REPORT

ON

"MIS OF HIMALAYAN BANK LTD. (HBL)"

Submitted By:

Adikshya Maharjan (26352/19)

Anisha Kapali (26354/19)

Apekshya Sthapit (26355/19)

Lasata Shrestha (26366/19)

Priya Gurung (26382/19)

Sanishma Bajracharya (26401/19)

Submitted To:

Faculty of MIS

People’s Campus

In the partial fulfillment of requirement of internal evaluation for the Degree of Bachelor
in Business Administration (BBA)

Tribhuwan University (TU)

Kathmandu, Nepal

December 2021
 ACKNOWLEDGEMENT
This study ‘Information System used in Himalayan Bank Ltd’ has been prepared for
the partial fulfillment of Bachelor’s in Business Administration. We would like to
express our profound gratitude and deep regards to our teacher, mentor and guide Mr.
Roshan Bhattarai for his guidance, advice and continuous encouragement throughout
this project.

We would like to extend our gratitude to Mr. Bigyan B. Sijapati, Head of IT

Department of the Himalayan Bank for his valuable time and information, which has
helped us in completing our task. We would also like to thank our sister Ms. Anishma
Bajracharya for assisting us to contact with IT Head. Finally, we would like to place
our humble honor to the college management for co-operating with us to complete our
project.

Special Thanks,
Group Members

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 APPROVAL SHEET

This is to certify that the report entitled ‘Information System used in Himalayan Bank
Ltd.’ is an academic work submitted by group members namely: Adikshya Maharjan,
Anisha Kapali, Apekshya Sthapit, Lasata Shrestha, Priya Gurung, Sanishma
Bajracharya for the partial fulfillment of requirements of internal evaluation for the
degree of Bachelor’s in Business Administration(BBA) at People’s Campus, affiliated
to Faculty of Management, Tribhuwan University under the guidance and supervision
of course instructor and college management.

………………….. …………………..
Rajendra Raya Roshan Bhattarai
BBA Program Coordinator Faculty of MIS

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 Contents

ACKNOWLEDGEMEN .............................................................................................. i

APPROVAL SHEET ...................................................................................................ii

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

1.1. Introduction of the study ................................................................................. 1

1.2. Objectives of the study .................................................................................... 1

1.3. Methodology of the study ............................................................................... 2

CHAPTER II: ORGANIZATIONAL STUDY ......................................................... 3

2.1. Introduction of the bank .................................................................................. 3

2.2. Information system department ....................................................................... 5

2.3. Information system used in the HBL .............................................................. 6

2.3.1. Human Resource Inventory System (HRIS) ............................................ 6

2.3.2. Core Banking System (CBS) ................................................................... 7

2.4. Types of collaboration tools used in HBL ...................................................... 7

2.5. Ethical and social issues in ISs ........................................................................ 9

2.6. Data management in HBL ............................................................................. 10

2.7. System security tools and techniques used in HBL ...................................... 10

2.8. Information system developments ................................................................ 11

CHAPTER III: CONCLUSION, LESSON LEARNT AND

RECOMMENDATION ............................................................................................. 13

3.1. Conclusion..................................................................................................... 13

3.2. Lesson learnt ................................................................................................. 13

3.3. Recommendations ......................................................................................... 14

Bibliography ...................................................................................................................

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 CHAPTER I: INTRODUCTION

1.1. Introduction of the study

Management Information System is integrated of three components i.e. management,

information and system. We have studied and understood that Management
Information System is the most integral part of today's business processes and system
as it includes a set of elements that stores, selects, processes and retrieves data/
information that has greatly support in analysis & effective decision making
processes. With the objectives of ensuring to gather more detailed information on
implication on MIS in real working world, we have chosen Himalayan Bank Limited.
We have visited Information Technology Department of Himalayan Bank Limited on
December 2, 2021 which is situated at Kamaladi, Kathmandu. This fieldwork study is
conducted at Himalayan Bank Limited to know in depth the implication of MIS at
Himalayan Bank Limited in managing hefty information and details on systems &
processes.

