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Management Information System

Information System of Siddhartha Bank Limited

Submitted To: Submitted By:

Mr. Prajwal Shrestha Ashish Subedi

MIS Course Instructor Sanim Amatya

Niyut tuladhar

Sudip gurung
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Acknowledgement
The successful completion of this project would not be possible without mentioning the people
who made it possible. So we are thankful and we deeply acknowledge all those people who
guided and encouraged us in converting our efforts to success.

We are greatly indebted and sincerely and whole-heartedly thank our course instructor Mr.
Prajwal Shrestha and Mr. Prabin Amatya, Branch manager, Siddhartha Bank Limited (SBL),
for invaluable co-operation and guidance throughout our research project, without the guidance
of whom this report would not have been complete.

And finally, we appreciate all the people who helped us during the course of our report.
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Introduction

This report is group project work of BBA 5th Managemnet Information System. The report has
been assigned to us by the faculty member of Mr. Prajwal Shrestha.

We have prepared this report after interviewing the head of IT department and Branch manager
mr Navaraj k.c and mr pravin Amatya. While making this report we collected information from
internet and other sources too. This report shows the details about introduction and the
information system of Siddhartha Bank Ltd. This report helps us to know about different
function and use of it in organization. . In addition to this, the report has helped in developing
our reporting, information collecting, interviewing, and group work skills
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List of Abbreviations:

ABBS: Any Branch Banking Service

ATM: Automated Teller Machine
BIN: Bank Identification Number
CSD: Customer Service Department
EBL: Everest Bank Limited
Forex: Foreign Exchange Market
HBL: Himalayan Bank Limited
MBL: Machhapuchchhre Bank Limited
NAC: Network Access Controller
NIBL: Nepal Investment Bank Limited
NPN: National Payment Network
NRB: Nepal Rastra Bank
RBB: Rastriya Banijya Bank
GBL: Global Bank Limited
BBA: Bachelor in Business Administration
IT: Information Technology
LC: Letter of credit
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Introduction of Siddhartha Bank Limited

Siddhartha Bank Limited (SBL) commenced operations in 2002. The Bank is promoted by a
group of highly reputed Nepalese dignitaries having wide commercial experience.We provide a
full range of commercial banking services through our 43 branches across Nepal. SBL believe
the best way to sustain, in the present competitive world, is to focus on customer satisfaction all
the time. For this reason our corporate slogan reads Our business is to understand your
business .SBL regularly evaluate market sensitivity to peak the customer sentiments in which
they hold the Bank. SBL today have 43 branches and 45 ATM network established at various
location all over Nepal. SBL already have some 70,000 depositors and 4,000 borrowing
customers in the relatively short period of our commencing business. SBL want to be a leader
among the banks of our age in Nepal and committed to achieving this vision by fulfilling the
interest of all the stakeholders through a motivated and fully committed staff. SBL aim is to
render efficient and diversified financial services. In addition to our core banking products in
deposits and corporate financing we have the whole range of personal and retail products for
Home, Auto, Education and mortgage loan for other miscellaneous requirements. Trade Finance,
Treasury, and Siddhartharemit for remittance and Cash Management services for speedy
collection of receivables are other services we offer to our valued clients. A network of ATMs
compliments our service and now Siddhartha iConnect service which is online Internet Banking
service being offered to access the accounts and information from your desk at your comfort.
The environment of Nepalese banking sector is undergoing a rapid transformation. With
liberalization in financial markets and integration of domestic market with external markets,
bank operations have become more complex and dynamic. We are geared to meet the challenges
and keep abreast with the changes. The Vision statement of the Bank describes the core values
and purposes that guide the Bank as well as an envisioned future. Fundamentally, in all dealings
SBL earnestly believes in transparency, financial soundness, efficiency and better technology.
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Vision

SBL's vision is to be financially sound, operationally efficient and keep abreast with
technological developments. The Bank firmly believes customer focus is a core value,
shareholder prosperity is a prime priority, employee growth is a commitment and economic
welfare is a sincere concern.

Mission

The Bank wants to be a leader among the banks of its age in Nepal by fulfilling the interest of the
stakeholders and also aims to provide total customer satisfaction by way of offering innovative
product and by developing and retaining highly motivated and committed staff. It directs all its
efforts to move ahead with increased profits. The following mission statement is a guide to meet
the Vision of the Bank:

As a first step, SBL will strive to be in a leading position amongst the banks of its age in terms
of profitability, productivity and innovation.

SBL aims at total customer satisfaction by rendering efficient and diversified financial services
through improved technology.

SBL will build a highly motivated and committed team of staff by nurturing a good work
culture to achieve superior individual performance aiming to enhance organizational
effectiveness.

