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Customer Service and Loan Activities of Nepal Bank Limited

Chapter-I
Introduction
1.1 World Banking History
The term bank Originated from Latin word “Bancus” which refers to bench on which the bankers
would keep its money and his records. Some believes it has been origin from French word
“Banqee” and Italian word “Banca” which means a bench for keeping, lending and exchanging
of money or coins in the market place by money lender and money changer.

The first bank called “Bank of Venice” was established in Venice, Italy 1157 A.D. is supposed to
be the most ancient bank. Following its establishment, a lot of banks in different parts of the
world were established. After the evolution of “Bank of England” in 1694 A.D. there came a
remarkable change in process of establishing the banking institution. It was established as a joint
stock bank and later on it became first central bank in the world. The idea of commercial banks
rapidly spread all over the world only after the foundation of bank.

Bank is a financial institution which is engaged in monetary transaction. It accepts deposit and
grant loan to needy person against securities. So, banks are said to be “financial Supermarket”. It
charges certain interest at some fixed interest rate per annul. Beside this, a bank also involves on
a number of agency services like remitting and collection cash on behalf of its client opening
bank drafts and LC activities and or writing shares of newly established companies. Banks are
those institution, which are established under certain act to perform monetary and credit
transactions

According to Crowther: “The bankers business is to take the debts of other people to offer his
own in exchange and these create money”.
According to US Law: “Any institution offering deposits subject to withdrawal on demand and
making loan of a commercial or a business nature is a bank”.
1.2 Banking history in Nepal
In the Nepalese context, banking sector is rather more slow evolution. In Nepalese history, a
merchant namely “SANKHDHAR”, who alone paid all the debt of the people in the country at
that time? This proves the existence of money lending function at that time. During the end of
14th century the term “TANKADHARI” i.e. moneylender were found in the course of
development of borrowing. The “TEJARATH” office established in 19th century used to give
loans to government employees. But the banking in Nepal has started in real sense with the
establishment of Nepal Bank Ltd. in 1937. NRB was established as a fully government owned
commercial bank in 1966.Anyhow, Nepal Bank Limited is the first commercial bank of Nepal
and was established in 1994 B.S. Then several legislation was made and other different types of
banks were developed in the country. After declaring free economy and the privatization policy,
Nepal Arab Bank (NABIL) was established in 1984 A.D. This the first modern bank with latest
banking technology. Then lot commercial bank opened in the country.

1.3 Introduction to Nepal Bank Limited


Nepal Bank Limited, The first bank of Nepal was established in November 15, 1937 A.D
(Kartik, 30, 1994). It was formed under the principle of Joint venture (Joint venture between
government & general public). NBL's authorized capital was Rs. 10 million & issued capital Rs.
2.5 million of which paid-up capital was Rs. 842 thousand with 10 shareholders. The bank has
been providing banking through its branch offices in the different geographical location.

Corporate Vision:

"Pioneer Bank with complete banking solution"

Mission Statement: NEW

Network for inclusion: Use bank's network to increase its reach all over the country from urban
areas to rural areas and help in improving the lifestyle of rural population and in turn become the
bank of choice of corporate, medium businesses and rural market.

Enhancing the value: To employees, shareholders, government and customers


World class banking services: Provide world class banking services by achieving excellence in
customer service and adopting high level technology standards

SPIRIT
Segmented business approach: For risk management and enhancement of efficiency

Partnership: With all stakeholders including the Government, employees, shareholders and
customer

Innovation: Of business areas and processes for providing Advanced banking services, and
enhance competitiveness

Responsiveness: responding to the changing need of the market/society/business on timely basis

Integrity: Uphold trustworthiness and business ethics in the business process

Total banking solutions: To cater the need of all sections of society

Objectives:
Nepal Bank Limited has the following objectives:
 Focus on building the positive net worth and meeting minimum capital requirement over the
coming five years.
 Focus on increasing the customer base and market share.
 Maximize the potential/efficiency of bank's staff.
 Focus on minimizing the risk associated with the business.
 Focus on providing the world class business solutions.
 Focus on increasing the sustainable profit.

Table No. 1: Shareholding Composition

S.N Ownership Percent


1 Government of Nepal 38.60
2 General Public 61.40
Total 100

(Source: http://www.nepalbank.com.np/bankoverview/introduction.php)
Table No. 2: NBL Network Overview
Region wise branches No of Branches
Kathmandu Region 28
Biratnagar Region 28
Birgunj Region 19
Pokhara Region 21
Nepalgunj Region 16
Total no of Branches* 118
(Source: http://www.nepalbank.com.np/bankoverview/introduction.php)

Table No. 3: Permanent Staff

S.No. Level Post Male Female Total % of Female


1 Chief Executive Officer 0
2 General Manager 2 0 2
3 11 Deputy General Manager 5 0 5
4 10 Chief Manager 9 1 10 10
5 9 Senior Manager 17 0 10 0
6 8 Manager 51 6 57 11
7 7 Deputy Manager 127 13 140 9
8 6 Assistant Manager 308 79 387 20
9 5 Senior Assistant 851 326 1177 28
10 4 Assistant 190 65 255 25
11 3 Junior Assistant 6 0 6 0
12 Driver 10 0 10 0
13 Peon 181 30 211 14
14 Security Guard 37 0 37 0
15 Sweeper 38 26 64 41
Total 1832 546 2378 23

(Source:http://www.nepalbank.com.np/bankoverview/introduction.php)

Table No. 4: Contract - Based Staff

S.No. Level Post Male Female Total % of Female


1 DW 45 34 79 43.04
2 Security Guard 356 2 358 0.56
3 Other (Contract) 36 12 48 25.00
Total 437 48 485 9.90
(Source: http://www.nepalbank.com.np/bankoverview/introduction.php)

1.4 SWOT Analysis for Nepal Bank Limited


Strength

1. Nepal Bank Limited has vast network system in the nation thus helping customer to transact
through bank from place to place.
2. Nepal Bank Limited is well known for providing highly personalized service like ATM, ebanking,
credit card, safe deposit locker etc. It has also introduced a number of new product and services.
3. Human resources of Nepal Bank Limited are well trained and are dedicated toward its bank. It is
providing high remuneration and other benefit to its staff.
4.Nepal Bank Limited is equipped with latest technology; computer does most of the banking
services. Thus the services of the bank are prompt and accurate.

Weakness

1. The increase of the branches increases the operation cost, administration expenses, salary etc.
2. The political instability is another weakness that the bank is suffering.
3. Too much dependency in computer is not considered to be reliable.
4. Staffs are unwilling to give even required information. They don’t want to cooperate with the
ones who are not its real customer.

Opportunity

1. Many people deposit their funds in this bank due to its skill in attracting people by adapting
and attracting policies like interest rate, prompt services, ATM, credit card services etc.
2.Staff can perform their work more efficiently with the computers. The environment of the bank
is sound which enhance its better performance.
3.People get employment opportunities since it has the highest number of branches in the
country.
4.The policies of NRB rules & regulation always give confidence to the banking sectors to uplift
the economy of the nation.

Threats

1. Competitors are increasing.


2. The economic condition of the country is very poor.
3. Excess government pressure may create irregular banking transaction, which leads to bad
reputation of the bank.
4. The bank should be discouraged to open account for the individuals or firm having bad name as
well as illegal names which effects to society. It may be threat, which can ruin the bank.