1.2. Objectives of the study

The main objectives of this fieldwork study of Himalayan Bank Limited have been
summarized as follows:
 To know how theories and concepts are applied in practice in the day-to-day
business operation.
 To acquaintance with the practical concept of Management Information System
in financial institution.
 To be well acquainted with ways the information in Himalayan Bank Limited are
being managed through various channels of Management Information System.
 To study, understand and analyze the importance of using of various application/
software in day-to-day management of information.
 To understand the need of the bank to depend upon third party for various
projects and processes.
 To understand the need to focus on capacity management while aiming to
transform the traditional banking approaches to digital banking.

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1.3. Methodology of the study

The study on implementation of MIS in Himalayan Bank Limited has been done
through primary and secondary data.

Primary data

Primary data has been collected through:

 Questionnaire method
Multiple choice questions, dichotomous questions and one-word questions
were developed.
 Interview
Personal interview with Mr. Bigyan B. Sijapati, Head of IT Department of
Himalayan Bank Limited has been conducted wherein Mr. Sijapati has
explained in brief regarding management of information in the Bank.

Secondary data

Secondary data has been collected and compiled from the diverse sources that include
website of the Bank (https://www.himalayanbank.com) and various books and articles
on Management Information System.

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 CHAPTER II: ORGANIZATIONAL STUDY

2.1. Introduction of the bank

Himalayan Bank Limited (HBL) was established in 1993 in joint venture with Habib
Bank Limited of Pakistan. Himalayan Bank Limited is one of the largest and most
reputed private bank of Nepal. It holds a promising history in the banking industry of
Nepal as it is the first bank of Nepal to introduce ATM Cards & Tele Banking
Services. HBL is preferred brand among many Nepalese due to its innovative &
customer centric products and their techniques to manage the experience of its
customers. Despite the tough competition in Nepalese banking sector, HBL has
always been able to maintain a lead in the primary banking activities. Mr. Ashoke SJB
Rana is the Chief Executive Officer of the bank. Mr. Rana with his executive team
has successfully been maintaining the legacy of the bank of being the most preferred
Bank of Nepal.

Mission

The bank's mission is to become preferred provider of quality financial services in the
country. There are two components in the mission of the bank: preferred provider and
quality financial services. Therefore, Team of HBL believes that the mission will be
accomplished only by satisfying these two important components with the customer at
focus. The bank always strives positioning itself in the hearts and minds of the
customers.

Vision

HBL (Himalayan Bank Ltd.) holds of a vision to become a leading bank of the
country by providing premium product and services to the customers, thus ensuring
attractive and substantial returns to the stakeholders of the bank.

Objectives of the bank

To become the bank of first choice is the main objective of the bank.

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Organization structure of the bank

Figure 1: Structure of the organization

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2.2. Information system department

The bank’s information technology resources constitute a valuable asset that needs to
be managed appropriately to ensure their integrity, security, and availability for
business activities. Information system department shall be responsible for
maintaining hardware, software, data storage and networks that comprises overall
infrastructure & system on information management. It enables in implementation of
reliable tools & techniques for better market development, control of risks thereby
supporting in surviving & growing in the changing and competitive market
environment.
Information system department in Himalayan Bank Limited consists of information
system specialist that consists of IS Managers, System Developers, Business Analyst,
Database Administrators and so on. The department is oversight by three leaders i.e.
Chief Knowledge Officer, Chief Technology Officer and Chief Network Officer.
These three leaders further report to Chief Information Officer who shall be
responsible to review accuracy, adequacy, procedures, and effectiveness of entire
mechanism of management & security of information of the Bank.

