Deposit mobilization essay

Deposit mobilization and sectoral allocation of bank credits

The commercial banks play an important role in the modern economy. Women by far have less access to all kinds of financial services formal and informal as compared to men. The Banking industry is yet to take the impact of these floods which could actually hit the SME sector in a very terrible manner, the impact of which would hit the dec results. Nepal Credit and Commerce Bank Ltd. People deposit cash in the banking system and thereby convert one form of money, cash, into another form, bank money. The first bank in India, though conservative. This is not an exclusive usage category; adults in this group may also be currently using one or more "formal-other" or "informal" products. Metropolitan Bank, from October to September , remained a highly rated bank and with its nationwide branch on-line network, established as a distinguished provider of trade finance services. Financially Excluded and informally served depend on elder brother, father and other family members. In other words, they are intermediate between lender and receiver of fund they mobilize the depositor fund. In Nepal, the process of development started only after A.

Bai-Istisnaa Bai-Istisnaa is a contract of acquisition of goods by specification or order where the price is paid progressively in accordance with the progress of a job.

Fund Utilization Techniques Profit Sharing Principle : Mudaraba short term : Profit sharing principle for Islamic business contracts is based on the Mudaraba principle in which the owner of the capital or entrepreneur for some business or productive activity on the condition that profits generated will be shared between them.

deposit mobilisation ppt

Domestic capital formation helps in making a country self sustainable. It must be kept in mind that these current and saving deposits actually lower the cost of deposits increasing your margin. The need is to gather the low cost deposits especially the current and saving deposits, for which there is a dire need to look for segments of customers which could provide such deposits, a white space in the economy.

To manage these shocks Pakistan immediately hurried to IMF for bailout package for more than 10 billion dollars while SBP played its role by increasing the discount rate and other statutory requirement to curb the rising inflation while relaxing the capital requirements for banks.

Green highlighted portion refers to the awareness and understanding about very basic financial terms used commonly in the population which generally is high. The aftershocks of the global meltdown in are still haunting the Banks in Pakistan, in shape of detoriation of quality loan portfolio.

It has generally been observed that the deposits of commercial banks have not been fully utilized. While the mix of high cost time and saving deposits has grown significantly.

The paper would highlight the problem as to why there is a need for HMB to get the deposits from unserved segments.

Deposit mobilization essay

The study is expected to be useful to different stakeholders as: 1. The study is expected to be useful to the government body, NRB for further research is the area to formulate and implement new policies and regulations. Commercial bank is a corporation which accepts demand deposits subject to check and makes short terms loans to business enterprises, regardless of the scope of its other services. How far the interest rates of deposits have positive relationship with the deposit collection of the bank? To hedge the risk, they are in need of derivative products and consequently of Future Exchanges. The study is expected to be useful to the other stakeholders to know the practices made over the deposit mobilization by the bank 5. The differentiating factors across the four segments show: Banked population relies largely on newspapers and colleagues at work.

Statement of Problem Nepal is underdeveloped country and rapid economic development is the basic need of the country.

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Deposit Mobilization of Commercial Banks