NSBL Final report ddp.docx

Customer Satisfaction with service of Nepal SBI Bank. 1

1. EXECUTIVE SUMMARY

Objective of the Project:

The aim of the project was to study and analyze the customer satisfaction about services

provided by Nepal SBI Bank Limited Patan branch. So as to suggest measures to improve the

customer satisfaction level.

Approach:

A primary and secondary data study was conducted. Through primary data, the satisfaction level

of customers was analyzed.

Findings:

In competitive market of banking sectors excellent services is playing prominent role to gain

large market share. Banks are focusing on excelling their services to satisfy their customer.

The study shows that customers of Nepal SBI bank are satisfied with the services provided by

the bank. Although the bank is able to satisfy their customers there are some aspects which have

been identified, that can be worked out which would strengthen the services of bank.

Suggestions:

As we know that finding is not the end of a research, so the suggestion part is covered which are

made after a depth study of the analysis. Some recommendations have been made after the

analysis to excel further the services of Nepal SBI bank Ltd. Patan branch.

Digar Dev Pandey, MBA-IB, FMS- BHU 2012


2. INTRODUCTION

2.1 HISTORY OF BANKING IN NEPAL

2.2THE BANKING INDUSTRY: CURRENT SITUATION

2.3 BANK AND FINANCIAL INSTITUTION IN NEPAL



2.1 HISTORY OF BANKING IN NEPAL

The word “Bank” has been derived from the Latin word “bancus”, Italian word “banca” or

French word “banque” which all give the same meaning that is “bench”. Since, people use to

perform the monetary transaction by sitting on the ‘bench’ at earlier time, the word ‘bank’

derived. Nowadays, banks are becoming so popular that large number of financial transactions

are performed daily such as, accepting deposits, providing loans, providing securities, remittance

facilities, taking guarantees, formulating capital, making regional balance, etc. In short, Bank is

an institution that deals with money and credits. It accepts the deposit from the general public

and advances it to those who really do need it. So, bank is that financial institution established to

serve the people in financial and other technical sector.

The history of banking in Nepal is believed to be started from the time of Prime Minister

Ranoddip Singh in 1877 A.D. he introduced many financial and economic reforms. The

Tejaratha Adda was established at that time and its basic purpose was to provide credit facilities

to the general public at a very concessional interest rate. The Tejarath Adda disbursed credit to

the people on the basis of collateral of gold and silver. All employees of government were also

eligible for this type of loan, which was settled by deducting from their salary. Tejaratha Adda

extended credit only; it did not accept deposits from the public.

But the real banking started with the establishment of Nepal bank limited in 1994 B.S which was

founded by Judda Samsher. It was the first bank of Nepal. Its main function was to provide

loans and accept deposits. Later Nepal Rastra Bank was established as a central bank in 2013

B.S. The bank was completely government ownership bank and it also started to issues notes

since 2016 B.S. Then after, several commercial banks have been established in the recent years.

In the context of Nepal, like as in other country the goldsmiths and landlord was the ancient

banker. The Nepalese people were highly exploited by Shahu Mahajan by charging higher



interest rate i.e. compound interest rate and even by manipulating the principal amount. If we try

to see the history of banking transaction in depth then evidence of money lending function are

found in practice before 8th century. In 780 B.S. Gunakamadev the ruler of Kathmandu

reconstructed Kathmandu valley by borrowing debt from the people. In 14th century Tanka dhari

system had been running in the period of Ranodip Singh in Kathmandu established an office

called Tejarath Adda. From this office the government distributed salary to their employees and

provided loans to government employment @ 5% of interest against the security of gold, silver,

etc.

Because of the development of economic activities in Nepal the above institution could not be

fulfilled the need of people. So in Kartik 30, 1994 B.S. Nepal Bank Limited was established as

one of the semi government commercial bank which had 10 million authorized capital and

842000 paid up capital. It has done the pioneering function in function spreading the banking

habits among the people. Having felt a need of central bank to control and direct the commercial

bank and help the government for making monetary policies Nepal Rastra Bank was set up in 14

Baisakh 2013 B.S.

To fulfill the growing credit requirement of the country, the commercial bank i.e. Rastriya

Banijya Bank was establish in 10th Bhadra 2022 B.S. This bank also provides facility for the

economic welfare of the general public. Nepal is an agriculture country to develop agriculture

system. Industry Agriculture Development Bank and Nepal Industrial Development Corporation

was established in 2024 B.S. and 2016 B.S. respectively.

The initiation of the financial sector; liberalization policy by Nepal Rastra Bank, a board of joint

venture banks entered with the view to accelerate the pace of development of nation. At present,

there are many joint venture banks which are running successfully in a competitive environment.

His majesty government (Govt. of Nepal) deliberates policy of allowing foreign joint venture

banks to operate in Nepal basically targeted, to encourage local tradition commercial bank to

enhance their capacity through competitor’s efficiencies mechanization modernization and

prompt customer service. Nepal Arab Bank LTD was established in 2041 as a first foreign joint

venture bank.



Nepal's first commercial bank, the Nepal Bank Limited, was established in 1937. The

government owned 51 percent of the shares in the bank and controlled its operations to a large

extent. Nepal Bank Limited was headquartered in Kathmandu and had branches in other parts of

the country.

There were other government banking institutions. Rastriya Banijya Bank (National Commercial

Bank), a state-owned commercial bank, was established in 1966. The Land Reform Savings

Corporation was established in 1966 to deal with finances related to land reforms.

There were two other specialized financial institutions. Nepal Industrial Development

Corporation, a state-owned development finance organization headquartered in Kathmandu, was

established in 1959 with United States assistance to offer financial and technical assistance to

private industry. Although the government invested in the corporation, representatives from the

private business sector also sat on the board of directors. The Co-operative Bank, which became

the Agricultural Development Bank in 1967, was the main source of financing for small

agribusinesses and cooperatives. Almost 75 percent of the bank was state-owned; 21 percent was

owned by the Nepal Rastra Bank and 5 percent by cooperatives and private individuals. The

Agricultural Development Bank also served as the government's implementing agency for small

farmers' group development projects assisted by the Asian Development Bank and financed by

the United Nations Development Program. The Ministry of Finance reported in 1990 that the

Agricultural Development Bank, which is vested with the leading role in agricultural loan

investment, had granted loans to only 9 percent of the total number of farming families since

1965 A.D.

Since the 1960s, both commercial and specialized banks have expanded. More businesses and

households had better access to the credit market although the credit market had not expanded.

In the mid-1980s, three foreign commercial banks opened branches in Nepal. The Nepal Arab

Bank was co-owned by the Emirates Bank International Limited (Dubai), the Nepalese

government, and the Nepalese public. The Nepal Indosuez Bank was jointly owned by the

French Banque Indosuez, Rastriya Banijya Bank, Rastriya Beema Sansthan (National Insurance

Corporation), and the Nepalese public. Nepal Grindlays Bank was co-owned by a British firm

called Grindlays Bank, local financial interests, and the Nepalese public.


http://lcweb2.loc.gov/frd/cs/nepal/np_glos.html#Asian


Nepal Rastra Bank was created in 1956 as the central bank. Its function was to supervise

commercial banks and to guide the basic monetary policy of the nation. Its major aims were to

regulate the issue of paper money; secure countrywide circulation of Nepalese currency and

achieve stability in its exchange rates; mobilize capital for economic development and for trade

and industry growth; develop the banking system in the country, thereby ensuring the existence

of banking facilities; and maintain the economic interests of the general public. Nepal Rastra

Bank also was to oversee foreign exchange rates and foreign exchange reserves.

Prior to the establishment of Nepal Rastra Bank, Kathmandu had little control over its foreign

currency holdings. Indian rupees were the prevalent medium of exchange in most parts of the

country. Nepalese currency was used mostly in the Kathmandu Valley and the surrounding hill

areas. The existence of a dual currency system made it hard for the government to know the

status of Indian currency holdings in Nepal. The exchange rates between Indian and Nepalese

rupees were determined in the marketplace. Between 1932 and 1955, the value of 100 Indian

rupees varied between Rs71 and Rs177. The government entered the currency market with a

form of fixed exchange rate between the two currencies in 1958. An act passed in 1960 sought to

regulate foreign exchange transactions. Beginning in the 1960s, the government made special

efforts to use Nepalese currency inside the country as a medium of exchange.

It was only after the signing of the 1960 Trade and Transit Treaty with India that Nepal had full

access to foreign currencies other than the Indian rupee. Prior to the treaty, all foreign exchange

earnings went to the Central Bank of India, and all foreign currency needs were provided by the

Indian government. After 1960 Nepal had full access to all foreign currency transactions and

directly controlled its exports and imports with countries other than India.

As a result of the treaty, the government had to separate Indian currency (convertible currency

because of free convertibility) from other currencies (nonconvertible currency because it was

directly controlled by Nepal Rastra Bank). In 1991 government statistics still separated trade

with India from trade with other countries. Tables showing international reserves listed

convertible and nonconvertible foreign exchange reserves separately

2.2THE BANKING INDUSTRY: CURRENT SITUATION



The tradition of official banking system in Nepal commenced with the establishment in 1937 of

Nepal Bank limited (NBL), the first Nepalese commercial bank. The central Bank (NRB) of

Nepal was established in 1956, by the act of 1955, after nearly two decades when NBL came into

existence.

A decade after the founding of NRB, Rastriya Banijya Bank (RBB), a commercial bank under

the ownership of HMG/N also came in operation. The existing set-up of the banking sector in

Nepal by mid-April of 2011, is that the number of licensed banks and financial institution

operating in Nepal has reached 219, including 31 commercial banks, 87 development banks, 80

finance companies and 21 micro finance banks which are providing financial services to the

public.

Only 12 per cent of the populations hold the deposits with the commercial bank. The per-capita

deposit by mid-April 2010 stood at 20,100 and the total deposits of bank was Rs 590.9 billion

In the recent times, the branches are being opened at rural areas where deposit growths are at a

slower pace. In the current situation, the banks branches have been concentrated in the urban

areas rather than the rural areas where people are still deprived of basic services. Financial

intermediaries have reduced the dependency of Nepalese households on money lenders for loans.

According to Nepal Living standard Survey (NLSS), 15.1 per cent of the total households

borrowed from the local money lenders, whereas previously fifteen years ago 39.7 per cent used

to borrow from the same institution.

Banking in Nepal has become an important feature which renders service to the people in

financial matters, and its magnitude of action is extending day by day. It is the major institutional

system in Nepal which carries out the financial flow within the economy.

The significance of banking in Nepal also highlights its importance with the introduction of e-

banking in the recent years. In a developing country like Nepal, most of the people are living

under the poverty line, and, as such, the banks should offer competent and reliable services to the

citizens.



Nepal is passing through a new arena in the field of institutional and governance reform. To

guarantee superb corporate governance in Nepal, it requires a collaborative effort

between the investors, board of directors, who should possess the quality of being sincere,

transparent, accountable and socially justifiable and the regulating body should efficiently

enforce rules and regulations in order to protect the right of the stakeholders. At the same time,

the share holders should be on constant vigilance and be actively aware and participate in their

corporate dealings to prevent deceitful practices from taking place. This integrated approach will

provide a tremendous ambiance to intensify excellent traditions of corporate governance.

Current flooding of corruption, discreditable action and corporate deception has evoked an

urgency to strike at the roots of the functional activities in the financial sector of Nepal. The most

recent collapse of a cluster of financial institutions defied the self-belief and created commotion

among the general public regarding depositing their hardly earned money in banks.

Only some months before Gurkha Development Bank, Nepal Share Market and finance company

and Capital Merchant Banking closed down their transactions and could not pay the depositors.

The public have conventional faith in banks and financial institutions for secure staying of their

savings, but the ones assigned with the money are monopolizing the funds at their whim

haphazardly.

This suspicion among the people has led to the loss of credibility of financial institutions. The

desperate and emotionally disturbed depositors of ill-fated bank are in a fix as to whom they

should ask for help. Scrutinizing the problematic state of affairs of the financial institution, the

Central Bank should exhibit its aggressiveness to bring back the lost track of bank and financial

institution.

