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CHAPTER I
ORGANIZATION PROFILE
Butwal Finance Limited has objective to collect the scattered saving of the region and
invest them in the productive sectors and earning profit. Butwal Finance Ltd. has been successful
in achieving these objectives to large extent. It has been providing wide range of deposit and
credit schemes according to the desire of its customers. It has been able to collect adequate amt
of saving and disburse credit to the productive sectors.
The strategic intent of BFL is to create values and economic opportunities across all the
economic zones of the country and BFL is architecting products and services to that end. BFL
collaborates with its stakeholders and strategic partners co-creating commonly gratifying each
others needs and expectations, thereby leveraging the opportunities in the nation for economic
benefit of the country.
Objectives
BFL has set its goals and objectives to hone the skills of inspired HR force and tailor its
products and services to that end. With an all inclusive approach BFL engages in customizing
ranges of products catering to the entire gamut of society from financing mega-projects to
underprivileged individuals and promoting enterprises across all segments of society by adding
values to nation building endeavors.
Some of the objectives are:
a) To examine how the deposit is accumulated and its efficiency of utilization
b) To examine the relationship between total deposit and total lending.
c) To analyze capital adequacy of BFL.
d) To evaluate the performance of BFL in terms of liquidity, profitability, sector wise loan, non
performing loan.
e) To examine how far the rate of interest influences the credit and deposit of BFL.
Jeetpur Branch,Kapilvastu
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people of local area. The major markets of BFL, Amarpath branch are depicted below.
Major Customers of Butwal Finance Ltd, Head Office Butwal
Since, BFL has its operations throughout the country. It means BFL has the large variety
of customers. BFL have its customer to the product area as well as in service area. The customers
associated with this bank are mostly involved in the hotel business, restaurant, departmental
store, educational institution, students, stationery business and transportation, wholesale shop
and retail shop, small industries, large scale industries lubricant business. The major customers
of Butwal Finance Ltd, Head Office Butwal are listed below.
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Professionals
Business Persons
Students
Farmers
Common people
Normal Saving
Special Saving
BFL Saving
Corporate Saving
Golden Saving
Saving Deposits
S. No.
Particulars
Minimum
Balance
Interest Rates
(P.A.)
Remarks
1.
Normal Saving
100
8.50%
Daily Balance
2.
Special Saving
1000
8.75%
Daily Balance
3.
BFL Saving
10000
9.25%
Daily Balance
4.
Corporate Saving
1000
9.50%
Daily Balance
5.
Golden Saving
25000
10.50%
Daily Balance
Fixed Deposits
S. No.
Particulars
Quaterly
Yearly
3 Months
11.00%
6 Months
11.50%
9 Months
11.50%
12.00%
1 Year
13.00%
13.05%
2 Years
13.50
13.65
13.75
3 Years
13.75
13.85
14.00
4 Years
14.00
14.15
14.25
5 Years
14.25
14.40
14.50
6 Years
14.50
14.65
14.00
services. The minimum balance to open this account is NRs.1000 and the customers earn
interests once the minimum balance reaches Rs. 50,000 and above at all times. This is a special
account provided to the people at 8.75%. In this saving account, people can open their account at
Rs.1000 minimum on daily basis.
1.4.1.3 BFL Saving
This premier scheme provides a good return on customers' deposits with a variety of
services. The minimum balance to open this account is NRs.10000 and the customers earn
interests once the minimum balance reaches Rs. 50,000 and above at all times. This is a special
account provided to the people at 9.25%. In this saving account, people can open their account
on daily basis.
1.4.1.4 Corporate Saving
This premier scheme provides a good return on customers' deposits with a variety of
services. The minimum balance to open this account is NRs.1000 and the customers earn
interests once the minimum balance reaches Rs. 50,000 and above at all times. This is a special
account provided to the people at 9.50%. In this saving account, people can open their account at
Rs.1000 minimum on daily basis.
1.4.1.5 Golden Saving
This premier scheme provides a good return on customers' deposits with a variety of
services. The minimum balance to open this account is NRs.25000 and the customers earn
interests once the minimum balance reaches Rs. 50,000 and above at all times. This is a special
account provided to the people at 10.50%. In this saving account, people can open their account
at Rs.1000 minimum on daily basis.
