1

A

A Summer Training Report

On

“A Comparative study of Himalayan Bank Limited and

Everest Bank Ltd., with special reference to customer feedback

on product and services offered by Himalayan Bank Limited”

Submitted in partial fulfillment of the requirements

for the award of the Degree of Bachelor of Business Administration (BBA)

Session 2013-2016

Submitted By: Submitted To:

Priyanka Sarraf Mr. Manoj Kr. Jha

BBA – V SEM. (Junior Asst. of HBL)

BM30101307586 Dr. Swati Mishra

(Asst. professor)

International School of Business ManagementSuresh Gyan Vihar University

Mahal, Jagatpura, Jaipur2015

2

ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude towards all those who have

helped me in various ways in the completion of this project.

I also express my sincere thanks to my project guide, Dr. Swati Mishra, for guiding me

right from the inception till the successful completion of the project. I sincerely

acknowledge her for extending her valuable guidance, support for literature, critical

review of project and the report and the above all the moral support she provided me with

throughout all state of report preparation.

PRIYANKA SARRAF

Signature……………………..

Date…………………

……..

3

CERTIFICATE OF ORIGINALITY

I Priyanka Sarraf Roll no: BM30101307586 of 2013-2016, a full time bonafide student of

final year of Bachelor of Business Administration (BBA) Programme of International

School of Business Management, Jagatpura, Jaipur. I hereby certify that this project work

carried out by me at Himalayan Bank Limited, Birgunj, Nepal. The report submitted in

partial fulfillment of the requirements of the programme is an original work of mine

under the guidance of the industry mentor Mr. Manoj Kr. Jha and faculty mentor Dr.

Swati Mishra and is not based or reproduced from any existing work of any other person

or on any earlier work undertaken at any other time or for any other purpose, and has not

been submitted anywhere else at any time.

(Student’s Signature)

Date:

(Faculty Mentor’s Signature)

Date:

4

EXECUTIVE SUMMARY

Summer training in any organization is an attempt to provide student a practical input and

exposure to the real world situation in which he has to work in future.

My training in Himalayan Bank Limited, Birgunj, Nepal was an attempt in this regard.

The project work provided to me was “A Comparative study of Himalayan Bank

Limited and Everest Bank Ltd., with special reference to customer feedback on

product and services offered by Himalayan Bank Limited”.

Himalayan Bank Limited (HBL) is one of the largest private banks of Nepal. The Bank

was incorporated in 1992 by a few eminent individuals of Nepal in partnership with the

Employees Provident Fund and Habib Bank Limited of Pakistan. The bank commenced

its operations in January 1993. Himalayan Bank is also the first commercial bank of

Nepal with most of its shares held by the private sector of Nepal. Besides commercial

banking services, the bank also offers industrial and merchant banking service.

The report has been prepared and id presented under various heading as introduction,

organization profile, research objective & scope of research project etc.

5

CONTENTS

S.NO. PARTICULARS Page No.

1 BACKGROUND OF THE STUDY 1

2 INTRODUCTION TO THE BANKING

INDUSTRY

3

3 INTRODUCTION TO HIMALAYAN

BANK LTD.

16

4

4.1

4.2

4.3

4.4

4.5

RESEARCH METHODOLOGY

Title of the study

Objective of the project

Type of Research

Methodology

Limitations of study

38

5 COMPARISON OF HIMALAYAN BANK

WITH EVEREST BANK

47

6 FACTS AND FINDINGS 50

7 ANALYSIS & INTERPRETATION 52

8 CONCLUSION 64

9 RECOMMENDATIONS &

SUGGESTIONS

66

10 BIBILOGRAPHY 68

6

11 APPENDIX 69

Chapter 1

Background of study

7

The history of the Financial Sector especially Modern Banking Industry can be traced

back to 1694 A.D in England; but as far as Nepalese Banking History is concerned, it is

only a third quarter of a century old, with the establishment of the Nepal Bank limited in

1937 A.D(1994 B.S). Now if we closely analyze the Financial Sector, we will find that

the Financial Sector branches out to two major sub-sectors: the Banking Sector and the

Non-Banking Sector. The Banking Sector encompasses the central bank i.e.., the NRB

and the thirty-two Commercial Banks; whereas the Non-Banking Sector comprises of

Development Banks, Finance Companies, Co-operatives, micro-finance, and other

financial institutions such as Insurance Companies, Mutual Funds, Provident Funds,

Postal Saving Offices and Nepal Stock Exchange.

BBA is a three-year graduate level program, whose mission is to “develop socially

responsive, creative, and result-oriented management professionals…in the rapidly

growing business sector in India and abroad. In BBA course, every student should go

through the six weeks long internship in any industry relating to their specialized subject

in order to practically imply theoretical knowledge in the real work place. Internship in

BBA is conducted for the partial fulfillment of academic requirement of BBA fourth

semester. It provides practical exposure and helps the students to understand corporate

social responsibility, develop corporate attitude and venture entrepreneurship. To fulfill

this very purpose, I worked in Himalayan Bank Limited, Birganj Branch, Nepal from 26th

May, 2015 to 16th July, 2015.

This report is prepared on the basis of careful study and the work done in the bank as an

interne referred by “Suresh Gyan Vihar University” (SGVU). The report focuses on

functioning of branch bank and the use of information technology (IT) in the banking

system. The major functions of this branch are deposit, withdrawal, account opening,

clearance of cheques, remitting and collecting cash on behalf of its clients, opening bank

draft etc. The entire major operational are performed using the software named T24.

Thus, the internship has proved to be a wonderful and enlightening experience for me.

Not only did I get the golden opportunity to gain practical, on-the-job experience but I

also got to utilize my conceptual knowledge and enhance my managerial skills.

8

Chapter 2

Introduction of the Banking

industry

9

2.1 Meaning of the bank Banking sector plays an important role in the economic development of the country. The

word ‘Bank’ has been derived from the Italian word ‘Banco’ which means a place for

keeping, lending and exchanging money. The bank is a financial institution, which deals

with money. It accepts deposits from individuals and organizations and grants loans to

them. It allows interest on the deposits made and charges interest on the loans granted.

Since, it accepts deposits and grants loans, it is regarded as the trader of money. Further,

it creates credit and supports for the formation of capital.

The following are some of the main definitions given by different economists:

“A bank is an organization whose principal operations are concerned with the

accumulation of the temporarily idle money of the general public for the purpose of

advancing to others for expenditure.”

– Kent

“Bank is an institution which collects money from those who have it to spare and who are

saving it out of their income and lends this money out to those who require it.”

– Crowther

“Bank is an organization established for the purpose of exchange money deposit lending

money and participation in transactions”

-Commercial Bank Act of 2031 (Nepal)

From the above definitions, it is clear that the bank is a financial institution accepts

deposits from the public in different accounts and grants loans to individuals and

corporations against their securities. The difference in interest rate on lending and

deposit, interest rate spread, is the major source of income for the bank. Interest on

lending is higher than the deposits. It is an agent of its clients, which remits money,

collects incomes and pays expenses on behalf of them. It performs the wide variety of

functions, which provide utility to the individual, corporation and general public.

10

2.2 Evolution on Banking IndustryThe evolution of banking industry had started a long time back, during ancient times.

There was reference to the activities of the money messengers in the temple of Jerusalem

in the New Testament. In ancient Greece the famous temples of Delphi and Olympia

serve as the great depositors for people’s surplus funds and these were the centers of the

money lending transaction. The history of banking is nearly as old as civilization. In the

ancient Rome and Greece, the practice of storing precious metals and coins at safe places

and loaning out money for public and private purpose on interest was prevalent. In

England, banking had its origin with the London goldsmith who in the 17th century

began to accept deposits from merchants and others for safe keeping of money and other

valuables. As public enterprise, banking made its first appearance in Italy in 1157 AD

when the "Bank of Venice" was founded.

Linguistic (the science of language) and etymology (the study of the origin of words)

suggest an interesting story about the origin of the word "bank." Both the old French

word "Banque" and the Italian word "Banca" were used centuries ago to mean a "bench"

or "money changer's table." Banks are among the most important financial institutions

whose principle operation are concerned with accumulation of the temporarily idle

money with the general public for the purpose of advancing it to others for expenditure.

Thus, the word banking has been used to denote a certain kind of trading in money. A

bank is therefore a corporation that deals in credit i.e. accepts deposits from the public,

withdrawing by cheques and advances loans of various sorts.

The modern economic system cannot function without bank. According to the modern

concept, banking is a business that not only deals with borrowings, lending and

remittance of funds, but it is also important instrument for fostering economic growth.

Presently there are various types of banks established for instance, industrial bank,

commercial bank, agricultural bank, co-operative bank and development bank with

different purpose.

11

2.3 History of Banking in NepalIn the country, the development of banking is relatively recent. The record of banking

system in Nepal gives detail account of mixture of slow and steady evolution in the

financial and global economy of Nepalese life. The history of banking in Nepal can be

traced back to 1877 A.D. when Tejarath Adda was established by the government to

provide credit facilities to general public. These unorganized institutions although quite

underdeveloped could still mobilize funds from wide range of different sources. Although

the Tejarath Adda was established, it was not able to facilitate the growing trades with

Tibet and India. Thus a need for the establishment of a modern bank had become

essential to promote the trade of the nation. In the year 1923 “Treaty of peace and

Friendship” were concluded between the Government of Britain and Government of

Nepal. As per the treaty, Nepal could carry on import trade free of duty via India. In other

words, it meant that Nepal was going to diversify its foreign trade and for that the country

needed a modern bank. But it wasn’t till 1936 A.D. that the Udyog Parishad (Industrial

Development Board) was set up with the following objectives:-

Thus, the “Udyog Parishad” helped in opening new avenues for the advent of banking,

industry and commerce in Nepal and thus helped to enhance the economic status of the

country. A year after its formation, the Udyog Parishad formulated the company act and

the “Nepal Bank Act” in 1937 A.D. which established the Nepal Bank Ltd. with the

technical cooperation of the Imperial Bank of India, as the first commercial bank of

Nepal. Before 1956 “Sadar Mulukikhana Adda” (local treasury of the government) issued

currency notes and the foreign exchange reserves of Nepal were maintained by Reserve

Bank of India. During that period the Indian currency along with Nepalese currency was

circulating in the economy. Thus to manage the circulation of national currency and to

maintain exchange rate stability, there was an urgent need for the establishment of a

Central Bank. In 1956, The Nepal Rastriya Bank Act was formulated and Nepal Rastra

Bank was established as a central bank on April 26, 1956. It took over the functions of

Mulukikhana Adda “Government Treasury” and contributed in the growth of financial

sector.

