SUMMER PROJECT REPORT ON

CREDIT FACILITIES OF NIC ASIA BANK LTD.

MAHENDRANAGAR BRANCH

Submitted in partial fulfillment for the award of

Bachelor of Business Administration
By
Tikendra Bhandari
2016-2-03-0046
Batch 2017-20
Under the supervision of
Mr. Dipendra Joshi
Mr. Dipendra Ayer
Brixton college
Pokhara University
 DECLARATION
I hereby declare that the project work report entitled “Credit facilities of NIC ASIA
BANK LTD MAHENDRANAGAR BRANCH” submitted for the BBA is my original work
and the project work report has formed the basis for the award of my degree,
diploma or other similar titles. The information has been collected from genuine
and authentic sources. The work has been submitted in partial fulfillment of the
requirements of school of business pokhara university.

Tikendra Bhandari
School of business
Pokharauniversity
Date: 2076/05/22

Supervisor
Mr. Dipendra Joshi
Mr. Dipendra ayer
Faculty member
Brixton college
 CERTIFICATE
This is to certify that the project work titled “Credit facilities of NIC ASIA BANK
LTD MAHENDRANAGAR BRANCH” sumitted by Tikendra Bhandari of Brixton
college having roll no. 36 for the partial fulfillment of the requirements of BBA
embodies the bonafide work done by him/her under my supervision.
 ACKNOWLEDGEMENTS
An project report entitle “AN SUMMER PROJECT REPORT ON CREDIT FACILITIES
OF NIC ASIA BANK LTD MAHENDRANAGAR BRANCH” has been prepared to fulfill
the partial requirements of the project report of BBA 6th semester. Foremost, I
would like to express my deep gratitude to NIC asia bank for providing the
exciting opportunity to be one of them and giving me through guidance and
opportunity to move ahead with project work objectives. I would like to extend
my gratitude to Mr. Surya Prakash Pathak, Branch manager for providing
guidance and motivation to me. I am also grateful to all the staffs for their
valuable cooperation, guidance, direction and continuous support throughout the
project work. I would like to thank Mr. Dipendrajoshi sir and the entire faculty
members for supervising me and providing necessary guidelines to complete the
report. I would like to extend my heartfelt thanks to all who assisted with their
valuable suggestions and ideas while preparing the report.

Thank you!!

…Tikendra Bhandari………….
BBA ( 6thsem)
Brixton college
 ABSTRACT
As per the curricular of school of business studies at pokhara university, I was
assigned to undergo an project work in an organization during the sixth semester
of the program BBA after a proper study in the required field. To conduct this
study, I choose NIC asia bank limited mahendranagar branch. During the period of
this study, I tried to discover as much as possible about credit facilities provided
by bank to its customers on loan department of particular branch. The purpose of
this project work was to relate the theoretical knowledge acquired in our
academic period in a real life situation and gain the practical knowledge as well as
experience. The project also had an intention to help me understand, analyze and
present the basic loan practices in Nepalese banks. It also helped me to gain an
insight of various players in the banking sector and helped to analyze the industry
as a whole. The general objective of the study is to access the theoretical
knowledge in practical one. But, the specific objective is to access the position of
the company in terms of its credit facilities and identify the strength, weakness,
opportunities and threats of the proposed organization.
The NIC ASIA bank is one of the leading finance company and has strong goodwill
in the market. Its main focus is to deliver world class services and visionary
management to achieve sound financial health with sustainable value addition to
all their stakeholders. It has its branches in many areas inside and ouside the
valley and have further planning to expand it.
In my project I have introduced the NIC ASIA bank limited and dedicated first
phase for its general background and applied the methodology to conduct this
study. The second phase of the project is done on analysis of financial industry in
Nepal. The third phase of the project done on the study of the organization and
their different departments. In the fourth phase, presentation and analysis of
data through the SWOT analysis is portrayed and findings are also included.
Finally, in the fifth phase I have done conclusion and recommendation are
included.
TABLE OF CONTENT
1. Introduction

1.1 Background of the study

1.2 Objective of the study
1.3 Methodology
1.4 Limitations

2. Introduction of the banking industry

2.1 Concept of banking

2.2 Origin of banking system
2.3 Services offered by bank
2.4 Types of bank
2.5 Economic function of bank
2.6 List of commercial bank in Nepal

3. Introduction of NIC asia bank limited

3.1 Introduction
3.2 Product/service offered by NIC
3.3 SWOT analysis

4. Analysis of activities problem solved

4.1 Customer service department (CSD)

4.2 Problem identified and solved
4.3 Possible solutions to the problems

5. Conclusion, lesson learnt and recommendations

6. Bibliography
7. Appendix
CHAPTER 1: INTRODUCTION
1.1 Background of the study

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 analyse 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, cooperatives, micro-
finance and other financial institutions such as insurance companies,
mutual funds, provident funds, postal saving offices and Nepal stock
exchange.

BBA is a four year of graduate level program offered by the school of

business studies, pokhara university whose mission is to develop socially
responsive, creative and result-oriented management professional in the
rapidly growing business sector in Nepal and abroad. To do so, pokhara
university provides both theoretical as well as practical knowledge to its
students. Under its practical knowledge provision we the students of BBA
are required to complete an project report on the topic of interest in any
organization. To fulfill this very purpose, I visited NIC asia bank,
mahendrangar branch for data collection both primary and secondary
which benefitted the both the researcher and organization.

This report is prepared on the basis of careful study and intense

examination of credit facilities provided by bank. 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
FINACLE, which is developed by INFOSYS TECHNOLOGY LIMITED india. Thus,
the project work 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 get to utilized my conceptual knowledge and
enhance my managerial skills.