SBL will be the place of pride to all its stakeholders.

Core values of the Bank

Customer focus

Shareholder prosperity

Employee growth

Economic welfare
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Organizational Hierarchy at Siddhartha Bank

Regional
Manager

Branch
Manager

Credit Department Operation Department

Letter of Retailer Clearing Customer Teller /

Credit Services Service Cash

Messenger Security Driver

Guard
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Main Business function of the organization:

Preparation and compilation of Budget estimates, revised estimates and supplementary grants.

Control of expenditure and economy measures.

Financing of Five year Plans and expenditure sanctions relating to Plan and Non-Plan Schemes
of all departments.

Policy matters/rules relating to pension.

Annual receipts and disbursements for the purpose of State Government.

All matters relating to Audit reports.

Assessing potential tax and non-tax revenues

Maintenance of loans, advances, accounts and matters related

To maintain the liquidity of business

To Minimize Currency Risk

To provide quick finance to Company

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Major functions of SBL

Major Functions

Customer Account Operation Distribution

Counseling Activities

Product Service Opening Closing

Counseling Counseling Accounts Accounts

Cheque Book Balance ATM

Deposit Distribution Certificate Distribution
Distribution
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Analysis of it department:
Functions of the IT department:

Implement control procedure for safety security and privacy of customer and banks data.

Support and guide user and management in all computer related issues.

Coordinate with software vendor for regular updating\up gradation of banking software.

Responsible for troubleshooting in any aspect, related to computer, computerization,

communication, etc. in regard to various branches of SBL.

Conduct a need assessment on adequate and appropriateness of computer, peripheral,

accessories, software and service.

Prepare technical specification, analyze and assist to evaluate bids and suggest a better,
appropriate, cost-effective solution/technology for SBL.

Work close with Administrative Division to prepare a software and hardware inventory by
maintaining hardware/software and recommend needful action for disposal. /replacement to
Administration Division through Information System Manager.

To aid management to decide upon whether to go for outsourcing or to develop the software
themselves.

Identifying and introducing new, appropriate and cost effective technology to enhance staff
productivity and bank performance in all aspect related to computer and information technology
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Database
Database and database technology play an important role in most of social areas where computer
are used, including business, education, medicine, etc. Database is shared collection of related
data which will be used to support the activities of particular organization. Database can be
viewed as a repository of that is defined and then is accessed by various users. The Prime Bank
has the CBS database that contains all the relevant data and information about the various
aspects of the organization, from the information about the staffs to the information about the
customers and various financial operations that helps in analysis and conduction of its routine
jobs as well as complex decision making.

Fig 2: database
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Analysis of other business system:

Main business function of the organization

This management information system is providing various kinds of facilities because of that the
customers are getting the facilities. They are providing the various kinds of scheme. Some of
them are mention below:
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Products &
Services

Deposits Credits cards Lending

Tele- Safe Deposit Transfer

banking Locker Fund

Deposits

Following types of accounts can he opened at any SBL branches upon completion of
simple documentary requirement. All the accounts can he opened in various currencies (against
which rate are provided) subject to ruled of opening and fulfilling the required documents.
Savings
Current
Fixed
Call

Guarantees

SBL Bank issues guarantees and Bonds on behalf of customers to the beneficiaries in
Nepal. Upon fulfillment of requirement, SBL, also arranges issuance of guarantees in the name
of foreign beneficiaries through reputed international banks.

Tele-banking
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Telephone banking is another product provided by SBL bank to its customers. Under this
arrangement customer can know the balance of his account through telephone with out human
assistance.

Western Union Money Transfer

SBL bank has established unique money remittance system with western union financial
service whereby money can be remitted anywhere in the world within minutes, through online
computer system funds can world. Nepali wage earners abroad can send money to their near and
dear ones in Nepal within a very short time. By using the above services, you can now send and
receive money within minutes in 165 countries in the world.

Automated Teller Machines (ATM)

SBL has launched the ATM facility to its account holders to enable fast withdrawal of
funds in account holder need not wait long hours for withdrawing money and sign cheques
anymore. A simple card with a unique PIN number known only to the account holder will
suffice.

Other facilities

The bank provides the facilities for the customer like deposit services, loans and
advances, consumer finance, cash management. remittance services etc.

PURPOSE OF MIS IN CONTEXT OF SBL

A management information system (MIS) is a system or process that provides the information
necessary to manage an organization effectively. MIS and the information it generates are
generally considered essential components of prudent and reasonable business decisions.
The importance of maintaining a consistent approach to the development, use, and review of
MIS systems within the institution must be an ongoing concern of both bank management and
MIS user. MIS should have a clearly defined framework of guidelines, policies or practices,
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standards, and procedures for the organization. These should be followed throughout the
institution in the development, maintenance, and use of all MIS.