12

Rastriya Banijya Bank (National Commercial Bank), a state-owned commercial bank,

was established in 1966. In the same year, The Land Reform Savings Corporation was

established to deal with finances related to land reforms. Now there are many banks and

financial companies in the country.

2.4 Classifications of BanksWhen a single bank performs multiple tasks, the efficiency and the effectiveness of work

becomes weak. Hence different banks are established for different purposes. Basically,

the banks have been categorized in various types in accordance with the bank’s ultimate

purpose, customer’s demands and choices, and overall economic development of nation.

Broadly, the banks can be classified into following types:

Central Bank

Commercial Bank

Industrial Bank

Agricultural Development Bank

Rural Development Bank

Saving Bank

Exchange Bank

2.5 Development of Banking Industry in NepalThe 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 with low interest rate. The Tejarath Adda disbursed credit

to the people on the basis of collateral of gold and silver. Tejaratha Adda extended credit

only; it did not accept deposits from the public.

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. With the development of the banking sector

and to help the government, formulate monetary policies, Nepal Rastra Bank was set up

in Baisakh 14 2013 B.S.as the central bank of the country. However, as the Central Bank,

13

Nepal Rastra Bank had its own limitations and as a commercial Bank, it was not logical

for Nepal Bank Ltd. to go to unprofitable sectors. So to catch up with these problems, the

government established Rastriya Banijya Bank in 2022 B.S (1965 A.D), as a fully state

owned commercial bank with full government ownership. Then the establishment of

Nepal Industrial Development Corporation (NIDC), Employee Provided Fund,

Agricultural Development Bank etc. followed the formation of financial institutions.

In the context of banking development, the 1980s saw a major structural change in

financial sector policies, regulations and institutional developments. Government

emphasized the role of the private sector for the investment in the financial sector. With

the adoption of the financial sector liberalization by the government in 80's opened the

door for foreign Banks to open Joint venture Banks in Nepal. As a result various banking

and non-banking financial institutions have come into existence. Nabil Bank Limited, the

first foreign joint venture bank of Nepal, started operations in July 1984 .With the

passage of time several other joint venture bank has been established such as Indosuez

Bank Limited (Nepal Investment Bank) in 2042 B.S., Nepal Grind lays Bank (Standard

Chartered Bank) in 2043 B.S., Himalayan Bank Limited in 2049 B.S., Nepal SBI Bank

Ltd in 2050 B.S and so on. During two decades, Nepal witnessed tremendous increment

in number of financial institutions. Nepalese banking system has now a wide geographic

reach and institutional diversification.

2.6 Present Scenario of Nepalese Financial InstitutionFinancial institutions are the organization that channelizes the savings of government,

businesses and individual into loans and investment. Nepal’s financial system is

composed of depository and non-depository institutions. Depository institutions are the

banking institution that accepts deposits of the public and provide loan to them whereas

non-depository institutions are the financial intermediary who does not accept the deposit

directly from the customers. They are investment banks, insurance companies, pension

funds, etc.

Liberalization in opening of banking and financial institution led to mushrooming of

banking & financial institutions in Nepal. Along with commercial bank, the government

14

allowed to open development banks, finance companies with the objective to increase

people's access to financial institution. Since then 43 financial institutions have merged

so far and more are in the process of merging. 

Bank and financial institution established and licensed without long term planning has

started to fold back after the World Bank and IMF guided the Nepal Rastra Bank to

reduce the numbers of financial institution. They suggested making few but stronger

institutions than many weak institutions. Nepal Rastra Bank developed policies and

guided banks and financial institutions to strengthen their position. Nepal Rastra Bank

has asked the banks and financial institutions with the same promoters to merge.The

policy adopted by the Nepal Rastra Bank has started to pay back with the increase in the

numbers of bank and financial institution for merger. Some important mergers so far are

the followings:

Global Bank, IME Finance & Lord Buddha Finance company merged together

and is in operation as Global IME Bank.

NIC Bank and Bank of Asia merged together to operate as a strong commercial

bank.

Machapuchchre Bank and Standard Finance merged to establish a better equity

based Machapuchchre Bank.

Vibor Bikash Bank & Bhajuratna Saving & Finance Company merged and is in

operation as Vibor Bank.

Uddham Bikash Bank and Pashupati Development Bank merged and formed Axis

Development Bank.

Kasthamandap Development Bank and Sikhar Finance merged and operating

as Kasthamandap Development Bank.

Himchuli Bikash bank and Birgunj Finance merged and became H & B

Development Bank.

Growth and development of financial institutions in Nepal is reflected in table below:

Table 2.6.1: Growth of Financial Institutions

15

Types of

Financial

Institutions

2010 2011 2012 2013

Commercial

Banks

27 31 32 31

Development

Banks

79 87 88 88

Finance

Companies

79 79 69 78

Micro-finance

Development

Banks

18 21 24 21

Source: www.nrb.org.np

2.7 Meaning of Commercial BankCommercial banks are the major component in the financial system. Commercial banks

come into existence mainly with the objectives of collecting of idle funds, mobilizing

them into productive sector and causing the overall economic development. The

commercial bank is the oldest form of bank. In general, bank that performs all kinds of

banking business and generally finances trade and commerce is called commercial bank.

It occupies quite an important place in the framework of every economy.

According to Nepal Commercial Act 2031 B.S. (1974 AD) ,”A commercial Bank refers

to such types of bank which deals in money exchange, accepting deposits, advancing

loans, and other commercial transitioning except some special functions done by some

specified bank such as Co-operative Bank, Agricultural Bank and Industrial Banks.”

The commercial banks are those banks, which pool together the scattered savings of the

community and arrange for their productive use and generate profit. They accept deposits

from the public and use the money to help the community by making loans to individuals,

organizations, governments and business. Commercial banks, acquire funds from one

16

group of surplus spending units and making these funds available to other deficit units

facilitating the effective mobilization of resources, which in turn leads to sound economic

growth of the country. The main aim of a commercial bank is to earn profit like any other

business entity. The difference of interest on deposits received and loans advanced are the

main source of its income. Thus commercial banks are merely a business firm engaged in

financial intermediation as well as perform additional functions under strict supervision

and control of the central bank.

In Nepal Commercial Banks are providing valuable services. Since they are allowed to

perform all kinds of financial functions, they are offering a wide range of services to the

people. In the Deposit side, they have widened their range from normal saving and

current accounts to market-segment specific deposits to attract specific groups of

consumers. Similarly in the Lending side too they have expanded tremendously offering

numerous business, consumer/retail, long-term, short-term loans as well as fee-based

other financial services. Finally in the Investment side, they have ventured into multiple

productive sectors (infrastructure, hydro, hotel, tourism, deprived-sectors, agriculture

etc). Therefore, the fate of the country is greatly determined by the active role of

commercial banks. Banks provides facilities to their customers by providing loans,

remitting funds, purchase and sale of bills and other market information. These services

help to run the business and other economic activities rapidly as well as smoothly which

ultimately helps in economic development.

2.8 Functions of Commercial BankCommercial Banks perform an array of functions. The commercial banks are those banks,

which are established to accept deposits and grant loan to the industries, individual and

traders with a view to earn profit. Apart from financing, they also render services like

collection of bills and cheques, safekeeping of valuables, financial advising etc. to their

customer. These functions can be systematically categorized as follows:

Primary Functions:

Acceptance of Deposits:

17

Currents deposits (demand deposits)

Savings deposits

Fixed deposits

Recurring deposit

Miscellaneous deposits

Granting loans and advances:

Loans (Credit facility for more than 1 year)

- Demand loan

- Term loan

- Education Loan

Advances (Short-term financial assistance)

- Cash Credit

- Bank Overdraft

- Discounting of Bill

- Trust receipt loan

Secondary Functions

Issuing letters of credit, travelers' checks, circular notes etc.

Undertaking safe custody of valuables, important documents, and

securities by providing safe deposit lockers.

Providing customers with facilities of foreign exchange.

Transferring money from one place to another and from one branch to

another branch of the bank.

Standing guarantee on behalf of its customers, for making payments for

purchase of goods, machinery, vehicles etc.

Collecting and supplying business information.

Issuing demand drafts and pay orders and

Providing reports on the credit worthiness of customers

2.9 Commercial bank in Nepal

18

In the context of Nepal the first commercial bank, "Nepal Bank Limited" was established

in 1937 A.D. and the second "Rastriya Banijya Bank" was established in 1966 A.D.

Nepal has opened its door to foreign commercial banks in the kingdom almost a decade

back. As the country followed economic liberalization, there was massive entrance of

foreign banks in Nepal. Consequently, Nepal Arab Bank was established in 1985 A.D.

similarly the Nepal Indosuez Bank was established as a joint venture between Nepal and

France in 1986 A.D. the legitimate entry of foreign commercial banks with full-fledged

banking functions led to rapid growth of banking system. After 1990 economic

liberalization policy obtained by the government, now there are 32 commercial banks

operating banking activities in the country.