1.2 Objectives of the study

The primary objective of this project work 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. The other specific objectives of the study are:

 To study the banking procedure carried out in branch.

 To examine different product and services offered by NIC ASIA bank.
 To identify the various activities done under the customer service
department.
 To gain knowledge and skills necessary to be an effective manager as
well as leader in an organization.

1.3 Methodology

Research 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.
1.3.1 Organization selection

Selection of organization for project report is always a crucial task. Being

a student who has taken finance as a core specialization course in the
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 NIC ASIA bank for doing my project work.
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 given the authority for conducting project work in
Mahendranagar branch of NIC ASIA bank limited.

1.3.2 Data collection

For the preparation of my project report, I collected data from 2 major sources
which are as follows:
a) Primary source
 Personal interview
 Observation
b) Secondary source
 Annual reports
 Brochures of the bank
 Bank’s official website www.nicasiabank.com
 Nepal rastra bank official website www.nrb.org.np and periodicals
 1.4 Limitations

The chief limitations that I faced during the project work 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 project work period
.i.e. two month is almost impossible.
 Limited access to and the use of the banking software, so as I was
an outsider which prevented me from learning more about the
actual transactions and entries in the system.
 Limited knowledge on my part which created hindrances to
understand the jargons and technical procedures of the banking
world.
 This report only visualizes the activities of CSD of the
mahendranagar branch and not of the entire organization as a
whole.
 The study is not applicable to other organization of similar nature
and
 Finally, the data collected may not be so accurate as information
was collected from the limited personnel and the customer of NIC
ASIA bank of Mahendranagar branch.
 CHAPTER 2: INTRODUCTION OF BANKING SYSTEM

2.1 Concept of banking

A bank is a company that provides financial services of various sorts to

various types of customers. Its major function is to gather money from
various people and to lend that money out to other people. One of the
most visible things that a bank does is to take deposits from customers and
act as a place for them to store their money. The customers put money in
the bank and then can draw that in case of necessity.

A bank is financial institution, which deals with money and credit.It is an

institution that provides a great variety of financial services. It accepts
deposits from the public and mobilizes the fund to productive sectors. It
also provides remittance facility to transfer money from one place to
another. Generally, bank accepts deposits from business institutions and
individuals, which is mobilized into productive sectors mainly business and
consumer lending. So, it is also called a dealer of money.

Banks are regulated by the laws and central banks of their home countries;
normally they must receive a charter to engage in business. Banks are
usually organized as corporations. At present context, a bank may engaged
in different types of functions such as remittance, exchange currency, joint
venture, underwriting, bank guarantee, discounting bills etc. Banks are the
principal source of credit for millions of individuals and families and for
many units of government. They are among the most important financial
institutions in the economy.

2.2 Origin of banking system

In the context of Nepal, it is very difficult to trace the correct chronological

history of the banking systems in Nepal because there are no sufficient
historical records and data about banking in Nepal. The history of banking
in Nepal can be described as a component of the gradual and organized
development in the financial and economic sphere of Nepalese life. Even
now, the country’s financial system is still at an early stage. The existence of
an unorganized market consisting of owners or wealthy merchants, shop
owners and other local lenders acted as a barrier to institutionalized credit.
These institutions, although underdeveloped, could still mobilize capital.
For many years, local farmers, owners, traders carried out some banking
functions.

The population depended to a large extent on agriculture, because there

was no organized financial institution to support agriculture and other
needs. People resorted to the help of unscrupulous lenders who set high
percentages. There was a pledge of land, houses and precious metals.
People kept their savings in precious metals, gold or silver. In 1877, during
the period of the rule of king ranodip(Ranodipp), many economic and
financial reforms were carried out. One of the first banking institutions “
Tejarat Adz” was organized by the government in the valley of Kathmandu.
In 1880, during the activities of Prime minister Chandra shamsher, the
banking institution TejaratAdtsa expanded its powers. And some financial
departments were established in other cities in Nepal, including the terai
region. For several decades, after the establishment of tejarat adz, no
measures were taken to expand its functions.

The first bank of Nepal in its history was established in 1994 BS. Kartik 30
and named as Nepal Bank Limited. It was established before the
establishment of Nepal rastra bank, the central bank of Nepal. The bank has
developed the culture of saving Nepalese rupees by displacing the trend of
using indian rupees in Nepal. As well as the culture of saving people’s
money and institutionalizing facilities. The role of the bank has been
praised as the first bank in the country to promote and develop
industrialization, trade expansion, the arrangement of import-export and
development of nepakese economy. Nepal bank limited is a commercial
bank which obtained ‘A’ class from Nepal rastra bank. Nepal bank limited
 has been established in joint logistics of Nepal government and private
entrepreneurs.

On june 1, 1945, the first Nepalese paper banknotes were issued- tickets of
the Nepalese government. Since September 1945, their release continued
the central treasury. In 1955, the stste bank act was adopted. On april
26,1956, the Nepal rastra bank began operations and in 1960- the issue of
banknotes. A new law of 2002 confirmed its role as a central bank. On
march 22, 2010, yuba raj khatiwada became president of the bank. The
main tasks of the central bank are to maintain price stability in support of
economic development, provide liquidity to the banking sector. It has
offices in seven cities: biratnagar, janakpur, birgunj, pokhara,
siddharthanagar, nepalgunj and dhangadi. This central bank oversees
commercial banks in Nepal and guides monetary policy. Rastra bank Nepal
also oversees foreign exchange rates and foreign exchange reserves. This
bank is one of the owners of the Nepal stock exchange.

2.3 Services offered by bank

In the modern world, banks offer a variety of services to attract customers.

