Professional Documents
Culture Documents
NIC Asia
NIC Asia
Tikendra Bhandari
School of business
Pokharauniversity
Date: 2076/05/22
Supervisor
Mr. Dipendra Joshi
Mr. Dipendra ayer
Faculty member
Brixton college
CERTIFICATE
This is to certify that the project work titled “Credit facilities of NIC ASIA BANK
LTD MAHENDRANAGAR BRANCH” sumitted by Tikendra Bhandari of Brixton
college having roll no. 36 for the partial fulfillment of the requirements of BBA
embodies the bonafide work done by him/her under my supervision.
ACKNOWLEDGEMENTS
An project report entitle “AN SUMMER PROJECT REPORT ON CREDIT FACILITIES
OF NIC ASIA BANK LTD MAHENDRANAGAR BRANCH” has been prepared to fulfill
the partial requirements of the project report of BBA 6th semester. Foremost, I
would like to express my deep gratitude to NIC asia bank for providing the
exciting opportunity to be one of them and giving me through guidance and
opportunity to move ahead with project work objectives. I would like to extend
my gratitude to Mr. Surya Prakash Pathak, Branch manager for providing
guidance and motivation to me. I am also grateful to all the staffs for their
valuable cooperation, guidance, direction and continuous support throughout the
project work. I would like to thank Mr. Dipendrajoshi sir and the entire faculty
members for supervising me and providing necessary guidelines to complete the
report. I would like to extend my heartfelt thanks to all who assisted with their
valuable suggestions and ideas while preparing the report.
Thank you!!
…Tikendra Bhandari………….
BBA ( 6thsem)
Brixton college
ABSTRACT
As per the curricular of school of business studies at pokhara university, I was
assigned to undergo an project work in an organization during the sixth semester
of the program BBA after a proper study in the required field. To conduct this
study, I choose NIC asia bank limited mahendranagar branch. During the period of
this study, I tried to discover as much as possible about credit facilities provided
by bank to its customers on loan department of particular branch. The purpose of
this project work was to relate the theoretical knowledge acquired in our
academic period in a real life situation and gain the practical knowledge as well as
experience. The project also had an intention to help me understand, analyze and
present the basic loan practices in Nepalese banks. It also helped me to gain an
insight of various players in the banking sector and helped to analyze the industry
as a whole. The general objective of the study is to access the theoretical
knowledge in practical one. But, the specific objective is to access the position of
the company in terms of its credit facilities and identify the strength, weakness,
opportunities and threats of the proposed organization.
The NIC ASIA bank is one of the leading finance company and has strong goodwill
in the market. Its main focus is to deliver world class services and visionary
management to achieve sound financial health with sustainable value addition to
all their stakeholders. It has its branches in many areas inside and ouside the
valley and have further planning to expand it.
In my project I have introduced the NIC ASIA bank limited and dedicated first
phase for its general background and applied the methodology to conduct this
study. The second phase of the project is done on analysis of financial industry in
Nepal. The third phase of the project done on the study of the organization and
their different departments. In the fourth phase, presentation and analysis of
data through the SWOT analysis is portrayed and findings are also included.
Finally, in the fifth phase I have done conclusion and recommendation are
included.
TABLE OF CONTENT
1. Introduction
3.1 Introduction
3.2 Product/service offered by NIC
3.3 SWOT analysis
The history of the financial sector especially modern banking industry can
be traced back to 1694 A.D. in England; but as far as Nepalese banking
history is concerned, it is only a third quarter of a century old, with the
establishment of the Nepal bank limited in 1937 A.D. (1994 B.S.). now if we
closely analyse the financial sector, we will find that the financial sector
branches out to two major sub-sectors: the banking sector and the non-
banking sector. The banking sector encompasses the central bank .i.e. the
NRB and the thirty-two commercial banks; whereas the non-banking sector
comprises of development banks, finance companies, cooperatives, micro-
finance and other financial institutions such as insurance companies,
mutual funds, provident funds, postal saving offices and Nepal stock
exchange.