The following are some of the key issues for using MIS in banking system (in context of Nabil
Bank).

a. The rapid pace of change:

Globalization has brought challenge on the part of management to compete
globally by making global standards. With Nepal entry into WTO, it has driven
more challenges on management to be able to strive in highly competitive
environment. In addition social changes, legislative changes (frequently issued
directives by NRB) and a change in tax policy requires changing the system
parameters as and when required. Remittance products require IS to function.

b. The interdependence of the organization units

Works of various organizational functional units like credit, operations,
remittance, cash etc. needs to be co-ordinate to increase effectiveness and
efficiency in work. It is MIS which help achieve this by providing all the required
information to users upon requirement. For example: works of credit department
(sanctioning the loan) and loan operations department (disbursing the sanction
loan) are highly interrelated.

c. The increasing complexity of management

With the rapid increase in number of financial institution (although market pie is
not increasing proportionately) Management complexity in banking sector of
Nepal is increasing in a rapid pace. Demands on quality, competitiveness and
timely delivery are key challenges faced by the management today.
MIS in Nabil has provided required information (prime customers-
deposits/lending, lending-deposit ratio, sector-wise investment, branch-wise
comparison of deposit/lending etc) to make decisions on time for continuous
improvement.

d. The availability of computers for end users

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Globalization and advancement in technology has largely affected the customer

modes of preference of service. Wide web literacy and interest of end users to
use technology has largely affected the way of doing business. Todays
customers require easy access to banking service. To facilitate this Nabil has
implemented IS that supports Cards products, Nabil Net (online banking-
Facilitating users to view their statements and transfer funds), Mobile commerce
(online utility payment service), Any Branch Banking Service (ABBS) etc.

In addition, the other objectives of MIS in banking industry are,

To provide timely, accurate and consistent data for management and budget
decision making
Provide a complete audit trail to facilitate auditors
To prepare and generate various reports required for regulating authority (NRB)

More than 80% of the time is spent by executives for receiving, communicating and using
information in organization. Hence objectives of using IS in an organizational setting is to
increase efficiency, effectiveness and competitiveness of an organization.

Limitation

Although it is advanced software and technically improved in transaction but there is problem in
soci- technological approach that is employee are finding difficult to use this software. Sometime
the current software does not work because of that the customers dont get the services. For e.g.:
sometimes the ATM doesnt work, so the customer cannot withdraw the money.

Summary, Conclusion And Recommendation

Summary

A bank is an institution which deals in money. A bank is like a reservoir. It draws surplus money from the
people who save and lend them to the people who want to use it for productive purpose. In this process
the bank earns commission. The rate of interest paid to the depositors is generally lower than the rate
charged to the borrowers. The difference between these two rates of interest is the profit of the bank.
Deposit collection is the main function of commercial bank.
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The present study has been undertaken to examine and evaluate the financial performance of SBL.The
study has resorted mainly to secondary data that has been first processed and analyzed comparatively.
Individual interview with the management personnel has been taken whenever necessary. This study is
exploratory as well as analytical sometimes.

A customer can be account holder when he opens account. There are the numbers of rules and
procedures regarding opening different types of accounts. The interest rates on different accounts are
different.

Conclusion

i. The deposit of SBL is in increasing trend. The share of fixed deposit is more than that of
savings, current, margin and other deposits in the deposit mix of SBL.
ii. The trend of interest bearing deposit has been gradually increasing but there has been
more fluctuation in non-interest bearing deposits, similarly, there is also more
fluctuation in interest expenses on total deposits.

Recommendations

i. Although SBL has a strong financial base and capital structure as well as good market
status and reputation in order to attract new customers and increase deposit collection
SBL should introduce new schemes.
ii. Customer services should be diversified and should further be accommodated.
iii. Interest rate on deposit should be competitive with other commercial banks.
iv. The bank should aim towards increasing its customers but it must also provide the
quality services to the present customers. For this the bank must make plans and
policies keeping customers in mind.
v. Bank should also pay attention towards the priority sector and industrial sector for
lending loans to develop the economic condition of the country.
vi. Bank should provide more facilities to the staff, it has to provide job satisfaction,
training and should encourage its staff.
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APPENDIX-1