Analyzing the critical problem the following measures should be taken by the Central Bank (a)

Supervising mechanism of Central Bank should be prompt, honest, sound and effective. (b)

Issuing of license of financial institution should be stopped. (c) Competitive and qualified



persons should be encouraged while electing board of directors. (d) The code of conduct should

be stringently followed by the board of directors. (e) A separate research wing for market

analysis and for policy formulation should be created. (f) Expenditure of the institution should be

well-matched with the income.

At this moment of pandemonium, it is a pressing need that the Central Bank displays its power of

action to alleviate the depositors’ problem and consequently preventing other banks and financial

institutions from crumbling down one after the other as soon as possible.

.2.3 BANK and FINANCIAL INSTITUTIOS IN NEPAL:

List of Bank and financial institution with Name, operation date, head office and paid up capital

is presented below

Class A: Commercial Banks

S.No. NamesOperation Date (A.D.)

Head Office Paid up Capital(Rs. '00 Thosands )

1 Nepal Bank Ltd. 1937/11/15 Kathmandu 3804

2 Rastriya Banijya Bank Ltd. 1966/01/23 Kathmandu 3853

3 Agriculture Development Bank Ltd. 1968/01/02 Kathmandu 94375

4 Nabil Bank Ltd. 1984/07/16 Kathmandu 20298

5 Nepal Investment Bank Ltd. 1986/02/27 Kathmandu 24091

6 Standard Chartered Bank Nepal Ltd.. 1987/01/30 Kathmandu 16102

7 Himalayan Bank Ltd. 1993/01/18 Kathmandu 20000

8 Nepal SBI Bank Ltd. 1993/07/07 Kathmandu 18693

9 Nepal Bangladesh Bank Ltd. 1994/06/05 Kathmandu 20103

10 Everest Bank Ltd. 1994/10/18 Kathmandu 11196

11 Bank of Kathmandu Ltd. 1995/03/12 Kathmandu 13595

12 Nepal Credit and Commerce Bank Ltd. 1996/10/14 Siddharthanagar, Rupandehi 13997

13 Lumbini Bank Ltd. 1998/07/17 Narayangadh,Chitawan 13000

14 Nepal Industrial & Commercial Bank Ltd. 1998/07/21 Biaratnagar,Morang 13116

15 Machhapuchhre Bank Ltd. 2000/10/03 Pokhara, Kaski 16272

16 Kumari Bank Ltd. 2001/04/03 Kathmandu 14850

17 Laxmi Bank Ltd. 2002/04/03 Birgunj, Parsa 16140

18 Siddhartha Bank Ltd. 2002/12/24 Kathmandu 15610



19 Global Bank Ltd. 2007/01/02 Birgunj, Parsa 15000

20 Citizens Bank International Ltd. 2007/06/21 Kathmandu 19223

21 Prime Commercial Bank Ltd 2007/09/24 Kathmandu 22457

22 Sunrise Bank Ltd. 2007/10/12 Kathmandu 18554

23 Bank of Asia Nepal Ltd. 2007/10/12 Kathmandu 15175

24 DCBL Bank Ltd. 2008/05/25 Kamaladi, Kathmandu 19209

25 NMB Bank Ltd. 2008/06/05 Babarmahal, Kathmandu 16517

26 Kist Bank Ltd. 2009/05/07 Anamnagar, Kathmandu 20000

27 Janata Bank Nepal Ltd. 2010/04/05 New Baneshwor, Kathmandu 14000

28 Mega Bank Nepal Ltd. 2010/07/23 Kantipath, Kathmandu 16310

29 Commerz & Trust Bank Nepal Ltd. 2010/09/20 Kamaladi, Kathmandu 14000

30 Civil Bank Litd. 2010/11/26 Kamaladi, Kathmandu 12000

31 Century Commercial Bank Ltd. 2011/03/10 Putalisadak , Kathmandu 10800

Class B: Development Banks

1 Nepal Industrial Development Corporation 1959/06/15 Durbar Marg, Kathmandu 41582 Uddyam Development Bank Ltd. 1999/11/11 Narayangadh, Chitawan 5003 Malika Development Bank Ltd. 1998/12/19 Dhangadhi, Kailali 20484 Siddhartha Development Bank Ltd. 1998/08/20 Tinkune, Kathmandu 64505 United Development Bank Ltd. 2002/03/16 Jeetpur, Bara 8026 Manakamana Development Bank Ltd. 2001/06/19 Durbar Marg, Kathmandu 100007 Narayani Development Bank Ltd. 2001/10/17 Ratna Nagar, Chitawan 6558 Pashimanchal Development Bank Ltd. 2003/03/02 Mitrapark, Rupandehi 33659 Sahayogi Bikas Bank Ltd. 2003/10/21 Janakpur, Dhanusha 75010

Pashupati Development Bank Ltd. 2004/01/01 Banepa, Kavre 6632

11

Karnali Bikash Bank Ltd. 2004/02/14 Nepalgunj, Banke 800

12

Triveni Development Bank Ltd. 2004/07/26 Narayangadh, Chitawan 1357

13

Annapurna Development Bank Ltd. 2004/08/23 Banepa, Kavre 6720

14

Bhrikuti Bikas Bank Ltd. 2004/08/19 Butawal, Rupandehi 2792

15

Shubhechchha Bikas Bank Ltd. 2004/09/14 Narayangadh, Chitawan 1008

16

Bageshowri Development Bank Ltd. 2004/10/19 Nepalgunj, Banke 594

17

Sanima Bikas Bank Ltd. 2004/11/26 Kamalpokhari, Kathmandu 20160



18

Gaurishankar Development Bank Ltd. 2004/11/29 Kawasoti, Nawalparasi 2100

19

Gorkha Bikas Bank Ltd. 2004/12/01 Putalisadak, Kathmandu 6608

20

Gandaki Bikas Bank Ltd. 2005/01/19 Pokhara, Kaski 2000

21

Infrastructure Development Bank Ltd. 2005/04/29 Banepa, Kavre 6607

22

Business Development Bank Ltd. 2005/05/10 Pokhara, Kaski 6901

23

Biratlaxmi Bikas Bank Ltd. 2005/05/11 Biratnagar, Morang 605

24

Excel Development Bank Ltd. 2005/07/21 Birtamod, Jhapa 800

25

Western Development Bank Ltd. 2005/09/15 Ghorahi, Dang 500

26

H. & B. Development Bank Ltd.** 2011/06/15 Kamalpokhari , Kathmandu 8979

27

Arniko Development Bank Ltd. 2006/07/06 Dhulekhel, Kavre 2000

28

NDEP Development Bank Ltd. 2006/07/17 Kamaladi, Kathmandu 5461

29

Clean Energy Development Bank Ltd. 2006/09/06 Sitapaila, Kathmandu 10550

30

Miteri Development Bank Ltd. 2006/10/13 Dharan, Sunsari 903

31

Tinau Bikas Bank Ltd. 2006/10/13 Butwal, Rupandehi 1000

32

Rising Development Bank Ltd. 2006/12/18 Gaidakot, Nawalparasi 1400

33

Muktinath Bikas Bank Ltd. 2006/12/18 Pokhara, Kaski 1300

34

Sewa Bikas Bank Ltd. 2007/02/25 Butawal, Rupandehi 1000

35

Kankai Bikas Bank Ltd. 2007/05/04 Damak , Jhapa 400

36

Public Development Bank Ltd. 2007/06/07 Birjunj , Parsa 1500

37

Ace Development Bank Ltd. 2007/08/15 Narayanchaur, Kathmandu 7505

38

Mahakali Bikas Bank Ltd. 2007/08/18Mahendranagar, Kanchanpur

356

3 Sangrila Bikas Bank Ltd. 2007/08/26 Newroad Pokhara, Kaski 2240



940

Bhargab Bikas Bank Ltd. 2007/08/30 Nepalgunj, Banke 600

41

Vibor Bikas Bank Ltd. 2007/10/04 Tripureshwor, Kathmadu 6818

42

Resunga Bikas Bank Ltd. 2007/09/26 Tamghas, Gulmi 306

43

Rara Bikas Bank Ltd. 2007/09/30 Birendranagar, Surkhet 2001

44

Diyalo Bikas Bank Ltd. 2007/10/01 Banepa, Kavre 1000

45

Country Development Bank Ltd. 2007/10/04 Banepa, Kavre 3200

46

Kasthamandap Development Bank Ltd. 2007/10/25 New Road, Kathmandu 3360

47

Alpine Development Bank Ltd. 2007/10/05 Hetauda, Makawanpur 1000

48

Nilgiri Bikas Bank Ltd. 2007/10/12 Beni, Myagdi 500

49

Corporate Development Bank Ltd. 2007/10/25 Birjung, Parsa 1400

50

Kamana Bikas Bank Ltd. 2007/09/29 Lekhnath, Kaski 2000

51

City Development Bank Ltd. 2007/10/19 Pokhara, Kaski 2000

52

Garima Bikas Bank Ltd. 2007/11/23 Pokhara, Kaski 2000

53

Biswo Bikas Bank Ltd. 2007/11/21 Pokhara, Kaski 2400

54

Pathibhara Bikas Bank Ltd. 2007/11/21 Urlabari, Morang 500

55

Professional Bikas Bank Ltd. 2007/10/17 Banepa, Kavre 1000

56

Kabeli Bikas Bank Ltd. 2007/11/15 Dhankuta 200

57

Purnima Bikas Bank Ltd. 2008/05/20 Sidhardhanagar, Rupandehi 1000

58

Jyoti Development Bank Ltd. 2008/08/25 Kamalpokhari, Kathmandu 7400

59

Shine Development Bank Ltd. 2009/02/22 Butawal, Rupandehi 1200

60

Bagmati Development Bank Ltd. 2009/03/23 Hariwon, Sarlahi 140



61

Hamro Bikas Bank Ltd. 2009/04/19 Battar, Nuwakot 210

62

Kakre Bihar Bikas Bank Ltd. 2009/05/15 Birendranagar, Surkhet 180

63

Pacific Development Bank Ltd. 2009/07/26 Beshishahar, Lamjung 374

64

Civic Development Bank Ltd. 2009/08/13 Dhadingbesi, Dhading 140

65

International Development Bank Ltd. 2009/09/04 Taku, Kathmandu 4480

66

Kanchan Development Bank Ltd. 2009/09/19Mahendranagar, Kanchanpur

700

67

Gulmi Bikas Bank Ltd. 2009/09/24 Tamghas, Gulmi 140

68

Bright Development Bank Ltd. 2009/10/08 Panouti, Kavre 980

69

Matribhumi Bikas Bank Ltd. 2009/10/09 Sindhulimadi, Sindhuli 154

70

Innovative Development Bank Ltd. 2009/11/13 Sidhardhanagar, Rupandehi 663

71

Jhimruk Bikas Bank Ltd. 2009/12/14 Bagdula,Pyuthan 120

72

Metro Development Bank Ltd. 2009/12/16 Pokhara, Kaski 700

73

Raptibheri Bikas Bank Ltd. 2010/01/15 Nepalgunj, Banke 600

74

Gaumukhi Bikas Bank Ltd. 2010/01/25 Bijuwar, Pyuthan 140

75

Nepal Consumer Development Bank Ltd 2010/02/5 Pokhara, Kaski 1400

76

Khandbari Development Bank Ltd. 2010/03/5 Khandbari, Sankhuwasava 175

77

Tourism Development Bank Ltd. 2010/03/18 Thamel, Kathmandu 4000

78

Mission Development Bank Ltd. 2010/06/15 Butwal, Rupandehi 700

79

Surya Development Bank Ltd. 2010/07/18 Charikot, Dolkha 140

80

Mount Makalu Development Bank Ltd. 2010/07/21 Basantapur, Terathum 140

81

Sindhu Bikas Bank Ltd. 2010/09/09 Barhabise, Sindhupalchowk 510

8 Social Development Bank Ltd. 2010/10/12 Naxal, Kathmandu 3827



283

Sahara Development Bank Ltd. 2010/10/27 Mahangawa,Sarlahi 140

84

Nepal Community Development Bank Ltd. 2010/11/03 Butwal, Rupendehi 700

85

Cosmos Development Bank Ltd. 2010/11/17 Gorkhabazar, Gorkha 175

86

Manasalu Development Bank Ltd. 2010/12/14 Buspark, Gorkha 700

87

Samabriddhi Development Bank Ltd. 2010/12/31 Gajuri,Dhading 700

Class C: Finance Companies

S.No. NamesOperation Date (A.D.)

