Banking Services Provided by Ritesh

BANKING SERVICES PROVIDED BY KIST BANK
(A Case Study of Dhading Branch, Dhadingbesi, Dhading district)
By
TANKA NARAYAN SHRESTHA

B.B.S.(Final Year)
Exam Roll No. 3750028
T.U. Reg. No. 14023-90
(tankanarayan_shrestha2000@yahoo.com)
A Fieldwork Report
Submitted to
Nilkantha Multiple Campus

Tribhuvan University
in partial fulfillment of the requirement for the degree of
BACHELOR OF BUSINESS STUDIES
Dhadingbesi, Dhading District

December 2010
Faculty of Management
TRIBHUVAN UNIVERSITY
RECOMMENDATION
This is to certify that the Fieldwork assignment Report
Submitted by
Tanka Narayan Shrestha
B.B.S.(Final Year)
Exam Roll No. 3750028
T.U. Reg. No. 14023-90
Entitled
BANKING SERVICES PROVIDED BY KIST BANK
(A case Study of Dhading Branch, Dhadingbesi, Dhading district)
has been prepared as approved by this Department. This

fieldwork assignment report is forwarded for examination.
....................................................
Nawa Raj Sharma
Supervisor and Faculty In-charge
....................................
Bhupendra Shrestha
Campus Chief
Nilkantha Multiple Campus

Dhadingbesi, Dhading
Date: Dec, 2010

i
Declaration
I hereby declare that this fieldwork assignment report entitled " Banking
services Provided by kist bank: A case Study of Dhading Branch,
Dhadingbesi, Dhading district" is my own work except otherwise as
acknowledged. I have not submitted it or any of its part to any other
institutions for any degree.
............
(Tanka Narayan Shrestha)

December 2010
ii
Acknowledgement
First and foremost, I would like to acknowledge my heartfelt gratitude and
sincere thanks to The Campus Chief of Nilkantha Multiple Campus Mr
Bhupendra Shrestha and Supervisor and Faculty In-charge Mr Nawa Raj
Sharma for their intellectual guidance, constructive comments and moral
support throughout my fieldwork period.
I would like to thank Nilkantha Multiple Campus administration and
lecturers for their cooperation since the inception of this fieldwork. I am
grateful to all the respondents (Customers) who participated actively in my
fieldwork and cooperated with me by responding to my all questions readily.
I owe a great debt of gratitude to the staff family of KIST Bank, Dhading
Branch, Dhadingesi for providing me secondary source of information. My
appreciation goes to Branch Manager Mr. Tejasbi Kumar Basnet,
Accountant Mr Ram Chandra Giri, Ms Subhadra Adhikari of Customer
Service Department, Cashier Pradip Lohani, Security Guard Mr Ash Man
Shakya and rest staffs who cooperated with me to boost up my fieldwork
report successfully.
My colleagues at Nilkantha Multiple Campus Dhading deserve thanks for
unconditional support at many activities. I am obliged to my wife Sita
Shrestha, who assisted me in computer work along with moral support. I am
obliged to my Son Adesh Shrestha and daughter Agya Shrestha who assisted
me with moral support and deep affection.
At last but not least, I am indebted to my father and mother who are always a
great source of inspiration to me.
Tanka Narayan Shrestha

BBS, 3rd (Final) Year
(Email: tankanaryan_shrestha2000@yahoo.com)
December, 2010(Paush, 2067)
iii
List of Acronyms
CSD
FD
NRB
ATM
Ltd
NRS
BOD
CDs
NOW
A.D.
B.S.
A/C or a/c
ADBL
RBBL
SDBL
DDBL
MBL
CDBL
MDBL
No/s
df
S.D.
S.E.
NEPSE
FDL
Govt
SMS
ABBS
TC
SME
L/C
MBS
CSR
Dev Commtt
KBL
BC
Customer Service Department

Fixed Deposit
Nepal Rastra Bank
Automated Teller Machine
Limited
Nepalese Rupees
Board of Directors
Certificates of Deposit
Negotiable Order of Withdrawal
Anno Domini
Bikram Sambat(Nepal's authentic year)
Account
Agricultural Development Bank Ltd
Rastriya Banijya Bank Ltd
Sanima Development Bank Ltd
Deprosc Development Bank Ltd
Machhapuchhre Bank Ltd
Civic Development Bank Ltd
Mankamana Development Bank Ltd
Number
Degrees of Freedom
Standard Deviation
Standard Error
Nepal Stock Exchange
Fixed Deposit against Loan
Government
Short Message Service
Any Branch Banking Service
Travel Cheque
Small and Medium Enterprises
Letter of Credit
Mobile Banking Service
Corporate Social Responsibility
Development Committee
KIST Bank Ltd
Before Christ
iv
Table of Contents
Recommendation
Declaration
Acknowledgement
List of Acronyms
Table of Contents
List of Tables
List of Figures
Chapter 1. Introduction
1.1.
Introductory Information
1.1.1.
Background Information
1.1.2.
Literature Survey
Concept and Origin of Banking
Concept
Some definitions of Bank
Origins of Banking
Services Banks offer
Deposit Services
Loan Services
Cash Management and other Services
1.1.3.
Overall Objectives and problem statement
1.1.4.
Specific Objectives and Significance of the study
1.1.5.
Limitations of the study
1.1.6.
Methodology of the fieldwork
1.1.6.1. Research Design
1.1.6.2. Introduction of KIST Bank Ltd
Introduction to Dhadingbesi Branch
1.1.6.3. Population, Samples and Method of Sampling
1.1.6.4. Data Collection Procedure
Primary Source of Data
Secondary Source of Data
1.1.6.5. Variables and measures
1.1.6.6. Sample Characteristics
1.1.6.7. Data Analysis
Chapter 2: Data Presentation, Analysis & Discussion
2.1.
Presentation of Data
2.1.1.
Services Provided by KIST Bank
2.1.1.1. Deposit Services
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9
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2.1.1.2. Non-deposit services

17
2.1.1.3. Newly developed unique service
22
2.1.1.4. Corporate Social Responsibility (CSR)
22
2.2.
Frequency Distribution
22
2.2.1.
Sex of the Respondent
22
2.2.2.
Age of the Respondents
23
2.2.3.
Caste of the Respondent
24
2.2.4.
Village Development Committees of the Respondent
25
2.2.5.
Profession of Respondents
26
2.2.6.
Role of Respondents in Respective Families
27
2.2.7.
Number of Accounts each Respondent has in the Bank
28
2.2.8.
Objectives for which each Respondent visited the bank
28
2.2.9.
Type of Deposits Respondents has in KIST Bank
29
2.2.10. Decision Making style of Respondent
30
2.2.11. Competitors of KIST Bank Ltd.
31
2.2.12. Motivating Factors
31
2.2.13. Familiarity of the Interest Rate
32
2.2.14. Interest Rate Sensitivity
33
2.2.15. Familiarity with KIST's additional services
34
2.2.16. Unique Services
35
2.2.17. Quality of KIST's Banking Services
36
2.3.
Analysis of Data
37
2.3.1.
Average Age and nos of a/c each respondent has in the bank 37
2.3.2.
Chi-Square statistics for test of goodness of fit
37
2. 4.
Findings
38
Chapter 3: Summary, Conclusion and Recommendation
40
3.1.
Summary of the Fieldwork project
40
3.2.
Conclusion
40
3.3.
Recommendations
40
3.3.1.
Core Recommendation
41
3.3.2.
Other Recommendation
41
References
43
Appendices
44
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List of Tables
Table 1: Gender of Respondents
22
Table 2: Age of Respondents
23
Table 3: Ethnic access to the Banking services
24
Table 4: Village Dev Commtt having access to the Bank's Services
25
Table 5: Profession of Respondents
26
Table 6: Role of Respondents in Respective Families
27
Table 7: Number of Accounts each Respondent has in the Bank
28
Table 8: Objectives for which each Respondent visited the bank
28
Table 9: Type of Deposits Respondents has in KIST Bank
29
Table 10: Decision Making style of Respondent regarding a/c opening 30

Table 11: Other Banks Where each Respondent has Deposit Accounts 31
Table 12: Motivating Factors for Respondent to open Accounts in
KIST Bank
32
Table 13: Familiarity of the Interest Rate Provided by the Bank
33
Table 14: Interest Rate Sensitivity of the Respondents
33
Table 15: Familiarity with KIST's additional services except deposit 34

Table 16: Unique Services Offered by KIST Bank against
Competitors
35
Table 17: Quality of KIST's Banking Services as Perceived by the

Respondents
36
vii
List of Figures
Figure 1: Gender of Respondents
23
Figure 2: Age of Respondents
24
Figure 3: Ethnic access to the Banking services
25
Figure 4: Village Dev Commtt having access to the Bank's Services
26
Figure 5: Profession of Respondents
27
Figure 6: Role of Respondents in Respective Families
27
Figure 7: Number of Accounts each Respondent has in the Bank
28
Figure 8: Objectives for which each Respondent visited the bank
29
Figure 9: Type of Deposits Respondents has in KIST Bank
30
Figure 10: Decision making style of Respondent regarding

a/c opening
30
Figure 11: Other Banks where each Respondent has Deposit

Accounts
31
Figure 12: Motivating Factors for Respondent to open

Accounts in KIST Bank
32
Figure 13: Familiarity of the Interest Rate Provided by the Bank
33
Figure 14: Interest Rate Sensitivity of the Respondents
34
Figure 15: Familiarity with KIST's additional services except deposit 35

Figure 16: Unique Services Offered by KIST Bank against
Competitors
36
Figure 17: Quality of KIST's Banking Services as Perceived by the