Figure 2: Information system department of the organization

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2.3. Information system used in the HBL

Bank deals with extremely critical and sensitive information, which is required to be
kept confidential. It is equally important for the bank to pay due attention towards
Internet/ Intranet/ Extranet-related systems, including but not limited to computer/
networking equipment, software, operating systems, storage media, network accounts
providing Electronic Mail, Instant Messaging and Employee Information System. In
addition to this, with the concept of expansion of the banking networks, there come
more responsibilities, strategic planning, and the need for better communication.
Management team is thus required to monitor each activity of every department to
ensure every focuses are being directed towards achievement of its mission, vision
and objectives. These new requirements make it important to have an information
system that uses artificial intelligence to allow employees & management team to
communicate, collaborate, and quickly process transactions. Effective implementation
of Information System shall help the management in making effective decisions and
enhance problem-solving skills.
However, some of the system/applications that were briefly described during our
personal interview session with representatives from HBL have been summarized as
follows:

2.3.1. Human Resource Inventory System (HRIS)

Human Resource Inventory System is the integrated solution platform that supports in
addressing Human Resource related activities in the bank. Use of HRIS largely has
been supporting the bank in managing huge databases related to human resources of
the bank thereby increasing the organizational performances. The system stores a
whole service life cycle of an employee from his/her appointment to the termination
of service.

It includes the information such as personal information, resigned staff information,

service history of employee, document tracking, education history, attendance &
payroll, attendance system & leave management.

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2.3.2. Core Banking System (CBS)

Core banking system is centralized application/ platform where the branches of the
banks are connected to the central host servers that incorporated automation modules
and various online channels such as ATM, ABBS, and Mo-bank under one platform.
There is a central database for bank and transactions are done centrally such as
account onboarding, account opening and transactions processing.

HBL has been using Globus (developed by Temenos) as their core banking software
that has enabled them integrates all branches together enabling them to provide
services like ‘Any Branch Banking Facility’, I-Banking & SMS Banking.

2.4. Types of collaboration tools used in HBL

Collaboration refers to working with others to achieve the shared goals. It focuses on
task and mission accomplishments. It is a way to speed up product development
without losing control or falling behind schedule. Business firms can choose the tools
that fit their business requirement as well as their budget. Some of the widely used
tools in HBL are briefly described below:

Microsoft Teams

Microsoft Teams is one of the mostly used collaboration tools in Himalayan Bank
Limited. As Microsoft Teams is a platform that is appropriate for document sharing
and conducting online meetings, HBL has been using it as the easiest medium for
business communication. Various scopes wherein Microsoft Teams has been used
have been described as follows:

 Online video calling and screen sharing

As briefed by Mr. Sijapati, there are some instances in the bank wherein the
issues in systems/ networks are to be identified and rectified remotely. For
example, issue in branch of Pokhara can easily be resolved from Corporate
Office, Kamaladi. In such instances, Microsoft Team to great extend has been
supporting the IT department as it enables online video call and sharing of
screen.

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  Online Chat Portal
With email IDs group can be created, and chat can be facilitated within the
group in the Team. This facility has facilitated the bank with the easiest and
fastest means of communication within the staffs irrespective of their
geographical locations.
 Document storage in SharePoint
Microsoft Team has facilitated staffs of the bank with a SharePoint Online,
which will contain a default document library folder. All files shared across all
conversations will automatically save to this folder. However, permissions and
security options has been customized for various sensitive information.
 Online Meeting
Microsoft Team is being used in conducting various in-house training and
meetings in the Bank. Even the online meetings with external stakeholders are
also being conducted through Microsoft Teams.

Office 365

Himalayan Bank Limited has been using Office 365 in conducting most of the day to
day activities as the services in Microsoft 365 are connected, enabling enhanced
teamwork that has empowered to work better and faster together, through tools such
as team chat, group emails, as well as the co-authoring and sharing of files. HBL
through Office 365 has been availing the services that includes:
 Microsoft Teams
 Microsoft Word
 Microsoft Excel
 Microsoft Power-point
 Outlook

Benefits of using collaboration tools

 Collaboration gives the firm a competitive advantage by attracting top talent.

 Helps in making effective and efficient decision.
 Maintains close relationship among the employees in the firm.
 Enhances customer relations and services.
 Increase productivity and mainly emphasizes on new creation and innovation.

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  Improves overall performance of the firm
 Assists to bring the product and services faster in the market.

2.5. Ethical and social issues in ISs

Ethics refers to the individual's personal belief about whether a behavior, action or
decision is right or wrong. Ethics differ from people to people.