SBL ATM Locations

ATM Locations

1 Head Office SBL, Hattisar,Kamaladi

2 Hattisar SBL, Hattisar,Kamaladi

3 Civil Mall ATM Lounge, Civil Mall, Sundhara

4 New Road SBL, ATM Lounge, New Road

5 Thamel SBL, Mandala Street, Thamel

6 Tinkune Jagadamba Tower, Tinkune

7 Gatthaghar SBL, Gatthaghar

8 Old Baneshwor SBL, Kumari Complex, Old Baneshwor

9 Patan SBL, Patan Dhoka, Patan

10 Maharajgunj SBL, Maharajgunj

11 Halchowk SBL, Halchowk, Swayambu

12 New Baneshwor ATM Lounge, New Baneshwor Chowk

13 Chahabil ATM Lounge, Chahabil Chowk

14 Satdobato SBL, Satdobato

15 Gongabu SBL, Gongabu

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Appendix -2
Management Team

Surender Bhandari
Chief Executive Officer
Shambhu Nath Gautam
Chief Business Officer
Sundar Prasad Kadel
Chief Operation Officer
Rameshwor Prasad Bashyal
Senior Business Officer
Sher Bahadur Budhathoki
Senior Business Officer
Laxman Subba
Head - SME & Consumer Banking
Arjun Bhadra Khanal
Head Business Support
Surya Bahadur Tamang
Head Corporate Credit
Shailaja Gyawali
Head Valley Resources
Srijan Krishna Malla
Head Information Technology
Ashish Kumar Sharma
Head Payment Solution
Ira Pradhan
Relationship Manager Credit
Kamal Basnet
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Branch Manager Biratnagar

Pankaj Pant
Head RBU - Branch Manager Tripureshwor

Appendix -3

Network & Branches

HEAD OFFICE

130/23, HATTISAR, Kathmandu, Nepal.

PO BOX: 13806
TEL: 01-4442919, 01-4442920
FAX: 977-1-4442921
SWIFT: SIDDNPKA
EMAIL: sbl@siddharthabank.com

1) HATTISAR BRANCH

Branch Manager: RAJESH POKHAREL

130/23, HATTISAR, Kathmandu, Nepal.
PO BOX: 13806
TEL: 01-4442919, 01-4442920
FAX: 977-1-4442921
SWIFT: SIDDNPKA
EMAIL: sblho@siddharthabank.com

2) NEW ROAD BRANCH 3) TRIPURESHWOR BRANCH

Branch Manager: BIPLAVI SINGH Branch Manager: PANKAJ PANT

PO BOX: 24321, Dharmapath,NewRoad
Kathmandu, Nepal.
TEL: 01-4224616, 01-4239535
FAX: 01-4239590
EMAIL: sblnrd@sbl.com.np
PO BOX: 13806, Tripureshwor
Kathmandu, Nepal.
TEL: 01-4232504, 01-4232509
FAX: 01-4232521
EMAIL: sbltrp@sbl.com.np

4) BIRGUNJ BRANCH 5) BIRATNAGAR BRANCH

Branch Manager: DILLI RAJ LEKHAK Branch Manager: KAMAL BASNET

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PO BOX: 107, ADARSHANAGAR, BIRGUNJ PO BOX: 195, MAINROAD, BIRATNAGAR

Parsa, Nepal. Morang, Nepal.
TEL: 051-531011, 051-531022 TEL: 021-532901, 021-532902
FAX: 051-531055 FAX: 021-532904
EMAIL: sblbrj@sbl.com.np EMAIL: sblbrt@sbl.com.np

Software used by SBL:

Finacle core banking software:-

Finacle core banking solution is a comprehensive, integrated yet modular business solution that
effectively addresses the strategic and day-to-day challenges faced by banks. It is highly
parameterizable providing that much-needed flexibility to adapt to a dynamic environment. The
solution has an integrated CRM module enabling banks to offer a rich and differentiated value
proposition to customers. The layered Service Oriented Architecture (SOA), STP capabilities,
web-enabled technology and 24 X7operations ensure multi-channel, multi-country and multi-
currency implementations. The functionality-rich modules in the solution provide banks with a
varied palette of features to continuously innovate on their product and service offerings. With
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Finacle core banking solution, banks can meet the challenges of managing change, competition,
compliance and customer demands effectively
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TABLES OF CONTENTS

ACKNOWLEDGEMENT
INTRODUCTION
LIST OF ABBREVIATION
LIST OF FIGURES
INTRODUCTION
ORGANIZATIONAL HIERACHY AT SDL
SOFTWARE USED BY SDL
DATABASE
MAIN FUNCTION OF THE ORGANIZATION
PURPOSE OF MIS
ANALYSIS OF IT DEPARTMENT
ANALYSIS OF OTHER BUSSINESS SYSTEM
LIMITATION
RECOMMENDATION
CONCLUSION
APPENDICES
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LIST OF FIGURES

1. ORGANIZATIONAL HIERARCHY AT SDL

2. DATABASE
3. HIERARCHY OF IT DEPARTMENT
4. INFORMATIONAL SYSTEM
5. FINANCIAL CORE BANKING SYSTEM