Head Office

Paid up Capital(Rs. '00

Thosands )

1 Nepal Housing Development Finance Co.Ltd. 1992/03/08 Bijulibazar, Kathmandu 16762 Nepal Finance Ltd. 1993/01/06 Kamaladi, Kathmandu 11143 NIDC Capital Markets Ltd. 1993/03/11 Kamalpokhari, Kathmandu 22244 Narayani National Finance Ltd. 2009/11/01 Kalikasthan, Kathmandu 64755 Annapurna Finance Co.Ltd. 1993/09/30 Pokhara, Kaski 70436 Nepal Share Markets and Finance Ltd. 1993/10/19 Ramshahapath, Kathmandu 203437 Peoples Finance Ltd. 1993/04/15 Mahabauddha, Kathmandu 28908 Mercantile Finance Co. Ltd. 1994/11/10 Birgunj, Parsa 1809 Kathmandu Finance Ltd. 1994/11/10 Dillibazar, Kathmandu 135610

Himalaya Finance Ltd. 1993/11/11 Sundhara, Kathmandu 1400

11

Union Finance Ltd. 12/12/1995 Kamaladi,Kathmandu 1759

12

Gorkha Finance Ltd. 1995/03/12 Hattisar, Kathmandu 1440

13

Paschhimanchal Finance Co.Ltd. 1995/04/09 Butawal, Rupandehi 1488

14

Nepal Housing & Merchant Finance Ltd. 1995/04/11 Dillibazar, Kathmandu 2203

15

Universal Finance Ltd. 1995/04/27 Kantipath, Kathmandu 1518

1 Samjhana Finance Co. Ltd. 1995/05/03 Banepa, Kavre



617

Goodwill Finance Ltd. 1995/05/16 Dillibazaar, Kathmandu 3000

18

Siddhartha Finance Ltd. 1995/05/25 Siddarthanagar, Rupandehi 1309

19

Shree Investment & Finance Co. Ltd. 1995/06/01 Dillibazar, Kathmandu 1391

20

Lumbini Finance & Leasing Co. Ltd. 1995/06/26 Thamel, Kathmandu 2681

21

Inbesta Finance Ltd. 1995/07/17 Birgunj, Parsa 240

22

Yeti Finance Ltd. 1995/07/23 Hetauda, Makawanpur 1610

23

Standard Finance Ltd. 1995/07/23 Narayanchaur, Kathmandu 10019

24

International Leasing & Finance Co. Ltd. 1995/10/31 Naya Baneshwor, Kathmandu 20088

25

Mahalaxmi Finance Ltd. 1995/11/26 Putalisadak, Kathmandu 4200

26

Lalitpur Finance Co. Ltd. 1995/12/12 Lagankhel, Lalitpur 1879

27

Bhajuratna Finance & Saving Co. Ltd. 1996/01/09 Kantipath, Kathmandu 385

28

United Finance Co. Ltd. 1996/1/25 Durbarmarg, Kathmandu 3508

29

General Finance Ltd. 1996/02/02 Chabahil, Kathmandu 959

30

Merchant Finance Co. Ltd. 1996/01/02 Newroad, Kathmandu 300

31

Alpic Everest Finance Ltd. 1996/07/16 Kathmandu Mall, Kathmandu 937

32

Nava Durga Finance Co.Ltd. 1997/02/09 Itachhe, Bhaktapur 1266

33

Janaki Finance Co. Ltd. 1997/03/07 Janakpurdham, Dhanusha 975

34

Pokhara Finance Ltd. 1997/03/16 Pokhara, Kaski 3120

35

Central Finance Ltd. 1997/04/14 Kupondole, Lalitpur 1684

36

Premier Finance Co. Ltd. 1997/05/08 Kumaripati, Lalitpur 1207

37

Arun Finance Ltd. 1997/08/17 Dharan, Sunsari 1500



38

Multipurpose Finance Co. Ltd 1998/3/25 Rajbiraj, Saptari 150

39

Butwal Finance Ltd. 1998/06/21 Butawal, Rupandehi 2068

40

Shrijana Finance Ltd. 1999/12/14 Biratnagar, Morang 280

41

Om Finance Ltd. 2000/09/17 Pokhara, Kaski 2468

42

CMB Finance Ltd. 2000/11/20 Kamalashhi, Kathmandu 1500

43

World Merchant Banking & Finance Ltd. 2001/08/10 Hetauda, Makawanpur 1820

44

Capital Merchant Banking & Finance Co. Ltd. 2002/02/01 Battisputali, Kathmandu 9351

45

Crystal Finance Ltd. 2002/02/13 Thapathali, Kathmandu 700

46

Royal Merchant Banking & Finance Ltd. 2002/02/14 Durbarmarg, Kathmandu 2939

47

Guheshworil Merchant Banking & Finance Ltd. 2002/06/13 Pulchowk, Lalitpur 1353

48

Patan Finance Co. Ltd. 6/23/2002 Pulchowk, Lalitpur 1000

49

Fewa Finance Ltd. 2003/04/30 Pokhara, Kaski 2730

50

Everest Finance Ltd. 2003/07/02 Siddharthanagar, Rupandehi 480

51

Prudential Finance Company Ltd 2003/06/06 Dillibazar, Kathmandu 2931

52

ICFC Finance Ltd. 2003/06/15 Bhatbhateni, Kathmandu 3294

53

IME Financial Institution Ltd. 2005/08/01 Panipokhari, Kathmandu 3599

54

Sagarmatha Merchant Banking and Finance Ltd 2005/08/29 Maanvawan,Lalitpur 1375

55

Shikhar Finance Ltd. 2005/09/15 Thapathali,Kathmandu 995

56

Civil Merchant Bittiya Sanstha Ltd. 2005/09/18 Kuleshwor,Kathmandu 1300

57

Prabhu Finance Co. Ltd. 2006/02/16 Lainchur,Kathmandu 4080

58

Imperial Finance Ltd. 2006/03/08 Thapathali,Kathmandu 1200

5 Kuber Merchant Finance Ltd. 2006/03/24 Kamalpokhari, Kathmandu 1752



960

Nepal Express Finance Ltd. 2006/05/04 Sundhara, Kathmandu 1196

61

Valley Finance Ltd. 2006/05/11 Maharajgunj,Kathmandu 1280

62

Seti Bittiya Sanstha Ltd. 2006/06/07 Tikapur, Kailali 400

63

Hama Merchant & Finance Ltd. 2006/06/16 Tripureshwor, Kathmandu 2000

64

Reliable Finance Ltd. 2006/09/06 Sundhara, Kathmandu 1980

65

Loard Buddha Finance Ltd. 2006/11/19 Fasikeb, Kathmandu 1307

66

Api Finance Ltd. 4/25/2007 Pokhara, Kaski 600

67

Nameste Bitiya Sanstha Ltd.. 2007/07/07 Ghorai, Dang 142

68

Kaski Finance Ltd. 2007/07/30 Pokhara, Kaski 1500

69

Suryadarshan Finance Co. Ltd. 2007/07/30 New Baneshor, Kathmandu 1000

70

Zenith Finance Ltd. 2007/10/08 Newroad, Kathmandu 1344

71

Unique Financial Institution Ltd. 2007/10/12 Putalisadak, Kathmandu 1000

72

Manjushree Financial Institution Ltd. 2007/10/15 New Baneshor, Kathmandu 1259

73

Swostik Merchant Finance Company Ltd. 2007/10/16 Kichapokhari, Kathmandu 1000

74

Subhalaxmi Finance Ltd. 2007/11/11 Naxal, Kathmandu 2000

75

Jebil`s Finance Ltd. 2009/10/28 New Road, Kathmandu 1020

76

Reliance Finance Ltd. 2009/12/03 Pradarsani Marg, Kathmandu 1400

77

Lotus Investment Finance Ltd. 2010/04/11 Newroad, Kathmandu 1200

78

Baibhab Finance Ltd. 2011/01/24 Naya Baneshwor , Kathmandu 1470

79

Bhaktapur Finance Ltd. 2011/02/08 Chyamsing ,Bhaktapur 1250



Class D: Micro Credit Development Banks

1 Purbanchal Grameen Bikas Bank Ltd. 1993/03/28 Biratnagar, Morang 6002 Sudur Pashimanchall Grameen Bikas Bank Ltd. 1993/03/28 Dhangadhi, Kailali 5853 Pashimanchall Grameen Bikas Bank Ltd. 1995/04/01 Butawal, Rupandehi 6604 Madhya Pashimanchal Grameen Bikas Bank Ltd. 1995/04/01 Nepalgunj, Banke 6835 Madhymanchall Grameen Bikas Bank Ltd. 1996/07/08 Janakpur, Dhanusha 10006 Nirdhan Utthan Bank Ltd. 1999/04/13 Siddharthanagar, Rupandehi 17407 Rural Microfinance Development Centre Ltd. 1996/12/06 Putalisadak, Kathmandu 32008 Deprosc Microfinance Development Bank Ltd. 2001/07/03 Ratnanagar, Chitwan 4259 Chhimek Microfinance Development Banks Ltd. 2001/12/10 Hetauda ,Makawanpur 123410

Shawalamban Laghu Bitta Bikas Banks Ltd. 2002/02/22 Janakpur, Dhanusha 1159

11

Sana Kisan Vikas Bank Ltd. 2002/03/11 Subidhanagar, Kathmandu 1288

12

Nerude Laghu Bitta Bikas Bank Ltd. 2007/06/07 Biratnagar, Morang 400

13

Naya Nepal Laghu Bitta Bikas Bank Ltd. 2009/03/20Dhulekhel, Kavrepalanchock

140

14

Mithila Laghu Bitta Bikas Banks Ltd 2009/04/29 Dhalkebar,Dhanusha 165

15

Summit Microfinance Development Bank Ltd 2009/05/20 Anarmani, Jhapa 140

16

Sworojagar Laghu Bitta Bika Bank Ltd 2009/12/1 Banepa, Kavre 110

17

Frist Microfinance Development Bank Ltd 2009/12/28 Gyaneshwor, Kathmandu 700

18

Nagbeli Microfinance Development Bank Ltd 2010/02/04 Anarmani, Jhapa 100

19

Kalika Microcredit Development Bank Ltd. 2010/07/21 Waling, Syanja 120

20

Mirmire Microfinance Development Bank Ltd. 2010/09/23 Banepa, Kavre 140

21

Janautthan SamudayikMicrofinance Dev. Bank Ltd.

2010/11/09 Butwal, Rupandehi 110



3. ORGANIZATIONAL PROFILE

3.1 OVERVIEW

3.2 VISION AND MISSION

3.3 ASPIRATION

3.4 COMMITMENT

3.5 STRATEGIC OBJECTIVE

3.6 CORPORATE INFORMATION

3.7 BOARD OF DIRECTORS


3. Organizational


3.8 ORGANIZATION STRUCTURE

3.9 CORPORATE GOVERNANCE STRUCTURE

3.10 RISK MANAGEMENT STRUCTURE

3.11 DEPOSIT AND ACCOUNT

3.12 ACCOUNT INFORMATION

3.13 ADVANCES

3.14 OTHER PRODUCT AND SERVICES

3.14.1 REMITTANCE

3.14.2 CARD

3.14.3. ALTERNATIVE DELIVERY CHANNELS

3.15 BRANCHES

3.16 MANAGEMENT TEAM

3.17 HEAD OF DEPARTMENTS AND UNITS

3.18 FINANCIAL HIGHLIGHTS

3.19 SWOT ANALYSIS

3.20 OVERVIEW OF PATAN BRANCH



3.1 OVERVIEW:



Nepal SBI Bank Limited is a major national level financial services provider engaged in various

retail and commercial banking services. Nepal SBI Bank Ltd. (NSBL) is the first Indo- Nepal

joint venture in the Nepalese financial sector sponsored by three institutional promoters, namely

State Bank of India (SBI), Employees provident Fund and Agriculture Development Bank of

Nepal through a memorandum of understanding signed on 17th July 1992. NSBL was

incorporated as a public limited company at the office of company registrar on April 28, 1993

under the registration number 17-049/50 with an authorized capital of Rs 12 crore and and was

licensed by Nepal Rastra Bank on July 6,1993 under license number Nrb/i.pa./7/2049/2050.