As the Information technology continues to grow, it continues to have greater impact

on society. Those technologies are revolutionizing the way of gathering, storing, and
manipulating and communication data. Information system raises new ethical
question for both individuals and societies. Major ethical issues aroused in HBL are
listed below:

 Privacy issues

In terms of privacy, CCTV cameras are installed everywhere including the

premises, corridors keeping track of every individual employee. Moreover, e-
attendance system and biometric system are also used in the organization to
record the punctuality and authorization respectively.

 Intellectual property rights

HBL proudly protects its innovation and creativity through patents and copyright.
Moreover, the bank has its own trademark and a separate logo.

 Quality of life

Ethical issues long preceded information technology. Therefore, the quality of

life in Himalayan Bank has always been a top priority. They have the privilege to
sick leave, annual leave, paternity leave, mourning leave and so on. Yearly trips,
gathering programs are also held frequently to freshen the mind.

 System quality

Data validation mechanisms are used to authenticate the data entry. Complete,
consistent and accurate data and information are entered as well as the different
restrictions are used to make system bug-free.

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2.6. Data management in HBL

Bank has defined standard that ensures the integrity and consistency of all critical data
stored in electronic form, such as database, data archives. In order to ensure smooth
and timely recovery of data/ information the following procedures are followed at
data center:

 Primary data center has been defined for critical business applications.
 Secondary server has been kept as stand-by backup. Arrangement has been
made to ensure that secondary server can be upgraded to primary server in a
short period, if required.
 Disaster Recovery Server has been kept in the data center outside Kathmandu
Valley for safe keeping the vital information of business critical applications
and can be set to live within very less amount of time if any disaster occurred
and primary/secondary server go down.

2.7. System security tools and techniques used in HBL

In HBL, there have been few attempts of internal threats, wiretapping, phishing, and
hacking applications and other characteristics of incoming traffic. It has four types
and they are packet filtering, network address translation and application level
gateway.

Moreover, online transaction possesses the possibility of viruses and malware. HBL
recognize that information assets must be protected from unauthorized use, disclosure,
modification, damage and loss because it has a significant impact on the delivery of
services. To overcome from such threats, HBL uses following system security tools
and techniques:

 Authentication

It refers to the ability to know that a person who he/she claims to be. HBL uses
this tool to identify user and verify them. It uses modern techniques like one-time
passcode (OTP) via SMS or email, biometrics to authenticate user.

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  Authorization

Authorization in system security is the process of giving the user permission to

access a specific resource or function. HBL uses authorization to decide full or
partial access rights to resources like database, funds, and other critical
information to get the job done.

 Firewall

The firewall acts like gatekeeper to examine each user's credentials before access
is granted to a network. HBL uses firewall to identify the names, IP addresses,
applications and other characteristics of incoming traffic. It has four types and
they are packet filtering, network address translation and application level
gateway.

 Antivirus and Anti-spyware

HBL uses antivirus software to prevent, detect, and remove malware including
computer viruses, computer worms, spyware and adware. Antispyware is designed
to prevent and detect unwanted spyware program installations and to remove
those programs if installed.
HBL uses Microsoft Endpoint, which is a Microsoft cloud-based management tool
for mobile devices that aims to provide unified endpoint management of both
corporate and BYOD (Bring Your Own Device) equipment in a way that protects
corporate data.

2.8. Information system developments

Information systems development is the process by which some collective work

activity is facilitated by new information-technological means through analysis,
design, implementation, introduction and sustained support, as well as process
management. In terms of software and system development, HBL comprises both
built-in software and outsourced system developments. As per their requirement and
budget planning, HBL juggles between outsourcing and in-house developing.

 In house development
According to the requirement of the bank in the changing business environment,
the team of Information Technology department has been developing various

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applications and system that has been supporting the bank in conducting various
day-to-day activities. There is in-house developed platform in the bank wherein
various notices and information on rules/regulation on conducting the banking
activities. The information on development of new products, amendments in any
existing products and systems, information on any appointment, staff movement,
staff appraisals, staff promotion and resignations are also circulated via in-house
application platform.
 Outsourcing
As communicated, Bank may outsource any or entire IT function to one or more
competing outsourcing agency/service providers depending on the requirement of
the Bank. The decision on selection of outsourcing agency/service provider shall
incorporate assessment of possible risk, experience, technical competence,
financial strength, reputation, performance standards and business continuity
planning adopted by outsourcing agency/service provider. HBL has been various
outsourcing applications that include Core Banking System, Human Resource
Management System, Inventory Management System and many such systems.
The data & regulations of outsourcing applications are being controlled through
Service Level Agreement (SLA). SLA includes but not limited to the service
provider's role, responsibilities, obligations, functions, systems, accountability of
performance and facilities in detail.