It can be seen from the above table that commercial banks has grown in Nepal since first

joint- venture commercial bank was established in Nepal in the year 2041 BS. There has

not been establishment of new banks after the year 2058 B.S. But due to improvement in

the political and economic condition of the country, there are chances of establishment of

new banks in Nepal.

The following table shows the list of commercial banks in Nepal :

Table No.2.9.2: List of Commercial Banks in Nepal

S.N NamesOperation

Date (A.D.) Head Office

Paid Up

Capital(Rs.

In Million)

1 Nepal Bank Ltd. 1937/11/15 Dharmapath, Kathmandu 1,772.83

2 Rastriya Banijya Bank Ltd. 1966/01/23 Singhadurbar, Kathmandu 1,172.30

3Agriculture Development

Bank Ltd.1968/01/02 Ramshahpath, Kathmandu 9,474.30

4 Nabil Bank Ltd. 1984/07/16 Kantipath, Kathmandu 2,029.77

5 Nepal Investment Bank Ltd. 1986/02/27 Durbarmarg, Kathmandu 3,012.92

6Standard Chartered Bank

Nepal Ltd..1987/01/30

Nayabaneshwor,

Kathmandu1,610.17

19

7 Himalayan Bank Ltd. 1993/01/18 Thamel, Kathmandu 2,400.00

8 Nepal SBI Bank Ltd. 1993/07/07 Hattisar, Kathmandu 2,093.99

9 Nepal Bangladesh Bank Ltd. 1994/06/05NayaBaneshwor,

Kathmandu2,009.40

10 Everest Bank Ltd. 1994/10/18 Lazimpat, Kathmandu 1,391.57

11 Bank of Kathmandu Ltd. 1995/03/12 Kamaladi, Kathmandu 1,604.19

12Nepal Credit and Commerce

Bank Ltd.1996/10/14

Siddharthanagar,

Rupandehi1,400.00

13 Lumbini Bank Ltd. 1998/07/17 Narayangadh,Chitawan 1,430.00

14Nepal Industrial &

Commercial Bank Ltd.1998/07/21 Biaratnagar,Morang 1,311.55

15 Machhapuchhre Bank Ltd. 2000/10/03 Prithvichowk. Pokhara, 2,478.79

16 Kumari Bank Ltd. 2001/04/03 Durbar Marg, Kathmandu 1,603.80

17 Laxmi Bank Ltd. 2002/04/03Adarshanagar, Birgunj,

Parsa1,694.08

18 Siddhartha Bank Ltd. 2002/12/24 Kamaladi, Kathmandu 1,619.24

19 Global IME Bank Ltd. 2007/01/02 Birgunj, Parsa 2,184.50

20Citizens Bank International

Ltd.2007/06/21 Kamaladi, Kathmandu 2,101.84

21 Prime Commercial Bank Ltd 2007/09/24 New Road, Kathmandu 2,245.75

22 Sunrise Bank Ltd. 2007/10/12 Gairidhara, Kathmandu 2,015.00

23 Bank of Asia Nepal Ltd. 2007/10/12 Tripureshwor, Kathmandu 2,000.00

24 Grand Bank Nepal Ltd 2008/05/25 Kamaladi, Kathmandu 2,000.00

25 NMB Bank Ltd. 2008/06/05 Babarmahal, Kathmandu 2,000.00

26 Kist Bank Ltd. 2009/05/07 Anamnagar, Kathmandu 2,000.00

27 Janata Bank Nepal Ltd. 2010/04/05New Baneshwor,

Kathmandu2,000.00

28 Mega Bank Nepal Ltd. 2010/07/23 Kantipath, Kathmandu 1,631.00

20

29Commerz & Trust Bank

Nepal Ltd.2010/09/20 Kamaladi, Kathmandu 1,400.00

30 Civil Bank Litd. 2010/11/26 Kamaladi, Kathmandu 1,200.00

31

Century Commercial Bank

Ltd. 2011/03/10 Putalisadak , Kathmandu 108,0.00

32 Sanima  Bank Ltd. 2012/02/15 Nagpokhari,  Kathmandu 2, 016.00

Source:www.nrb.org.np

21

CHAPTER 3

INTRODUCTION OF HIMALAYAN

BANK LIMITED (HBL)

22

3.1 Introduction

Himalayan Bank Limited - established and promoted in 1993 by a group of prominent businessmen,

bankers and financial institutions with Habib Bank Limited of Pakistan, as the joint-venture partner

today stands as one of the largest private-sector commercial banks in the country. The Bank’s loan

portfolio, comprising of a healthy mix of diversified sectors stands at Rs. 20.18 billion, whereas the

deposit portfolio of the Bank stands at Rs. 31.84 billion, which is one of the biggest portfolios vis-à-

vis other private-sector commercial banks in the country. The Bank also possesses a healthy foreign

currency deposit portfolio that provides good returns. Inward remittances have consistently been on

the upswing for years, enabling the Bank to earn much required forex earnings and providing a

cushion for trade financing.

The fast growth of the Bank has been made possible through the strategic approach we have

undertaken and the years of hard work and perseverance on the part of the Board, top management

and qualified human resources. Any business opportunities that have come along has been

thoroughly evaluated and tapped whenever found feasible. We have put into use all available forms

of resources to grab the opportunities available in the banking sector.

Today we boast of having one of the largest ATM networks in the country. The number of branches

have grown at a steady pace. To increase our service base and tap new businesses in these emerging

markets, we have invested heavily in cutting-edge technology to complement our business

capability, with the understanding that technology in today’s world has become a necessity as a

driving force if we are to excel. In line with this, we have upgraded our software to the T24r8

version of TEMENOS. The card business has expanded rapidly and the Bank today offers all forms

of cards services for its customers

– credit cards, debit card and pre-paid cards. The card business has turned out to be a lucrative and

impressive business for the Bank as more and more customers are being attracted towards card

banking.

To support both the trade financing and remittance businesses, we have been continuously

expanding our correspondent network. To ensure that customers optimally enjoy modern banking,

we are providing technology-driven services such as Internet banking and SMS banking.

23

Our progress over the last 15 years is a testimony to the quality of our leadership and human

resources. We believe in hiring the best and giving the best. We have followed a customer–oriented

approach and therefore have been able to win the trust of the customers over the years.

3.2 Organization ChartAn Organizational structure consists of activities such as task allocation, co-ordination and

supervision which are directed towards the achievement of organizational aims.

Figure 2.2.1 Organizational structure of HBL

Board of Directors

Credit Managing

Chief Credit Officer

Credit Appraisal & Sanction

Documetn Follow up and

NPA Department

Chief Finanacial Officer

Treasury and Forex

Department

Reconcialiation Department

Business Development Department

Chief Operating Officer

Accounts and Administration

Department

Human Resources

Depatment

System Department

Branch Control & Inspection

Company Secretary

Share Department

Law Department

Audit

Internal Audit Department

Regional Offices

Eastern Regional Offices

Western Regional offices

24

3.3 PRODUCTS AND SERVICESOur focus has always remained on providing quality product and services for the customers at a

reasonable and affordable cost. Ideas/suggestions on existing and new products and services keep

pouring in from all staff. These ideas are deliberated upon through the process of brainstorming and

are further refined at different levels so that when it finally comes to the point of delivery, it is the

best ones that reach out to our customers. Product ideas or concepts alone are not adequate; the

structure of decision-making and service delivery across different levels plays a vital role for

success of any products to ensure this. The product papers that define well-structured procedures

and clear-cut authority are in place before launching/revising any of the products/services.

The following are the Bank’s array of products and services that are tailor-made to suit the growing

and ever-changing needs of the customers:

3.3.1 DepositsHimalayan Bank offers a choice of deposit products that customers can choose from to suit their

individual requirements.

Savings products include the following accounts:

Normal Saving Account (with minimum balance)

Himal Savings Account (zero balance account)

Premium Savings Account (with exclusive services)

Super Premium Savings Account (with exclusive service & high returns)

Himal Remit Savings Account (customized for remitters and beneficiaries),

Recurring Savings Account (for monthly deposits)

Bishesh Savings Account (for minor, senior citizens, physically handicapped, and illiterate

people)

Shareholders’ Savings Account (for the shareholders of Himalayan Bank).

Special Payroll Account (for payroll employees of corpo-rate houses)

A Current Account is available for daily business transactions.

Call Account (with an earning opportunity for businesses)

Current Call (for NGOs, INGOs, and charitable trusts with attractive interest rates)

Fixed deposit products for individuals and institutions include:

25

Fixed Term Deposit Account (for those willing to park funds for 2 to 5 years and earn

attractive returns).

3.3.2 Corporate FinancingBig lending requires big resources and a strong capital base. Over the years, we have been able to

build a very stable deposit base and a strong capital base through issuance of bonus shares and

accumulation of reserves. With these two things in place, we have been able to continuously

support big corporate houses in meeting their financial needs, through tailor made packages. We

well understand the significance of the corporate sector in the overall economy. It is the sector that

thrives on productivity and adds value directly to the country’s GDP, generates employment

opportunities, encourages self-sustenance of the country and enhances export. We therefore, believe

in supporting and growing along with these corporate houses. We have been quite successful in this

endeavor.

3.3.3 Consortium FinancingBig projects require huge financing, whether they are industrial or infrastructure project. One of the

ways to get involved in such financing is by distributing the risks among numbers of banks. In line

with this, we have resorted to what is popularly dubbed consortium financing- mostly as a lead bank

and co-lead bank and in few cases as a member bank. Our role as the lead bank when it comes to

consortium financing is well accepted in the banking industry. We have recently been appointed as

the lead bank to bring together Banks and other Financial Institutions in the country, for financing

of the much-touted Upper Tama koshi Hydro Project.