NSBL commenced operation with effect from July 7, 1993 with one full-fledged office at

durbarmarg, Kathmandu with 18 staff member. The staff strength has since increased to 511.

Under the Bank and financial institutions Act, 2063, Nepal Rastra Bank Granted fresh license to

NSBL classifying as an “A” class financial Institution on April 26, 2006 under license number

NRB/I.Pra.ka.7/62/63. The authorisied Issued and Paid up capital have been increased to Rs 200

crore, Rs 186.93 crores and 186.93 crores, respectively.

The Management team and managing director who is also the CEO of the bank are deputed by

SBI. NSBL work as subsidiary of State Bank of India—India’s largest bank in almost any

benchmark and business parameters, with over 203 years of history and expertise in banking—

which has 55 percent of ownership and rest held by a local partner Employee Provident Fund

(15%) and general public (30%).

In terms of the Technical Services Agreement concluded between SBI and the NSBL, SBI

provides management support to the bank through its expatriate officers including Managing

Director who is also the CEO of the Bank. Central Management Committee (CENMAC)

consisting of the Managing Director, Chief Operating Officer, Chief Financial Officer and Chief

Credit Officer oversee the overall banking operations in the Bank.

Now NSBL consist of a team of nearly 580 people, move, lend, invest and protect money of over

350,000 customers nationally and worldwide. Since its inception on July 7, 1993, Bank is

continuously upgrading quality of its service delivery and customer satisfaction with the help of

state-of-the technology. Extending the reach to 27 districts through our 59 physical outlets

including 50 branches, 6 extension counters and three administrative offices, we are among



largest private banks in Nepal. In addition, we serve our valued customers through e-delivery

points like Mobile Banking, Automated Teller Machines (ATMs) and Online Banking service

for both corporate and retail clients.

3.2 VISION AND MISSION

Over the years, we have grown larger and stronger - in terms of business, geography and

resources. This was achieved by relying on the fundamentals. Our achievements are founded on

basic banking norms - quality, consistency and transparency of capital base, sound liquidity, a

robust risk management framework coupled with the practice of good corporate governance and

above all the tireless focus on customer satisfaction.

3.3 ASPIRATION

THE BANKER TO EVERY NEPALI

3.4 COMMITMENT

FIRST IN CUSTOMER SATISFACTION

3.5 STRATEGIC OBJECTIVES

The key elements of overall strategic goal are to build an open and honest corporate culture and

to engage actively on mutual beneficial relationship with all stakeholders to create value for

them. Bank aim to achieve strategic goal by achieving following six key objectives:



To care of customers’ evolving needs and expectations by providing suitable product and

services.

To create a great place to work

To practice exemplary governance and accountability.

To work in harmony and in mutual satisfaction with our business partners.

To provide returns on the investment of our owner.

To invest in local communities in which we operate for the benefits of the society at large



3.6 CORPORATE INFORMATION



Full Name of the Company:

Nepal SBI Bank Limited

Legal Form:

A Public Limited Company incorporated at the Office of Company Registrar, Kathmandu Nepal on April 28, 1993 under Regd. No. 17-049/50 and was licensed by Nepal Rastra Bank on July 6, 1993 under license No NRB/L. Pa. /7/2049/50 and classified as ‘A’ class licensed institution on April 26, 2006 under license No. NRB/I.Pra.Ka.7/062/063.

Commencement of Business:

July 7, 1993

Accounting Year: Mid-July-Mid July (Shrawan 1st - Ashad End)

Permanent Account Number:

300323003

Stock Exchange Listing:

The Ordinary Shares and Redeemable Debentures (carrying fixed interest rate) of the company listed on Nepal Stock Exchange.

Registered Office:Bagmati Zone, Kathmandu District, Kathmandu Metropoliton City, Ward No. 1

Corporate Office:

Nepal SBI Bank LimitedCorporate Office, Hattisar, KathamnduTel No: 4435516, 4435613, Fax No: 4435612Email: [email protected] Url: www.nepalsbi.com.np

Board of Directors:

Ms. Hasana Sharma, Chairperson (Employee Provident Fund Nominee)Mr. Hemant G Contractor, Director (State Bank of India Nominee)Mr. Rajan Srinivasan, Director (State Bank of India Nominee)Mr. Vijay Jasuja, Director (State Bank of India Nominee)Mr. M. K. Agrawal, Director (Representative of General Public)Mr. Niranjan K Tibrewala, Director (Representative of General Public)Mr. Keshav Raj Acharya, Director (Professional Expert Director)Mr. Alok Kumar Sharma, Managing Director (State Bank of India Nominee)

Central Management

Mr. Alok Kumar Sharma, Managing DirectorMr. V.K. Tyagi, Chief Operating Officer


http://www.nepalsbi.com.np/

mailto:[email protected]


Committee:Mr. Anil K Singh, Chief Financial OfficerMr. Tulsiram Gautam, Chief Credit Officer

Internal Auditor: Mr. Sudeep Khanal, ACA

Company Secretary:

Mr. Ramesh Ghimire, LLM (Commercial Law)

Statutory Auditor:

T R UPADHYA & CO., Chartered AccountantsHouse No. 61, Anamika Galli, P. O. Box 4414Baluwatar, Kathmandu Nepal

Legal Advisor:

Mr. Purna Man ShakyaReliance Law Firm, machangal, Jawalakhel, LalitpurPO Box # 8975, EPC 439, Kathmandu, Nepal

Tax Advisor:Mr. Sudarshan Raj Pandey, FCABijuli Bazar, New Baneshwor, Kathmandu



3.7 BOARD OF DIRECTORS


Ms. Hasana Sharma ChairpersonRepresenting employees provided fund

Mr. Hemant G. ContractorDirector

Representing State Bank of India

Mr. Rajiv Pal SinghDirector


Mr. Manoj Kumar AgrawalDirectorRepresenting Public Shareholders

Mr. S. K. BhattacharyyaDirector


Mr. Niranjan Kumar TibrewalaDirectorRepresenting Public Shareholders

Mr. Mohan Raj JoshiDirectorIndependent Professional Expert

Mr. N. K. ChariManaging Director



3.8 ORGANIZATION STRUCTURE


Board of directors

Company SecretaryChief operating officer (COO)

Chief Credit Officer (CCO)

Chief Financial officer (CFF)

Credit Appraisal and Sanctions

Documentation follow up and NPA department

Treasury & forex department

Reconciliation department

Business development department

Account &administration department

System department

HR department

Business control and inspection department

Regional Offices

Western Regional office: Biratnagar

Eastern Regional Office: Nepaljung

Credit Committee Managing Director Audit Committee

Internal Audit

-Share department

-Law department


3.9 CORPORATE GOVERNANCE STRUCTURE



The Bank uses the term "Corporate Governance" to refer to the governance structure of

organization and operational practices of its leadership and management. Compliance with all

legislations, regulations, standards and codes is an essential characteristic of organizational

culture at Nepal SBI Bank. The Board of Directors is the apex decision making body and has

ultimate responsibility for governance. The board monitors compliance with these means of

management reports, which include information on any significant interaction with all key

stakeholders.

The corporate governance framework of Nepal SBI Bank is designed to lead us towards creating

opportunity while protecting the interests of, as well as to create value for, shareholders and

other stakeholders including customers, employees and communities and also to ensure

transparency and integrity in communication and to make available full, accurate and clear

information to all concerned.

The bank is subject to and fully complies with, all but not limited only to, the regulatory

requirements of Banks and Financial Institutions Act-2063, Companies Act-2063, various

regulations issued by Security Exchange Board of Nepal (SEBON), Directives and Circulars

issued by Nepal Rastra bank--the central bank of Nepal, various guidelines from Institute of

Chartered Accountants of Nepal (ICAN) and other national and international bodies devising

policies on Corporate Governance.

3.10 RISK MANAGEMENT

Primary goal of our risk management framework is to ensure that outcomes of risk taking

activities are predictable and consistent with the Bank's objectives and risk tolerance levels and

that there is an appropriate balance between risk and return in order to maximize return to the

shareholders. We adopt a holistic approach and have been engaged in extensive and detailed

evaluation and assessment of our risk management in all areas of banking activities.



RISK MANAGEMENT COMMITTEE

ICAAP REVIEW COMMITTEE (IRC)

The internal capital adequacy assessment process (ICAAP) is a comprehensive process which

requires board and senior management's oversight, monitoring, reporting and internal control.

The committee reviews the capital measurement process to ensure the alignment of regulatory

capital requirement with the true and actual risk profile of the bank and thus ensure long-term Digar Dev Pandey, MBA-IB, FMS- BHU 2012


safety and soundness. Other salient roles of ICAAP Review Committee are to review Credit

Risk, Credit Concentration Risk, Operational Risk, Market Risk, Liquidity Risk, and other

residual risks to ensure alignment of regulatory capital requirement with the true risk profile of

the bank and thus ensure long-term safety and soundness.

MARKET RISK MANAGEMENT COMMITTEE (MRMC)

The Market Risk Management Committee has the overall responsibility to monitor and manage

various risk exposures of the bank. It involves identification, assessment, monitoring, reporting

and analysing of Market Risk profile associated with treasury operations. MRMC assesses risk

parameters, oversees compliance with those risk parameters and develops hedging strategies.

The committee makes resource allocation for all categories of risk assets. MRMC also performs

risk research and analysis for development of risk mitigation strategies.

CREDIT RISK MANAGEMENT COMMITTEE (CRMC)

The Credit Risk Management Committee mainly focuses on monitoring of bank wide credit risk

ensuring compliance and implementation of Credit Risk Policy and Strategy approved by the

Board. It ensures incorporation of regulatory compliance in the bank's policies and guidelines in

regards to credit risk and subsequent compliance with all the risk parameters and prudential

limits set-out by those regulatory guidelines. The committee also performs monitoring of quality

of loan portfolio on a periodical basis, identification of problems and correction of deficiencies

and monitoring of risk concentrations.

OPERATIONAL RISK MANAGEMENT COMMITTEE (ORMC)

The ORMC reviews the risk profile, anticipates changes and threats in areas of high priority and

works-out related mitigation strategies and assures that adequate resources are being assigned to

mitigate risks as needed. It reviews reports from various business groups and units about their

risk profile and mitigation programs and communicates with the business units and staff about

the importance of operational risk. It also reviews and approves the development and

implementation of operational risk methodologies and tools including assessments and loss event

databases. On a broad level, the committee monitors and ensures that appropriate ORM



frameworks are in place by reviewing the reports with respect to operational risk profile of the

bank and approves policy-related risk mitigation plan.

ASSETS LIABILITIES MANAGEMENT COMMITTEE (ALCO)

ALCO is responsible for managing the balance sheet, off balance sheet exposures and capital

within the performance and risk parameters laid down by the investment and other relevant

policies of the bank. It provides direction to the bank's treasury and other businesses regarding

short term business strategy taking into account market variables in relation to the bank's

exposure and the bank's corporate plan.

The committee approves the liquidity and funding plans of the bank and assesses the liquidity

risk facing the bank while articulating interest rate views. It also monitors key market and

operations risk indicators, reviews the potential impact of concentrations and various scenarios

on the bank's business and gives directives to mitigate and manage the related risk while

ensuring adherence to tolerance/risk limits set by the board of directors.

3.11 DEPOSIT AND ACCOUNT

VARISTHA NAGARIK BACHAT KHATA

Varistha Nagarik Bachat Khata. The respected senior citizen—aged 50 and above—can open this

Saving Account with minimum balance of Rs. 500/- only. Interest rate on the account is 4%

calculated daily and payable quarterly. Additionally, the Accountholder gets bundle of additional

benefits;

No restrictions on withdrawal from account subject to maintenance of required

minimum balance

50% concessions on rental charges for hiring safe deposit locker (Subject to

Availability)

50 % concession on SWIFT and RTGS only (Except on Exchange & Commission)

50 % concession on commission on Bharat Yatra Card

Free Account Statement (On request)

Free Any Branch Banking Service



Free Nepal SBI Bank Debit Card

Free Internet Banking Service

Similarly, the customers under this scheme can open Fixed Deposit Account that yield applicable

card rate with interest receivable on monthly basis. Account can be open on all of our branch

offices.

