CHAPTER 1 INTRODUCTION 1.1 Background Nepal Bank Limited is the oldest commercial bank of Nepal.

It was established 1937 which marked the beginning of an era of formal banking in Nepal. From the very conception and its creation, Nepal Bank Ltd, was as joint venture between the government and the private sector. Out of 2500 equity shares of NRs. 100 face value, 40% was subscribed by the government and the balanced i.e. 60% was offered for the sale to private sector. There were only 10 shareholders when the bank first started. It can be said that Nepal Bank Limited has a history that is unequal to any in Nepal. It was the first one of its kind. It also served as the central bank of Nepal. It is, thus, safe to say that the history of banking sector in Nepal would be incomplete without mentioning Nepal Bank Limited. The service rendered by Nepal Bank to the country and its people is a great one-one that has no parallel. The banking industry is highly competitive, with banks not only competing among each other; but also with non-banks and other financial institutions. Most bank product developments are easy to duplicate and when banks provide nearly identical services, they can only distinguish themselves on the basis of price and quality service. Therefore, customer retention is potentially an effective tool that banks can use to gain a strategic advantage and survive in todays everincreasing banking competitive environment. Aiming for the customer satisfaction is the most challenging task in every organization. Through the satisfied customers, a firm can easily measure the effectiveness of the business, its potential and position in the industries, and the areas that are needed to polish and improve. The research on "Customers preferences of Nepal Bank Ltd" is to know, how the different factors affect the preference of the Nepal Bank by the customers in Nepal. The study basically focuses on those factors which influences the choice of NBL by the customers in Nepal. It focuses on the analysis of the most preferred factor that the customers seek out while opening a new account in a NBL. The findings of this report will be helpful for the NBL to improve on those factors which help to upgrade the banks strategic position for longer period of time. 1

1.2 Problem Statement Since the starting of NBL as the nation's first bank, the sector of the commercial banks has also started to grow rapidly. These commercial banks provide different types of services to attract the customers and retain them. Since the 'pie' of the customers is same, these commercial banks have to share their customers. Thus attracting and retaining those customers is a big challenge. This creates a great competition for Nepal Bank Ltd. However, because of the tight competition of various services, particularly in banks, the perception of the customers and potential customers are also divided according to the services that they want to achieve. Thus it becomes important to know the factors that the customers look out for or seek in a commercial bank; for them to create a new account or to be associated with the particular commercial bank. Aiming for the customer satisfaction is the most challenging task in every organization. Through the satisfied customers, a firm can easily measure the effectiveness of the business, its potential and position in the industries, and the areas that are needed to polish and improve. Keeping the trust of a customer is not an overnight miracle but with full of patience and bountiful of effort. 1.3 Objectives of the Study This is in-depth study of customer satisfaction of Nepal Bank Ltd. The aim of the study is to determine the satisfaction on the services and products delivered by the Nepal Bank Ltd towards their customers to attract other potential customer. There are few objectives that can be the guidance of the researcher/s in reaching for their goal and, in also, measuring the impact of customer satisfaction to their effectiveness in the market. The purpose of this study is briefly outlined below: To obtain first hand exposure to customer relationship within NBL. To observe the views among the customers of NBL regarding the services provided by the bank. To discover the level of satisfaction from the existing customers that can contribute in the success and continuous performance of the bank. To know the factors that affects a customer while opening a new account in a NBL. To identify some measures that could increase the satisfaction level of customers of the bank.

1.4 Research question Is there any relationship between age and banking satisfaction of NBLs customers? Is there any relationship between education level and satisfaction of NBLs customers? Is there any relationship between location of bank and customers satisfaction? Is there any relationship between accuracy of services and customers satisfaction? Is there any relationship between banks offer and customers satisfaction? Is there any relationship between speed of service and customers satisfaction? Is there any relationship between banks credibility and customers satisfaction? Does the NBLs banking service influence the satisfaction of its customers?

1.5 Research Hypothesis In this study the following hypothesis will be framed. Following are the Alternate hypothesis (H1): H1. There is significant relationship between age and customer satisfaction of NBL. H2. There is significant relationship between education level and customer satisfaction of NBL. H3. There is significant relationship between gender and customer satisfaction of NBL. H4. There is significant relationship between occupation and customer satisfaction of NBL. H5. There is significant relationship between accuracy of service and customer satisfaction of NBL. H6. There is significant relationship between speed of service and customer satisfaction of NBL. H7. There is significant relationship between bank location and customer satisfaction of NBL.

Age Education Level Gender Occupation Customer Satisfaction Location of Bank (Dependent variable)

Accuracy of service Offer Speed of Service (Independent variable)

Fig.1 illustrating dependent and independent variables of study

CHAPTER 2 LITERATURE REVIEW AND THEORITICAL FRAMEWORK 2.1 Literature Review According to literature review extracted from source www.wikipedia.com, we can state the following things: A commercial bank is a type of financial intermediary and a type of bank. It is a bank that provides checking accounts, saving accounts, and money market accounts that accepts time deposits. Commercial banks are engaged in the following activities: Processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means Issuing bank drafts and bank cheques Accepting money on term deposit Lending money by overdraft, installment loan, or other means Providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balancer sheet exposures Safekeeping of documents and other items in safe deposit boxes Currency exchange Sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar types of loans granted by commercial bank According to www.theodora.com: Nepals first commercial bank, the Nepal Bank Limited was established in 1937 with headquarter in Kathmandu and branches in other parts of the country. Not so long ago, accessing our own money was about setting aside a couple of hours, getting to the bank before closing time, standing in one queue to get a token and then in another to collect the cash. Those were the pre-economic reforms days, when the banking sector primarily consisted of public sector banks. Cut to the present day and the nature of banking has changed beyond recognition. With ATM cards, simple banking transactions like withdrawing and

depositing money are easier than ever before. For the tech-savvy, there is the option of banking online. The next medium may just be your mobile. Even when it comes to products, the changes have been many. Graduating from simple savings accounts and fixed and recurring deposits, banks now offer a host of products like special savings account and sweep-in-account, no frills accounts and easy receive account. Private sector banks may have taken the lead, but public sector banks, with their vast client base and unparalleled treasury of trust, are evolving their own brand of customer-friendliness. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. The usual measures of customer satisfaction involve a survey with a set of statements using a lickert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of 6