Chapter-II
Project Design and Study

2.1 Introduction to the study


Bachelor in Business Administration program aims to prepare knowledgeable, skillful, confident,
and self-motivated professionals who will be able to perform competitively in the organization of
the modern age. Putting aside the traditional and conventional methods of teaching- learning,
BBA aims at producing bachelor level graduates of international standards in management
education with applied and pragmatic philosophies of acquiring knowledge. So, to acquire
practical knowledge we were given to write a report by the university in any topic.
A project report is a record of any sort of project, whether it is a school project, business project,
or research project. Most commonly, project reports are written to record the beginning, middle
and end of specific project events, such as business initiatives or school experiments. A project
report can be written about almost any topic, in fields such as management, science, marketing,
education, or engineering. However, to fulfill the standardized and formal requirements of
teachers or executives, professional project reports must have certain characteristics; these will
include specific sections of the project report, which are usually as follows:
I. Introduction
II. Table of contents
III. Main Sections
IV. Conclusions
References

Details are the heart of soul of any effective project report; dates, times, facts, and figures must
be used to build credibility. Whether a project report is written about a new housing
development, or an ad campaign's rollout, it should be based on quantifiable information that is
easy to understand. The best project reports will be written according to a formal template, and
they will be completely honest reckonings of all of the good and bad things that transpired during
the central event's timeline. From the Introduction to the Conclusion, the role of the project
report is to provide a factual record of the event that may later be used to make decisions about
planning similar events or initiatives in the future; this is one reason why a project report can be
a valuable tool in the business world.
Selection of an organization for writing report is no doubt a critical job and requires much of
effort from the side of student. With much analysis and understanding of opportunities given to
student to learn and grow within reporting period I have chosen the oldest and most experienced
bank which has been providing very good learning atmosphere for student i.e. Nepal Bank
Limited- the pioneer bank of Nepal and the topic my study is "Customer service and loan
activities of Nepal Bank Limited-A situation analysis"

2.2 Statement of problem


Being based on the background stated above, the present study has the following problem:
I. What is the present quality service level of NBL?
II. How is the bank carrying out its loan activities?

2.3 Objective of study


This study generally focuses on customer service activities and loan activities of Nepal Bank
Limited. However the specific objectives of this study are as follows:
I. To analyze whether the bank is providing quality service or not.
II. To find out how the bank is carrying out its loan activities.
III. To build a theoretical knowledge on customer service, loan activities and also to obtain
knowledge about the institution?

2.4 Research Methodology


2.4.1 Research Design
As the nature of the data required for the study will be both nature i.e. qualitative as well as
quantitative nature .So, the study has been designed both qualitatively as well as quantitatively.
Similarly as the objective of the study is to have theoretical knowledge on customer service and
loan activities. So mainly the study has been designed descriptically, non parametrically and
somehow quantitatively.

2.4.2 Population and Sample


There are at present about 31 commercial banks in Nepal. As this study is case study centered on
NBL. So, Nepal Bank Limited, Bazaar Adda is chosen for the study among 118 branches all
around Nepal. And no any population and sample is used. And it is purely based on Nepal Bank
Limited, Bazaar Adda Branch.

2.4.3 Sources of data


The data required for the study are both primary and secondary data. Primary data are obtained
from primary sources and secondary data are obtained from secondary sources.
 Primary data:-The data collected for the first time are said to be Primary data. Such data provide
accurate information. These types of data are obtained from different departments of the bank.
o Direct personal observations and questionnaire with the customer.
o Informal meeting with Bank’s member of NBL Biratnagar, Bazaar adda Branch.
o Informal interviews with the customer of Nepal Bank Limited.

 Secondary Data:-The primary data for one person can be the secondary data for some others. So,
data which are originally collected but obtained from either published sources or unpublished
sources are secondary data. These data are obtained from books and internet.
o Official websites of NBL and other different websites related to the topic.
o Books, annual progress report, official publication online and offline, newspaper, brochures.

2.4.4 Data collection technique


The data collection technique used for the study is through field visits which mean visiting
different department of the bank, through the use of internet, by studying brochures of bank,
newspaper, annual report etc.

2.4.5 Data analysis tool


Analysis of the study is based on content and is analyzed descriptically and some how
statistically by making tables.

2.5 Limitation of the study


The eight weeks period of research helped me to maximize my knowledge about the banking
procedure with some practical aspects. However there had been some limitation as identified
below:
1. The time span for the study is short to conduct detailed study of organization.
2. Core information and some vital data were not shared due to privacy issue.
3. Huge amount of work load in the staff created obstacle for me to gain knowledge from other
staff.
4. The study may not depict overall banking performance.
5. The reliability of data depends upon the information provided by concerned organization.
6. Page limitation

Chapter-III
Data Analysis and Interpretation
3.1 Presentation of data
This chapter is the main volume of the field work report. This is a chapter under which collected
data and information are presented and analyzed with the help of tables and figures.

3.2 Services provided by Nepal Bank Limited


This subsection describes the various services provided by Nepal Bank Limited, Bazaar adda
branch. They can be mentioned as Customer services, loan activities and so on. They are
elaborated into following paragraph:

3.2.1 Customer Services


A) Deposit Services
i) Current Account
Nepal Bank's current account saves you the hassle of carrying around cash every month. The
account is non-interest bearing and it comes with a cheque-book - you just need to write a
cheque whenever and wherever it's convenient

Statement of transaction
A six monthly statement will be sent so that you can see your transaction movements. You can
also request that the Bank provides you with a statement every day, every week, every 15 days or
every month.
Your Account and Cheque book
A current account can be opened with a minimum amount decided by the specific branch.
Deposit at your home branch. Once your account is opened you will receive your cheque-book
containing 10 personalized cheques. To replace your cheque book once you run out of cheques
just present the replacement form at the back of your current cheque book at your home branch
and we will arrange a new one for you.
Account Opening
Personal Account:
a. Personal Identification (Citizenship Certificate and 2 Copies of Photograph)
b. Nominee Declaration
 Proprietorship Account:
a. Declaration of sole proprietorship
b. Copy of Registration Certificate

 Partnership Account
a. Letter of Partnership duly signed by all partners
b. Copy of the Partnership Agreement
c. Certified copy of Partnership Registration

 Account of corporate bodies, copy of:


a. Memorandum and Article of Association of the Company
b. Resolution of Board of Directors to open and operate an account
c. List of directors duly signed by respective directors with home address and phone numbers
d. Certificate of commence of commencement of business
 Accounts of clubs, societies and associates (all documents to be duly certified by the
charity):
a. List of Office Bearers
b. Copy of by-laws
c. Copy of Resolution to pen and operate the account
d. Name and signature of persons authorized to operate the account
e. Copy of the registration certificate

ii) Saving Account


With Nepal Bank's saving account your interest is calculated on daily balance and credited to
your account quarterly. It is your passport to other Nepal Bank's products and services designed
to manage your daily life easier and more convenient. Initial deposit depends upon nature of
saving account. Any balance below minimum amount will be liable to incidental charges as fixed
by the bank from time to time.
Transaction account for thumb print account
When you open your account you will get a passbook to keep track of your savings and
transactions. You have to update your passbook by our bank staff
at our branch.
Types of saving account
 Karmachari Sahuliyat Saving Account:
a. Can be operated on Zero Balance
b. 2% interest on daily balance
c. Free Services like: ATM, ABB, SMS, Internet Banking
d. Automatic conversion to Karmachari Nibritabharan (Employee Retirement) Account once the
employee is retired from service.
e. Account transfer facility if the employee is transfered to another location and no account closing
charge.