VISHESH BACHAT

Vishesh Bachat—enriched with bundle of additional benefits to our valued customers. Vishesh

Bachat Accountholders get;

5% interest rate calculated on daily balance and payable quarterly.

Free Internet Banking Service.

Free Nepal SBI Visa Debit Card.

Any Branch Banking Service free of charges

Free account statement (On request)

50 percent discount on rental charges and no separate deposit requirement for hiring

Safe Deposit Lockers (Subject to availability of Lockers)

50 percent concession on issuing Bharat Yatra Card

50 percent concession on applicable charges and commission on RTGS only.

(Except on exchange and commission.)

No restrictions on deposits and withdrawal (Subject to maintenance of the minimum

balance)

The account can be open at minimum balance of Rs. 50,000/-. Account can be open on all of

NSBL branch offices.

SWASTHA BACHAT KHATA

Nepal SBI Bank’s Swastha Bachat Khata gives you dual benefits of having a saving bank

account and meantime keeping yourself healthy with free “Health Check-Up Service” worth Rs.

1,555/- from U&B International Health Care Centre located at New Baneshwor Shantinagar

Gate, Kathmandu. The “Health Check-Up Services” includes General Check-up, Dental Check-

up and various Laboratory Investigations. Apart from this, the accountholders also get



3% Interest Rate calculated on daily balance and payable quarterly (Nepali Calendar)

Free Account Statement (On request)



Free Internet Banking Service

Free Cheque Book

Swastha Bachat Khata can be opened at the minimum balance of just Rs. 2,000/- This account

can be open at all of Nepal SBI Bank’s Branch Offices inside Kathmandu Valley.

UJJWAL BHAVISYA BACHAT YOJANA (RECURRING DEPOSIT)

Ujjwal Bhavisya Bachat Yojana: This is a flexible recurring account which allows customers to

deposit a sum of money periodically up to a desirable term. This product is especially useful for

promoting savings and to use the fund received at maturity to fulfill personal needs that call for

significant financial commitment.

Deposit Fixed amount each month and withdraw lump sum amount on maturity

Deposit Amount: Rs. 500.00 and above in multiples of Rs. 100.00

Deposit Period: From 12 months to 84 months in multiples of 6 months

Interest credited quarterly in principal account

Interest Capitalization every 3 months

DHANVRIDDHI BACHAT YOJANA

Deposit Fixed Amount at the beginning and withdraw lump-sum amount on

maturity.

Deposit Amount: Minimum NPR 5,000 and above in multiples of NPR 100.

Deposit Period: From 6 months to 84 months in multiples of 6 months.

Interest Credited to Principal Account.

Interest Capitalized every 3 months (based on English Calendar).

A soft loan can be availed up to 90% of the balance amount



KARMACHARI BACHAT KHATA

A special zero balance deposit scheme—Karmachari Bachat Khata—with special focus on

salaried employees from government and/or non-government organizations. Karmachari Bachat

Khata account holders get;

5% interest on daily balance, payable quarterly

40% concession on rental charges for hiring safe deposit locker (Subject to availability)

50% concession on remittance commission (Draft and RTGS to India)

50% concession on issuance charge of Bharat Yatra Card.



The account can be opened in all Nepal SBI Bank branch offices.

RS. 501 SARAL BACHAT

Saral Bachat Khata: It is one of the most popular deposit accounts of the bank which has

attracted more than 150,000retail customers since its launch in year 2009. This account was

targeted towards mid to low income group of people with lowered minimum balance

requirement.

Customer can open this account with minimum balance of just Rs. 501.

Free ATM/Debit Card.

Free Any Branch Banking Service (Customer can deposit and withdraw cash from all

branches of Nepal SBI Bank countrywide free of charges).

Free Cheque Book

Free Internet Banking Account

PROVIDENT FUND ACCOUNT FOR PERMANENT STAFF OF ORGANIZATION

Higher interest rate than normal saving deposit.

Interest calculated daily payable quarterly.



A soft loan can be availed up to 90% of the balance amount.

A certain amount of fund (both deducted from staff salary and contributed by the

organization) can be deposited on the monthly basis by the concerned organization.

3.12 ACCOUNTS INFORMATION

CURRENT ACCOUNT

It is an account specially designed for business transactions. There are no restrictions on number

of credit/ debit transactions. No interest is paid on current account.

Current Account can be opened by:

By a person in his/her own name or jointly with other individual(s).

In the name of firm, Club and association, society.

In the name of Private and Public Limited Company.

In the name of trustee, liquidator etc.

By any other institution etc.

It is essential that the prospective customer should be introduced by an existing account holder. It

is preferable that introducer should come to the bank for introduction. However in case it is not

possible for the introducer to come to the bank, it is very important that signature of the

introducer should be verified with utmost care and if possible the introduction may be confirmed

with the introducer on telephone/in writing.

SAVINGS ACCOUNT

The account scheme is supposed to facilitate easy and regular withdrawal of funds as and when

required and simultaneously earning of income on the balance that is kept in the account. Any

person having a savings account is allowed to deposit money and withdraw to the extent of

balance freely from his/her account. Individual banks however put a restriction on number of

withdrawals and amount for each transaction in saving account.

Saving account is an interest bearing account. The interest is paid on minimum daily balance

basis. The advantage of Savings account is that an individual can utilize the bank account for



various payments while the balance in the account earns interest. The scheme is designed to

encourage small savings. The interest in saving account is paid on quarterly basis.

Savings accounts are allowed to be opened only by individuals singly or jointly. Other than

individuals, any organization or body of persons (e.g. society etc.) can open a savings account if

they are a charitable organization and are exempt from income tax on their income.

FIXED ACCOUNT

The account scheme allows a customer to earn higher rate of interest for those amounts, which a

customer is confident that he will not require the amount for certain period. The scheme offers

higher rate of interest than savings account. The interest rates vary with the period for which

amount is kept in fixed deposit. The interest rates vary from time to time.

Documents Required

Following are the documents required for opening account with NSBL.

For Individual:

Copy of citizenship certificate for Nepali national.

Copy of Embassy registration certificate issued by Embassy of India, Kathmandu, as

Indian national/copy of valid passport.

Two copies of recent photograph should also be obtained.

For Proprietorship Firm:

Declaration of Sole Proprietorship.

Copy of renewed Firm Registration Certificate.

Copy of renewed Income Tax Registration Certificate.

Copy of identification paper of promoter/ account operators.

Two copies of recent photograph of proprietor should also be obtained.



For Partnership Firm:

Letter of Partnership duly signed by all partners.

Copy of Partnership Deed duly attested.

Certified copy of Partnership Registration.

Identification papers of all partners and account operators.

Income tax registration/renewed certificate.

For Corporate Bodies:

Memorandum and Articles of Association of the company.

List of existing directors.

Resolution of Board of Directors to open and operate the account.

Company registration and Income Tax registration/renewed certificate.

Identification papers of directors and account operators.

Notification of appointment of office bearers as authorized account operators in case of

Corporations.

For Clubs, Societies and Associations:

List of Office Bearers and their addresses.

Copy of Resolution to open and operate the account.

Name and signature of persons authorized to operate the account.

Copy of registration certificate.

Identification papers of account operators.

Affiliation certificate with the Social Welfare Council or other concerned Councils.

3.13 ADVANCES

Corporate and Business Loans



The bank offers corporate and business loan to large corporate and institutional customers

including public sector entities and service them with offerings ranges from loans to meet

operational funding requirements as well as service related to strategic expansions, syndications,

project finance etc.

SME Loans

This is a tailor made loan product devised with special focus on the needs of Small and Medium

Sized Enterprises to meet their financing requirements in a convenient manner.

Personal Loans

Retails loans largely comprise of auto finance, home loan and credit for consumer durables.

Credit card is not in offer yet. Other personal loans like Mortagage and Mortgage Plus are

personal credit given to individuals on the basis of their income level.

MORTAGE LOAN SCHEME

Margin:

The borrower has to offer immovable property whose value on distress is at least 200% of the

loan amount. The loan will be restricted to 50% of the distress sale value of the property offered

as security subject to a ceiling of Rs. 20,00,000/- for the proposals up to the sanctioning power of

Chief Credit Officer

Repayment:

The repayment by way of indicative Equated Monthly installments on the basis of contracted rate

MORTAGE-PLUS LOAN SCHEME

Features:

To employees, professional, self employed, businessman and others.

Limits Linked to income and collateral.

Revolving overdraft or repayable over 5 years.

For any legitimate purpose.

Competitive Interest Rate.



Quick Processing

DUCATION LOAN

Maximum loan amount: Rs. 40.00 lacs.

Student eligibility

Should be a Nepalese citizen.

The student should have at least intermediate/higher secondary level (plus two)

academic qualification.

The student’s parents/guardian should have sufficient regular income to service

interest. Their uncommitted monthly income should be at least 1.33 times of the

interest payable.

Should be between the age of 16 years to 35 years

Eligible Courses

Graduate / Masters and above

Professional courses (graduate and above)

Expenses considered

Fees payable to College /Hostel (Admission fee, tuition fee, examination fee,

laboratory fee, library fee)

Purchase of books, equipments, instruments required for the course.

Cost of passage (for studies abroad)

Boarding and lodging expenses (Recognized hostels by the institution)

Pricing

Processing fee: 0.5% of the loan amount or Rs. 5000.00 whichever is higher.

Prepayment charge: A prepayment charge at the rate of 2% on the prepaid amount shall

be recovered. If loan is repaid after 12 months of the date of sanction, the prepayment

charge shall be 1%.

Commitment fee: A commitment fee at the rate of 0.25% of unutilized loan shall be

charged.

CIC report fee: Rs. 500.00 and Rs. 250.00 per additional page.



Repayment Programme Moratorium: A maximum period of 5 years or the completion

of course designated, whichever is earlier.

Repayment: The loan shall be repaid in 5 years after the moratorium period on EMI

basis.

Interest during moratorium period: The parents/guardian of the student shall pay the

interest during the moratorium period on quarterly basis as per Nepali calendar.

Security

Land and building having value133% of loan amount.

Loan upto 95% of Fixed Deposit/Government securities.

Supporting documents required

Duly filled Loan Application form

Mark sheet of last qualifying examination

Copies of Letter Conferring scholarship, if any

Proof of admission to the course

Schedule of expenses for the course

Two copies of recent passport size photograph of the students and their

parents/guardian/guarantor

Copies of foreign exchange permit, where required.

Copies of citizenship/pass port of the students and their

parents/guardian/guarantor.

Statement of regular income sources of parents/guardian, along with supporting

documents where required.

Brief statement of assets and liabilities of parents/guardian

Copies of ownership certificates of the proposed property to be mortgaged or

Government Securities/FDRs to be pledged.



3.14 OTHER PRODUCT AND SERVICES

3.14.1 REMITTANCE:

Nepal SBI Remit: This is a newly launched online international remittance service which offers a

formal channel for the Nepali community residing all around the world to send money to Nepal

Domestic Remittance Service: The bank started domestic remittance service in partnership with

Prabhu Money Transfer. This product allows customers to send and receive money toand from

any part of the country.

SBI Nepal Express Remit: This is a unique remittance product- the only one of its kind in

Nepal. Nepali migrant workers residing and working in India can remit money at minimal

charges from more than 14,000 branches of State Bank of India located in various parts of India.

We are now receiving 600 remittances in averages per day through the service channel.

Indo-Nepal Remit: This is another remittance-from-India product launched by Reserve Bank of

India which has chosen Nepal SBI bank to disburse the remittance money to the beneficiaries in

Nepal.

WUMT’s/PMT’s Remittance: Customers can also receive remittance money send from abroad

via remittance channels of Western Union Money Transfer as well as Prabhu Money Transferr

at the branches of Nepal SBI Bank.

3.14.2 CARD



Nepal SBI Card: This is an ATM cum Debit card which can be used at 68 ATM terminals of

the bank as well as more than 24,000 ATMs of State Bank of India. Presently, there are more

than 200,000 users of Nepal SBI Card which is rising very rapidly.

Bharat Yatra Card: Popularly known as BYC, this is a Nepalese Rupees denominated pre-paid

card made for cash withdrawal and purchases while visiting India mainly for medical treatment,

education, tours etc. Bank has already sold more than 14,000 Bharat Yatra Cards since its launch

in November 2008.