the banking industry will give us an insight into the parameters of customer satisfaction, their preference and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. Banking operations are becoming increasingly customer dictated. The demand for 'banking supermalls' offering one-stop integrated financial services is well on the rise. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. Convergence in the industry to cater to the changing demographic expectations is now more than evident. Bank assurance and other forms of cross selling and strategic alliances will soon alter the business dynamics of banks and fuel the process of consolidation for increased scope of business and revenue. The thrust on farm sector, health sector and services offers several investment linkages. In short, the domestic economy is an increasing pie which offers extensive economies of scale that only large banks will be in a position to tap. With the phenomenal increase in the country's population and the increased demand for banking services; speed, service quality and customer satisfaction are going to be key differentiators for each banks future service. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking, which in turn will help them take positive steps to maintain a competitive edge. The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy 7

way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. The Need to Measure Customer Satisfaction: Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. When buyers are powerful, the health and strength of the company's relationship with its customers its most critical economic asset is its best predictor of the future. Assets on the balance sheet basically assets of production are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary

requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction. What constitutes Satisfaction? The meaning of satisfaction: "Satisfied" has a range of meanings to individuals, but it generally seems to be a positive assessment of the service. The word "satisfied" itself had a number of different meanings for respondents, which can be split into the broad themes of contentment/happiness, relief, achieving aims, and achieving aims and happy with outcome and the fact that they did not encounter any hassle: It appears that what consumers are saying is that they expect good products and services from their bank and that what is important to them is to have courteous and professional employees whom they can trust to explain them; and correct problems when they happen. In the product arena, by far the most important issues surround the checking account. Of importance to consumers is not only the account itself, but the format of the monthly statements which they receive. They expect more from their accounts and want this increased functionality presented in an understandable way. Also, consumers are more sensitive to the pricing of this product, as the "gap" between the importance of the pricing of a checking account and customers satisfaction is comparatively high. 2.2 Theoretical Framework For the satisfaction survey of customers of the Nepal Bank Ltd in the Nepalese financial market, this report has identified certain variables which affect the customers satisfaction. Customer satisfaction of NBL has been identified as the dependent variable whereas the factors like: interest rate, loan rate, customer service, location, bank credibility, different types of accounts offered have been identified as independent variables.

CHAPTER 3: METHODOLOGY AND SAMPLING DESIGN 3.1 Research Design Exploration is the first stage of any research study. This research tries to find out different aspect of customers in Nepal Bank Ltd. Also, this study tries to see the new phenomenon desired by customers in banking sector. So, simply this study is exploratory research. Also, this is a comparative study which can be categorized as co-relational research. Through this study it is known that relation between variable exists. For example, types of profession and type of account are related with each other. In fact, we also can say it is an explanatory research where the independent variables have been ranked to define dependent factor. The research design is based on survey conducted through the questionnaire along with small interviews with the respondents. Survey is done among different respondents of Kathmandu valley in term of their profession. Type of Research: The study will be focused on understanding the Customer Satisfaction of Nepal Bank Ltd. How the different factors like age, education, banking services and many other factors influence the banking preference of individual. Therefore, a quantitative and applied research methodology will be used by this study.

3.2 Sources of Data In any report use of primary and secondary data is equally essential because primary data tells us the current status of the objectives of study. Likewise, secondary data of the past can be compared with the present data to study the subject comparatively. In this study, both primary and secondary data are used. As primary source a questionnaire method was used to collect the data. The primary data will be collected through the distribution of questionnaire. Information will be collected via questionnaire from customers of Nepal Bank Ltd, head office, Dharma path, Kathmandu. The questionnaire consists of questions related to commercial banking sector. Similarly, respondents address, age-group, gender and profession are also asked for making interpretations easily. For 10

more clarification along with questionnaire survey small interview with respondents where taken. Talking about the secondary sources, internet, articles, journals and Google search engines will be used for the collection of data and information for the Literature Review purpose only. Primary data: Questionnaire survey, Interview Secondary data : Previous reports ; Internet

3.3 Questionnaire Design Questionnaire will consist of: Structured questions as well as open ended questions. Single response questions Multiple response questions Lickert scale questions

3.4 Sampling Design Population and Sample Size The population for this research study is customers of Nepal Bank Ltd. Overall; the survey will cover the entire customers using the services of Nepal Bank Ltd in Kathmandu. The sampling units are the customers of NBL, Dharma path branch, Kathmandu. Similarly, the respondents are of different age group and of different profession as student, business, service etc.

Sampling Procedure: At least 50 samples are to be taken. This study will take maximum of 60 samples and will use non-probability sampling technique. Non-probability sampling technique will be used because in this survey of NBL customers a complete list of population element cannot be formed. Under non-probability sampling convenience sampling technique will be used to collect the samples. The sampling is done as per the convenience of the researcher. The questionnaire will be distributed according to the easy availability or first come first serve basis. The questionnaire will also be distributed via friends circle to the customers of NBL they know.

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Chapter 4 DATA ANALYSIS AND INTERPRETATION The study of customer satisfaction has basically used both primary and secondary data. After collecting, the data are checked and if the collected data were found reliable and accurate, analysis of only those data are done in suitable manner to ascertain a reliable report. An attempt is made to discuss not only the preference and behavior of customers but also to know the view of customers toward bank. Different types of statistical methods were used to analyze the collected data. SPPS and Ms Excel program were used for editing, coding, classifying and tabulation. Similarly, frequency distributions, percentages, chi-square test etc, were used to analyze the raw data. 4.1 Age group of respondents Table No 1: Frequency distribution based on Age group Age Group Frequency Percent Less than 18 yrs 3 5.00 18-35 yrs 25 41.67 36-50 yrs 19 31.67 51-65 yrs 12 20.00 More than 65 1 1.67 yrs Total 60 100.00 For data collection 60 samples were taken of different age group. Age group of 18-35 yrs is large sample group followed by age group of 36-50 yrs, then by age group of 51-65 yrs, less than 18 yrs and lastly the age group of more than 65 yrs, as shown in the above table. 4.2 Gender of respondents During research study, out of total sample of 60 respondents, 60% were male and 40% were female. This can be shown from the table below:

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Table No 2: Frequency distribution based on Gender Gender Male Female Total Frequency 36 24 60 Percent 60.00 40.00 100.00

