A Thesis On Customer Satisfaction OF Nepal Investment Bank Limited

A THESIS ON
CUSTOMER SATISFACTION
OF
NEPAL INVESTMENT BANK LIMITED
Submitted By:
Sumitra Shrestha
TU Reg. No: 7-2-478-59-2003
Roll No: 1221/064
Exam Roll No: 392720
Shanker Dev Campus
Submitted To:
DEPARTMENT OF RESEARCH
FACULTY OF MANAGEMENT
TRIBHUVAN UNIVERSITY
KATHMANDU, NEPAL
In partial fulfillment of the requirements for the degree of

Master of Business Studies (MBS)
September, 2012
RECOMMENDATION
This is to certify that the thesis
Submitted By
SUMITRA SHRESTHA
Shanker Dev Campus
Entitled
"Customer Satisfaction of Nepal Investment Bank Limited"
has been prepared as approved by this department in the prescribed format of the Faculty
of Management, Tribhuvan University. This thesis is forwarded for examination.
…………………………….. ..………………………….. .……………………………..
Dr. Narayan Krishna Pradhan Prof. Bisheshwor Man Shrestha Asso. Prof. Prakash Singh Pradhan
(Thesis Supervisior) (Head, Research Department) (Campus Chief)
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VIVA-VOCE SHEET
We have conducted the viva-voce examination of the thesis presented by
SUMITRA SHRESTHA
Entitled
"Customer Satisfaction of Nepal Investment Bank Limited"
And found that the thesis to be original work if the student and written according to the
prescribed format. We recommended the thesis to be accepted as partial fulfillment of the
requirement for Master Degree in Business Studies (M.B.S.)
Head of Research Department:…………………………………
Member (Thesis Supervisor):…………………………...............
Member (External Expert):……………………………………..
Property of Shanker Dev Campus 3 ii

DECLARATION
I hereby declare that the work reported in this thesis entitled "Customer Satisfaction of
Nepal Investment Bank Limited" submitted to Shanker Dev Campus, Faculty of
Management, Tribhuvan University, Kathmandu Nepal, is my original work done in the
form of partial fulfillment of requirement for the Master's Degree in Business Studies
(M.B.S.) under the supervision of Dr. Narayan Krishna Pradhan of Shanker Dev
Campus, Putalisadak, Kathmandu, Nepal.
…………………………..
SUMITRA SHRESTHA
Researcher
TU Regd. No: 7-2-478-59-2003
Campus Roll No: 1221/064
Shanker Dev Campus
Putalisadak, Kathmandu
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ACKNOWLEDGEMENT
This thesis entitled on "Customer Satisfaction of Nepal Investment Bank Limited"

has been prepared for the partial fulfillment of the requirement of Master Degree of
Business Studies (M.B.S.) under Faculty of Management, Tribhuvan University.
First of all, I regard as it my dispensation and providence to get an opportunity to work

under admirable supervision of Dr. Narayan Krishna Pradhan of Shanker Dev
Campus. He always motivated me and I had his exclusive consideration and guidance all
the time.
I also my gratitude to all staff of Human Resource Department of Nepal Investment Bank
Limited, Head office Durbar Marg, Kathmandu, Nepal. Whose support me all kind of
banking data, annual bank report and support for taking photographs.
I would like to express my genuine appreciation to the library staff of Shanker Dev
Campus and Tribhuvan University who provided the reference and reading materials
during the thesis period.
I also want to give thanks for the all staff members who kind help, support and
coordination of the research work of Kumari Bank Limited, Chabahil Branch
Kathmandu.
I would like to give my special thanks to my dear husband Ashim Babu Shrestha who
constant encouragement, guidance and moral support, which is truly a wonderful source
of inspiration to complete this thesis successfully. And I also thanks for all my family
members, my parents, brothers, sisters, and all my friends for their assistance, timely
encouragement in every step of this thesis work.
Finally, before I end this writing, I would like to expand my words of appreciation to
those who are directly and indirectly involved in the completion of this thesis.
Thank You!
………………………….
SUMITRA SHRESTHA
Shanker Dev Campus
Putalisadak, Kathmandu
September, 2012
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ABBREVIATIONS
% Percentage
& And
ABBS Any Branch Banking Service
AD Anno Domine
ADB Agriculture Development Bank
AGM Annual General Meeting
ALICO American Life Insurance Corporation
ATM Automatic Teller Machine
BOK Bank of Kathmandu
BS Bikram Sambat
CEO Chief Executive Officer
CRM Customer Relationship Management
E-banking Electronic Banking
EBL Everest Bank Limited
ESA E-zee Student Account
GT Guarantee
HBL Himalayan Bank Limited
i.e. That is
IDC Industrial Development Center
IT Information Technology
KBL Kumari Bank Limited
LC Letter of Credit
Ltd. Limited
MBS Master of Business Studies
NBL Nepal Bank Limited
NCC Nepal Credit and Commerce Bank Limited
NEPSE Nepal Stock Exchange
NIBL Nepal Investment Bank Limited
NIDC Nepal Industrial Development Corporation
No. Number
NRB Nepal Rastra Bank
NRS Nepali Rupees
POS Point of Sale
PSA Premium Saving Account
RBB Rastiya Banijya Bank
SCBL Standard Chartered Bank Limited
SMS Short Message Service
SSL Secure Sockets Layer
SWOT Strengths Weaknesses Opportunities Threat
T.U. Tribhuvan University
TR Trust Receipt
WWW World Wide Web
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TABLE OF CONTENTS
RECOMMENDATION ....................................................................................................... i
VIVA-VOCE SHEET ......................................................................................................... ii
DECLARATION ............................................................................................................... iii
ACKNOWLEDGEMENT ................................................................................................. iv
ABBREVIATIONS ............................................................................................................ v
TABLE OF CONTENTS ................................................................................................... vi
LIST OF TABLES ........................................................................................................... viii
LIST OF FIGURES ........................................................................................................... ix
CHAPTER: I INTRODUCTION ...................................................................................... 1

1.1 Background of the Study:..................................................................................... 1
1.2 Statement of the Problem: .................................................................................... 4
1.3 Objectives of the Study: ....................................................................................... 5
1.4 Scope of the Study: .............................................................................................. 5
1.5 Research Methodology:........................................................................................ 6
1.6 Source of Information: ......................................................................................... 6
1.7 Data Collection Procedure: .................................................................................. 7
1.8 Study Limitations: ................................................................................................ 7
CHAPTER: II REVIEW OF LITERATURE .................................................................... 8

2.1 Origin of Banking in Nepal: ................................................................................. 8
2.2 The Banking Sector: ............................................................................................. 9
2.3 Development of Banking Industry in Nepal: ....................................................... 9
2.4 Introduction of Commercial Banking in Nepal: ................................................. 11
2.4.1 Function of Commercial Bank: ................................................................... 12
2.5 Introduction of Nepal Investment Bank: ............................................................ 12
2.5.1 Managerial Aspects:.................................................................................... 15
2.5.2 Objectives of NIBL: .................................................................................... 15
2.5.3 Strategic Objectives: ................................................................................... 16
2.5.4 Core Values and Ethical Principles: ........................................................... 16
2.5.5 Branch Network: ......................................................................................... 17
2.5.6 Products and Services Offered: ................................................................... 19
2.6 SWOT Analysis: ................................................................................................ 31
2.7 Future Plan: ........................................................................................................ 32
2.8 Review of related Studies:.................................................................................. 33
CHAPTER: III RESEARCH METHODOLOGY ........................................................... 36

3.1 Introduction: ....................................................................................................... 36
3.2 Research Design: ................................................................................................ 36
3.3 Source of Data: ................................................................................................... 37
3.4 Data Collection Procedures: ............................................................................... 37
3.5 Population and Sample:...................................................................................... 38
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CHAPTER: IV DATA PRESENTATION AND ANALYSIS ....................................... 39
4.1 Introduction: ....................................................................................................... 39
4.2 Customer Satisfaction Survey of NIBL: ............................................................ 40
4.3 Customer Satisfaction Survey Part II: ................................................................ 55
4.3.1 Durbar Marg Head Office ........................................................................... 55
4.3.2 Putalisadak Branch: .................................................................................... 56
4.3.3 New Road Branch: ...................................................................................... 57
4.3.4 Boudha Branch: .......................................................................................... 58
4.4 Major Findings of the Thesis: ............................................................................ 59
CHAPTER: V SUMMARY, CONCLUSION AND RECOMMENDATIONS ............. 60

5.1 Summary: ........................................................................................................... 60
5.2 Conclusion:......................................................................................................... 60
5.3 Recommendations: ............................................................................................. 62
BIBLIOGRAPHY ............................................................................................................. 64
APPENDIX: I ................................................................................................................... 65
APPENDIX: II .................................................................................................................. 69
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LIST OF TABLES
Table: 1 Uses of facilities by the deposit clients............................................................... 40
Table: 2 Uses of facilities by the credit clients ................................................................. 42
Table: 3 Awareness of the facilities .................................................................................. 43
Table: 4 Debit card replaced need to reach to Banks........................................................ 44
Table: 5 Behavior of the Staffs the Customers ................................................................. 45
Table: 6 Staff understands the problem and Queries of the clients .................................. 46
Table: 7 Reason for choosing NIBL (Individual and household) ..................................... 47
Table: 8 Reason for the choice of NIBL (Business/ corporate house-in percent) ............ 49
Table: 9 Other banks dealt with beside NIBL .................................................................. 50
Table: 10 Reason for dealing with other banks ................................................................ 51
Table: 11 Convenience of the location for the automatic teller machine ......................... 52
Table: 12 Recommendation for the ATM location other than those that already exists .. 52
Table: 13 Additional services desired by the clients ........................................................ 53
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LIST OF FIGURES
Figure: 1 Share Holding Structure of NIBL ..................................................................... 14
Figure: 2 Uses of facilities by the deposit clints ............................................................... 41
Figure: 3 Uses of facilities by the credit clients ................................................................ 42
Figure: 4 Debit card replaced the need to go to The Bank ............................................... 44
Figure: 5 Behavior of the staff to the customers ............................................................... 46
Figure: 6 Staff understanding the problem and Queries Of the clients............................. 47
Figure: 7 Reason for choosing NIBL (Individual and household) ................................... 48
Figure: 8 Additional services desired by the clients ......................................................... 54
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CHAPTER: I
INTRODUCTION
1.1 Background of the Study:

Measuring customer satisfaction is a relatively new concept to many companies. As we
know customers are the major sources from where we maintain our position. Customers
are always right in what they want and how they like to be treated they are the major key.
Companies have recognize that the new global economy has years of continual sales
growth followed by two decades of flattened sales curves have indicated sharp
competitors that their focus must change.
Competitors that are prospering in the new global economy recognize that measuring the
customer satisfaction is the key. Only by doing so they can hold on the customers they
have and understand how to better attract new customers. The competitors who will be
successful recognize that customer satisfaction is a critical strategic weapon that can
bring increased market share and increased profit.
Too many companies rely on outdated and unreliable measures of customer satisfaction.
They listen to sales describing their customers’ states of mind. They track and count the
frequency of complaints. And they watch aging accounts receivable reports, recognizing
that unhappy customers pay as late as possible. While these approaches are not
completely without value, they are no substitute for a valid. Well designed customer
satisfaction-surveying program.
It’s no surprise to find that market leaders differ from the rest of the industry in that
they’re designed to hear the voice of the customer and achieve customer satisfaction:
Defining Customer Satisfaction:

