Project Report

On
“Study of Deposit Marketing
Of Commercial Banks”
For Global Bank Limited

Submitted to
University of Pune in partial fulfillment of requirement of degree
Masters of Business Administration(MBA)

Compiled by
Abishek Khadka
Under guidance of
Prof. Srikant Bhojkar
Indira Institute Of Management
(2009-2011)
 ACKNOWLEDGEMENTS

This research has not been completed by my sole effort only. Many helping hands have made
contribution in different ways to compile this report.

First of all I would like to thank Prof. Pandit Mali, Director of Indira Institute of Management for
allowing me to do Summer Internship project.

I would like to express my heartfelt gratitude to all the staff of Global Bank Ltd (GBL), Nepal
for providing me the opportunity. Special thanks to Operation Manager, Mr. Manohar K.C. who
co-operated me during the entire study period providing data related to study. I am very grateful
to Senior Officer, Mr. Dhiraj Pradhan (Credit Administration Department) for his cordial
guidance.

My immense thanks and gratefulness goes to Mr Nirmal Maskey & Mr. Bishal Kumar who are
involved directly during the study period. And to those employees of GBL who are directly or
indirectly supported me during the research.

And my sincere thanks to Prof. Srikant Bhojkar (Internal project guide) for guiding me in this
research.

Finally, efforts has been made to avoid any kind of error and mistake. So kindly accept my
sincere apology for any of my unintentional shortcomings.

Abishek Khadka
(IIMP)
 EXECUTIVE SUMMARY

Project Title:

Study Of Deposit Marketing Of Commercial Banks

Introduction:

The research is titled ‘Study of Deposit Marketing of Global Bank’. The main objective of study
was to gain experience on Deposit marketing in Personal Selling to individual person and
corporate client. To find out the parameters of interest provided by the banks, future prospect and
Government policies. Different media used by customer to deposit money in the bank learn
about Credit Service/ Relation Mgmt such Managing Clients Information System, related
operations of Credit Administration Department. The sampling technique used for this research
is random and the sample size was 165.

Need of Project:
I was given time frame of two months to perform this task. Through this particular assignment I
have learnt many banking tools and its products and services. Crucially I was also able to
understand client’s requirement along with interpersonal skill, network skills and presentation
skills. I got a chance to work on the credit administration department which gave me knowledge
about Credit Service/ Relation Mgmt such Managing Clients Information System, related
operations of Credit Administration Department and even got the knowledge about banking
software & even came across many credit reports of people. Considerably, I was able to spend
40% of my internship period at Credit administration Department as, in order to conclude
Deposit marketing in good quantitative figures as planned. Spending 60% of my time at Deposit
Marketing and 40% of my time at Credit Administration Department (CAD) .Prior to going for
Deposit Marketing one needs to understand the Banks offered products and service, along with
clients requirement and their nature.CAD also helped to track clients and develop personal
relationship with clients. Synergy of Credit Administration Department and Deposit Marketing
has helped me to achieve above desire objective.

Industry: Commercial Bank

Company: Global Bank Ltd
Product or Services: Deposit, loans, advances, atm, letter of credit, bank guarantee, foreign
currency sales/purchase, remittance service, locker service, draft facility, internet banking, global
plus lounge,365 days banking, evening counter.
Place: Kathmandu

Research Objective:
 To study the deposit marketing of commercial banks.
 To find out various parameters of interest provided by the banks, future prospect
and government policies.
 To study the media used by customer to deposit money in the bank.

Research Methodology:

Research can be defined as diligent and systematic inquiry or investigation into a subject
in order to discover or revise facts, theories, applications on specific topic. For this
research Descriptive type of research methodology was adopted. Arch facts and
information was made available and analysis of the same was undertaken to make a
evaluation.
 Non-Probability sampling technique
 1. Method of Data Collection:
 Primary Data Source:
Survey, email, Personal interaction
 Secondary Data Source:
Internet, Past Records of Company, Annual report, Business magazine.

Research Design

Sample Universe Kathmandu

Sample Frame People of Kathmandu
Sample Size 165
Sampling Technique Non Probability, convenient
Research Instrument Structured Questionnaire
Method Direct Interview through Questionnaire
Data Analysis Method Graphical

1.1 Sampling Plan

 Sampling Technique-Non Probability Purposive Sampling
 Sampling Universe- Kathmandu Region
 Sample Unit- people of Kathmandu
 Sample Size- 165

2. Key findings:
 Company is admirable, popular among Customer for its products and services.
 GBL is a national level commercial bank promoted by highly prominent business
personalities/ groups and reputed individuals of the country.
 It has the great growth potential in Nepal.
 The company serves as an esteemed platform for budding banking executives in
the country.
 With 26 and increasing commercial banks in Nepal, it has always stood on top
than its competitors.
  Clear picture of differential advantage of the product is not instilled in the mind
of the Customers.
 Awareness level about the company is found maximum.

Conclusion
 In this highly competitive era, company has to come up with some services and
better approach to cater.
 Company must provide enough interest to customer on their deposit.
 People prefer commercial bank to deposit their money than other financial
institution.

 People generally are not willing to switch over to other banks, if they are getting
good interest on their deposit.

 Most of the people use cash and consecutively cheque to deposit money in the
bank.

 According to findings people think the transaction service of commercial banks

are good than others.

 People feel secured to deposit money in the commercial banks.

TABLE OF CONTENTS
CHAPTERS PAGE NO.

1. INTRODUCTION…………………………………………… 1
2. SECTOR PROFILE…………………………………………. 2
2.1 Brief History of Banking in Nepal………………………………… 2
2.2 Banks and Financial institutions in Nepal……………………….. 3
3. COMPANY AND PRODUCT PROFILE………………….. 6
3.1 Introduction of Global Bank Limited…………………………….. 6
3.2 Capital Structure…………………………………………………… 6
3.3 Vision and Mission…………………………………………………. 7
3.4 Core Values…………………………………………………………. 7
3.5 Board of Directors………………………………………………….. 8
3.6 Management Team…………………………………………………. 8
3.7 Capital Structure of the Bank……………………………………… 9
3.8 Objective of the Bank………………………………………………. 9
3.9 Values………………………………………………………………... 10
3.10 Bank Products and Services………………………………………. 13
3.11 Contribution of Global Bank Limited to the Economy………….. 15
3.12 Competitor Analysis……………………………………………….. 18
3.13 The Structure of interest rate offered by the commercial
banks in Nepal…………………………………………………….. 21
4. LITERATURE REVIEW……………………………………. 23
4.1 Deposit………………………………………………………………. 23
4.2 Types of Deposit offered by Banks………………………………… 25
4.3 Interest Rates Offered on Different Types of Accounts………….. 26

5. OBJECTIVES AND SCOPE OF THE PROJECT………… 28

5.1 Objectives…………………………………………………. 28
 5.2 Scope of the Project………………………………………. 29
6. RESEARCH METHODOLOGY……………………………. 32
6.1 Primary data source………………………………………………… 32
6.2 Secondary data source……………………………………………… 32
6.3 Limitations………………………………………………………….. 32
7. DATA ANALYSIS AND INTERPRETATION……………. 33
8. OBSERVATIONS AND FINDINGS………………………... 42
8.1 Roles and Jobs performed during the Internship ……………….. 42
8.1.1 Roles Performed………………………………………….. 42
8.2 Jobs performed in Internship……………………………………… 43
8.2.1 Responsibilities at Credit Administration Department.. 43
8.3 Contribution towards the Organization………………………….. 44
9. CONCLUSIONS……………………………………………… 45
9.1 Prior Expectation…………………………………………………… 45
9.2 Post Expectation……………………………………………………. 45
10.SUGGESTIONS AND RECOMMENDATIONS…………… 48
 REFERENCES…………………………………………. 49
 ANNEXURE……………………………………………. 50
 GLOSSARY OF TECHNICAL WORDS…………….. 58

LIST OF FIGURES PAGE NO

Fig 3.1 Capital Structure of Bank……………………………………………… 9
Fig 3.2 Hierarchy of Board of Directors………………………………………. 11
Fig 3.3 Organization Structure of GBL……………………………………….. 12
Fig 5.1 Client base developed during deposit marketing……………………… 31
Fig 7.1 Gender Response………………………………… …………………… 33
Fig 7.2 Account with GBL…………………………………………………….. 34
Fig 7.3 Types of Account……………………………………………………… 34
Fig 7.4 Priorities for Service…………………………………………………… 35
Fig 7.5 Fascinating Service for Deposit……………………………………….. 35
Fig 7.6 Company ratings with competitors…………………………………….. 36
Fig 7.7 Company Rating (1-5)………………………………………………… 36
Fig 7.8 Use E-Banking………………………………………………………… 37
Fig 7.9 Promotion Media……………………………………………………… 37
Fig 7.10 Influencing Channel………………………………………………….. 38
Fig 7.11 Media for Deposit……………………………………………………. 38
Fig 7.12 Convincing Media for Scheme………………………………………. 39
Fig 7.13 Customer Counseling………………………………………………. 39
Fig 7.14 Security of Commercial Banks…………………………………….. 40
Fig 7.15 Transaction Service of GBL………………………………………... 40
Fig 7.16 Complaint Handling………………………………………………... 41
 LIST OF TABELS

TABELS PAGE NO.

Table 2.1 Development of Banking in Nepal………………………………… 2

Table 2.2 Numbers and type of Financial Institution in Nepal………………. 3
Table 2.3 About Commercial Banks of Nepal………………………………... 4
Table 3.1 Bank Product and Services………………………………………… 13
Table 3.2 Role of GBL to Economy………………………………………...... 17
Table 3.3 Competitor Analysis in terms of Current Position…………………. 19
Table 3.4 Competitor Analysis in terms of Product and Services Offered……….. 20
Table 3.5 Interest Rate Structure of Commercial Bank……………………………… 22