The primary objective of this project work is to gain valuable insights into
the business sector, more specifically the banking industry in addition to
this another major purpose is also to relate the theoretical knowledge with
the practical experience and to enable us to be more prolific in acquiring
the real life techniques of achieving results through both individual effort
and team building along with the knowledge gained from the academic
environment. The other specific objectives of the study are:
1.3 Methodology
For the preparation of my project report, I collected data from 2 major sources
which are as follows:
a) Primary source
Personal interview
Observation
b) Secondary source
Annual reports
Brochures of the bank
Bank’s official website www.nicasiabank.com
Nepal rastra bank official website www.nrb.org.np and periodicals
1.4 Limitations
The chief limitations that I faced during the project work and during the
preparation of this report are listed as:
The major constraint was the time constraint. So, learning and
knowing all the banking procedure within the project work period
.i.e. two month is almost impossible.
Limited access to and the use of the banking software, so as I was
an outsider which prevented me from learning more about the
actual transactions and entries in the system.
Limited knowledge on my part which created hindrances to
understand the jargons and technical procedures of the banking
world.
This report only visualizes the activities of CSD of the
mahendranagar branch and not of the entire organization as a
whole.
The study is not applicable to other organization of similar nature
and
Finally, the data collected may not be so accurate as information
was collected from the limited personnel and the customer of NIC
ASIA bank of Mahendranagar branch.
CHAPTER 2: INTRODUCTION OF BANKING SYSTEM
Banks are regulated by the laws and central banks of their home countries;
normally they must receive a charter to engage in business. Banks are
usually organized as corporations. At present context, a bank may engaged
in different types of functions such as remittance, exchange currency, joint
venture, underwriting, bank guarantee, discounting bills etc. Banks are the
principal source of credit for millions of individuals and families and for
many units of government. They are among the most important financial
institutions in the economy.
The first bank of Nepal in its history was established in 1994 BS. Kartik 30
and named as Nepal Bank Limited. It was established before the
establishment of Nepal rastra bank, the central bank of Nepal. The bank has
developed the culture of saving Nepalese rupees by displacing the trend of
using indian rupees in Nepal. As well as the culture of saving people’s
money and institutionalizing facilities. The role of the bank has been
praised as the first bank in the country to promote and develop
industrialization, trade expansion, the arrangement of import-export and
development of nepakese economy. Nepal bank limited is a commercial
bank which obtained ‘A’ class from Nepal rastra bank. Nepal bank limited
has been established in joint logistics of Nepal government and private
entrepreneurs.
On june 1, 1945, the first Nepalese paper banknotes were issued- tickets of
the Nepalese government. Since September 1945, their release continued
the central treasury. In 1955, the stste bank act was adopted. On april
26,1956, the Nepal rastra bank began operations and in 1960- the issue of
banknotes. A new law of 2002 confirmed its role as a central bank. On
march 22, 2010, yuba raj khatiwada became president of the bank. The
main tasks of the central bank are to maintain price stability in support of
economic development, provide liquidity to the banking sector. It has
offices in seven cities: biratnagar, janakpur, birgunj, pokhara,
siddharthanagar, nepalgunj and dhangadi. This central bank oversees
commercial banks in Nepal and guides monetary policy. Rastra bank Nepal
also oversees foreign exchange rates and foreign exchange reserves. This
bank is one of the owners of the Nepal stock exchange.
The following points highlight the top four functions of banks. The functions
are as follows:
NIC ASIA Bank has its antecedents in NIC bank which was established on
21stjuly 1998. The bank was rechristened as NIC asia bank after the merger
of NIC bank with bank of asia Nepal on 30thjune 2013. This was a historic
merger in the annals of Nepalese financial landscape as the first of its kind
merger between two successful commercial banks in the country. Today,
NIC asia has established itself as one of the most successful commercial
banks in Nepal.