4.3 Age group & Gender of respondents As clearly shown in following table in age group of 18-35, 36-50 and more than 65 years male respondents are high and there is high female respondent in age group of less than 18 years. Both male and female are equally distributed for the age group of 51-65 years. Table No 3: Frequency distribution based on Age group and Gender of respondents Gender Less 18-35 36-50 51-65 More than yrs yrs yrs than 18 yrs 65 yrs Male 33.33% 60% 68.42% 50% 100% Female 66.67% 40% 31.58% 50% 0.00% Total 3 25 19 12 1 4.4 Profession of respondents The respondents of different profession as of government service, private service, business, student, and housewife are selected. The customers of different profession are analyzed in order to know how their response differs to each other. Table No 4: Frequency distribution based on occupation Occupation Frequency Percent Government Service Private Service Business Student Housewife Total 13 12 13 15 7 60 21.67 20.00 21.67 25.00 11.67 100.00

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4.5 Education Level of respondents As shown in the given table, 15 % of respondents lies in the education level of below SLC, 1.67% of respondents lies in the SLC, 28.33% lies at Intermediate level, 35% lies at Bachelor level and 20% of respondents lies at Master and above. Thus most of the respondents lie at the education level of Bachelor. Table No 5: Frequency distribution based on education level Education Level Frequency Percent Below SLC 9 15.00 SLC 1 1.67 Intermediate 17 28.33 Bachelor 21 35.00 Master and above 12 20.00 Total 60 100.00 4.6 Duration of service of NBL being used From the 60 respondents 53.33% of them have been using NBL service for more than 4 years, 18.33% of respondents have been using NBL service for 1-2 years, 16.67% of respondents have been using NBL service for less than 1 year, 6.67% have been using for 2-3 years and 5% of respondents have been using for 3-4 years. As a whole most of the respondents have been using the banking services for more than 4 years, thus most of the respondents are the old customers. Table No 6: Frequency distribution based on Duration of service of NBL being used Time Interval Frequency Percent Less than 1 Year 1-2 yrs 2-3 yrs 3-4 yrs More than 4 yrs Total 10 11 4 3 32 60 16.67 18.33 6.67 5.00 53.33 100.00

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4.7 Types of Respondents A/C Mainly, which type of accounts is hold by respondents are also studied. Most of the respondents have saving account i.e. out of 60 respondents, 80% respondents have saving account i.e. mainly students, housewives, servicers. Whereas mainly business persons have current account i.e. about 11.67%. A new type of account has recently been offered i.e. Loan account which is being used by 5% of the respondents. The percentage of fixed account holder is found to be low in comparison to other types of account holder. Table No 7: Frequency distribution based on Type of account being used Type of Account Frequency Percent Current Account Saving Account Fixed Deposit Account Loan Account Total 7 48 2 3 60 11.67 80.00 3.33 5.00 100.00

4.8 Customers view about improvement in quality of service of NBL Here respondents were asked whether they feel that the quality of services of NBL has improved over time or not. Most of the respondents hold the view that the quality of service of NBL has improved a bit i.e. 63.33% of respondents feels that the quality of service has improved. About 18.33% of respondents think that the quality of service has not changed at all and 15% thinks that quality has vastly improved. Table No 8: Frequency distribution based on Improvement in quality of service of NBL Frequency Percent Vastly Improved 9 15.00 Improved a bit 38 63.33 No change 11 18.33 Worsen 1 1.67 Can't Say 1 1.67 Total 60 100.00

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4.9 Reasons for choosing NBL as preferred bank Customers were asked the main reason for them to choose NBL as their preferred bank. Some of the results has been analyzed and presented as follows: 4.9.1 Gender and Bank Credibility Customers were surveyed whether they the main reason for choosing NBL as their preferred bank was bank credibility. About 48.33% of respondents have chosen NBL for its credibility and 51.67% of respondents have chosen NBL not for its credibility. Table No 9: Frequency distribution based on Bank credibility Frequency Percent No Yes Total 31 29 60 51.67 48.33 100.00

Out of 29 respondents who choose NBL for its credibility, about 65.52% of male respondents said they choose NBL for its credibility and 34.48% of female respondent choose NBL for its credibility. Table No 10: Cross tabulation between Gender and Bank Credibility Gender Bank Credibility Male % Female % Total % Total No 17 54.84% 14 45.16% 31 100.00% Yes 19 65.52% 10 34.48% 29 100.00% Total 36 60.00% 24 40.00% 60 100.00a%

4.9.2Good Bank Offer Most of the respondents do not consider good bank offer by NBL as a major reason for choosing it. About 88.33% of respondents do not consider good bank offer as the factor for choosing the bank and only about 11.67% of respondents consider good bank offer as one of the reason for choosing NBL as their preferred bank. 16

Table No 11: Frequency distribution based on Good bank offer Frequency Percent No Yes Total 4.9.3 Quality of Service Similarly, most of the respondents do not consider quality of service as a major reason for choosing NBL as their preferred bank. Only about 18.33% of respondents have chosen NBL for the quality of service it offers and the other 81.67% of them do not consider it as a factor for choosing NBL. Table No 12: Frequency distribution based on Quality of service Frequency Percent No 49 81.67 Yes 11 18.33 Total 60 100.00 4.9.4 Bank Location One of the main reason of NBLs customers for choosing NBL as their preferred bank has found to be the Banks Location. About 63.33% of the respondents have agreed that the bank location is the main reason for them to choose NBL as their preferred bank. Table No 13: Frequency distribution based on Bank location Frequency Percent No 22 36.67 Yes 38 63.33 Total 60 100.00 53 7 60 88.33 11.67 100.00

4.9.5 Reference from others Similarly, 78.33% of the respondents do not consider reference from others as a major reason for choosing NBL and only 20% of the respondents take into consider reference from others as one of the reason for choosing NBL as their preferred bank.