1.4.2
Products on Lending
Quarterly
%
Monthly
%
Quarterly
%
BUS,TRUCK,TRACTOR,
MINI BUS,MICRO BUS
(OLD MODEL)
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18
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BUS,TRUCK,TRACTOR,
MINI BUS,MICRO BUS
(NEW MODEL)
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18
18
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MOTORCYCLE,
SCOOTY
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PRIME CUSTOMER
OTHER CUSTOMER
MONTHLY
%
QUATERLY % MONTHLY
%
QUATERLY %
PERSONAL LAND
& HOME LOAN
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18
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INSTITUTIONAL
LAND & HOME
LOAN
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18
18
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PRIME CUSTOMER
AGRICULTRE LOAN
OTHER CUSTOMER
TRADE LOAN
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18
18
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INDUSTRIAL LOAN
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18
18
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EDUCATIONAL LOAN
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18
18
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HEALTH LOAN
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18
18
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TOUR LOAN
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CONSTRUCTION LOAN
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1.4.3
1. ATM card
BFL ATM card is a plastic card which provides an alternative payment method to cash when
making purchases or cash withdrawal from STM centers. BFL ATM card is your key to ultimate
convenience regarding day to day monetary transactions providing you the power of real cash in
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form of card. Functionally, it can be called an electronic check, as the funds are withdrawn
directly from the bank account.
1.4.4 Remittance Products
BFLs remittance products are a top-quality and has a diverse and selected service range
designed to cater to the different and exclusive requirements of our valued customers capitalizing
on its large international network and branches at different parts of the country.
Here are the lists of companies for which we are assigned for this service:
IME Remit
Everest Remit
Prabhu Remit
Union Remit
BOK Remit
Himal Remit
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NAME
Mr. Devendra Prasad Dhoju
Mr. Rajendra Prasad Dhoju
Mr. IndraLal Shrestha
Mrs. Nirmala Suwal
Mr. Chirinjivi Ghimire
Mr. Rabindraman Shrestha
Mr. Dhurba Khatri
TITLE
Executive Chairman
Director
Director
Director
Director
Public Director
Special Director
manager, Mr. has full authority and responsibility of Amarpath Branch. The authority and
decision making process flows from top-to-bottom. The responsibility flows from bottom-to-top.
All the decisions related to the operations of the branch are taken by the Branch Manager. All the
operations and loan transactions are monitored by the Operation and Loan Manager. Just below
the Operation and Loan Manager, GSD (General Service Department) manager is there to
manage the day-to-day operations.
The organizational structure of the Butwal Finance Ltd.,Head Office Butwal is displayed
diagrammatically as below.
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NRs.
2,100,000,000
2,100,000,000
2,029,769,400
2,029,769,400
2,029,769,400
2,029,769,400
2,029,769,400
Note: Share Capital at the face includes paid up capital and proposed bonus shares.
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NRs.(000)
Particulars
2012
2008
CAGR
Interest Income
2,298,600
1,032,049
22.2%
471,425
238,183
18.6%
Exchange Income
276,103
209,926
7.1%
Staff Expense
454,042
240,161
17.3%
401,425
188,183
20.9%
109,470
14,206
66.6%
190,943
99,505
17.7%
569,733
321,086
15.4%
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and loan loss provisions for exposures that were due on Mid July 2011 and were collected within
Mid August 2011 (Shrawan 2068) in line with the Central Banks guideline which stipulated
accounting interest income and loan loss provision on a deferred cash basis to some extent
limited interest suspense growth and NPA to 23% and 41%, respectively. This years yield on
loans and advances stood at 12.4% registering a growth of 19.9% compared to that of last year.
1.7.3 Co-operate Social Responsibility:
Basically finance companies are established for the fulfillment of social, economical and
physical needs of their members and society. As a responsible social institution BFL has perform
different task as social responsibility.
BFL has performs followings task in current year as a responsible social co-operatives:
1 BFL organizes blood donation programs on the occasions of its 15th annual general meeting.
2 BFL organizes sports programs on the occasions of its 15th annual general meeting.
3 From fiscal year 2068/069 BFL establish funds of Rs. 25000 for the purpose of Health &
Safety programs.
1.7.4 Risk Management:
For the management of different risks occur in the organization has to perform different task.
The BFL performs following task to minimize the risk associated risk bad debts.
