NSBL Final Report DDP

Customer Satisfaction with service of Nepal SBI Bank.
1. EXECUTIVE SUMMARY
Objective of the Project: The aim of the project was to study and analyze the customer satisfaction about services provided by Nepal SBI Bank Limited Patan branch. So as to suggest measures to improve the customer satisfaction level. Approach: A primary and secondary data study was conducted. Through primary data, the satisfaction level of customers was analyzed. Findings: In competitive market of banking sectors excellent services is playing prominent role to gain large market share. Banks are focusing on excelling their services to satisfy their customer. The study shows that customers of Nepal SBI bank are satisfied with the services provided by the bank. Although the bank is able to satisfy their customers there are some aspects which have been identified, that can be worked out which would strengthen the services of bank. Suggestions: As we know that finding is not the end of a research, so the suggestion part is covered which are made after a depth study of the analysis. Some recommendations have been made after the analysis to excel further the services of Nepal SBI bank Ltd. Patan branch.
Digar Dev Pandey, MBA-IB, FMS- BHU 2012
2. INTRODUCTION
2.1 HISTORY OF BANKING IN NEPAL 2.2THE BANKING INDUSTRY: CURRENT SITUATION 2.3 BANK AND FINANCIAL INSTITUTION IN NEPAL
2.1 HISTORY OF BANKING IN NEPAL

The word Bank has been derived from the Latin word bancus, Italian word banca or French word banque which all give the same meaning that is bench. Since, people use to perform the monetary transaction by sitting on the bench at earlier time, the word bank derived. Nowadays, banks are becoming so popular that large number of financial transactions are performed daily such as, accepting deposits, providing loans, providing securities, remittance facilities, taking guarantees, formulating capital, making regional balance, etc. In short, Bank is an institution that deals with money and credits. It accepts the deposit from the general public and advances it to those who really do need it. So, bank is that financial institution established to serve the people in financial and other technical sector. The history of banking in Nepal is believed to be started from the time of Prime Minister Ranoddip Singh in 1877 A.D. he introduced many financial and economic reforms. The Tejaratha Adda was established at that time and its basic purpose was to provide credit facilities to the general public at a very concessional interest rate. The Tejarath Adda disbursed credit to the people on the basis of collateral of gold and silver. All employees of government were also eligible for this type of loan, which was settled by deducting from their salary. Tejaratha Adda extended credit only; it did not accept deposits from the public. But the real banking started with the establishment of Nepal bank limited in 1994 B.S which was founded by Judda Samsher. It was the first bank of Nepal. Its main function was to provide loans and accept deposits. Later Nepal Rastra Bank was established as a central bank in 2013 B.S. The bank was completely government ownership bank and it also started to issues notes since 2016 B.S. Then after, several commercial banks have been established in the recent years.
In the context of Nepal, like as in other country the goldsmiths and landlord was the ancient banker. The Nepalese people were highly exploited by Shahu Mahajan by charging higher interest rate i.e. compound interest rate and even by manipulating the principal amount. If we try to see the history of banking transaction in depth then evidence of money lending function are
found in practice before 8th century. In 780 B.S. Gunakamadev the ruler of Kathmandu reconstructed Kathmandu valley by borrowing debt from the people. In 14th century Tanka dhari system had been running in the period of Ranodip Singh in Kathmandu established an office called Tejarath Adda. From this office the government distributed salary to their employees and provided loans to government employment @ 5% of interest against the security of gold, silver, etc. Because of the development of economic activities in Nepal the above institution could not be fulfilled the need of people. So in Kartik 30, 1994 B.S. Nepal Bank Limited was established as one of the semi government commercial bank which had 10 million authorized capital and 842000 paid up capital. It has done the pioneering function in function spreading the banking habits among the people. Having felt a need of central bank to control and direct the commercial bank and help the government for making monetary policies Nepal Rastra Bank was set up in 14 Baisakh 2013 B.S. To fulfill the growing credit requirement of the country, the commercial bank i.e. Rastriya Banijya Bank was establish in 10th Bhadra 2022 B.S. This bank also provides facility for the economic welfare of the general public. Nepal is an agriculture country to develop agriculture system. Industry Agriculture Development Bank and Nepal Industrial Development Corporation was established in 2024 B.S. and 2016 B.S. respectively. The initiation of the financial sector; liberalization policy by Nepal Rastra Bank, a board of joint venture banks entered with the view to accelerate the pace of development of nation. At present, there are many joint venture banks which are running successfully in a competitive environment. His majesty government (Govt. of Nepal) deliberates policy of allowing foreign joint venture banks to operate in Nepal basically targeted, to encourage local tradition commercial bank to enhance their capacity through competitors efficiencies mechanization modernization and prompt customer service. Nepal Arab Bank LTD was established in 2041 as a first foreign joint venture bank.
Nepal's first commercial bank, the Nepal Bank Limited, was established in 1937. The government owned 51 percent of the shares in the bank and controlled its operations to a large
extent. Nepal Bank Limited was headquartered in Kathmandu and had branches in other parts of the country. There were other government banking institutions. Rastriya Banijya Bank (National Commercial Bank), a state-owned commercial bank, was established in 1966. The Land Reform Savings Corporation was established in 1966 to deal with finances related to land reforms. There were two other specialized financial institutions. Nepal Industrial Development Corporation, a state-owned development finance organization headquartered in Kathmandu, was established in 1959 with United States assistance to offer financial and technical assistance to private industry. Although the government invested in the corporation, representatives from the private business sector also sat on the board of directors. The Co-operative Bank, which became the Agricultural Development Bank in 1967, was the main source of financing for small agribusinesses and cooperatives. Almost 75 percent of the bank was state-owned; 21 percent was owned by the Nepal Rastra Bank and 5 percent by cooperatives and private individuals. The Agricultural Development Bank also served as the government's implementing agency for small farmers' group development projects assisted by the Asian Development Bank and financed by the United Nations Development Program. The Ministry of Finance reported in 1990 that the Agricultural Development Bank, which is vested with the leading role in agricultural loan investment, had granted loans to only 9 percent of the total number of farming families since 1965 A.D. Since the 1960s, both commercial and specialized banks have expanded. More businesses and households had better access to the credit market although the credit market had not expanded. In the mid-1980s, three foreign commercial banks opened branches in Nepal. The Nepal Arab Bank was co-owned by the Emirates Bank International Limited (Dubai), the Nepalese government, and the Nepalese public. The Nepal Indosuez Bank was jointly owned by the French Banque Indosuez, Rastriya Banijya Bank, Rastriya Beema Sansthan (National Insurance Corporation), and the Nepalese public. Nepal Grindlays Bank was co-owned by a British firm called Grindlays Bank, local financial interests, and the Nepalese public. Nepal Rastra Bank was created in 1956 as the central bank. Its function was to supervise commercial banks and to guide the basic monetary policy of the nation. Its major aims were to
regulate the issue of paper money; secure countrywide circulation of Nepalese currency and achieve stability in its exchange rates; mobilize capital for economic development and for trade and industry growth; develop the banking system in the country, thereby ensuring the existence of banking facilities; and maintain the economic interests of the general public. Nepal Rastra Bank also was to oversee foreign exchange rates and foreign exchange reserves. Prior to the establishment of Nepal Rastra Bank, Kathmandu had little control over its foreign currency holdings. Indian rupees were the prevalent medium of exchange in most parts of the country. Nepalese currency was used mostly in the Kathmandu Valley and the surrounding hill areas. The existence of a dual currency system made it hard for the government to know the status of Indian currency holdings in Nepal. The exchange rates between Indian and Nepalese rupees were determined in the marketplace. Between 1932 and 1955, the value of 100 Indian rupees varied between Rs71 and Rs177. The government entered the currency market with a form of fixed exchange rate between the two currencies in 1958. An act passed in 1960 sought to regulate foreign exchange transactions. Beginning in the 1960s, the government made special efforts to use Nepalese currency inside the country as a medium of exchange. It was only after the signing of the 1960 Trade and Transit Treaty with India that Nepal had full access to foreign currencies other than the Indian rupee. Prior to the treaty, all foreign exchange earnings went to the Central Bank of India, and all foreign currency needs were provided by the Indian government. After 1960 Nepal had full access to all foreign currency transactions and directly controlled its exports and imports with countries other than India. As a result of the treaty, the government had to separate Indian currency (convertible currency because of free convertibility) from other currencies (nonconvertible currency because it was directly controlled by Nepal Rastra Bank). In 1991 government statistics still separated trade with India from trade with other countries. Tables showing international reserves listed convertible and nonconvertible foreign exchange reserves separately
2.2THE BANKING INDUSTRY: CURRENT SITUATION

The tradition of official banking system in Nepal commenced with the establishment in 1937 of Nepal Bank limited (NBL), the first Nepalese commercial bank. The central Bank (NRB) of
Nepal was established in 1956, by the act of 1955, after nearly two decades when NBL came into existence.
A decade after the founding of NRB, Rastriya Banijya Bank (RBB), a commercial bank under the ownership of HMG/N also came in operation. The existing set-up of the banking sector in Nepal by mid-April of 2011, is that the number of licensed banks and financial institution operating in Nepal has reached 219, including 31 commercial banks, 87 development banks, 80 finance companies and 21 micro finance banks which are providing financial services to the public.
Only 12 per cent of the populations hold the deposits with the commercial bank. The per-capita deposit by mid-April 2010 stood at 20,100 and the total deposits of bank was Rs 590.9 billion
In the recent times, the branches are being opened at rural areas where deposit growths are at a slower pace. In the current situation, the banks branches have been concentrated in the urban areas rather than the rural areas where people are still deprived of basic services. Financial intermediaries have reduced the dependency of Nepalese households on money lenders for loans. According to Nepal Living standard Survey (NLSS), 15.1 per cent of the total households borrowed from the local money lenders, whereas previously fifteen years ago 39.7 per cent used to borrow from the same institution. Banking in Nepal has become an important feature which renders service to the people in financial matters, and its magnitude of action is extending day by day. It is the major institutional system in Nepal which carries out the financial flow within the economy.
The significance of banking in Nepal also highlights its importance with the introduction of ebanking in the recent years. In a developing country like Nepal, most of the people are living under the poverty line, and, as such, the banks should offer competent and reliable services to the citizens.
Nepal is passing through a new arena in the field of institutional and governance reform. To guarantee superb corporate governance in Nepal, it requires a collaborative effort
between the investors, board of directors, who should possess the quality of being sincere, transparent, accountable and socially justifiable and the regulating body should efficiently enforce rules and regulations in order to protect the right of the stakeholders. At the same time, the share holders should be on constant vigilance and be actively aware and participate in their corporate dealings to prevent deceitful practices from taking place. This integrated approach will provide a tremendous ambiance to intensify excellent traditions of corporate governance.
Current flooding of corruption, discreditable action and corporate deception has evoked an urgency to strike at the roots of the functional activities in the financial sector of Nepal. The most recent collapse of a cluster of financial institutions defied the self-belief and created commotion among the general public regarding depositing their hardly earned money in banks.
Only some months before Gurkha Development Bank, Nepal Share Market and finance company and Capital Merchant Banking closed down their transactions and could not pay the depositors.
The public have conventional faith in banks and financial institutions for secure staying of their savings, but the ones assigned with the money are monopolizing the funds at their whim haphazardly.
This suspicion among the people has led to the loss of credibility of financial institutions. The desperate and emotionally disturbed depositors of ill-fated bank are in a fix as to whom they should ask for help. Scrutinizing the problematic state of affairs of the financial institution, the Central Bank should exhibit its aggressiveness to bring back the lost track of bank and financial institution.
Analyzing the critical problem the following measures should be taken by the Central Bank (a) Supervising mechanism of Central Bank should be prompt, honest, sound and effective. (b) Issuing of license of financial institution should be stopped. (c) Competitive and qualified persons should be encouraged while electing board of directors. (d) The code of conduct should be stringently followed by the board of directors. (e) A separate research wing for market
analysis and for policy formulation should be created. (f) Expenditure of the institution should be well-matched with the income. At this moment of pandemonium, it is a pressing need that the Central Bank displays its power of action to alleviate the depositors problem and consequently preventing other banks and financial institutions from crumbling down one after the other as soon as possible.
.2.3 BANK and FINANCIAL INSTITUTIOS IN NEPAL:

List of Bank and financial institution with Name, operation date, head office and paid up capital is presented below
Class A: Commercial Banks

S.No. Names Operation Date (A.D.) Head Office
Paid up Capital
(Rs. '00 Thosands )
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Nepal Bank Ltd. Rastriya Banijya Bank Ltd. Agriculture Development Bank Ltd. Nabil Bank Ltd. Nepal Investment Bank Ltd. Standard Chartered Bank Nepal Ltd.. Himalayan Bank Ltd. Nepal SBI Bank Ltd. Nepal Bangladesh Bank Ltd. Everest Bank Ltd. Bank of Kathmandu Ltd. Nepal Credit and Commerce Bank Ltd. Lumbini Bank Ltd. Nepal Industrial & Commercial Bank Ltd. Machhapuchhre Bank Ltd. Kumari Bank Ltd. Laxmi Bank Ltd. Siddhartha Bank Ltd. Global Bank Ltd. Citizens Bank International Ltd. Prime Commercial Bank Ltd
1937/11/15 1966/01/23 1968/01/02 1984/07/16 1986/02/27 1987/01/30 1993/01/18 1993/07/07 1994/06/05 1994/10/18 1995/03/12 1996/10/14 1998/07/17 1998/07/21 2000/10/03 2001/04/03 2002/04/03 2002/12/24 2007/01/02 2007/06/21 2007/09/24
Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Siddharthanagar, Rupandehi Narayangadh,Chitawan Biaratnagar,Morang Pokhara, Kaski Kathmandu Birgunj, Parsa Kathmandu Birgunj, Parsa Kathmandu Kathmandu Digar Dev Pandey, MBA-IB, FMS- BHU 2012
3804 3853 94375 20298 24091 16102 20000 18693 20103 11196 13595 13997 13000 13116 16272 14850 16140 15610 15000 19223 22457

22 23 24 25 26 27 28 29 30 31 Sunrise Bank Ltd. Bank of Asia Nepal Ltd. DCBL Bank Ltd. NMB Bank Ltd. Kist Bank Ltd. Janata Bank Nepal Ltd. Mega Bank Nepal Ltd. Commerz & Trust Bank Nepal Ltd. Civil Bank Litd. Century Commercial Bank Ltd. 2007/10/12 2007/10/12 2008/05/25 2008/06/05 2009/05/07 2010/04/05 2010/07/23 2010/09/20 2010/11/26 2011/03/10 Kathmandu Kathmandu Kamaladi, Kathmandu Babarmahal, Kathmandu Anamnagar, Kathmandu New Baneshwor, Kathmandu Kantipath, Kathmandu Kamaladi, Kathmandu Kamaladi, Kathmandu Putalisadak , Kathmandu
10
18554 15175 19209 16517 20000 14000 16310 14000 12000 10800
Class B: Development Banks 1 Nepal Industrial Development Corporation 2 Uddyam Development Bank Ltd. 3 Malika Development Bank Ltd. 4 Siddhartha Development Bank Ltd. 5 United Development Bank Ltd. 6 Manakamana Development Bank Ltd. 7 Narayani Development Bank Ltd. 8 Pashimanchal Development Bank Ltd. 9 Sahayogi Bikas Bank Ltd. 10 Pashupati Development Bank Ltd. 11 Karnali Bikash Bank Ltd. 12 Triveni Development Bank Ltd. 13 Annapurna Development Bank Ltd. 14 Bhrikuti Bikas Bank Ltd. 15 Shubhechchha Bikas Bank Ltd. 16 Bageshowri Development Bank Ltd. 17 Sanima Bikas Bank Ltd. 18 Gaurishankar Development Bank Ltd. 19 Gorkha Bikas Bank Ltd. 20 Gandaki Bikas Bank Ltd. 21 Infrastructure Development Bank Ltd. 22 Business Development Bank Ltd. 23 Biratlaxmi Bikas Bank Ltd. 24 Excel Development Bank Ltd. 25 Western Development Bank Ltd. 26 H. & B. Development Bank Ltd.** 27 Arniko Development Bank Ltd. 1959/06/15 1999/11/11 1998/12/19 1998/08/20 2002/03/16 2001/06/19 2001/10/17 2003/03/02 2003/10/21 2004/01/01 2004/02/14 2004/07/26 2004/08/23 2004/08/19 2004/09/14 2004/10/19 2004/11/26 2004/11/29 2004/12/01 2005/01/19 2005/04/29 2005/05/10 2005/05/11 2005/07/21 2005/09/15 2011/06/15 2006/07/06 Durbar Marg, Kathmandu Narayangadh, Chitawan Dhangadhi, Kailali Tinkune, Kathmandu Jeetpur, Bara Durbar Marg, Kathmandu Ratna Nagar, Chitawan Mitrapark, Rupandehi Janakpur, Dhanusha Banepa, Kavre Nepalgunj, Banke Narayangadh, Chitawan Banepa, Kavre Butawal, Rupandehi Narayangadh, Chitawan Nepalgunj, Banke Kamalpokhari, Kathmandu Kawasoti, Nawalparasi Putalisadak, Kathmandu Pokhara, Kaski Banepa, Kavre Pokhara, Kaski Biratnagar, Morang Birtamod, Jhapa Ghorahi, Dang Kamalpokhari , Kathmandu Dhulekhel, Kavre 4158 500 2048 6450 802 10000 655 3365 750 6632 800 1357 6720 2792 1008 594 20160 2100 6608 2000 6607 6901 605 800 500 8979 2000
Customer Satisfaction with service of Nepal SBI Bank. 28 NDEP Development Bank Ltd. 29 Clean Energy Development Bank Ltd. 30 Miteri Development Bank Ltd. 31 Tinau Bikas Bank Ltd. 32 Rising Development Bank Ltd. 33 Muktinath Bikas Bank Ltd. 34 Sewa Bikas Bank Ltd. 35 Kankai Bikas Bank Ltd. 36 Public Development Bank Ltd. 37 Ace Development Bank Ltd. 38 Mahakali Bikas Bank Ltd. 39 Sangrila Bikas Bank Ltd. 40 Bhargab Bikas Bank Ltd. 41 Vibor Bikas Bank Ltd. 42 Resunga Bikas Bank Ltd. 43 Rara Bikas Bank Ltd. 44 Diyalo Bikas Bank Ltd. 45 Country Development Bank Ltd. 46 Kasthamandap Development Bank Ltd. 47 Alpine Development Bank Ltd. 48 Nilgiri Bikas Bank Ltd. 49 Corporate Development Bank Ltd. 50 Kamana Bikas Bank Ltd. 51 City Development Bank Ltd. 52 Garima Bikas Bank Ltd. 53 Biswo Bikas Bank Ltd. 54 Pathibhara Bikas Bank Ltd. 55 Professional Bikas Bank Ltd. 56 Kabeli Bikas Bank Ltd. 57 Purnima Bikas Bank Ltd. 58 Jyoti Development Bank Ltd. 59 Shine Development Bank Ltd. 60 Bagmati Development Bank Ltd. 61 Hamro Bikas Bank Ltd. 62 Kakre Bihar Bikas Bank Ltd. 63 Pacific Development Bank Ltd. 64 Civic Development Bank Ltd. 65 International Development Bank Ltd. 66 Kanchan Development Bank Ltd. 67 Gulmi Bikas Bank Ltd. 2006/07/17 2006/09/06 2006/10/13 2006/10/13 2006/12/18 2006/12/18 2007/02/25 2007/05/04 2007/06/07 2007/08/15 2007/08/18 2007/08/26 2007/08/30 2007/10/04 2007/09/26 2007/09/30 2007/10/01 2007/10/04 2007/10/25 2007/10/05 2007/10/12 2007/10/25 2007/09/29 2007/10/19 2007/11/23 2007/11/21 2007/11/21 2007/10/17 2007/11/15 2008/05/20 2008/08/25 2009/02/22 2009/03/23 2009/04/19 2009/05/15 2009/07/26 2009/08/13 2009/09/04 2009/09/19 2009/09/24 Kamaladi, Kathmandu Sitapaila, Kathmandu Dharan, Sunsari Butwal, Rupandehi Gaidakot, Nawalparasi Pokhara, Kaski Butawal, Rupandehi Damak , Jhapa Birjunj , Parsa Narayanchaur, Kathmandu Mahendranagar, Kanchanpur Newroad Pokhara, Kaski Nepalgunj, Banke Tripureshwor, Kathmadu Tamghas, Gulmi Birendranagar, Surkhet Banepa, Kavre Banepa, Kavre New Road, Kathmandu Hetauda, Makawanpur Beni, Myagdi Birjung, Parsa Lekhnath, Kaski Pokhara, Kaski Pokhara, Kaski Pokhara, Kaski Urlabari, Morang Banepa, Kavre Dhankuta Sidhardhanagar, Rupandehi Kamalpokhari, Kathmandu Butawal, Rupandehi Hariwon, Sarlahi Battar, Nuwakot Birendranagar, Surkhet Beshishahar, Lamjung Dhadingbesi, Dhading Taku, Kathmandu Mahendranagar, Kanchanpur Tamghas, Gulmi
11
5461 10550 903 1000 1400 1300 1000 400 1500 7505 356 2240 600 6818 306 2001 1000 3200 3360 1000 500 1400 2000 2000 2000 2400 500 1000 200 1000 7400 1200 140 210 180 374 140 4480 700 140
Customer Satisfaction with service of Nepal SBI Bank. 68 Bright Development Bank Ltd. 69 Matribhumi Bikas Bank Ltd. 70 Innovative Development Bank Ltd. 71 Jhimruk Bikas Bank Ltd. 72 Metro Development Bank Ltd. 73 Raptibheri Bikas Bank Ltd. 74 Gaumukhi Bikas Bank Ltd. 75 Nepal Consumer Development Bank Ltd 76 Khandbari Development Bank Ltd. 77 Tourism Development Bank Ltd. 78 Mission Development Bank Ltd. 79 Surya Development Bank Ltd. 80 Mount Makalu Development Bank Ltd. 81 Sindhu Bikas Bank Ltd. 82 Social Development Bank Ltd. 83 Sahara Development Bank Ltd. 84 Nepal Community Development Bank Ltd. 85 Cosmos Development Bank Ltd. 86 Manasalu Development Bank Ltd. 87 Samabriddhi Development Bank Ltd. 2009/10/08 2009/10/09 2009/11/13 2009/12/14 2009/12/16 2010/01/15 2010/01/25 2010/02/5 2010/03/5 2010/03/18 2010/06/15 2010/07/18 2010/07/21 2010/09/09 2010/10/12 2010/10/27 2010/11/03 2010/11/17 2010/12/14 2010/12/31 Panouti, Kavre Sindhulimadi, Sindhuli Sidhardhanagar, Rupandehi Bagdula,Pyuthan Pokhara, Kaski Nepalgunj, Banke Bijuwar, Pyuthan Pokhara, Kaski Khandbari, Sankhuwasava Thamel, Kathmandu Butwal, Rupandehi Charikot, Dolkha Basantapur, Terathum Barhabise, Sindhupalchowk Naxal, Kathmandu Mahangawa,Sarlahi Butwal, Rupendehi Gorkhabazar, Gorkha Buspark, Gorkha Gajuri,Dhading
12
980 154 663 120 700 600 140 1400 175 4000 700 140 140 510 3827 140 700 175 700 700
Class C: Finance Companies