Respondents
viii
37
Chapter 1
INTRODUCTION
1.1. Introductory Information
This section has dealt with introductory matters and overall design of field
work project.
1.1.1. Background Information
Nepal is one of the underdeveloped countries of the South Asia. It has
different geographical features. It has been facing the problem of
accelerating the pace of economic development. It has very low per-capita
income. The only one alternative of economic development is the maximum
utilization of existing human, economic, natural and physical resources in
the productive sector. For this purpose Nepal has been adopting mix
economic model in five year plans although the economic modality is under
restructuring phase. In this regard, banks play a vital role by identifying and
mobilizing the savings, which are scattered in small amounts in nook and
corner of the country. Banks collect the deposits from various a/c and invest
them in productive sectors. It deals with money and credit. It is an institution
that accepts deposits of customers and lends it out to those who require it for
investment. Thus, banks are those financial institutions that offer the widest
range of financial services especially saving and credit and perform the
widest range of function of financial intermediary for supporting the
business and industry in the national and international economy.
In Nepal there are development and commercial banks. Their number is
increasing very rapidly. Nepal Rastra Bank is central bank of Nepal. It
regulates, monitors and inspects the banking and financial sector and money
market. Banking regulation has made it mandatory that each bank should
establish its rural branch for extending its urban branches. Nepal's majority
of the population lives in rural areas. The poverty is also hedging in the same
area. Investment in new productive sectors has become compulsory for
creating employment and easy environment of development within country
boundary. At the same time many banks have been established aiming at
providing quick, quality and comfortable banking services to the general
public and commercial and industrial sectors. While speaking about
Dhading's banking sector, there are about dozen banks either development or
commercial ones. Agricultural Development Bank, Rastriya Banijya Bank,
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Sanima Development Bank, Deprosc Bank, Swablamban Development

Bank, Machhapuchhre Bank (Highway site), Civic Development Bank
(Central office), KIST Bank and Mankamana Development Banks have
already launched their services in Dhading district.
In the whole, every bank's motto is to provide simple and needed banking
services to the public. Banking is the fastest growing sector in the economy.
In such context, it has been necessary and interesting to find out what type of
services these newly established and mushrooming banks are currently
offering to the general public. In this background, KIST bank has been
chosen for this field study. KIST Bank is one of the commercial banks of
Nepal. This fieldwork has made an attempt to study different aspects of
banking services provided by KIST bank, Dhading branch and give relevant
feedback to the Bank's branch team.
1.1.2. Literature Survey
Before the topic for the field study was chosen, the researcher went through
the online and offline literatures regarding concept of bank, banking
services, origin of bank and development of banking sector in Nepalese and
world context. Different textbooks, bulletin and reports were reviewed. The
annual report of the selected bank, previous fieldwork reports, textbooks and
banking laws and regulations were reviewed to identify and understand the
context and situation of the field study problem. The online material was
reviewed in Microsoft Encarta Library 2009. Similarly website of Nepal
Rastra Bank and KIST bank were also visited by the researcher for obtaining
depth knowledge of the topic.
The important outputs of the literature reviews can be summarized
hereunder:
Concept and Origin of Banking
Concept
Microsoft Encarta defines bank as business offering financial services. It
further explains that this is a business that keeps money for individual
people or companies, exchanges currencies, makes loans, and offers other
financial services.
Banking is the business of providing financial services to consumers and
businesses. The basic services a bank provides are checking accounts, which
can be used like money to make payments and purchase goods and services;
savings accounts and time deposits that can be used to save money for future
-2-
use; loans that consumers and businesses can use to purchase goods and
services; and basic cash management services such as check cashing and
foreign currency exchange. Four types of banks specialize in offering these
basic banking services: commercial banks, savings and loan associations,
savings banks, and credit unions. But in developing countries like Nepal,
there are one more type of Bank-Development Banks.
A broader definition of a bank is any financial institution that receives,
collects, transfers, pays, exchanges, lends, invests, or safeguards money for
its customers. This broader definition includes many other financial
institutions that are not usually thought of as banks but which nevertheless
provide one or more of these broadly defined banking services. These
institutions include finance companies, investment companies, investment
banks, insurance companies, pension funds, security brokers and dealers,
mortgage companies, and real estate investment trusts.
Some definitions of Bank
Simply, Bank can be defined as the institution which is legally authorized to
create money and credit. Many scholars have defined bank with different
terms but with more or less same meaning.
R.S. Sayers defines bank as" I believe in that fact the banks are not
purveyors of money, but also in an important sense, manufacturers of
money."
G. Crowther defines bank in this way-"A bank is an institution, which
collects money from those who have it spare or who are saving it out of their
income and lends this out to those who require it."
On the other hand, Horace White defines bank as a manufacturer of credit
and machine for facilitating exchanges.
Professor R.P.Kinley defines Bank as "Bank is an establishment, which
makes to individuals such advance of money as may be required safety made
and to which individuals entrust money when not required for use."
According to Nepal's Commercial Bank Act, 2031(1974 A.D.), bank means
a commercial bank established under this act.
While summarizing above bank definitions it can be said about the nature of
bank that bank is an artificial individual created by state's law, it is financial
intermediary, it works as an agent, issues notes, accepts cheque, provides
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merchant banking services and it works as an advisor of the customer and

nation. In this meaning, the bank looks as partner of the nation which
collaborates its efforts with the government to uplift the economy of the
country.
Origins of Banking
In Nepalese context, Nepal Bank Ltd is the oldest but sufficiently
modernized commercial bank. After that different development and
commercial banks were established for development of Nepalese economic
sector by boosting up financial part. Now there are more than 30 commercial
banks within country boundary. There are joint venture banks also.
Speaking about world banking history, many of todays banking services
were first practiced in ancient Lydia, Phoenicia, China, and Greece, where
trade and commerce flourished. The temples in Babylonia made loans from
their treasuries as early as 2000 BC. The temples of ancient Greece served as
safe-deposit vaults for the valuables of worshipers. The Greeks also coined
money and developed a system of credit. The Roman Empire had a highly
developed banking system, and its bankers accepted deposits of money,
made loans, and purchased mortgages. Shortly after the fall of Rome in AD
476, banking declined in Europe.
The increase of trade in 13th-century Italy prompted the revival of banking.
The moneychangers of the Italian states developed facilities for exchanging
local and foreign currency. Soon merchants demanded other services, such
as lending money, and gradually bank services were expanded.
The first bank to offer most of the basic banking functions known today was
the Bank of Barcelona in Spain. Founded by merchants in 1401, this bank
held deposits, exchanged currency, and carried out lending operations. It
also is believed to have introduced the bank check. Three other early banks,
each managed by a committee of city officials, were the Bank of Amsterdam
(1609), the Bank of Venice (1587), and the Bank of Hamburg (1619). These
institutions laid the foundation for modern banks of deposit and transaction.
For more than 300 years, banking on the European continent was in the
hands of powerful statesmen and wealthy private bankers, such as the
Medici family in Florence and the Fuggers in Germany. During the 19th
century, members of the Rothschild family became the most influential
bankers in all Europe and probably in the world. This international banking
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family was founded by German financier Mayer Amschel Rothschild (17431812), but it soon spread to all the major European financial capitals.
The Bank of France was organized in 1800 by Napoleon. The bank had
become the dominant financial institution in France by the mid-1800s. In
Germany, banking experienced a rapid development about the middle of the
19th century with the establishment of several strong stock-issuing or
publicly owned banks.
Banking in the British Isles originated with the London goldsmiths of the
16th century. These men made loans and held valuables for safekeeping. By
the 17th century English goldsmiths created the model for todays modern
fractional reserve bankingthat is, the practice of keeping a fraction of
depositors money in reserve while extending the remainder to borrowers in
the form of loans. Customers deposited gold and silver with the goldsmiths
for safekeeping and were given deposit receipts verifying their ownership of
the gold deposited with the goldsmith. These receipts could be used as
money because they were backed by gold. But the goldsmiths soon
discovered that they could take a chance and issue additional receipts against
the gold to other people who needed to borrow money. This worked as long
as the original depositors did not withdraw all their gold at one time. Hence,
the amount of receipts or claims on the gold frequently exceeded the actual
amount of the gold, and the idea that bankers could create money was born.
Services Banks offer
Deposit Services
Commercial banks and thrifts offer various services to their customers.
These services fall into three major categories: deposits, loans, and cash
management services. There are four major types of deposits: demand
deposits, savings deposits, hybrid checking/savings deposits, and time
deposits. What distinguish one type from another are the conditions under
which the deposited funds may be withdrawn.
A demand deposit is a deposit that can be withdrawn on demand at any time
and in any amount up to the full amount of the deposit. The most common
example of a demand deposit is a checking account. Money orders and
travelers checks are also technically demand deposits. Checking accounts
are also considered transaction accounts in that payments can be made to
third partiesthat is, to someone other than the depositor or the bank
-5-
itselfvia check, telephone, or other authorized transfer instruction.

