Abstract:
Deposit mobilization and loan disbursements are the most fundamental activity and the life
blood of financial institution performance, particularly, the Banking industry. In view of this,
the study tested analysis of employee’s perception on the impact of deposit mobilization and
loan disbursement on the financial performance. The study employed mixed research
approach and cross-sectional survey research design. Data was collected through primary
(administration of questionnaire and an in-depth interview) and also secondary sources. The
study is finding out the deposit mobilization and loan disbursement has a correlation and a
significant impact on financial performance. Financial performance has a strong correlation
with DM and moderate correlation with LD variables. Finally, the study revealed that Banks
Branches managers’ conducted the deposit mobilization and loan disbursement with no
pledged management recognition and staff , inadequate service provide, and lack of society
awareness were major challenges of DM and LD that affect the financial performance. Based
on the findings and conclusion the banking industry should attract deposit and loan by
Improving the management and employees’ commitments, providing convenience
technologies and enhance awareness of society about the bank service, provide accessible
banking service through expanding number of branches, introduce and enhance E-banking
such as internet banking, card banking mobile banking.