Paid up Capital
(Rs. '00 Thosands )
S.No.
Names
Operation Date (A.D.)
Head Office
1 Nepal Housing Development Finance Co.Ltd. 2 Nepal Finance Ltd. 3 NIDC Capital Markets Ltd. 4 Narayani National Finance Ltd. 5 Annapurna Finance Co.Ltd. 6 Nepal Share Markets and Finance Ltd. 7 Peoples Finance Ltd. 8 Mercantile Finance Co. Ltd. 9 Kathmandu Finance Ltd. 10 Himalaya Finance Ltd. 11 Union Finance Ltd. 12 Gorkha Finance Ltd.
1992/03/08 1993/01/06 1993/03/11 2009/11/01 1993/09/30 1993/10/19 1993/04/15 1994/11/10 1994/11/10 1993/11/11 12/12/1995 1995/03/12
Bijulibazar, Kathmandu Kamaladi, Kathmandu Kamalpokhari, Kathmandu Kalikasthan, Kathmandu Pokhara, Kaski Ramshahapath, Kathmandu Mahabauddha, Kathmandu Birgunj, Parsa Dillibazar, Kathmandu Sundhara, Kathmandu Kamaladi,Kathmandu Hattisar, Kathmandu
1676 1114 2224 6475 7043 20343 2890 180 1356 1400 1759 1440
Customer Satisfaction with service of Nepal SBI Bank. 13 Paschhimanchal Finance Co.Ltd. 14 Nepal Housing & Merchant Finance Ltd. 15 Universal Finance Ltd. 16 Samjhana Finance Co. Ltd. 17 Goodwill Finance Ltd. 18 Siddhartha Finance Ltd. 19 Shree Investment & Finance Co. Ltd. 20 Lumbini Finance & Leasing Co. Ltd. 21 Inbesta Finance Ltd. 22 Yeti Finance Ltd. 23 Standard Finance Ltd. 24 International Leasing & Finance Co. Ltd. 25 Mahalaxmi Finance Ltd. 26 Lalitpur Finance Co. Ltd. 27 Bhajuratna Finance & Saving Co. Ltd. 28 United Finance Co. Ltd. 29 General Finance Ltd. 30 Merchant Finance Co. Ltd. 31 Alpic Everest Finance Ltd. 32 Nava Durga Finance Co.Ltd. 33 Janaki Finance Co. Ltd. 34 Pokhara Finance Ltd. 35 Central Finance Ltd. 36 Premier Finance Co. Ltd. 37 Arun Finance Ltd. 38 Multipurpose Finance Co. Ltd 39 Butwal Finance Ltd. 40 Shrijana Finance Ltd. 41 Om Finance Ltd. 42 CMB Finance Ltd. 43 World Merchant Banking & Finance Ltd. 44 Capital Merchant Banking & Finance Co. Ltd. 45 Crystal Finance Ltd. 46 Royal Merchant Banking & Finance Ltd. 47 Guheshworil Merchant Banking & Finance Ltd. 48 Patan Finance Co. Ltd. 49 Fewa Finance Ltd. 50 Everest Finance Ltd. 51 Prudential Finance Company Ltd 52 ICFC Finance Ltd. 53 IME Financial Institution Ltd. 54 Sagarmatha Merchant Banking and Finance Ltd 1995/04/09 1995/04/11 1995/04/27 1995/05/03 1995/05/16 1995/05/25 1995/06/01 1995/06/26 1995/07/17 1995/07/23 1995/07/23 1995/10/31 1995/11/26 1995/12/12 1996/01/09 1996/1/25 1996/02/02 1996/01/02 1996/07/16 1997/02/09 1997/03/07 1997/03/16 1997/04/14 1997/05/08 1997/08/17 1998/3/25 1998/06/21 1999/12/14 2000/09/17 2000/11/20 2001/08/10 2002/02/01 2002/02/13 2002/02/14 2002/06/13 6/23/2002 2003/04/30 2003/07/02 2003/06/06 2003/06/15 2005/08/01 2005/08/29 Butawal, Rupandehi Dillibazar, Kathmandu Kantipath, Kathmandu Banepa, Kavre Dillibazaar, Kathmandu Siddarthanagar, Rupandehi Dillibazar, Kathmandu Thamel, Kathmandu Birgunj, Parsa Hetauda, Makawanpur Narayanchaur, Kathmandu Naya Baneshwor, Kathmandu Putalisadak, Kathmandu Lagankhel, Lalitpur Kantipath, Kathmandu Durbarmarg, Kathmandu Chabahil, Kathmandu Newroad, Kathmandu Kathmandu Mall, Kathmandu Itachhe, Bhaktapur Janakpurdham, Dhanusha Pokhara, Kaski Kupondole, Lalitpur Kumaripati, Lalitpur Dharan, Sunsari Rajbiraj, Saptari Butawal, Rupandehi Biratnagar, Morang Pokhara, Kaski Kamalashhi, Kathmandu Hetauda, Makawanpur Battisputali, Kathmandu Thapathali, Kathmandu Durbarmarg, Kathmandu Pulchowk, Lalitpur Pulchowk, Lalitpur Pokhara, Kaski Siddharthanagar, Rupandehi Dillibazar, Kathmandu Bhatbhateni, Kathmandu Panipokhari, Kathmandu Maanvawan,Lalitpur
13
1488 2203 1518 3000 1309 1391 2681 240 1610 10019 20088 4200 1879 385 3508 959 300 937 1266 975 3120 1684 1207 1500 150 2068 280 2468 1500 1820 9351 700 2939 1353 1000 2730 480 2931 3294 3599 1375
Customer Satisfaction with service of Nepal SBI Bank. 55 Shikhar Finance Ltd. 56 Civil Merchant Bittiya Sanstha Ltd. 57 Prabhu Finance Co. Ltd. 58 Imperial Finance Ltd. 59 Kuber Merchant Finance Ltd. 60 Nepal Express Finance Ltd. 61 Valley Finance Ltd. 62 Seti Bittiya Sanstha Ltd. 63 Hama Merchant & Finance Ltd. 64 Reliable Finance Ltd. 65 Loard Buddha Finance Ltd. 66 Api Finance Ltd. 67 Nameste Bitiya Sanstha Ltd.. 68 Kaski Finance Ltd. 69 Suryadarshan Finance Co. Ltd. 70 Zenith Finance Ltd. 71 Unique Financial Institution Ltd. 72 Manjushree Financial Institution Ltd. 73 Swostik Merchant Finance Company Ltd. 74 Subhalaxmi Finance Ltd. 75 Jebil`s Finance Ltd. 76 Reliance Finance Ltd. 77 Lotus Investment Finance Ltd. 78 Baibhab Finance Ltd. 79 Bhaktapur Finance Ltd. 2005/09/15 2005/09/18 2006/02/16 2006/03/08 2006/03/24 2006/05/04 2006/05/11 2006/06/07 2006/06/16 2006/09/06 2006/11/19 4/25/2007 2007/07/07 2007/07/30 2007/07/30 2007/10/08 2007/10/12 2007/10/15 2007/10/16 2007/11/11 2009/10/28 2009/12/03 2010/04/11 2011/01/24 2011/02/08 Thapathali,Kathmandu Kuleshwor,Kathmandu Lainchur,Kathmandu Thapathali,Kathmandu Kamalpokhari, Kathmandu Sundhara, Kathmandu Maharajgunj,Kathmandu Tikapur, Kailali Tripureshwor, Kathmandu Sundhara, Kathmandu Fasikeb, Kathmandu Pokhara, Kaski Ghorai, Dang Pokhara, Kaski New Baneshor, Kathmandu Newroad, Kathmandu Putalisadak, Kathmandu New Baneshor, Kathmandu Kichapokhari, Kathmandu Naxal, Kathmandu New Road, Kathmandu Pradarsani Marg, Kathmandu Newroad, Kathmandu Naya Baneshwor , Kathmandu Chyamsing ,Bhaktapur
14
995 1300 4080 1200 1752 1196 1280 400 2000 1980 1307 600 142 1500 1000 1344 1000 1259 1000 2000 1020 1400 1200 1470 1250
Class D: Micro Credit Development Banks 1 Purbanchal Grameen Bikas Bank Ltd. 2 Sudur Pashimanchall Grameen Bikas Bank Ltd. 3 Pashimanchall Grameen Bikas Bank Ltd. 4 Madhya Pashimanchal Grameen Bikas Bank Ltd. 5 Madhymanchall Grameen Bikas Bank Ltd. 6 Nirdhan Utthan Bank Ltd. 7 Rural Microfinance Development Centre Ltd. 8 Deprosc Microfinance Development Bank Ltd. 9 Chhimek Microfinance Development Banks Ltd. 10 Shawalamban Laghu Bitta Bikas Banks Ltd. 11 Sana Kisan Vikas Bank Ltd. 12 Nerude Laghu Bitta Bikas Bank Ltd. 1993/03/28 1993/03/28 1995/04/01 1995/04/01 1996/07/08 1999/04/13 1996/12/06 2001/07/03 2001/12/10 2002/02/22 2002/03/11 2007/06/07 Biratnagar, Morang Dhangadhi, Kailali Butawal, Rupandehi Nepalgunj, Banke Janakpur, Dhanusha Siddharthanagar, Rupandehi Putalisadak, Kathmandu Ratnanagar, Chitwan Hetauda ,Makawanpur Janakpur, Dhanusha Subidhanagar, Kathmandu Biratnagar, Morang 600 585 660 683 1000 1740 3200 425 1234 1159 1288 400
Customer Satisfaction with service of Nepal SBI Bank. Dhulekhel, Kavrepalanchock Dhalkebar,Dhanusha Anarmani, Jhapa Banepa, Kavre Gyaneshwor, Kathmandu Anarmani, Jhapa Waling, Syanja Banepa, Kavre Butwal, Rupandehi
15
13 Naya Nepal Laghu Bitta Bikas Bank Ltd. 14 Mithila Laghu Bitta Bikas Banks Ltd 15 Summit Microfinance Development Bank Ltd 16 Sworojagar Laghu Bitta Bika Bank Ltd 17 Frist Microfinance Development Bank Ltd 18 Nagbeli Microfinance Development Bank Ltd 19 Kalika Microcredit Development Bank Ltd. 20 Mirmire Microfinance Development Bank Ltd. Janautthan SamudayikMicrofinance Dev. Bank 21 Ltd.
2009/03/20 2009/04/29 2009/05/20 2009/12/1 2009/12/28 2010/02/04 2010/07/21 2010/09/23 2010/11/09
140 165 140 110 700 100 120 140 110
3. Organizational Profile 3. ORGANIZATIONAL PROFILE