Checking accounts are popular because as demand deposits they provide
perfect liquidity (immediate access to cash) and as transaction accounts they
can be transferred to a third party as payment for goods or services. As such,
they function like money.
Savings accounts pay interest to the depositor, but have no specific maturity
date on which the funds need to be withdrawn or reinvested. Any amount
can be withdrawn from a savings account up to the amount deposited. Under
normal circumstances, customers can withdraw their money from a savings
account simply by presenting their passbook or by using their automated
teller machine (ATM) card. Savings accounts are highly liquid. They are
different from demand deposits, however, because depositors cannot write
checks against regular savings accounts. Savings accounts cannot be used
directly as money to purchase goods or services.
The hybrid savings and checking account allows customers to earn interest
on the account and write checks against the account. These are called either
negotiable order of withdrawal (NOW) accounts, or money market deposit
accounts, which are savings accounts that allow a maximum of three thirdparty transfers each month.
Time deposits are deposits on which the depositor and the bank have agreed
that the money will not be withdrawn without substantial penalty to the
depositor before a specific date. These are frequently called certificates of
deposits (CDs). Because of a substantial early withdrawal penalty, time
deposits are not as liquid as demand or savings deposits nor can depositors
write checks against them. Time deposits also typically require a minimum
deposit amount.
Loan Services
Banks and thrifts make three types of loans: commercial and industrial
loans, consumer loans, and mortgage loans. Commercial and industrial loans
are loans to businesses or industrial firms. These are primarily short-term
working capital loans (loans to finance the purchase of material or labor) or
transaction or longer-term loans (loans to purchase machines and
equipment). Most commercial banks offer a variable rate on these loans,
which means that the interest rate can change over the course of the loan.
Whether a bank will make a loan or not depends on the credit and loan
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history of the borrower, the borrowers ability to make scheduled loan

payments, the amount of capital the borrower has invested in the business,
the condition of the economy, and the value of the collateral the borrower
pledges to give the bank if the loan payments are not made.
Consumer loans are loans for consumers to purchase goods or services.
There are two types of consumer loans: closed-end credit and open-end
credit.
Closed-end credit loans are loans for a fixed amount of money, for a fixed
period of time (usually not more than five years), and for a fixed purpose
(for example, to buy a car). Most closed-end loans are called installment
loans because they must be repaid in equal monthly installments. The item
purchased by the consumer serves as collateral for the loan. For example, if
the consumer fails to make payments on an automobile, the bank can recoup
the cost of its loan by taking ownership of the car.
Open-end credit loans are loans for variable amounts of money up to a set
limit. Unlike closed-end loans, open-end credit does not require a borrower
to specify the purpose of the loan and the lender cannot foreclose on the
loan. Credit cards are an example of open-end credit. Most open-end loans
carry fixed interest ratesthat is, the rate does not vary over the term of the
loan. Open-end loans require no collateral, but interest rates or other
penalties or fees may be chargedfor example, if credit card charges are not
paid in full, interest is charged, or if payment is late, a fee is charged to the
borrower. Open-end credit interest rates usually exceed closed-end rates
because open-end loans are not backed by collateral.
Mortgage loans or real estate loans are loans used to purchase land or
buildings such as houses or factories. These are typically long-term loans
and the interest rate charged can be either a variable or a fixed rate for the
term of the loan, which often ranges from 15 to 30 years. The land and
buildings purchased serve as the collateral for the loan.
Cash Management and other Services
Although deposits and loans are the basic banking services provided by
banks and thrifts, these institutions provide a wide variety of other services
to customers. For consumers, these include check cashing, foreign currency
exchange, safety deposit boxes in which consumers can store valuables,
electronic wire transfer through which consumers can transfer money and
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securities from one financial institution to another, and credit life insurance
which automatically pays off loans in the event of the borrowers death or
disability.
In recent years, banks have made their services increasingly convenient
through electronic banking. Electronic banking uses computers to carry out
transfers of money. For example, automated teller machines (ATMs) enable
bank customers to withdraw money from their checking or savings accounts
by inserting an ATM card and a private electronic code into an ATM. The
ATMs enable bank customers to access their money 24 hours a day and
seven days a week wherever ATMs are located, including in foreign
countries. Banks also offer debit cards that directly withdraw funds from a
customers account for the amount of a purchase, much like writing a check.
Banks also use electronic transfers to deposit payroll checks directly into a
customers account and to automatically pay a customers bills when they
are due. Many banks also use the Internet to enable customers to pay bills,
move money between accounts, and perform other banking functions.
For businesses, commercial banks also provide specialized cash
management and credit enhancement services. Cash management services
are designed to allow businesses to make efficient use of their cash. For
example, under normal circumstances a business would sell its product to a
customer and send the customer a bill. The customer would then send a
check to the business, and the business would then deposit the check in the
bank. The time between the date the business receives the check and
deposits the check in the bank could be several days or a week. To eliminate
this delay and allow the business to earn interest on its money sooner,
commercial banks offer services to businesses whereby customers send
checks directly to the bank, not the business. This practice is referred to as
lock box services because the payments are mailed to a secure post office
box where they are picked up by bank couriers for immediate deposit.
Another important business service performed by banks is a credit
enhancement. Commercial banks back up the performance of businesses by
promising to pay the debts of the business if the business itself cannot pay.
This service substitutes the credit of the bank for the credit of the business.
This is valuable, for example, in international trade where the exporting firm
is unfamiliar with the importing firm in another country and is, therefore,
reluctant to ship goods without knowing for certain that the importer will
pay for them. By substituting the credit of a foreign bank known to the
-8-
exporters bank, the exporter knows payment will be made and will ship the
goods. Credit enhancements are frequently called standby letters of credit or
commercial letters of credit.
1.1.3. Overall Objectives and problem statement
The objectives of this field study were to find out situation and/of services
provided by KIST Bank. This field study has tried to identify the situation of
different variables regarding banking services provided by KIST bank. The
field study has focused the services of KIST bank Dhadingbesi branch for
this purpose.
1.1.4. Specific Objectives and Significance of the study
The specific objectives of this field study were as follows:
To find out types of baking services provided by the Dhadingbesi
branch of KIST Bank.
To trace out uniqueness of the banking services of the bank branch.
To identify the customers of the different VDCs or location and
professions of respondents who have received the services of the bank's
branch so far.
To study the structures of deposit of the bank branch.
To know the popular deposit and other services the branch is offering
till date.
To find out the major objectives of respondents for which they visit the
branch.
To describe the decision making styles of customers with which they
are deciding to open account in the bank.
To identify the competitors of the KIST Bank in Dhadingbesi.
To know the factors of attraction of customers to open account in KIST
bank.
To find out the interest rate sensitivity and level of awareness of the
customers regarding services provided by the branch.
To measure the quality of services of KIST bank branch Dhadingbesi
from the customers' perspective.
The significance of this study could be mentioned in the following points:
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This field study makes an attempt to find out average number of

accounts each respondent has in this bank.
Similarly the study tries to work out which age group of customers is
most engaged in banking activities and its cause.
This field study aims at looking for the relation between different
levels of categories of variables in the regard of banking services
provided by the Dhadinbesi branch of KIST Bank.
And ultimately, on the basis of the over mentioned findings, the study
recommends necessary and appropriate measures to the bank branch
for sustaining its growing customer craze and further improve its
services towards customers' satisfaction.
1.1.5. Limitations of the study
The constraints and limitations of the study were as follows:
This study is based on the experience of KIST Bank, Dhadingbesi
branch which is situated at the Bhairavi Sadan of Bich Bazaar of
Dhadingbesi, Dhading district. It takes only the services of KIST
bank's Dhadingbesi branch into account. Thus it is case study.
The study includes only the customers who visited the bank when this
study was carried out. Its results are valid only for the customers of
KIST bank.
This case study survey is based upon the record of the Bank's branch,
direct observation of the banking activities and personal interviews
with the customers of chosen day of operation.
Necessary and enough information were difficult to obtain easily
regarding the total list of customers because of the need of customers'
safety and business secrecy of Bank's branch.
There was not enough time for the study to complete comfortably.
1.1.6. Methodology of the fieldwork
The methodology followed to carry out the field study was as follows:
1.1.6.1. Research Design
The study is based on explorative, descriptive and non parametric research
methodology. It relies upon central tendency, frequency, measure of
dispersion and Chi Square statistics of variables under study.
- 10 -
The study has made an attempt to examine if there is any relation among
different categories of variables- uniqueness and quality of bank services.
Similarly the study explores the relation among the categories of the
variables-interest rate sensitivity, decision making style on account opening,
objective of bank visit, profession, ethnicity, motivating factors of the
customers pertaining to opening the account and familiarity of interest rate
and other services provided by the bank branch. The study also aims at
finding out the existence of interrelation among the categories of variables
like types of deposits and other competing banking establishments in the
local area where KIST Bank is delivering its various banking services.
1.1.6.2. Introduction of KIST Bank Ltd
The bank has come into existence with the vision to become the best bank
based on operational excellence and superior financial performance. Its
mission is to become a leading bank by providing best quality financial
products and services to its customers, enhancing shareholders value,
contributing to the economic prosperity of the country and creating excellent
growth opportunity for the employees.
With its vision of becoming the best bank on operational excellence and
superior financial performance, KIST Bank was initially incorporated as a
'C' class financial institution in 2003 for undertaking limited banking
activities. The Bank started commercial banking activities from May 7, 2009
after complying with all the conditions of Nepal Rastra Bank(NRB).
The Bank is a public limited company incorporated under the Bank and
Financial Institution Act 2006 and the Companies Act 2006. The Bank is
licensed by NRB to undertake commercial banking services and merchant
banking activities in the country.
The Authorized Capital of the Bank is Rupees 5 Billion and the Issued and
Paid-Up Capital is Rupees 2 Billion. 60 Percent of the Paid-Up Capital is
held by the promoter and remaining 40% is held by the general public. The
shares of the Bank are listed at Nepal Stock Exchange Limited (NEPSE), the
only Stock Exchange in the country, as 'A' category share.
The Bank has a six member Board of Directors (BOD) out of which four
represents the promoters' group, two represents the general public and one
represents the Professional Director.
By end of fiscal year 2065/66 the bank has fifty one branches across the
country. KIST Bank stands for customers' convenience and support. The
bank is claimed to be driven by values of efficiency in operations, integrity
and a strong focus on catering the needs of every customer by offering high
- 11 -
quality and cost effective products and services. The professional

management team along with dedicated employees is always looking
forward to serve the customers, understand their needs and design tailored
products. The bank operates in highly automated environment in terms of
information technologies and communication systems, thus enabling
delivery of prompt and quality services. It has put in substantial efforts and
investments in acquiring the best technologies available to build necessary
banking infrastructures.
Introduction to Dhadingbesi Branch
The study is primarily based on the activities of Dhadinbesi branch of KIST
Bank Ltd situated at the Bichbazar of Dhadingbesi, district centre of
Dhading. The branch is one and 45th branch of the 51 branches of KIST
Bank Ltd spread over the area of country Nepal. The branch was established
and inaugurated on Phagun 19th of calendar year 2066 B.S.( Feb-Mar, 2010)
with transaction. Its most unique service is ATM that started on 1st week of
Asar 2067 (2010). The branch has started services also except the deposit
services. The branch has issued bank guarantee and Fixed deposit against
loan (FDL). There are altogether seven staffs working in the branch. Among
them four are office staffs, one support staff and two security guards.
Among the four office employees of the branch, there are Branch Manager,
Accountant, Cashier and CSD staff. There are five males and two female
staffs in total.
1.1.6.3. Population, Samples and Method of Sampling
The study covers the customers of the Dhadingbesi branch of KIST Bank.
The Bank was selected randomly for the study of given variables. For this,
the bank was selected by using StatTrek Software. The software randomly
selected this bank from among the list of banks operating in Dhadingbesi.
Then it selected the month Bhadra among 12 months of operation of KIST
banks's Dhadingbesi branch. Likewise, the software further selected the third
week of Bhadra (Aug-Sep) from among the five weeks of this month.
Among the 7 days of the week of operation of the branch, the working dayThursday was selected for administering the interview with the customers.
The day was 17th (2nd of Sep) day of the selected month-Bhadra. At that
day, total 199 people visited the bank branch. They were 145 male and 54
female customers. Out of them total 20 customers (10 male and 10 females)
were randomly selected for questionnaire survey.
- 12 -
1.1.6.4. Data Collection Procedure