Customer satisfaction is the state of mind that customers have about a company when
their expectations have been met or exceeded over the lifetime of the product or service.
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The achievement of customer satisfaction leads to company loyalty and product
repurchase. There are some important implications of this definition:
i. Because customer satisfaction is a subjective, non-quantitative state, measurement
won’t be exact and will require sampling and statistical analysis.
ii. Customer satisfaction measurement must be undertaking of the gap between
customer expectations and attribute performance perceptions.
iii. There should be some connection between customer satisfaction measurement
and bottom-line result.
Each industry could add to this list according to the nature of the business and the
specific relationship with the customer. Customer satisfaction measurement variables will
differ depending on what type of satisfaction is being researched. For example,
manufacturers typically desire on-time delivery and adherence to specifications. So
measures of satisfaction taken by suppliers should include these critical variables. And
for the banking industries customer satisfaction will be depending upon the services
provided by the bank with the competence and according to serve the needs of the
customers.
Introduction of Nepal Investment Bank:

Nepal Investment Bank Limited previously Nepal Indosuez Bank Ltd. was established in
1986 as a joint venture between Nepalese and French partners. The French partner
(holding 50percent of the capital on NIBL) was credit Agricola Indosuez, a subsidiary of
one of the largest banking group in the world. With the collaboration of foreign
technology and investment the bank is established to provide the banking service in the
different parts in the country. It was registered in the company act 2021 B.S and Banijya
act 2031 on Magh 6, 2042 B.S At Udhyog and Banijya Ministry it was registered.
There was a contract made between Rastriya Banijya Bank. Rastriya Beema Sanstha and
foreign investor Credit Agricola Indosuez forms France. In the contract it was stated that
for the 10 years from the starting of the bank. Mr. Credit Agricola Indosuez would handle
the management.

The name of the bank has been changed to Nepal Investment Bank Ltd. upon approval of
bank’s Annual General Meeting. NIBL, which is managed by a team of experienced
bankers and professionals having proven track records, can offer customer what they are
looking for. It is sure that the customer choice of the bank will be guided, among other
things, by its reliability and professionalism. The later is reflected by the fact that the
Banker of the London-based Financial Times Group has awarded “THE BANK OF THE
YEAR” 2003, 2005, 2008 and 2010 as well. This very prestigious award is the first
occasion that a 100 percent Nepali managed bank has won this award.
Customer Value and Satisfaction:

Modern marketing is a customer-oriented, integrated marketing and goal-oriented
philosophy of business. The philosophy assumes that all the planning and operation
should be customer-oriented i.e. the organization and its employees should first focus on
determining customer needs and wants. In order to satisfy their needs and wants, all
marketing activities should be coordinated in a coherent or marketing consistent way.
And the marketer should try to earn profit only after the customers are satisfied. Through
it is very difficult talk for the marketers, if they want log run survival and achieve long
run goal, they should follow this principle (Philip Kotler, 2003)
Understanding Differing Customer Attitudes:

The most basic objective of a customer satisfaction-survey program is to generate valid
and consistent customer feedback (i.e., to receive the voice of the customer, which can
then be used to initiate strategies that will retain customers and thus protect the most
valuable corporate asset i.e. loyal customer).
As it’s determined what needs to be measured and how the data related to loyalty and
repurchase, it becomes important to examine the mind-set of customers the instant they
are required to make a pre-purchase (or repurchase) decision. Surveying these decisions
leads to measures of customer loyalty. In general, the customer’s pre-purchase mind-set
will fall in to one of three categories, rejection (will avoid purchasing if at all possible),
acceptance (satisfied, but will shop for a better deal) and or preference (delighted and
may even purchase at a higher price).

This is highly subjective system that customers themselves apply to their decision is
based primarily even purchase at a higher price).
This highly subjective system that customers themselves apply to their decisions based
primarily on input from two sources:
i. The customers’ own experiences each time they experience a product or
service Deciding whether that experience is great, neutral or terrible. These
are known as “moments of truth.”
ii. The experiences of other customers each time they hear something about a
company, whether it’s great, neutral or terrible. This is known as “word of
mouth.”
Obviously, the goal of every company should be develop customers with a preference
attitude (when given a choice, will choose the company), but it takes continuous
customer experience management, which means customer satisfaction measurement, to
get there and even effort to stay there.
1.2 Statement of the Problem:

Though banking system is making much progress, the progress has been set up with the
problems and hindrance. The major problem in our country is people have lack of
banking habits. Many people are under poverty line and are not literate that is why people
are not conscious about the banking system and don’t know the importance of banking.
There is lack of good customer caring facility due to which they feel better not to follow
banking system.
Customer satisfaction means serving people with their requirements and making them
satisfy. So if the customers are not satisfied, it can be said that the bank cannot be
satisfied. Being one of the service industry banks should believes that we are always
there to provide you better service whenever they need and how ever they want.
Customers are always right in this industry so bank should believe that not for the profit
for the better satisfaction we are here.
Source for the research questions for this study are:

1) What kind of service made them choose NIBL?
2) How can exist client are retained?
3) How are they aware with the service provided by the bank?
4) Are the customer facilitate with the bank’s facilities?
5) And to address the difficulties facing by the clients of NIBL?
1.3 Objectives of the Study:

The MBS program has incorporated two year program with a view to develop student
skill in object-oriented business management, capable of understanding and solving real
life business related problems. It helps to develop managerial skills and to generate new
ideas to test particular problems.
The main objective of this research is to explain Customer Service provided NIBL and to
analyze the level of customer satisfaction. The objectives of this study are as follows:
i. The first objective of the study is to identify different types of services provided
by the bank.
ii. To gain the first hand knowledge of the customer satisfaction and perception for
the practical environment.
iii. To find current level of customer satisfaction provided by the bank for different
services it provides.
iv. To identify the reasons from customer for selecting NIBL and learn about the
bank as it is related to customer.
The thesis basically focuses on the Customer Service provided by different department of
NIBL and tries to provide a glimpse of the level of customer satisfaction.
1.4 Scope of the Study:

The study will be helpful to the student of business studies to know how much the
academic knowledge and principles are utilized in practice. To explore the above stated
research question, explorative approach and observatory approach has been used.
Different facts and figures are also represented in different types of tables and diagrams
like bar and pie diagrams. To identify their perception about the bank and whether they
are satisfied services provided by the bank.

The study has made an attempt to assess the mind of the customers and understand what
their choice of bank depends on, what a bank can do to attract new customer and retain its
existing customers are also an important concern. This helps the company to know what
the current position in the market in providing customer satisfaction.
1.5 Research Methodology:
The Study Approach

The study is purely based on the explorative design finding the answer of research
question. The variable used in this study is as follows:
i. Utilization of services.
ii. Awareness of facilities by the customers on NIBL.
iii. Behavior of the staffs.
Different questionnaire were been prepared using these variables and 100 respondents
were selected randomly from all the branches to fill up the questionnaire. The explorative
research was conducted to get the information about the perception of the customers and
how they feel about the facilities provide by the bank. The research is based on
“Customer Satisfaction”.
1.6 Source of Information:

Primary source of information were used in the study. Data collected through the survey
were the main source of information to analyze the customer rating of NIBL. Besides
that, literature review and secondary data from the bank are used for further analysis of
the bank competitive strength and weakness.
Primary Data:
i. Interview
ii. Visiting and viewing the bank

Secondary Data:
i. NIBL Annual report 2002- 2003 and 2003-2011
ii. Different books and reports
1.7 Data Collection Procedure:

Most of the data collection procedure was by the distribution and collection of the form
of the structured questionnaire to sample respondents. Secondary data were collected
from the bank and from the annual report of NIBL. For primary data, field visits were
also made to the respondents (specially corporate or business clients of the bank) with the
help of appointment fixed by the staffs in marketing department of the bank. According
to convenience and judgmental approach respondents were selected for detail questions
together with a small interview session. In addition, heads and staffs of almost all the
departments were interviewed for further analysis and data collection.
1.8 Study Limitations:

Although this research is prepared with lots of effort and hard work, it has certain
limitation. The time factor was the major concerned problem for the research. The
limitations of this thesis are as follows:
1. First concerns the sample size. Due to time limit the sample had to be limited to a
size of 100. This sample corresponds to a very small size of NIBL’s customers. It
therefore important to take in to account that the sample survey conducted might
not reflect the perception of NIBL’s clients.
2. Second, the client whom the survey was conducted is limited to different
branches.
3. So it is possible that those branches which were including in this report may not
be the voice of the entire customer in totality. In several instance the bank was
reluctant to provide comprehensive data.

CHAPTER: II
REVIEW OF LITERATURE
2.1 Origin of Banking in Nepal:

Banking can be traced back to the 14th century in Europe as people began to keep their
valuable articles, capitals and gold and silver with the Jewish capitalists in their locker to
keep them safe from theft and robbery etc. the word bank has been derived from the
Italian word “Bancus” or “Banque” which means those benches on which the Italian
Jewish businessman used to sit and run their business. The modern banking however,
originated from Europe, Italy in 17th Century with the set up of the bank of Venice.
Similar to other countries in the world, goldsmiths, merchants, and money lenders are
considered the ancient bankers of Nepal. The establishment of Tejarath Adda in B.S.
1933 which provided loan services to the public but did not accept deposits was the
platform for the institutional development of modern banking in Nepal.
The modern banking era started in Nepal in the true sense after Nepal Bank Limited, the
first commercial bank was incorporated in B.S 1994 with joint ownership of the
government and the general public. Nepal Rastra Bank was set up as the Central Bank in
2013 B.S. under the Nepal Rastra Bank Act 2012 B.S after 19 years since the
establishment of the first commercial bank. After the establishment of NRB, Nepal
experienced a systematic development of the financial system. In order to enhance the
integrated and speedy development of the country made possible only through
competitive banking services, Rastra Banijya Bank, a fully state owned commercial bank
was incepted in the year 1966.
The banking scenario of Nepal has come a long way since the establishment of the first
commercial bank. The ranges of the functions have increased so are their number. There
are now 31 commercial banks, 87 development banks, and 79 finance companies as per
the statistics of NRB published on 2011 July. Out of 87 development banks only 12

development banks have their central offices in Kathmandu. All these institutions are
actively providing a wide variety of services to fulfill the needs of the general people.
2.2 The Banking Sector:

Banking sector plays an important role in the economic development of the country.
Commercial banks are one of the vital aspects of this sector, which deals in the process of
channel sing the available resources in the needed sector. It therefore acts as an
intermediary between the deficit and surplus group of the financial resources.
Financial system contains two components viz. depository and non-depository financial
institutions. Commercial banks and finance companies are the examples of the depository
institutions where as Employee Provident Fund, Development Banks, Insurance
Companies, etc. are the examples of non-depository financial institutions. The study in
this report is concerned with the depository financial institutions i.e. NIBL Financial
institutions play an important role in the proper functioning of the economy. These
institutions act as an intermediary between the individuals who lend and borrow financial
instruments. These institutions make the flow of investment easier.
2.3 Development of Banking Industry in Nepal:

Like other countries goldsmiths, merchants and moneylenders were the ancient bankers
of Nepal. Tejarath Adda established during the tenure of the then Prime Minister
Ranoddip Singh (1933 B.S) was the first step towards the institutional development of
banking in Nepal. Tejarath Adda did not collect deposits from the public but gave loans
to employees and public against the bullion.
Banking in modern sense started with the inception of Nepal bank limited (NBL) on
1994/7/30 B.S. Nepal bank limited had a Herculean responsibility of attracting people
toward banking sector from pre-dominant moneylenders net and of expanding banking
services. Being a commercial bank, it was natural that NBL paid more attention to profit
generating business and preferred opening branches at urban centers.