3.1 3.2
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OVERVIEW VISION AND MISSION
3.3 ASPIRATION 3.4 COMMITMENT 3.5 3.6 STRATEGIC OBJECTIVE CORPORATE INFORMATION
3.7 BOARD OF DIRECTORS 3.8 ORGANIZATION STRUCTURE
3.9 CORPORATE GOVERNANCE STRUCTURE 3.10 RISK MANAGEMENT STRUCTURE 3.11 DEPOSIT AND ACCOUNT 3.12 ACCOUNT INFORMATION 3.13 ADVANCES 3.14 OTHER PRODUCT AND SERVICES 3.14.1 REMITTANCE 3.14.2 CARD 3.14.3. ALTERNATIVE DELIVERY CHANNELS 3.15 BRANCHES
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3.16 MANAGEMENT TEAM 3.17 HEAD OF DEPARTMENTS AND UNITS 3.18 FINANCIAL HIGHLIGHTS 3.19 SWOT ANALYSIS 3.20 OVERVIEW OF PATAN BRANCH
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3.1 OVERVIEW:
Nepal SBI Bank Limited is a major national level financial services provider engaged in various retail and commercial banking services. Nepal SBI Bank Ltd. (NSBL) is the first Indo- Nepal joint venture in the Nepalese financial sector sponsored by three institutional promoters, namely State Bank of India (SBI), Employees provident Fund and Agriculture Development Bank of Nepal through a memorandum of understanding signed on 17th July 1992. NSBL was incorporated as a public limited company at the office of company registrar on April 28, 1993 under the registration number 17-049/50 with an authorized capital of Rs 12 crore and and was licensed by Nepal Rastra Bank on July 6,1993 under license number Nrb/i.pa./7/2049/2050. NSBL commenced operation with effect from July 7, 1993 with one full-fledged office at durbarmarg, Kathmandu with 18 staff member. The staff strength has since increased to 511. Under the Bank and financial institutions Act, 2063, Nepal Rastra Bank Granted fresh license to NSBL classifying as an A class financial Institution on April 26, 2006 under license number NRB/I.Pra.ka.7/62/63. The authorisied Issued and Paid up capital have been increased to Rs 200 crore, Rs 186.93 crores and 186.93 crores, respectively.
The Management team and managing director who is also the CEO of the bank are deputed by SBI. NSBL work as subsidiary of State Bank of IndiaIndias largest bank in almost any benchmark and business parameters, with over 203 years of history and expertise in banking which has 55 percent of ownership and rest held by a local partner Employee Provident Fund (15%) and general public (30%). In terms of the Technical Services Agreement concluded between SBI and the NSBL, SBI provides management support to the bank through its expatriate officers including Managing Director who is also the CEO of the Bank. Central Management Committee (CENMAC) consisting of the Managing Director, Chief Operating Officer, Chief Financial Officer and Chief Credit Officer oversee the overall banking operations in the Bank.
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Now NSBL consist of a team of nearly 580 people, move, lend, invest and protect money of over 350,000 customers nationally and worldwide. Since its inception on July 7, 1993, Bank is continuously upgrading quality of its service delivery and customer satisfaction with the help of state-of-the technology. Extending the reach to 27 districts through our 59 physical outlets including 50 branches, 6 extension counters and three administrative offices, we are among largest private banks in Nepal. In addition, we serve our valued customers through e-delivery points like Mobile Banking, Automated Teller Machines (ATMs) and Online Banking service for both corporate and retail clients.
3.2 VISION AND MISSION

Over the years, we have grown larger and stronger - in terms of business, geography and resources. This was achieved by relying on the fundamentals. Our achievements are founded on basic banking norms - quality, consistency and transparency of capital base, sound liquidity, a robust risk management framework coupled with the practice of good corporate governance and above all the tireless focus on customer satisfaction.
3.3 ASPIRATION
THE BANKER TO EVERY NEPALI
3.4 COMMITMENT
FIRST IN CUSTOMER SATISFACTION
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3.5 STRATEGIC OBJECTIVES

The key elements of overall strategic goal are to build an open and honest corporate culture and to engage actively on mutual beneficial relationship with all stakeholders to create value for them. Bank aim to achieve strategic goal by achieving following six key objectives:
To care of customers evolving needs and expectations by providing suitable product and
services.
To create a great place to work To practice exemplary governance and accountability. To work in harmony and in mutual satisfaction with our business partners. To provide returns on the investment of our owner.
To invest in local communities in which we operate for the benefits of the society at large
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3.6 CORPORATE INFORMATION

Full Name of the Company: Nepal SBI Bank Limited A Public Limited Company incorporated at the Office of Company Registrar, Kathmandu Nepal on April 28, 1993 under Regd. No. 17-049/50 and was licensed by Nepal Rastra Bank on July 6, 1993 under license No NRB/L. Pa. /7/2049/50 and classified as A class licensed institution on April 26, 2006 under license No. NRB/I.Pra.Ka.7/062/063. July 7, 1993 Mid-July-Mid July (Shrawan 1st - Ashad End) 300323003 The Ordinary Shares and Redeemable Debentures (carrying fixed interest rate) of the company listed on Nepal Stock Exchange. Bagmati Zone, Kathmandu District, Kathmandu Metropoliton City, Ward No. 1 Nepal SBI Bank Limited Corporate Office, Hattisar, Kathamndu Tel No: 4435516, 4435613, Fax No: 4435612 Email: corporate@nsbl.com.np Web Url: www.nepalsbi.com.np Ms. Hasana Sharma, Chairperson (Employee Provident Fund Nominee) Mr. Hemant G Contractor, Director (State Bank of India Nominee) Mr. Rajan Srinivasan, Director (State Bank of India Nominee) Mr. Vijay Jasuja, Director (State Bank of India Nominee) Mr. M. K. Agrawal, Director (Representative of General Public) Mr. Niranjan K Tibrewala, Director (Representative of General Public) Mr. Keshav Raj Acharya, Director (Professional Expert Director) Mr. Alok Kumar Sharma, Managing Director (State Bank of India Nominee) Mr. Alok Kumar Sharma, Managing Director
Legal Form:
Commencement of Business: Accounting Year: Permanent Account Number: Stock Exchange Listing:
Registered Office:
Corporate Office:
Board of Directors:
Central
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Management Committee:
Mr. V.K. Tyagi, Chief Operating Officer Mr. Anil K Singh, Chief Financial Officer Mr. Tulsiram Gautam, Chief Credit Officer Mr. Sudeep Khanal, ACA Mr. Ramesh Ghimire, LLM (Commercial Law) T R UPADHYA & CO., Chartered Accountants House No. 61, Anamika Galli, P. O. Box 4414 Baluwatar, Kathmandu Nepal Mr. Purna Man Shakya Reliance Law Firm, machangal, Jawalakhel, Lalitpur PO Box # 8975, EPC 439, Kathmandu, Nepal Mr. Sudarshan Raj Pandey, FCA Bijuli Bazar, New Baneshwor, Kathmandu
Internal Auditor: Company Secretary:
Statutory Auditor:
Legal Advisor:
Tax Advisor:
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3.7 BOARD OF DIRECTORS
Ms. Hasana Sharma Chairperson Representing employees provided fund
Mr. Hemant G. Contractor Director Representing State Bank of India
Mr. Rajiv Pal Singh Director Representing State Bank of India
Mr. S. K. Bhattacharyya Director Representing State Bank of India
Mr. Manoj Kumar Agrawal Director Representing Public Shareholders
Mr. Niranjan Kumar Tibrewala Director Representing Public Shareholders
Mr. Mohan Raj Joshi Director Independent Professional Expert
Mr. N. K. Chari Managing Director Representing State Bank of India
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3.8 ORGANIZATION STRUCTURE

Board of directors
Credit Committee
Managing Director
Audit Committee
Internal Audit
Chief Credit Officer (CCO)
Chief Financial officer (CFF)
Chief operating officer (COO) Account &administration department System department HR department Business control and inspection department
Company Secretary
Credit Appraisal and Sanctions
Treasury & forex department Reconciliation department Business development department
-Share department -Law department
Documentation follow up and NPA department
Regional Offices Western Regional office: Biratnagar Eastern Regional Office: Nepaljung
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3.9 CORPORATE GOVERNANCE STRUCTURE
26
The Bank uses the term "Corporate Governance" to refer to the governance structure of organization and operational practices of its leadership and management. Compliance with all legislations, regulations, standards and codes is an essential characteristic of organizational culture at Nepal SBI Bank. The Board of Directors is the apex decision making body and has ultimate responsibility for governance. The board monitors compliance with these means of management reports, which include information on any significant interaction with all key stakeholders.
The corporate governance framework of Nepal SBI Bank is designed to lead us towards creating opportunity while protecting the interests of, as well as to create value for, shareholders and other stakeholders including customers, employees and communities and also to ensure transparency and integrity in communication and to make available full, accurate and clear information to all concerned.
The bank is subject to and fully complies with, all but not limited only to, the regulatory requirements of Banks and Financial Institutions Act-2063, Companies Act-2063, various regulations issued by Security Exchange Board of Nepal (SEBON), Directives and Circulars issued by Nepal Rastra bank--the central bank of Nepal, various guidelines from Institute of Chartered Accountants of Nepal (ICAN) and other national and international bodies devising policies on Corporate Governance.
3.10 RISK MANAGEMENT

Primary goal of our risk management framework is to ensure that outcomes of risk taking activities are predictable and consistent with the Bank's objectives and risk tolerance levels and that there is an appropriate balance between risk and return in order to maximize return to the shareholders. We adopt a holistic approach and have been engaged in extensive and detailed evaluation and assessment of our risk management in all areas of banking activities.
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RISK MANAGEMENT COMMITTEE

ICAAP REVIEW COMMITTEE (IRC) The internal capital adequacy assessment process (ICAAP) is a comprehensive process which requires board and senior management's oversight, monitoring, reporting and internal control. The committee reviews the capital measurement process to ensure the alignment of regulatory capital requirement with the true and actual risk profile of the bank and thus ensure long-term
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safety and soundness. Other salient roles of ICAAP Review Committee are to review Credit Risk, Credit Concentration Risk, Operational Risk, Market Risk, Liquidity Risk, and other residual risks to ensure alignment of regulatory capital requirement with the true risk profile of the bank and thus ensure long-term safety and soundness. MARKET RISK MANAGEMENT COMMITTEE (MRMC) The Market Risk Management Committee has the overall responsibility to monitor and manage various risk exposures of the bank. It involves identification, assessment, monitoring, reporting and analysing of Market Risk profile associated with treasury operations. MRMC assesses risk parameters, oversees compliance with those risk parameters and develops hedging strategies.
The committee makes resource allocation for all categories of risk assets. MRMC also performs risk research and analysis for development of risk mitigation strategies. CREDIT RISK MANAGEMENT COMMITTEE (CRMC) The Credit Risk Management Committee mainly focuses on monitoring of bank wide credit risk ensuring compliance and implementation of Credit Risk Policy and Strategy approved by the Board. It ensures incorporation of regulatory compliance in the bank's policies and guidelines in regards to credit risk and subsequent compliance with all the risk parameters and prudential limits set-out by those regulatory guidelines. The committee also performs monitoring of quality of loan portfolio on a periodical basis, identification of problems and correction of deficiencies and monitoring of risk concentrations. OPERATIONAL RISK MANAGEMENT COMMITTEE (ORMC) The ORMC reviews the risk profile, anticipates changes and threats in areas of high priority and works-out related mitigation strategies and assures that adequate resources are being assigned to mitigate risks as needed. It reviews reports from various business groups and units about their risk profile and mitigation programs and communicates with the business units and staff about the importance of operational risk. It also reviews and approves the development and implementation of operational risk methodologies and tools including assessments and loss event databases. On a broad level, the committee monitors and ensures that appropriate ORM
29
frameworks are in place by reviewing the reports with respect to operational risk profile of the bank and approves policy-related risk mitigation plan. ASSETS LIABILITIES MANAGEMENT COMMITTEE (ALCO) ALCO is responsible for managing the balance sheet, off balance sheet exposures and capital within the performance and risk parameters laid down by the investment and other relevant policies of the bank. It provides direction to the bank's treasury and other businesses regarding short term business strategy taking into account market variables in relation to the bank's exposure and the bank's corporate plan. The committee approves the liquidity and funding plans of the bank and assesses the liquidity risk facing the bank while articulating interest rate views. It also monitors key market and operations risk indicators, reviews the potential impact of concentrations and various scenarios on the bank's business and gives directives to mitigate and manage the related risk while ensuring adherence to tolerance/risk limits set by the board of directors.
3.11 DEPOSIT AND ACCOUNT