 Karmachari Nibritabharan (Employee Retirement) Saving Account:


a. Requirement of Pension Passport to open account.
b. Can be operated on Zero Balance.
c. 5% interest on daily balance.
d. Cash or Transfere facility to pension amount.
e. Free Services like: ATM, ABBS, SMS, and Internet Banking.
f. Account transfer facility.
 NBL Bishes Bachat Khata:
a. Minimum balance is 50,000 only.
b. 5% interest on daily balance.
c. Free Services like: ATM, ABBS, SMS, and Internet Banking.
 Nepa Laxmi Bishes Bachat Khata:
a. Minimum balance is 100,000 only.
b. 7% interest on daily balance.
c. Free Services like: ATM, ABBS, SMS, and Internet Banking.
d. Insurance facility up to 100,000.
Account Opening
Personal Account:
a. Personal Identification (Citizenship Certificate and 2 Copies of Photograph)
b. Nominee Declaration
 Proprietorship Account:
a. Declaration of sole proprietorship
b. Copy of Registration Certificate

 Partnership Account
a. Letter of Partnership duly signed by all partners
b. Copy of the Partnership Agreement
c. Certified copy of Partnership Registration

iii) Fixed Account


Features
 Fixed Deposit can be opened with a minimum balance of NRs.
 Payable upon maturity
 Penal interest is levied on withdrawal of FD prior to maturity.
 Interest is payable Quarterly.
 Tax is deducted at source from the interest on saving deposit as per the Income Tax Act,
2058(2001).
 Nomination facility is available.
 Strict confidentiality is assured.

Tenure of FD
 3 months
 6 months
 9 months
 1 year
 2 years
 Above 2 years
Prevailing Interest Rate (Per Annum): 6 months
 3 months
 6 months
 9 months
 1 year
 2 year
 Above 2 year

Eligibility:
 Individuals.
 Minors.
 Trusts.
 Associations.
 Clubs.
 Societies.
Documents:
The copy of the following certified documents has to be submitted while opening
Personal Account:
 Identification Card in the form of Citizenship
 Certificate/Passport/Other ID/PAN Card

Minors:
Guardianship to be verified with related documents
Nominees form:
 Photograph of the nominee
 Signature of the nominee
Clubs/Societies and Association:
 Copy of Registration Certificate
 Copy of Bye-Laws
 Copy of Resolution to Open and Operate the account
 List of members

Corporate body:
 Certificate of Incorporation
 Memorandum and Article of Association of the Company
 Resolution of Board of Directors to Open and Operate the account
 Sample of Company Seal
 Name of the Directors of the Board

Partnership Account:
 Certificate of Partnership Registration
 Copy of Partnership deed, if any
Proprietorship Account:
 Registration Certificate
 Identification of Proprietors

Other Services
A) NBL WEB REMIT
NBL Remit - an online/internet based Remittance Service for the purpose of facilitating to
transfer the earnings of Nepalese and Nepalese Expatriates in foreign countries with the help of
available NBL agents. Along with inward remittance from foreign countries, NBL-remit is
powered by domestic money transfer facility through all of the bank's branches throughout the
country with very minimal charge.
NBL Remit service is based on online data transfer system and it is instant enough, efficient and
very much secure. For the authentication purpose, SECRET KEY is generated on the system,
which is required by the customer while being paid. Remittance facility is available both for
instant cash payment and credit to the beneficiary personal account. Now the account transfer
facility can be availed within branches.NBL Remit Service is also operated by agents of Nepal
Bank who exist in different locations of National and International Topography. At this time,
NBL has started this service from Arabian and Parsian Gulf mainly from QATAR where NBL
has an established drawing arrangement with two major exchange houses, which are:
 Eastern Exchange Est. Doha, Qatar
 Arabian Exchange Co. W.L.L.
Procedures
To send money
 Go to the nearest NBL remitting agent.
 Ask for 'Send Request Form'
 Fill the personal information and the beneficiary information as requested.
 In case of account transfer please state the name of bank, its branch and the account number of
beneficiary in the specified location. The account details must be accurate else the fund shall be
pending.
 Fill the amount for remittance.
 If cash transfer you are provided the secrete key else not.
 Convey the secrete key to the beneficiary securely and guide him/her to receive the remitted
amount from specific branch/agent of NBl remit product.
To receive money?
 In case of account transfer the beneficiary need not to contact the branch of NBL. As the
remitted amount is deposited into the beneficiary account in the requested branch, the beneficiary
can directly check the status of the amount by enquiring at the branch.
 In case of cash transfer, the beneficiary has to visit the specified branch.
 He/She has to ask for Receive Request Form.
 He/She has to fill the information as required.
 He/She has to fill the secrete key which has been conveyed by the remitter.
 Give the filled form to the NBL agent.
 The agent shall process the information and verify the transaction.
 If the transaction is valid, the beneficiary shall be paid the remitted amount.

CONTACT ADDRESS
Table No. 5: Foreign Agents

S.N Name Address City Phone Email


1 Alfardan P O Box Abu 0097126223222 alfex@emirates.net.ae
Exchange Co 498 Dabhi,
UAE
2 Eastern P O Box Doha, 009744412655 HO@easternexchange.com.qa
Exchange 454 Qatar
Establishment
3 Arabian P O Doha, 009744438200 arabianex@qatar.net.qa
Exchange Co BOX Qatar
3535
(Source: http://www.nepalbank.com.np/remittance.php)

B) NBL REMITTANCE PRODUCTS


REMITTANCE PRODUCT OF NEPAL BANK LIMITED
The oldest, biggest and most trusted bank in Nepal, Nepal Bank Limited has largest network of
branches in the country and very big network of correspondent and agency relationship all over
the world. The business of remittance fund transfer into Nepal, from Nepal and within Nepal
through this bank is most reliable, timely at the minimum of charges.
A) Inward Remittance (receiving of money in Nepal)

1. SWIFT: Through this system the remitter anywhere in the world can remit or transfer the
fund in Nepal very easily, securely and quickly. The remitter can transfer the money in
Nepal through Nepal Bank Limited just by mentioning this bank's SWIFT identity, that
is, NEBLNPKA and beneficiary details. The widest network of branches of this bank can
take care of your need very efficiently and at the minimum of cost
2. TT and Mail transfer: we have arrangement made with major banks in financial centers
as well as with banks in neighboring counties to receive funds through tested
telegraphically transferred funds. We also honor the mail transfer from major banks.
3. Drafts: We have system of honoring drafts drawn on us by many banks denominated in
major currencies such as USD, Euro, GBP.
4. Remittance from Gulf Countries: We have maintained special relationship with banks,
financial institution and exchange houses in Gulf countries where majority of Nepali
workers are working so that their hard earned money can be received by family members
in Nepal.
5. Western Union Money Transfer Service: Due to the arrangement made by our bank
with this fund transferring institution through Hulas Remittance, the beneficiary in Nepal
can receive money very quickly and the beneficiary does not need any account to receive
the fund.
6. Remittance from India: We have arrangement made with many banks in India by which
remitter in India can remit the fund through SWIFT, TT, Mail Transfer, Drafts etc.

All remittance into Nepal through Nepal Bank Limited is quick, dependable and cheap because
the beneficiary anywhere in the Nepal can receive the money without needing services of other
banks because Nepal Bank Ltd has largest network of branches in Nepal in important places.

B) Outward Remittance:
1. SWIFT: Through this System we can cater the need of customer to remit the fund anywhere in
the world, denominated in major currencies.
2. Draft: We have draft drawing arrangement made with our correspondent banks in many
countries of the world where Nepalese individual and institution need to transfer fund due to any
reason.
3. TT and Mail Transfer: Because of our international banking relationship we can handle the
outward remittance business though this method.
4. Remittance to India: We can cater the need of business community and individuals to transfer
the fund denominated in Indian Rupee In India very efficiently and at the minimum of
commission compared to any bank in the Nepal.
Facilities
We offer you good remittance facilities to send money to Nepal for your loved ones. Depending
on your location and the speed with which you want the money transferred you can take our
service. You can do Telegraphic Transfer for remittance of money through our correspondent
Banks.
Now, we offer you very fast and reliable money transfer facilities through SWIFT.

