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KATHMANDU
A fIELD REPORT
Submitted By:
Batch 2008-2012
Submitted to:
The Dean
Faculty of Management
Purbanchal University
Biratnagar, Nepal
Submitted In:
ACKNOWLEDGMENT
This report has been prepared for the partial fulfillment of BBA course as
prescribed by
Purbanchal University in the subject area. This report provides precise and
up-to-date
The quality of this report was greatly enhanced by the gracious guidance and
suggestion made
had selected this topic for my field report because I felt there was a great
need to conduct a
AS it has many branches all over the country, hence this study
will concentrate on the consumer financing and services provided
by bank of Kathmandu ltd in Kathmandu Branch. To overcome the
existing problem bank has to make their policies and structure
effective and efficient. To tackle the existing political problem of
bank has to ready for the changes and make the contingent of
polices.
VIVA-VOCE SHEET
VIVA-VOCE COMMITTEE
…………………..
Govinda Sethi
…………………
RECOMMENDATION
This is to certify that the Field Report submitted by Mr. SUNIL KUMAR
MAHATO entitled CUSTOMER SERVICE PROVIDED BANK OF
KATHMANDU has been prepared and approved by the Department in the
prescribed format of faculty of management .This FIELD Report is forward for
evaluation.
……………………….
Padma Nath Tiwari
Supervisor
………………………………….
Govinda Sethi
March, 2011
TABLE of CONTEBTS
Most people don’t normally get access of capital through equity Markets so
they would Normally get access to debt finance through the established
financial institutions including Banks, credit union, insurance companies, etc.
Set to facilitate the needs of the customers, Bank of Kathmandu has been
providing excellent customer services to overcome the fierce and
Competition stands upright in the competitive market of banking sector.
cards etc as well. So many customers have been attracted long time back
but its Market was limited. But now as Many Banking institutions have
started the services of providing consumer loan, the competition has
increased.
the consumer financing market, many people are attracted towards the
services provided by the banking institutions. As consumer financing and
deposit services are useful to the customer with reasonable income, it seems
that consumer financing strategies should be overviewed .So, this study
overviews the consumer servicing strategies of Bank of Kathmandu.
.Different strategies for various consumers financing housing loan, car loan,
educational loan
Vehicle loan vehicle purchase loan and foreign employment are explored in
the study this study
Will also have to be familiar with the modern banking products like online
banking, ATM cards
and credit cards and various other deposit products introduced by Bank of
Kathmandu.
The main issue of the study is how Bank of Kathmandu is serving the customers in
consumer financing and what strategy and policy is adopted By BOK.As many
customers are attracted towards the different facilities of the organization, the
analysis of the
entire scheme is necessary. Hence, this report is prepared to analyze the consumer
financing strategies
housing loan, car loan, educational loan vehicle loan vehicle purchase loan
and foreign employment are explored in the study this study will also have to
be familiar with the modern banking products like online banking, ATM cards
and credit cards and various other deposit products introduced by Bank of
Kathmandu.
Research methodology:
Consumer financial statement for the current year is analyzed and visits the
homepage of bank of Kathmandu to take the most of information.
Seeks to define the services in terms of providing the quality services to its
customer
The study gives the overview of the company, whether the company is able to
provide those
Nepalese economy and make take it to over heights. Bok also aims to facilitate the
nation’s economy and to become more competitive globally. To achieve these, Bok
has been focusing on its set objectives right from beginning. To highlight its
objectives:
. To contribute to the sustainable development of the nation by mobilizing domestic
. To use the least banking technology to provide better, reliable and efficient
services as a reasonable cost.
.To facilitates trade by making financial transaction easier, faster and more reliable
through relationship with foreign banks and money transfer agencies.
distinguishing the bank as an efficient, competitive, safe and top –quality financial
institution.”