VARISTHA NAGARIK BACHAT KHATA Varistha Nagarik Bachat Khata. The respected senior citizenaged 50 and abovecan open this Saving Account with minimum balance of Rs. 500/- only. Interest rate on the account is 4% calculated daily and payable quarterly. Additionally, the Accountholder gets bundle of additional benefits; No restrictions on withdrawal from account subject to maintenance of required minimum balance 50% concessions on rental charges for hiring safe deposit locker (Subject to Availability) 50 % concession on SWIFT and RTGS only (Except on Exchange & Commission) 50 % concession on commission on Bharat Yatra Card Free Account Statement (On request) Free Any Branch Banking Service
Customer Satisfaction with service of Nepal SBI Bank. Free Nepal SBI Bank Debit Card Free Internet Banking Service
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Similarly, the customers under this scheme can open Fixed Deposit Account that yield applicable card rate with interest receivable on monthly basis. Account can be open on all of our branch offices.
VISHESH BACHAT Vishesh Bachatenriched with bundle of additional benefits to our valued customers. Vishesh Bachat Accountholders get; 5% interest rate calculated on daily balance and payable quarterly. Free Internet Banking Service. Free Nepal SBI Visa Debit Card. Any Branch Banking Service free of charges Free account statement (On request) 50 percent discount on rental charges and no separate deposit requirement for hiring Safe Deposit Lockers (Subject to availability of Lockers) 50 percent concession on issuing Bharat Yatra Card 50 percent concession on applicable charges and commission on RTGS only. (Except on exchange and commission.) No restrictions on deposits and withdrawal (Subject to maintenance of the minimum balance) The account can be open at minimum balance of Rs. 50,000/-. Account can be open on all of NSBL branch offices. SWASTHA BACHAT KHATA Nepal SBI Banks Swastha Bachat Khata gives you dual benefits of having a saving bank account and meantime keeping yourself healthy with free Health Check-Up Service worth Rs. 1,555/- from U&B International Health Care Centre located at New Baneshwor Shantinagar Gate, Kathmandu. The Health Check-Up Services includes General Check-up, Dental Checkup and various Laboratory Investigations. Apart from this, the accountholders also get
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3% Interest Rate calculated on daily balance and payable quarterly (Nepali Calendar) Free Account Statement (On request) Free Any Branch Banking Service Free Nepal SBI Bank Debit Card Free Internet Banking Service Free Cheque Book Swastha Bachat Khata can be opened at the minimum balance of just Rs. 2,000/- This account can be open at all of Nepal SBI Banks Branch Offices inside Kathmandu Valley.
UJJWAL BHAVISYA BACHAT YOJANA (RECURRING DEPOSIT) Ujjwal Bhavisya Bachat Yojana: This is a flexible recurring account which allows customers to deposit a sum of money periodically up to a desirable term. This product is especially useful for promoting savings and to use the fund received at maturity to fulfill personal needs that call for significant financial commitment. Deposit Fixed amount each month and withdraw lump sum amount on maturity Deposit Amount: Rs. 500.00 and above in multiples of Rs. 100.00 Deposit Period: From 12 months to 84 months in multiples of 6 months Interest credited quarterly in principal account Interest Capitalization every 3 months
DHANVRIDDHI BACHAT YOJANA Deposit Fixed Amount at the beginning and withdraw lump-sum amount on maturity. Deposit Amount: Minimum NPR 5,000 and above in multiples of NPR 100. Deposit Period: From 6 months to 84 months in multiples of 6 months. Interest Credited to Principal Account. Interest Capitalized every 3 months (based on English Calendar). A soft loan can be availed up to 90% of the balance amount
Customer Satisfaction with service of Nepal SBI Bank. KARMACHARI BACHAT KHATA
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A special zero balance deposit schemeKarmachari Bachat Khatawith special focus on salaried employees from government and/or non-government organizations. Karmachari Bachat Khata account holders get; 5% interest on daily balance, payable quarterly 40% concession on rental charges for hiring safe deposit locker (Subject to availability) 50% concession on remittance commission (Draft and RTGS to India) 50% concession on issuance charge of Bharat Yatra Card. Free Any Branch Banking Service Free Nepal SBI Bank Debit Card The account can be opened in all Nepal SBI Bank branch offices.
RS. 501 SARAL BACHAT
Saral Bachat Khata: It is one of the most popular deposit accounts of the bank which has attracted more than 150,000retail customers since its launch in year 2009. This account was targeted towards mid to low income group of people with lowered minimum balance requirement. Customer can open this account with minimum balance of just Rs. 501. Free ATM/Debit Card. Free Any Branch Banking Service (Customer can deposit and withdraw cash from all branches of Nepal SBI Bank countrywide free of charges). Free Cheque Book Free Internet Banking Account
PROVIDENT FUND ACCOUNT FOR PERMANENT STAFF OF ORGANIZATION Higher interest rate than normal saving deposit. Interest calculated daily payable quarterly. A soft loan can be availed up to 90% of the balance amount.
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A certain amount of fund (both deducted from staff salary and contributed by the organization) can be deposited on the monthly basis by the concerned organization.
3.12 ACCOUNTS INFORMATION

CURRENT ACCOUNT It is an account specially designed for business transactions. There are no restrictions on number of credit/ debit transactions. No interest is paid on current account. Current Account can be opened by: By a person in his/her own name or jointly with other individual(s). In the name of firm, Club and association, society. In the name of Private and Public Limited Company. In the name of trustee, liquidator etc. By any other institution etc. It is essential that the prospective customer should be introduced by an existing account holder. It is preferable that introducer should come to the bank for introduction. However in case it is not possible for the introducer to come to the bank, it is very important that signature of the introducer should be verified with utmost care and if possible the introduction may be confirmed with the introducer on telephone/in writing.
SAVINGS ACCOUNT The account scheme is supposed to facilitate easy and regular withdrawal of funds as and when required and simultaneously earning of income on the balance that is kept in the account. Any person having a savings account is allowed to deposit money and withdraw to the extent of balance freely from his/her account. Individual banks however put a restriction on number of withdrawals and amount for each transaction in saving account.
Saving account is an interest bearing account. The interest is paid on minimum daily balance basis. The advantage of Savings account is that an individual can utilize the bank account for various payments while the balance in the account earns interest. The scheme is designed to
34
encourage small savings. The interest in saving account is paid on quarterly basis.
Savings accounts are allowed to be opened only by individuals singly or jointly. Other than individuals, any organization or body of persons (e.g. society etc.) can open a savings account if they are a charitable organization and are exempt from income tax on their income.
FIXED ACCOUNT The account scheme allows a customer to earn higher rate of interest for those amounts, which a customer is confident that he will not require the amount for certain period. The scheme offers higher rate of interest than savings account. The interest rates vary with the period for which amount is kept in fixed deposit. The interest rates vary from time to time.
Documents Required Following are the documents required for opening account with NSBL.
For Individual: Copy of citizenship certificate for Nepali national. Copy of Embassy registration certificate issued by Embassy of India, Kathmandu, as Indian national/copy of valid passport. Two copies of recent photograph should also be obtained.
For Proprietorship Firm: Declaration of Sole Proprietorship. Copy of renewed Firm Registration Certificate. Copy of renewed Income Tax Registration Certificate. Copy of identification paper of promoter/ account operators. Two copies of recent photograph of proprietor should also be obtained.
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For Partnership Firm: Letter of Partnership duly signed by all partners. Copy of Partnership Deed duly attested. Certified copy of Partnership Registration. Identification papers of all partners and account operators. Income tax registration/renewed certificate.
For Corporate Bodies: Memorandum and Articles of Association of the company. List of existing directors. Resolution of Board of Directors to open and operate the account. Company registration and Income Tax registration/renewed certificate. Identification papers of directors and account operators. Notification of appointment of office bearers as authorized account operators in case of Corporations. For Clubs, Societies and Associations: List of Office Bearers and their addresses. Copy of Resolution to open and operate the account. Name and signature of persons authorized to operate the account. Copy of registration certificate. Identification papers of account operators. Affiliation certificate with the Social Welfare Council or other concerned Councils.
3.13 ADVANCES
Corporate and Business Loans The bank offers corporate and business loan to large corporate and institutional customers including public sector entities and service them with offerings ranges from loans to meet
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operational funding requirements as well as service related to strategic expansions, syndications, project finance etc.
SME Loans This is a tailor made loan product devised with special focus on the needs of Small and Medium Sized Enterprises to meet their financing requirements in a convenient manner.
Personal Loans Retails loans largely comprise of auto finance, home loan and credit for consumer durables. Credit card is not in offer yet. Other personal loans like Mortagage and Mortgage Plus are personal credit given to individuals on the basis of their income level. MORTAGE LOAN SCHEME Margin: The borrower has to offer immovable property whose value on distress is at least 200% of the loan amount. The loan will be restricted to 50% of the distress sale value of the property offered as security subject to a ceiling of Rs. 20,00,000/- for the proposals up to the sanctioning power of Chief Credit Officer Repayment: The repayment by way of indicative Equated Monthly installments on the basis of contracted rate MORTAGE-PLUS LOAN SCHEME Features: To employees, professional, self employed, businessman and others. Limits Linked to income and collateral. Revolving overdraft or repayable over 5 years. For any legitimate purpose. Competitive Interest Rate. Quick Processing
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DUCATION LOAN Maximum loan amount: Rs. 40.00 lacs. Student eligibility Should be a Nepalese citizen. The student should have at least intermediate/higher secondary level (plus two) academic qualification. The students parents/guardian should have sufficient regular income to service interest. Their uncommitted monthly income should be at least 1.33 times of the interest payable. Should be between the age of 16 years to 35 years Eligible Courses Graduate / Masters and above Professional courses (graduate and above) Expenses considered Fees payable to College /Hostel (Admission fee, tuition fee, examination fee, laboratory fee, library fee) Purchase of books, equipments, instruments required for the course. Cost of passage (for studies abroad) Boarding and lodging expenses (Recognized hostels by the institution) Pricing Processing fee: 0.5% of the loan amount or Rs. 5000.00 whichever is higher. Prepayment charge: A prepayment charge at the rate of 2% on the prepaid amount shall be recovered. If loan is repaid after 12 months of the date of sanction, the prepayment charge shall be 1%. Commitment fee: A commitment fee at the rate of 0.25% of unutilized loan shall be charged. CIC report fee: Rs. 500.00 and Rs. 250.00 per additional page.
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Repayment Programme Moratorium: A maximum period of 5 years or the completion of course designated, whichever is earlier.
Repayment: The loan shall be repaid in 5 years after the moratorium period on EMI basis.
Interest during moratorium period: The parents/guardian of the student shall pay the interest during the moratorium period on quarterly basis as per Nepali calendar. Security Land and building having value133% of loan amount. Loan upto 95% of Fixed Deposit/Government securities.
Supporting documents required Duly filled Loan Application form Mark sheet of last qualifying examination Copies of Letter Conferring scholarship, if any Proof of admission to the course Schedule of expenses for the course Two copies of recent passport size photograph of the students and their parents/guardian/guarantor Copies of foreign exchange permit, where required. Copies of citizenship/pass port of the students and their
parents/guardian/guarantor. Statement of regular income sources of parents/guardian, along with supporting documents where required. Brief statement of assets and liabilities of parents/guardian Copies of ownership certificates of the proposed property to be mortgaged or Government Securities/FDRs to be pledged.
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3.14 OTHER PRODUCT AND SERVICES