Table No.6: Essential details for SWIFT remittance to Nepal (from any country / bank)
Nepal Bank's SWIFT Code for NEBLNPKA
remittance to Nepal
Account with Institutions: Please give full detail of Bank, Branch and its complete postal
address, where the beneficiary is maintaining account
Beneficiary Customer Please give account number, name, address and phone / fax
number (if available) of the beneficiary
(Source: http://www.nepalbank.com.np/remittance2.php)
C) Safe Deposit Vaults
"The Best Protection For your most Important Valuables"
Your valuables are safely stored in another location other than your home or business...the
SAFEST PROTECTION from fire and theft. Nepal Bank Limited offer you safe deposit vault to
store items that would cause you to say "if I lose this, I'm in deep trouble." This means important
papers like insurance policies, family records such as birth certificates, deeds, titles, mortgages,
leases, contracts, bonds, certificates of deposit.

Other items include jewels, medals, rare stamps and negatives for important photos in case of
fire or theft.

Table No.7: Safe Deposit Vault Rates

Type High Wide Deep Rent (Per Year)


A 115 m.m 150 m.m 517 m.m 1800/-
B 148 m.m 184 m.m 517 m.m 2100/-
C 115 m.m 330 m.m 517 m.m 2400/-
D 178 m.m 238 m.m 517 m.m 2800/-
E 145 m.m 401 m.m 517 m.m 2800/-
F 266 m.m 330 m.m 517 m.m 4000/-
G 178 m.m 506 m.m 517 m.m 4500/-
H 314 m.m 401 m.m 517 m.m 5400/-
I 394 m.m 506 m.m 517 m.m 6200/-
(Source: http://www.nepalbank.com.np/deposit.php)

Branches with Locker Facility


 Kathmandu Banking Office
 Biratnagar City Office
 Kantipath Branch
 Adarsha Nagar, Birgunj
 Nepalgunj City Office
 City Office Birgunj
 City Office Pokhara
 Prithivichowk Branch, Pokhara
 Bhadrapur

D) SMS Banking services


Nepal Bank Limited presents SMS (Short Message Service) Banking service to it's valuable
Customers.
We are providing the service from our branches (selected). In SMS Banking service, you can get
your Account information easily by sending SMS to 1994. NBL SMS banking service having the
following feature

A. Secure transaction with PIN code


B. Instant Balance Information
C. Last three transactions with current Balance
D. PIN code changing facility
E. Latest Exchange rate of Foreign currency
F. Account Stop Facility
G. Cheque Book print request
H. Account statement print request

NBL SMS banking service also provides the extra services to it's valuable customer's such as
New Product information of bank, Loan alert messages and cash withdrawal notification on
customer's request. To get the SMS banking facility , please contact your nearest Branch of NBL
for details.
E) ANY BRANCH BANKING SERVICES (ABBS)
Nepal bank is proud to announce that all together 118 branches are enabled for ABB service.
This service is free of charge to our valuable customer. In this banking service, our customer
having account with NBL can access their account from any online NBL'S branch. However the
service is provided in two ways: Normal ABB SERVICE and special ABB SERVICE.
Normal ABB Service allows our customer to deposit, withdraw and remit money from the
branches which are online. Where as special ABB Service allows withdrawl facilityfor deposit in
such accounts requires processing through remit.

EXTRA FEATURES OF NBL NORMAL ABBS


 ABB service is available even in evening counter and extended banking. This facility enables
the customers to withdraw and deposit in their account of closed branch from the branch having
evening counter and extended banking facility.
 ABB service is also available in government accounts.
 Service is available around the country.
 Limitless cash transfer

F) E-BANKING
General Information
Now NBL is just a click away. Wherever you go, you can access your account in Nepal Bank
Limited on your desktop. We are very happy to announce NBL Internet Banking with wide
coverage of services in order to facilitate our valuable customers. Balance check, cheque stop,
cheque issue, statement print etc our some of the facilities under this service.
Procedures to create NBL Internet Banking Account:
• Download NBL Internet Form:
• Fill up the form completely
• Submit the form into your account holding NBL branch.
When we receive the form, your account will be created and Internet Banking User ID and
Password will be mailed to the provided E-mail address with appropriate guidelines.

G) NBL DEBIT CARD


Nepal Bank has introduced its ever waited NBL Debit Card by joining the hands with Smart
Choice Technologies (SCT), the first company in Nepal to provide networked ATMs.
NBL Debit Card of Nepal Bank allows its customers to access a vast network of ATMs located
in various points in Kathmandu and other major cities within Nepal displaying the SCT logo on
it.
NBL Debit Card is also accepted in INDIA via ATM's of Punjab National Bank.
The NBL Debit Card allows the cardholder to withdraw cash, inquire account balances and to
pay for purchases through POS transactions.
NBL ATM outlets support cards from the banks associated with SCT as well as Visa and Master
Cards.

Table No.8 Interest Rate

Deposits Annual Interest Rate


S.No. Deposit Type Duration Rate** Previous
Rate
1 Saving Deposit (Normal 2.00% 2.25%
Saving/Pension saving)
(interest calculated on daily
closing balance)

2. NBL Diamond Saving 3.00% 3.25%


3. Women Special Saving 3.00% 3.25%

4. Yuva Bachat Khata 3.00% 3.25%


5. Senior Citizens Special 3.00% 3.25%
Saving
6. Professional's Saving 3.25% 3.50%
7. NBL Special Saving @ 3.25% 3.50%
8. Staff Saving / Staff Pension 3.25% 3.50%
Saving
FCY Saving Deposit
1. USD 0.70% 0.80%
2. EUR 0.50% 0.50%
3. GBP 0.50% 0.50%
Fixed Deposit
3 Month 3.00% 3.50%
6 Month 3.75% 4.00%
1 Year 4.75% 5.00%
2 year and 5.00% 5.50%
above up to
5 year
FCY Fixed Deposit
1. USD Negotiable
Akschhaya Kosh
Other Institutions 5.00%
NBL Trust Fund 6.00%
Bulk Deposit (Fixed)
Rs 1 Crore and above for 1
year
Individual 4.75%
Institutional 4.50%
Call Deposits
Normal Call Deposits 1.75% 2.00%
NBL Special Call Deposits (Condition Apply)
Minimum Bal Rs 25 lakhs 1.75% 2.00%
Minimum Bal Rs 1 crore 2.00% 2.25%
Minimum Bal Rs 5 crores 2.25%
Minimum Bal Rs 10 crores 2.50%
Minimum Bal Rs 15 crores 2.50%