To offer financial services and becoming the “Bank choice “by dedicating to the
progress and growth of the institution for the community ,customers ,employees,
Technologies PVT. Ltd. BOK Debit card enables you to make purchases of goods
and services at various merchant locations as well as cash withdrawal from ATMS
with access to your bank account. The customer can have easy access to their
nominated account maintained with Bank of Kathmandu Ltd. From any ATM location
that speeds to more than 50 ATM location .Further they can make purchase of
goods and services from more than 200 merchant locations through Point –of –sale
terminals.
Deposit products
Current Account: To suit every business need BOK has tailored made Current
account which rightly meets the customers need in today faced paced business.
With advanced technological features all their banking needs are well taken care of.
An account holder can have access to his /her from all Bok branches in just few
seconds.
Ladder Saving : Ladder Saving of Bok not just helps the customers to save money
but also helps the money now grow with competitive interest rate on daily balance.
This power packed account is well packaged with all the various banking services
balance.
introduced Sajilo Bachat kahata with minimum balance of just RS.1000. As the
name Sajilo Bachat Khata suggests, it has been easy,hassle-free and affordable to
general public . With Sajilo Bachat Khata,one have easy access to modern Banking
product jestha Lagani Koshi . The product has been developed with the view to
encourage saving habit and address the need of elderly citizen. JLK is ideal for
retirees or people of the age of 60 years and above. JLK not only offers attractive
rate of return (like fixed deposit) but also flexibility (like saving account). It is a flexi
–fixed deposit scheme wherein to this withdrawals as per pre-agreed terms are also
Griha Laxmi Bachat : Bok has introduced a new saving product targeted
especially for household /working women to offer them the best financial services
and the best banking practices. The main purpose of the product is to inculcate
organization ,he /she can open an operative Account call Account at Bank of
Kathmandu and can earn additional earning for his /her excess funds.
Fixed Deposit: Tenure ranging from seven days to over, fixed Deposit at Bank of
Kathmandu allows one to diversify his portfolio to best suit his investment plan.
Scheme where in monthly equated deposit over a fixed period of time yields higher
returns.
Corporate Credit
Project Finance (Term Loan): Based on the validity of the project /proposal,
Term Loan to finance the long term financing need of a firm /company may be
made available. This loan is normally provided of 65%of the financing requirement
with a maximum tenure of 60 Months. Term could vary depending upon the need of
the project.
various types of working capital facilities /loan may be also availed. Some of the
Overdraft: This revolving /open term facility enables a firm /company to manage
Nepal depend on imported items. Short Term trust Receipt Loans are the most
Export Loan: Export loan facilitates to the exporters to process/collect stocks for
exports.
Business Credit
Trust Receipt /importer Loan (Trade finance): Majority of the business in Nepal
depend on imported items. Short Term Trust Receipt Loans are the most common
Loan against Govt. Bond /1 st class Bank Guarantee: A low cost secured loan
Priority Sector Deprived sector Loan: By virtue of this product small entrepreneur
Education Loan: To help create a better future, BOK finances student for their
studies inland and abroad.
Festivity Loan: BOK also finances individuals to meet their personal expenses
and social obligations such as marriages, barthabandh and other social celebration.
Furthermore, the bank also provides loans for medical treatment, vacations etc.
1. General Micro finance: This product has been devised for financing general
micro finance loans to clients through partner institutions involved in offering Micro
finance services. A micro finance loan is defined as loan used for various income
generating activities including limited to purchase if livestock, loans for mini grocery
stores, vegetable loans, etc. Non –income generating loans such as installing bio –
gas units shall also be availed but only with prior approval from Bank of Kathmandu.
2.Agriculture and forest Based product Loan : The product has been
devised to allow farmers, agricultural cooperatives, community forest users and
forest based products to have access to finance for funding working capital
Enterprises with an objectives to raise income in rural and urban areas of Nepal.
4. Vehicle and Accessories finance: The product has been devised for
financing vehicles and vehicle related accessories to self- employed low income
concept.
services via SWIFT. SWIFT stands for society for worldwide interbank financial
and communication worldwide. You can receive remittances and be credited in your
Bank account virtually from anywhere around the globe. Similarly, you can transfer
money abroad through SWIFT transfer even without having any bank account with
the bank.
Demand Draft: You can buy/sell drafts drawn on /by different international banks at
Bank of Kathmandu. Bank of Kathmandu has strong foothold in the issuance U.S
Traveler’s Cheque: You can purchase and sell travelers cheques at Bank of
Kathmandu Limited. Travelers cheque , easy and secured way to carry cash when
you r are on travel, can be bought from Bank of Kathmandu at competitive price.
only the bank in Nepal to provide charge free TC encashment for American express
Travelers Bank,. You can enjoy and benefited by charge free TC encashment.
reliable time bound service, enabling inflow of foreign earnings to the country with
level of security. You can receive your remittances within few minutes of payment
instruction made through in alliance with foreign Money Transfer Companies. The
Other Services
Gift Cheque: BOK‘s gift cheques offer customer an essay method for arranging gift
for various social occasion. BOK gift cheques are suitable for all occasion and are
exports to various parts of India. Bank of Kathmandu can be your best business
partner in collecting your bills receivables more efficiently. You simply need enroll
for the service and provide detail of your customer that include names and address
export proceeds or payments to your account in a short span of time than normal
transaction time.
Safe Deposit Locker: The burden of having to worry about valuable possessions like
providing loans and several of the facilities like online banking, ATM cards and
credit cards etc. Bank of Kathmandu has been providing consumer financing to
PEST Analysis
PEST analysis stands for “Political, Economical, Social and Technological Analysis”
and gives a certain overview of the different macro –environmental factors that the
for operations.
Due to political instability, the BOK has not been able to introduce more attractive
In this competitive world of banking sector, consumer servicing has the functional
area of the institutions and the people are also attracted towards the financing
scheme due to the advantage like easy installment schemes, low interest on loans
etc. AT present, the bank of Kathmandu has been serving wide range of customers.
The consumer financing strategies have been changing along with the time and the
Technology plays a vital role in the development of any sector. Likewise, the
technological pace of Bank of Kathmandu is moving along with the time. Bank of
successful banks in Nepal. It has been maintaining its positions in providing the
facilities and as one of the hassle-free banking service provider. Bank of Kathmandu
is well known for its efficient Management information system (MIS) and has been
giving quality services to its customer through various schemes and options.
In providing consumer financing services, it has been successful because of its low
of the applicant, etc are verified by the time of opening up an account. Similarly,
There are factors which affect the bank’s activities which are listed below.
Study Analysis
Modern organization across the globe is facing challenges in their survival
strategies. This competition has crossed the path of banking sector as well. Many
banks are emerging in Nepal with different schemes and strategies. Online banking,
ATM cards, credit cards and different loan facilities are some of the attraction
Bank of Kathmandu is one of the most banks in Kathmandu. It has been providing
different services to its customer for more than a decade. Services like consumer
financing and the loan and advances provided by the bank of Kathmandu are
considered some of the best services due to the options given by the bank.
Key findings
Some of the reasons behind the success of Bank of Kathmandu:
Addition of the other various facilities like online banking, ATM cards, gift Cheque,
Chapter Summary
Consumer financing provides the access of capital required to the customer. Bank
of Kathmandu has been providing services like deposit, and loans and advances,
ATMS, etc to overcome the fierce competition in the banking industry all over Nepal.
In the present political situations of Nepal, a bank has to have flexible strategies to
tackle different problems that it may face which Bank of Kathmandu is capable
of .As the report is prepared on the basis of qualitative data, presentation and
analysis are done accordingly. Key findings of the study are overviewed in the next
cha
CHAPTERIII: PRESENTATION AND
ANALYSIS
A loan is a type of debt. Legally, a loan is a contractual promise between two parties
where one party, the creditor, aggress to provide a sum of money to a debtor ,who
promises to return the money to the creditor either in one lump sum or in parts over
a fixed periods in time. This agreement may include providing additional payments
of rental charges on the funds advanced to the debtor for the time the funds are in
institutions. During the year, BOK has been able to advances loans to small medium
business and selected customers. This has been a major factor in successfully
building the portfolio in the market, which has limited long term financing
opportunities owing to the fragile security situation of the credits, which has aided
lead/manage some large syndicated loans, particularly those associated with the
hydropower, medicine and education sectors. This has made a positive contribution
Micro –Financing: During the year, BOK has financed pollution-free electric –three
wheelers driven by women, biogas units, herb distillation equipment, etc as in the
initiatives taken towards wholesale micro –credit activities. This has the potential of
making inroads in rural market, which are mainstay of Nepal economy, and also of
risk/competition and lower returns prevalent in corporate financing .BOK has been
advancing hire- purchase loans, housing loans, professional loans and personal. The
bank is also probably the first to advance foreign loans in collaboration with the
bank is also probably the first to advance foreign employment loans in collaboration
with the Government of Nepal. Based on this experience. BOK has syndicated
Loans and Advances of Bank of Kathmandu have increased by 35.62% during the
Growth. Considering the state of the economy and the dearth of viable projects,
these have been considered to be better avenues for investment than the large-
deposited and withdrawn by the account holder, with the transaction and resulting
balance being recorded on the bank’s books. Some banks charge a fee for this
service while others may pay the customer interest on the funds deposited.
from the general public to business houses, NGO, INGPs, diplomatic agencies and
institutional depositors. BOK’s tailor –made deposit facilities tend to meet their
customers need in today’s fast –paced for surplus funds, and make personal
With a view to strengthening its stable deposit base, Bank of Kathmandu has
introduced the “Ladder saving” scheme during the year 2006. Similarly ,in order to
diversify the portfolio, New flexi –fixed deposit products ,Jestha Lagani kosh” and
recurring deposit schemes, “Kopila Bachat Yojana” and Mero Bachat Yojana” and
had also been introduced in the same the year. The product for common
billion during the year. Rise in the interest rate on Treasury Bills has had some
impact on the rates of deposits. Excess liquidity has efficient managed by investing
safe avenues.
2003/04 7,741,645,424
2008/2009 19,856,745,000
2009/2010 24,456,456,500
Chapter Summary
With the help of the final annual report and the homepage of Bank of Kathmandu,
the various services and schemes provided by the bank are overviewed and
presented. The data collected from the annual report is represented in figures
through which the impact of the services provided by the bank on the deposit made
customers than its arrivals. And one of the best ways to this by providing quality
services. This can be different scheme like low interest rate on loans, high interest
Due to the political instability in Nepal, the bank has not been able to perform as
customer by understanding the requirement best suiting the market needs and its
online banking including trade financing, inward and outward remittances and funds
Bank of Kathmandu hopes to offer financial services and becoming the “Bank of
choice” by dedicating to the progress and growth of the institution for the
schemes such as current account, saving account, general account, and other
account. Loans and advances consist of corporate and business loans such as term
loan, export loan, short term etc and consumer loan such as vehicle, education,
Conclusions
Bank of Kathmandu has been providing the consumer services to its customer to
BOK understands that people is financial need vary, so efforts are made to reach
out to as many
Provide new services that offer higher returns, strengthen the information system
for monitoring of
Funds and reducing risks on loans and investments and continue improvement in
service standards by
Capitalizing on the modern software used by the bank and continue customer
service program in
Recommendations
The consumer financing services provided by Bank of Kathmandu are a little bit
complex compared to other banks like Nepal investment Bank, Siddhartha Bank,
Everest Bank etc. so it has to make the procedure more simply, say in acquiring a
safe deposit locker or ATM card, etc. interest rate and processing charge compared
to some of the other bank like Nepal Bank limited seemed higher in Bank of
Kathmandu.
Due to the ever – changing political situation of Nepal, Bank of Kathmandu has to be
prepared for sudden changes and it has to come up with contingent policies when
needed.
In addition, the bank has to build up a sufficient cushion (provision) against possible
losses on loans, investment s, foreign exchange rates movement, etc. The bank has