3.14.1 REMITTANCE: Nepal SBI Remit: This is a newly launched online international remittance service which offers a formal channel for the Nepali community residing all around the world to send money to Nepal
Domestic Remittance Service: The bank started domestic remittance service in partnership with Prabhu Money Transfer. This product allows customers to send and receive money toand from any part of the country.
SBI Nepal Express Remit: This is a unique remittance product- the only one of its kind in Nepal. Nepali migrant workers residing and working in India can remit money at minimal charges from more than 14,000 branches of State Bank of India located in various parts of India. We are now receiving 600 remittances in averages per day through the service channel.
Indo-Nepal Remit: This is another remittance-from-India product launched by Reserve Bank of India which has chosen Nepal SBI bank to disburse the remittance money to the beneficiaries in Nepal. WUMTs/PMTs Remittance: Customers can also receive remittance money send from abroad via remittance channels of Western Union Money Transfer as well as Prabhu Money Transferr at the branches of Nepal SBI Bank.
3.14.2 CARD Nepal SBI Card: This is an ATM cum Debit card which can be used at 68 ATM terminals of the bank as well as more than 24,000 ATMs of State Bank of India. Presently, there are more than 200,000 users of Nepal SBI Card which is rising very rapidly.
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Bharat Yatra Card: Popularly known as BYC, this is a Nepalese Rupees denominated pre-paid card made for cash withdrawal and purchases while visiting India mainly for medical treatment, education, tours etc. Bank has already sold more than 14,000 Bharat Yatra Cards since its launch in November 2008.
Vishwa Yatra Card: Recently launched Vishwa Yatra Card is USD denominated international prepaid card which the customers can use for cash withdrawal in all the ATM terminals under VISA network in any part of the world and for purchases.
3.14.3 ALTERNATIVE DELIVERY CHANNELS
Mobile Sakha: Mobile Sakha is mobile based banking service delivery channel which allows customers access various banking services like fund transfer, balance inquiry, bill payments, statement request, alert services etc.
Internet Banking: This state-of-the-art online banking channel provides customers with a PC and internet connection access to banking services 24x7 from anywhere
Automated Teller Machine: Nepal SBI Bank has one of the largest network of ATM terminals both locally and internationally. Presently, the bank has 67 ATM terminals around the country and has access to more than 25,000 ATMs of State Bank of India group.
Auxiliary Services:
Utility Bill Payment: Customers both accountholders and non-accountholders of the bank can pay their telephone bills, insurance premium, school and college fee at the branches of Bank free of cost. Safe Deposit Locker:
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This is one of the popular auxiliary services of the bank. Presently customers can avail the service from 25 branches of the bank.
3.15 BRANCHES
Inside Kathmandu Valley Branches

o o o o o o o o o o o o o o o o
Eastern Region Branches

o o o o o o o o o o
Bhaisepati Bhaktapur Boudha Commercial Branch Dallu Durbar Marg Main Branch Gaushala Gongabu Gwarko Kalanki Kuleshwor Maharajgunj New Baneshwor New Road Patan, Jawalakhel Sinamangal
Bargacchi Biratnagar Birtamod Damak Dharan Ilam Itahari Lahan Terahthum Pension Paying Office, Dharan
Central Region (Other than Kathmandu Valley) Branches

o o o
Birgunj Hetauda Janakpur

o o o o
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Teku Embassy of India Ext. Counter, Lazimpat BGSN Ext. Counter, Thamel Indian Visa Service Centre, Lazimpat
o o o
Narayangarh Rampur CGI Ext. Counter, Birgunj
Western Region Branches

o o o o o o o o o o o o o o
Abu Khaireni Baglung Bhairahawa Butwal Damauli Gulmi Palpa Parasi Pokhara Sandhikharka Sishuwa Srijana Chowk Waling Pension Paying Office, Pokhara
Mid-Western Region Branches

o o o
Dang Nepalgunj Surkhet
Far-Western Region Branches

o o o
Dhangadi Mahendra Nagar Tikapur
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3.16 MANAGEMENT TEAM

Shri Arjun Nepal: Shri Tulasi Ram Gautam: Shri N. K. Chari: Shri Madhukar Anand: Shri Binod K. Mishra: Shri Dev Raj Adhikari: Regional manager Eastern region Chief Credit officer Managing director and CEO Chief operating Officer Chief Operating Officer Regional Officer western region
3.17 HEAD OF DEPARTMENTS/ UNITS

Shri Chappi Raj Panta: Shri Bigyan Adhikari: Shri Sushil Chandra Mahat: Shri Amlesh Ratna Sthapit: Shri Badri Lal Amatya: Shrimati Rashmi Kharel Karmacharya: Shrimati Roshani Bharati : Shri Sushil Kumar Sharma: Shri Umesh Bahadur Karki: NPA. Shri Ramesh Ghimire: Shri Kamal Ram Bhattarai : Shri Sudeep Khanal: Shri Bishnu Dev Yadav: Law and share and company secratary Reconciliation Internal Audit Commerical Branch Main Branch Systems Card Treasury Credit Appraisal and sanction Human Resources Accounts and Administration Business Development Credit documentation, follow up, supervision and
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3.18 FINANCIAL HIGHLIGHTS

Nepal SBI Bank Limited is a major national level financial services provider engaged in various retail and commercial banking services. Nepal SBI Bank Ltd. (NSBL) is the first Indo- Nepal joint venture in the Nepalese financial sector sponsored by three institutional promoters, namely State Bank of India (SBI), Employees provident Fund and Agriculture Development Bank of Nepal through a memorandum of understanding signed on 17th July 1992. From the time of its operation, the bank is performing well. The major financial highlights of NSBL Bank are as follows.
Nepal SBI Bank LTD. Balance sheet as on.. (In lacks) Particulars Total share holders fund Share Capital Reserves Liabilities Deposit account Debenture Bills Payables Other liabilities Assets Advances Investment Liquid assets 151317.48 132861.82 11764.40 174805.48 163056.33 34412.61 213657.71 189110.22 48778.26 279572.21 2000.00 629.47 2336.64 34896.24 2000.00 723.88 4283.33 424154.43 2000.00 806.85 5128.12 2008/09 (2065/66) 17126.07 12243.39 4882.68 2009/10(2066/67) 24505.54 18613.24 5892.30 2010/2011(2067/68) 28792.93 21029.66 7763.27
Customer Satisfaction with service of Nepal SBI Bank. Net fixed assets Other assets Total 2535.81 3184.89 301664.40 4182.45 4019.92 380476.79 4170.03 5166.13 460882.34
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Nepal SBI Bank ltd Income statement From..to.(In lacks) Particular Interest income Interest expenditure Fee, commission and exchange income 2008/09 14604.46 8247.0 1401.31 2009/10 22697.04 14336.94 2020.20 2010/11 31042.32 20960.38 3176.97
Other incomes Operating expenses Operating profit Profit Before tax Profit after tax
527.90 2239.66 4423.66 4430.32 3163.73
787.97 3438.50 5702.90 5383.62 3917.42
951.73 4450.73 6742.52 6534.69 4645.65
46
Deposits( in billions)
45 40 35 30 25 20 15 10 5 0 2008/09 2009/10 2010/11 Deposits( in billions)
Lending and investment (in billions)

45 40 35 30 25 20 15 10 5 0 2008/09 2009/10 2010/11 Lending and investment (in billions)
47
700000 600000 500000 400000 300000 200000 100000 0 2008/2009 2009/2010 2010/2011 Deposit Advances Total Business
Particulars 2008/2009 2009/2010 2010/2011
Deposit 279572 348,962.00 424,154.00
Advances
Total Business 151,317.00 430,889.00 174,805.00 523,767.00 213,658.00 637,812.00
Major Financial ratios (in %) Particulars/ years DPS EPS Return on net fixed asset Interest income/loan & advances ROE 18.6 16.1 16.2 2008/09 42.1 36.2 111.41 11.24 2009/10 17.5 23.2 93.66 9.80 2010/2011 17.5 24.9
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HIGHLIGHTS:
Deposit of the Bank grew up significantly from 34.9 billion to 42.4 billion in year 2010/ 11. Recording the growth of 7.5 billion. Thus growth rate in deposit is 17.69% in year 2010/11. Nature of deposit consist of current account, saving account and call deposit.
Lending and Investment of bank also grew up from 33.8 billion to 40.3 billion recording the growth of 6.5 billion in years 2010/11.Lending and investment includes cash credit, hire purchase loan, housing loan, education loan, retail loan and long term project finance.
Nonperforming assets is down to 1.10% from 1.48% on year to year basis.
Share holders fund and return on equity increased from 16.1% to 16.2% in fiscal year 2010/11.
Return on net fixed asset grew up significantly to 114.4% from 93.6% in previous fiscal year.
Customer base of the company riches to 308644 after significant incensement of 109680 customers in the fiscal year 2010/11.
DPS of the bank remain constant 17.5% in fiscal year 2009/10 and fiscal year 2010/11 which was 42.1% in fiscal year 2008/09.
Net profit of the bank increased to Rs. 464.5 million From 391.7 million. Profit grew up by 18.6% in comparison to previous year.
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3.19 SWOT ANALYSIS
Strengths: Bank with 55% investment of SBI Bank (largest and government holding bank of India, and investment of employees provident fund Nepal. (A government holding of Nepal) Only bank in Nepal issuing prepaid debit card. (BYC and VYC). Managerial and technical assistance from SBI bank ltd.
Weakness: Poor delivery of ATM visa Card High labor turnover.
Opportunity: Growing market Large untapped rural market.
Threats: Taught competition. Un stable political environment Changing banking policies. Rapid Changing technology.
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3.20 OVERVIEW OF PATAN BRANCH

Nepal SBI Bank was incorporated in Nepal on April 28, 1993, as a public limited company. It commenced operations on July 7, 1993, and is principally engaged in the business of banking, as defined in the Banks and Financial Institutions Act, 2006. Bank was established with aspiration of BANKER TO EVERY NEPALI and commitment of FIRST IN CUSTOMER SATISFACTION. Nepal SBI Bank Patan branch came into operation on 14th Feb, 2003 with the team of four employees as 18th branch of Nepal SBI bank ltd. Initially, branch was limited to the cash collection and cash payment. Since the establishment, branch performance remains excellent. Now it has 12 employees and operated as full fledge branch. Now branch consists of Customer service Department, operation Department, Loan Department, marketing department. This branch provides draft facilities, SWIFT/RTGS, issuance and purchase of FCY and TC, locker services, LC, and Bank guarantee. This branch belongs to one of the highest customer base branch and also popular as cash collection centre. Currently branch have 5121 saving account holders, 596 current account holder and 230 call deposit and fixed deposit account holders. Likewise, branch has 23 cash credit account and 1 trust receipt. Branch has significant number of advances. There are 12 hire purchase loan, 11 housing loan, 82 education loan, 116 other advances. CASA deposit level of branch was increased by 19.88% compare to the last year and budgeted level of deposit has been surpassed at the end of the June 2012. Interest paid on deposit was increased by 57.87% as compared to the corresponding period of last year. By the end of the period 2010-2011 branch was having deposit of Rs 5, 54,87,00,00 and having advances of Rs.229819000 with the total profit of Rs.19708000. But by the end of June 2012 bank was having deposit of Rs. 1102961000 and having advances of Rs, 336619000 with total profit of Rs. 36794000 with significant increment of 87% compare to previous fiscal year.
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4. RESEARCH METHODOLOGY
4.1 RESEARCH OBJECTIVE 4.2 RESEARCH DESIGN 4.2.1 SAMPLE DESIGN 4.2.2 DATA COLLECTION DESIGN 4.2.3 METHODS OF DATA COLLECTION 4.2.4 DATA ANALYSIS
52
4.1 RESEARCH OBJECTIVE

To study and analyze the level of Customer Satisfaction with Service of Nepal SBI Bank Ltd. Patan Branch, Kathmandu Nepal.
4.2 RESEARCH DESIGN