However, some basic modern services offered by the banks are discussed
below:
1. Advancing of loans: Banks are profit-oriented business organizations. So,
they have to advance a loan to the public and generate interest from
them as profit. After keeping certain cash reserves, banks provide short
term, medium term and long term loans to needy borrowers.
2. Overdraft: sometimes, the bank provides overdraft facilities to its
customers through which they are allowed to withdraw more than their
deposits. Interest is charged from the customers in the overdrawn
amount.
3. Discounting of bills of exchange: this is another popular type of lending
by modern banks. Through this method, a holder of a bill of exchange
can get it discounted by the bank, in a bill of exchange, the debtor
accepts the bill drawn upon him by the creditor ( .i.e. holder of the bill)
 and agrees to pay the amount mentioned on maturity. After making
some marginal deductions (in the form of commission), the bank pays
the value of the bill to the holder. When the bill of exchange matures,
the bank gets its payment from the party, which had accepted the bill.
4. Check/cheque payment: banks provide cheque pads to the account
holders. Account holders can draw cheque upon the bank to pay money.
Banks pay for cheques of customers after formal verifications and
official procedures.
5. Collection and payment of credit instruments: in modern business,
different types of credit intruments such as the bill of exchange,
promissory notes, cheques etc. are used. Banks deal with such
instruments. Modern banks collect and pay different types of credit
instruments as the representative of the customers.
6. Consultancy: modern commercial banks are large organizations. They
can expand their function to a consultancy business. In this function,
banks hire financial, legal and market experts who provide advice to
customers regarding investment, industry, trade, income tax etc.
7. Bank guarantee: customers are provided the facility of bank guarantee
by modern commercial banks. When customers have to deposit certain
find in governmental offices or courts for a specific purpose, a bank can
present itself as the guarantee for the customer, instead of depositing
fund by customers.
8. Remittance of funds: banks help their customers in transferring funds
from one place to another through cheques, drafts, etc.
9. Credit cards: A credit card is card that allow their holders to make
purchases of goods and services in exchange for the credit card’s card
providers immediately paying for the goods or service, and the
cardholder promising to pay back the amount of the purchase to the
card provider over a period of time and with interest.
10.Foreign currency exchange: banks deal with foreign currencies. As the
requirements of customers, banks exchange foreign currencies with
local currencies, which is essential to settle down the dues in the
international trade.
2.4 Types of bank

According to function and nature of bank, in nepal banks are classified in

following types:
1. Central bank: The Nepal rastra bank (NRB) was established in Baishakh
14, 2013 B.S.(April 26, 1956 AD) as a central bank of Nepal to supervises
the banks and financial institutions (licensed by the NRB) in Nepal and
guides monetary policy. Nepal rastra bank was established in 1956
under the Nepal rastra bank act, 1955, to discharge the central banking
responsibilities including guiding the development of the embryonic
domestic financial sector. Since inception, there has been a significant
growth in both the number and activities of the domestic financial
institutions.
2. Commercial banks( Class A): A commercial bank is a type of bank /
financial institution that provides services such as accepting deposits,
making business loans and offering basic investment products,
commercial bank can also refer to a bank, or a division of a large bank,
which more specifically deals with deposit and loan services provided to
corporations or large/middle sized business as opposed to individual
members of the public/small business- retail banking or merchant
banks. At present there are 33 commercial banks in Nepal.
3. Development bank( Class B): The bank which is established for the
development of different sectors like industrial, agricultural,
infrastructural etc by imitating the modern system and methodology
through financial, technical and administrative assistance is known as
development bank. Development banks in Nepal are playing vital roles
for the development of economy status of Nepal. Nepal has nationalized
and private banking. There are 70 development banks in Nepal.
4. Finance companies( Class C): The history of financial institutions is not
very old. When banking sector started carrying out current activities of
financer companies was established and they expanded at a rapid pace
in the developed countries, UK, and USA in 1960. In the context of
Nepal, there were few insurance companies and karmachari sanchaya
kosh working as non- banking financial institution before enactment of
 finance company act 2042. Need of finance company act was felt
because unauthorized sector was collecting savings from the commom
public in the name of upahar and dhukutiprogrammes. Considering
peoples’s interest in such programmes, benefit of mobilizing such
savings in productive sector, banking sectors inability to carry out capital
market activities and to meet consumers need for credit, government
felt the need of finance companies and introduced finance company act,
2042. However, no finance company set up till 2049 because the act
came into being only in 2049 with some amendments. At present there
are 44 finance companies in Nepal.
5. Micro credit development bank(Class D): Nepal is a land locked
developing country. Many people (38%) of Nepal are under poverty
region. Most of the poor people lives in rural areas and have little
opportunity. Micro finance (Micro credit development bank) could help
poor people who do not have any collateral, but a willingness to work
and a desire to do some business activities from which he/she will
acquire employment as well as income. At present there are 41 micro
credit development banks in Nepal.

2.5 Economic function of banks

The following points highlight the top four functions of banks. The functions
are as follows:

1. Collection of the savings of the community: Nowadays people do not

keep their savings at home. They deposit them in banks. Thereby, the
risk of loss ( from theft, etc) is avoided. Moreover, some interest is
earned. There are different kinds of deposits. Some are current deposits.
The interest paid on such deposits is either very small or nil. Some
deposits are withdrawals after a fixed period (one year, two year,etc) or
are subject to certain fraction of the sums deposited etc). such deposits
are called time deposits. There are different names for the different
varieties of time deposits. E.g. fixed deposits, savings deposits, etc. Time
deposits earn higher rates of interest.
 2. Loans and investments: Banks lend money traders, industrialists and
other persons. Lending is done through a variety of methods.
Sometimes an account is opened in the name of the borrower and he is
allowed to draw cheques on it. A man having an account may be given
the right to draw more money than what he has in the account. This is
known as overdraft facility. A bank may also lend money by discounting
a bill of exchange or a hundi. Banks invest money on shares and
debentures of companies and on government promissory notes. They
lend money to industrial concerns against the security of government
promissory notes, shares, debentures, gold, goods in course of
manufacture etc. Loans are also given to private individuals against GP
notes, shares, debentures, life insurance policies and gold.
3. Creation of money: Formerly, banks could print and issue notes payable
by them on demand. The notes were used as a medium of exchange.
Nowadays only the central bank of the country can issue notes. Banks,
however can give loans in excess of the money deposited with them.
Cheques can be drawn against such loans and the cheques can be used
as media of exchange. Thus, banks can create money.
4. Other functions: Commercial banks perform various other functions. For
example, they keep valuables in safe custody: shares, debentures, GP
notes etc and for the payment of insurance premium, bills etc. they also
act as executors and trustees of wills; and exchange currencies of
different countries for one another.

2.6 List of commercial banks in Nepal

1. Nepal bank limited

2. Agriculture development bank limited
3. Nabil bank limited
4. Nepal investment bank limited
5. Standard chartered bank Nepal limited
6. Himalayan bank limited
7. Nepal SBI bank limited
8. Nepal Bangladesh bank limited
9. Everest bank limited
10.Kumari bank limited
11.Laxmi bank limited
12.Citizens bank international limited
13.Prime commercial bank limited
14.Sunrise bank limited
15.Century commercial bank limited
16.Sanima bank limited
17.Machhapuchhre bank limited
18.NIC asia bank limited
19.Global IME bank limited(in merger process with janata bank Nepal
limited)
20.NMB bank limited
21.Prabhu bank limited
22.Siddhartha bank limited
23.Bank of Kathmandu limited
24.Civil bank limited
25.Nepal credit and commerce bank limited
26.Janata bank Nepal limited(in merger process with global IME bank
limited)
27.Rastriyabanijya bank
28.Megha bank Nepal limited
CHAPTER 3: INTRODUCTION OF NIC ASIA BANK
3.1 Introduction to NIC ASIA bank

NIC ASIA Bank has its antecedents in NIC bank which was established on
21stjuly 1998. The bank was rechristened as NIC asia bank after the merger
of NIC bank with bank of asia Nepal on 30thjune 2013. This was a historic
merger in the annals of Nepalese financial landscape as the first of its kind
merger between two successful commercial banks in the country. Today,
NIC asia has established itself as one of the most successful commercial
banks in Nepal.
During the post merger integration phase, NIC asia managed the transition
very smoothly receiving accolades from the regulators as well as the
stakeholders, paving the way for other mergers and consolidation in the
Nepalese financial sector. After the merger, NIC asia was recognized as
“bank of the year 2013 nepal” by the banker, financial times, uk. This is the
second time that the bank was recognized with this precious award, the
previous occasion being in 2007.
NIC asia bank is now, one if the largest private sector commercial banks in
the country in terms of capital base, balace sheet size, number of branches,
ATM network and customer base. The bank has 293 branches, 55 extension
counters, 41 branch less banking and 319 ATMs across Nepal with a
network covering all major financial centers of the country. The bank
strongly believes in meritocracy, transparency, professionalism, team spirit
and service excellence. These core values are internalized by all functions
within the bank and are reflected in all actions the bank takes during the
course of its business. The vision of this bank is to ensure creation of
optimum values for all the stakeholders. Its mission is to be a bank of 1st
choice for all the stakeholders.
The directors of the bank are eminent personalities with vast experience in
business and the financial sector. The board of directors is fully committed
to a high standard of corporate governance, which among others
encompasses the principles of full disclosure and transparency, social
responsibility and accountability, “zero tolerance” compliance culture,
 business and customer confidentiality, intolerance of conflict of interests
and an independent management. The board comprises of the following
directors:

Mr. Tulsi ram Agrawal Chairman

Mr. Ram chandrasanghai Director
Mr. Rajendraaryal Director
Mr. Binodkumarpyakurel Director
Mr. Ganesh man Shrestha Director
Mr. Trilokchandagrawal Director
The bank is run by professionals having sound experience and exposure in
commercial banking in Nepal as well as in international markets. The
“Management Committee” of the Bank comprises of the following senior staff
members:
S.N. Name of MANCOM Members Functional Title
1 Mr. Roshan K. Neupane Chief Executive Officer
2 Mr. SudhirNath Pandey Deputy Chief Executive Officer
3 Mr. Santosh Kumar Rathi ACEO- Marketing Eco System
4 Mr. Rajesh Rawal ACEO-Strategy Enforcement Ecosystem
5 Mr. KapilDhakal ACEO- Performance Assurance and Support
Service Ecosystem
6 Mr. JayendraRawal ACEO-Strategy Enforcement Ecosystem
7 Mr. Chief Risk Officer
DipendraBahadurRajbhandari
8 Mr. Arjun Raj Khaniya Chief Business Officer
9 Mr. BishalSigdel Chief Experience Transformation Officer
10 Mr. Dinesh Bhari Head Legal
11 Mr. Prakash Baral Chief Credit Officer
12 Mr. Raju Prasad Adhikari Head Internal Audit
13 Mr. Deepen Karki Company Secretary