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 CHAPTER III: CONCLUSION, LESSON LEARNT AND
RECOMMENDATION

3.1. Conclusion

This study has provided the opportunity of gaining practical knowledge and observing
the real application of theoretical aspects on MIS used in Himalayan Bank Ltd. HBL
is a leading bank, which has been successful to create its own image within the
country. Since many years, HBL has granted several services to employees with the
help of IT. We got to know that HBL has well defined hierarchical structure with
certain objectives and it has been able to accomplish those objectives. Use of IT has
assisted to improve the entire decision making process. Moreover, it is increasing
accessibility and sharing of accurate and high quality information to the final user.
HBL has used many IT related tools and technology for effective and efficient
operation of the bank in today's dynamic world.

3.2. Lesson learnt

A study at Himalayan Bank Limited has enabled us to explore various issues and
subjects pertaining to management of various information, systems and processes
through the modern means of technology. With the completion of this project, we
came to know that the limited theoretical knowledge was expanded with the practical
implementation in financial institution. Addition to the information on IT and its
implication in today's competitive business environment, we learnt the importance of
teamwork, capacity management and the need of strategies in achieving the mission,
vision and objectives of an entity. Some of the important lessons that we have learnt
from study of Information Management System of Himalayan Bank Limited has been
summarized as follows:

 Various security threats and risks associated with the bank and importance of
effective implementation of strategies in troubleshooting those threats and
risks.
 Importance of Information Technology for establishment of a competitive
edge for an organization.
 Role of teamwork and capacity management in achieving the strategic thrust
of an organization.
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  Implication of various software in the real world of work such as MS word,
Excel, PowerPoint & similar other software.
 Various collaboration tools used in HBL
 Made us understand the ethical issues concerning information system used in
HBL

3.3. Recommendations

Based on our study and interview with Chief Information Technology Officer of the
Bank, we have identified some areas/ scope that the Himalayan Bank Ltd. can
consider to make their infrastructure, system and processes on information system
management more robust and effective that shall further support them in
differentiating themselves in today's digitalized and competitive market.

 Digital presence of HBL compared to other peer banks in the market is lower.
For example, number of POS Machine, QR code, ATM Booth is
comparatively lower than other peer banks.

 Capacity building programs and workshops should be conducted on a

periodic basis to ensure that staffs are well acquainted with strategies and
plan of actions related to digital banking and information management.

 HBL is highly dependent upon outsource agents on various digital projects

which in fact is prone to various risks that includes data secrecy. In-house
development of various digital avenues shall be supportive in mitigating
confidentiality risk or Service Level Agreement with an outsource agency can
be done to make the vendor equally accountable for any risks.

 Although HBL is excelling in its competitive environment, it needs to focus

on social aspects such as work life balance, and prioritizing motivation to the
employees.

 In the technological world, many employees lack proper skills and

knowledge on the use of information system. To improve their skills, bank
ought to initiate regular training and development programs and periodic skill
test of the employees must be done.

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 Bank should have built the effective feedback channel so that the bank can
know and make corrections from the valuable suggestions, comments and
feedbacks at marketing activities given by the customers.

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ERP. (2018). Retrieved from http://www.diceus-com.cdn.ampproject.org

Himalayan Bank Ltd. (2021). Focus on Growth.

Himalayan Bank Ltd. (n.d.). Retrieved from http://www.himalayanbank.com

Kenneth c. Laudon, J. P. (n.d.). Management Information Ststem. Pearson India

Education Services.

(n.d.). In S. P. Sunil Sharma, Management Information System. Buddha publications.

Wikipedia. (n.d.). Retrieved from http://www.wikipedia.org