Author(s): Wadesango Newman, Faith A Nkhambala, Stephen Malatji
A background of continuously rising trend in the bank’s deposits and profits has been a major cause for concern as questions have been raised as to whether or not the two variables have a relationship. The purpose of the study was therefore to establish the effects of depositor’s funds on the performance and growth of financial institution a sample size of twenty-eight employees from BancABC was used as well as two managers from the bank. The research used primary sources of collecting data. To choose the sampling units stratified-random sampling method was used and data were collected using questionnaires and structured interviews. Data were processed by use of descriptive statistics after editing have been done. The computer software SPSS latest version was used as a device to accommodate analysis. The findings indicated that there is a positive significant relationship between deposits and performance of the bank. The findings also showed that there are variables that affect the deposits and in turn profitability, it showed that a positive change in deposits interest rate affects the level of deposits received and later on the profitability of the bank. Based on this, the study recommends the bank to develop strategies towards marketing and mobilisation of more deposits as they are indispensable tools towards the profitability of the bank.