The bank’s corporate governance policy is directed not only towards the
regulatory and legal requirements, but also towards adherence to best
business practices, transparency and disclosure to the stakeholders. The
bank has established a culture of best practices in corporate governance.
The bank’s corporate governance framework is based on effective
independent board that is not involved in day to day management, and the
constitutions of different board committees with independent directors to
oversee critical issues.
The bank has adopted three core principles of corporate governance i.e.
integrity, transparency and fairness. Good corporate governance has been
an integral part of the bank’s policy in order to safeguard the interest of its
shareholders and stakeholders, and for providing the highest level of
service to its customers.
During the review period, the bank has formulated and implemented
“Corporate governance policy 2015” which shall further strengthen the
bank’s corporate governance practices and values across all levels and
activities of the bank. The main objectives of the policy are as follows:
 To lay down a framework for achieving the vision, mission and
objectives of the bank in an effective and efficient manner.
 To lay down a foundation for sound organizational development,
planning succession, control and performance.
 To lay down a comprehensive framework that instills, monitors,
reviews and reacts to pertinent corporate governance issues so as to
protect the legitimate interest of all the stakeholders.
 To ensure that all activities of the bank are carried out in due
compliance with applicable acts, regulations and directives and
 To lay down a broad framework for formulation of other policies,
manuals and guidelines of the bank.
In line with Nepal rastra bank’s direction, a separate corporate
governance unit comprising of following members has been formed:

ACEO Coordinator
ACEO Member
Head legal Member
Chief financial officer Member
Manager- branding and CSR Member
Head-internal audit Member secretary
As a responsible corporate citizen of the country, the bank has been
involved in contributing to the society in various as a part of its
corporate social responsibility (CSR). In order to promote and focus
on CSR activities the bank has established a charitable foundation
called NIC asia foundation. The bank has committed to pledge 1% of
its net profit every year to the NIC asia foundation for promoting
various CSR related activities.
In the past, the NIC asia foundation has carried out various activities
including but not limited to distributing disaster relief packages to
the victims of various disasters, contributing to the prime minister
relief fund, organizing health camps, organizing blood donation
camps, providing support to old ages homes and orphanages,
providing scholarships to the needy students etc. A significant
number of people have been benefitted, directly or indirectly by the
activities carried out by the foundation. The foundation plans to
continue the same in the future as well.

3.1.1 Joint venture

Bank of asia is a joint venture partner of NIC ASIA bank holding 20%
equity in the bank and is one of the largest nationalized bank in asia.
With its presence virtually in all the important centres at asia. ASIAN
development bank offers a wide variety of banking services which
include corporate and personal banking, industrial finance,
agricultural finance, financing of trade and international banking.
Among the clients of the bank are Indian conglomerates, medium
and small industrial units, exporters, non-resident Indians and
multinational companies. The large presence and vast resource base
have helped the bank to build strong links with trade and industry.
3.1.2 Equity structure

The equity structure of NIC ASIA bank as on fiscal year (2075/76)

comprises of:

Table 3.1 Equity structure of NIC ASIA

Authorized capital Rs 8,840,000,000
Issued capital Rs 8,834,228,698
Paid up capital Rs 8,834,228,698

The share ownership pattern of NIC ASIA is shown in the following

table:

Group Categories % of Holding(in Rs)

holding
A General 94% 8,301,936,898
public
B Other 6% 532,291,800
enterprises
Total 100% 8,834,228,698
Figure 3.1 Share ownership pattern of NIC ASIA

General public Other enterprises

6%

94%

The above figure shows that general public holds 94% stake in the
bank’s equity while 6% of the equity is contributed by other
enterprises.

3.1.4 Organization chart

An organization structure consists of activities such as task allocation,

coordination and supervision which are directed towards the
achievements of organizational aims.
 Figure 3.2 Organization chart of NIC ASIA BANK

Board of Director
(Chairman)

(Chairman)
Executive
Director

DGM DGM AGM Company AGM

(Marketing) (Credit) (Planning and development) Secretary (Operation)

Legal Retail Corporate

Finance/Tax/Inspection, Reconciliation
A/C,NRB/Budget

MKT HRD Treasury Security Guard IT

FOREX Domestic
NIC ASIA has different department in order to facilitate different types of facilities
to the various customers.
a. Human resource department:
This department performs the function as recruitment, selection,
promotions, transfer, performance appraisal, training and development of
employees etc.
b. Account/budget department:
This department is responsible for maintaining and preparing whole budget
and account of the bank. It has all the records of banks operational as well
as administrative expenses.
c. Trade finance department:
This department facilitates trade activities both internal and external. In
this department bank acts as an intermediary between supplier and client.
This department issues LC and guarantee.
d. Cash department:
This department deals with inflow and outflow of the money. NIC ASIA
collects deposits and facilitates withdrawal via different counters.
e. Legal department:
This department looks after the legal aspects of the bank. Policies of the
bank are formulated only after the legal aspects provided under NRB. This
department makes sure of all activities and steps followed in serving a
customer are totally legal.
f. IT department:
This department is responsible for development and maintenance of
network system and information storing.
g. ATM shell:
The function of this department is to make cards .i.e. debit and credit cards
and provide customer pin codes for their cards and others.
h. Treasury department:
This department handles foreign currency, treasury, transfer and clearing
etc.
i. Remittance department:
The function of this department is to facilitate remittance (both internal
and external).
j. Corporate credit department:
This department defines the needed documents for particular loan and the
documentation portion of that is done here.

3.1.4 NIC ASIA network

NIC ASIA bank with a slogan of “NIC ASIA, bank pani sathi pani, ramro pani
hamro pani” provides customer friendly services through its branch
network and all it’s the branches are connected through anywhere branch
banking system(ABBS), which enables customers for operational
transactions from any branches. The bank has 50 branches, 67 ATM
counters and 20 revenue collection counters across the country making it a
very efficient and accessible bank for its customers, anytime, anywhere.
SWIFT are other modes of communication for efficient and effective
transmission of information where NICNPKA is the swift code of NIC ASIA.
Being a joint venture partner of NIC ASIA, the account holders of NIC ASIA
can also transact through more than 5600 branches and 6000 ATMs of
other banks. NIC debit card can also be used at more than 100 point of sale
(POS) terminals for purchase of merchandise. There is more than 170
remittance payout location in Nepal. It has its own remittance product “NIC
remit” to enables remit income from the gulf countries.