Government however had onus of stretching banking services to the nook and corner of
the country and also managing financial system in a proper way. Thus, Nepal Rastra
Bank (NRB) was set up on B.S. 2013.01.14 as a central bank under Nepal Rastra Bank
act 2012 B.S. Since then, it has been functioning as the government's bank and has
contributed to the growth of financial sector. The major challenge before NRB today is to
ensure the robust health of financial institutions. Accordingly, NRB has been trying to
change them and has introduced a host of prudential measures to safeguard the interest of
the public. NRB is yet to do a lot to prove them efficient supervisors. NRB really requires
strengthening their policymaking, supervision and inspection mechanism.
Integrated and speedy development of the country is possible only when competitive
banking service reaches nooks and corners of the country. Keeping this in mind,
government set up Rastriya Banijya Bank (RBB) in B.S.2022/10/10 as a fully
government owned commercial bank.
As the name suggests, commercial banks are to carry out commercial transaction only.
But commercial banks had to carry out the functions of all types of financial institutions.
Hence, industrial development center (IDC) was set up in 2013 B.S. for industrial
development. In 2016 B.S. IDC was converted to Nepal Industrial Development
Corporation (NIDC). Similarly, Agricultural Development Bank (ADB) was established
in 2024/10/07 B.S. to provide finance for agricultural produces so that introducing
modern agricultural techniques could enhance agricultural productivity. Moreover,
security exchange center was renamed Nepal stock exchange in 1990. NEPSE opened its
trading floor on January 13, 1994.
With the establishment of RBB and ADB, banking service spread to both the urban and
rural areas. NRB also gave incentive to NBL to expand their branches to rural areas. This
helped the common people reduce their burden of paying higher rate of interest to
moneylenders and absolved them from kowtowing before moneylenders. It is natural
expectations of customers which keep on increasing. Once they got banking services,
they were expecting improvement and efficiency. However, excess political and
bureaucratic interference and absence of modern managerial concept in these institutions

was hurdle in this regard. Banking service to the satisfaction of customers was a far cry.
The inception of Nepal Arab Bank Ltd. (renamed as Nabil Bank Ltd. on January 1, 2002
A.D.) on 2041/03/29 B.S. (July12, 1984 A.D.) as the first joint venture bank to be a
milestone in the history of banking. Nabil Bank Ltd. gave a new ray of hope to the
sluggish financial sector.
The very marketing concept of Nabil Bank forced the other bank in operation to be more
customers oriented and led the influx of commercial banks. Having observed the success
of Nabil Bank based on marketing concept and also because of liberal economic policy
adopted by the successive governments, following commercial banks came into being.
The Share holding structure comprises of
i. A group of companies 50 percent of capital
ii. Rastriya Banijya Bank holding 15 percent of the capital
iii. Rastriya Beema Sansthan holding 15 percent of the capital
iv. General public holding 20 percent of the capital.
2.4 Introduction of Commercial Banking in Nepal:

According to Commercial Bank Act 2031, section 2(a) “Commercial bank is a financial
institution that operates currency exchanges, money transactions, accepts deposits,
advances loan and performs other commercial transactions which is not specifically
established with the objectives of cooperatives, agricultural, industrial or any other such
kind of specified purpose.”
Commercial bank is an institution authorized to provide a verity of financial services,

including consumer and business loans (generally short term), checking services, credit
cards and saving accounts. The concept of banking system was introduced in Nepal with
the establishment of Nepal Bank Ltd. in 1937. The financial scenario has changed with
introduction of joint venture banks in 1984. The domestic banks of Nepal, Nepal Bank
Ltd. and Rastriya Banijya Bank could no longer hold monopoly. The number of
commercial banks has been increasing so is the investment volume and opportunity in
various sectors that extends to agriculture, industry, commercial and social sectors.

As financial intermediary, the commercial banks also play an important role as
implementing body for central bank. The monetary structure involves analysis of the
behavior of banking system. The variation in the size and composition of bank assets play
important role in transmitting the influence of monetary policy to the economy. The
composition of bank portfolio, such as, reserve, investment and lending lead the money
supply to vary.
2.4.1 Function of Commercial Bank:

Commercial banks are profit-oriented banks. It provides services to public and maximizes
the profit whereas central bank regulates the function of commercial bank with the
banking polices made to mobilize the national economy.
Following are the functions of commercial banks:

• To accept deposits.
• To provide loan and advances
• To provide general utility functions.
• To provide oversees trading services.
• To provide information and other services.
• To provide investments facility.
• To provide remittance facility.
2.5 Introduction of Nepal Investment Bank:

Nepal Investment Bank Limited previously Nepal Indosuez Bank Ltd. was established in
1986 as a joint venture between Nepalese and French partners. The French partner
(holding 50 percent of the capital on NIBL) was credit Agricola Indosuez, a subsidiary of
one of the largest banking group in the world. With the collaboration of foreign
technology and investment the bank is established to provide the banking service in the
different parts in the country. It was registered in the company act 2021 B.S. and Banijya
act 2031 on Magh 6, 2042 B.S. At Udhyog and Banijya Ministry it was registered.

(Photo: Nepal Investment Bank Head Office Darbar Marg Kathmandu)
There was a contract made between Rastriya Banijya Bank. Rastriya Beema Sanstha and
foreign investor Credit Agricola Indosuez forms France. In the contract it was stated that
for the 10 years from the starting of the bank. Mr. Credit Agricola Indosuez would handle
the management.
The name of the bank has been changed to Nepal Investment Bank Ltd. upon approval of
bank’s Annual General Meeting. NIBL, which is managed by a team of experienced
bankers and professionals having proven track records, can offer customer what they are
looking for. It is sure that the customer choice of the bank will be guided, among other
things, by its reliability and professionalism. The later is reflected by the fact that the
Banker of the London-based Financial Times Group has awarded “THE BANK OF THE
YEAR” 2003, 2005, 2008 and 2010 as well. This very prestigious award is the first
occasion that a 100 percent Nepali managed bank has won this award.

Figure: 1
Share Holding Structure of NIBL
Organized Institutions
20%
Rastriya Banijya Bank
50%
Rastriya Beema
15% Sansthan
15% General Public
The bank is listed as a company in the Nepal Stock Exchange. A team of experienced
bankers manages the bank and professionals headed are Mr. Jyoti Prakash Pandey who is
the Chief Executive Officer (CEO) of the Bank. The bank has worldwide network that
enables the performance of international trade and business with efficiently and promptly.
Hence the bank’s slogan “THE NEPALI BANK WITH THE GLOBAL CONNECTION”
can be regarded very true.

2.5.1 Managerial Aspects:
ORGANIZATION CHART OF NIBL
Source: NIBL Website
2.5.2 Objectives of NIBL:

The objectives of NIBL are as follows:
i. To become a leading bank of the country by providing premium product and
services and then ensuring attractive and substantial return to shareholders.
ii. To become the preferred provider of quality financial services in the country.
iii. To become the bank of first choice.
iv. To ensure handsome and steady return on investment.
v. To provide banking services with difference. To respond to all banking needs
courteously and co efficiently.
vi. To promote productivity through sustainable benefits.
vii. To become a responsible national institution.
viii. To bridge the gap between savers and borrowers efficiently and effective

VISION:
i. To be the most preferred provider of financial service in Nepal
ii. To be among the top 3 banks in Nepal
MISSION:
i. Local expertise rendering world-class service
ii. Techno savvy
iii. Customer oriented quality service
iv. Diversified innovative products and services
v. Visionary and professional management in partnership with competent and
committed staff
vi. Sound financial health with good profitability
2.5.3 Strategic Objectives:

The strategic objectives are as follows:
i. To develop customer oriented service culture with special emphasis on
customer care and convenience
ii. To increase the market share by following the growth strategy
iii. To develop products & services that attracts the targeted customer.
iv. To maintain the high quality assets portfolio to achieve strong and sustainable
returns to continuously build shareholder’s value.
2.5.4 Core Values and Ethical Principles:

Our core value tells us our customers and the communities we serve, who we really are;
what we are about; and the principles by which we pledge to conduct business. In
essence, we believe that success can only be achieved by true core values and principles.
1. Customer focus
2. Quality
3. Honesty and integrity
4. Belief I our people
5. Teamwork
6. Good corporate governance

7. Corporate social responsibility.
2.5.5 Branch Network:

The total 41 branches network are as follows:
1. KATHMANDU HEAD OFFICE

Durbar Marg, P.O. Box 3412
Tel: 4228229, 4242530 (DISA)
Fax: 977-1-4226349, 4228927
Swift: NIBL NP KT
2. SEEPADOLE BRANCH 3. BIRGUNJ BRANCH
Suryabinayak, Bhaktapur Adarshanagar, P.O. Box 101
Tel: 6615617, 6612832 Tel (051) 523327, 525277
Fax: 6616617 Fax: (051) 525297, 534271
4. PULCHOWK BRANCH 5. BANEPA BRANCH
Pulchowk, Lalitpur Banepa, Kavre
Tel: 5010188, 5010042 Tel: (011) 664315,662401
Fax: 5010142 Fax: (011) 662402
6. JEETPUR BRANCH 7. NEWROAD BRANCH
Jeetpur, Bara Newroad, Kathmandu
Tel: (053) 520297 Tel: 4242858, 4230374
Fax: (053) 520877 Fax: 4227050
8. BIRATNAGAR BRANCH 9. BUTWAL BRANCH
Golcha Chowk, Biratnagar Traffic Chowk, Butwal
Tel: (021) 534523, 534524, Tel: (071) 549991, 549992,
534525 549993
Fax: (021) 534526 Fax: (071) 549888
10. BHAIRAHAWA BRANCH 11. POKHARA BRANCH
Maitri Road, Bhairahawa Chiple Dunga,Pokhara
Tel: (071) 526991, 526992 Tel: (061) 538919, 539276
Fax: (071) 526990 Fax: (061) 538920
13. NARAYANGARH
12. PUTALISADAK BRANCH BRANCH
Putalisadak, Kathmandu Pulchowk, Narayangarh
Tel: 4445302, 4445303 Tel: (056) 571921,571922,
Fax: 4445304 571923, 571924
Fax: (056) 571925
15. NEPALGUNJ
14. JANAKPUR BRANCH
BRANCH
Mills Area, Janakpur
Dhamboji, Nepalgunj
Tel: (041) 527331
Tel: (081) 525978,525682
Fax: (041) 527332
Fax: (081) 521664
16. THAMEL BRANCH 17. KALIMATI BRANCH
Chaksibari, Thamel Kalimati Chowk, Kalimati
Tel: 4218431,4218434, Tel: 4672493,4672494