Both the primary and secondary data were used. The research design was a descriptive research design.
4.2.1 SAMPLE DESIGN: Population: Sampling unit: Sample size: Instrument: Sampling technique : Data Collection Tool: Location: Duration: Customers of NSBL Bank Patan Branch Kathmandu. Individual Customer. 76 Sample survey Non-Probability sampling technique-Convenience Sampling Questionnaire NSBL Bank Patan Kathmandu, 8 weeks
4.2.2 DATA COLLECTION DESIGN: For the purpose of data collections and to get proper information, various methods ware adopted. To get an insight of the subject matter both primary and secondary data collection method was adopted. Primarily data collected was done through questionnaire and personal interaction with the customer and secondary data were collected through websites, magazines and bank booklet.
53
Data Collection Design
Primary Data
Secondary Data
Questionnaire
Personal Interactions
Related websites, bank booklets, magazine, newspapers
Customer Satisfaction with service of Nepal SBI Bank. 4.2.3 METHOD OF DATA COLLECTION Primary data: Personal Interaction method:
54
During the period of summer training I made interactions with some of the customer who were ready to give some more information and their feeling regarding various product and services of NSBL and their understanding regarding employees behavior and other physical facilities provided by Bank. Similarly I made conversation with some customer who did not ready to fill up the questionnaire. The objective was to draw a general understanding about the things that can excel the services of the Bank. Questionnaire: The objective of the questionnaire was to get the information about the customers view towards the services offered by bank and to analyze the satisfaction level of services offered by the bank. A standard structured questionnaire was designed to collect the required information where five point Liker type scale, and multiple-choice scale, information were used
Secondary Data: Secondary data was collected through various websites: Nepal Rastra Bank, Nepal SBI Bank Ltd. Google.com, Banking promotion centre and from various news papers: Karobar daily, Arthik Aviyan daily, Boss magazine to gat comprehensive idea about banking industry of Nepal.
During the training, I made discussion and interaction with bank employee regarding various activities and procedures of various department of the branch. Employees interaction, working and behavior with customer were observed to have an idea about their mindset and preference for the customers.
Customer Satisfaction with service of Nepal SBI Bank. 4.2.4 DATA ANALYSIS AND PRESENTATION
55
Customer satisfaction is a long-term strategy. Satisfaction implies a conscious and deliberate evaluation of outcomes. If expectations are matched, the outcome, of course, is satisfaction. When alternatives perceived as falling short in significant ways, dissatisfaction is the result. Satisfaction and dissatisfaction, of course, represent extreme points on a continuum. Customer satisfaction is the result of a customers perception of the value received in a transaction or relationship where value equals perceived service quality relative to price and customer acquisition costs relative to the value expected from transactions or relationships with competing vendors. Consumers form expectation of products or services prior to their purchase. These expectations are then either confirmed or disconfirmed after the product or service is purchased or used. A Customer will be satisfied when the outcomes of the service meet his or her expectations and when the services quality is more than those expectations; the service provider is having the delighted customer. Contrary when the perceived overall service quality is below or less than his or her expectation, than the customer is dissatisfied. The number of commercial banks is increasing in Nepal due to the attractive market opportunity available in the country, especially after the advent of democracy. Nowadays, the performance of these commercial banks has come under question in terms of customer satisfaction.
In this study, a standard structured questionnaire was designed to collect the required information. Numbers of questions were included in the questionnaire to study the customer satisfaction about services provided by Nepal SBI Bank Ltd. Patan Branch, Kathmandu. During the course of my analysis some of the key questions were individually dealt and inferences were made based on those specific Questions.

1. saving 2. Current 3. Saving and current
56
What type of account do you maintain in this branch?
Above diagram shows that 48.7 % respondent respond that they have saving account with patan branch. 25.0% have current account and 26.3 % respondent have current and saving account in this branch. Majority of the respondent are saving account holder with the branch but the respondent having current account and current &saving account holder are somehow equal. Here current account refers to the account of any organization, NGOs, company or any business houses because by rule those organizations are not allowed to open saving account in the name of organization.
From above diagram we can say that the non- individual customer or institutional customer base of the branch is also good. Similarly, saving account includes both normal saving and fixed deposit or recurring account. As like any other bank, number of saving account holder at NSBL is also high than anyone else.
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1 < 6 months
2. 6 months 1 year
3 1 year- 2year
> 2 years
How long have you been a customer with bank (Branch)?
Above diagram depict that 22.37% respondent customer have been mentions relations with this branch since last 1 to 2 years, 26.32% respondent customer have been mentions relation with bank with in last six month. Similarly, 11.48% respondent customer have been maintained their relation since last two years. And remaining 39.47% respondent customer belongs to six months to one year. Overall from this diagram we can conclude that number of customer have been growing smoothly. The number of customer includes saving account holders, loan customer, current account holders, and remittance customer and so on. Since last few years customer base have been growing smoothly, which indicate the customer friendly policies and environment of the Nepal SBI bank Limited.
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Scale: 1-Very easy/Very Satisfied, 2-Easy/Satisfied, 3-Normal/Somewhat Satisfied, 4-Difficult/Dissatisfied, 5-Very Difficult/ Strongly Dissatisfied
How do you rank the procedure of account opening of the bank?
Statistics How do you rank the procedure of a/c opening of the bank? N Valid Missing Mean Std. Deviation 76 0 4.0132 .80818
Analysis shows that 26.32% of respondents respond the account opening procedure as very Easy, 52.26% of respondents responds as easy and 11.84% of respondents respond as Normal. The average calculated on the basis of points allotted is 4.013. It indicates that customers are satisfied with a/c opening process of the bank. The deviation calculated on the basis of points allotted is 0.808. It means the volatility of customer can be more than average by 0.808or also can be less than average by 0.808.
Customer Satisfaction with service of Nepal SBI Bank. Scale: 1- Strongly disagree/ strongly dissatisfied, 2- Disagree/Dissatisfied, 3-Somewhat agree/Somewhat satisfied 4- Agree/Satisfied, 5- Strongly agree/Very satisfied
Do you agree that, maintaining minimum balance is not high and reasonable in this bank?
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Statistics Do you agree that, Maintaining minimum balance is reasonable and not high in this bank? N Valid Missing Mean Std. Deviation 76 0 4.0132 1.05190
Analysis shows that 38.2% of respondents strongly agree with maintaining minimum balance is not high and reasonable in this bank, 39.2% of respondents agree with the same and 9% of respondents somewhat agree with the same. Here calculated mean is 4.013 which means respondent are (agrees) satisfied that minimum balance is not high and reasonable. Thus we can conclude that respondents are satisfied with minimum balance they have to maintain in their respective account/s. And calculated standard deviation is 1.05. It means the volatility of customer can be more than average by 1.05 or also can be less than average by 1.05.
Customer Satisfaction with service of Nepal SBI Bank. Scale: 1- Very poor/ strongly dissatisfied, 2- Poor/Dissatisfied, 3-Normal/Somewhat satisfied, 4- Good/Satisfied, 5- Very good/Very satisfied
How you rate the loan procedure of this bank?
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Statistics How dou you rate the loan procedure of the bank? N Valid Missing Mean Std. Deviation 51 25 2.9412 .54449
In the analysis, 76.47% respondent respond that bank loan procedure is Normal 9.80% says loan procedure is good whereas 11.76 % of respondent says that loan procedure is poor but only 1.96% respond as loan process is very poor. And Normal Implies that customers are somewhat satisfied with loan procedures of the bank. The calculated mean value is 2.94 (approximate to 3) that means customers are somewhat satisfied. Likewise standard deviation is 0.544 which refers that volatile of respondent is 0.689 form mean value. Less the standard deviation refers to less volatility of from mean. It means the volatility of customer can be more than average by 0.544 or also can be less than average by 0.544.
Customer Satisfaction with service of Nepal SBI Bank. Scale: 1-Very high/Strongly Dissatisfied, 2 High/Dissatisfied, 3-Normal/Somewhat satisfied, 4-low/Satisfied, 5-Very low/ Very satisfied
How would you describe the bank interest in loans?
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Statistics How do you describe the bank interest on loan? N Valid Missing Mean Std. Deviation 51 25 2.3529 .74360
The data shows that56.86% of respondents respond the bank interest in Loans are high and 27.45% of respondents respond bank interest in Loans are Normal. And 7.84% respondent respond the bank interest are very high. Likewise 7.84% of respondent respond that interest rate is low but not one respondent respond as interest rate is very low. The calculated data shows that Mean value is 2.3.5(less than 3.5) which depicts the bank interest in loans is high. Thus, respondents are dissatisfied with bank interest in loan. And deviations of respondent from mean is 0.743 i.e. calculated standard deviation is 0.743.
Customer Satisfaction with service of Nepal SBI Bank. Scale: 1-Too expensive/Strongly Dissatisfied, 2 Expensive/Dissatisfied, 3-Normal/Somewhat satisfies, 4-Low/Satisfied, 5-Very low/ Very satisfied
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How would you describe the bank charges in Inter branch Cash deposits and Withdrawal services?
Statistics How do you describe the bank charges in the inter branch cash deposit and withdrawal services? N Valid Missing Mean Std. Deviation 76 0 4.2895 .81348
Here, 47.37 % of the respondent respond to inter branch cash deposit and withdrawal as good, 38.16% respond it as fair and 10.53% respond as normal and 3.95 % says that it is expensive. It shows that most of the customers are satisfied with inter branch cash withdrawal and deposit services. Similarly, Calculated mean value is 4.289 which implies that customers are satisfied with the inter branch cash deposit and withdraw facilities provided by Bank. And standard deviation is 0.813. It means the volatility of customer can be more than average by 0.813 or also can be less than average by 0.813.
Customer Satisfaction with service of Nepal SBI Bank. Scale: 1-Too expensive/Strongly Dissatisfied, 2 Expensive/Dissatisfied, 3-Normal/Somewhat satisfies, 4-Low/Satisfied, 5-Very low/ Very satisfied
How would you describe the bank charges on bank statement and renew of cards?
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Statistics How do you describe the bank charges on bank staatement and renewal of cards? N Valid Missing Mean Std. Deviation 76 0 2.0921 .69623
Above diagram analysis shows that 59.21% respondent respond that charge on bank statement and renewal of card is expensive, and 17.11% respondent says that charge on bank statement and renew of card is too expensive where as 21.05% respondent respond this charges as normal charge. On the other hand calculated mean is 2.092 which means customers dissatisfied with the bank charge on bank statement and renewal of cards. The calculated standard deviation is 0.696.This infers that degree of departure from mean is 0.696. It may be more than maen by 0.696 or less then mean value by 0.696.
Customer Satisfaction with service of Nepal SBI Bank. Scale: 5- Always/Very satisfied, 4-Often/Satisfied, 3-Sometime/Somewhat Satisfied, 2-Rarely/Dissatisfied, 1-Never/Strongly dissatisfied
Do you always get prompt services whenever you visit branch?
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Statistics Do you always get prompt services whenever you visit branch? N Valid Missing Mean Std. Deviation 76 0 4.3947 .73174
In the analysis, 53.95% of the total respondents respond that they always get prompt services, 31.58% says often and 14.47 % says sometimes. By analyzing this we can says that customer are satisfied with the services provided by branch. They often get response from branch when they visit the branch. Similarly, calculated mean value is 4.39 which depicts that customers are satisfied with bank service. Similarly, standard deviation is 0.721 which means deviation of respondent form mean value is 0.731. Lower the standard deviation higher will be the uniformity.
Customer Satisfaction with service of Nepal SBI Bank. Scale: 5- Excellent/Very satisfied, 4-Good/Satisfied, 3-Normal/Somewhat Satisfied, 2-Poor/Dissatisfied, 1-Very Poor/ strongly dissatisfied
Rate the teller services in this branch
65
Statistics Rate the teller services in this branch? N Valid Missing Mean Std. Deviation 76 0 4.2368 .70934
Here 44.74%, 39.47% and 15.79% customer gives their response as excellent, good and normal respectively regarding the teller services at patan branch. But no respondent responds that teller service of patan branch is poor or very poor. Majority of respondent rank good and Excellent regarding teller services of patan branch. The table shows Mean is 4.23 which indicate respondents are satisfied with the teller service at this branch. Standard deviation is 1.024 i.e. deviation is 1.024 from mean.
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Scale: 1-Rude/Strongly dissatisfied, 2-Unprofessional/Dissatisfied, 3-Professional/Somewhat Satisfied 4-Helpful/ Satisfied, 5-Friendly/Very Satisfied Rate the information and customer query services of this branch?
Statistics Rate the information and customer query services of this branch N Valid Missing Mean Std. Deviation 76 0 4.3421 .74032
The diagram depicts that 48.68% of respondents rate the information and query service as a excellent, 38.16% as good, 11.84% as normal. This data clearly explain that staffs at this branch are prompt to any query of the customers. And only1.32% say that information and customer query services are poor of the branch. Here the mean is 4.34 which indicate that respondents are satisfied with information and query service of this branch. And deviation is 0.740 from mean.
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Scale: 1-Rude/Strongly dissatisfied, 2-Unprofessional/Dissatisfied, 3-Professional/Somewhat Satisfied 4-Helpful/ Satisfied, 5-Friendly/Very Satisfied
How would you generally describe staff in this branch?
Statistics How do you generally describe staff in this branch? N Valid Missing Mean Std. Deviation 76 0 4.2895 .78001
From above diagram it can be depict that staff of this branch are friendly, helpful and professional, as 46.05% respondent respond that staffs are friendly, 39.47% helpful and 11.84% as a professional. But 2.63 % respondent that staff are unprofessional. The calculated mean is 4.289 which means that customer are satisfied with employees of the branch. Staffs are friendly and helpful and customers are satisfied with staff at this branch. But standard deviation is 0.78. Which means that volatility is of respondent is 0.78 from mean value.
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Scale: 5-Very High/Very satisfied, 4-High/Satisfied, 3-Normal/Somewhat satisfied, 2-Low/Dissatisfied, 1-Very Low/ Strongly Dissatisfied
How would you describe the bank interest in term deposit?
Statistics How would describe the bank interest in term deposit? N Valid Missing Mean Std. Deviation 76 0 3.3684 .81391
Diagram shows that 44.74% of Customer takes interest on term deposit as a normal rate. But 34.21 % respondent says that interest rate is high and 13.16 % says low. So most of the customers are somewhat satisfied.
From above table mean is 3.368 that means the bank interest in term deposit is normal. Thus, respondent are somewhat satisfied with the bank interest in term deposit.
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Scale: 1.yes 2. No
Do you think the bank should provide the cash withdrawal facility from any branches of this bank for free of cost?
From above diagram it is clear that 90.8 % respondent responds that bank should provide the cash
withdrawal facility from any branch of this bank for free of cost. And 5.48% customer says that bank should not provide such facilities.
Most of the customer wants free any branch banking service. With the advancement in banking technology major bank and financial institute are providing free any branch banking services to their customers. Nepal SBI bank Ltd. Has been providing free any branch banking services to its new customers but old customer are still paying for inter branch services .