Primary Source of Data
The primary data was collected from the 20 customers of the selected day.
An interview schedule was designed in view of the data requirements. The
interview schedule was administered to the customers on the premises of the
bank's branch office.
All the customers who were approached for the interview readily agreed to
respond to the questions. The average time taken by each questionnaire to be
filled up was 20 minutes. The whole study was carried out within 2067
Bhadra (Aug-Sep, 2010) alone.
Secondary Source of Data
The secondary sources of data were textbooks, annual progress report of the
bank, and official publication, online and offline, of concerned agencies. The
researcher visited website of Nepal Rastra Bank (NRB), the central bank of
Nepal also. The online library Microsoft Encarta 2009 was gone through to
gain knowledge of banking history in worldwide context.
Likewise the official website of KIST Bank Ltd was also visited by the
researcher to collect secondary information about the bank and its services.
To check the validity of the information and for obtaining information about
contemporary development of the branch, group discussion was also carried
out with the branch staffs including the branch manager.
1.1.6.5. Variables and measures
The interview schedule had seventeen items. Two items were designed to
obtain demographic feature of the respondents. They were sex and
respondents' role in their families. These variables had dichotomous
questions. Among the rest items, no of a/c each respondent has in the bank
and their ages were quantitative variables.
The remaining items were designed to grab data of uniqueness and quality of
services of the bank. Likewise other variables were- interest rate sensitivity
and familiarity, decision making style, objectives of bank visit, occupation,
ethnicity, location or VDCs of customers, their familiarity with other
services except deposit and factors that motivated the customers to open
account in KIST bank.
In the same way, the variables-types of deposits and local competitors were
designed to collect required data for analyzing the question at hand.
- 13 -
All the variables except number of accounts and age were measured in the
nominal (categorical) scale. For the ease of respondents to answer, some
categorical variables were designed as multiple choice questions.
1.1.6.6. Sample Characteristics
The sampled respondents comprised of 10 male and 10 females. Similarly
among the customers, there were two respondents having role of guardians
and 18 respondents having role of members in their family.
1.1.6.7. Data Analysis
The responses were categorized, tabulated, processed and analyzed using
different methods. The researcher used the SPSS 14 software for analyzing
collected data. Frequency distributions, percentages, means, standard errors
confidence interval and mode were calculated. To find out the existence of
the inter-relation among the different categories of nominal variables, chisquare statistics for the test of goodness of fit were also calculated and
compared with the tabulated value for certain degrees of freedom(df) and at
certain significance level. To visualize the statistics, different types of charts
were used. The significance of calculated statistics was tested in 95 %
confidence level.
- 14 -
Chapter 2
DATA PRESENTATION, ANALYSIS & DISCUSSION
2.1. Presentation of Data
The section is devoted to present the description of services KIST Bank Ltd
is offering to the general public and also includes statistics like frequencies,
mean, mode, standard deviation and chi-square values of the collected data.
The statistics have been presented, analyzed and their significance tested. On
the basis of tested significance, relevant conclusions have been drawn about
the population. They could be mentioned under following sub-sections:
2.1.1. Services Provided by KIST Bank
This subsection describes the various services provided by KIST Bank Ltd.
They can be mentioned as Deposit services, Non deposit services, other
services and Newly developed unique services so on. They are elaborated
into following paragraphs:
2.1.1.1. Deposit Services
KIST Call Account
This account is an ideal for carrying out day to day business transactions
thus facilitating corporates by paying interest on the deposits. This account
will be linked with current account.
KIST Current Account
A current account is ideal for carrying out day-to-day business transactions.
KIST Current Account offers the flexibility of accessing account anytime,
anywhere, pay using payable at par cheques or deposit cheques at any KIST
branches.
Fixed Deposit Account
KIST has introduced several schemes of Fixed Deposits in order to cater the
needs of its depositors. The bank offers attractive rates of varied maturities
ranging from three months to six years. There is flexibility of payment of
interest on the same. Customers can get interest payment on a periodic basis
or at maturity.
- 15 -
KIST NaraNari Nikshep

Naranari Nikshep was brought for a period of one month on the occasion of
upgradation of Kist from finance company into a commercial bank. Both
singles and couples can take advantage of this scheme that offers an
attractive interest rate. The product was valid until 7 June 2009.
Kist Savings Account
KIST Savings Account is a deposit scheme designed to cater the saving
needs of individuals, households, businessman and corporates. It is a
transactional interest bearing account wherein a deposit is placed with the
bank for an unspecified period of time and the depositor can withdraw or
transfer the funds whenever required through different means. The bank
believes that the saving account with it will rightly meet customers' needs
for a bank account. Main savings accounts would be explained hereunder:KIST Khutruke Savings Scheme
It is a form of Savings Account which aims to cultivate savings habit
amongst the children and encourages the parents for the best utilization of
money for their children. This product has been extremely popular among
the housewives who are playing a significant role in getting their children
habitual in savings and husband in depositing the amount regularly in the
bank.
KIST Student Savings Scheme
KIST Student Savings Scheme is a form of Savings Account introduced with
the object of developing banking habits amongst the students and providing
them easy and convenient banking facilities in the form of free fund transfer,
debit card and other various facilities.
KIST Super Savings Scheme
KIST Super Savings Scheme is claimed to provide attractive return on
customers' savings. This Scheme is offered with a very attractive interest
rate of 7% p.a. which is said to be arguably one by the best rates in savings
accounts in the industry. This account can be opened with a minimum
balance of Rs.1,000.
KIST Senior Citizen Savings Scheme
Old aged citizens are always looked upon with great respect and reverence
for their contribution to the society. KIST Bank has designed unique savings
scheme especially dedicated to senior citizens of more than 58 years of age
- 16 -
offering interest rate of 6.75% p.a. on daily balance. Account can be opened
with just a minimum balance of Rs. 100/-.
KIST Tax Free Savings Scheme
It is claimed to be one of the most innovative and probably the first one of
its kind in the Nepalese banking industry. Under the scheme, customers can
enjoy interest @ 6% p.a. on daily balance and the bank itself pays interest
tax on behalf of the customers.
KIST Bonus Savings Scheme
It was introduced for a limited period of time. The account could be opened
by depositing only Rs.1/- and additional Rs. 100/- was deposited by the bank
itself. The product offered interest rate @6.25% p.a. on daily balance.
KIST Gaunle Bachat
KIST Gaunle Bachat is a saving account targeted to the individuals. This
account is expected to contribute positively in endeavor of Bank to get
maximum access of banking to the actual need people who are staying in
villages.
KIST Journalists Peace Savings
Journalists have played a significant role in restoring peace in the country.
The country is still struggling in establishing peace in the country fully.
Despite journalists playing a viral role in all sectors, no banks have brought
out a separate product aiming to facilitate them. Aiming to provide tailormade banking service package to Journalist, KIST Bank has launched KIST
Journalist Peace Savings. Identity Card of the Journalist or recommendation
letter from the respective media is must to enjoy this service.
KIST Paurakhi Bachat Khata
For the benefit of all employees and laborers all around Nepal, "Paurakhi
Bachat Khata" scheme has been launched. All laborers can be benefited by
opening this new scheme which has very low minimum balance and high
interest-rate.
2.1.1.2. Non-deposit services
Consumer banking, corporate banking and transaction banking come under
this service.
- 17 -
Consumer banking:Various type of loaning services come under this service. They are as
follows:
Agriculture Loan
Based on the viability of the agriculture project/proposal, Agriculture Loan
to finance the short/long-term financing need of an individual/firm/company
may be made available to purchase tractor, seeds, fertilizers, insecticides etc.
Education Loan
Such loan has been designed to meet the aspirations of students for
completion of their studies both in and out of the country. KIST's education
loan scheme provides loan for those students who demonstrate ability, drive
and ambition but do not have the financial resources to achieve their goals. It
is provided for payment of admission fees, monthly fees, examination fees,
books, stationery and instruments required for course undertaken by
borrowing scholar.
Hire Purchase Loan
KIST's Hire Purchase Loan with its attractive features and simplicity in
processing has been designed with a view to fulfill the dreams of
professionals, self employed, business executives, and business houses who
wish to own a vehicle of their own. Under this scheme, KIST avails loans
for purchase of new/used vehicles as well as for commercial vehicle
financing.
Housing Loan
Owning a house is a dream for many and KIST Bank is always there to help
customers realize their dreams under Kist home loan (Kist Ghar Karja)
scheme. Kist Home Loan is a term loan, developed to cater the personal
financing needs of salaried individuals, self-employed, professionals, and
owners of small family businesses. It is provided for
construction/renovation/extension of house, purchase of house/apartments,
land or land and building or apartment for individual purpose.
KIST Cheli-Beti Home Loan Scheme
This is a simple term loan developed to provide indivisual home loan
facilities to women. The product is launched with a view to meet the
financing needs of such women who cultivates strong dream to have a plot
of land or construction/renovation/extension a home or purchase a home to
pass life with family in own home under her own ownership. Its target
market is Nepalese women having own regular income from undivided
family, permanent salaried women in continued service for minimum 2
- 18 -
years. Professionals-at least in 2 years in practice, self-employed