@ Minimum Balance Rs 40,000 Lending Rates


Lending Rates Rate** Previous
Rate
Gold and Silver Loan 13.00% 13.50%
Export Finance
Export Finance in Domestic 6.50% to 7.75% 7.00% to
Currency 8.00%
Post Shipment & Pre-Shipment (in 4.00% to 6.00% 5.00% to
USD) 7.00%
Trust Receipt 8.00% to 9.00% 8.50% to
9.50%
Term Loan
Industrial/Commercial 9.50% to 11.00% 10.00% to
11.50%
Housing Plan 11.00% to 12.00% 12.00% to
14.00%
Real State 12.00% 13.00%
Short Term Working Capital
Hypothecation 9.75% to 11.00% 10.00% to
11.50%
Overdraft 9.75% to 11.00% 10.00% to
11.50%
Pledge Loan 9.75% to 11.00% 10.00% to
11.50%
Demand 9.00% to 10.00% 9.00% to
10.50%
Loan against govt. Coupon rate + 2 or 8.00 9.00% to
securities/Structured Demand whichever is higher 10.00%
Deprived Sector Loan 7.00% to 8.00% 9.00%
NBL Agriculture Loan 10.00% 10.50%
Loan against First Class Bank 9.00% 10.00% to
Guarantee 10.50%
Loan against FD Receipt of NBL Coupon rate + 2 Coupon or +
2%
Hire Purchase Loan 10.00% to 11.00% 11.00% to
12.00%
Consumer Loan
Auto 9.50% - 10.50% 10.00% -
11.00%
NepaLaxmi Auto Loan 8.50%
Home Loan 9.50% - 10.50% 10.00% -
11.00%
NepaLaxmi Home Loan 7.90%
Personal Overdraft 12.00% - 12.50% 12.00% -
13.25%
Personal Term Loan 12.00% - 12.75% 12.25% -
13.00%
Education Loan 10.00% - 10.50% 10.00% -
11.00%
Margin Lending 10.50% - 11.50% 11.00% -
12.00%
(Source:http://www.nepalbank.com.np/interest/index.php)
3.2.2 Loan activities of Nepal Bank Limited
Consumer Loans
A) NBL Personal Loans

 Provided to fulfill the personal needs of an individual


 Provided against the land and building

Types

 Personal Term Loan


 Personal Overdraft Loan
.Eligibility:

 Borrower must have regular and stable source of income


 Borrower must be Nepalese citizen
 The collateral must be accessible by at least eight feet wide road
 Borrower must have experience of at least 3 years
 Borrower must be 21 years of age and should not exceed 60 at
the time of maturity of loan.
 The retirement age must be more than the tenure of the loan.

Table No. 9: Parameters for personal loan

Criteria Parameter
NBL Personal Term Loan
Loan amount Minimum: Rs. 500,000 Maximum: Rs.
5,000,000
Loan portion Up to 60% of value estimated by valuator
acceptable to the bank
Tenure Minimum: 2 years Maximum: 15 years
First payment From the end of the subsequent month of initial
date drawn down.
Prepayment No prepayment fee will be charged if paid after
charge maturity of 1/3 of the loan period. 2%
prepayment charge will be levied if
prepayment is made within 1/3 of loan period.
NBL Personal Overdraft Loan
Loan amount Minimum: Rs. 500,000 Maximum: Rs.
5,000,000
Loan portion Up to 50% of value estimated by valuator
acceptable to the bank
Tenure 1 year; can be renewed subject to periodic
review
Min. Rs. 500,000
utilization
limit
(Source: http://www.nepalbank.com.np/loan/personal.php)

Processing fee
1% of the financed amount at the time of submission of loan
application. The fee shall be refunded if the loan is not approved.

Table No.10: Documents for personal loan

Documents Salaried Self


employed

Identification documents

2 Passport size photo of applicant and one passport size photo of Required Required
guarantor

Photocopy of citizenship certificate of applicant and guarantor Required Required


Photocopy of Tax/PAN/VAT certificate and registration certificate Not Required
required

Proof of Income related documents

Original Salary Certificate not more than 10 days old Required Not required

Photocopy of contract agreement between applicant and his/her Required Required


employer

Photocopy of Rent Contract, if any Required Required

Original/photocopy of Bank Statement (Past 6 months) Optional Optional

Photocopy of audited/management prepared financial statements for Not Required


past 3 years required

Land and/or building related documents

Original letter stating coparcener from local authority (Ward) Required Required

Original Blue Print of the land Required Required

Original copy of restraint letter from Land Revenue Office Required Required

Original construction completion certificate from Municipality/VDC Required Required


in case of purchasing already built house

Original/photocopy of detailed break down of cost estimation from the Required Required
applicant’s consultant

Original land ownership certificate Required Required

Original latest land revenue receipt Required Required

Photocopy of blue print of building approved from Municipality/VDC Required Required

Photocopy of land Transfer Deed Required Required

Original four Boundary Disclosure from ward office/municipality Required Required

Legal/Other documents

Debit authority note Required Required


Photocopy of Memorandum and Articles of Association/partnership Not Optional
deed required

Credit information of borrowers and guarantors from CIC and branch Required Required

Cash deposit voucher of processing fee Required Required

Current account of the borrower Required Required

Credit Facility letter accepted by the borrower Required Required

Promissory Note Required Required

Original copy of loan deed Required Required

Insurance of the building Required Required

Original copy of mortgage deed Required Required

(Source: http://www.nepalbank.com.np/loan/personal.php)

B) NBL Auto Loans


This loan is provided for:
 Purchase of new vehicles
 Purchase of old / used vehicles (For Private use only)
Eligibility:
The criterion for taking auto-loans is as follows.
 The loan is provided to Nepalese Citizens only.
 This loan shall be provided other than insider.
 The loan is provided to any salaried and self-employed individuals and companies having
regular and stable source of income.
 The company / firm should be registered to the government authority.
 All borrowers and guarantors should not be enlisted in “Black List” of NRB.
 In case of individuals, the borrower must be at least 21years and should not exceed 60 years at
the time of maturity. The retirement age must be more than the tenure of the loan.
 3 years work experience is needed for salaried individuals.
 The company / firm should be in operation since last three years.
 The person taking loan for the company / firm is to be authorized by the company / firm as
appropriate.

Table No.11: Parameters for Auto loan


Maximum Loan Rs. 25,00,000
Amount
Minimum Loan Rs. 2,00,000
Amount
Loan portion Private (Personal Use) Private (Business Use) Private (Used)
Up to 80% of Up to 80% of Up to 70% of
quotation price quotation price valuation price
Tenure Minimum 2 Years - Maximum 7 Years
(Source http://www.nepalbank.com.np/loan/autoloan.php)

Processing Fee:
1% of the financed amount shall be charged upfront at the time of submission of loan application
with necessary documents. The fee shall be refunded if the loan is not approved.
Prepayment Fee:
2% prepayment charge on the prepaid amount if prepayment is made within 1/3 of loan period.
However, no prepayment fee will be charged if paid after maturity of 1/3 of the loan period.

Table No. 12: Documents for Auto loan

Documents required:

Y = Required; N = Not Required; O = Optional

Self
Documents Salaried Company/Firm
Employed
Identification

2 Passport size photo of applicant Y Y Y

Photocopy of Citizenship Certificate/ Passport


Y Y Y
(Applicant & guarantor)

Photocopy of valid Driving License O O O

Photocopy of Registration Certificate N N Y

Photocopy of Operating Approval O O O

Photocopy of Tax/PAN/VAT certificate N N Y

Proof of Income

Original Salary Certificate not more than 10 days old N Y N

Photocopy of Contract agreement N O O

Photocopy of Rent Contract Y Y N

Original Bank Statement (Past 3 months) O O O

Photocopy of Financial Statements (Past 3 years) Y N Y

Others

Original Quotation of vehicle and from the body builder


if body needs to be built up. Fax copy of quotation
Y Y Y
mentioning applicant’s name received from dealer is
also acceptable.

Photocopy of Land ownership certificate Y Y N

Photocopy of Memorandum and Articles of Association O N Y

For used vehicles only

Original Invoice of Used car showroom / certified copy Y Y Y

Valuation report of vehicles from valuators Y Y Y

(Source http://www.nepalbank.com.np/loan/autoloan.php)
C) NBL Home Loans

This loan is provided for


 Purchase a plot of Land/Building.

 Construction, renovation, modification, extension of existing


building,

Eligibility:
The criterion for taking home-loans is as follows.
 The loan is provided to any individuals who have regular and stable source of income. This loan
can be given to any salaried and self-employed individuals.

 The loan will be provided to Nepalese Citizens only.