3.1.5 Corporate vision

 To position it as a progressive and customer friendly bank providing

financial and other related services.
 To cater to various segments of society using advanced technology.
 To be committed to excellence in corporate values.
 3.1.6 Corporate mission
 To provide excellent professional services and improve its position as a
leader in the field of financial related services.
 To build and maintain a term of motivated and committed workforce with
high work ethics.
 To use the latest technology aimed at customer satisfaction and act as an
effective catalyst for socio-economic developments.

3.1.7 Awards
 The bank has been conferred with “bank of the year 2013, Nepal” by
the banker, a publication of financial times, London.
 The bank was bestowed with the “NICCI ecellance award” by Nepal
india chamber of commerce for its spectacular performance under
finance sector.

3.1.8 Pioneering achievements

 Recognizing the value of offerings a complete range of
services, we have pioneered in extending various customer
friendly products such as home loan, education loan, NIC flexi
loan, NIC property plus (future lease rental), home equity loan,
vehicle loan, loan against share, loan against life insurance
policy and loan for professionals.
 NIC ASIA bank was one of the first bank to introduce any
branch banking system(ABBS) in Nepal.
 NIC ASIA bank has introduced mobile vehicle banking system
to serve the segment deprived of proper banking facilities
through its birtamod branch which is the first of its kind.
 NIC ASIA has introduced branchless banking system first time
in Nepal to cover unbanked sector of Nepalese society.
 NIC ASIA is first bank that has launched e-ticketing system in
Nepal. NIC ASIA customer can buy yeti airlines ticket through
internet.
3.1.9 Objectives of the NIC ASIA Bank
 To facilitate the reliable, prompt and high standard of banking service for
adopting the latest version of banking technology in compliance with the
need and demand of the market.
 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 developments 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.

3.1.10 Credit facilities of NIC ASIA bank limited

1. Residential home loan: It is an attractive financing scheme bundled with special

features to purchase/construct your dream house and live with family happily
ever after. You can explore residential home loan for following purpose:
 Purchase of house
 Construction of house
 Repair/ Renovation and re-construction of house
 Refinancing/SWAP of existing home loan
Feature:
 Competitive interest rate
 Credit facility as term loan upto 15 million
 Flexible loan tenure upto 50 years
 Easy documentation
 Hassle free loan processing
2. Auto loan: NIC asia auto loan is an exclusive financing option to “move in style”
by owing a vehicle of your own choice. With an aim to enhance and upgrade your
automobile experience, there are varieties of auto loan scheme available with
simple loan processing and minimum turnaround time.
Feature:
1. Competitive interest rate
2. Attractive financing limit
*Upto 50% of VAT Bill for individuals
*Upto 80% of VAT bill for firm/companies
3. Flexible loan tenure, upto 15 years
4. Easy documentation
5. Hassle free loan processing
6. Loan facility for purchasing various type of vehicles-
1. Private/red plated vehicle
2. Semi-commercial vehicle
3. Green plated vehicle
4. Commercial/black plated vehicle
3. Loan against mortgage property: It is an attractive financing scheme bundled
with special features to finance your personal requirements.
Feature:
 Competitive interest rate
 Credit facility as term loan and/or overdraft/demand loan
 Flexible loan tenure upto 50 years
 Easy documentation
 Hassle free loan processing

4.Loan against shares: With NIC asia bank’s loan against shares, you can get an
overdraft/demand loan facility against the securities of shares. This is an instant
solution if required cash within a short period of time with simple documentation
and processing.
Feature:
 Loan against pledge of shares of acceptable traded companies
 Attractive interest rate
 Fastest loan processing
 Hassel free and easy documentation
5.NICasia personal loan(NAPL): NIC asia personal loan is a non-collateral based
loan scheme especially designed to facilitate Nepalese salaried individuals and
professionals to meet their individual financial requirements; offers lower
monthly obligation and hassle-free services along with fastest service delivery to
our valued customers.
Feature:
 Credit facility as term and overdraft/demand loan in monthly payment
 Minimum loan amount of NPR 0.3 million to maximum upto NPR 1.5 million
 Loan tenure upto 5 years, subject to the annual review
 Competitive interest rate
 Easy documentation
 Hassle free loan processing
5.NIC asia education loan: NIC asia education loan is a collateral based loan
specially designed to facilitate Nepalese students to meet their financial
requirements to pursue higher education above +2 level in Nepal or abroad.
Feature:
 Loan amount of minimum NPR 0.3 million to maximum NPR 10 million
 Term loan facility with a tenor of upto 15 years excluding moratorium
period
 Upto 100% financing of total cost considered subject to valuation of
collateral.
 Accept collateral type
*Land and/or building
*Fixed deposit
 Flexible repayment option
  Hassle free processing
 Competitive interest rate
6.Foreign employment loan: Now don’t worry about the expenses to go abroad
for employment. NIC asia bank introduces foreign employment loan, a new type
of collateral based loan targeted to people who are going to foreign country for
employment purpose.
Feature:
 Competitive interest rate
 Credit facility as term loan and overdraft/demand loan
 Loan tenure upto 5 years, subject to the annual review
 Easy documentation
 Hassle free loan processing
7.Gold loan: NIC asia bank introduces NIC asia gold loan, one of the easiest and
fastest loan schemes of the banking industry. NIC asia gold loan offers hassle free
credit facility with flexible repayment options to our valued customers. Major
features of NIC asia gold loan are:
Loan limit: Minimum NPR 30000/- and maximum NPR 50 million
Financing up to:
 70% against pledge of gold ornaments
 80% against pledge of fine gold bar and gold coins
Free insurance coverage of pledged gold
Facility type: Demand loan and overdraft
Interest rate: As published by the bank payable on quarterly basis(as per nepali
calendar)
Period: Maximum 1 (one) year (if required- to be renewed every year from the
date of maturity)
Partial payment: Allowed
Eligibility:
  Nepali citizens: 18 years and above
 Duly registered companies
Available at following branches:
Inside valley Outside valley
1 New road khichapokhari branch 1 Banepa branch
2 Kaushaltar branch 2 Dharan main branch
3 Bouddha branch 3 Janakpur branch
4 Balaju branch 4 Pokhara branch
5 Jwalakhel branch 5 Butwal branch
6 New baneshwor branch 6 Dhangadhi hospital line
7 Corporate office branch, 7 Birtamode branch
Thapathali
8 Mahendranagar branch
9 Biratchowk branch
10 Gaighat branch
11 Bhairahawa branch
12 Biratnagar branch
13 Nepalgunj branch
14 Birgunj branch
15 Urlabari branch
3.2 Products/services offered by NIC ASIA