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Table No 14: Frequency distribution based on Reference from others Frequency No Yes Total 47 12 60 Percent 78.33 20.00 100.00

4.10 Rating of NBL in terms of Quality of Service Respondents where asked to rank certain quality of service of NBL in terms of excellent, good, fair, poor and very poor through a lickert scale and following are the results: 4.10.1 Location of the Bank For the location of Nepal Bank Ltd, most of the respondent has rated it excellent. About 55% respondent has rated the location of the bank to be excellent, and 41.67% of respondent has rated it to be good enough. Table No 15: Frequency distribution based on Location of bank Frequency Percent Excellent Good Fair Total 4.10.2 Location of ATMs About 37.74% of respondents feels that the location of ATMs of NBL are good enough and only about 5.66% of them think that it is excellent, and about 7.55% of respondents think it is very poor. Table No 16: Frequency distribution based on Location of ATMs Frequency 3 20 15 11 4 53 Percent 5.66 37.74 28.30 20.75 7.55 100.00 18 33 25 2 60 55.00 41.67 3.33 100.00

Excellent Good Fair Poor Very Poor Total

4.10.3 Accuracy of the services About 45.76% of respondents have rated accuracy of the service of NBL to be fair, only 25.42% of them have rated it to be good and about 18.64% of the respondents feel that NBLs accuracy of service is poor. Table No 17: Frequency distribution based on Accuracy of the services Frequency Percent Excellent Good Fair Poor Very poor Total 4.10.4 Courtesy of the Bank Staff Similarly, 40% of the respondents have rated courtesy of bank staff to be fair, 35% of them have rated it good and about 18.33% of them have rated courtesy of bank staffs to be poor. Table No 18: Frequency distribution based on Courtesy of the bank staff Frequency Percent Excellent Good Fair Poor Very Poor Total 2 21 24 11 2 60 3.33 35 40 18.33 3.33 100.00 5 15 27 11 1 59 8.47 25.42 45.76 18.64 1.69 100.00

4.10.5 Knowledge of the Bank Staff In the case of knowledge of NBLs staffs about 44.83% of the respondent has rated it to be fair, 37.93% of them have rated it good and about 13.79% of the respondents rated knowledge of bank staffs to be poor.

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Table No 19: Frequency distribution based on Knowledge of the bank staff Frequency Excellent Good Fair Poor Total 2 22 26 8 58 Percent 3.45 37.93 44.83 13.79 100.00

4.10.6 Professionalism of the staff In the case of professionalism of NBLs staff, 37.29% of respondents have rated it to be good, 35.29% of them have rated it to be fair. Only 1.69% of the respondents have rated it to be excellent and about 10.17% of the respondents have rated it to be very poor. Table No 20: Frequency distribution based on Professionalism of the staff Frequency Percent Excellent Good Fair Poor Very Poor Total 4.10.7 Speed of Service In the case of speed of service provided by NBL, 41.67% of respondents have rated it to be fair, 25% of them have rated it good and 20% of them have rated it to be poor. Table No 21: Frequency distribution based on Speed of service provided by the bank Frequency Excellent Good Fair Poor Very Poor Total 2 15 25 12 6 60 Percent 3.33 25.00 41.67 20.00 10.00 100.00 1 22 21 9 6 59 1.69 37.29 35.59 15.25 10.17 100.00

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4.11 Customer satisfaction regarding NBLs service Similarly respondents where asked to rate their level of satisfaction regarding certain services provide by NBL in terms of highly satisfied, satisfied, neutral, dissatisfied and highly dissatisfied through lickert sand their results are shown as follows: 4.11.1 Customer satisfaction level on Loan In the loan service of NBL most of the respondents are satisfied with the loan service as almost 56.41% of them have rated NBLs loan service as satisfactory, 15.38% have rated it has highly satisfied and 20.51% are neutral, only 7.69% are dissatisfied with the loan service. Table No 22: Frequency distribution based on Loan Satisfaction Frequency Percent Level Highly Satisfied 6 15.38 Satisfied 22 56.41 Neutral 8 20.51 Dissatisfied 3 7.69 Total 39 100.00

4.11.2 Customer satisfaction level on Deposit In the case of deposit service 58.93% of the respondents are satisfied with it and 25% are neutral, and only 3.57% of the respondents are dissatisfied and highly dissatisfied respectively. Table No 23: Frequency distribution based on Deposit Satisfaction Frequency Percent Level Highly Satisfied 5 8.93 Satisfied 33 58.93 Neutral 14 25.00 Dissatisfied 2 3.57 Highly 2 3.57 Dissatisfied Total 56 100.00

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4.11.3 Customer satisfaction level on Remittance In the remittance service most of the respondents have shown neutral as 56.52% of them have rated it as neutral and 34.78% of the respondents have rated remittance service to be satisfactory. Table No 24: Frequency distribution based on Remittance Satisfaction Frequency Percent Level Highly Satisfied 2 8.70 Satisfied 8 34.78 Neutral 13 56.52 Total 23 100.00 4.11.4 Customer satisfaction level on Cards & ATMs Here 48.72% of the respondents have shown that they are neutral in the case of Cards and ATMs services and about 30.77 % of the respondents are dissatisfied with this service, and only 17.95 % of them are satisfied. Table No 25: Frequency distribution based on Cards and ATMs Satisfaction Level Frequency Percent Satisfied Neutral Dissatisfied Highly Dissatisfied Total 7 19 12 1 39 17.95 48.72 30.77 2.56 100.00

4.11.5 Customers satisfaction level on E-Banking In the case of E-banking 21.43 % of the respondents are satisfied and are neutral with the service and about 57.14% of them are dissatisfied with e-banking service provided by NBL. And many of the respondents have been found not using the service at all i.e. out of 60 respondents 46 are not using this service at all.

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Table No 26: Frequency distribution based on E-Banking Satisfaction Frequency Percent Level Satisfied 3 21.43 Neutral 3 21.43 Dissatisfied 8 57.14 Total 14 100.00

4.12 Inferential Analysis To measure the relationship between gender and the level of customer satisfaction certain hypothesis testing is done between gender and other variable representing level of customer satisfaction. 4.12.1 Relationship between gender and location of bank H0: The satisfaction level on location of bank is not related with gender of customers. H1: The satisfaction level on location of bank is significantly related with gender of customers. Table No 27: Cross tabulation between Gender and Location of Bank Location of Bank Gender Male Female Total Excellent Good 20 (60.61%) 14(56.00%) 13(39.39%) 11(44.00%) 33 25 Fair 2(100.00%) 0 (0.00%) 2

Chi-Square Tests Value df P value Pearson Chi1.50505 2 0.471 Square P value = 0.471 Result: Since, P
value

is greater than the significance value, we accept H0 i.e. there is no

relationship between satisfaction level of gender and location of bank.