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Eliminate the interest of loan to who is extremely unable to pay and encourage paying the
remaining debts amount.
The financial institutions are only able to success when they are able to collect and distribute
sufficient fund. To solve the risk arises in the institutions due to less deposit; BFL mainly focuses
for the increment in deposit with the help of following strategical performance:
1
BFL offered relatively high interest rate for depositor as compare with its competitors.
2 BFL announced different types of deposit scheme for different saving account.
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3 BFL organized different motivational programs and trainings for the members to develop their
economic behavior.
4 BFL motivate all the societies and give training to them for the development of economic
behavior and increment of saving.
1.7.5 Human Resource Development
It is the considered view that the progress and success of any organization depends upon the
knowledge, skills, motivational level of workforce. The Bank has been taking keen and special
interest in development of its human resource by imparting its employees training in various
aspects of Banking and relevant subjects. In order to bring positive swing in the working attitude
of senior officers, the Bank has been conducting special program on Management Development.
CHAPTER II
JOB PROFILE AND ACTIVITIES PERFORMED
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Remittance Department
This department has the responsibility to deal with the transfer of funds from abroad
especially from the Middle East countries. BFL is one of the formal banking channels which are
helping to remit money back home safely and quickly from Nepalese workers from abroad.
While performing the work in this department, I was able to get the basic concept of what
remittance is, and the requirements and process of transferring money and its phenomena etc
with the help of Mrs. Babita Karkil.
Under this department I had performed the followings activities:
1 Receive the pin code from the customer. A pin code was provided by money transfer for
identification.
2 Receive identity card e.g. citizenship, passport, license.
3 Obtain the form filled by the client and attach a copy of identity card in it.
4 Verify the transaction for payment & then provide a copy of payment to teller and file another
copy of it.
In order to provide the service throughout the country, there are over 730 authorized subagents in different parts of the country. It has established remittance relationship with a number
of exchange companies and banks in Qatar, Kuwait and Saudi Arabia for rendering inward
remittance services.
To spend money in Nepal, the person of the foreign country has to go to the bank, then
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they have to fill the form with the details such as recipients full name and address, phone
number, account number, name of remitted bank etc. after this, when the foreign exchange teller
accepts the remittance in local foreign currency along with a remittance transfer form and the
remitter has to pay some amount for the service.
Then BFL retrieves the transfer information using network password and file specific
password supplied by the bank. After this process, when beneficiary comes to take the money by
showing their ID or citizenship card, the bank has to distribute the remittance less (if any) to the
beneficiary by making them fill form.
2.1.3
Cash Department
This is the most important and weighted department where we and opinions of people
towards the bank were observed by me. Motivating people to open the account was also done by
me, which helped me to increase my convincing power.
I performed marketing of BFL about two hour a day for a week. During this time, I
informed the people about the banking knowledge, importance and benefits of bank, product and
services provided by the bank and the position of the bank. While marketing, I found very
positive feedback about BFL and this made me so energetic and excited to provide the
information and get the customers views towards the banks.
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bank.
3 I used to solve the queries of people relating to different types of account.
4 I used to solve the problem related to filling the forms and cheque if customers wrongly fill
them.
5 I used to verify the signature if the customers signature do not match.
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CHAPTER III
LESSONS LEARNT AND FEEDBACK
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BIBLIOGRAPHY
Joshi, Padam Raj (2062 B.S.), Corporate Finance; Kathmandu, Asmita Books Publishers and
Distributors.
Joshi, Padam Raj (2062 B.S.), Principles of Investment; Kathmandu, Asmita Books Publishers
and Distributors.
Pandey, I.M. (1987), Financial Management; New Delhi, Vani Educational Books.
Pant, Govinda Dev and Chaudhary, Arun Kumar (2058 B.S.), Kathmandu, Business Statistics
and Mathematics for Bachelor of Business Studies; Bhundi Puran Prakashan.
Pant, Prem Raj (2001), Fieldwork Assignment and Report Writing, Kathmandu, Buddha
Academic Enterprises Pvt. Ltd.
Pradhan, Rajendra Prasad (2000), A Study on Deposits and its Utilization by Commercial
Bank in Nepal; Kathmandu, An Unpublished Thesis Submitted to Faculty of Management T.U.,
Kirtipur.
www.google.com.np
www.butwalfinance.com
Annual Report of Butwal Finance Ltd.