During the post merger integration phase, NIC asia managed the transition
very smoothly receiving accolades from the regulators as well as the
stakeholders, paving the way for other mergers and consolidation in the
Nepalese financial sector. After the merger, NIC asia was recognized as
“bank of the year 2013 nepal” by the banker, financial times, uk. This is the
second time that the bank was recognized with this precious award, the
previous occasion being in 2007.
NIC asia bank is now, one if the largest private sector commercial banks in
the country in terms of capital base, balace sheet size, number of branches,
ATM network and customer base. The bank has 293 branches, 55 extension
counters, 41 branch less banking and 319 ATMs across Nepal with a
network covering all major financial centers of the country. The bank
strongly believes in meritocracy, transparency, professionalism, team spirit
and service excellence. These core values are internalized by all functions
within the bank and are reflected in all actions the bank takes during the
course of its business. The vision of this bank is to ensure creation of
optimum values for all the stakeholders. Its mission is to be a bank of 1st
choice for all the stakeholders.
The directors of the bank are eminent personalities with vast experience in
business and the financial sector. The board of directors is fully committed
to a high standard of corporate governance, which among others
encompasses the principles of full disclosure and transparency, social
responsibility and accountability, “zero tolerance” compliance culture,
business and customer confidentiality, intolerance of conflict of interests
and an independent management. The board comprises of the following
directors:
The bank’s corporate governance policy is directed not only towards the
regulatory and legal requirements, but also towards adherence to best
business practices, transparency and disclosure to the stakeholders. The
bank has established a culture of best practices in corporate governance.
The bank’s corporate governance framework is based on effective
independent board that is not involved in day to day management, and the
constitutions of different board committees with independent directors to
oversee critical issues.
The bank has adopted three core principles of corporate governance i.e.
integrity, transparency and fairness. Good corporate governance has been
an integral part of the bank’s policy in order to safeguard the interest of its
shareholders and stakeholders, and for providing the highest level of
service to its customers.
During the review period, the bank has formulated and implemented
“Corporate governance policy 2015” which shall further strengthen the
bank’s corporate governance practices and values across all levels and
activities of the bank. The main objectives of the policy are as follows:
To lay down a framework for achieving the vision, mission and
objectives of the bank in an effective and efficient manner.
To lay down a foundation for sound organizational development,
planning succession, control and performance.
To lay down a comprehensive framework that instills, monitors,
reviews and reacts to pertinent corporate governance issues so as to
protect the legitimate interest of all the stakeholders.
To ensure that all activities of the bank are carried out in due
compliance with applicable acts, regulations and directives and
To lay down a broad framework for formulation of other policies,
manuals and guidelines of the bank.
In line with Nepal rastra bank’s direction, a separate corporate
governance unit comprising of following members has been formed:
ACEO Coordinator
ACEO Member
Head legal Member
Chief financial officer Member
Manager- branding and CSR Member
Head-internal audit Member secretary
As a responsible corporate citizen of the country, the bank has been
involved in contributing to the society in various as a part of its
corporate social responsibility (CSR). In order to promote and focus
on CSR activities the bank has established a charitable foundation
called NIC asia foundation. The bank has committed to pledge 1% of
its net profit every year to the NIC asia foundation for promoting
various CSR related activities.
In the past, the NIC asia foundation has carried out various activities
including but not limited to distributing disaster relief packages to
the victims of various disasters, contributing to the prime minister
relief fund, organizing health camps, organizing blood donation
camps, providing support to old ages homes and orphanages,
providing scholarships to the needy students etc. A significant
number of people have been benefitted, directly or indirectly by the
activities carried out by the foundation. The foundation plans to
continue the same in the future as well.
Bank of asia is a joint venture partner of NIC ASIA bank holding 20%
equity in the bank and is one of the largest nationalized bank in asia.
With its presence virtually in all the important centres at asia. ASIAN
development bank offers a wide variety of banking services which
include corporate and personal banking, industrial finance,
agricultural finance, financing of trade and international banking.
Among the clients of the bank are Indian conglomerates, medium
and small industrial units, exporters, non-resident Indians and
multinational companies. The large presence and vast resource base
have helped the bank to build strong links with trade and industry.