3.3.4 Retail FinancingTo help individuals uplift their standard of living, we have undertaken a prudent retail financing

strategy. Individuals are provided with adequate financing based on their requirements and their

cash flow, to buy houses and automobiles. Home loans are provided for individuals to buy houses

or apartments, construct new houses or extend their existing houses. Automobile loans come in the

form of standard and customized loans depending on the customers’ requirements. We have from

time to time, has tied up with dealers to simply financing for individuals. The rates on both home

loans and auto loans are competitive vis-à-vis other financial institutions. Similarly, we also have

tie-up arrangements for financing schemes through our Credit Cards. Besides, we also offer the

Subidha loan or hassle-free loan to customers to finance their social and educational requirements.

Similarly, very recently, we have introduced Personal loans to support various financial needs of the

customers against high value fixed assets as security.

26

3.3.5 Small and Medium-sized Business FinancingSmall and medium-sized enterprises (SMEs) are the most extensive form enterprises in the country.

Unfortunately, this sector has remained largely untouched by the banking industry, mainly because

their nature of holding within the family member in most cases and the lack of proper readily

available documentations and information. On the other hand these enterprises have largely been

shy in approaching the banks for their financing needs and depend on funding from informal

markets. Considering the need for these enterprises to grow, the growth potential they possess and

low probability of default by customers belonging to this category, we have introduced customized

packages particularly to suit this segment of the market. This approach has helped us reach out to

the greater segments of the markets. This we believe besides helping in stimulating business

activities and generating employment opportunities, and provides us with the much needed

diversification of our portfolio. As a step further, we have tied-up with IFC-SEDF, Bangladesh, to

adopt a strategy to further penetrate this segment, targeting as many customers as possible. We have

priced these packages at very competitive and affordable prices so as to encourage more and more

entrepreneur to come into the formal banking sector to stimulate their business growth.

3.3.6 Trade Business Services

We boast being the largest trade business provider among commercial banks in Nepal. We have a

centralized Trade Operation Center (TOC), to channel and standardize our trade business, with

highly professional approach in processing of trade documents. Our correspondence network with

more than 400 banks around the globe has given us the reach to almost every corner of the globe.

Wide acceptability of the beneficiaries, line of credit by most the reputed banks across the globe, a

largest correspondence network and a well versed team of staff has enabled us to stand tall in the

area of trade business amongst commercial banks in Nepal.

3.3.7 Card ServicesHimalayan Bank was the first to introduce the first Nepali credit card for the domestic market. HBL

Card, which was the most popular card in the country at one time. Now, Himalayan Bank is

offering various types of card services like; HBL SCT/Visa / Master Debit Card, HBL Visa Credit

Card, HBL Master Credit Card, HBL Prepaid Visa Card and Himalayan Bank American Express

Gold Credit Card. The Bank has been facilitating its customer by providing acquiring card service

of JCB and China Union Pay cards through its network.

27

3.3.8 HIMALREMITHimalayan Bank is a pioneer in the field of retail money transfer business with over a decade-long

customized service delivery experience in the field. The bank conducts this business through

HimalRemit, a state-of-art web-based online money transfer system that is easily accessible through

our main web domain www.himalayanbank.com. It can be directly accessed by all our branches and

network thus ensuring prompt execution of remittances.

The product is monitored and serviced 24/7 by our Remittance Promotion Department dedicated to

deliver fast and reliable services to the customers. HimalRemit has the largest payment network

with more than 2000 payment locations covering all cities, towns, and villages of the country.

3.3.9 Treasury ServicesWe have a good treasury setup that has over several years generated healthy returns from foreign

exchange transactions both in terms of trading gain from FX transactions as well as interest earned

from secure placements of foreign currencies with Banks around the world. The returns have been

possible mainly because of the good foreign currency deposit base that we have and the continuous

inflow of foreign currency in the form of remittance and export business.

Apart from foreign exchange trading and placements, treasury has managed to invest around 20%

of local currency deposits in secure portfolios such as Treasury Bills and Government Bonds, which

depicts the Bank’s prudent liquidity management.

3.3.10 Ancillary ServicesHimalayan Bank offers a host of ancillary services that provide convenience, security and comfort

to its customers.

Among these are:

Safe deposit lockers: Locker facilities of varying sizes as per its customers’ preference, and

at convenient locations.

SMS banking: Allows customers to check their balance, status of cheque (encashed or not),

the last three trans-actions, and the Bank’s foreign exchange rate.

Himal@net - Internet Banking: Banking can be done safely and securely at all times of the

day from wherever there is a connection.

24/7 Automated Teller Machines (ATMs): in more than 70 locations.

365 days banking.

28

Any Branch Banking Services (ABBS).

Fund transfer: within and outside the country.

Fee collection/payment services: for educational institutions.

Service package for students: for those going abroad for higher studies.

3.4 HBL MOTTOOver the past 15 years, we have been able to acquire a large customer base enabling us to become

the market leader. This has been possible through our continuous and vigorous efforts over the

years to give the very best to the customers. Although we do focus on the core products and

services, we believe in thinking out of the box, so as not to limit ourselves to the usual and normal

banking products and services, but rather explore and work vigorously on new product ideas so as

to deliver something new to our customers at all times. It is the innovative approach that gives us

that edge over other banks when it comes to introducing modern banking products and services into

the banking sector. It was us that paved the way for the card services in the country by issuance of

HBL proprietary card, the first card to be issued in the country. We were also the first to introduce

ATMs. Besides this, many of the banking products and services that are today in the menus of

almost all the banks in the country, were introduced by us.

All of this has been possible because of young, professional, qualified and experienced human

resources we have. The high quality of the human resources has been equally supplemented by

empowerment– a critical aspect of the decision-making process. Inherent quality of strong human

resource, empowerment and cutting edge technology has been the key factors for us to proudly

justify our motto- ‘The Power to Lead’.

3.5 Core ValuesWe believe in and adhere to the following core values:

• Providing quality services for the customers. With innovations and customizations to meet

customer needs to uphold quality of service.

• Building a healthy future for its employees.

• Providing attractive returns for the stakeholders.

• Upholding honesty and sincerity.

29

• Carrying out extracurricular activities to bring about the feel of fun at work

• Developing a fruitful bond with society through corporate social responsibilities

3.6 HBL VISIONHimalayan Bank has the vision of becoming a leading bank of the country by gaining substantial

business growth through premium products and services to customers, thus ensuring attractive and

substantial returns to all our stakeholders.

3.7 HBL MissionThe Bank’s mission is to become preferred provider of quality financial services in the country.

There are two components in the mission of the Bank; Preferred Provider and Quality Financial

Services; therefore people at HBL believe that the mission will be accomplished only by satisfying

these two important components with the Customer at focus. The Bank always strives positioning

itself in the hearts and minds of the customers. Himalayan Bank is committed to be a Bank which

has "The Power to Lead."

3.8 RISK MANAGEMENTRisks and returns are parts and parcels of commercial banking. The environment in which the Bank

and its staff can perform extremely well may also provide a breeding ground for unmanageable

risks. On the other hand we also believe that if handled well, this can be converted into our

competitive edge. With proper grooming of the team that can perform beyond the level of standard

performance we believe we can convert these into advantages and make it 'return-friendly'. In line

with the international banking norms three major risks- operational risk, credit risk and market risk

are being managed through proactive risk management by our team who are one of the best and

brightest talents in the industry today.

3.8.1 Operational Risk ManagementWe have been able to lessen our operational risks arising from different activities by adopting an in-

built e financial system which despite of appearing as being rigid, is also flexible enough not to

adversely affect our service delivery which in turn boosts public trust and confidence. It has a well-

built system for controlling Information Technology (IT) functions aimed at maximizing all the

possible benefits that could be harvested from technology and supporting activities geared towards

attaining the goals and objectives of the Bank. Probable operational problems arising from any field

30

are pre-evaluated and corrective measures are immediately put in place in order to stop occurrence

of such problems, nullify its impact and reduce the chances of reoccurrence of such cases in future.

We have developed strong monitoring and control systems that have automatic check and balance

mechanisms in place to mitigate operational risks, to identify and control breaches in the internal

controls and to preclude fraud and other untoward events.

3.8.2 Market Risk ManagementIn today’s world banking operation is unpredictable and volatile with intrinsic market risks, if

calculated moves are not taken in time. Adverse movement in the market rates/prices, interest rates,

foreign exchange rates, commodity prices and equity prices are the major factors responsible for

engendering market risks the commercial banks face today. With the well-trained and efficient

workforce, we have been successful in weathering the turbulence that have come across our path

and surge on with the confidence that we will manage those that may cross our path in the future.

Risks associated with breakdown of traditional correlations between market rates, asset-price

uncertainty, ineffective hedging behaviour and adverse effects on collateral valuation are tracked by

making right decisions at the right time. With over fifteen years of our operations, we have been

able to continuously maintain effective competitive intelligence through our strength of well-knit

staff team and effective management style. We have always been successful in neutralizing or

mitigating the factors responsible for generating market risks. On the strength of market knowledge

and past experiences, we have over the years managed such risk factors and at times used them to

our advantage to get better returns in the domestic or international market.

3.8.3 Credit Risk ManagementToday we are in a very strong position to assess and take care of credit risks, with a strong team of

dedicated and responsible employees. It is the aptitude and the experience of this team that gives us

the upper hand vis-à-vis our competitors. The inherent knowledge of our credit analysts at different

levels of the organization provide us with the confidence to move ahead in this area. A sense of

empowerment harbored by the employees to carry out different operations related to credit business

is what ultimately has made the difference in generating the power to drive us in comparison to our

competitors in the financial sector.