 Any house/land, which does not lie in municipal area, will not be financed. However, urban
VDC can also be considered with proper justificantion.

 The land and/or house to be constructed / purchased / renovated / extended / modified should
have motorable road (8 feet wide in minimum) access. Such road should be clearly seen in the
blue print or be verified by concerned authority (for e.g. ward office).

 All borrowers and guarantor should not be enlisted in “Black List” of Nepal Rastra Bank.

 3 years work experience is needed for salaried and self-employed individuals.

 In case of business income, financial statement of the company should be audited.

 The borrower must be at least 21years and should not exceed 60 years at the time of maturity.
The retirement age must be more than the tenure of the loan.

Table No.13: Parameters for Home loan


Maximum Rs. 50,00,000
Loan
Amount
Purchase of Land / Building Renovation, Construction of
modification, building on already
extension of owned/Purchased land
Building
Minimum Rs. 4,00,000 Rs. 2,00,000 Rs. 4,00,000
Loan
Amount
Loan Up to 60% of Transfer deed Up to 70% of cost Up to 70% of cost of
portion (Rajinama) price or value of construction construction estimated
estimated by valuator approved by estimated by by valuator approved
the bank whichever is lower For valuator approved by the bank
land: Up to 60% of transfer deed by the bank
(Rajinama) price or value
estimated by valuator approved by
the bank whichever is lower.

Tenure Minimum 2 years - Maximum 20 years


(http://www.nepalbank.com.np/loan/homeloan.php)

Processing Fee:
1% of the financed amount shall be charged upfront at the time of submission of loan application
with necessary documents. The fee shall be refunded if the loan is not approved.
Prepayment Fee:
2% prepayment charge on the prepaid amount if prepayment is made within 1/3 of loan period.
However, no prepayment fee will be charged if paid after maturity of 1/3 of the loan period.
Table.No14: Documents for Home loan

Documents required:

Y = Required; N = Not Required; O = Optional

Self
Documents Salaried
Employed

Identification
2 Passport size photo of applicant / co-applicant Y Y

Photocopy of Citizenship Certificate / Passport (Applicant & guarantor) Y Y

Photocopy of Tax/PAN/VAT certificate along with registration certificate O O

Proof of Income

Original Salary Certificate N Y

Photocopy of Tax/PAN/VAT certificate N N

Proof of Income

Original Salary Certificate not more than 10 days old N Y

Photocopy of Contract agreement N O

Photocopy of Rent Contract O O

Original Bank Statement (Past 3 months) O O

Photocopy of Financial Statements (Past 3 years) Y N

Others

Original Quotation of vehicle and from the body builder if body needs to
be built up. Fax copy of quotation mentioning applicant’s name received Y Y
from dealer is also acceptable.

Photocopy of Pension book/ ID stating name of the pensioner, amount


and validity period

Photocopy of Contract agreement between applicant and his/her


N O
employer

Photocopy of Rent Contract if any Y Y

Original Bank Statement (Past 6 months) Y Y

Photocopy of Audited Financial Statements (Past 3 years) N N

Others

Original letter stating coheir of seller from local authority Y Y


Original quotation of housing company Y Y

Photocopy of Blue Print of the land Y Y

Photocopy of Certificate of construction from Municipality/VDC in case


Y Y
of purchasing already built house

Original Private Sale Agreement in case of Private Sales Y Y

Photocopy of Memorandum and Articles of Association Y N

Photocopy of Detailed break down of cost estimation from the


Y Y
applicant’s consultant

Photocopy of Land ownership certificate Y Y

Photocopy of Latest land revenue receipt Y Y

Photocopy of Blue Print of building approved from Municipality/VDC Y Y

Photocopy of Land Transfer Deed Y Y

Original Four Boundary Disclosure Y Y

Approval letter of municipality for construction of house Y Y

Approval letter of municipality for extension and renovation/modification


Y Y
(if needed) of house

(http://www.nepalbank.com.np/loan/homeloan.php)

3.3 Analysis and Interpretation


The purpose of the data analysis and interpretation phase is to transform the data collected into
credible evidence about the development of the intervention and its performance.
Customer Service department is a primary level department that generally deals with customers
directly and regularly. This department is basically directed towards providing the surface level
assistance to the customers i.e., to provide general information about banking system, product
and services provided by the bank. The department is responsible for providing the basic
materials like deposit vouchers, cheque book, bank statement, balance certificate, cards.
Customer Service Department is the face of bank. Customer Service Department is the place
where customer initially interacts with the bank. Customer service expands client focus to
include everything that happens within and around the bank, from the way staff greet clients, to
the atmosphere in the waiting room, to the matter in which clients complains are handled.

The very first thing that the people seek in the organization is the prompt service and the person
at the customer service desk properly handles them. The people at the customer service desk
must be ready to sort out every problem at any moment. The customer service division can
answer questions, resolve problems, and help you establish new accounts and services, and
providing information on products, forms, and publications

The increasing competition in the banking sectors demands more service proliferation, which
would satisfy the demand of the customers. Banks and other financial institution are introducing
more and more innovative services such as ATM, debit card, internet banking, locker services
and various other services for their customers to serve them more efficiently and effectively.
Customers seek in organization the prompt service and the person at the customer service desk
properly handled them. The people at the customer service desk must be ready to sort out every
problem at any moment. A customer is the most important visitor on the business premises and
customer is given help in the field of

1. Account Opening

2. Statement Printing

3. Scanning and Photocopy Of Documents

4. Handling Queries.

5. ATM Card Issue

6. Cheque Book Issue

7. Allotment of Account Number

8. Complain Handling

9. Phone Communication Handling


10. Signature Change

11. Receiving the Visitors

12. Updating the Records

13. Dealing with different customer problems

14. Instructing to fill up form for different reasons

15. Filing the Document


16. ABBS
17. SMS banking
I) Account opening

Any interested customer who wish to open an account in ABC Bank is inquired about the type of
account he/she wants open, then customer is provided with account opening form and are
requested to fill up account opening form and attached all required documents. After the form is
filled up by customer, CUSTOMER SERVICE DEPARTMENT staff verifies the form and pass
on to the CUSTOMER SERVICE DEPARTMENT head for final verification. After the approval
from CUSTOMER SERVICE DEPARTMENT head, CUSTOMER SERVICE DEPARTMENT
staff opens an account in bank on the name of respective customer. Then the customer is
provided with an account number and requested to deposit at least minimum amount according
to their account type.

During account opening time customer is also asked whether they need other services offered by
bank like the ATM Card service, internet banking service, SMS banking service etc and if
customer are interested to get those service then customers are asked to fill up respective forms
to get those service.

ii) Statement printing

Any customer who wants to have bank account statement print is requested to fill up bank
account statement request form and submit then Customer Service Department staff verify
account number, account name, identifies account holder, account holder’s signature and then
provides respective bank account statement print to respective customer.
If the account type is Company account then company’s stamp is necessary along with account
holder signature for bank account statement print.

iii) Scanning and photocopy of documents

Various documents like specimen signature cards, photographs, citizenship, passports etc should
be properly scanned and photocopy and entered into bank system so that it could be accessed
easily when it is needed.

iv) Handling customer queries

As we come across with different individuals, they certainly have different queries related to
bank services, schemes and its products. Different queries of different customers should be
handling in a very effective way so that customer gets satisfactory solution of their queries.
While dealing with customers first we need to listen to the customer patiently and understand
their queries or problems only after that we should provide the appropriate information or the
solution as per customer’s need in very polite manner. If we do not have the appropriate
information about the customer’s queries then we should ask to other staff and provide
appropriate information to customer as quickly as possible. And queries are listened accordingly
in the Nepal Bank Limited.

v) ATM Card issue

While opening a bank account, customer is inquired about the need of ATM Card. Once the form
is filled up Customer Service Department staff will verify it and send it for the further
processing. Customer is requested to come and collect their ATM card in two weeks.