4218485,4218486 4672495,4672548
Fax: 4218434 Fax: 4272612
19. BATTISPUTALI
18. BIRTAMOD BRANCH
BRANCH
Traffic Chowk, Birtamod
Battisputali, Kathmandu
Tel:(023) 543810,543811
Tel: 4471690,4471790
Fax: (023)543815
Fax: 4470202
21. GONGABU BRANCH
20. DHANGADI BRANCH
Gongabu Chowk,
Main Road, Dhangadi
Kathmandu
Tel:(091) 523620,523706
Tel: 4365318,4365077
Fax: (091) 524090
Fax: 4365302
22. SURKHET BRANCH 23. JUMLA BRANCH
Neta Chowk, Surkhet Khalang Bazaar, Jumla
Tel: (083) 524330, 524331 Tel: (087) 520132
Fax: 524332 Fax: 520304
24. BOUDHA BRANCH 25. HETAUDA BRANCH
Boudha, Kathmandu Bank Road, Hetauda
Tel: 4480121,4480122 Tel: (057) 526001, 525946
Fax: 4480123 Fax: (057) 526005
26. PALPA BRANCH 27. LUKLA BRANCH
Tansen,Palpa Chaurikharka, Lukla
Tel: (075) 520832,520833 Tel:(038) 550120
Fax:(075)-520891 Fax: (038) 550220
28. NAYA BANESHWOR 29. DHUMBARAHI
BRANCH BRANCH
Naya Baneshwor, Kathmandu Pipalbot Chowk, Kathmandu
Tel:4785529,4782289,4782520 Tel: 4009006, 4009007
Fax: 4785537 Fax: 4009009
30. BHOTAHITI BRANCH 31. TULSIPUR BRANCH
Bhotahiti, Kathmandu Tulsipur, Dang
Tel: 4230797, 4230788 Tel:(082)521613,521614
Fax: 4230771 Fax: 521615
32. TRIPURESHWOR
33. DAMAULI BRANCH
BRANCH
Safasadak, Damouli
Tripureshwor, Kathmandu
Tel:(065) 562500,562600
Tel: 4259780, 4259980
Fax: (065) 562700
Fax: 4260324
34. KRISHNANAGAR
BRANCH 35. GAIGHAT BRANCH
Krishnanagar, Kapilvastu Gaighat, Udayapur
Tel: (076) 520764, 520765, Tel: (035) 420952, 420953
520766 Fax: (035) 420954
Fax: (076) 520354
36. LAZIMPAT BRANCH 37. PARSA BRANCH

Lazimpat, Kathmandu Parsa, Chitwan
Tel:4005058, 4005069, 4005068
Tel: (056) 583623, 583624
Fax:4005065 Fax: (056) 583625
39. LALBANDHI
38. MAHARAJGUNJ BRANCH
BRANCH
Maharajgunj, Kathmandu
Lalbandhi, Sarlahi
Tel:4016151, 4016152
Tel: (046) 501583, 501584
Fax:4016155
Fax:(046) 501585
40. LAGANKHEL BRANCH 41. WALING BRANCH
Lagankhel, Lalitpur Waling, Syangja
Tel: 5552980 Tel: (063) 440573, 440574
Fax: 5552990 Fax: (063) 440575
2.5.6 Products and Services Offered:

Deposit
Saving Account
NIBL offers the following Saving Services & Products:
Normal Saving Account Keta Keti Bachat Khata
Social Deposit Account LOTUS Saving
E-Zee Saving account E-Zee Student Account (ESA)
NIBL Savings Bonanza

Afnai Bachat Khata
Bank accepts deposits from its customers through various types of deposits. Personal
customers generally have saving, current, fixed and call accounts with the bank while
business customers generally have call and current accounts.
Bank generally does not provide interest in current account whereas interest in saving,
fixed and call accounts depend upon nature of deposit and bank policies.

SAVING ACCOUNT:
A. Individual account:
1. Personal NPR Account (for Nepalese citizen)
2. Joint NPR Account (for Nepalese citizen)
3. Personal NPR account (for Indian citizen)
4. Personal NPR and FC account (for Indian National)
5. Joint NPR account (for foreign National)
B. Business Account:
1. NPR Account of Company (Registered in Nepal)
2. Account of Clubs, societies and association (NPR)
3. Proprietorship Account (NPR)
4. Account of Partnership (NPR)
FIXED ACCOUNT:
NIBL has a policy to accept fixed deposit for only 1 & 2 years. In this account, NIBL is
providing two types of interest that is a prime for big clients and interest for other client
called interest for others.
For 1 year and above interest
Prime: 5 percent others: 4.50 percent
CURRENT ACCOUNT:
Current account facility is provided for any firm that has been established under company
Act 2054 B.S. partnership Act 2020 B.S. And Sole proprietorship Act 2014 B.S.
Features:
Minimum balance: Rs. 1000
Visa Electron Debit Card (if sole proprietorship)
Unlimited withdrawal
Tele-Banking

E-Banking:
The e-banking service allows the customer to avail online banking transaction from any
part of the world. With the change in technology, Nepal Investment Bank Ltd, more than
ever, felt the need for banking convenience for their clients. Customer can now access
and have full control over your accounts 24 hours 7 days a week. For e-banking the
customers will have to go to NIBL web site, www.nibl.com.np. This facility is secure and
comes to all absolutely free of charge.
Features of e- banking:
Enquiry: this feature of e-banking you enquire about the following information
Account information: to see general information of account balance, rate of interest
Account statement: give information on transaction details.
Tax statement: give information on taxes that have been both calculated and posted.
Interest statement: shows the amount on which the interest has been calculated and the
interest that has been either calculated or posted.
Client details: give the information client’s contact information details.
LC outstanding: this option allows user to see Letter of credit (LC) outstanding report
and LC Statement.
GT outstanding: this option allows user to see guarantee (GT) outstanding report.
TR outstanding: this option allows user to see trust receipt (TR) outstanding report
User history: this option allows you to see user’s activity history.
Request: using this feature following requests can be made to the bank:
Cheque paid: place an order for desired number of cheque pads.
L/C opening: fill the L/C opening from to expedite L/C opening process.
Draft Application: send a request for draft.
Telex Transfer: send a request for draft
Cashier’s cheque: send a request for cashier’s cheque
Act Now: this feature includes the following services

Balance transfer: to make on-line transfer from your one account to another.
Stop cheque: to make sure that bank disqualifies that particular cheque.
Withdrawal notice; pre notification to the bank for withdrawal of a substantial amount

Good for payment: to request the bank to certify particular cheque issued
Utility payment: to pay various bills such as electricity, internet, school online.
Message: using this facility you can have a two way communication with the bank.
Send message: this feature allows you to send message to bank.
Get message: this feature allows customer to receive message from bank
Utilities: using this facility you can manage your login and maintain users under you
Change password: this option allows you to change your password.
Create new user: this option allow you new user if you are a corporate user
Edit drop user: this option allows you to edit/delete user if you are a corporate user.
Security question: this option allows you additional security parameters.
Advantages of e-banking:
1. Real time banking: Nepal Investment Bank Ltd. e-banking service is anytime,
anywhere, real time and online banking
2. Security: Nepal Investment Bank Ltd. E-banking service brings together a
combination of industry-approved security technologies to protect data for the Bank
and for you. If features password-controlled system entry a VeriSign-issued Digital
ID for the bank’s server, Secure Sockets Layer (SSL)
3. Time out feature: once you have logged into the e-banking a session can last as
long as 10 minutes. After the time has elapsed, the system will logout requiring you
to sign on again. This feature id for your safety and protection. If you were to leave
your computer for any reason while still logged into the e-banking, this feature will
allow only a short period of time to elapse for an unwanted person to access your
account information.
4. Easy to setup your banking account: if you are an existing Nepal Investment
Bank Ltd. Customer with any account, simply visit our nearest branch and fill the
form for e-banking services. This information is necessary to set up your account
and assign you a username and temporary password. If you do not currently have
any account at NIBL you must first establish an account relationship with us. For
that, you must stop into any branch office to open an account

5. Easy to signing in: once you are at login screen you need to enter your customer
code and password. Please remember that the customer code is always in capital
letter; you must enter the temporary password and will be asked to change the
password in first login.
ATM Services:
NIBL provides ATM services to their customer, which is open 24 hours a day, 7 days a
week, and 365 days in a year. This service provided by the bank help the customer draw
fast cash from the various ATM machines that have been placed in various parts of the
country. The bank earns income through issue and renewals of ATM cards for its
customers. There are 69 total ATM around the Nepal provided by the bank. Largest ATM
networks and Nearest ATM networks in Commercial Bank in Nepal.

Loan and Advances:
Bank plays a major role in the creation of credit by providing loans and advances to the
customers. NIBL provides various types of loans such as:
i. Loan to company/firm
ii. Loans against cash (account) Pledge
iii. Loans against Pledge and shares.
iv. Loans against security of authorization to deduct own or third party’s
account
v. Housing loan
vi. Vehicle loan
vii. Working capital
viii. Overdraft
ix. Export credit
x. Trust receipt
The bank has recently introduced home loan as its new product under which employed or
self-employed persons or pensioners within the age bracket of 25 to 65 years with regular
and stable source of income and adequate saving are qualified. In case of home loan, it
requires the proposed site to be accessible with at least 9 feet motor able road and should
fall under the bank's criteria for collateral mortgage. The primary focuses of this product
are the professionals like doctors, engineers, lawyers, and chartered accountants as well
as self employed businessman. The bank provides Home loan for three basic purposes,
viz.
i. Purchase
ii. Construction
iii. Extension
The bank provides loan for almost every vehicles, especially for personal use, and
vehicles brand but the bank has special scheme for Hyundai and Perouda cars under
which they provide loan to the customer in a comparatively lower interest rate. The bank
finances maximum up to 70 and 80 percentage of the total cost in home and hire purchase
loan respectively.

Credit Card:
NIBL has always provided innovative, enhanced and world-class products and services to
the customer. The bank offers Visa credit card. Introduction of credit cards has enabled
banks to earn income on the issue and renewals of credit card. These new services offered
by the bank have helped it to increase its other income from previous year therefore
increasing the overall income of the bank.
E-ZEE SAVING ACCOUNT:

Monthly premium draws
NPR 50000: 1 person
NPR 10,000: 2 persons
NPR 1,000: 10 persons
Features:
2.75 percent Interest on daily available balance
Minimum balance: NPR 50,000
No key deposit amount for lockers
Unlimited withdrawals
E-banking
Visa electron debit card
Tele banking
Any branch banking
Accidental insurance
Privilege counter
Utility Payment Services:

NIBL Utility Payment service is the easiest and smartest way to manage and pay your
utility bills through banks counter, e-Banking and ATM anytime, anywhere without
standing in queues. Make all your bill payments from the convenience of your home or
office.
NIBL has tied up with major organizations across the country to facilitate payment of
bills for Utilities (Schools, Insurance, Telephone, Internet and Mobile).