Credit risk if not tackled well has a direct and long-lasting impact on bank management and its

growth. The credit ratings under different classes are managed by different levels of staff to assist in

varied degrees of analytical and decision-making ability. We have created different teams of

31

analysts to develop expertise in specific fields and related activities to handle different types/levels

of credit cases to facilitate unassailable decision-making capability in the field of credit

management.

We understand that there is inherent credit risk in any business proposal in the banking sector. But

the ability to identify these risks and develop ways to mitigate these risks with the capability to

properly monitor insurable inflow of predetermined returns has been our basic guidelines in

approach to credit. We have our own documented Credit Policy Guideline in place which has set

the parameters of our credit operation. We have always believed in making good choices that are

investment-friendly rather than making a meretricious market presence in credit business.

We can pride ourselves today for having a reputation of a very sound A-class financial institution

because of the valuable investments we have made in human resource development by enhancing

and upgrading analytical skills of both our credit team and the concerned supervisory authorities.

This has in turn helped us with the effective formulation and implementation of various risk

management techniques and procedures.

3.9 DELEGATION OF AUTHORITY, RESPONSIBILITY AND

ACCOUNTABILITY.We believe in delegation. But we also understand the aspect of accountability that goes hand in

hand with the authority being delegated. These two aspects help in the effective attainment of

organizational goals of the Bank. Delegation of authority is taken as a prerequisite for the successful

implementation of the planned course of action adopted by the Bank. In order to inculcate a feeling

of accountability in individuals, we put utmost focus on empowering our employees through the

clear-cut delegation of authority in all areas, including in the area of human resource development

and management. This is also taken as a performance measurement tool. We follow a system

whereby authority inherent in individuals at various levels to perform tasks and conduct or manage

activities are always guided and checked by their position-specific accountability. Such a

mechanism has always been beneficial as it creates a productive and responsible working

environment. Whether it is a team or an individual, this sense of accountability helps deter

undesirable behavior and fosters the habit of taking charge for better performance.

32

3.10 RECRUITMENTRecruitment is a key factor for maintaining our competitive edge. Through effective selection

mechanism, it ensures fair selection of right people in right positions from the widest pool of

available potential talents within the organization and from market. We have a policy in place that

recognizes the value of our internal resources and prioritizes possible candidates from within the

organization first and foremost, to be groomed, developed and placed in various required positions

and departments as and when required. This not only empowers and motivates the existing

workforce but also ensures better job fit due to evident knowledge and better understanding of the

organizational knowledge already gained by the incumbents.

For recruitment from outside we are an equal-opportunity employer, with a transparent recruitment

process in place free from partiality and prejudice. Maybe this is why we are the first choice

amongst those in pursuit of their career in the banking industry. We provide learning opportunities

for all the jobseekers and new entrants at all levels, by deploying them to different departments,

branches and cross-functional teams to share ideas, knowledge and information and encourage their

participation in various training programs.

3.11 TRAINING AND DEVELOPMENTThe training and development activities we are carrying out, focuses on optimizing the utilization of

human resource for achieving organizational as well as individual goals.

On the basis of job requirements, performance appraisal, Training Need Assessment surveys we

carry out in-house as well as outstation training programs in the country and abroad. We maintain

an annual training calendar on the basis of which, our employees at various levels, i.e. starting from

new recruits to executives are encouraged to participate in appropriate training programs,

workshops and seminars. During the fiscal year, we have organized 13 in-house programs and have

our employees participate in 59 external programs within the country as well as 13 programs

abroad. Such approach provides benefits for the staff in a broader perspective, besides contributing

to the overall development of the workforce in the organization by imparting them with up to date

technical and behavioral skills. This has also acted as a catalyst in enhancing their job knowledge

and skills; in broadening their horizon; and in developing overall personality, which is of course

passed on to the other members of the team. This nurtures a healthy working environment full of

team spirit ensuring quality of work. This has also infused our employees with leadership skills,

motivation and positive attitudes to bring about changes in the organization.

33

3.12 OTHER SOCIAL ACTIVITIESWe encourage our employees to participate in social, recreational and sports activities, as a means

for overall development. Such activities not only give them a respite from their routine course of

official assignments, but also help in interactive enhancement of management skills, fostering

teamwork and whetting knowledge-sharing and communication skills. We encourage our staff to

come forth with proposals to participate in such activities. We believe such activities provide them

with opportunities to interact with others individuals of different organizations. This builds a spirit

of team encourages coordination and cooperation among the colleagues and members participating

in such interaction activities.

We also acknowledge and value the close interdependence between society and business. As part of

our corporate social responsibility (CSR) we have sponsored and extended our helping hands to

victims of natural calamities donation to flood victims, we have made financial contribution to

sponsor cultural events, fun fairs and publication of magazines relating to children and the disabled

in the society. We also sponsor healthcare activities, and cultural and educational programs

organized by schools, colleges and universities as part of our corporate social responsibility (CSR).

In view of this we are willing to give our full support to social, recreational, sports and (CSR)

activities.

3.13 Objectives of the Himalayan Bank Limited

To become a leading bank in the country by providing premium products and services and

then ensuring attractive and substantial return to shareholders.

To develop lifelong relationship with clients and achieve profitability through customer

oriented service and customer satisfaction.

To widespread its branch network in different part of the countries covering at least one

branch on all development regions facilitating large number of  clients as possible.

To provide financial help to the General Public.

To encourage industries by providing necessary capitals.

To provide safe deposit to the customers.

To provide various kind of credit facilities such as home loan, education loan, etc.

34

3.14 Board of DirectorsDuring the review period, Mr. Manoj Bahadur Shrestha (representing N. Trading) and Mr. P.P

Khetan (representing Mutual Trading Company) continue to chair the Board as Chairman and

Second Vice Chairman respectively. Similarly, Mr. Prachanda Bahadur Shrestha (representing

Chhaya International), Mr. Sushil Bikram Thapa (representing Ava International), Mr. Radha

Krishna Pote (representing Employees Provident Fund) continue as Directors in the Bank’s Board

of Directors.

In addition to this, Mr. Bijaya Bahadur Shrestha representing the general public shareholders and

Mr.Upendra Keshari Poudyal Professional Director continue as Directors in the Bank’s Board of

Directors.

Mr. Ashraf M. Wathra, First Vice-Chairman representing Habib Bank Limited has been replaced by

Mr. Salim Amlani as First Vice-Chairman of the Bank with effect from January 01, 2013.

In a similar vein, Miss. Menuka Shrestha representing Chhaya International, Mrs. Ranjana Shrestha

representing N. Trading, Mr. Sunil Bahadur Thapa representing Ava International, Mr. Surendra

Silwal representing Mutual Trading Company continues as the

Alternate Director in the Bank’s Board of Directors.

Mr. Rajendra Kafle, Alternate Director representing Employees Provident Fund has been replaced

by Mr. Himalaya Prasad Siwakoti as the Alternate Director of the Bank with effect from February

26, 2013.

Further, Mr. Himalaya SJB Rana continues to hold the position of Chief Advisor.

I would like to congratulate the new Director, Alternate Director to the Board, Chief Executive

Officer and the Sr. General Manager and expect their future cooperation towards the Bank’s

progress and prosperity. I would like to also thank former director Mr. Ashraf M. Wathra and

former Alternate Director, Mr. Rajendra Kafle for their invaluable contributions to the Bank’s

success for years. Further, the Board, on this occasion, expresses its firm commitment to continue

work in the best interest of the Bank.

35

3.15 Strategies and Programs for FY 2013/2014

I. To contain NPA at the lowest.

II. To establish 4 branches within and outside the valley.

III. To establish first representative office in Malaysia.

IV. Introduction of Loyalty Card for the customers of Hi-mal Remit in domestic market.

V. To expand remittance business to Asian, European and American markets with a focus on

sophisticated services.

VI. Enhance service delivery of the branches and profit centers

VII. To set up additional 7 ATMs at various places. Till date 77 ATMs has been installed.

VIII. To install additional 500 POS machines.

IX. To introduce new deposit, credit products and services.

X. The Bank shall focus on getting into an agreement to provide gateway service to Bank of

Bhutan for the connectivity of JCB Cards and also to include JCB brand cards for the

switching/routing through HBL network.

XI. To give continuity to recovery of written –off loans in an active manner.

XII. To introduce new deposit, credit products and services

XIII. To make the ambience of various branches convenient and environmental friendly.

XIV. To upgrade T24 version and fine tune for better performance

3.16 CORPORATE SOCIAL RESPONSIBILITYFrom its commencement, the Bank has been discharging its social responsibilities through various

social and allied institutions. The main services being rendered by the Bank on this front include

those relating to education, healthcare, sports, culture and social services. The Bank has provided

financial assistance for the purchase of necessary goods to the old age home situated at Thankot,

Helping Hands Children Home at Chauni and Nepal Children’s Home situated at Chapali,

Bhadrakali.

The Bank has been continuously involved in the development of sports culture such as the cricket,

football, basketball, golf, badminton besides sponsoring dance and other cultural programs.

Similarly, the Bank sponsored various cultural programs that include dance competition, painting

exhibition and music competition. The Bank is alert in discharging its responsibilities in such and

other additional fields.

36

3.17 Awards and Recognitions

Awards and Recognitions received by Himalayan Bank Limited in the last five years

Number 1 Bank of Nepal- 2006 awarded by The Bankers’ Almanac, Britain

Number 1 Bank of Nepal- 2003 awarded by The Bankers’ Almanac, Britain

National Excellence Award- 2003 awarded by Federation of Nepal Chambers of Commerce and

Industry.