businessmen-at least 2 years in business, high Net worth individuals (having
personal net worth of more than Rs. 10 million). It is provided for
construction/renovation/extension of house, purchase of house/apartment
and land only or land and building or apartment for individual purpose.
KIST Easy Loan
It is the first product of its kind to be introduced in Nepal to fulfil the short
term cash requirements of students. Under this scheme, the students are
provided loan against their educational certificates.
Corporate Banking:Bank Guarantee Business, KIST Microfinance Wholesale Loan, KIST
Salary Solutions, KIST Uddhamshil Karja, Letter Of Credit, Project Finance
and Working Capital Loan come under such service.
Bank Guarantee Business
In the course of business, if the customers or their business needs any form
of guarantee to smoothly carry out your activities, the bank is ready for
issuance of the different types of guarantees as bid bond and performance
bond.
KIST Microfinance Wholesale Loan
Such Loan is specially designed for financing to the rural people through
partnership with other microfinance institutions. The product aims to
empower financially excluded deprived people across the country.
KIST Salary Solutions
KIST Salary Solutions is an extension of KIST Uddhmshil Karja. It has been
designed to provide free salary distribution to the staff of educational
institutions, government offices and finance for meeting the working capital
requirement of the educational institutions
KIST Uddhamshil Karja
It is brought for enterprises like wholesalers, retailers, small scale
manufacturing and processing units, importers and exporters, suppliers,
workshops, educational institutes, clinics and hospitals, tours and travels etc
who are in actual need of external financing to enhance their business. The
product will finance net current asset of business unit in the form of working
capital up to one year and term loan to finance on capital expenditure
requirement up to 6 years.
- 19 -
Letter Of Credit
KIST Bank provides the facility of opening Letter of Credit (L/C) in order
to enable corporates and businessmen to import and export different goods.
Project Finance
On the basis of the viability of the project, term loan is provided for
acquiring fixed assets (land, building, machinery and equipments) to set up a
new industrial unit, or for financing the modernization, expansion or
diversification of an existing unit.
Working Capital Loan
In order to cater to the diverse and varied business requirements of the
clients, bank offers wide range of credit solutions with the aid of world class
technology platforms. Working capital needs of the business will be funded
under working capital loan. The funding will be made based on the actual
needs of the business. The intended business house should submit the
proposal for working capital loan.
Transaction Banking:Any Branch Banking Service
Any Branch Banking System (ABBS) provide customers with a flexible
service for banking from any branches located anywhere in the country.
Through its nationwide network of branches and an array of upcoming
branches, customers can enjoy Any Branch Banking Service from any of the
nearest KIST Branches. Now customers can withdraw or deposit amount,
receive information about the current balance of their account from any
KIST branches.
Cheque Clearing Service
KIST Bank Ltd has become the member of the clearing house of the Nepal
Rastra Bank. Now, cheques issued by customers can be deposited into any
banks and other financial institutions who are the member of the clearing
house issue. Alternatively, customer can deposit cheques drawn on various
banks and other financial institutions who are the member of the clearing
house. In additional to this the bank is providing service as leader clearing
agent for other sub-member of the clearing house for their clearing
transactions. This is one of the value added services to its customer.
- 20 -
Fund Transfer
KIST Bank provides the facility of inward and outward transfer of funds
through its strong network of branches spread across the country.
Investors Grievances Cell
The Bank has set up Investor Grievance Cell at its registered office wherein
investors' grievances relating to transfer of shares, non-receipt of dividend,
annual report, or any other matter can be made. These grievances shall be
addressed and solve within 3 working days from the date of receipt of the
grievances.
KIST SMS Banking Service
The bank is claimed to take care of host of banking needs of its customers
through KIST SMS banking. Through SMS banking, customers can check
their current balance, receive notification of loan related transactions and
notification of cheque transactions.
Locker Service
KIST Bank has started Safe Deposit Locker Service to its customers from
its own Head office premises and other branches including Banepa,
Koteshwor and Narayangarh Branch. KIST Bank is planning to provide Safe
Deposit Locker Service from all other branches to its customers.
KIST has made arrangements of an advance security system for security of
its customer's valuables put on locker. CCTV and alarm system linked
directly with government security organization has been fitted.
KIST has insured every locker with a sum ranging from Rs.50,000.00 to
Rs.1,00,000.00 depending upon size of locker to compensate customer for
any kind of losses of valuable due to any kind of theft or burglaries or
natural calamities, disasters or act of god.
Remittance
KIST Bank being very much concerned about customers and by assessing
their need has come up with new product namely 'KIST REMIT'. The KIST
Remittance System is designed for its geographically disbursed customers,
to help them in easy, convenient and safe money transfer anywhere in the
world. The bank provides attractive exchange rates to customers.
Traveller Cheque
Traveler's Cheque (TC) is a secured way of carrying cash during foreign
trips. KIST Bank provides the facility of purchase and sell of these cheques
at competitive rates
- 21 -
2.1.1.3. Newly developed unique service

KIST Mobile Banking Service
In the quest to provide innovative banking services to customers, KIST bank
has launched Mobile Banking Service (MBS) from 19th May 2010. It's main
objective is to provide banking services to those who are currently facing
difficulty for banking accessibility on account of unavailability of banking
services pervasively which will definitely add value to customers' banking
experience.
2.1.1.4. Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) has always been on top of the agenda
of KIST Bank. CSR for it means embracing responsibility for the impact of
our activities on the environment, consumers, employees, communities,
stakeholders and all other members of the public sphere thereby managing
our business responsibly and sensibly for long term sustainable banking. As
part of its commitment to CSR, KIST has been conducting various (almost
dozen) activities for the welfare of the community and leading employee
engagement activities.
2.2. Frequency Distribution
This part has dealt with organization of data collected through questionnaire
survey. The data were organized into frequency distribution tables.
2.2.1. Sex of the Respondent
The respondents were categorized into female and male for the study of
respondents' demographic feature. They were deliberately selected. Table 1
and the bar chart of Figure 1 show that among the respondents there were 10
female and 10 male.
Gender
Male
Female
Total
Table 1: Gender of Respondents

Frequency
Percent
Cumulative Percent
10
50
10
50
20
100
- 22 -
50
100
2.2.2. Age of the Respondents

The respondents were categorized into six age groups each having interval
of five years. Most of the customers (35%) were of age between 20 to 25
years. Similarly 25 percent respondents were of age between 31 to 35 years.
The data shows the maximum involvement of younger people in banking
activities. The oldest respondents were of age between 46 to 50 years
showing least activity (5%) in banking affairs. Main cause for the big
involvement of younger customers is that the bank is technology driven and
youths are major users of the newly developed technology. Table 2 and chart
of Figure 2 together reveal the age composition of the respondents clearly.
Age Group
20 to 25 years
26 to 30 years
31 to 35 years
36 to 40 years
41 to 45 years
46 to 50 years
Total
Table 2: Age of Respondents

Frequency
Percent
Cumulative Percent
7
35
35
3
15
50
5
25
75
2
10
85
2
10
95
1
5
100
20
100
- 23 -
2.2.3. Caste of the Respondent

The respondents were classified among three ethnic groups for the study of
ethnic participation in banking activities and access to the banking services.
They were classified into Janajati, marginalized and elites. Shrestha was
categorized as Janajatis.. Marginalized group consists of Tamang castes. The
category Elites consists of Rijal, Timalsina, Thapa, Regmi, Ghimire,
Barakoti, Wasti and Adhikari. The caste Elites is most advantaged one.
Table 2 and Figure 2 together show that the Janajatis and Elites have most
access to the banking services and most active in banking activities.
Marginalized people have least access and are least active (5%) in banking
services and activities. This is also because Janajatis and Elites are
businessmen, educated, live in the district centre and the bank branch is also
operating within the same periphery. Table 3 and Figure 3 together show this
fact.
Table 3: Ethnic access to the Banking services
Ethnic Group
Frequency
Percent
Cumulative Percent
Elites
9
45
45
Janajati
10
50
95
Marginalised
1
5
100
Total
20
100
- 24 -
2.2.4. Village Development Committees of the Respondent

The respondents were observed in terms of their place of residence or
organization. The place of residence was measured in categories of VDCs.
The VDCs categories were found to be Nilkantha, Sankosh, Dhuwakot,
Salang, Semjong, Muralibhanjyang, Salyankot, Salyantar and Sunaulabazar.
One non vdc category was Govt Office. Nilkantha VDC is the town area
where the premise of the bank branch is also situated. Most of the
respondents (40%) were from town area. Sankosh VDC, despite of being
village area, touches the town VDC and 20% customers were found to have
come from there. The reason may be nearness, access to education and
information. Table 4 and the bar chart of Figure 4 disclose this reality
clearly.
Table 4: Village Dev Commtt having access to the Bank's Services
VDCs
Frequency Percent Cumulative Percent
Dhuwakot
1
5
5
Muralibhanjyang
1
5
10
Nilkantha(town area)
8
40
50
Govt. Office
1
5
55
Salang
1
5
60
Sankosh(adjoining town)
4
20
80
Semjong
1
5
85
Salyankot
1
5
90
Salyantar
1
5
95
Sunaulabazar
1
5
100
Total
20
100
- 25 -
2.2.5. Profession of Respondents

The respondents were observed from the view of their profession. The
occupation was classified as Agriculture, Business, Daily laborers,
Employee, House wife and Retired employee.
Table 5 and bar chart of Figure 5 together reveal that there are 50% of the
respondents whose occupation is business. Employed persons are 20 %
among the total 20 respondents. The farmers occupy 15% of the
respondents. Daily laborers, housewives and retired employees are each 5%
of the total respondents. This figure slightly indicates that majority of the
customers of the bank branch are from profession of business.
Occupation
Agriculture
Business
Daily Laborers
Employee
House Wife
Retired Employee
Total
Table 5: Profession of Respondents