Nepal Telecom:
1. NTC Post Paid Mobile Bills

2. NTC Land Line Bills
3. Purchase of NTC Prepaid (Recharge) PINs (Purchase through e-Banking and ATM)
NCELL: (Payment through bank’s counter, e-Banking and Mobile Banking)
NCELL Post Paid Mobile Bills
School Bill Payments: (Payment through bank’s counter and e-Banking)
1. Triyog High School
2. Shuvatara School
3. Maria Montessori
4. Ullens School
5. Little Angels’ School
6. Rato Bangala School
School Bill Payments: (Payment through bank’s counter)
1. St. Mary's Higher Secondary School
2. Kaasthamandap Vidyalaya
3. Galaxy Public School
4. Birendra Sainik Awasiya Mahavidyala
5. Rupys International School
6. Dav Sushil Kedia Vishwa Bharati
7. Gyanendra Sainik Awasiya Madhyamik Vidhyalaya - Pokhara
8. KU-High School
9. Saraswati Boarding Higher Secondary School
10. Olympia World School

11. Rupy’s International School
12. Ankur Vidyashram
13. Nepal Montessori Pvt. Ltd.
Internet Service Providers: (Payment through e-Banking )

1. Worldlink Communications
2. Websurfer Nepal
3. Mercantile Communications
4. SUBISU Cablenet
Insurance Companies: (Payment through bank’s counter and e-Banking)
1. ALICO (American Life Insurance Corporation)
PREMIER BANKING:
Services
An executive lounge in the main office first floor to cater all your banking needs.
Service of tea, coffee, cold drinks.
A dedicated account officer exclusively for the cell.
Free consultancy services of professional’s experts on insurance, taxation, travel, & tours
and legal matters through prior of utility bills.
Free services for the payment of utility bills.
Benefits:
i. Issuance of drafts and traveler cheque for free of charge
ii. No key deposit for lockers
iii. Free issuance of visa gold credit card & visa electron Debit card
iv. Any branch banking services (ABBS) for free
v. Celebration of your birthday with a card and cake
NTC’S MOBILE BILL PAYMENT:

Nepal telecommunication corporation mobile phone owners can make payments of their
mobile bills through the bank in the following modes.

Mode of Payments:
Anyone of the following can be used to pay your NTC mobile Bill
1. Full or partial payment by cash
Customer needs to fill up designated Deposit Receipt for the cash payment
2. Full or partial payment by account transfer (for NIBL customer only)
Customer needs to fill up designated Deposit Receipt for the payment
3. Standing instruction: for timely payment, customer may sign Standing instruction
document to carry out payment through standing instruction. However, partial payment is
not allowed for such payment mode. Hence, customers are advised to maintain sufficient
minimum balance to carry out such payment.
This service is available only for Head Office account holders for long time being
Through Payment:
Customer can pay their mobile bills from ATMs by going to the utilities options and
specifying the amount.
To be availed this service the customer needs to fill a form available in front desk.
Through e-banking:
Mobile bill can be send using our utility payment facility in e-banking services. All you
need to do is sign in and pay from anywhere at any time.
VISA ELECTRON CARD:

A debit card is a payment card, which enables a customer with the option of making
purchases at merchant locations as well as cash withdrawal from ATMs with accesst their
bank account.
NIBL provides Visa Electron Card in Nepal, thereby providing their valued customers
with further flexibility in payment.
365 Days Banking:

NIBL has been providing 365 days banking to its customers for the following purposes.
• Deposit and withdrawals
• Purchase and sale of foreign currency
• Acceptance of clearing cheque and cheque for collection

• Issuance of draft
E-ZEE STUDENT ACCOUNT:

Eligibility Features
Valid student ID card Minimum balance NPR 2000
Citizenship certificate 2.5 percent interest per annum
3pp size photo Visa electron card
NPR 200 for annual membership
Any branch banking free
Call deposit:
This is the facility provided by NIBL under NRB supervision for large corporation like
Nepal Telecom, Nepal Electricity Authority and Nepal Oil Corporation and so on.
Generally overnight interest is given on this account.
Any branch banking service:
NIBL provide any branch banking services where customers can conduct their business
or make transactions from any of the branches of NIBL with a charge of RS. 250 on per
transaction despite of where they have opened their account.
NIBL Remit:
NIBL Remit is one of its latest products, which facilitates transfer of fund from almost all
over the world, especially from all the parts of the Middle East, in most of the major
currencies. The funds can be transferred through the correspondent bank arrangement
with various financial institutions in Middle East to facilitate efficient fund transfer.
Furthermore, funds can also be transferred within the country to the following cities in
Nepal directly, and the bank provides service of transferring funds to other cities on
Nepal, via its total correspondents or branches.
Apart from these services there are some other innovative measures too: accidental death
insurance is one example of it. It covers individual account holders. The insurance benefit
payable to the nominee of the account holder is a lump sum equivalent to four- time the

minimum balance in the account during the month of the event, subject to a maximum of
500,000 Rupees.
PSA Scheme (Premium Saving Account Scheme) provides incentives for all account
holders with balance of more than 50,000. PSA holders are served through a special
counter in all branches. The participants of this scheme can receive Himalayan Bank
Gold Card, ATM card along with tele-banking facility, free of charge. The customers
under this scheme are given preference in providing self-deposit lockers. They also enjoy
20 percent wavier in rental on the small size lockers. Interest on all accounts as such is
calculated on daily basis. PSA holders maintaining average balance of over 100,000 are
eligible to take part in lucky draw under a premium prize and several other prizes are
given every month.
The bank currently offers following types of deposits schemes to the customers:
1. Current account
2. Saving account
3. Short term deposit account. (7 days to 90 days)
4. Fixed term deposit. (Above 90 days)
The bank accepts and maintains these types of deposit accounts in the following
currencies.
1. Nepali Rupees
2. US Dollars
3. Pound Sterling
4. Deutsche Mark
5. Japanese Yen
6. Swiss France
Any customer complying with the general rule for account opening and fulfilling the
document requirement can open an account.

Tele-Branch Banking:
To provide more prompt and efficient services to customers, Himalayan Bank has been
pioneering in instituting tele-banking services. Dialing a pre-specified telephone number
client can have information on:
i. Make balance and statement inquiries.

ii. Order statement and cheque book
iii. Get information on foreign exchange, interest rates etc.
2.6 SWOT Analysis:
STRENGTHS:
i. Global and national network
ii. Pioneer of various new services like any branch banking
iii. Bank has overall good reputation
iv. Convenient location
v. Ample parking space
vi. 365 days banking with extended hours for services.
vii. Attraction to middle level client with minimum deposit of NPR. 2500
viii. Only bank in the vicinity with accepting VISA debit cards
ix. Training given from time to time
WEAKNESSES:
i. Backward in advertising and promoting the bank
ii. Slow credit processing
iii. Differentiation of clients
iv. Low interest rate s compared to new banks
v. Mismatch in the number of staffs in various departments
vi. Inefficient employee appraisal system
vii. Inter department communication problem
viii. Relatively newer and inexperience front line staffs
ix. Lack of human resource

x. Lower deposit interest rate/higher commission as compared to banks in this
area.
xi. Absence of attractive schemes for retail lending
OPPORTUNITIES:
i. Bank surrounded by middle level retail stores, wholesales and distribution
outlets for a strong middle class client based.
ii. Bank surrounded by training institution and agencies for international colleges
abroad providing scope for TC, Draft transaction.
iii. Scope for extension in the operation area
iv. Bringing new services and technology
v. Consumer financing
vi. Exploring new market
vii. Recruitment of specialized banking expert
THREAT:
i. Competition as most of the bank has their point of representation in this vicinity.
ii. High maintenance cost of the bank
iii. Government instability
iv. No support (deposit) from foreign banks.
v. Global economy downturn
vi. Over saturation of the financial sector
2.7 Future Plan:

• New products and services: the bank is in the process of rolling out a host of new
products and services to cater to needs and aspiration of our valued customers and
also to differentiate itself from its competitors.
• Extensive branch network: in order to reach out to the on banked, NIBL will
continue to expand its branch network in the current fiscal year also. By the end
of calendar year 2010, the bank expects to have a total of 50 branches country
wide.

• Debit/Credit Cards: The bank is looking at expanding the cards market
extensively in order to capitalize on the opportunity now and remain a strong
player in the market. A lot of effort is being put in the expansion of members in
the Bank’s in increasing its customer base and revenue. The bank has until now
concentrated in the Debit card market but it will slowly also expand its Credit
card market.
• Greater ATM Penetration: In line with the bank’s strategy to extend coverage to
our customers, the bank plans to install more ATMs both inside and outside the
valley.
• IT Enable Services: The bank aims to provide the latest value added services to its
customers through the use of cutting edge technology. To meet this end, the bank
is working on a number of projects like SMS/Mobile banking, mobile top up
through SMS banking, various bill payment and e-commerce projects including
public switch Telephone Network bill payment, CDMA Recharge PIN purchase,
e-Ticketing and school bill payment through e banking.
• Remittance: The bank plans to increase the number of remittance disbursement
agents in Nepal to 250 the end of current fiscal year. Further, the bank plans to
depute additional staff representatives in Saudi Arabia and Malaysia and increase
the number of our representatives in Qatar and UAE.
• Other business: Increase in competition in the banking industry has made banks
look for additional areas for investments to continue to keep up the revenue
stream. NIBL is contemplating commencing insurance and micro finance
business, which is expected to help us in improving our revenue streams and
shrinking margins.
2.8 Review of related Studies:

Review of related studies plays vital role for writing thesis. In order to make
comprehensive, some of the most nearest thesis related to customer satisfaction from
different points of view re conducted and reviewed .review of literature means reviewing
research studies of relevant proposition in the related area of the study so that all the past
studies, their conclusion and deficiencies may be known and further research can be

conducted. This sort of activities helps to identify the research problem as well as
determine the methodology for the study.
Anisha Pokhrel (2010) research on “Performance Evaluation and Customer Satisfaction

of NIBL”. Thesis is based on both primary and secondary data. Financial tools are
applied for the study. The researchers have even analyzed the secondary data to find out
the performance evaluation of the bank in terms of customer satisfaction. Generally bank
provides less interest to its depositors and invests by charging more interest to different.
The branch has the largest number of representation all over the nation and even provides
ABBS facility.
Prem Lamgade (2007) conducted research on “Customer Relationship Management in

e-business”. The main focus of the study was to identify the objective of CRM in e-
business organization, to examine the management of the Customer relationship in e-
business organization and to evaluate the effectives of customer relationship management
in e-business organization. The data for the research was collected through the websites
and from the structured questions. Based on the research done, here is the
recommendation given by Prem Lamgade. The researcher has mentioned that, as CRM is
new term, limited amount of research focusing on how CRM objectives can be described
in e-business and CRM exist, this study provides the foundation from which further
studies can be concluded.
Wagle (2000) in his thesis entitled- “A Study on the Trends of Saving, Investment and
Capital Formation in Nepal” has indicated that capital fund has significant and positive
relation with both deposit and loans. That means increase or decrease in capital fund
increases deposits as well as loans. However the degrees of relationship were different.
But relation of capital with profit was positive and insignificant. That indicated less of
increase or decrease in profit is due to capital fund or capital fund is least responsible in
changing profit. Banks seem to be more dependent on the deposits in the form of savings
which leads to higher end use of funds and higher profits. A bank can achieve such

objectives only though optimum customer satisfaction and a broader customer base by
reaching out to the masses in the rural and deprived sectors.
Mahato in his thesis paper, “A Comparative study of the financial performance of

NABIL and NIBL”, concludes that NABIL pays more attention towards the attainment of
national objective through participation in the task of economic development with liberal
attitude towards the government and being more responsive to the national priorities like
branch expansion more attention in the satisfaction of the customers after delivering
services of different natures. So from the point of view of customers, shareholders and
government, NABIL is performing much better than NIBL.