Scale: 5. Highly Satisfies all satisfied 4. Satisfied 3.Moderately Satisfied 2. Dissatisfied
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1. Not at
Rate the overall Service Satisfaction:
Statistics Rate the overall service satisfaction: N Valid Missing Mean Std. Deviation 76 0 4.1579 .58997
Above diagram depict that 67.11% of the respondent respond as they are satisfied with overall services provided by this branch and 25.00% respond that they are highly satisfied with overall services provided by branch. Likewise, 6.58% are moderately satisfied and only1.32 % are not satisfied with the overall services of branch. The calculated mean is 3.157 which indicate that customers are satisfied with overall services provided by branch. The calculated standard deviation is 0.5899 which means volatility of customer either may be more then mean by 0.5899 or less then by 0.5899 by mean.
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5. FINDINGS
Major findings
Customer base of the branch have been increased significantly since last few years. Though loan procedure of bank is normal, respondent respond that interest on loan is high. Loan amount is limited to the seventy five percentage of the total valuation of the property. NSBL is only bank which provides prepaid visa debit cards such as bharat yatra card demonstrated in Indian currency and bishwa yatra card demonstrated in US Dollar. Delivery of visa debit card is too late. (45 days) Most of the respondent customer wants free cash withdrawal facility from any branch of the bank for free of cost. Most of the customers are satisfied with various services provided by bank except interest on loan and charges on bank statement and renewal of cards. Overall service of branch is seems to be satisfied.
72
6. SUGGESTIONS
Morning and evening banking facilities should be provided. Delivery of Visa debit card should be made faster as soon as possible. Bank should provide cash withdrawal facility form any branches of bank for free of cost. Compulsion of introducer for account opening process should be removed or replaced by other alternatives. Tellers should given more transaction limit without any approval from operation in charge.
73
7. LIMITATIONS
As internship was to be completed within limited time period, it was impossible to know about all activities of organization in detail. The analysis of project was based on observations and interpretation on the basis of sample survey. And my individual understanding and knowledge gained during internship period. Due to the organizational policy of maintaining some material and information confidential, I was unable to analyze the various critical facts and issues. Since my project is consigned to only one topic all the learning and collected information cannot be presented in this report. Though data were collected without any bias, the study May not be representative enough because of the small sample. Another limitation could be lack of knowledge. Being a student I undertake this project as a learning experience. I have tried my best to be as authentic and as accurate as possible in the research analysis taking the help of my project mentor on relevant primary and secondary data.
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8. CONCLUSION
The number of commercial banks is increasing in Nepal due to the attractive market opportunity available in the country, especially after the advent of democracy. Nowadays, the performance of these commercial banks has come under question in terms of customer satisfaction. New players are coming who will necessarily intensify the competition. New products and new schemes are being offered by the banks. To enjoy good share in market and profit almost all banks small and big banks are adopting latest technologies to provide excellent services to their customers. Though they have adopted new technologies but not been able to satisfy their customers. The reason behind, they have not been able to deliver services according to needs and wants of customers. And those banks who could not deliver better services to its customers they wouldnt survive in this competitive market. With the commitment of FIRST IN CUSTOMER SATISFACTION, Nepal SBI bank ltd. is able to cater their services effectively to its customer. Customer base of the Bank has being increasing significantly since last few years. Bank has continues focus on delivering services as per the need and demand of the people. NSBL has been tremendously out performing from the day of its inceptions and much more focused and aware about the needs of its customers and the potential customers.
Although banks are much more focused about the needs of customers there are some loopholes that should be taken in to consideration. If they look into the loopholes they can excel their service which can be an edge for them to compete in this competitive market. There are many ways to improve customer satisfaction. Some strategies are: building relationships with customers, superior customer service, unconditional guarantees, efficient complaint handling. Customer satisfaction leads to competitive advantage in market place by differentiation, product quality, speed, unified corporate purpose etc.
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9. LEARNING FROM SUMMER TRAINING

During the internship of eight weeks, I came to realize the following things One should not only know to attract a customer but also should be able to retain them.
Importance of the time management and the need of the communication skills are very much needed.
The customers are the main drivers of any financial institutions, they should be pleased by offering the quality services which are basically depends on the quick service and the pleasing personality of the staffs.
Behavioral issues are most important inside the organization. Customer feel satisfied when they are behaved properly the misbehavior of any personnel of organizations adversely affects the organizational image.
One should always try to find out what is going inside the customers mind and behave according to the situation.
Readiness to work and showing and never say no attitude are the keys towards success.
Theoretical and practical knowledge are different things but one who has strong theoretical knowledge and great practical skills of performing work become very much successful in future.
The corporate working environment is competitive so to get success one has to become best among the goods.
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10. REFERENCES
Kothari, C.R., Research Methodology, New Delhi, New Age International pvt. Ltd, 2004 www.nepalsbibank.com.np www.nrb.org.np www.wikipedia.com www.google.com
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11. ANNEXURE
Questionnaire
Questionnaire
I am Digar Dev Pandey an MBA-IB student from FMS, BHU, Varanasi. As a part of my curriculum, as a summer trainee I am doing a research on Customer Satisfaction with Service of Nepal SBI Bank Ltd. Patan Branch, Kathmandu Nepal. For understanding the details your valuable inputs will be of great help. The information provided will be analysed for academic purpose and will be kept confidential. I) What type of account do you maintain in this branch? a. Saving account b. Current account c. Saving & Current account
2) How long have you been a customer with bank (Branch)? a.
< 6 months
b. 6 months 1 year
c. 1 year- 2year
d.
> 2 years
3) How do you rank the procedure of a/c opening of the bank? a. Very easy b. Easy c. Normal d. Difficult e. Very difficult
4) Do you agree that, maintaining minimum balance is reasonable and not high in this bank? a. Strongly agree b. Agree c. somewhat agree d. Disagree e. Strongly disagree
5) How you rate the loan procedure of this bank? a. Very good b. Good, c. Normal, d. Poor e. Very poor
6) How would you describe the bank interest on loans? a. Very high b. High c. Normal d. Low e. Very low
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7) How would you describe the bank charges in following services? a) Inter branch Cash deposits and Withdrawal 1- Too expensive 2-Expensive 3- Normal 4-Fair 5-Good
b) Charge on bank statement and Renew of Cards 1- Too expensive 2-Expensive 3- Normal 4-Fair 5-Good
8) Do you always get prompt services whenever you visit branch? a. Always b. Often c. Sometimes d. Rarely e. Never
9) Rate the following of this branch using a) Teller services 1-Excellent 2-Good 3-Normal 4-Poor 5- Very poor.
b) Information & customer query services 1-Excellent 2-Good 3-Normal 4-Poor 5- Very poor.
10) How would you generally describe staff in this branch? a. Friendly b. Helpful c. Professional d. Unprofessional e. Rude
11) How would you describe the bank interest in term deposit? a. Very high b. High c. Normal d. Low e. Very low.
12) Do you think the bank should provide the cash withdrawal facility from any branches of this bank for free of cost? a. Yes b. No
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13) Any suggestion you feel worth mentioning to excel the services of Nepal SBI Bank, Patan branch. ............................................................................................... 14) Rate the overall Service Satisfaction: 1-Highly Satisfies satisfied 2-Satisfied 3-Moderately Satisfied 4-dissatisfied 5- Not at all
Personal Detail
NAME --ADDRESS --AGE GROUP GENDER OCCUPATION: ANNUAL INCOME: : -----------------------------------------------------------------------------------------------------
: ----------------------------- -----------------------------TEL:-----------------------------------------
: :
18-29 Male Business Housewife
30-39
40-49 Female Professionals Employee
50+
Students Farmer
< Rs.100, 000
Rs.100,000-Rs.300,000
Rs.300,000-Rs.500,000
> Rs. 500,000
Thank you for your Co-operation.

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Customer Satisfaction with service of Nepal SBI Bank.

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

2.1 HISTORY OF BANKING IN NEPAL

Customer Satisfaction with service of Nepal SBI Bank.

Customer Satisfaction with service of Nepal SBI Bank.

Customer Satisfaction with service of Nepal SBI Bank.

2.2THE BANKING INDUSTRY: CURRENT SITUATION

Customer Satisfaction with service of Nepal SBI Bank.

Customer Satisfaction with service of Nepal SBI Bank.

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

.2.3 BANK and FINANCIAL INSTITUTIOS IN NEPAL:

Class A: Commercial Banks

Customer Satisfaction with service of Nepal SBI Bank.

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Class C: Finance Companies

Operation Date (A.D.)

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

2009/03/20 2009/04/29 2009/05/20 2009/12/1 2009/12/28 2010/02/04 2010/07/21 2010/09/23 2010/11/09

140 165 140 110 700 100 120 140 110

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

3. Organizational Profile 3. ORGANIZATIONAL PROFILE

Customer Satisfaction with service of Nepal SBI Bank.

OVERVIEW VISION AND MISSION

3.7 BOARD OF DIRECTORS 3.8 ORGANIZATION STRUCTURE

Customer Satisfaction with service of Nepal SBI Bank.

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

3.2 VISION AND MISSION

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

3.5 STRATEGIC OBJECTIVES

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

3.6 CORPORATE INFORMATION

Customer Satisfaction with service of Nepal SBI Bank.

Internal Auditor: Company Secretary:

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

3.7 BOARD OF DIRECTORS

Ms. Hasana Sharma Chairperson Representing employees provided fund

Mr. Hemant G. Contractor Director Representing State Bank of India

Mr. Rajiv Pal Singh Director Representing State Bank of India

Mr. S. K. Bhattacharyya Director Representing State Bank of India

Mr. Manoj Kumar Agrawal Director Representing Public Shareholders

Mr. Niranjan Kumar Tibrewala Director Representing Public Shareholders

Mr. Mohan Raj Joshi Director Independent Professional Expert

Mr. N. K. Chari Managing Director Representing State Bank of India

Digar Dev Pandey, MBA-IB, FMS- BHU 2012

Customer Satisfaction with service of Nepal SBI Bank.

3.8 ORGANIZATION STRUCTURE

Chief Credit Officer (CCO)

Chief Financial officer (CFF)

Credit Appraisal and Sanctions

Treasury & forex department Reconciliation department Business development department