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4.12.2 Relationship between gender and accuracy of the services H0: The satisfaction level on accuracy of the services is not related with gender. H1: The satisfaction level on accuracy of the services is significantly related with gender. Table No 28: Cross tabulation between Gender and Accuracy of the services Accuracy of the services Good Fair Poor 13 (86.67%) 12 (44.44%) 8 (72.73%) 2 (13.33%) 15 (55.56%) 3 (27.27%) 15 27 11

Gender Male Female Total

Pearson ChiSquare P value = 0.019 Result: Since, P

value

Excellent 1 (20.00%) 4 (80.00%) 5 Chi-Square Tests Value df P value 11.8332 4 0.019

Very Poor 1(100.00%) 0 (0.00%) 1

is less than the significance value, we reject H0 i.e. there is significant

relationship between satisfaction level of gender and accuracy of the service. 4.12.3 Relationship between gender and speed of service provided by the bank H0: The satisfaction level on speed of service provided by the bank is not related with gender. H1: The satisfaction level on speed of service provided by the bank is significantly related with gender. Table No 29: Cross tabulation between Gender and Speed of service provided by the bank. Speed of service provided by the bank Good Fair Poor Very Poor Gender Excellent Male Female Total 0 (0.00%) 2 (100.00%) 2 9 (60.00%) 6 (40.00%) 15 12 (48.00%) 13 (52.00%) 25 10 (83.33%) 2 (16.67%) 12 5 (83.33%) 1 (16.67%) 6

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Chi-Square Tests Value df Pearson Chi8.58333 4 Square P value = 0.072 Result: Since, P
value

P value. 0.072

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level of gender and accuracy of the service. 4.12.4 Relationship between age and location of bank H0: The satisfaction level on location of bank is not related with age of the respondent. H1: The satisfaction level on location of bank is significantly related with age of the respondent. Table No 30: Cross tabulation between Age and Location of Bank Location of Bank Excellent Good Fair 3 (9.10%) 0 (0.00%) 0 (0.00%) 16 (48.50%) 8 (32.00%) 1 (50.00%) 8 (24.20%) 11 (44.00%) 0 (0.00%) 0 (0.00%) 1 (50.00%) 2

Age Group Less than 18 yrs 18-35 yrs 36-50 yrs

51-65 yrs 6 (18.20%) 6 (24.00%) More than 65 yrs 0 (0.00%) 0 (0.00%) Total 33 25 Chi-Square Tests Value df P value. Pearson Chi35.4799 8 0.0005 Square P value = 0.0005 Result: Since, P
value

is less than the significance value, we reject H0 i.e. there is significant

relationship between satisfaction level of age of respondent and location of the bank.

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4.12.5 Relationship between Education level of respondent and Location of the bank H0: The satisfaction level on location of bank is not related with education level of the respondent. H1: The satisfaction level on location of bank is significantly related with education level of the respondent. Table No 31: Cross tabulation between Education level and Location of Bank Education Level Below SLC SLC Intermediate Bachelor Master and above Total Location of Bank Excellent Good Fair 5 (15.15%) 4 (16.00%) 0 (0.00%) 1 (3.03%) 0 (0.00%) 0 (0.00%) 10 (30.30%) 7 (28.00%) 0 (0.00%) 12 (36.36%) 9 (36.00%) 0 (0.00%) 5 (15.15%) 5 (20.00%) 2 (100.00%) 33 25 2

Chi-Square Tests Value df P value. 9.26074 8 Pearson Chi-Square 0.321 P value = 0.321 Result: Since, P
value

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level on location of bank and the education level of the respondent. 4.12.6 Relationship between Education level of respondent and Location of ATM H0: The satisfaction level on location of ATM is not related with education level of the respondent. H1: The satisfaction level on location of ATM is significantly related with education level of the respondent.

26

Table No 32: Cross tabulation between Education level and Location of Bank Chi-Square Tests Value df P value Pearson ChiSquare 30.9496 16 Excellent 0 (0.00%) 0 (0.00%) 2 (66.67%) 1 (33.33%) 0 (0.00%) 3 0.014 Location of ATM Good Fair 7 (35.00%) 0 (0.00%) 4 (20.00%) 7 (35.00%) 2 (10.00%) 20 0 (0.00%) 1 (6.67%) 6 (40.00%) 5 (33.33%) 3 (20.00%) 15 Poor 1 (9.10%) 0 (0.00%) 3 (27.27%) 5 (45.45%) 2 (18.18%) 11 Very Poor 0 (0.00%) 0 (0.00%) 0 (0.00%) 0 (0.00%) 4 (100.00%) 4

Education Level Below SLC SLC Intermediate Bachelor Master + Total P value = 0.014 Result: Since, P
value

is less than the significance value, we reject H0 i.e. there is significant

relationship between satisfaction level on location of ATM and the education level of the respondents. 4.12.7 Relationship between Education level of respondent and Speed of service provided by the bank H0: The satisfaction level on speed of service provided by bank is not related with education level of the respondent. H1: The satisfaction level on speed of service provided by bank is significantly related with education level of the respondent.

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Table No 33: Cross tabulation between education level and speed of service Speed of service provided by the bank Good Fair Poor 6 (24.00%) 0 (0.00%) 5 (20.00%) 10 (40.00%) 4 (16.00%) 25 1 (8.30%) 0 (0.00%) 3 (25.00%) 4 (33.30%) 4 (33.30%) 12

Education Level

Excellent

Very Poor 0 (0.00%) 0 (0.00%) 0 (0.00%) 4 (66.70%) 2 (33.30%) 6

Below SLC 2 (100.00%) 0 (0.00%) SLC 0 (0.00%) 1 (6.70%) Intermediate 0 (0.00%) 9 (60.00%) Bachelor 0 (0.00%) 3 (20.00%) Master and above 0 (0.00%) 2 (13.30%) Total 2 15 Chi-Square Tests Value df P value. Pearson Chi31.8289 16 0.011 Square P value = 0.011 Result: Since, P
value

is less than the significance value, we reject H0 i.e. there is significant

relationship between satisfaction level on speed of service provided by the bank and the education level of the respondents. 4.12.8 Relationship between Occupation of respondent and Location of Bank H0: The satisfaction level on location of Bank is not related with Occupation of the respondent. H1: The satisfaction level on location of Bank is significantly related with Occupation of the respondent.