3.1.2 Equity structure
6%
94%
The above figure shows that general public holds 94% stake in the
bank’s equity while 6% of the equity is contributed by other
enterprises.
Board of Director
(Chairman)
(Chairman)
Executive
Director
Finance/Tax/Inspection, Reconciliation
A/C,NRB/Budget
FOREX Domestic
NIC ASIA has different department in order to facilitate different types of facilities
to the various customers.
a. Human resource department:
This department performs the function as recruitment, selection,
promotions, transfer, performance appraisal, training and development of
employees etc.
b. Account/budget department:
This department is responsible for maintaining and preparing whole budget
and account of the bank. It has all the records of banks operational as well
as administrative expenses.
c. Trade finance department:
This department facilitates trade activities both internal and external. In
this department bank acts as an intermediary between supplier and client.
This department issues LC and guarantee.
d. Cash department:
This department deals with inflow and outflow of the money. NIC ASIA
collects deposits and facilitates withdrawal via different counters.
e. Legal department:
This department looks after the legal aspects of the bank. Policies of the
bank are formulated only after the legal aspects provided under NRB. This
department makes sure of all activities and steps followed in serving a
customer are totally legal.
f. IT department:
This department is responsible for development and maintenance of
network system and information storing.
g. ATM shell:
The function of this department is to make cards .i.e. debit and credit cards
and provide customer pin codes for their cards and others.
h. Treasury department:
This department handles foreign currency, treasury, transfer and clearing
etc.
i. Remittance department:
The function of this department is to facilitate remittance (both internal
and external).
j. Corporate credit department:
This department defines the needed documents for particular loan and the
documentation portion of that is done here.
NIC ASIA bank with a slogan of “NIC ASIA, bank pani sathi pani, ramro pani
hamro pani” provides customer friendly services through its branch
network and all it’s the branches are connected through anywhere branch
banking system(ABBS), which enables customers for operational
transactions from any branches. The bank has 50 branches, 67 ATM
counters and 20 revenue collection counters across the country making it a
very efficient and accessible bank for its customers, anytime, anywhere.
SWIFT are other modes of communication for efficient and effective
transmission of information where NICNPKA is the swift code of NIC ASIA.
Being a joint venture partner of NIC ASIA, the account holders of NIC ASIA
can also transact through more than 5600 branches and 6000 ATMs of
other banks. NIC debit card can also be used at more than 100 point of sale
(POS) terminals for purchase of merchandise. There is more than 170
remittance payout location in Nepal. It has its own remittance product “NIC
remit” to enables remit income from the gulf countries.
3.1.7 Awards
The bank has been conferred with “bank of the year 2013, Nepal” by
the banker, a publication of financial times, London.
The bank was bestowed with the “NICCI ecellance award” by Nepal
india chamber of commerce for its spectacular performance under
finance sector.
4.Loan against shares: With NIC asia bank’s loan against shares, you can get an
overdraft/demand loan facility against the securities of shares. This is an instant
solution if required cash within a short period of time with simple documentation
and processing.
Feature:
Loan against pledge of shares of acceptable traded companies
Attractive interest rate
Fastest loan processing
Hassel free and easy documentation
5.NICasia personal loan(NAPL): NIC asia personal loan is a non-collateral based
loan scheme especially designed to facilitate Nepalese salaried individuals and
professionals to meet their individual financial requirements; offers lower
monthly obligation and hassle-free services along with fastest service delivery to
our valued customers.
Feature:
Credit facility as term and overdraft/demand loan in monthly payment
Minimum loan amount of NPR 0.3 million to maximum upto NPR 1.5 million
Loan tenure upto 5 years, subject to the annual review
Competitive interest rate
Easy documentation
Hassle free loan processing
5.NIC asia education loan: NIC asia education loan is a collateral based loan
specially designed to facilitate Nepalese students to meet their financial
requirements to pursue higher education above +2 level in Nepal or abroad.