The Bankers' Almanac

World Ranking 2006

The Bankers' Almanac

World Ranking 2003

FNCCI - National Excellence Award 2003

37

3.18 HBL Head office and Branches

Inside Valley Branches

CORPORATE OFFICE PATAN BRANCH DILLI BAZAR BRANCHKamaladi, Pulchowk, P.O. Box 20551, Lalitpur, Nepal Bijay Memorial School,P.O. Box 20590, Kathmandu, Nepal. Tel: 5010656, 5010654 Dilli Bazaar, KathmanduTel: 4246218, 4246219, 4227749, 4250201 Fax: 977-1- 5010754 Tel: 4431658Fax: 977-1-4222800 patan@himalayanbank.com Fax: 4431659Swift HIMANPKA dillibazar@himalayanbank.comhimal@himalayanbank.com

NEWROAD BRANCHBishal Bazaar, P.O.Box 8764, THAMEL BRANCH

TEKU BRANCH Kathmandu, Nepal.Karmachari Sanchaya Kosh Building

Kathmandu Business Park, Budhabari Tel: 4243107, 4224787 Tridevi Marg, Thamel,

Teku, Kathmandu, Nepal Fax: 977-1-4240086P.O. Box 20590, Kathmandu, Nepal.

P.O. Box: 20259 newroad@himalayanbank.com Tel:phones : 4250202, 4250359Tel: 4104572, 4104687 Tel:fax : 977-1-4250356Fax: 977-1-4104568 thamel@himalayanbank.comteku@himalayanbank.com NEW BANESHWOR BRANCH

New Baneshwor Chowk, KathmanduTel: 4-785583 CHABAHIL BRANCH

SWOYAMBHU BRANCH Fax: 4-785589 Chuchepati, ChabahilSwoyambhu, Kathmandu nbaneshwor@himalayanbank.com Kathmandu.Tel: 977-1-4033798 Tel: 4462045Fax : 977-1-4033776 chabahil@himalayanbank.comswoyambhu@himalayanbank.com MAHARAJGUNJ BRANCH

Tribhuvan University Teaching Hospital,Maharajgunj. CARD CENTER

SORAHKHUTTE BRANCH P.O. Box # : 20590, Kathmandu, Nepal Corporate Office, Kamaladi,Sorahkhutte Chowk, Kathmandu Tel: 4425183, 4424292 Kathmandu, Nepal.Tel: 4389035 Fax: 977-1-4425181 Tel: +977-1-4246218 / 4246219Fax: 4389036 maharajgunj@himalayanbank.com Fax: +977-1-4245932sorahkhutte@himalayanbank.com

KAUSHALTAR BRANCH BHAKTAPUR BRANCHSATDOBATO BRANCH Madhyapur Thimi Sukuldhoka, Bhaktapur, Nepal.Satdobato Chowk, Lalitpur Tel: 01-6639564 Tel: 6617493Tel: 01-5002645 Fax: 01-6639563 Fax: 977-1-6617492Fax: 01-5002535 bhaktapur@himalayanbank.comsatdobato@himalayanbank.com KALANKI BRANCH

Kalanki ChowkTel: 4279762 BATTISPUTALI BRANCHFax: 4279765 Battisputali, Kathmandukalanki@himalayanbank.com Tel: 01-4484990

Fax: 01-4484991battisputali@himalayanbank.com

SAMAKHUSI BRANCHSamakhusi, KathmanduTel: 01-4354663Fax: 01-4354446samakhusi@himalayanbank.com

38

Outside Valley Branches

BAGLUNG BRANCH BUTWAL BRANCH KAWASOTI BRANCHJeep Park, Baglung Traffic chowk, Butwal, Ruapandehi Kawasoti, Nawalparasi

Tel: 068-522690 Fax: 068-522691 Tel: 071-551016, Fax : 071-546908Tel: 078-541040 Fax: 078-5410451

baglung@himalayanbank.com butwal@himalayanbank.com kawasoti@himalayanbank.com

DAMAK BRANCHBANEPA BRANCH Highway, Damak NEPALGUNJ BRANCHBanepa - 10, Panauti Road Tel: 023-585291 Fax : 023-585292 Dhamboji Chowk, NepalgunjTel: : 011-664734 Fax : 977-11-664735 damak@himalayanbank.com Tel: 081-527490banepa@himalayanbank.com Fax: 081-527491

nepalgunj@himalayanbank.comDHADING BRANCH

BARAHABISE BRANCH Beech Bazaar, Dhading Besi, Dhading PALPA BRANCH

Barahabise, Sindhupalchowk Phone: 010-521111Silkhan Tole, Ward no. 4, Tansen, Palpa

Tel: 011-489290 Fax: 011-489291 Tel: 075-522641 Fax : 075-522642barahabise@himalayanbank.com palpa@himalayanbank.com

DHANGADI BRANCHAddress: Rato Pool Dhangadi

BETRAWATI BRANCH Tel: 091-520202 Fax : 091-520204 PARSA BRANCHLaharepauwa 1, Betrawati, Rasuwa dhangadi@himalayanbank.com Naya Road, Parsa, Chitwan

Tel:/Fax no: 010 - 681343Tel: 056-583628 Fax no: 056-583629

betrawati@himalayanbank.com Email: parsa@himalayanbank.comDHARAN BRANCHPutali Line, Dharan

BHAIRAHAWA BRANCH Tel: 025-528966 Fax : 025-528968 POKHARA BRANCHPrahari Tole, Bhairahawa, Nepal dharan@himalayanbank.com New Road, Pokhara-9Tel: : 071-526945, Fax : 977-71-524407 Tel: 061-538907 Fax : 061-538908

bhairahawa@himalayanbank.comEmail : pokhara@himalayanbank.com

GHORAHI BRANCHNew Road, Dang

BHARATPUR BRANCH Tel: 082-562901 Fax : 082-562902 RAM BAZAAR BRANCH

Pulchowk,Chitwan, Nepal ghorahi@himalayanbank.comAmarsingh Chowk, RamBazaar Pokhara

Tel:p : 056-572097 Fax : 977-056-571822 Tel: 061-430301bharatpur@himalayanbank.com Fax: 061-430302

GORKHA BRANCHAddress: Bus Park, Gorkha

BIRATNAGAR BRANCH Tel: 064-421520 Fax : 064-421521 TANDI BRANCHSanihat, Mainroad North, Biratnagar, Nepal gorkha@himalayanbank.com Sauraha Chowk, TandiTel: 021-524653, Fax no: 021-528452 Tel: 056-560750 Fax : 056-561850biratnagar@himalayanbank.com tandi@himalayanbank.com

HETAUDA BRANCHMain Road, Ward No. 10 Hetauda, Nepal

BIRGUNJ BRANCH Tel: 057-525877 Fax : 977-57-523156 TRISHULI BRANCHMahabir Road ,Birgunj, Parsa.Nepal hetauda@himalayanbank.com Bidur Chowk, Trishuli

Tel: 051-524678, Fax : 051-527518Tel: 010-561696 Fax no: 010-561697

birgunj@himalayanbank.comEmail: trishuli@himalayanbank.com

ITAHARI BRANCHPathibhara Market, Dharan Road, Itahari,

BIRTAMODE BRANCH Sunsari.Sanischarya Road, Anarmani, Birtamod Tel: 025-587041 Fax: 025-587940Tel: 023-545611 Fax: 023-545610 itahari@himalayanbank.combirtamod@himalayanbank.com

39

3.19 Equity participation:

Ownership %

Local-

-Employee Provident Fund

-Nepalese Promoters

-General public

14

51

15

Foreign(Habib Bank Limited,

Pakistan)

20

Total 100

(Source: Annual report of HBL)

3.20 Financial Highlight

40

Deposit Composition

Loan Composition

41

Income Composition

Expense

Composition

42

3.21 SWOT ANALYSIS

An overview of HBL’s SWOT analysis

Strength Weakness

First- class Infrastructure and

advanced technology.

Goodwill.

Quality Service.

Facility of ABBS.

Effective Inter-departmental

communication.

Pioneer of Online banking.

Involvement in off-balance sheet

activities.

Proper strategic planning and

preparation.

Strong management team.

Lack of sufficient ATM’s in and

outside valley.

Insufficient marketing.

Availability of only SCT based

debit card or limited card services.

Opportunities Threats

New Investment opportunities.

Growing international trade.

Introduction of innovative

products, services and programs.

Installation of updated technology.

Political instability.

Changing customer preferences.

Changing technology.

Intense competition.

Lack of investment opportunities

in the market.

SWOT

43

CHAPTER 4

RESEARCH

METHODOLOGY

44

4.1 Title of the study“A Comparative study of Himalayan Bank Limited and Everest Bank Ltd., with special

reference to customer feedback on product and services offered by Himalayan Bank

Limited.”

4.2 Objectives of the studyThe primary objective of this internship is to gain valuable insights into the business

sector, more specifically the banking industry in addition to this another major purpose is

also to relate the theoretical knowledge with the practical experience and to enable us to

be more prolific in acquiring the real life techniques of achieving results through both

individual effort and team building along with the knowledge gained from the academic

environment.

Main objective of the study is to “A Comparative study of Himalayan Bank Limited and

Everest Bank Ltd., with special reference to customer feedback on product and services

offered by Himalayan Bank Limited”.

The other specific objectives of the study are:

To examine different product and services offered by Himalayan Bank Limited.

Compare consumer preference about various product and services of Himalayan

bank limited with Everest bank limited.

Consumer’s perception towards private banking and their expectations from

private banks.

Customer feedback on product and services offered by Himalayan Bank Limited.

Draw out with conclusions and suggestion based on the analysis and the

interpretation of data.

4.3 TYPE OF RESEARCHResearch is one of the most important parts of any study and pertains to the collection of

information and knowledge. Marketing research is defined as the systematic design,

collection, analysis, and reporting of data and findings relevant to a specific marketing

situation facing the company. My project has been developed on has basis of both

45

exploratory and descriptive research. The research process depends upon developing

the most efficient plan for gathering the needed information. Designing a research plan

calls for decisions on the data sources, research approaches, research instruments,

sampling plan, and contact methods.