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Table No 34: Cross tabulation between Occupation and Location of Bank Cross tabulation of Occupation and Location of Bank Location of Bank Excellent Good Fair Occupation Government Service 5 (15.20%) 8 (24.20%) Private Service 5 (15.20%) Business 12 (36.40%) Student 3 (9.00%) Housewife 33 Total Chi-Square Tests Value df P value Pearson Chi10.8771 8 0.209 Square P value = 0.321 Result: Since, P
value

8 (32.00%) 3 (12.00%) 7 (28.00%) 3 (12.00%) 4 (16.00%) 25

0 (0.00%) 1 (50.00%) 1 (50.00%) 0 (0.00%) 0 (0.00%) 2

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level on location of bank and the occupation of the respondent. 4.12.9 Relationship between Occupation of respondent and Location of ATM H0: The satisfaction level on location of ATM is not related with Occupation of the respondent. H1: The satisfaction level on location of ATM is significantly related with Occupation of the respondent. Table No 35: Cross tabulation between occupation and location of ATM

Occupation Government Service Private Service Business Student Housewife Total

Excellent 0 (0.00%) 3 (100.00%) 0 (0.00%) 0 (0.00%) 0 (0.00%) 3 29

Location of ATM Good Fair Poor 7 (35.00%) 2 (10.00%) 6 (30.00%) 4 (20.00%) 1 (5%) 20 3 (20.00%) 1 (6.70%) 2 (13.30%) 7 (46.70%) 2 (13.3%) 15 1 (9.10%) 2 (18.20%) 1 (9.10%) 3 (27.30%) 4 (36.40%) 11

Very Poor 1 (25.00%) 0 (0.00%) 2 (50.00%) 1 (25.00%) 0 (0.00%) 4

Chi-Square Test Value df Pearson Chi32.7948 16 Square P value = 0.008 Result: Since, P
value

P value 0.008

is less than the significance value, we reject H0 i.e. there is significant

relationship between satisfaction level on location of ATM and the occupation of the respondents. 4.12.10 Relationship between Occupation of respondent and Speed of service provided by the bank H0: The satisfaction level on speed of service provided by bank is not related with occupation of the respondent. H1: The satisfaction level on speed of service provided by bank is significantly related with occupation of the respondent. Table No 36: Cross tabulation between occupation and speed of service Cross tabulation of Occupation and Speed of service provided by the bank Speed of service provided by the bank Excellent Good Fair Poor Very Poor Occupation 2 (100.00%) 4 (26.67%) 6 (24.00%) 1 (8.30%) 0 (0.00%) Government Service 0 (0.00%) 4 (26.67%) 3 (12.00%) 5 (41.70%) 0 (0.00%) Private Service 0 (0.00%) 2 (13.33%) 3 (12.00%) 4 (33.30%) 4 (66.67%) Business 0 (0.00%) 2 (13.33%) 9 (36.00%) 2 (16.70%) 2 (33.33%) Student 0 (0.00%) 3 (20.00%) 4 (16.00%) 0 (0.00%) 0 (0.00%) Housewife 2 15 25 12 6 Total

Chi-Square Tests Value df Pearson Chi28.7437 16 Square P value = 0.026

P value 0.026

30

Result: Since, P

value

is less than the significance value, we reject H0 i.e. there is significant

relationship between satisfaction level on speed of service provided by the bank and the occupation of the respondents. 4.13 Occupation of respondents and Types of services offered by NBL 4.13.1 Relationship between Occupation of respondents and satisfaction level on Loan H0: The satisfaction level on Loan is not related with occupation of the respondent. H1: The satisfaction level on Loan is significantly related with occupation of the respondent. Table No 37: Cross tabulation between the occupation of respondent and Loan Chi-Square Tests Value df Pearson Chi7.14631 12 Square

P value 0.848

Occupation Government Service Private Service Business Student Housewife Total P value = 0.848 Result: Since, P
value

Highly Satisfied 2 (33.3%) 2 (33.30%) 1 (16.70%) 0 (0.00%) 1 (16.70%) 6

Loan Satisfied Neutral 6 (27.30%) 5 (22.70%) 4 (18.20%) 3 (13.60%) 4 (18.20%) 22 2 (25.00%) 1 (12.50%) 3 (37.50%) 1 (12.50%) 1 (12.50%) 8

Dissatisfied 0 (0.00%) 0 (0.00%) 2 (66.70%) 0 (0.00%) 1 (33.30%) 3

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level on Loan and the occupation of the respondent. 4.13.2 Relationship between Occupation of respondents and satisfaction level on Deposit H0: The satisfaction level on Deposit is not related with occupation of the respondent. H1: The satisfaction level on Deposit is significantly related with occupation of the respondent.

31

Table No 38: Cross tabulation between occupation of respondent and deposit. Occupation Government Service Private Service Business Student Housewife Total Highly Satisfied 3 (60.00%) 0 (0.00%) 1 (20.00%) 1 (20.00%) 0 (0.00%) 5 Satisfied 8 (24.20%) 7 (21.20%) 7 (21.20%) 6 (18.20%) 5 (15.20%) 33 Deposit Neutral Dissatisfied 2 (14.30%) 1 (7.10%) 3 (21.40%) 6 (42.90%) 2 (14.30%) 14 0 (0.00%) 2 (100.00%) 0 (0.00%) 0 (0.00%) 0 (0.00%) 2 Highly Dissatisfied 0 (0.00%) 0 (0.00%) 0 (0.00%) 2 (100.00%) 0 (0.00%) 2

Chi-Square Tests Value df Pearson Chi23.3366 16 Square P value = 0.105 Result: Since, P
value

P value 0.105

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level on Deposit and the occupation of the respondent. 4.13.3 Relationship between Occupation of respondents and satisfaction level on remittance H0: The satisfaction level on Remittance is not related with occupation of the respondent. H1: The satisfaction level on Remittance is significantly related with occupation of the respondent.