Feature:
Loan amount of minimum NPR 0.3 million to maximum NPR 10 million
Term loan facility with a tenor of upto 15 years excluding moratorium
period
Upto 100% financing of total cost considered subject to valuation of
collateral.
Accept collateral type
*Land and/or building
*Fixed deposit
Flexible repayment option
Hassle free processing
Competitive interest rate
6.Foreign employment loan: Now don’t worry about the expenses to go abroad
for employment. NIC asia bank introduces foreign employment loan, a new type
of collateral based loan targeted to people who are going to foreign country for
employment purpose.
Feature:
Competitive interest rate
Credit facility as term loan and overdraft/demand loan
Loan tenure upto 5 years, subject to the annual review
Easy documentation
Hassle free loan processing
7.Gold loan: NIC asia bank introduces NIC asia gold loan, one of the easiest and
fastest loan schemes of the banking industry. NIC asia gold loan offers hassle free
credit facility with flexible repayment options to our valued customers. Major
features of NIC asia gold loan are:
Loan limit: Minimum NPR 30000/- and maximum NPR 50 million
Financing up to:
70% against pledge of gold ornaments
80% against pledge of fine gold bar and gold coins
Free insurance coverage of pledged gold
Facility type: Demand loan and overdraft
Interest rate: As published by the bank payable on quarterly basis(as per nepali
calendar)
Period: Maximum 1 (one) year (if required- to be renewed every year from the
date of maturity)
Partial payment: Allowed
Eligibility:
Nepali citizens: 18 years and above
Duly registered companies
Available at following branches:
Inside valley Outside valley
1 New road khichapokhari branch 1 Banepa branch
2 Kaushaltar branch 2 Dharan main branch
3 Bouddha branch 3 Janakpur branch
4 Balaju branch 4 Pokhara branch
5 Jwalakhel branch 5 Butwal branch
6 New baneshwor branch 6 Dhangadhi hospital line
7 Corporate office branch, 7 Birtamode branch
Thapathali
8 Mahendranagar branch
9 Biratchowk branch
10 Gaighat branch
11 Bhairahawa branch
12 Biratnagar branch
13 Nepalgunj branch
14 Birgunj branch
15 Urlabari branch
3.2 Products/services offered by NIC ASIA
NIC ASIA has never backed in providing the best products and services to meet
the requirements of its customers be that the existing ones or potential
customers. NIC ASIA is indeed successful to provide these entire products through
the analysis of the customer feedback form. Customer’s satisfaction is the
paramount driver at NIC ASIA.
The different product and service offered by NIC ASIA are as follows:
Saving account: Saving account offers all facililities required for normal
transactions like deposit, payments with additional facility of debit cards,
ABBS. Under the saving account, the various schemes offered by bank
includes saving premium, sunaulo bhawisya yojana, unfixed fixed deposit,
fixed deposit, freedom account, naari bachat khata, normal saving account,
student account, bal bachat khata, saughat bachat khata, USD account, call
deposit and current deposit.
Retail lending: Under retail lending, the various loans offered by NIC ASIA
are housing loan, vehicle loan, education loan, professional loan, loan
against mortgage, loan against future lease and rental and loan against
shares.
Working capital finance: The bank services the working capital capital
requirements of business by accessing the current asset and liabilities.
Project finance: Depending on the projects rate of return, repayment
ability, cash flow and generation of cash surplus various projects are
financed.
Trade finance: Through an extensive global network that facilitate domestic
and international transaction, NIC ASIA is able to meet customers need of
import, export, payments through offering facilities like LCs, SWIFT
transfers, guarantees etc.
Consortium finance: NIC ASIA has been arranging for financial closure of
various large projects through lending consortium finance. The bank has
offered such services to various business segments like hydropower,
manufacturing industry and hospital.
Priority and deprived sector lending: The bank has been extending loan
facilities to priority and deprived sector in the form of direct as well as
indirect lending.
Remittance: In order to facilitate remittances of Nepalese residing in UAE,
Bahrain, Kuwait, Qatar, Malaysia and Saudi Arabia, NIC ASIA is a step ahead.
NIC ASIA is playing a pivotal role in facilitating remittance to and from
across globe. The banks own web based online remittance product. With
world remit, the bank has same day remittance facility with other different
banks with association of bank of asia’s 2200 networked branches, based
draft drawing arrangement.
B. Locker:
NIC ASIA provides a sound and secure place to keep valuables corporate
papers or bond/shares certificate or jewellery through locker service.
Any person who wants to open the locker must have an account at NIC
ASIA. Locker margin and charge depends on the size of locker.
C. Debit card:
NIC ASIA debit card is a plastic card which provides an alternative
payment method to cash when making purchases or cash withdrawal
from ATM centers. NIC ASIA debit card having maturity of eight years is
a key to ultimate convenience regarding day to day monetary
transactions providing customers the power of real cash in form of card.
Associated with smart choice technology (SCT), it facilitates wide sharing
of ATMs under SCT network from more than 650 locations throughout
Nepal. It has recently launched VISA debit card to facilitate customers.
D. Evening counter:
For added comfort and convenience of NIC ASIA valued customer, NIC
ASIA is opened even after banking hours. Various services are provided
during evening counter. Some of them are as follows:
Acceptance of deposits
Withdrawal of cheque amounting NPR up to 1500 lacs per cheque
Remittance facility-online remittance payment
Issuance of details
Accepting of clearing cheque mentioning late clearing
ABBS facility etc.
Other different services are provided by NIC ASIA LIKE e-banking,
weekend banking, fund transfer, SMS banking, mobile banking, SMS
alert, pay bill banking.
3.3 SWOT analysis
1. Strength
Joint venture partner with BANK OF ASIA.
First class infrastructure and advanced technology
Goodwill
Quality service
Facility of ABBS
Effective inter departmental communication
Pioneer of online banking
Involvement in off balance sheet activities
Proper strategic planning and preparation
2. Weakness
Lack of sufficient ATMs in and outside valley
Insufficient marketing
Availability of only SCT based debit card or limited card services.
3. Opportunities
New investment opportunities
Growing international trade
Introduction of innovative products, services and programs
Installation of updated technology
4. Threats
Political instability
Changing customer preferences
Changing technology
Intense competition
Lack of investment opportunities in the market
CHAPTER 4: ANALYSIS OF ACTIVITIES AND PROBLEM
SOLVED
4.1 Customer service department
A company’s customer service department handles the concerns of customers.
The department answers customers questions, attempts to resolve customers
complaints and tries to sell new services to them. Most companies have a
separate customer service department; although in some cases a receptionist
may function as a customer service representative. In addition to resolving
customers complaints and answering their questions, the customers service
department also takes suggestions from customers who have new ideas that may
improve the image of a company and attract new customers. For example, a
customer may send an email suggesting that a local supermarket increase the
amount of organic products.
The customer service process must be transparent. If an organization can practice
full disclosure in an obvious way in their product information and their contracts,
they are on the way to create customer loyalty. If the customer experiences your
organization as one they were never surprised and never deceived, the
organization will create a competitive edge. Good customer service is all about
bringing customers back. And about sending them away happy-happy enough to
pass positive feedback about the business along to others, who may then try the
product or service the bank offer for themselves and in their turn become repeat
customers.
Start
Process
End
Approve application
Create account
End
Account closing procedure
An account is closed only upon receiving a written request from the customer a/c
holder. At first, the a/c holder fills up the “account closing request” form and
submits it to CSD. The customer has to return ATM card and cheque which are
unused to the bank. The bank charges RS 300 for closing the account and
returned balance to the customer. After the completion of filling up the form, it is
verified and signature by operation manager and branch manager. Thus, finally
customer account is closed.
Figure 4.2: Flow chart of a/c closing procedure
Start
Process
Decision
End
Approve application
Provide remaining
Close account
Cheque issuance procedure
Cheque issuance procedure is the very sensitive task. It is the most regular activity
of CSD. Multiple cheque books are printed daily in CSD. The cheque printing and
issuance procedure are explained follows:
1. For new account holder, bank provides the cheque without any cost.
2. If customer has to print the cheque for the second time, then customer
has to fill up the requisition slip that contains the date, number of
required cheque levels, valid signatures (stamp of the company in case
of current account).
3. After that, CSD staff will issue the cheque and operation manager
verifies it and gives permission to print the cheque.
4. The next step after printing of cheque is to enter the record on cheque
registered which is signed by customer and the operation manager.
ATM card handling procedure
The ATM card at NIC ASIA bank is debit card under the smart card technology
(SCT) network. NIC ASIA bank takes the charge for issuance of ATM card
depending on the type of account. For example, RS 200 is charged for normal
saving account RS 50 is charged for nari bachat and no ATM charge for freedom
account and salary account. The issued ATM card is valid for 8 years and customer
can withdraw RS 100000 in one day using debit card.
Statement printing procedure
A statement of account that shows a detailed list of the transactions (withdrawals
and deposits/debits and credits) as well as the closing balance of the a/c as of the
one day before the statement printing. The statement of account is provided on
customer request and no any form has to be filled up for statement print. But
account holder must be present for statement print. In case if account holder is
not present, the agent must have the application of statement printing request
signed by the account holder.
Balance enquiry handling
During my project work, I learnt that NIC ASIA bank takes special caution in
disclosing the balance in any account, which I found very impressive. Customers
often come to CSD for balance enquiry but it is only entertained after establishing
the identity of the a/c holder by checking the photo or signature in the system.
Telephone balance enquires are not entertained as far as possible. Only to some
highly regular customers whom the staffs know very well are given the privilege
of balance enquiry via phone.
E-banking
E-banking is a free service that allows customers to avail online banking
transactions wherever and whenever required. To use this service the customer
has to submit a duly signed and filled up “Application for internet banking” form
to CSD. Then CSD forwards the request to operation manager desk. Then the very
next day, the bank provides the user code and password to the customer. The
customers can then full control over their accounts after collecting the user code
and password. The services available include balance enquiry, check transactions,
send and receive messages and bank statement.
SMS-banking
SMS- banking is a system where customers are facilitated to access their account
status and retrieve general information regarding their account and other banking
transaction through their mobile phone. Customers can perform the following
tasks such as balance enquiry, downloading transaction information, view online
statement, charge PIN code etc. the only work that CSD does in case of SMS
banking is to collect the “Application for SMS banking” form from the interested
a/c holder, send it to the concerned department. The NIC ASIA bank does not take
any charge for SMS banking but bank charge RS 200 annually for SMS alert.
Customer query handling
AS a CSD staff during my project work, all my time was spent in handling the
numerous queries of various walk-in customers. I gave the information that they
wanted. Many customers were interested to learn about that product, which I
happily obliged. In addition to that, I answered queries about our other products,
services, transaction hours etc. I single-handedly handled all the customer queries
via phone as well.
4.1.1.2 Analysis of irregular/occasional activities
KYC update is the recent activity that is carried out in all the
commercial bank as instructed by Nepal rastra bank. So as per the
instruction, I distributed and helped customer to fill up the KYC
form at NICASIA bank, mahendranagar branch. For KYC update,
we told to inform the customer who visit the bank and who
doesn’t often visit the bank they were informed through
telephone calls.
Age
18-23 years
17%
35 to above year
21%
24-29 years
30-35 years 28%
34%
Single
34%
Married
66%
Interpretation
From above response it can be seen that
48% respondents are under graduate.
14% respondents are graduate.
38% respondents are post graduate
Education Qualification
Undergraduate Graduate Post graduate
38% 48%
14%
Q4. Your annual household income?
Ans.
Less than 2 lacs 46 person
Between 2 to 5 lacs 64 person
Between 5 to 8 lacs 23 person
More than 8 lacs 7 person
Interpretation
From above response it can be seen that
33% respondent’s annual household income is less than 2 lacs.
46% respondent’s annual household income is between 2 to 5 lacs.
16% respondent’s annual household income is between 5 to 8 lacs.