Vishwa Yatra Card: Recently launched Vishwa Yatra Card is USD denominated international

prepaid card which the customers can use for cash withdrawal in all the ATM terminals under

VISA network in any part of the world and for purchases.

3.14.3 ALTERNATIVE DELIVERY CHANNELS

Mobile Sakha: Mobile Sakha is mobile based banking service delivery channel which allows

customers access various banking services like fund transfer, balance inquiry, bill payments,

statement request, alert services etc.

Internet Banking: This state-of-the-art online banking channel provides customers with a PC

and internet connection access to banking services 24x7 from anywhere

Automated Teller Machine: Nepal SBI Bank has one of the largest network of ATM terminals

both locally and internationally. Presently, the bank has 67 ATM terminals around the country

and has access to more than 25,000 ATMs of State Bank of India group.

Auxiliary Services:



Utility Bill Payment: Customers both accountholders and non-accountholders of the bank can

pay their telephone bills, insurance premium, school and college fee at the branches of Bank free

of cost.

Safe Deposit Locker:This is one of the popular auxiliary services of the bank. Presently customers can avail the

service from 25 branches of the bank.

3.15 BRANCHES

Inside Kathmandu Valley Branches

o Bhaisepati

o Bhaktapur

o Boudha

o Commercial Branch

o Dallu

o Durbar Marg Main Branch

o Gaushala

o Gongabu

o Gwarko

o Kalanki

o Kuleshwor

o Maharajgunj

Eastern Region Branches

o Bargacchi

o Biratnagar

o Birtamod

o Damak

o Dharan

o Ilam

o Itahari

o Lahan

o Terahthum

o Pension Paying Office, Dharan

Central Region (Other than Kathmandu


http://nepalsbi.com.np/content/terahthum.cfm

http://nepalsbi.com.np/content/lahan.cfm

http://nepalsbi.com.np/content/itahari.cfm

http://nepalsbi.com.np/content/ilam.cfm

http://nepalsbi.com.np/content/dharan.cfm

http://nepalsbi.com.np/content/damak.cfm

http://nepalsbi.com.np/content/birtamod.cfm

http://nepalsbi.com.np/content/biratnagar.cfm

http://nepalsbi.com.np/content/bargacchi.cfm

http://nepalsbi.com.np/content/maharajgunj.cfm

http://nepalsbi.com.np/content/kuleshwor.cfm

http://nepalsbi.com.np/content/kalanki.cfm

http://nepalsbi.com.np/content/gwarko.cfm

http://nepalsbi.com.np/content/gongabu.cfm

http://nepalsbi.com.np/content/gaushala.cfm

http://nepalsbi.com.np/content/durbar-marg.cfm

http://nepalsbi.com.np/content/dallu.cfm

http://nepalsbi.com.np/content/commercial-branch.cfm

http://nepalsbi.com.np/content/boudha.cfm

http://nepalsbi.com.np/content/bhaktapur.cfm

http://nepalsbi.com.np/content/bhainsepati.cfm


o New Baneshwor

o New Road

o Patan, Jawalakhel

o Sinamangal

o Teku

o Embassy of India Ext. Counter, Lazimpat

o BGSN Ext. Counter, Thamel

o Indian Visa Service Centre, Lazimpat

Western Region Branches

o Abu Khaireni

o Baglung

o Bhairahawa

o Butwal

o Damauli

o Gulmi

o Palpa

o Parasi

o Pokhara

o Sandhikharka

o Sishuwa

o Srijana Chowk

Valley) Branches

o Birgunj

o Hetauda

o Janakpur

o Narayangarh

o Rampur

o CGI Ext. Counter, Birgunj

Mid-Western Region Branches

o Dang

o Nepalgunj

o Surkhet

Far-Western Region Branches

o Dhangadi

o Mahendra Nagar

o Tikapur


http://nepalsbi.com.np/content/tikapur.cfm

http://nepalsbi.com.np/content/mahendra-nagar.cfm

http://nepalsbi.com.np/content/dhangadi.cfm

http://nepalsbi.com.np/content/surkhet.cfm

http://nepalsbi.com.np/content/nepalgunj.cfm

http://nepalsbi.com.np/content/dang.cfm

http://nepalsbi.com.np/content/rampur.cfm

http://nepalsbi.com.np/content/narayangarh.cfm

http://nepalsbi.com.np/content/janakpur.cfm

http://nepalsbi.com.np/content/hetauda.cfm

http://nepalsbi.com.np/content/birgunj.cfm

http://nepalsbi.com.np/content/srijana-chowk.cfm

http://nepalsbi.com.np/content/sishuwa.cfm

http://nepalsbi.com.np/content/sandhikharka.cfm

http://nepalsbi.com.np/content/pokhara.cfm

http://nepalsbi.com.np/content/parasi.cfm

http://nepalsbi.com.np/content/palpa.cfm

http://nepalsbi.com.np/content/gulmi.cfm

http://nepalsbi.com.np/content/damauli.cfm

http://nepalsbi.com.np/content/butwal.cfm

http://nepalsbi.com.np/content/bhairahawa.cfm

http://nepalsbi.com.np/content/baglung.cfm

http://nepalsbi.com.np/content/abu-khaireni.cfm

http://nepalsbi.com.np/content/teku.cfm

http://nepalsbi.com.np/content/sinamangal.cfm

http://nepalsbi.com.np/content/patan.cfm

http://nepalsbi.com.np/content/new-road.cfm

http://nepalsbi.com.np/content/new-baneshwor.cfm


o Waling

o Pension Paying Office, Pokhara

3.16 MANAGEMENT TEAM

Shri Arjun Nepal: Regional manager Eastern region

Shri Tulasi Ram Gautam: Chief Credit officer

Shri N. K. Chari: Managing director and CEO

Shri Madhukar Anand: Chief operating Officer

Shri Binod K. Mishra: Chief Operating Officer

Shri Dev Raj Adhikari: Regional Officer western region

3.17 HEAD OF DEPARTMENTS/ UNITS

Shri Chappi Raj Panta: Main Branch

Shri Bigyan Adhikari: Systems

Shri Sushil Chandra Mahat: Card

Shri Amlesh Ratna Sthapit: Treasury

Shri Badri Lal Amatya: Credit Appraisal and sanction

Shrimati Rashmi Kharel Karmacharya: Human Resources

Shrimati Roshani Bharati : Accounts and Administration

Shri Sushil Kumar Sharma: Business Development


http://nepalsbi.com.np/content/waling.cfm


Shri Umesh Bahadur Karki: Credit documentation, follow up, supervision and

NPA.

Shri Ramesh Ghimire: Law and share and company secratary

Shri Kamal Ram Bhattarai : Reconciliation

Shri Sudeep Khanal: Internal Audit

Shri Bishnu Dev Yadav: Commerical Branch

3.18 FINANCIAL HIGHLIGHTS

Nepal SBI Bank Limited is a major national level financial services provider engaged in various

retail and commercial banking services. Nepal SBI Bank Ltd. (NSBL) is the first Indo- Nepal

joint venture in the Nepalese financial sector sponsored by three institutional promoters, namely

State Bank of India (SBI), Employees provident Fund and Agriculture Development Bank of

Nepal through a memorandum of understanding signed on 17th July 1992. From the time of its

operation, the bank is performing well. The major financial highlights of NSBL Bank are as

follows.

Nepal SBI Bank LTD.

Balance sheet as on…………..

(In lacks)

Particulars 2008/09 (2065/66) 2009/10(2066/67) 2010/2011(2067/68)

Total share holders fund 17126.07 24505.54 28792.93

Share Capital 12243.39 18613.24 21029.66

Reserves 4882.68 5892.30 7763.27

Liabilities

Deposit account 279572.21 34896.24 424154.43



Debenture 2000.00 2000.00 2000.00

Bills Payables 629.47 723.88 806.85

Other liabilities 2336.64 4283.33 5128.12

Assets

Advances 151317.48 174805.48 213657.71

Investment 132861.82 163056.33 189110.22

Liquid assets 11764.40 34412.61 48778.26

Net fixed assets 2535.81 4182.45 4170.03

Other assets 3184.89 4019.92 5166.13

Total 301664.40 380476.79 460882.34

Nepal SBI Bank ltd

Income statement

From…………..to……………….(In lacks)

Particular 2008/09 2009/10 2010/11

Interest income 14604.46 22697.04 31042.32

Interest expenditure 8247.0 14336.94 20960.38

Fee, commission and exchange

income

1401.31 2020.20 3176.97

Other incomes 527.90 787.97 951.73

Operating expenses 2239.66 3438.50 4450.73



Operating profit 4423.66 5702.90 6742.52

Profit Before tax 4430.32 5383.62 6534.69

Profit after tax 3163.73 3917.42 4645.65

2008/09 2009/10 2010/110

5

10

15

20

25

30

35

40

45

Deposits( in billions)

Deposits( in billions)



2008/2009 2009/2010 2010/20110

100000

200000

300000

400000

500000

600000

700000

DepositAdvancesTotal Business

Particulars Deposit Advances Total Business2008/2009 279572 151,317.00 430,889.002009/2010 348,962.00 174,805.00 523,767.002010/2011 424,154.00 213,658.00 637,812.00

Major Financial ratios (in %)

Particulars/ years 2008/09 2009/10 2010/2011


2008/09 2009/10 2010/110

5

10

15

20

25

30

35

40

45

Lending and investment (in billions)

Lending and investment (in bil-lions)


DPS 42.1 17.5 17.5

EPS 36.2 23.2 24.9

Return on net fixed asset 111.41 93.66

Interest income/loan &

advances

11.24 9.80

ROE 18.6 16.1 16.2

HIGHLIGHTS:

Deposit of the Bank grew up significantly from 34.9 billion to 42.4 billion in year 2010/

11. Recording the growth of 7.5 billion. Thus growth rate in deposit is 17.69% in year

2010/11. Nature of deposit consist of current account, saving account and call deposit.

Lending and Investment of bank also grew up from 33.8 billion to 40.3 billion recording

the growth of 6.5 billion in years 2010/11.Lending and investment includes cash credit,

hire purchase loan, housing loan, education loan, retail loan and long term project

finance.

Nonperforming assets is down to 1.10% from 1.48% on year to year basis.

Share holders fund and return on equity increased from 16.1% to 16.2% in fiscal year

2010/11.

Return on net fixed asset grew up significantly to 114.4% from 93.6% in previous fiscal

year.



Customer base of the company riches to 308644 after significant incensement of 109680

customers in the fiscal year 2010/11.

DPS of the bank remain constant 17.5% in fiscal year 2009/10 and fiscal year 2010/11

which was 42.1% in fiscal year 2008/09.

Net profit of the bank increased to Rs. 464.5 million From 391.7 million. Profit grew up

by 18.6% in comparison to previous year.

3.19 SWOT ANALYSIS

Strengths:

Bank with 55% investment of SBI Bank (largest and government holding bank of India,

and investment of employees provident fund Nepal. (A government holding of Nepal)

Only bank in Nepal issuing prepaid debit card. (BYC and VYC).

Managerial and technical assistance from SBI bank ltd.

Weakness:

Poor delivery of ATM visa Card

High labor turnover.

Opportunity:

Growing market

Large untapped rural market.



Threats:

Taught competition.

Un stable political environment

Changing banking policies.

Rapid Changing technology.

3.20 OVERVIEW OF PATAN BRANCH

Nepal SBI Bank was incorporated in Nepal on April 28, 1993, as a public limited company. It

commenced operations on July 7, 1993, and is principally engaged in the business of banking, as

defined in the Banks and Financial Institutions Act, 2006. Bank was established with aspiration

of “BANKER TO EVERY NEPALI “and commitment of “FIRST IN CUSTOMER

SATISFACTION”.

Nepal SBI Bank Patan branch came into operation on 14 th Feb, 2003 with the team of four

employees as 18th branch of Nepal SBI bank ltd. Initially, branch was limited to the cash

collection and cash payment. Since the establishment, branch performance remains excellent.

Now it has 12 employees and operated as full fledge branch. Now branch consists of Customer

service Department, operation Department, Loan Department, marketing department. This

branch provides draft facilities, SWIFT/RTGS, issuance and purchase of FCY and TC, locker

services, LC, and Bank guarantee.