Frequency
Percent Cumulative Percent
3
15
15
10
50
65
1
5
70
4
20
90
1
5
95
1
5
100
20
100
- 26 -
2.2.6. Role of Respondents in Respective Families

The respondents were categorized from the view of their role and/or position
in their families. This was done for the purpose of gaining information
regarding their demographic features. Table 6 and Figure 6 together disclose
about the responsibility of the respondents in the respective families. It
depicts majority of the respondents (90%) are in dominated (member)
position in their families.
Table 6: Role of Respondents in Respective Families
Position in Family
Frequency
Guardian
2
10
10
Member
18
90
100
Total
20
100
- 27 -
2.2.7. Number of Accounts each Respondent has in the Bank

The respondents were observed in terms of number of accounts they are
holding in the KIST Bank Ltd. Most of the respondents (80%) have single
account in the bank. Out of the 20 respondents involved in the interview, 3
(15%) have two accounts in the bank in name of different deposits and
saving accounts. Only one respondent (5%) has different four accounts in
the same bank. This is well revealed from table 7 and bar chart of Figure 7.
Table 7: Number of Accounts each Respondent has in the Bank
Nos of a/c
Frequency
1
16
80
80
2
3
15
95
4
1
5
100
Total
20
100
2.2.8. Objectives for which each Respondent visited the bank

Each of the respondents was asked why they had come to the bank on the
day the survey was being carried out. Out of them, 9 (45%) told their
objective as depositing cash. The percentage of the respondents, who came
to open new accounts and withdraw cash from their accounts for the
consumption, was 20% each. This is well illustrated in the Table 8 and
Figure 8 together.
Table 8: Objectives for which each Respondent visited the bank
Objectives of Visit
Consult/Other Services
3
15
15
Deposit cash
9
45
60
Open New Account
4
20
80
Withdraw cash
4
20
100
Total
20
100
- 28 -
2.2.9. Type of Deposits Respondents has in KIST Bank

The bank has provided different deposit services. Particularly the bank
branch has Normal Saving, Super Saving, Khutruke Saving, Salary Saving,
Gaule Saving, Institutional Current accounts and other various saving
accounts for the convenience of the customers to deposit their money. Table
9 and Figure 9 are together depicting that most of the customers (40%) have
Super saving a/c in the bank. The customers (15%) who have more than one
account also have Super and other saving accounts mixed. Likewise,
Normal, Khutruke and Gaule saving accounts each has occupied 10% of the
total deposit accounts. There is a slight indication that Super saving account
is the most popular product of KIST Bank Ltd. out of its all the deposit
saving accounts.
Table 9: Type of Deposits Respondents has in KIST Bank
Type of Deposit a/c
Frequency
Normal Saving
2
10
10
Super Saving
8
40
50
Khutruke Saving
2
10
60
Salary Saving
1
5
65
Gaule Saving
2
10
75
Institutional Current
1
5
80
Super and Others
3
15
95
Gaule and Others
1
5
100
Total
20
100
- 29 -
2.2.10. Decision Making style of Respondent

The respondents were observed in terms of how they decide regarding a/c
opening in the bank. There were four categories of the respondents. Table 10
reveals that majority of the respondents (60%) have told that they opened the
account in the bank with self motivation. Similarly four respondents (20%)
have opened their account with the advice of Staffs of KIST Bank Ltd. This
fact is well justified by the Figure 10 also.
Table 10: Decision Making style of Respondent regarding a/c opening
Source of Decision
Frequency
Percent
Cumulative Percent
Bank Staff
4
20
20
Friend & Neighbors
2
10
30
Institutional Decision
2
10
40
Self Motivation
12
60
100
Total
20
100
- 30 -
2.2.11. Competitors of KIST Bank Ltd.

The survey looked for banking competitors of KIST Bank operating in the
local market. There are various other banks in which customers of KIST
Bank Ltd have deposit accounts. It has been well disclosed from the Table
11 that Rastriya Banijya Bank and Sanima Development Bank are nearest
competitors of KIST Bank in local market of Dhadingbesi. ADBL, CDBL
and other cooperatives are also there which share deposit of the same
respondents. Similarly it can be observed from the Table that there are 4
(20%) respondents who have their accounts only in KIST Bank. They have
accounts nowhere other than KIST Bank Ltd. They are fresh customers for
the bank branch. This reality is visually illustrated with the Figure 11 also.
Table 11: Other Banks Where each Respondent has Deposit Accounts
Other Banks
Frequency
Agriculture Dev. Bank
1
5
5
Rastriya Ban. Bank
4
20
25
Sanima Dev. Bank
3
15
40
Civic Dev. Bank
1
5
45
Cooperative
1
5
50
More than One Bank
6
30
80
Nowhere
4
20
100
Total
20
100
- 31 -
2.2.12. Motivating Factors

The study has also observed the factors which have motivated the customers
to deposit their money in KIST Bank Ltd although they have already such
deposit accounts in other banks in the local market. The factors were
categorized into five types. The first category Free Services and Facilities
refers to the free ATM, SMS banking and ABBS services. This category has
secured maximum (60%) score. This service alone has made this bank
outstanding among its competitors in the narrow money market of
Dhadingbesi. Similarly the mixed category of higher interest rate, free
services and facilities has also attracted the customers to open accounts in
KIST Bank Ltd, Dhadingbesi branch. Table 12 and Figure 12 together reveal
this situation.
Table 12: Motivating Factors for Respondent to open Accounts in KIST Bank
Factors
Free Services & Facilities
12
60
60
Higher Interest Rate
3
15
75
Higher interest, Free Service & Facilities
1
5
80
Location
1
5
85
Quick Good Service
3
15
100
Total
20
100
- 32 -
2.2.13. Familiarity of the Interest Rate

The researcher had a pre-assumption that those who have deposit accounts in
the bank should be certainly aware of the interest rate provided. This has
proved less true from the survey. There were 7 (35%) respondents also who
were not informed of the interest rate provided by the bank where they have
deposit accounts. Rest respondents (65%) were aware of the interest rate
provided by KIST Bank Ltd. This can be seen from Table 13 along with
Figure 13.
Table 13: Familiarity of the Interest Rate Provided by the Bank
Category
Frequency
Percent
Cumulative Percent
Unfamiliar
7
35
35
Familiar
13
65
100
Total
20
100
- 33 -
2.2.14. Interest Rate Sensitivity

The Bank claims that its interest rate service is best of the banks. This field
study has checked the interest rate sensitivity of the respondents. This
variable was measured because it has direct impact on the depositors who
are receiving good interest service from the bank. This matter becomes
important matter of concern in the time of liquidity crisis.
The analysis of the data shows that most of the respondents (14, 70%) are
indifferent against the decrease of interest rate provided in their deposits by
the bank. This may be because of unique services of the bank provided in the
local market. The analysis of Table 14 tells that least of the customers (2,
10%) are afraid of the interest rate decrease and they have declared that they
will decrease balance in their deposit accounts in KIST Bank Ltd. Such
depositors are from poor economic background. Similarly 4 (20%)
respondents appeared to be those who will divert their deposit anywhere else
if the interest rate is decreased by the bank branch. The same matter has
been illustrated by the Figure 14.
Table 14: Interest Rate Sensitivity of the Respondents
Response
It doesn't matter
14
70
70
I Invest anywhere else
4
20
90
I Decrease the Deposit
2
10
100
Total
20
100
- 34 -
2.2.15. Familiarity with KIST's additional services

KIST Bank Ltd has been providing additional services except the deposit
ones. These additional services include Fixed Deposit Against Loan(FDL),
ATM, SMS banking, remittance service, cheque clearing facility, bank
guarantee, cheque-book, statements, balance certificate, SME loan, auto
loan, chelibeti home loan, revolving loan, hire purchase loan, KIST
udhyamsheel karja, home loan, TC service, business loan, mobile banking
and so on.
Out of them ABBS, statements, SMS banking, ATM card and cheque books
are free services provided by the bank from its head office and different
branches including Dhadingbesi branch. Most of the respondents (11, 55%
customers) are familiar with these extra, non deposit, cost and free of cost
services. Table 15 and Figure 15 together clearly illustrate this fact.
Table 15: Familiarity with KIST's additional services Except deposit
Response
Frequency
Percent
Cumulative Percent
I don't know
9
45
45
I know
11
55
100
Total
20
100
- 35 -
2.2.16. Unique Services

Present banking sector has become most competitive. There is cut throat and
tough competition among the banking institutions for luring customers and
maintaining liquidity. They are following unhealthy practices for surviving.
But this has provided many alternatives and advantageous choices to the
customers. The banks should survive and grow with proliferation of services
now-a-days. In Dhadingbesi KIST Bank Ltd has started free ATM card
service first. Most of the respondents (9, 45%) told that free ATM service is
the most unique service of Dhadingbesi KIST bank. Three respondents
(15%) have said that free ABBS is the unique service of the bank. This fact
is well depicted from Table 16 and Figure 16 together.
Table 16: Unique Services Offered by KIST Bank against Competitors
Services
ATM & Free ABBS Services
6
30
30
I Don't Know
2
10
40
Free ABBS Services
3
15
55
Free ATM Provision
9
45
100
Total
20
100
- 36 -
2.2.17. Quality of KIST's Banking Services

The variable Quality of banking services of KIST Bank Ltd was measured to
gauge the standard of service of the branch in particular and provide relevant
feedback to the branch team. In this regard, 10 (50%) respondents said
quality of services of KIST bank very good. Similarly, eight (40%)
respondents have ranked the bank's service as fair and very few (2, 10%)
respondents have suggested the bank to improve its service quality. This was
obvious because the bank premise was under construction at the time of this
survey. The fact will be clearer from Table 17 and Figure 17 together.
Table 17: Quality of KIST's Banking Services as Perceived by the Respondents
Response
Frequency
Percent
Cumulative Percent
Improve it
2
10
10
Fair
8
40
50
Very Good
10
50
100
Total
20
100
- 37 -
2.3. Analysis of Data