4.4 MethodologyResearch methodology is a systematic investigation on a particular subject matter. It is a

study of material and source in order to establish facts and reach a new conclusion. It is

concerned with the various methods and techniques used in the process of research

studies

4.4.1 Organization selectionSelection of organization for internship program is always a crucial task. Being a student

who has specialized in financial courses in the Fifth and Sixth semester of our BBA, I

had to select a financial institution which could help me broaden my spectrum of

knowledge about the banking, business and financial sector. So I decided to choose

Himalayan Bank Limited for doing my internship. I thought that it would give me an

opportunity to realize my theoretical knowledge into practical field.

In order to approach the bank, the requirements were the recommendation letter from the

college and curriculum vitae. After screening my CV by the authority of Human

Resource Department (Head Office), I was duly selected as an intern for its Birganj

branch. So I started working there from 26th May 2015 to 16th July 2015.

4.4.2 Placement During the internship, I was placed in the Customer Service Department at the Birgunj

Branch. I was required to handle all the activities of the department under the guidance

and supervision of Mr. Manoj Kumar Jha, the junior assistant at the branch. In addition to

her, the other staffs were equally cooperative and helped me to learn the activities of the

department.

46

Table 4.4.2.1: Placement Table

4.4.3 DurationAccording to our board (Gyan Vihar University) we are required to do the internship for

a standard of duration of 45 days. So I also worked at Himalayan Bank for 50 days from

10 a.m. to 6 p.m. I worked four weeks in the Customer Service Department, one week in

remittance and clearing department, one week in letter of credit department and one week

in loan department. The following table illustrates the duration of my internship.

Table 4.4.3.1: Details of internship at HBL

Address Birganj, Nepal.

Working Hour 10:00 Am To 6:00 Pm

Starting Week 26th May 2015

Ending Week 16th July 2015

Working Duration 7 Weeks

Internship Supervisors Mr. Manoj kr. Jha.

Working Departments Customer Service Department (4 weeks)

Remittance and Clearing Department (1 week)

Letter Of Credit Department (1 week)

Loan Department (1 week)

4.4.4 ActivitiesDuring the internship I got the opportunity to perform different activities of the

department. The first 2-3 days I spent gaining information from the staffs of Birgunj

Departments/ Weeks 1 2 3 4 5 6 7

Customer Service

Remittance and Clearing

Letter Of Credit

Loan

47

Branch, and then after knowing that, I spent in the information counter where I had to

serve the customers with various information. I also had to help them filling up their

account opening, account closing and many other forms like demand draft, speed remit

form, deposit voucher of customer etc.

I was placed in the customer service section where following tasks are to be performed:

Table 3.5.4.1: Activities performed in an organization

Name of the department Types of activities Performed

Customer Service

Department

Proper counseling to the customer

with politeness.

Informing Customer about different

types of account and other queries

they have about the operation of

bank.

Opening all types of accounts like

saving, fixed, current, etc.

Uploading the scanned photo and

signature into the Finacle system as

well.

Timely issuance of Cheque books to

customers.

Maintaining proper records of cheque

register.

Distribution of various forms such as

of e-banking, SMS banking, pay bill,

etc. Checking customer’s transaction

and balance on request.

Proper filing of account opening and

closing forms.

Informing the customers if their

cheque has been returned.

Advise customers about HBL

products and services and respond

48

their queries.

Collecting necessary documents and

checking forms of the customers

required for account opening

procedures.

Filing application forms and writing

different application on behalf of

customers on the request of

customers.

Keeping record of the account

opened, account closed, transfer of

the account, customer taking

additional facilities such as Internet

banking, SMS banking, etc.

Providing ATM cards to the

cardholders.

Providing the balance statement and

balance certificate to the demanding

customers after verifying the account

holder signature.

Recording the ATM card holder

information in the register after

arrival of ATM card and pin number

and providing them to the respective

customer after checking the form

filled to get card and verifying the

signature.

Photocopies of citizenship cards,

passports, license and other

documents of the customer required

for recording of customer service

department.

49

Handling the telephone calls.

KYC follow up

Remittance and Clearing Department Made payment to the customers

receiving money from various parts

of the world through RTGS and

SWIFT.

Recording and filing of RTGS,

SWIFT and DD entries.

Helped customers to fill up various

kinds of forms.

Letter of Credit Department Learning about the opening

procedure of Letter Of Credit and

documents which are required to

open it.

Understanding about the applicant,

issuing bank, beneficiary, beneficiary

bank.

Loan Department Learning about the types of loan and

the documents required while

providing the loan.

4.4.5 (DATA COLLECTION) SAMPLE SIZE AND METHODS OF

SELECTING SAMPLEI choose a sample size of 37 respondents consisting of based on judgment sampling. All

respondents were the customers of Himalayan Bank Limited.

The method was simple random sampling.

Data Source

50

For this project both primary and secondary data were valuable sources of information

which are as follows:

a) Primary Source

Primary data means original data that has been collected specially for the purpose in

mind. This type of data are generally afresh and collected for the first time. For my

project work the primary data was collected by means of survey through questionnaires.

Contact methods

Once the client had been decided now my task was how to contact them, and for me there

were only two ways of contacting them and collecting information.

I. Personal Interview: - This method was the most appropriate way of survey,

because by personal interview I came to know about their feeling for Himalayan

Bank Limited.

II. Formal and informal communications with the official persons.

b) Secondary Source

Secondary data provides a starting point for any research and offers valuable sources of

already existing information. Secondary data are the easiest to gather and the cost of

collecting this data is also very low. For my project work it was collected through the

help of various links, documents, websites etc.

Some of them are listed below:

Annual Reports

Brochures of the bank.

Internet surfing.

Publications and journals.

Newspapers, bulletin and booklets.

Bank's official website himalayanbank.com.

Nepal Rastra Bank's official Web Site www.nrb.org.np and Periodicals

4.5 LIMITATIONS

51

The chief limitations that I faced during the internship and during the preparation of this

report are listed as:

The major constraint was the Time constraint. So learning and knowing all the

banking procedure within the internship period i.e., seven weeks is almost

impossible.

Limited access to and the use of the Banking Software, as I was an intern which

prevented me from learning more about the actual transactions and entries in the

system.

Limited knowledge on my part which created hindrance to understand the jargons

and technical procedures of the banking world.

This report only visualizes the activities CSD of the Birganj Branch and not of the

entire organization as a whole.

The study is not applicable to other organizations of similar nature.

Finally, the data collected may not be as accurate as information was collected

from the limited personnel and the customer of Himalayan Bank Limited of

Birganj Branch.

As the internship period was during the closing of the fiscal year, the bank’s staff

had excess workload due to which they couldn’t supervise the interne properly.

Being a student lack of technical knowledge in the respective field was another

factor which limits the report.

52

CHAPTER 5

COMPARISON BETWEEN

HIMALAYAN BANK LIMITED

AND EVEREST BANK LIMITED

53

a. While comparing total debt to total assets ratio, the average ratio of HBL is higher

than that of EBL i.e. 90.82% > 88.92%. From above analysis, debt to equity ratio

of HBL is always higher than EBL, Which implies that HBL has riskier debt

financing position as, compared to EBL over the study period.

b. The loan and advance to total deposit ratio is employed to measure the utilization

of their total deposit on loan and advances. The average ratio of EBL is nominally

lower than that of HBL (97.53% < 97.84%). It shows that both banks has better

utilization of deposits at same level. According to co-efficient of variation, EBL is

more fluctuating than HBL over the study period. The C.V. of EBL is 4.71%

which is higher than EBL which is 2.73%.

c. In term of loan and advance to fixed deposit ratio, the average ratio of HBL is

higher than that of EBL i.e. 436.98% > 346.80%. In this analysis, it is concluded

that HBL has proper utilization of fixed assets than EBL because HBL has higher

average ratio than EBL.

d. Profitability ratio is measurement of efficiency and the search for it provides the

degree of success in achieving desired profit. The yearly ratio of both banks is in

fluctuating trend. It can be seen that EBL net profit to total assets ratio is less than

that of HBL i.e. 1.54% < 1.56%. HBL has managed to earn a steady rate of return

on its assets employed in each fiscal year. The average rate of return of HBL is

54

higher than that of EBL, which concludes that HBL has found better performance

by utilizing overall resources.

e. The activity turnover ratio is used to examine the efficiency with which the firm

manages and utilizes its assets. The activity turnover of HBL in terms of loan and

advances to total deposit ratio is slightly higher than that of EBL. The minimum

ratio of HBL is 95.92% whereas the maximum ratio of EBL is only 89.3%. And

the average ratio of loan and advances to total deposit ratio of HBL and EBL are

(i.e. 97.84% > 97.53%). From the analysis; it is concluded that HBL has been

successfully utilized their deposits in term of loan and advances for profit

generating purpose compared to EBL.

f. In term of current ratio both banks are below than the normal standard but EBL is

slightly better than HBL. The average ratio of EBL is higher than HBL i.e.

(2.19% > 1.84%). The C.V. of HBL is higher than EBL which indicates that HBL

is riskier and there are fluctuations in the ratios of EBL, in HBL ratios are

decreasing.