This branch belongs to one of the highest customer base branch and also popular as cash

collection centre. Currently branch have 5121 saving account holders, 596 current account holder

and 230 call deposit and fixed deposit account holders. Likewise, branch has 23 cash credit



account and 1 trust receipt. Branch has significant number of advances. There are 12 hire

purchase loan, 11 housing loan, 82 education loan, 116 other advances.

CASA deposit level of branch was increased by 19.88% compare to the last year and budgeted

level of deposit has been surpassed at the end of the June 2012. Interest paid on deposit was

increased by 57.87% as compared to the corresponding period of last year.

By the end of the period 2010-2011 branch was having deposit of Rs 5, 54,87,00,00 and having

advances of Rs.229819000 with the total profit of Rs.19708000. But by the end of June 2012

bank was having deposit of Rs. 1102961000 and having advances of Rs, 336619000 with total

profit of Rs. 36794000 with significant increment of 87% compare to previous fiscal year.

4. RESEARCH METHODOLOGY

4.1 RESEARCH OBJECTIVE

4.2 RESEARCH DESIGN

4.2.1 SAMPLE DESIGN

4.2.2 DATA COLLECTION DESIGN

4.2.3 METHODS OF DATA COLLECTION

4.2.4 DATA ANALYSIS



4.1 RESEARCH OBJECTIVE

To study and analyze the level of Customer Satisfaction with Service of Nepal SBI Bank

Ltd. Patan Branch, Kathmandu Nepal.

4.2 RESEARCH DESIGN

Both the primary and secondary data were used. The research design was a descriptive research

design.

4.2.1 SAMPLE DESIGN:

Population: Customers of NSBL Bank Patan Branch Kathmandu.

Sampling unit: Individual Customer.

Sample size: 76

Instrument: Sample survey

Sampling technique : Non-Probability sampling technique-Convenience Sampling

Data Collection Tool: Questionnaire



Location: NSBL Bank Patan Kathmandu,

Duration: 8 weeks

4.2.2 DATA COLLECTION DESIGN:

For the purpose of data collections and to get proper information, various methods ware adopted.

To get an insight of the subject matter both primary and secondary data collection method was

adopted. Primarily data collected was done through questionnaire and personal interaction with

the customer and secondary data were collected through websites, magazines and bank booklet.


Data Collection Design

Primary Data

Secondary Data


4.2.3 METHOD OF DATA COLLECTION

Primary data:

Personal Interaction method:

During the period of summer training I made interactions with some of the customer who were

ready to give some more information and their feeling regarding various product and services of

NSBL and their understanding regarding employee’s behavior and other physical facilities

provided by Bank. Similarly I made conversation with some customer who did not ready to fill

up the questionnaire. The objective was to draw a general understanding about the things that can

excel the services of the Bank.

Questionnaire:

The objective of the questionnaire was to get the information about the customers view towards

the services offered by bank and to analyze the satisfaction level of services offered by the bank.

A standard structured questionnaire was designed to collect the required information where five

point Liker type scale, and multiple-choice scale, information were used


Related websites, bank booklets, magazine, newspapers

Personal InteractionsQuestionnaire


Secondary Data:

Secondary data was collected through various websites: Nepal Rastra Bank, Nepal SBI Bank

Ltd. Google.com, Banking promotion centre and from various news papers: Karobar daily,

Arthik Aviyan daily, Boss magazine to gat comprehensive idea about banking industry of

Nepal.

During the training, I made discussion and interaction with bank employee regarding various

activities and procedures of various department of the branch. Employee’s interaction, working

and behavior with customer were observed to have an idea about their mindset and preference

for the customers.

4.2.4 DATA ANALYSIS AND PRESENTATION

Customer satisfaction is a long-term strategy. Satisfaction implies a conscious and deliberate

evaluation of outcomes. If expectations are matched, the outcome, of course, is satisfaction.

When alternatives perceived as falling short in significant ways, dissatisfaction is the result.

Satisfaction and dissatisfaction, of course, represent extreme points on a continuum. Customer

satisfaction is the result of a customer’s perception of the value received in a transaction or

relationship – where value equals perceived service quality relative to price and customer

acquisition costs relative to the value expected from transactions or relationships with competing

vendors. Consumers form expectation of products or services prior to their purchase. These

expectations are then either confirmed or disconfirmed after the product or service is purchased

or used.

A Customer will be satisfied when the outcomes of the service meet his or her expectations and

when the services quality is more than those expectations; the service provider is having the

delighted customer. Contrary when the perceived overall service quality is below or less than his

or her expectation, than the customer is dissatisfied.



The number of commercial banks is increasing in Nepal due to the attractive market opportunity

available in the country, especially after the advent of democracy. Nowadays, the performance of

these commercial banks has come under question in terms of customer satisfaction.

In this study, a standard structured questionnaire was designed to collect the

required information. Numbers of questions were included in the questionnaire to study the

customer satisfaction about services provided by Nepal SBI Bank Ltd. Patan Branch,

Kathmandu. During the course of my analysis some of the key questions were individually

dealt and inferences were made based on those specific Questions.

1. saving 2. Current 3. Saving and current

What type of account do you maintain in this branch?



Above diagram shows that 48.7 % respondent respond that they have saving account with patan

branch. 25.0% have current account and 26.3 % respondent have current and saving account in

this branch. Majority of the respondent are saving account holder with the branch but the

respondent having current account and current &saving account holder are somehow equal. Here

current account refers to the account of any organization, NGO’s, company or any business

houses because by rule those organizations are not allowed to open saving account in the name

of organization.

From above diagram we can say that the non- individual customer or institutional customer base

of the branch is also good. Similarly, saving account includes both normal saving and fixed

deposit or recurring account. As like any other bank, number of saving account holder at NSBL

is also high than anyone else.

1 < 6 months 2. 6 months – 1 year 3 1 year- 2year 4 > 2 years

How long have you been a customer with bank (Branch)?



Above diagram depict that 22.37% respondent customer have been mentions relations with this

branch since last 1 to 2 years, 26.32% respondent customer have been mentions relation with

bank with in last six month. Similarly, 11.48% respondent customer have been maintained their

relation since last two years. And remaining 39.47% respondent customer belongs to six months

to one year. Overall from this diagram we can conclude that number of customer have been

growing smoothly.

The number of customer includes saving account holders, loan customer, current account

holders, and remittance customer and so on. Since last few years customer base have been

growing smoothly, which indicate the customer friendly policies and environment of the Nepal

SBI bank Limited.

Scale: 1-Very easy/Very Satisfied, 2-Easy/Satisfied, 3-Normal/Somewhat Satisfied, 4-Difficult/Dissatisfied, 5-Very Difficult/ Strongly Dissatisfied



How do you rank the procedure of account opening of the bank?

Statistics

How do you rank the procedure of a/c opening of the bank?

N Valid 76

Missing 0

Mean 4.0132

Std. Deviation .80818

Analysis shows that 26.32% of respondents respond the account opening procedure as “ very

Easy”, 52.26% of respondents responds as “easy” and 11.84% of respondents respond as

“Normal”.

The average calculated on the basis of points allotted is 4.013. It indicates that customers are

satisfied with a/c opening process of the bank. The deviation calculated on the basis of points

allotted is 0.808. It means the volatility of customer can be more than average by 0.808or also

can be less than average by 0.808.

Scale: 1- Strongly disagree/ strongly dissatisfied, 2- Disagree/Dissatisfied, 3-Somewhat

agree/Somewhat satisfied 4- Agree/Satisfied, 5- Strongly agree/Very satisfied



Do you agree that, maintaining minimum balance is not high and reasonable in this bank?

Statistics

Do you agree that, Maintaining minimum balance is reasonable and not high in this bank?

N Valid 76

Missing 0

Mean 4.0132

Std. Deviation 1.05190

Analysis shows that 38.2% of respondents “strongly agree” with maintaining minimum balance

is not high and reasonable in this bank, 39.2% of respondents “ agree” with the same and 9% of

respondents somewhat agree with the same.

Here calculated mean is 4.013 which means respondent are (agrees) satisfied that minimum

balance is not high and reasonable. Thus we can conclude that respondents are satisfied with

minimum balance they have to maintain in their respective account/s. And calculated standard

deviation is 1.05. It means the volatility of customer can be more than average by 1.05 or also

can be less than average by 1.05.

Scale: 1- Very poor/ strongly dissatisfied, 2- Poor/Dissatisfied, 3-Normal/Somewhat satisfied,

4- Good/Satisfied, 5- Very good/Very satisfied



How you rate the loan procedure of this bank?

Statistics

How dou you rate the loan procedure of the bank?

N Valid 51

Missing 25

Mean 2.9412


In the analysis, 76.47% respondent respond that bank loan procedure is “Normal” 9.80% says

loan procedure is “good” whereas 11.76 % of respondent says that loan procedure is “poor” but

only 1.96% respond as loan process is very poor. And Normal Implies that customers are

somewhat satisfied with loan procedures of the bank.

The calculated mean value is 2.94 (approximate to 3) that means customers are somewhat

satisfied. Likewise standard deviation is 0.544 which refers that volatile of respondent is ± 0.689

form mean value. Less the standard deviation refers to less volatility of from mean. It means the

volatility of customer can be more than average by 0.544 or also can be less than average by

0.544.



Scale: 1-Very high/Strongly Dissatisfied, 2 High/Dissatisfied, 3-Normal/Somewhat satisfied,

4-low/Satisfied, 5-Very low/ Very satisfied

How would you describe the bank interest in loans?

Statistics

How do you describe the bank interest on loan?

N Valid 51

Missing 25

Mean 2.3529


The data shows that56.86% of respondents respond the bank interest in Loans are high and

27.45% of respondents respond bank interest in Loans are “Normal”. And 7.84% respondent

respond the bank interest are very high. Likewise 7.84% of respondent respond that interest rate

is low but not one respondent respond as interest rate is very low.

The calculated data shows that “Mean value” is 2.3.5(less than 3.5) which depicts the bank

interest in loans is high. Thus, respondents are dissatisfied with bank interest in loan. And

deviations of respondent from mean is ± 0.743 i.e. calculated standard deviation is 0.743.



Scale: 1-Too expensive/Strongly Dissatisfied, 2 Expensive/Dissatisfied, 3-Normal/Somewhat

satisfies, 4-Low/Satisfied, 5-Very low/ Very satisfied

How would you describe the bank charges in Inter branch Cash deposits and Withdrawal services?

Statistics

How do you describe the bank charges in the inter branch cash deposit and withdrawal services?

N Valid 76

Missing 0

Mean 4.2895


Here, 47.37 % of the respondent respond to inter branch cash deposit and withdrawal as “good”,

38.16% respond it as “fair” and 10.53% respond as “normal” and 3.95 % says that it is

expensive. It shows that most of the customers are satisfied with inter branch cash withdrawal

and deposit services.

Similarly, Calculated “mean value” is 4.289 which implies that customers are satisfied with the

inter branch cash deposit and withdraw facilities provided by Bank. And standard deviation is

0.813. It means the volatility of customer can be more than average by 0.813 or also can be less

than average by 0.813.



Scale: 1-Too expensive/Strongly Dissatisfied, 2 Expensive/Dissatisfied, 3-Normal/Somewhat

satisfies, 4-Low/Satisfied, 5-Very low/ Very satisfied

How would you describe the bank charges on bank statement and renew of cards?

Statistics

How do you describe the bank charges on bank staatement and renewal of cards?

N Valid 76

Missing 0

Mean 2.0921


Above diagram analysis shows that 59.21% respondent respond that charge on bank statement

and renewal of card is expensive, and 17.11% respondent says that charge on bank statement and

renew of card is too expensive where as 21.05% respondent respond this charges as normal

charge.

On the other hand calculated “mean” is 2.092 which means customers dissatisfied with the bank

charge on bank statement and renewal of cards. The calculated standard deviation is 0.696.This

infers that degree of departure from mean is ± 0.696. It may be more than maen by 0.696 or less

then mean value by 0.696.



Scale: 5- Always/Very satisfied, 4-Often/Satisfied, 3-Sometime/Somewhat Satisfied, 2-Rarely/Dissatisfied, 1-Never/Strongly dissatisfied

Do you always get prompt services whenever you visit branch?

Statistics

Do you always get prompt services whenever you visit branch?