NIC ASIA has never backed in providing the best products and services to meet
the requirements of its customers be that the existing ones or potential
customers. NIC ASIA is indeed successful to provide these entire products through
the analysis of the customer feedback form. Customer’s satisfaction is the
paramount driver at NIC ASIA.
The different product and service offered by NIC ASIA are as follows:
 Saving account: Saving account offers all facililities required for normal
transactions like deposit, payments with additional facility of debit cards,
ABBS. Under the saving account, the various schemes offered by bank
includes saving premium, sunaulo bhawisya yojana, unfixed fixed deposit,
fixed deposit, freedom account, naari bachat khata, normal saving account,
student account, bal bachat khata, saughat bachat khata, USD account, call
deposit and current deposit.
 Retail lending: Under retail lending, the various loans offered by NIC ASIA
are housing loan, vehicle loan, education loan, professional loan, loan
against mortgage, loan against future lease and rental and loan against
shares.
 Working capital finance: The bank services the working capital capital
requirements of business by accessing the current asset and liabilities.
 Project finance: Depending on the projects rate of return, repayment
ability, cash flow and generation of cash surplus various projects are
financed.
 Trade finance: Through an extensive global network that facilitate domestic
and international transaction, NIC ASIA is able to meet customers need of
import, export, payments through offering facilities like LCs, SWIFT
transfers, guarantees etc.
 Consortium finance: NIC ASIA has been arranging for financial closure of
various large projects through lending consortium finance. The bank has
offered such services to various business segments like hydropower,
manufacturing industry and hospital.
 Priority and deprived sector lending: The bank has been extending loan
facilities to priority and deprived sector in the form of direct as well as
indirect lending.
 Remittance: In order to facilitate remittances of Nepalese residing in UAE,
Bahrain, Kuwait, Qatar, Malaysia and Saudi Arabia, NIC ASIA is a step ahead.
NIC ASIA is playing a pivotal role in facilitating remittance to and from
across globe. The banks own web based online remittance product. With
world remit, the bank has same day remittance facility with other different
banks with association of bank of asia’s 2200 networked branches, based
draft drawing arrangement.

Following are the facilities provided by NIC ASIA to its customers:

A. Any branch banking services (ABBS)
The account holder can deposit and withdraw cash from any of NIC ASIA
branches without any transaction charge. They are not restricted to a
particular branch to operate their account. However, customer must
obtain cheque book and ATM card from particular branch from where
they opened their account.

B. Locker:
NIC ASIA provides a sound and secure place to keep valuables corporate
papers or bond/shares certificate or jewellery through locker service.
Any person who wants to open the locker must have an account at NIC
ASIA. Locker margin and charge depends on the size of locker.

C. Debit card:
NIC ASIA debit card is a plastic card which provides an alternative
payment method to cash when making purchases or cash withdrawal
from ATM centers. NIC ASIA debit card having maturity of eight years is
a key to ultimate convenience regarding day to day monetary
transactions providing customers the power of real cash in form of card.
Associated with smart choice technology (SCT), it facilitates wide sharing
of ATMs under SCT network from more than 650 locations throughout
Nepal. It has recently launched VISA debit card to facilitate customers.
 D. Evening counter:
For added comfort and convenience of NIC ASIA valued customer, NIC
ASIA is opened even after banking hours. Various services are provided
during evening counter. Some of them are as follows:
 Acceptance of deposits
 Withdrawal of cheque amounting NPR up to 1500 lacs per cheque
 Remittance facility-online remittance payment
 Issuance of details
 Accepting of clearing cheque mentioning late clearing
 ABBS facility etc.
Other different services are provided by NIC ASIA LIKE e-banking,
weekend banking, fund transfer, SMS banking, mobile banking, SMS
alert, pay bill banking.
3.3 SWOT analysis

1. Strength
 Joint venture partner with BANK OF ASIA.
 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

2. Weakness
 Lack of sufficient ATMs in and outside valley
 Insufficient marketing
 Availability of only SCT based debit card or limited card services.
3. Opportunities
 New investment opportunities
 Growing international trade
 Introduction of innovative products, services and programs
 Installation of updated technology

4. Threats
 Political instability
 Changing customer preferences
 Changing technology
 Intense competition
 Lack of investment opportunities in the market
CHAPTER 4: ANALYSIS OF ACTIVITIES AND PROBLEM
SOLVED
4.1 Customer service department
A company’s customer service department handles the concerns of customers.
The department answers customers questions, attempts to resolve customers
complaints and tries to sell new services to them. Most companies have a
separate customer service department; although in some cases a receptionist
may function as a customer service representative. In addition to resolving
customers complaints and answering their questions, the customers service
department also takes suggestions from customers who have new ideas that may
improve the image of a company and attract new customers. For example, a
customer may send an email suggesting that a local supermarket increase the
amount of organic products.
The customer service process must be transparent. If an organization can practice
full disclosure in an obvious way in their product information and their contracts,
they are on the way to create customer loyalty. If the customer experiences your
organization as one they were never surprised and never deceived, the
organization will create a competitive edge. Good customer service is all about
bringing customers back. And about sending them away happy-happy enough to
pass positive feedback about the business along to others, who may then try the
product or service the bank offer for themselves and in their turn become repeat
customers.