After after two weeks bank receives the ATM card of the respective customer. When the
customer comes to collect the ATM card, Customer Service Department staff verifies the
signature of the customer and issue the ATM card to the respective customer along with ATM
Pin number.

Only the account holder can collect the ATM card , if incase account holder is unable to come to
collect card then application specifying the person to whom bank can provide card along with
account holder signature should be provided to bank and person who comes to collect card
should show their identity.
vi) Cheque book issue

When account holder used the entire cheque leaves bank issue cheque book to the customer.
When customer fill up the cheque requisition slip that is attached along with cheque book.
Customer cheque requisition slip submitted by the customer should be filled properly date wise
and preserved in the department. Cheque books are usually made in a day and are arranged in a
chronological order. Cheques can be issued to anyone other than the account holder but with the
valid authority proof from the account holder.

vii) Allotment of Account Number

This department will maintain separate register for keeping record of account number already
opened for each type of accounts i.e. for current account, savings, foreign currency account. For
new account they allot account number by verifying the details of the customers in the system by
two staff.

viii) Complain Handling

Most of the account related complains or any other problems regarding banking products and
services should be handled by customer service department. This department is responsible for
providing efficient information to the account holder and handles their questions appropriately.
Complains should be seriously taken and handled carefully in order to avoid such mistake in the
future.

ix) Phone Communication Handling

The department is responsible for handling phone calls coming from outside. They are
responsible to answer questions of the customers and provide account related information via
telephone.

x) Signature Change

If any customer is willing to change his/ her signature for any genuine reason, a form called”
Specimen Signature Card” is given to fill it. Customer is also required to submit the photo along
with the documents such as Identity card/passport/ license for the authentication. Customer
Service Department staff will verify the form along with the documents. Then Specimen
Signature Card will be scanned and entered into the bank system. Hence the customer can use his
new signature for any banking purpose.

xi) Receiving the Visitors

The primary role of the Customer Service Department is receiving the visitors by the staff at the
most frontier location of the office. He /She bear the responsibility of receiving the client
soothingly and impressively. The visitors are there for several purposes such as meeting a
particular person, opening new account, closing the existing account, making inquiries relating to
debit card, ABBS system etc. These all are dealt by the staff sincerely with all the respect and
modesty. Customer Service Department personnel need to be calm and should posses good
communication skill to motivate the customer to use the service provided by the bank. Customer
Service Department personnel should not be rude because as far as customer is concerned if the
personnel are rude, the bank itself is rude.

xii) Updating the Records

The Customer Service Department personnel needs to update the records if any change has
occurred to the customer’s previously submitted information as soon as new information is
provided to the Customer Service Department. There are various possibilities of changes they are
discussed below:

A) Change in Address

If a change in client’s address takes place and such changes are notified to the bank for the
necessary updates of bank records, the designated staff of Customer Service Department updates
the record as per procedure mentioned here

Pre-requisites

 Valid signature of account holder on the request letter.

 A return request from the client.

Checking and Processing

 Verify signature on the letter.


 Ensure whether the phone number is changed.

 Enter new address in the computer system.

 Send acknowledgement letter of client's new address.

 Designated staff checks” maintenance history” from client system of fiancé plus to ensure that
the new address is correctly entered.

 Keep clients request letter as well as acknowledgement letter sent by the bank.

B) Change in Signature:

In the following circumstances, change in signature is asked by the client.

 Change in writing habit

 Change in ownership.

 Change in authorized person/office bearer etc.

For uninterrupted operation of accounts such changes are notified to the bank in writing for
necessary updating of banks record and change of specimen signature cards. On receipts of such
messages, the designated staff of CUSTOMER SERVICE DEPARTMENT updates the records
as procedure maintained.

xiii) Dealing with Different Customer Problems

Various problems are faced by the customers while using the services of the bank. Customers
bring their problem to the Customer Service Department first. Especially problems related to
ATM machine were encountered frequently during my stay in that department. Sometimes the
debit card would get stuck inside the machine such card is taken out from the ATM and kept in
Customer Service Department. The customers can collect such cards from the CS desk. If money
couldn’t be withdrawn from the ATM then the customers come to Customer Service Department
and the staffs there guide the customer to pus machine. This machine is frequently used in the
branches where the bank does not have an ATM.

The debit cards are swipe on the pus machine and the amount demanded by the customer comes
out in a slip. There will be two copies of a slip naming “merchant” and “customer”. The
merchant copy is signed by the customers and then submitted to the teller. The teller verifies the
signature and recompenses the amount referred in the slip. The customer copy is given to the
customer for the reassurance of the amount taken out from the card.

xiv) Instructing to Fill up Forms for Different Reasons

There are many other works to be done in the bank by Customer Service Department. Some new
people come to the bank for cash deposit. They are well drilled to fill up the voucher
consequently. Similarly, some people approach there if their account is dormant. The account
becomes dormant if no transaction is made for the period of six month. For these types of
customers Customer Service Department provides form and instruct them to fill up for activating
their account. As such in case of lose of debit card, people come there and they are again
privileged by a form in order to get a new card. This all is executed by Customer Service
Department with no negligence.

xv) Filing and Documentation

Filing and documentation are very important task that the Customer Service Department staffs
do. The entire paper work has to be done simultaneously to the computer work. There are
different files for filing different documents. The account holders’ form, their signature cards,
and their request slip all are filed in separate files. The void cheques are also filed. The request
for debit card issuance is mailed to the card center daily. Such request is printed out and filed in a
separate file. Similarly the account statement issued and cheque issued are printed and filed. The
authorized letter received by the Customer Service Department is also filed.

Similarly I have also conducted questionnaire with the Customer about the quality service and
according to the Annexure.

From Section I: Out of the 5 customer 3 said visiting bank 1-2 month and 2 said visiting bank 3-
5 month and none said above that.

From Section II: Out of the 5 customer 3 said whole of the services good and 2 said average
quality service

From Section III: Out of the 5 customer 4 said the staff polite, helpful, caring and mannered and
1 said rude, incompetent.
So, with this brief explanation of Nepal bank limited there is the very much good Customer
Services given to the customer and customer are also very much happy with the services of
Nepal bank limited.

LOAN DEPARTMENT ANALYSIS AND INTERPRETATION

Nepal Bank Nepal Limited has a mission to deliver a good service to everyone. In this scenario,
corporate entities cannot be an exception. Hence, Nepal bank limited Lending is solely targeted
to meet the requirements of corporate entities of Nepalese market.

Corporate lending includes both funded and non-funded facilities as per the requirement of
corporate entities. Some of the products offered are Overdraft, Demand Loan, Term Loan, and
Project Finance and so on. The credit facilities exceeding NPR millions falls under corporate
lending. But there are other loan facilities also such as margin loan, house loan, auto loan etc..

Target: Any success driven entrepreneurs who add value to economic growth.

Sectors: Manufacturing units, construction companies/contractors, tourism and travel trade,


Handicrafts, traders, wholesaler, retailers, importers/exporters, logistics, education, health,
manpower etc.

Features of credit Department:

 Personalized Service

 Competitive interest rates

 Ten days to cash (TDTC*) after submission of complete required documents

 Experience complete banking (we will offer entire range of products/services to the SMEs
including lending products, deposit products and other ancillary products such as cards, lockers,
transactional banking, internet banking, ABBS, etc.)

 Initiate and participate in active awareness programs, workshops, seminars for the benefit of our
SME communities.