This subsection has dealt with the analysis of data presented in previous
subsection. The analysis was done by using central value, spread of data and
sampling errors. To evaluate the importance of the result of analysis of some
nominally classified data, chi-square tests were used. These could be
presented in followings:
2.3.1. Average Age and nos of a/c each respondent has in the bank
Table 18: Mean, Mode and Standard Deviation
Variable
Age(years)
Nos of a/c
Sample Size(N)
Mode
Statistics
Mean Std. Deviation
23
1
30.5
1.3
20
20
8.6
0.72
2.3.2. Chi-Square statistics for test of goodness of fit

Table 19: Chi-Square Values at 95% confidence level
Variables
Value(cal.) df Value(table)
7.2693
2
5.99
Caste
0.2
1
3.84
VDCs (Town and Village area)
6.8
3
7.82
Profession
4.4
3
7.82
Objectives
7.2
3
7.82
Type of Deposits
- 38 -
Decision Making Style

Competitors
Motivating Factors
Familiarity of the Interest Rate
Interest Rate Sensitivity
Familiarity of Additional services
Unique Services
Quality of KIST's Banking Services
13.6
9.0954
13.2
1.8
12.3938
0.2
6
5.1974
3
2
3
1
2
1
3
2
7.82
5.99
7.82
3.84
5.99
3.84
7.82
5.99
The test shows that, at the 95 % confidence level (0.05 Significance level),
the calculated Chi Square Values of variables caste, decision making style,
competitors, motivating factors and interest rate sensitivity are greater than
the tabulated value for the given degrees of freedom. It means that there is
significant difference among the categories of tested variables. The
difference are real and not due to sampling variation.
Similarly the calculated Chi Square Values of variables VDCs, profession,
objectives, type of deposit, familiarity of interest rate, familiarity of
additional services, unique services and quality of services are smaller than
the tabulated value for the given degrees of freedom. It means that there is
not significant difference among the categories of tested variables. The
difference has appeared due to merely sampling fluctuation. The Chi-Square
test frequency tables (observed and expected, original and reduced level)
have been included in the appendix.
2. 4. Findings
Significant Chi-Square value indicates that for given degrees of freedom and
at specified significance level, there is a real difference among the categories
of variables. The significant Chi-Square value of the variable Caste of
respondents shows that there is not equal participation and access of
different ethnic groups in the banking activities and services. The
significance test indicates that marginalized groups are the least benefited
ones from the banking services of KIST Bank Ltd in Dhading district.
Janajatis and Elites have more access in services of KIST Bank.
Similarly, significant chi square value of the variable Decision making style
shows that most of the customers are self-motivated towards opening
accounts in KIST Bank. The advice and mouth-to-mouth publicity by bank
staffs has played second effective role to help the customers decide upon
opening a/c in KIST Bank in Dhading. The next variable whose chi square
value is significant is Other competitor banks in local area. This has
indicated that Rastriya Banijya Bank is the biggest one of competitor banks
where customers of KIST Bank have various saving accounts.
- 39 -
Although there are various competitors of KIST Bank in the local market,
the bank is successful to attract sufficient customers. The motivating factors
are namely Free services and facility, Higher interest rate, mixture of these
products, Location of bank premise and Quick good service. The significant
chi square value of this variable obviously demonstrates that the free
services and facilities have performed major role to attract customers. Free
ATM, ABBS and other free of cost services fall under this category.
Likewise the significance chi square value of variable Interest rate
sensitivity has indicated that most of the customers (14, 70%) are indifferent
to the interest rate decrease. Four (20%) respondents are sensitive in terms of
that they will invest anywhere else if the interest rate decreases. Similarly
two (10%) respondents say that, if the interest rate decreases, they will
decrease their balance gradually from their accounts.
The remaining variables are location (vdc), profession, objectives of
customers' bank visit, type of deposits, knowledge of interest rate,
familiarity of additional service, unique service and quality of banking
service of KIST Bank Ltd. The chi square value of these variables at 0.05
significance level for the given degrees of freedom is not significant for the
test statistics fall within the tabulated value. The difference between the
categories of these variables is merely due to sampling variation. So, no
significant meaning could be derived from these variables.
- 40 -
Chapter 3
SUMMARY, CONCLUSION AND RECOMMENDATION
3.1. Summary of the Fieldwork project
This field work project on the topic of "Banking Services Provided By KIST
Bank: A Case Study Of Dhading Branch, Dhadingbesi" was conducted to
find out the types of services provided by KIST Bank and gauge the
popularity of these services among customers. The study also aimed at
knowing the existence of relation among different levels and categories of
the nominal variables. The Questionnaire was administered to the 20
customers of the bank who visited the branch at the day the survey was
being carried out. The Software StatTrek and SPSS 14 were used to sample
bank, month, week and day of operation to collect and analyze the collected
data. The researcher undertook informal discussion with the bank branch
staffs also. Different reports, textbooks, journals, annual publication of
banks, online and offline both were gone through to get the idea of topic to
be studied. The collected data were analyzed using simple statistical tools
like frequency, percentages, mean, mode, standard deviation and chi square
value. The calculated statistics were tested at 95 % confidence level and
conclusion was drawn.
3.2. Conclusion
The Analysis of the data shows that the confidence interval of per customer
average number of a/c lies within 1.3+ 1.96*0.164 that is 0.9786 through
1.6214 in 95 % confidence level. Similarly per customer average age in
years lies within 30.5+ 1.96*1.9242 that is 26.73 through 34.27 in the same
confidence level. Similarly the Chi Square statistical test of five variablescaste of respondents, their decision making style pertaining to opening
various a/c in KIST Bank, KIST's competitor banking institutions,
motivating factors and interest rate sensitivity shows that there is significant
difference among different level and categories of these variables. It means
the differences are not due to merely sampling variation. The difference
carries important meanings regarding the researched aspects of banking
services of KIST Bank, Dhading.
3.3. Recommendations
The data analysis and finding suggests some important facts about the
banking services being provided by KIST Bank Ltd Dhading branch. On the
- 41 -
basis of above data analysis and findings, the researcher has pointed out
following recommendations:
3.3.1. Core Recommendation
KIST Bank Dhading branch has not spread its services to the
disadvantaged and marginalized people equally. Bank should equally
cater the banking needs of all ethnic and economic groups. It should
attract and bring such section of society under the umbrella of its smart
banking services. It should provide its banking services for the
upliftment of poor and marginalized people of Dhading.
The customers' decision regarding a/c opening in this bank seems
influenced with advice of bank staffs. So the branch must use its
dynamic staff's potential for motivating the customers. It should provide
decision platform for the self-motivated customers.
Rastriya Banijya Bank is the nearest competitor of this bank. There is
sufficient number of fresh customers also. The KBL should focus on
fresh customers rather than the shared customers who have multiple
deposits and various saving a/c in multiple banks.
It must continue its free services and facilities to keep on attracting
customers. The popular ATM and ABBS services shouldn't be dropped
soon. These are the magnetic weapons of this bank.
The contemporary money market is facing liquidity shortage. Dhading
is rural economy based district. Most of the population is living in
poverty. Neither there is employment generation nor sufficient
profitable investment opportunities. The share market is also
deteriorating. In such condition, the customers are looking very
sensitive to the interest rate behavior of the bank. The bank should
think once more before decreasing its interest rate given in various
deposit and savings a/c.
3.3.2. Other Recommendation
The bank branch should launch business loan quickly. This is because
businessmen are major customers of this bank which is increasing
gradually. Dhading is going to become industrial district as small and
medium type entrepreneurship is developing within its boundary.
Dhading is remote district but almost all VDCs have motor road access.
The bank branch must start mobile (bus) banking service to cater the
banking need of remote villagers.
- 42 -
The bank should expand its CSR component. Its majority of the
customers are from the age group of 20 through 25 years. To retain this
economically active population, the bank should launch youth-friendly
social packages in the district. This may include sponsorship of games
and tournaments in special occasions and so on.
The bank must give emphasis on research and development of unique
services because the banking sector is full of cut-throat competition.
Unique services may assist the bank to keep its mass of customers
intact and attract new customers.
The bank should keep on improving its pace of quick service.
The bank should aggressively go ahead to attract all categories of
customers. It should make its extra services familiar among all sectors
of population.
- 43 -
REFERENCES
1.
Panta, Prem.R.(2009).Social Science Research and Thesis Writing.

Kathmandu: Buddha Academic Publishers and Distributors of
Nepal.
2.
Subedi, Bhisma.R., Devkota, Surya Pd. & Neupane, Dipendra K.

(2008).Banking & Insurance. Kathmandu:Asmita Books Publishers and
Distributors of Nepal.
3.
Gupta, S.P. (1991).Statistical Methods.New Delhi:Sultan Chanda &

Sons Publishers of India.
4.
Department of Forest.(2006).Kabuliyati Ban Hastantaran Prakriya

Sahayogi Pustika;Kathmandu:DoF.
5. KIST Bank Ltd.(2009/2010). Annual Progress Report;Kathmandu:KBL.

6.
Agrawal, Gobinda Ram (2010).Project Management in

Nepal.Kathmandu:M.K.Publishers and Distributors of Nepal.
7.
Subedi, Pushpa Kamal.(2000).Quantitative Techniques.