CHAPTER: III
RESEARCH METHODOLOGY
3.1 Introduction:
During the preparation different methods have been used for data collection which
basically includes collection of primary data as well as secondary data to some extent.
Personal interview and consultation with concerned staffs and customers are made for the
reliability and practicality of the data by making different types of questions i.e. open
ended, yes/no, choosing the best one from sampling method around 100 customers.
Nepal Rastra Bank (NRB), yearly AGM, different brochures published from the bank.
For the proper analysis of the study and the company’s customer service procedures,
secondary data were collected from past records of NIBL. Collected data are entered into
appropriate tables for easy interpretations of the study.
Primary data is acquired through the set of questionnaire filled by the regular customers
of the NIBL. The general conception and opinion as per the researcher’s observation has
obtaining data.
The study conducted and presented has come out to be a descriptive one. Information is
derived from the secondary data like past record of bank its official website, brochures
etc. so the overall study can be viewed as a blend of descriptive, explanatory as well as
quantitative and qualitative study.
3.2 Research Design:

Research design is the plan, structure and strategy of investment so as to obtain answer to
research questions and to control variances. To achieve the objectives of this study,
descriptive and analytical research design has been used.

“A research design is the arrangement of condition for the collection for collection and
analysis of data that aims to combine relevance with economy in procedure”. (Claire
Selltiz, 1962:50)
The research purpose and question of this study indicate that this is primary descriptive
but also explanatory and partly explanatory. Before conduction of research, research
design makes easy to identify the problem to report writing with help of collection,
analysis and interpretation of data.
3.3 Source of Data:

During the preparation of research different methods have been used for the data
collection which includes collection of both primary and secondary data. Primary data
includes questionnaire, personal interview with the respondents and customers which are
made for the reliability and practicality of the data by making different types of questions
i.e. open ended, yes/no, choosing the best one to sampling method around 100 customers.
All the secondary data obtained from various sources are complied, processed and
tabulated in the time series as per need and objectives. Various data and information are
collected from the magazines and other published and unpublished reports and document
from various sources.
3.4 Data Collection Procedures:

Data has been collected by using two sources i.e. primary and secondary as depicted
below.
i. Primary Data
On this part of data collection, structured questionnaire method has been used. Different
types of customer like walking customer, who visits the bank just for the purpose of
deposit and withdrawal of money, who come bank regular for the purpose of operating
their account for the business purpose. Customers were given the schedule of
questionnaire to fill up during the period of transaction.

ii. Secondary Data
It is an indispensable source of data for literature reviewing. Various abstract from

websites, textbook, publication related to deposits, credits, and customer were consulted
and concerned people as well. So it helps in understanding the current trend of deposit
and attitude of customers towards NIBL along with the returns desired by them. In this
way, the literature part will be prepared.
3.5 Population and Sample:

Among different commercial banks are operating in Nepal, NIBL has been selected as a
sample for the present study. To fulfill the requirement of thesis objectives, among the
clients of its bank, only 100 persons are selected for the primary data collection and from
the secondary data only. The sample is selected on the basis of simple random sample. It
is impossible to collect data from each and every potential unit so small number of units,
a sample is chosen to represent the relevant attribute of the whole set of unit.

CHAPTER: IV
DATA PRESENTATION AND ANALYSIS
4.1 Introduction:
To explore the research question, explorative approach and observatory approach has
been used. Different facts and figure are also represented in different types of charts and
diagram like bar and pie diagram.
Unofficial interview with the customer have been made in all the braches of NIBL to
identify their perception about the bank and whether they are satisfied with services
provided by the bank.
The study had made an attempt to assess the mind of the customers and understand what
their choice of a bank depends on, what a bank can do to attract new customers and retain
its existing customers.
Most of the data collection procedure was by the distributions and the collection of the
form of the structured questionnaire to the sample respondents. 100 respondent were
selected randomly from all the branches and are been presented in tabular form.
Secondary data were collected from the bank and from the annual report of NIBL. For
primary data, field visit were also made to the respondents (specially corporate or
business clients of the bank) with the help of appointments fixed by the staffs in
marketing department of the bank. According to convenience and judgmental approach
respondents were selected for detail questions, together with a small interview session. In
addition, head and staffs of almost all the departments were interviewed for further
analysis and data collection.

4.2 Customer Satisfaction Survey of NIBL:
User of facilities availing from NIBL
Uses of facilities by the deposit clients
What this table indicates that out of the 100 people sampled, maximum of 32 percent
deposit holders were in the saving account and the minimum were the of 3 percent were
in the other (call deposits etc). This is because saving account holder can also be availing
the locker facilities of the bank or other deposits services.
Table: 1
Uses of facilities by the deposit clients
Description No. Percent (%)
a) Saving account 32 32
b) E-zee saving account 20 20
c) Current account 26 25
d) Fixed account 12 12
e) Lockers 7 7
f) Other please specify 3 3
Total 100 100
Source: Field Survey

Figure: 2
Uses of facilities by the deposit clints
35
a) Saving account
30
b) E-zee saving
25 account
c) Current account
20
d) Fixed account
15
e) Lockers
10
f) Other please
5 specify
Total
0
No. %
Uses of facilities by the credit clients:

As indicated in the table, the services most requested by the clients are overdrafts; around
30 percent of the respondent has utilized this service. On the other hand, the service least
used by the clients in NIBL is consumer finance and long-term loan. Due to the high risk
associated with long-term loan, the bank usually does not provide this service easily. The
reason for this low usage of consumer finance is because the bank has not pursued
consumer finance as aggressive as it has for other services. Retail department however
has slowly started to get momentum in the ban, and one of the banks primary goals for
this year is to place heavy emphasis on consumer finance, particularly, vehicle and hire
purchase loan. Here again it is important to note that the services are not mutually
exclusive; many of the clients responded positive on several credit services. For instance
several customers who used letter of credit facilities have almost certainly availed short-
term loan from the bank as well

Table: 2
Uses of facilities by the credit clients
a) Overdraft 30 30
b) Short Term loan 23 23
c) Long Term Loan 16 16
d) Letter Of Credit 11 11
e) Loan against Gold & Silver 7 7
f) Consumer Finance 10 10
g) Outstanding Loan 3 3
Total 100 100
Figure: 3
Uses of facilities by the credit clients

Awareness of the facilities:
As indicated in the table, every respondent voted positively as far as ATMs is concerned.
That is 100percent of the clients were aware of the ATM services provided by the bank.
Close behind 96percent is aware of the visa-electron debit card. Note: NIBL is the bank
that has been offering debit card, which is even valid to India. The respondents were least
aware of the credit card offering by the bank. The reason; credit card service has recently
been initiated in the bank (less than 1 year). Beside that, unlike debit cards that bank has
not been aggressively pursuing market for credit card holders, limiting its supply, mainly
because of the additional risk associated with the credit cards.
Since, the respondents were aware of the most of the service and products offering by the
bank, the conclusion from this table NIBL has done good job of marketing itself.
Table: 3
Awareness of the facilities
ATM 100 365 days banking 52
Tele-banking 55 Late evening counter 55
Deposits/withdrawal 100 Payment of mobile bill 30
Consumer Finance 50 Visa-Electron Debit 96

Card
Loan against gold & 40 Credit card 17
silver
Lockers 60

Table: 4
Debit card replaced need to reach to Banks
Yes 90 90
No 10 10
Total: 100 100
Most of the respondents were convenience that the debit card has replaced the need to go
to the banks to make withdrawal and deposits of their money from the bank. From their
concern it saves time. And it is more convenient to withdrawal money from the ATM
machines anywhere in need. But there are respondent that even denied that Debit card
replaced the need to reach the banks. The reasons: they feel that debit card is not secure.
And there is frequent breakdown of ATM machine and sometimes even it shows the false
balance, which has even not been withdrawal by the clients.
Figure: 4
Debit card replaced the need to go to The Bank
NO
YES

Table: 5
Behavior of the Staffs the Customers
Excellent 30 30
Good 42 42
Satisfactory 15 15
Fair 10 10
Poor 3 3
Total 100 100
This has always been the main stream for any organization to cope with this competing
environment behavior of staff. As indicated in the figure that most of the respondents has
chosen the good category for the behavior of the staffs of the bank. This is because the
staffs that are recruited in NIBL are highly trained in their respective fields to provide the
best services to their clients.

Figure: 5
Behavior of the staff to the customers
45
40
35
30
25
20
15
10
5
0
Table: 6
Staff understands the problem and Queries of the clients
Always 27 27
Sometimes 46 46
Rarely 20 20
Never 7 7
Total 100 100
Most of the clients are satisfied with the staff understanding. But there are some who are
not satisfied with the understanding of the staffs. The reason for this is: high pressure,
over load jobs and due to frustration of the staffs towards the management and the some
of the clients of NIBL.

Figure: 6
Staff understanding the problem and Queries Of the clients
50
40
30 Always
Sometimes
20 Rarely
Never
10
0
Percent %
Table: 7
Reason for choosing NIBL (Individual and household)

Safety 15 15
Interest rate 5 5
Accessibility 15 15
Creditability 10 10
Better Facilities 15 15
Visa-Electron Debit Card 20 20
Attitude of the staffs 10 10
Services 5 5
Others please specify 5 5
Total 100 100

Figure: 7
Reason for choosing NIBL (Individual and household)
20
18
Safety
16
Interest rate
14 Accessibility
12 Creditability
10 Better Facilities
8 Visa-Electron Debit Card
6 Attitude of the staffs
4 Services
Others please specify
2
0
As we can see on the figure (15 percent) has lead the chart because most of the client
choose to deposit their money for safety. Then in interest rate, accessibility, etc. visa
electron debit card has also been the main stream of the client to choose the bank. Due to
low cost associated with the NIBL debit card and provides better facilities. Customers are
forced to choose NIBL.

Table: 8
Reason for the choice of NIBL (Business/corporate house-in percent)
Safety 10 10
Interest rate 5 5
Accessibility 10 10
Creditability 20 20
Better Facilities 15 15
Visa-Electron Debit Card 10 10
Attitude of the staffs 15 15
Services 10 10
Others Please Specify 5 5
Total 100 100
As evident in the diagram, business and corporate clients are most concerned with the
credit availability and the willingness of the bank to extend credit. That is in turn
followed by the financial strength of the bank, that is, its creditability. Safety is the
another important concern. These clients appear to be least concerned with accessibility.
One probable reason could be: the banks often welcome business clients, who bring in
new business.