32

Table No 39: Cross tabulation between occupation of respondent and remittance Remittance Highly Satisfied Satisfied 0 (0.00%) 0 (0.00%) 2 (100.00%) 0 (0.00%) 0 (0.00%) 2 0 (0.00%) 2 (25.00%) 1 (12.50%) 4 (50.00%) 1 (12.50%) 8

Occupation Government Service Private Service Business Student Housewife Total

Neutral 1 (7.70%) 3 (23.10%) 3 (23.10%) 4 (30.80%) 2 (15.40%) 13

Chi-Square Tests Value df Pearson Chi7.65929 8 Square P value = 0.105 Result: Since, P
value

P value 0.467

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level on Remittance and the occupation of the respondent. 4.13.4 Relationship between Occupation of respondents and satisfaction level on Cards and ATMs H0: The satisfaction level on Cards and ATMs is not related with occupation of the respondent. H1: The satisfaction level on Cards and ATMs is significantly related with occupation of the respondent.

33

Table No 40: Cross tabulation between occupation of respondent and cards and ATMs Cards and ATMs Neutral Dissatisfied 5 (26.30%) 1 (5.30%) 5 (26.30%) 5 (26.30%) 3 (15.80%) 19 1 (8.33%) 2 (16.67%) 3 (25.00%) 3 (25.00%) 3 (25.00%) 12

Occupation Government Service Private Service Business Student Housewife Total

Satisfied 0 (0.00%) 4 (57.10%) 2 (28.60%) 1 (14.30%) 0 (0.00%) 7

Highly Dissatisfied 0 (0.00%) 0 (0.00%) 0 (0.00%) 1 (100.00%) 0 (0.00%) 1

Chi-Square Tests Value df Pearson Chi15.7322 12 Square P value = 0.204 Result: Since, P
value

P value 0.204

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level on cards and ATMs and the occupation of the respondent. 4.13.5 Relationship between Occupation of respondents and satisfaction level on E-Banking H0: The satisfaction level on E-Banking is not related with occupation of the respondent. H1: The satisfaction level on E-Banking is significantly related with occupation of the respondent.

34

Table No 41: Cross tabulation between occupation of respondent and E-banking E-Banking Neutral 0 (0.00%) 1 (33.33%) 1 (33.33%) 0 (0.00%) 1 (33.34%) 3

Occupation Government Service Private Service Business Student Housewife Total

Satisfied 0 (0.00%) 2 (66.67%) 0 (0.00%) 1 (33.33%) 0 (0.00%) 3

Dissatisfied 2 (25.00%) 2 (25.00%) 3 (37.50%) 0 (0.00%) 1 (12.50%) 8

Chi-Square Tests Value df Pearson Chi8.54583 8 Square P value = 0.382 Result: Since, P
value

P value 0.382

is greater than the significance value, we accept H0 i.e. there is no

significant relationship between satisfaction level on E-Banking and the occupation of the respondent. 4.13.6 Professionalism of staffs and Accuracy of services H0: The satisfaction level on Professionalism of staffs is not related with accuracy of services H1: The satisfaction level on Professionalism of staffs is significantly related with accuracy of services

35

Table No 42: Cross tabulation between Professionalism of staffs and Accuracy of services Accuracy of the services Good Fair Poor 1 (6.70%) 10 (66.60%) 3 (20.00%) 1 (6.70%) 0 (0.00%) 15 0 (0.00%) 4 (15.40%) 17 (65.40%) 3 (11.50%) 2 (7.70%) 26 0 (0.00%) 2 (18.20%) 1 (9.10%) 5 (45.50%) 3 (27.20%) 11

Professionalism Excellent of the staff Excellent 0 (0.00%) Good 5 (100.00%) Fair 0 (0.00%) Poor 0 (0.00%) Very Poor 0 (0.00%) Total 5 Chi-Square Tests Value df Pearson Chi43.0319 16 Square P value = 0.0005 Result: Since, P
value

Very Poor 0 (0.00%) 1 (100.00%) 0 (0.00%) 0 (0.00%) 0 (0.00%) 1

P value 0.0005

is less than the significance value, we reject H0 i.e. there is significant

relationship between satisfaction level on accuracy of the services and the professionalism of the staff. 4.13.7 Relationship between Occupation of respondent and type of account opened H0: The Occupation of respondent is not related with types of account opened. H1: The Occupation of respondent is significantly related with types of account opened.

36

Table No 43: Cross tabulation between Occupation of the respondents and the type of account opened. Type of Account being used Current Saving Fixed Loan Account Account Account Deposit Account 0 (0.00%) 4 (57.14%) 2 (28.57%) 1 (14.29%) 0 (0.00%) 7 13 (27.10%) 6 (12.50%) 8 (16.70%) 14 (29.20%) 7 (14.50%) 48 0 (0.00%) 0 (0.00%) 2 (100.00%) 0 (0.00%) 0 (0.00%) 2 0 (0.00%) 2 (66.67%) 1 (33.33%) 0 (0.00%) 0 (0.00%) 3

Occupation

Government Service Private Service Business Student Housewife Total

Chi-Square Tests Value df Pearson ChiSquare P value = 0.025 Result: Since, P

value

P value 0.025

23.3104 12

is less than the significance value, we reject H0 i.e. there is significant

relationship between occupation of the respondents and the type of account opened.

37

CHAPTER 5 SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary Findings The overall findings from the study done can be summarized under the given points. 1. Age group of respondents Age group of 18-35 yrs is large sample group followed by age group of 36-50 yrs, then by age group of 51-65 yrs, less than 18 yrs and lastly the age group of more than 65 yrs. So it is seen that people falling in age group of 18-50 years are more involved in banking activities. 2. Gender of respondents During research study, out of total sample of 60 respondents, 60% were male and 40% were female. So there are more male customers in NBL than female. 3. Profession of respondents 25% of the respondents are students and about 21.67% of them are government service holders and business people and 20% of them are private business holder and others are housewives. 4. Education Level of respondents 15 % of respondents lies in the education level of below SLC, 1.67% of respondents lies in the SLC, 28.33% lies at Intermediate level, 35% lies at Bachelor level and 20% of respondents lies at Master and above. Thus most of the respondents have the education level of Bachelor. 5. Duration of service of NBL being used Most of the respondents have been using the banking services for more than 4 years, thus most of the respondents are the old customers. 6. Types of Respondents A/C Most of the respondents have saving account i.e. mainly students, housewives, servicers. Whereas mainly business persons have current account i.e. about 11.67%. A new type of account has recently been offered i.e. Loan account which is being used by 5% of the respondents. The