55

Debt to equity ratio

Average total deposit ratio

Average fixed deposit ratio

Net profit to total asset ratio

Activity turnover ratio

Current ratio0

50

100

150

200

250

300

350

400

450

500

90.82 97.84

436.98

1.56

95.92

1.84

88.92 97.53

346.8

1.54

89.3

2.19

Comparison between HBL and EBL

HBL EBL

56

CHAPTER 6

FACTS AND FINDINGS

57

The bank has good relation with its customers. The customers are satisfied with the

relationship manager service provided by Himalayan Bank. The bank and its customers

have a long term relationship. Himalayan Bank has the tendency to retain its customers at

any cost. They believe that the old customer is more profitable instead of a new one that’s

why they try to maintain good and long term relations to their customers. Less no. of

customer use mobile banking or net banking.

i) Himalayan Bank Limited is running successfully for several years since the year of

establishment.

ii) Continuity is given to recovery of written off loans.

iii) Since after its establishment it is in a state of point and continuously going on the

same task.

iv) The deposits on bank are increasing tremendously.

v) Bank is continuously increasing the number of branches.

vi) Also working in sector of business with different social activities.

vii) Also helping in economy of the country by contributing a lot of money through the

tax.

viii) Technically also the bank is able to introduce and other ancillary services.

ix) Continuity is given to installation of ATM’s in different regions.

58

CHAPTER 7

DATA ANALYSIS AND

INTERPRETATION

59

The survey was conducted in the month of July, 2015 from 37

customers.

CUSTOMER SATISFACTION

Q.1 Willingness to listen and respond to your needs.

S. NO. RESPONDS NO. OF RESPONDENTS

1 Satisfied 32

2 Neutral 5

3 Dissatisfied 0

4 Total 37

5 % Users 100%

86%

14%

Customer satisfaction

Satisfied Neutral Dissatisfied

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the satisfaction

level. For instance, 86% of the customer say that the bank staffs have willingness in them

to listen and respond to their needs and they are satisfied with it, whereas 14% of

customer say that they are neutral with it and no any customer say that they are not

dissatisfied with this services.

60

Q.2 Staff members of bank are friendly and courteous.

S. NO. RESPONDS NO. OF RESPONDENTS

1 Satisfied 28

2 Neutral 6

3 Dissatisfied 3

4 Total 37

5 % Users 100%

48%

35%

17%

Customer satisfaction

Satisfied Neutral Dissatisfied

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the satisfaction

level. For instance, 48% of the customers say that they are satisfied with the friendly and

courteous behavior of bank staff members, whereas 35% of customers say that they are

neutral with it and 17% customers say that they are dissatisfied with their behavior.

61

Q.3 Services of money via Himal Remit.

S. NO. RESPONDS NO. OF RESPONDENTS

1 Satisfied 15

2 Neutral 5

3 Dissatisfied 1

4 Total 21

5 % Users 57%

71%

24%

5%

Customer satisfaction

Satisfied Neutral Dissatisfied

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the satisfaction

level. For instance, 71% of the customers say that they are satisfied with the services of

money via himal remit, whereas 24% of customers say that they are neutral with it and

5% customers say that they are dissatisfied with this service.

62

Q.4 How much time is taken during your Telephone enquiry?

S. NO. TIME PERIOD NO. OF RESPONDENTS

1 <2 minutes 28

2 2-5 minutes 5

3 >5 minutes 4

4 Total 37

5 % Users 100%

75%

14%

11%

Customer satisfaction

<2 mins 2-5 mins >5 mins

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the stated time

period. For instance, 75% of the customers say that their telephone enquiry is responded

within 2mins, whereas 14% of customer’s enquiry takes 2-5mins and 11% customer’s

enquiry takes more than 5mins.

63

Q.5 How much time is being taken to deposit your cash?

S. NO. TIME PERIOD NO. OF RESPONDENTS

1 <5 minutes 14

2 5-15 minutes 13

3 >15 minutes 10

4 Total 37

5 % Users 100%

38%

35%

27%

Customer satisfaction

< 5 mins 5-15 mins > 15 mins

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the stated time

period. For instance, 38% of the customers say that time taken to deposit cash is within

5mins, whereas 35% of customer’s say it take 5-15mins and 27% customer’s say it takes

more than 15mins to deposit their money.

64

Q.6 How much time is being taken to encash your cheque?

S. NO. TIME PERIOD NO. OF RESPONDENTS

1 <5 minutes 14

2 5-15 minutes 14

3 >15 minutes 9

4 Total 37

5 % Users 100%

38%

38%

24%

Customer satisfaction

< 5 mins 5-15 mins > 15 mins

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the stated time

period. For instance, 38% of the customers say that time taken to encash their cheque is

within 5mins, whereas 38% of customer’s say it take 5-15mins and 24% customer’s say it

takes more than 15mins to encash their money.

65

Q.7 In how many days do you get your ATM card?

S. NO. TIME PERIOD NO. OF RESPONDENTS

1 <5 days 10

2 5-15 days 9

3 >15 days 12

4 Total 31

5 % Users 84%

32%

29%

39%

Customer satisfaction

< 5 days 5-15 days > 5 days

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the stated time

period. For instance, 32% of the customers say that time taken to get ATM card is on 5 th

day, whereas 29% of customer’s say that they get their ATM card within 5-15 days and

39% customer’s say that they get their ATM card in more than 15 days.

Q.8 In how many days do you get your cheque book?

66

S. NO. TIME PERIOD NO. OF RESPONDENTS

1 Same day 27

2 2 days 5

3 >2 days 4

4 Total 36

5 % Users 97%

75%

14%

11%

Customer satisfaction

Same day Next day > 2 days

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the stated time

period. For instance, 75% of the customers say that they get their cheque book on same

day, whereas 14% of customer’s say that they get their cheque book on next day and 11%

customer’s say that they get their cheque in more than two days.

Q.9 In how much time you demand draft is being prepared?

67

S. NO. TIME PERIOD NO. OF RESPONDENTS

1 30 minutes 10

2 30-60 minutes 12

3 >60 minutes 9

4 Total 31

5 % Users 84%

32%

39%

29%

Customer satisfaction

30 mins 30-60 mins > 60 mins

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the stated time

period. For instance, 32% of the customers say that their demand draft if being made

within 30mins, whereas 39% of customer’s say that their demand draft is being made in

30-60mins and 29% customer’s say that it takes more than 60mins to make their demand

draft.

Q.10 On which day your cheque is being cleared?

68

S. NO. TIME PERIOD NO. OF RESPONDENTS

1 Same day 27

2 Next day 8

5 Total 35

4 % Users 95%

77%

23%

Customer satisfaction

Same day Next day

INTERPRETATION:

The above pie diagram shows the percentage of customers coming under the stated time

period. For instance, 77% of the customers say that their cheque is being cleared on same

day, whereas 23% of customer’s say that their cheque is being cleared on next day.

69

FURTHER SUGGESTIONS PROVIDED BY CUSTOMERS TO IMPROVE

THE SERVICES PROVIDED BY HIMALAYAN BANK LIMITED.

Some of the customers were very keen on providing us with some of the requirements on

their visits by observing. Hence following are their suggestions.

Facilities for parking.

Providing space to keep helmets.

Token system should be introduced.

To make a separate cash counter for corporate clients.

More seating area arrangements.

To increase cash counters.

70

CHAPTER 7

CONCLUSION

The study is primarily aimed at assessing financial aspects of the bank. It has been found

that the bank has widespread branches around the major cities and has a pleasant

71

goodwill that it has created in the market through its operations. The conclusion of

analysis can be concluded as below:

The study mainly was on the customer orientation that how they think, what they want

from their banks and how they take decision going to any bank. In this study I found that

the bond of Himalayan Bank with its customers is good, because Himalayan Bank mainly

focuses on retaining their customers. This study finds that however Himalayan Bank is

the leading private sector bank and have its vast range of products and availability of

options make it one of the better banks in Nepal. The bank should pay more attention on

giving updates and should increase the level of service providing because the competitors

of Himalayan are better in this area. The bank should try to increase the use of

technology like mobile and net banking among its customers.

In terms of total debt to total assets ratio, average total deposit ratio, average fixed

deposit ratio, net profit to total assets ratio and activity turnover ratio HBL ratio is higher

than EBL but in terms of current ratio HBL average ratio is lower than EBL which

indicates HBL is riskier and its ratio is decreasing.

There is high prospective and growing market for card business especially acquiring

business. Nowadays, people are being aware about card facilities and the advantages of

holding a card, which is gradually progressing in industrialization process and increasing

income level among the higher and middle class society. So the possibility of other banks

and/or financial institutions entering this field should not be ignored.

Conclusively, the bank has been able to produce satisfactory results over the review

period despite environmental adversities. While we relate the present economic condition

with its performance, we won't have any other option in hand apart from praising it for

whatever it has been able to realize.

72

CHAPTER 8

Recommendations &

Suggestions

With reference to the findings and the conclusion drawn out above following

recommendations and suggestions to bank can be sorted out:

73

Bank should try to focus on customer satisfaction and relation.

Bank should search for new opportunities and greater coverage in remittance

service.

Bank should try to change the employee behavior by introducing the concept of

teamwork and delegate them adequate authority to carry out their work.

Bank should try to satisfy its customer by providing them prompt service.

To improve the skill of banks employee regular skill development programs

should be initiated and periodic skill test for the employees can be applied.

Since so many risks are attached with the credit card business, HBL should

develop innovative and effective risk management programs and services for its

members. For this purpose, HBL should give knowledge about credit card fraud

to its customer and should prevent them from fraud by using latest technology.

Thus Public awareness of credit card fraud should be generated to capture more

market for credit card.

Bank should build the effective feedback channel so that the bank can know and

make correction from the valuable suggestions and comment and, feedback of the

marketing activity given by the consumer.

Himalayan Bank needs to promote and encourage people to use internet banking.

CHAPTER 10

BIBLIOGRAPHIES

74

WEBSITES www.himalayanbank.com

www.nrb.org.np

https://www.himalayanbank.com/uploads/publication/

21st_annual_report.pdf

http://documents.mx/documents/a-report-on-himalayan-bank.html

www.google.com

CHAPTER 11

APPENDIX

75

A) HIMALAYAN BANK LIMITED (BIRGUNJ, NEPAL)

B) At the customer services in Himalayan bank limited

76

C) Opening of Letter of credit details

77