Kathmandu:Ratna Pustak Bhandar of Nepal.
Aryal, Luna. (2009). A case Study of Credit Policy and Loan

Management of Nepal Bank Limited. (n.p.).
9.
Statistics Tutorial [Online](Cited 2010, Aug, 25)

Available: <http://www.stattrek.com>
10. Microsoft Encarta 2009. 1993-2008 Microsoft Corporation

11. List of Commercial Banks in Nepal [Online](cited 2010, Aug, 28)
Available: <https: //www.nrb.org.np>
12. Services of KIST Bank Ltd [Online](cited 2010, Aug, 20)
Available: <https://www.kistbank.com>
- 44 -
APPENDICES
Appendix 1
Questionnaire Model for Bank Customers
S.N.: -........
Name of the respondent:................................................................
)
Female (
)
1. Sex ( ): Male (
2. Age (years):-...............
3. Which ethnic group do you belong? ( )
Janajati (
) Marginalized (
) Elites (
)
4. VDC...............................................
5. Occupation? ( )
Agriculture ( ) Business ( ) Employee
(
) Daily Laborer (
)
Housewife ( ) Employee ( ) Retired Employee (
)
6. Position in your family? ( ): Member ( )
Guardian (
)
7. Number of a/c in KIST Bank? One ( ) Two ( ) Three ( ) Four ( )
8. Objective of Bank Visit? ( )
Open new a/c ( ) Deposit ( ) Withdraw ( ) Consult/ other service ( )
9. Type of a/c of deposit in this bank? ( )
Normal saving ( ) Super saving ( ) Khutruke saving ( ) Salary saving ( )
Gaule saving ( ) Institutional current ( ) Super and others ( )
Gaule and others ( )
10. How did you decide to open a/c in KIST Bank? ( )
Bank Staffs ( ) Friend and Neighbors ( ) Institutional Decision ( )
Self Motivation ( )
11. Do You have deposits or any a/c in banks other than KIST? If yes, please
specify........................................................
12. Which service of KBL motivated you to open a/c? ( )
Free services and Facilities ( ) Higher Interest Rate ( )
Location ( )
Quick & good service ( ) Mix of higher interest rate, free service & facilities ( )
13. Are you familiar what interest rate KIST is providing in your deposit a/c? ( )
Familiar ( )
Unfamiliar ( )
14. What happens if KIST decreases interest rate in your deposit? ( )
Doesn't matter ( ) Invest anywhere else ( )
Decrease deposit ( )
15. Do you know other services except deposit KIST Bank provides? ( )
Know ( )
don't know ( )
16. Which service do you think Unique provided by KIST bank? ( )
ATM & ABBS ( ) Free ABBS ( ) Free ATM ( ) don't know ( )
17. Please qualify service of KIST Bank. ( )
Very Good ( ) Fair ( ) Improve ( ) Bad ( )
Thanks!
- 45 -
Appendix 2
Chi-Square Test Frequency Tables(Observed & Expected)
Table 1
Caste of the Respondents
Category
Observed N
Expected N
Residual
Others(Elites)
2.33
Janajati
10
6.67
6.67
3.33
Marginalised
6.67
-5.67
Total
20
20
Table 2
Location of the Respondents(reduced)
Category
Observed N
Expected N
Residual
District Center
10
-1
Village Area
11
10
Total
20
20
Table 3
Occupation of Respondents(reduced)
Category
Observed N
Expected N
Residual
Business
10
Employee
-1
Agriculture
-2
Others
-2
Total
20
20
Table 4
Objectives of Bank Visit
Category
Observed N
Expected N
Residual
Consult/Other services
-2
Deposit cash
Open New a/c
-1
Withdraw cash
-1
Total
20
20
- 46 -
Table 5
Types of Deposit A/C in KIST Bank(reduced)
Category
Observed N
Expected N
Residual
Normal Saving
-3
Super saving
Gaule saving
-3
Mixed & Others Saving
Total
20
20
Table 6
Decision Making Style(Source of decision)
Category
Observed N
Expected N
Residual
Bank Staff
-1
Friend & Neighbours
-3
Institutional Decision
-3
Self Motivation
12
Total
20
20
Table 7
Other banks where respondents have a/c (reduced)
Category
Observed N
Expected N
Residual
Rastriya Banijya Bank
6.67
-2.67
Sanima Dev. Bank
6.67
-3.67
Others
13
6.67
6.33
Total
20
20
Table 8
Motivating Factors(reduced)
Category
Observed N
Expected N
Residual
Free Service & Facilities
12
Higher Interest rate
-2
Quick Good Service
-2
Other Factors
-3
Total
20
20
- 47 -
Table 9
Familiarity of Interest rate
Category
Observed N
Expected N
Residual
Unfamiliar
10
-3
Familiar
13
10
Total
20
20
Table 10
Interest rate sensitivity
Category
Observed N
Expected N
Residual
Doesn't Matter
14
6.67
7.33
Invest anywhere else
6.67
-2.67
Decrease the deposit
6.67
-4.67
Total
20
20
Table 11
Familiarity of additional services
Category
Observed N
Expected N
Residual
Don't Know
10
-1
Know
11
10
Total
20
20
Table 12
Unique services of KBL
Category
Observed N
Expected N
Residual
ATM & Free ABBS
Don't know
-3
Free ABBS
-2
Free ATM Provision
Total
20
20
Table 13
Quality of Services of KBL
Category
Observed N
Expected N
Residual
Improve it
6.67
-4.67
Fair
6.67
1.33
Very Good
10
6.67
3.33
Total
20
20
- 48 -
Appendix 3
List of Statistical Formulas
i) Chi-Square Value
2 =
Where,
(O E)2
E
O = the frequencies observed

E = the frequencies expected
= the sum of
ii) Airthematic Mean ( X )
X=
N
Where,
= the sum of
N = Number of observations
X = Individual observation
iii) Standard Deviation(S.D.)
(
X X)
S .D. =
N 1
Where,
= the sum of
N = Number of observations
X = Individual observation
N-1 = Degree of freedom
- 49 -
Appendix 4
Composition of Deposits of KIST Bank Ltd Dhading
as of 2067_Bhadra_19
S.N.
1
2
3
4
5
6
7
8
9
10
11
12
Products
Kist Current Account
Kist Call Account
Kist Normal Saving
Kist Super Saving
Kist Student saving
Kist Khutruke Saving
Kist Salary Saving
Kist Journalist Saving
Kist Paurakhi saving
Kist Gaule Saving
Kist Naranari Deposit
Kist Fixed Deposit
Type of Deposit
Institutional
Institutional
Individual
Individual
Individual
Individual
Individual
Individual
Individual
Individual
Individual
Both
Total
Quantity
98
17
275
480
91
65
317
26
76
498
20
25
1988
Percentage
4.93
0.86
13.83
24.14
4.58
3.27
15.95
1.31
3.82
25.05
1.01
1.26
100.00
Figure : Composition of Deposit of KIST Bank

Dhadingbesi
Percentage of Deposit
35
Kist Current Account
30
Kist Call Account
25
Kist Narmal Saving
20
Kist Super Saving

Kist Student saving
15
Kist Khuturke Saving
10
Kist Salary Saving

Kist Journalist Saving
Kist Paurakhi saving
Kist Gaule Saving
Types of
1 Deposit
Kist Naranari Deposit

Kist Fixed Deposit
Source: KBL, Dhading-067/68
- 50 -
Map of the Study Area

Dhading District
Location of KIST
Bank Dhading
Nilkantha VDC
- 51 -
Few Snaps
KIST Bank Dhading at Bhairavi Sadan
KIST Bank Dhading with ATM outlet
Customer Service Department
Cash Department
Researcher waiting Respondents
Researcher administering questionnaire
- 52 -

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BANKING SERVICES PROVIDED BY KIST BANK

(A Case Study of Dhading Branch, Dhadingbesi, Dhading district)

TANKA NARAYAN SHRESTHA

Nilkantha Multiple Campus

in partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS STUDIES

Dhadingbesi, Dhading District

has been prepared as approved by this Department. This

Nilkantha Multiple Campus

Date: Dec, 2010

(Tanka Narayan Shrestha)

Tanka Narayan Shrestha

Customer Service Department

2.1.1.2. Non-deposit services

Table 1: Gender of Respondents

Table 2: Age of Respondents

Table 3: Ethnic access to the Banking services

Table 4: Village Dev Commtt having access to the Bank's Services

Table 5: Profession of Respondents

Table 6: Role of Respondents in Respective Families

Table 7: Number of Accounts each Respondent has in the Bank

Table 8: Objectives for which each Respondent visited the bank

Table 9: Type of Deposits Respondents has in KIST Bank

Table 10: Decision Making style of Respondent regarding a/c opening 30

Table 13: Familiarity of the Interest Rate Provided by the Bank

Table 14: Interest Rate Sensitivity of the Respondents

Table 15: Familiarity with KIST's additional services except deposit 34

Table 17: Quality of KIST's Banking Services as Perceived by the

Figure 1: Gender of Respondents

Figure 2: Age of Respondents

Figure 3: Ethnic access to the Banking services

Figure 4: Village Dev Commtt having access to the Bank's Services

Figure 5: Profession of Respondents

Figure 6: Role of Respondents in Respective Families

Figure 7: Number of Accounts each Respondent has in the Bank

Figure 8: Objectives for which each Respondent visited the bank

Figure 9: Type of Deposits Respondents has in KIST Bank

Figure 10: Decision making style of Respondent regarding

Figure 11: Other Banks where each Respondent has Deposit

Figure 12: Motivating Factors for Respondent to open

Figure 13: Familiarity of the Interest Rate Provided by the Bank

Figure 14: Interest Rate Sensitivity of the Respondents

Figure 15: Familiarity with KIST's additional services except deposit 35

Figure 17: Quality of KIST's Banking Services as Perceived by the

Sanima Development Bank, Deprosc Bank, Swablamban Development

merchant banking services and it works as an advisor of the customer and

itselfvia check, telephone, or other authorized transfer instruction.

history of the borrower, the borrowers ability to make scheduled loan

This field study makes an attempt to find out average number of

quality and cost effective products and services. The professional

1.1.6.4. Data Collection Procedure

KIST NaraNari Nikshep

years. Professionals-at least in 2 years in practice, self-employed

2.1.1.3. Newly developed unique service

Table 1: Gender of Respondents

2.2.2. Age of the Respondents

Table 2: Age of Respondents

2.2.3. Caste of the Respondent

2.2.4. Village Development Committees of the Respondent

2.2.5. Profession of Respondents

Table 5: Profession of Respondents

2.2.6. Role of Respondents in Respective Families

2.2.7. Number of Accounts each Respondent has in the Bank