Table: 9
Other banks dealt with beside NIBL
Banks No. Percent (%)
SCBL 14 14
NABIL 13 13
HBL 20 20
EBL 6 16
BOK 10 10
NBL 11 11
NBB 10 10
NCC 7 7
KBL 9 9
TOTAL 100 100
As per this table, NIBL faces the most competition with Himalayan Bank Limited (HBL);
which is closely followed by Standard Chartered Bank Limited and Nabil bank limited.
Other banks such as bank of Katmandu, Nepal Bangladesh Bank, Nepal Bank Limited,
Kumari Bank Limited are the almost in the same way when it comes to completion with
Nepal Investment Bank. The reason why NIBL face most completion from SCBL,
NABIL, and HBL is because these banks have been firmly established in the Nepalese
financial market with a strong reputation as good bank. Moreover these banks are joint
venture banks with successful banks operating abroad. NIBL on the other hand is an all
Nepali management bank. Plus, when compared to those banks, NIBL has recently been
established. However, NIBL has grown steadily in terms of its strength and growth. In

2002 after taken over by new management, NIBL then known as Indosuez bank ranked
11th among in the country; however with a period of 1 year it achieved the banker of the
year and currently stands on the top position. A remarkable achievement indeed!
Table: 10
Reason for dealing with other banks
Effective personalize service 10 10
Location 20 20
Better facilities 15 15
Interest rates 18 18
Creditability 22 22
Attitude of staffs 15 15
Total 100 100
As evident in the table, client seems to place a prime importance on the creditability of
the bank. This is consistent with the results in the previous table. That is SCBL, NIBL
and HBL have a considerable strong reputation as being trustworthy and reliable.
Location of the bank and accessibility to services appear to be the second most important
concern for clients. Not explicit in the table but implied by a lot of the clients in the third
reason; according to 20 percent of the clients a reason why they are dealing with other
banks is because of earlier relations and obligation. More specially, they were dealing
with the other banks prior to NIBL and just because they established new relations with
NIBL after take over by the new management. Moreover, some of the clients also cited
that multiple relations with different banks are a means of risks diversification.

Table: 11
Convenience of the location for the automatic teller machine
No 36 36
Yes 64 64
Total 100 100
The bank currently has ATM in many locations like Durbar Marg, Thamel, Pulchok,
Putalisadak, New road, Boudha, Battisputali, Kapan, Thali, Lazimpat, Battisputali,
Maharajgunj and in Bhatbhatini in the Kathmandu valley. The respondents were also
asked to indicate if they thought the choice of the bank in the selection of location for the
ATMs were convenient. Similarly 64 percent of the respondents voted ‘yes’ and 36 voted
‘no’. Many respondents gave recommendation, as the bank must have the provision of
giving the facilities of ATMs even in New Road and in many other places.
Table: 12
Recommendation for the ATM location other than those that already exists
New Road 44 44
Patan 18 18
New Baneshwor 25 25
Maharajgunj 13 13
Total 100 100

A lot of client predominantly seemed to want the set up of ATM in New Road, the heart
of shopping center in Kathmandu. Other than those clients had requested for new ATMs
in New Baneshwor, Maharajgunj, Patan because of which bank has provided many more
ATM in the valley.
NOTE: In the coming year NIBL plans on opening 1000 P-O-S terminals in
different part of the valley.
Table: 13
Additional services desired by the clients
Travel service 22 22
Income tax consultation 18 18
Insurance 15 15
Payments of utility bills 45 45
Total 100 100

Figure: 8
Additional services desired by the clients
100
Travel service
80
Income tax
60 consultation
Insurance
40
Payments of utility
20 bills
Total
0
No.
This question was specially asked on the behalf of the Bank. Out of 100 clients 45
percent would want the bank to pay the utility bills (electricity, water, telephone etc.) on
their behalf in return for a minimal service fee. Although the bank has not ventured into
this area, it has begun the payment of NTC mobile bills.
Close behind in insurance 15 percent of the respondents would like the bank to provide
insurance service. For it E-ZEE account holders the bank has already been providing
accidental insurance of Rs.50,000.
In addition to these services, around 35 percent of the clients have requested for the
internet banking; 45 percent for education loans (most of the respondent in this category
was students) and 20 percent had requested for the credit card.

4.3 Customer Satisfaction Survey Part II:
4.3.1 Durbar Marg Head Office
Total number of respondent were 54

Descriptions Very Satisfied Average Improvement Total
satisfied required
% N % N % N % N % N
Greet/smile 56 30 39 21 4 2 1 1 100 54
Thank you 37 20 26 14 19 10 18 10 100 54
Approach 56 30 35 19 9 5 0 0 100 54
Competency 46 25 47 25 3 2 4 2 100 54
Speed 56 30 26 14 9 5 9 5 100 54
Space & 67 36 29 14 4 2 0 2 100 54
service
Information 46 25 33 15 11 6 10 5 100 54
Overall 46 25 39 21 15 8 0 0 100 54
customer
service
According to our research we found that maximum respondents (customers) are very
satisfied with the services provided by the Head office. 18 percent of the respondent said
that thanks giving should be improved in the Head office. Maximum of 67 percent
respondent were satisfied with the spaces and services provided by the Head office
Durbar Marg Branch.
Suggestion from the respondents:

Increase the number of the counters so that the customers need not stand in a
queue or they should be entertained while standing in a queue.

Here 10 percent of the total respondent said that NIBL (H/O) should provide
prompt service to them.
Out of the total respondents 4 percent said that NIBL should increase the number
of ATM machine.
4.3.2 Putalisadak Branch:
Total numbers of respondents were 31

satisfied required
% N % N % N % N % N
Greet/smile 16 5 5 16 29 9 3 1 100 31
Thank you 23 7 52 13 29 9 6 2 100 31
Approach 29 9 42 14 19 6 6 2 100 31
Competency 23 7 45 17 19 6 3 1 100 31
Speed 26 8 55 10 26 8 16 5 100 31
Space & 35 11 32 12 23 7 3 1 100 31
service
Information 23 7 39 12 35 11 3 1 100 31
Overall 29 9 39 12 29 9 3 1 100 31
customer
service
From our research, it shows that the customers of Putalisadak branch are satisfied with
the service provided by the bank. The table shows that 16 percent of the respondents said
that the processing speed of the staffs is to be improved. Whereas 35 percent of the
respondents were satisfied with the space and service of the bank and bank staffs.

Suggestions from the respondent:
Above 35 percent of the total respondents said that there should be faster services
provided and 16percent of the total respondents said the number of the counters
should be increased so that they don’t have to spend long hours in the queue of
the peak days like (Monday/Friday).
So, 3 percent of the respondents suggested that NIBL should not change while
withdrawing cash in another branches and having an account in another branch.
To Illustrate:
Let’s say Mr. X is holding an account in Pokhara branch of NIBL. Now he has to
withdraw the amount from Putalisadak branch of NIBL, then the bank will charge Rs.
100 per transaction. So NIBL should not charge service charge as it says ABBS (Any
Branch Banking Service).
4.3.3 New Road Branch:

Total numbers of respondents were 42
satisfied required
% N % N % N % N % N
Greet/smile 43 18 40 17 17 7 0 0 100 42
Thank you 26 11 31 13 19 8 24 10 100 42
Approach 40 17 36 15 19 8 5 2 100 42
Competency 21 9 43 18 26 11 10 4 100 42
Speed 21 9 21 9 27 11 31 13 100 42
Space & 17 7 38 16 19 8 26 11 100 42
service
Information 21 9 58 24 21 9 0 0 100 42
Overall 17 7 38 16 19 8 26 11 100 42
customer
service

In the new road branch the respondent (customer) were satisfied with services provided
by the bank the respondent said that the speed of the service given to the customer should
be improved. So, that the customer will get prompt service. 43 percent of the respondents
were satisfied with the great smile and 11 percent of the respondents were not satisfied
with the overall customer services provided by new road branch.
Suggestion from the respondent:

1. It shows that 31 percent of the respondent said that NIBL (n/r) should provide faster
services to the customer and to increase the number of the customers.
2. About 18 percent of the respondent said that the current space is not enough to
provide quality service especially in the pick days (Monday/Friday).
3. They should increase the staffs so faster services.
4.3.4 Boudha Branch:
Total numbers of respondents were 44:

satisfied required
% N % N % N % N % N
Greet/smile 30 13 64 28 4 1 2 2 100 44
Thank you 27 12 41 18 25 11 7 3 100 44
Approach 32 14 48 21 16 7 4 2 100 44
Competency 20 9 59 26 16 7 5 2 100 44
Speed 20 9 39 17 34 15 7 3 100 44
Space & 17 7 39 17 30 14 14 6 100 44
service
Information 20 9 50 22 20 9 10 4 100 44
Overall 8 8 52 23 25 11 5 2 100 44
customer
service

In Boudha Branch the customer are less satisfied with the services provided by the NIBL
comparing with the other branches of NIBL.
Suggestion from the respondent:

Here 4 percent of the respondent said that they didn’t get their debit card on time
so, they suggest providing them debit card on time.
About 18 percent of the respondent said that in Boudha Branch NIBL should add
the counter so that the bank can provide faster service to their customers.
Similarly 5 percent of the respondents thought that there is a need of computer in
the reception desk.
Whereas 7 percent of the respondent said that NIBL should add ATM machine in
various places. In Boudha branch they have ATM machine but the customer
frequently face technical problem. So they should maintain the ATM machine
properly.
4.4 Major Findings of the Thesis:

The major findings from the questionnaires are presented as follows:
1. Most of the customers are satisfied with the services provided by the bank.
2. At the same time, they would be additionally benefited if the bank could provide
several other non-banking services such payment of utility bills, insurance etc.
3. There is potential for earning substantial revenue from educational loan.
4. Beside good services positive attitude of the bank staffs is also important for
clients. Most of the clients are satisfied with the attitude of people working in the
bank.
5. People are not yet aware of the certain banking services provide by NIBL, like
locker, credit card, and payments of NTC mobile. So the bank should
aggressively market these services.
6. More ATM counters should be extended within as well as outside the valley.

CHAPTER: V
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary:
After the Nepali management took over, a major issue was manpower shortage. During
the French management the focus was narrow and limited which called for skilled, but
few employees. Larger numbers of work-people were required to match the growth
intended. At same time, the new management had to ensure that it did not sideline, or
rather, displease the existing employees. In a period of one and half year the increase in
the number has been on the line of more than hundred. Specially, earlier there were 30-35
employees, while now there are around to 300 employees.
The operating cost of NIBL is higher than that of other competitive (excluding SCBL,
NABIL and HBL) the main reason for this is, “we are service oriented”. This explains
another mission of NIBL for the coming year. NIBL is focusing on to achieve a 15
minutes time frame so that the customer does not have to wait longer. This goal is
centered on the idea that the shorter time the customer spends in the bank will make their
attitude positive towards the services of the bank. To achieve this very goal, the bank has
spent a lot of its financial resources in expanding branches (NIBL has total of 41
branches including the head office) and 69 ATM Networks to bring the customer closer
to the bank.
5.2 Conclusion:
When the Nepali management had taken over, the interest rates offered on different
deposits accounts were higher than those offered by the competing banks. The interest
rates on the bank deposits have decreased lately. In spite of this, the bank client’s base
has grown steadily with every passing year.