5% respondent’s annual household income is more than 8 lacs.
Annual income
Q5. How do you like different product/services provided by NIC ASIA bank?
Ans.
Excellent 67 person
Very good 33 person
Good 40 person
Interpretation
From the above response it can be seen that
48% respondents perception said excellent
23% respondents said very good.
29% respondents said good.
Perception
Excellent Very good Good
14%
48%
38%
Willingness
Yes No
0%
100%
Q7. Do you have all the documents which are required to open an account?
Ans.
Yes 137 person
No 3 person
Interpretation
From above response, it can be seen that
98% respondents have all the documents which are required to open
an account with the bank.
2% respondents do not have all the documents which are required to
open an account with the bank.
Yes No
2%
98%
CHAPTER 5: CONCLUSION, LESSON LEARNT AND
RECOMMENDATION
5.1 Conclusion
From the above analysis it is seemed that NIC ASIA bank is one of
most hard working commercial bank that is dedicated in serving their
valued customers with excellence. During this project work of two
months, I had learnt a lot about the banking activities and banking
operation in the nepalese market, about NIC ASIA bank in particular.
This report has made researcher know about the various kinds of the
customer services that NIC ASIS bank has been offering. The project
work has been fruitful in many ways to researcher.
Lending rates
Retail Premium(% p.a.)
Auto loan Upto 7.00
Home loan
a. Home loan OD Upto 7%
b. Home equity loan Upto 7%
c. Residential home loan Upto 7%
Gold loan Upto 7%
Sajilosubidha( Term loan) Upto 7.00
Sajilosubidha(Overdraft) Upto 7.00
Sajolokarja Upto 7.00
Gold loan-demand Upto 7.00
Gold loan-overdraft Upt0 7.00
Loan against share Upto 7.00
Personal loan Upto 7.00
Education loan Upto 7.00
Foreign employment loan Upto 7.00
Loyalty financing facility Upto 7.00
Real estate loan Upto 7.00
Chamatkariksawarikarja Base rate plus 0.12% to
1.32% premium
Chamatkarikgharjaggakarza Base rate plus 0.12% to
2.52% premium
SME Premium(%p.a.)
Fast track business loan Upto 7.00
Priority business loan Upto 7.00
Premium business loan Upto 7.00
Commercial agricultural and Upto 7.00
livestock loan
Corporate Premium(%p.a.)
Import credit/TR. Loan Upto 7.00
Overdraft/Cash Upto 7.00
credit/working capital loans
Term loan Upto 7.00
Other short term working Upto 7.00
capital loans
Deprived sector lending Premium(% p.a.)
Deprived sector-direct Upto 7.00
Deprived sector-indirect Upto 7.00
Others Premium(%p.a.)
Export credit Upto 7.00
Loan against own FDR Upto 7.00
Loan against other bank’s Upto 7.00
fixed deposit receipt
Loan against 1st class bank Upto 7.00
guarantee
Loan against government Upto 7.00
securities(max draw down
80%)
Agricultural loans for youths Upto 7.00
Equipment financing Upto 7.00
FCY loan Upto 1 year LIBOR +4
Notes:
Base rate for the monthshrawan 2076 is 9.3%.
Interest spread rate for the month shrawan 2076 is 5.05%.
Rate on default account and watch list account may vary from
the above published rates.
Interest rate on consortium loans shall be as decided by
consortium.
Interest rates in specified loans directed by Nepal rastra
bank(like agricultural loan for youth, refinance, export
oriented units in FCY, deprived sector loans to minorities,
senior citizen, differently abled, widow, war victims, etc) shall
be as stated by Nepal rastra bank circular/directive.
Penal interest rate shall be charged at the rate of additional
2% p.a. on principal overdue and/or interest overdue on loan
amount or deal or contract outsourcing from the time interest
and/ or principal becomes overdue on the respective loan
amount or deal or contract.
In case of temporary overdrawn account highest published
rate for the amount excess to the limit shall be charged.
Other interest rates remains unchanged.