N Valid 76

Missing 0

Mean 4.3947


In the analysis, 53.95% of the total respondents respond that they always get prompt services,

31.58% says often and 14.47 % says sometimes. By analyzing this we can says that customer are

satisfied with the services provided by branch. They often get response from branch when they

visit the branch.

Similarly, calculated “mean value” is 4.39 which depicts that customers are satisfied with bank

service. Similarly, standard deviation is 0.721 which means deviation of respondent form mean

value is ± 0.731. Lower the standard deviation higher will be the uniformity.



Scale: 5- Excellent/Very satisfied, 4-Good/Satisfied, 3-Normal/Somewhat Satisfied, 2-Poor/Dissatisfied, 1-Very Poor/ strongly dissatisfied

Rate the teller services in this branch

Statistics

Rate the teller services in this branch?

N Valid 76

Missing 0

Mean 4.2368


Here 44.74%, 39.47% and 15.79% customer gives their response as “excellent”, “good” and

normal respectively regarding the teller services at patan branch. But no respondent responds that

teller service of patan branch is poor or very poor. Majority of respondent rank “good” and

“Excellent” regarding teller services of patan branch.

The table shows “Mean” is 4.23 which indicate respondents are satisfied with the teller service at

this branch. Standard deviation is 1.024 i.e. deviation is ± 1.024 from mean.



Scale: 1-Rude/Strongly dissatisfied, 2-Unprofessional/Dissatisfied, 3-Professional/Somewhat Satisfied 4-Helpful/ Satisfied, 5-Friendly/Very Satisfied

Rate the information and customer query services of this branch?

Statistics

Rate the information and customer query services of this branch

N Valid 76

Missing 0

Mean 4.3421


The diagram depicts that 48.68% of respondents rate the information and query service as a

excellent, 38.16% as good, 11.84% as normal. This data clearly explain that staffs at this branch

are prompt to any query of the customers. And only1.32% say that information and customer

query services are poor of the branch.

Here the “mean” is 4.34 which indicate that respondents are “satisfied “with information and

query service of this branch. And deviation is ±0.740 from mean.



Scale: 1-Rude/Strongly dissatisfied, 2-Unprofessional/Dissatisfied, 3-Professional/Somewhat Satisfied 4-Helpful/ Satisfied, 5-Friendly/Very Satisfied

How would you generally describe staff in this branch?

Statistics

How do you generally describe staff in this branch?

N Valid 76

Missing 0

Mean 4.2895


From above diagram it can be depict that staff of this branch are friendly, helpful and

professional, as 46.05% respondent respond that staffs are friendly, 39.47% helpful and 11.84%

as a professional. But 2.63 % respondent that staff are unprofessional.

The calculated “mean” is 4.289 which means that customer are satisfied with employees of the

branch. Staffs are friendly and helpful and customers are satisfied with staff at this branch. But

standard deviation is 0.78. Which means that volatility is of respondent is ±0.78 from mean

value. Digar Dev Pandey, MBA-IB, FMS- BHU 2012


Scale: 5-Very High/Very satisfied, 4-High/Satisfied, 3-Normal/Somewhat satisfied, 2-Low/Dissatisfied, 1-Very Low/ Strongly Dissatisfied

How would you describe the bank interest in term deposit?

Statistics

How would describe the bank interest in term deposit?

N Valid 76

Missing 0

Mean 3.3684


Diagram shows that 44.74% of Customer takes interest on term deposit as a normal rate. But

34.21 % respondent says that interest rate is high and 13.16 % says low. So most of the

customers are somewhat satisfied.

From above table mean is “3.368” that means the bank interest in term deposit is normal. Thus,

respondent are somewhat satisfied with the bank interest in term deposit.



Scale: 1.yes 2. No

Do you think the bank should provide the cash withdrawal facility from any branches of this bank for free of cost?

From above diagram it is clear that 90.8 % respondent responds that bank should provide the cash withdrawal facility from any branch of this bank for free of cost. And 5.48% customer says that bank should not provide such facilities.

Most of the customer wants free any branch banking service. With the advancement in banking

technology major bank and financial institute are providing free any branch banking services to

their customers. Nepal SBI bank Ltd. Has been providing free any branch banking services to its

new customers but old customer are still paying for inter branch services .



Scale: 5. Highly Satisfies 4. Satisfied 3.Moderately Satisfied 2. Dissatisfied 1. Not at all satisfied

Rate the overall Service Satisfaction:

Statistics

Rate the overall service satisfaction:

N Valid 76

Missing 0

Mean 4.1579


Above diagram depict that 67.11% of the respondent respond as they are satisfied with overall

services provided by this branch and 25.00% respond that they are highly satisfied with overall

services provided by branch. Likewise, 6.58% are moderately satisfied and only1.32 % are not

satisfied with the overall services of branch.

The calculated “mean” is 3.157 which indicate that customers are satisfied with overall services

provided by branch. The calculated standard deviation is 0.5899 which means volatility of

customer either may be more then mean by 0.5899 or less then by 0.5899 by mean.



5. FINDINGS

Major findings

Customer base of the branch have been increased significantly since last few years.

Though loan procedure of bank is normal, respondent respond that interest on loan is

high.

Loan amount is limited to the seventy five percentage of the total valuation of the

property.

NSBL is only bank which provides prepaid visa debit cards such as bharat yatra card

demonstrated in Indian currency and bishwa yatra card demonstrated in US Dollar.

Delivery of visa debit card is too late. (45 days)

Most of the respondent customer wants free cash withdrawal facility from any branch of

the bank for free of cost.

Most of the customers are satisfied with various services provided by bank except

interest on loan and charges on bank statement and renewal of cards.

Overall service of branch is seems to be satisfied.



6. SUGGESTIONS

Morning and evening banking facilities should be provided.

Delivery of Visa debit card should be made faster as soon as possible.

Bank should provide cash withdrawal facility form any branches of bank for free of cost.

Compulsion of introducer for account opening process should be removed or replaced by

other alternatives.

Tellers should given more transaction limit without any approval from operation in

charge.



7. LIMITATIONS

As internship was to be completed within limited time period, it was impossible to know

about all activities of organization in detail.

The analysis of project was based on observations and interpretation on the basis of

sample survey. And my individual understanding and knowledge gained during

internship period.

Due to the organizational policy of maintaining some material and information

confidential, I was unable to analyze the various critical facts and issues.

Since my project is consigned to only one topic all the learning and collected

information cannot be presented in this report.

Though data were collected without any bias, the study May not be representative

enough because of the small sample.

Another limitation could be lack of knowledge. Being a student I undertake this project

as a learning experience. I have tried my best to be as authentic and as accurate as

possible in the research analysis taking the help of my project mentor on relevant

primary and secondary data.



8. CONCLUSION

The number of commercial banks is increasing in Nepal due to the attractive market opportunity

available in the country, especially after the advent of democracy. Nowadays, the performance of

these commercial banks has come under question in terms of customer satisfaction. New players

are coming who will necessarily intensify the competition. New products and new schemes are

being offered by the banks. To enjoy good share in market and profit almost all banks small and

big banks are adopting latest technologies to provide excellent services to their customers.

Though they have adopted new technologies but not been able to satisfy their customers. The

reason behind, they have not been able to deliver services according to needs and wants of

customers. And those banks who could not deliver better services to its customers they wouldn’t

survive in this competitive market.

With the commitment of “FIRST IN CUSTOMER SATISFACTION”, Nepal SBI bank ltd. is

able to cater their services effectively to its customer. Customer base of the Bank has being

increasing significantly since last few years. Bank has continues focus on delivering services as

per the need and demand of the people. NSBL has been tremendously out performing from the

day of its inceptions and much more focused and aware about the needs of its customers and the

potential customers.

Although banks are much more focused about the needs of customers there are some loopholes

that should be taken in to consideration. If they look into the loopholes they can excel their

service which can be an edge for them to compete in this competitive market. There are many

ways to improve customer satisfaction. Some strategies are: building relationships with

customers, superior customer service, unconditional guarantees, efficient complaint handling.

Customer satisfaction leads to competitive advantage in market place by differentiation, product

quality, speed, unified corporate purpose etc.



9. LEARNING FROM SUMMER TRAINING

During the internship of eight weeks, I came to realize the following things

One should not only know to attract a customer but also should be able to retain them.

Importance of the time management and the need of the communication skills are very

much needed.

The customers are the main drivers of any financial institutions, they should be pleased

by offering the quality services which are basically depends on the quick service and the

pleasing personality of the staffs.

Behavioral issues are most important inside the organization. Customer feel satisfied

when they are behaved properly the misbehavior of any personnel of organizations

adversely affects the organizational image.

One should always try to find out what is going inside the customer’s mind and behave

according to the situation.

Readiness to work and showing and ‘never say no’ attitude are the keys towards success.

Theoretical and practical knowledge are different things but one who has strong

theoretical knowledge and great practical skills of performing work become very much

successful in future.

The corporate working environment is competitive so to get success one has to become

best among the goods.



10. REFERENCES

Kothari, C.R., Research Methodology, New Delhi, New Age International pvt. Ltd, 2004

www.nepalsbibank.com.np

www.nrb.org.np

www.wikipedia.com

www.google.com


http://www.nrb.org.np/


11. ANNEXURE

Questionnaire

I am Digar Dev Pandey an MBA-IB student from FMS, BHU, Varanasi. As a part of my curriculum,

as a summer trainee I am doing a research on “Customer Satisfaction with Service of Nepal SBI Bank

Ltd. Patan Branch, Kathmandu Nepal.” For understanding the details your valuable inputs will be of

great help. The information provided will be analysed for academic purpose and will be kept confidential.

I) What type of account do you maintain in this branch?

a. Saving account b. Current account c. Saving & Current account

2) How long have you been a customer with bank (Branch)?

a. < 6 months b. 6 months – 1 year c. 1 year- 2year d. > 2 years

3) How do you rank the procedure of a/c opening of the bank?

a. Very easy b. Easy c. Normal d. Difficult e. Very difficult

4) Do you agree that, maintaining minimum balance is reasonable and not high in this bank?

a. Strongly agree b. Agree c. somewhat agree d. Disagree e. Strongly disagree

5) How you rate the loan procedure of this bank?

a. Very good b. Good, c. Normal, d. Poor e. Very poor

6) How would you describe the bank interest on loans?


Questionnaire


a. Very high b. High c. Normal d. Low e. Very low

7) How would you describe the bank charges in following services?

a) Inter branch Cash deposits and Withdrawal

1- Too expensive 2-Expensive 3- Normal 4-Fair 5-Good

b) Charge on bank statement and Renew of Cards

1- Too expensive 2-Expensive 3- Normal 4-Fair 5-Good

8) Do you always get prompt services whenever you visit branch?

a. Always b. Often c. Sometimes d. Rarely e. Never

9) Rate the following of this branch using

a) Teller services

1-Excellent 2-Good 3-Normal 4-Poor 5- Very poor.

b) Information & customer query services

1-Excellent 2-Good 3-Normal 4-Poor 5- Very poor.

10) How would you generally describe staff in this branch?

a. Friendly b. Helpful c. Professional d. Unprofessional e. Rude

11) How would you describe the bank interest in term deposit?

a. Very high b. High c. Normal d. Low e. Very low.

12) Do you think the bank should provide the cash withdrawal facility from any branches of this bank for free of cost?

a. Yes b. No Digar Dev Pandey, MBA-IB, FMS- BHU 2012


13) Any suggestion you feel worth mentioning to excel the services of Nepal SBI Bank, Patan branch.

……………………………………...............................................................................................

……………………………………………………………………………………………………

……………………………………………………………………………………………………

14) Rate the overall Service Satisfaction:

1-Highly Satisfies 2-Satisfied 3-Moderately Satisfied 4-dissatisfied 5- Not at all satisfied

Personal Detail

NAME : --------------------------------------------------------------------------------------------------------

ADDRESS : ----------------------------- -----------------------------TEL:--------------------------------------------

AGE GROUP : 18-29 30-39 40-49 50+

GENDER : Male Female

OCCUPATION: Business Professionals Students Housewife Employee Farmer

ANNUAL INCOME:

< Rs.100, 000 Rs.100,000-Rs.300,000 Rs.300,000-Rs.500,000 > Rs. 500,000

Thank you for your Co-operation.


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