38

percentage of fixed account holder is found to be low in comparison to other types of account holder. Reasons: It is found that most of the housewives, job holders, government officers and students have saving account in comparison to other. The main reason for this is they believe that instead of keeping money ideally, it is beneficial to keep in bank as they can get interest on it, and they can withdraw it back whenever they need it. Similarly, most business persons prefer current a/c. Since, they dont get chance to keep money ideally for long time, for them current a/c is suitable. Through such account they get easy access to their cash. Also from such account they get easy facility to transfer money from one place. They get facility of overdraft too, so they prefer such account. The reason of low fixed account is the customers have to maintain high minimum balance, as well as they need to go through long process in comparison with other accounts. So, only less number of respondents has fixed account. Similarly, NBL has recently offered Loan Account where the account holder can take loan from the bank without creating any other account in the bank. 7. Customers view about improvement in quality of service of NBL Most of the respondents hold the view that the quality of service of NBL has improved a bit. 8. Reasons for choosing NBL as preferred bank It is found that most of the customers have choose NBL because of its image i.e. banks credibility and also for the convenience of banks location as it is centrally located in the heart of Kathmandu valley. 9. Rating of NBL in terms of Quality of Service It is found that most of the respondents on average are satisfied with the location of the bank, location of ATMs, courtesy of the banks staffs, knowledge of bank staffs and professionalism of the banks staff, but most of them on average are not satisfied or are dissatisfied with the accuracy of the services and the speed of services provided by the bank.

39

10. Customer satisfaction regarding NBLs service It is found that most of the respondents are on average satisfied with the services like loan, deposit, remittance, and others, but are on average dissatisfied with the cards and ATMs services and E-banking services. 11. Inferential Analysis Similarly, from the inferential analysis done using SPSS 16 following findings regarding the relationship between the customer satisfaction and various other independent variables can be pointed out as follows: There is no relationship between satisfaction level of gender and location of bank. There is no significant relationship between satisfaction level of gender and accuracy of the service. There is significant relationship between satisfaction level of age of respondent and location of the bank. There is no significant relationship between satisfaction level on location of bank and the education level of the respondent. There is significant relationship between satisfaction level on location of ATM and the education level of the respondents. There is significant relationship between satisfaction level on speed of service provided by the bank and the education level of the respondents. There is no significant relationship between satisfaction level on location of bank and the occupation of the respondent. There is significant relationship between satisfaction level on location of ATM and the occupation of the respondents. There is significant relationship between satisfaction level on speed of service provided by the bank and the occupation of the respondents. There is no significant relationship between satisfaction level on Loan and the occupation of the respondent. There is no significant relationship between satisfaction level on Deposit and the occupation of the respondent.

40

There is no significant relationship between satisfaction level on Remittance and the occupation of the respondent. There is no significant relationship between satisfaction level on Cards and ATMs and the occupation of the respondent. There is no significant relationship between satisfaction level on E-Banking and the occupation of the respondent. There is significant relationship between satisfaction level on accuracy of the services and the professionalism of the staff. There is significant relationship between occupation of the respondents and the type of account opened.

5.2 Conclusion From the study of customers at the head office of Nepal Bank Ltd situated at Dharmapath, a fair insight on the level of satisfaction of the customers was established. Based on the findings from the study, certain conclusions could be drawn out. Though Nepal Bank Ltd is the pioneer commercial bank of Nepal but it is not able to gain a competitive advantage over its competitors in the market. In spite of growing competitiveness in the banking sector in Nepal, it has been progressing well to continue providing services to its customers. Today customers are more aware about the quality of service they need to receive. They have certain expectation level they want to achieve from their service provider. Currently, they have more options, so banks should know the customers expectation level. The customers of Nepal Bank Ltd have mainly opened the account because of the image of NBL as the first commercial bank of Nepal i.e. due to the banks credibility. And most of the customers are highly satisfied with the location of the bank, so most of the people open account just because the bank is located at the central part of Kathmandu valley. The customers of NBL mainly prefer prompt service, accurate service without any flaws. The purpose of opening an account sometimes depends with the occupation of the customers but sometimes they are independent also. But the occupation of the customers and the types of account are significantly related with each other. Due to different factors they have selected NBL as their preferred bank 41

like brand image, accessibility, etc. But sometime due to high peer pressure also they are forced to open an account. The survey has given a general perception of the customers regarding the quality of services being provided by their bank. Although it shows satisfaction in most aspects of customer relations, there are some issues that need to be addressed to increase the level of satisfaction. Putting things in perspective, some improvements regarding the location of the ATMs, location of the branches, number of branches, professionalism of the bank staff, speed of service and courtesy of the bank staff towards its customers need to be made. Similarly, most of the customers want young and energetic employees who are more dynamic to replace the old staffs of the bank to increase the competitiveness of the bank. This doesnt mean that other aspects mentioned in the previous chapters be neglected. Improvements need to be made from time to time to keep the satisfaction level high, which will certainly benefit the growth of the bank. These types of improvements help to build a good image in the customers mind. Customers are the most important part of the bank, so there first priority needs to be customers in order to achieve organizational goal. Lastly in spite of the limitations under which the study was carried out this research has been successful in fulfilling its primary as well as secondary objectives of analyzing customers satisfaction of Nepal Bank Ltd. 5.3 Recommendation This research study is on Customers Satisfaction of Nepal Bank Ltd.. So, during the study, some issues were observed which needed some improvements for better acceptance of the bank towards it customers. Most of the respondents have mentioned what new features they wish to have in their bank and things the bank need to improve. So, as per the respondents view the recommendation for enhancing the current position of their banks are as follows: Study to increase the number and locations of additional ATMs in different appropriate areas need to be initiated as soon as possible.

42

 Secured, prompt, error free ATM service should be provided. Recruitment of young, energetic and dynamic employees replacing outdated staffs to be competitive. Increment in the deposit interest rate. Effective online services, E-banking services, mobile services should be operated. The bank should be more focused on enriching its Human Resource Management; emphasis should be given on quality of workforce rather than quantity. The infrastructure of bank must be enriched to make a good impression on the mind of public and to enable employees to provide better service. Improve its speed of service to compete with other commercial banks.

43