Another conclusion that can be drawn upon is that, the three main factors individuals and
households consider when choosing a bank are, convenience, and Accessibility. A
business client, on the other hand, tends to consider the credit availability with the bank.
During the French tenure in the bank, the management approach was largely
conservative, and that is providing to be an asset for the new management currently. The
reason, due to its conservative and cautious approach, the bank level of Non Performing
Assets (NPA) was very low.
The bank is willing to take high risks; NIBL has taken wider and varied approach.
Consumer base approach by providing new and sophisticated product/services expanding
its braches specifically for the ease of customers as a result of which its competitive
position among all the banks in the country has accelerated to a top spot compared to
eleventh spot it occupied during the French management. Most spectacularly all this has
been achieved in a span of less than three to four years.
The management team of NIBL has much to do with its success. With experience and
qualified team member at the various levels of hierarchy, not just at the top, NIBL has
been able to ensure that decision is efficient, effective and in a timely manner. This in
turn ensures consumers do not have to do what they dislike the most wait! This has been
an important concern for the management because they realize that in a lot of other banks
in the country, a customer is often made to wait for a considerably long time before any
decisions are to finalize. For instance, in NIBL costumers rarely have to stand on long
queues to get their requirement serviced as implemented 15 minute banking.
The other reason for NIBL’s achievement is because of its intense focus on growth and
service. New products and services regarding from Debit card, Credit card, Loan against
Gold & Silver, NTC’s mobile bill payments, have been implemented.
NIBL has largest ATM network in Nepal, having added 9 more ATM, there are 69 banks
ATM networks. ATM machines are located at convenient place to their customer suitable
for every one. Further more, NIBL has provided POS (Point of Sale) terminals in

different shopping center and different places of valley. NIBL has about 25000 users on
e-banking platform giving one of the highest bases of e-banking customers in Nepal.
Bank added a new e-banking light version for access through GPRS/WiFi for mobiles
phones with slower connection. Bank has focusing on e-commerce as one of the major
growth areas. Bank has enabled recharge card option for Nepal Telecom ans WiFi
subscribers of Broadlink Ltd. To carry out top-ups through ATM.
NIBL has been very aggressive in innovating and offering new product and services in
card market. Visa debit card has also been the main stream of the client to choose the
bank. Due to low cost associated with NIBL debit card and provides better facilities,
customer are choosing NIBL. NIBL has expanded 41 branches network located at
convenient places by providing good service in ever steps of banking procedures to their
customer.
According to our research and analysis, it is cleary identified that the bank is been
performing towards the customer satisfaction and contributing to the inflow of new
customer, ensuring retention of the old customers and subsequently bringing about new
business, higher growth and profits.
5.3 Recommendations:
Based on the analysis conducted and the results from the questionnaire, the following
recommendation appears to be:
i. The bank possesses over 1500 lockers, but there are comparatively few lockers
holders currently. Service income from lockers can be significant source of
revenue provided if it is marketed properly. So aggressive advertising for locker
system should be implemented.
ii. Consume finance can be a major source of income. So the bank should give
proper attention to these sectors. Particularly on vehicle loans and hire purchase
loan.
iii. Bank should come up with innovative and better schemes as to attract new
corporate and business houses.

iv. The bank should set up an ATM counter in prime locations such as Patan, New
Baneshwor etc. the bank should extend its POS terminals.
v. The bank should provide services regarding the payments of utility bills in return
for a minimal service fee.
vi. Bank should hire competent staff as to increase the quality of its services. And
maintain good relation with the clients of the bank.
vii. Bank should provide education loan to the student as these aspects is increasing
day by day because of high willingness of the students to study more and due to
high investment in the field of education.
viii. Total number of ATM’s should be increased throughout the country.
ix. The bank should expand its branches to all over the major cities of the country.
x. Bank should provide more facilities to the staffs, job satisfaction, training and
motivation to its staffs.
xi. Bank should also pay attention towards the priority sectors and industrial sectors
to develop economic condition of the country.

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of Management, Shanker Dev Campus, T.U.
Shrestha, S. (2009) A Report Study on Electronic Customer Relationship
Management in Banks (A Case Study of Kumari Bank Ltd. and Nepal
Investment Bank Ltd.). An Unpublished Master Degree Thesis, Faculty of
Management, Shanker Dev Campus, T.U.
Khatry, B.K. (2012) A Report Study on Customer Relationship Management
in Nepalese Banking Sector. (A Case Study of Everest Bank Ltd. and Nepal
Bangladesh Bank Ltd.). An Unpublished Master Degree Thesis, Faculty of
Management, Shanker Dev Campus, T.U.
Dahal, H. P. (2006) A Report Study on Performance Evaluation of Chaudhari
Group for Costomer Satisfiction in Instant Noodle. An Unpublished Master
Degree Thesis, Faculty of Management, Nepal Commerce Campus, T.U.
3. Reports:
Annual Report of Nepal Investment Bank Limited 2010
Annual Report of Nepal Investment Bank Limited 2011
4. Web Sites:
www.nibl.com.np
www.nrb.org.np

APPENDIX: I
Questionnaire
Name: _______________________
Age: ___________ Sex ____________
Account type: __________________________
1. What are the facilities you are availing from the NIBL? (Please tick more than one if
applicable)
For Deposit Clients:
a) Saving account
b) Lotus saving account
c) Current account
d) Fixed account
e) Lockers
f) Call deposit
g) Other please specify
For Credit Clients:

a) Overdraft
b) Short-term loan
c) Long-term loan
d) Letter Of Credit
e) Loan against Gold & Silver
f) Outstanding Loan
g) Consumer Fianance
2) Which of these banking facilities are you aware of?

a) ATM g) 365 days banking
b) Tele-banking h) late evening counter
c) Deposits/withdrawal I) payment of mobile bill
d) Consumer finance j) Visa-electron debit card
e) Loan against gold &silver k) Credit card
f) Lockers
3) How often do you use NIBL’s card?

Always Sometimes Rarely Never
4) Do you think debit card has replaced the need to go to bank?

Yes No
5) If yow were to rate the behavior of the staff towards the customers which category
would you choose?
Excellent Good Satisfactory Fair Poor
6) To what extent do you think the staff understands your problem and queries?
Always Sometimes Rarely Never
7) Why did you choose NIBL? (Please tick more than one if applicable)
a) Safety
b) Interest rate
c) Accessibility

d) Creditability
e) Better facilities
f) Visa-Electron debit card
g) Attitude of the staffs
h) Services
i) Other Please Specify______________________
8) Beside NIBL, which other banks you are dealing with?

a) Standard Chartered Bank Ltd
b) Nabil Bank Ltd
c) Himalayan Bank Ltd
d) Other Please specify ___________________
9) So what are the reasons for dealing with the other banks?
a) Safety
b) Interest rates
c) Accessibility
d) Creditability
e) Better Facilities
f) Visa-Electron Debit card
g) Attitude of the staffs
h) Services
i) Others please specify _________________________
10) Apart from good services what kind of other services do you want from NIBL?
a) Education
b) Credit cards
c) Mobile banking
d) Others please specify __________________________

11) Do you think the location chosen by the NIBL for set up of ATM machines is
appropriate and convenient?
Yes No
12) Which other locations would you recommend for the set up of the ATM’s?
a) ___________________________________
b) ___________________________________
c) ___________________________________
13) Do you want the bank to provide you with these additional services?
a) Travel services (Ticketing/ hotels booking/ foreign currency arrangement)
b) Income tax consultations (personals)
c) Insurance (life & Non-life)
d) Payments of utility bills.

APPENDIX: II
Other banks dealt with beside NIBL.
9 SCBL
14
7 NABIL
HBL
10 13 EBL
BOK
NBL
11
NBB
20
10 NCC
6 KBL
Reason for dealing with other bank
Effective personalize service

15 10
Location
20 Better facilities
Interest rates
22
Creditability
15 Attitude of staffs
18

Additional services desired by the clients.
Travelservice
22
Income tax consultation

45
Insurance
18
Payment of utility bills

15

A Thesis On Customer Satisfaction OF Nepal Investment Bank Limited

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A THESIS ON

In partial fulfillment of the requirements for the degree of

This is to certify that the thesis

Shanker Dev Campus

"Customer Satisfaction of Nepal Investment Bank Limited"

…………………………….. ..………………………….. .……………………………..

(Thesis Supervisior) (Head, Research Department) (Campus Chief)

Property of Shanker Dev Campus 2 i

We have conducted the viva-voce examination of the thesis presented by

"Customer Satisfaction of Nepal Investment Bank Limited"

Head of Research Department:…………………………………

Member (Thesis Supervisor):…………………………...............

Member (External Expert):……………………………………..

Property of Shanker Dev Campus 3 ii

TU Regd. No: 7-2-478-59-2003

Campus Roll No: 1221/064

Shanker Dev Campus

Property of Shanker Dev Campus 4 iii

This thesis entitled on "Customer Satisfaction of Nepal Investment Bank Limited"

First of all, I regard as it my dispensation and providence to get an opportunity to work

Property of Shanker Dev Campus 5 iv

Property of Shanker Dev Campus 6 v

CHAPTER: I INTRODUCTION ...................................................................................... 1

CHAPTER: II REVIEW OF LITERATURE .................................................................... 8

CHAPTER: III RESEARCH METHODOLOGY ........................................................... 36

Property of Shanker Dev Campus 7 vi

CHAPTER: V SUMMARY, CONCLUSION AND RECOMMENDATIONS ............. 60

Property of Shanker Dev Campus 8 vii

Table: 1 Uses of facilities by the deposit clients............................................................... 40

Table: 2 Uses of facilities by the credit clients ................................................................. 42

Table: 3 Awareness of the facilities .................................................................................. 43

Table: 4 Debit card replaced need to reach to Banks........................................................ 44

Table: 5 Behavior of the Staffs the Customers ................................................................. 45

Table: 7 Reason for choosing NIBL (Individual and household) ..................................... 47

Table: 9 Other banks dealt with beside NIBL .................................................................. 50

Table: 10 Reason for dealing with other banks ................................................................ 51

Table: 13 Additional services desired by the clients ........................................................ 53

Property of Shanker Dev Campus 9 viii

Figure: 1 Share Holding Structure of NIBL ..................................................................... 14

Figure: 2 Uses of facilities by the deposit clints ............................................................... 41

Figure: 3 Uses of facilities by the credit clients ................................................................ 42

Figure: 4 Debit card replaced the need to go to The Bank ............................................... 44

Figure: 5 Behavior of the staff to the customers ............................................................... 46

Figure: 6 Staff understanding the problem and Queries Of the clients............................. 47

Figure: 7 Reason for choosing NIBL (Individual and household) ................................... 48

Figure: 8 Additional services desired by the clients ......................................................... 54

Property of Shanker Dev Campus 10 ix

1.1 Background of the Study:

Defining Customer Satisfaction:

Property of Shanker Dev Campus 11 1

Introduction of Nepal Investment Bank:

Property of Shanker Dev Campus 12 2

Customer Value and Satisfaction:

Understanding Differing Customer Attitudes:

Property of Shanker Dev Campus 13 3

1.2 Statement of the Problem:

Property of Shanker Dev Campus 14 4

1.3 Objectives of the Study:

1.4 Scope of the Study:

Property of Shanker Dev Campus 15 5

1.5 Research Methodology:

The Study Approach

1.6 Source of Information: