traditionally, the bankers used to accept three types of deposits, i.e. current, fixed and saving deposits. But because of the intense competition of resources, there are a variety of other innovations introduced by the bankers in the recent times, on the basis of interest payments, deposit can be classified into two types. They are:

A.    Interest bearing deposits:

Deposits in which banks are required to pay interest are known as interest bearing deposits. There are different types of interest bearing deposit according to their nature, time-period and purpose and their interest rates also vary. The call deposit and recurring or cumulative deposit.

B.    Noninterest bearing deposits:

Deposits in which banks do not pay interest are known as non interest bearing deposit. There are different types of non interest bearing deposits according to their purpose or demand deposits.

2.2              Current deposit:

A current deposit account is running account with accounts being paid into and drawn out of the account continuously. There accounts are also called demand deposits or demand liabilities since the banker is under an obligation to pay the run until the customer on the bank for the payment of deposits makes a demand. These accounts are generally opened by business houses, public institution, corporate bodies and other organization whose banking transactions are memorized and frequent.

            Demand deposits are the obligation of bank to pay a certain sum of money a specified individual (the depositors) on demand. The deposits as we know, is a claim against the bank by the depositor, a debt owned by the bank to the depositors. The claim is available to the depositors not chiefly because it can be converted into cash but because it can be transferred to others as a means of payments. The depositors keep their money in a bank mainly for the sake of convenience in transaction and settlement of debts. Demand deposits are, therefore almost as good as cash money. The depositors can converts a part or whole of the current deposit account into currency notes at any time.

            Among the various types of deposits, a current deposit is also one deposits facility provided by NBL. As defined earlier, sufficient cash reserves are required to the maintained in order to fulfill the demand of the depositors in time. Sources the bank has to maintain sufficient cash balance all the time, it provides no interest to the depositors. The need not pay interest rates as in the case of other deposits like fined deposit, saving deposit, recurring deposit etc. since current accounts are generally opened by business houses, public institution, corporate bodies and other organization, the customers of BNL

            Operating expenses- although there is no interest transaction in case of current deposit account, the incidental expenses involved in keeping the account for this purpose, the bank charges Rs. 200 to its account holder for cheque that does not meet the balance amount and charges Rs. 300

If he account is no be closed.

            Minimum balance is the minimum account of balance that the bank requires from the depositors while opening the account in NBL Janakpur branch, the account holder most maintain the minimum balance of Rs. 5000 in order to open the current deposit account.

            Overdraft facility-overdraft is the extra amount that the deposit draws on the bank, which is greater than his balance amount. NBL also provides overdraft facility to its good customers, in case of current deposit against securities as collateral. The person drawing an over draft required providing government guarantees and other necessary securities as collateral to prevent the bank from any kind of looses resulting thereafter.

Banking Services OF NEPAL BANK LTD

Banking services to current account holders:

Normally the bank does not provide any special service to its current amount holders. The bank just accepts deposits, hold and furnishes deposits on diamond. The bank only on the general functions necessary to carry on the current deposits transaction. But the bank provides sum of the banking services to its good and prime customers. These include services like special charges are free whole transferring money by telex, transferring

Money by drafts by travel cheques and by their drafts. But only good and prime customers are bestowed with such facilities. 

    Significance of total deposits:

            Today the banking business has become more complex and comparative. Comparative is an inescapable and unavoidable thing, which is faced by all leading business. In order to survive in this competitive world every business should provide quality service at the satisfaction of its customers. As every business houses, corporate bodies, public institution etc. faced difficulties in dealing with each and every transaction of money bank services for this purpose by providing current deposit account. The current deposits account facilitates easy business transaction and there by promoting the development of business resulting in an economic growth and development of the country. The current deposits account is significant for the growth, development and promotion of the country, making it ecumenically viable and sound. Similarly, total amount of collected do not keep as cash reserves. Some amount of the current deposits account is utilized in advancing loans to the productive and priority sector of the country. This is turn, leads to a regional and balanced development of the country. Likewise, a current deposit is also significant for much other purpose like in providing employment opportunities, for transfer of fund reserve as the storehouses of cash and so on.