 Micro Lending to micro entrepreneurs in groups or individual basis


 Loan for community hospital under following conditions

 CIC Program: CIC is a program to find the detail information of the customer while lending
loan from bank. Sometimes customer want to hide their detail information regarding loan from
others bank while taking loan from one bank. At that time bankers will not be able to know their
customer and cannot get sufficient knowledge about them. But nowadays banks use CIC
program to search detail information about loan takers. In this program name, address,
citizenship number, name of father or grandfather is entered in the system and system provides
detail information about that customer if there is any information available. Information on loan
taken from different banks, black marketing list etc. should be obtained from that program. In
credit department I used this program to find detail information on customer.

So, with this brief explanation of Nepal bank limited there is the very much good loan services
given to the customer and customer are also very much happy with the competitive loan rate and
services of Nepal bank limited.

Comparison of Audited Financial Data of Nepal Bank Limited of Last Four Year
Rs in Million
Year Deposits loans Investments Interest Interest Operating Net NPA
and (gross) Income Expenses Profit Profit %
advances
(gross)
2066/67 42,882 25,052 5,866 3,068 910 -622 249 5.37

2067/68 46,808 26,706 7,667 3,741 1,482 -56 128 5.75

2068/69 56,052 29,699 8,473 4,051 2,197 -210 176 5.58

2069/70 62,984 37,582 11,058 4,740 2,214 104 755 5.24


Similarly, I would also like explain the trend of deposit and loan activities descriptically. Deposit
is in the increasing trend from 2066/67(42,882 million), 2067/68(46,808 million),
2068/69(56,052 million) to 2069/70(62984 million).So from the data we can conclude a very
good deposit service to the customer so that customer are very happy to deposit in the NBL.
Similarly, loan advances is also increasing with the similar trend from 25052 in 2066/67, 46808
in 2067/68, 56052 in 2068/69 and 62,984 on 2069/70. So loan activities if Nepal Bank Limited is
also increasing due to a very good loan services given to the Customer.

Chapter-IV
Findings

1. The procedure for opening account is simple and easily opened within a short period of time.
2. The study shows that maximum numbers of people choose NBL as their Bank because of the
NBL performance. This states that the customer perceived NBL as good Bank in terms of the
performance
3. Flow of opening saving account is higher than the current and fixed account.
4. Most of the customers are satisfied by the free SCT service.
5. Most people close their account due to their own problems rather than other reasons.
6. Customers are satisfied with the services and friendly behaviors of the staff.
7. Friendly, co-operative, helpful, skillful staff.
8. While opening the account in Nepal Bank, the minimum balance is comparatively lower than
other bank.
9. The Bank gives equal value to every customer.
10. Nepal Debit Card can be used in many places as discussed above
11. Payment of every account interest is done quarterly except Senior Citizen Saving Account,
which is paid monthly.
12. Highest interest rate in deposit account is 6%
13. The interest earning to loans and advance is increased.
14. Mainly three types of account are hold by the people they are current, saving and fixed deposits.
15. As discussed above there is very good service regarding customer service and loan activities.
Chapter-V
Suggestions and conclusion
3.2. Conclusion
So from the study and analysis of the Customer Service and loan activities of NBL it can be said
that the customer has been increasing because of quality sevice in the field of customer service
and loan activities. But then also bank has not been able to utilize the collected saving according
to the borrower and nation requirement. So it will be profitable for NBL if it provides more
amount of long term and medium term loan.
Bank is the most important institution for accelerating economic growth in the country. It is quite
true that a strong financial institution is of a great need in the development of the developing
country like Nepal. The Nepal Bank Limited is one of the oldest banks of the country which has
got the history of 67 years. This bank is now in its advance stage. As being the first commercial
bank it has to pass through different ups and down according the situation. NBL has been
providing different services to its customers. NBL played a vital role in the over all development
of the country. NBL previously was started with the 51% of the government and 49% of the
public but at present time the bank has got the 40.49% share of the government and 59.51% of
the general public. So looking at this factor, NBL has developed a lot in this time. The Bank has
high contribution in fulfilling the economic improvement by collecting the scattered resources
through the network of 118 branches through out the country. Though commercial banks are
profit oriented and invest these resources in those sectors from where they could gain maximum
profit, NBL is initiated not only with profit oriented motive. It has always given preference to the
economic and the financial development of the country. It provides credit facilities to the trader,
agriculturist, industrialist, businessman etc. It can be said that NBL acts as the pillar of the
economic development. NBL facilitate international banking by being directly connected with
major international banks.NBL has different functions but the main function is to provide the
security to the wealth of the customers. NBL generally provide three different types of accounts
i.e. saving, current and fixed deposit account. Although the interest is not provided in current
account, people deposit in this account for its safety. Fixed deposit account is most common
among the people because it has higher interest rate, can be pledged as collateral for loan and
easier to open. The study provides the brief knowledge of "Customer Service and Loan activities
of Nepal Bank Limited" and presents condition of customer service and loan activities of NBL.
3.3. Recommendation and suggestion
Some suggestion and recommendation are being put forward for the improvement and
development of Nepal Bank Limited which are as follows:

1. Now, the economic condition of the country is deteriorating; there is danger of reduction of
business and industrial activities. Therefore banks should not focus only in collecting huge
amount of deposit by increasing the interest rate.
2. It is common complain that customers entering the branch premises have crave for employee
attention. The remedy lies in creation of a friendly behaviour to all customers who come into the
branch, whether valuable or not. A smile on the face would not cost but would go along way in
satisfying customer’s expectation.
3. Considering the present economic condition of the country, the bank should pay pivotal role
for the economic development of the country. They should promote balanced regional
development by financing funds in remote and other priority sectors.
4. The banks mobilized capital should be made available for investment in productive enterprises
whether the business is of small, medium or large sized. Thus the bank should expand its credit
to promote economic development more rapidly.
5. Higher interest rate is a tool to attract customer to deposit their money. This will eventually
lead to the collection of funds. The cash deposited by the customer are liquid position to help
maintain adequate liquidity position of the bank. It also offers more chance to invest or lend.
6.There is serious competition among joint venture banks, finance companies and insurance
companies being ruined or even strong companies going to losses and liquidate. Therefore the
bank should be service oriented. They should train and motivate the staffs, get up-to date
information about other bank and try to grow their market.
7.The bank should concentrate in various investment policies, so that the investment is done in
wide range of profitable sectors in proportionate manner. The bank should scrutinize with, are
parties, bank are dealing with, are having good reputation or not otherwise, the transaction, the
truncation with bad parties may lessen the value of bank.
8. The bank should publish annual report and distribute booklets containing details information
about its activities and performance as well.
9.The bank should follow the discipline and adopt directives of NRB. This helps to maintain
harmonious relationship between other banks as well.
10.The bank should launch various kinds of welfare programs for its staffs and the society.
Excellent staffs should be promoted in order to motivate them.
11.The bank should grab opportunities as soon possible, by adopting efficient and latest market
strategies. Traditional method should be left behind.
12.There should be certain fund for advertising. Advertising also helps to attract depositors and
borrowers.
13.NRB should invite commercial banks officials to participate in formulating policies rules,
regulation and directives.
14.Banks should bring attractive motivational programs to motivate their employees effectively
and efficiently.
15.NBL should change its marketing concept. It should adopt new and modern marketing
concept. Now, it should go for the societal marketing concept for the betterment of the society
and itself.
16.The bank must employ only required number of employees otherwise it may create a big
problem in bank.
17.The Bank should also provide more attention towards the priority sectors and also provide the
industrial scheme for the development of the economic condition of the country.
18.The bank must not invest only in one sector; different sector should be selected of the
investment.
19.Since it has certain responsibility towards the country, it must work for the economic
development of the country.