4.1.1 Function and services provided by CSD

The customer service department of NIC ASIA bank, especially
mahendranagar branch performs the following activities and
provides the following services to its customers.

4.1.1.1 Analysis of regular/daily activities

Account opening procedure
Bank accounts can be opened by both an individual and a joint a/c
as well as corporate firm (institution). Basically, a bank account is
a unique computer generated customer code that allows
customers to deposit and withdraw fund. The account opening
procedure is explained as follows:

 At first, on the visit of the customer in the bank, the

customer is asked to fill an AOF and signature card which
contains the personal details of the customers.
Note: The customer should submit a copy of his/her
citizenship certificate, two sets of passport size photos and
other required documents according to the deposit type.
 The CSD staff then verifies all the documents, details and
signature and feeds them into the FINACLE along with the
specific a/c type, introducer’s name (if any).
 The system then automatically generates the account
number, which is a 14 digit code where the first 4 digits
represent the branch code.
 Then the customer are required to deposit the minimum
balance (or more) of the concerned deposit type in their a/c
and account number is provided later on.
 CSD staff will create the customer id of account holders and
then forward to operation manager to verify.
 Once the customer id is verified, operation manager again
returned it to CSD for form scanning.
 After form scanning, the CSD staff will prepare the ATM
card and cheque on customer request.
Figure no. 4.1 Flowchart of new a/c opening procedure

Start

Fill a/c opening form

Process

Decision Reject application

End

Approve application

Create account

Accept minimum deposit

Provide a/c number

Issue cheque book

End
Account closing procedure
An account is closed only upon receiving a written request from the customer a/c
holder. At first, the a/c holder fills up the “account closing request” form and
submits it to CSD. The customer has to return ATM card and cheque which are
unused to the bank. The bank charges RS 300 for closing the account and
returned balance to the customer. After the completion of filling up the form, it is
verified and signature by operation manager and branch manager. Thus, finally
customer account is closed.
Figure 4.2: Flow chart of a/c closing procedure

Start

Fill a/c closing

Process

Decision

End
Approve application

Collect cheque book and ATM

cards

Provide remaining

Close account
Cheque issuance procedure
Cheque issuance procedure is the very sensitive task. It is the most regular activity
of CSD. Multiple cheque books are printed daily in CSD. The cheque printing and
issuance procedure are explained follows:
1. For new account holder, bank provides the cheque without any cost.
2. If customer has to print the cheque for the second time, then customer
has to fill up the requisition slip that contains the date, number of
required cheque levels, valid signatures (stamp of the company in case
of current account).
3. After that, CSD staff will issue the cheque and operation manager
verifies it and gives permission to print the cheque.
4. The next step after printing of cheque is to enter the record on cheque
registered which is signed by customer and the operation manager.
ATM card handling procedure
The ATM card at NIC ASIA bank is debit card under the smart card technology
(SCT) network. NIC ASIA bank takes the charge for issuance of ATM card
depending on the type of account. For example, RS 200 is charged for normal
saving account RS 50 is charged for nari bachat and no ATM charge for freedom
account and salary account. The issued ATM card is valid for 8 years and customer
can withdraw RS 100000 in one day using debit card.
Statement printing procedure
A statement of account that shows a detailed list of the transactions (withdrawals
and deposits/debits and credits) as well as the closing balance of the a/c as of the
one day before the statement printing. The statement of account is provided on
customer request and no any form has to be filled up for statement print. But
account holder must be present for statement print. In case if account holder is
not present, the agent must have the application of statement printing request
signed by the account holder.
Balance enquiry handling
During my project work, I learnt that NIC ASIA bank takes special caution in
disclosing the balance in any account, which I found very impressive. Customers
often come to CSD for balance enquiry but it is only entertained after establishing
the identity of the a/c holder by checking the photo or signature in the system.
Telephone balance enquires are not entertained as far as possible. Only to some
highly regular customers whom the staffs know very well are given the privilege
of balance enquiry via phone.
E-banking
E-banking is a free service that allows customers to avail online banking
transactions wherever and whenever required. To use this service the customer
has to submit a duly signed and filled up “Application for internet banking” form
to CSD. Then CSD forwards the request to operation manager desk. Then the very
next day, the bank provides the user code and password to the customer. The
customers can then full control over their accounts after collecting the user code
and password. The services available include balance enquiry, check transactions,
send and receive messages and bank statement.
SMS-banking
SMS- banking is a system where customers are facilitated to access their account
status and retrieve general information regarding their account and other banking
transaction through their mobile phone. Customers can perform the following
tasks such as balance enquiry, downloading transaction information, view online
statement, charge PIN code etc. the only work that CSD does in case of SMS
banking is to collect the “Application for SMS banking” form from the interested
a/c holder, send it to the concerned department. The NIC ASIA bank does not take
any charge for SMS banking but bank charge RS 200 annually for SMS alert.
Customer query handling
AS a CSD staff during my project work, all my time was spent in handling the
numerous queries of various walk-in customers. I gave the information that they
wanted. Many customers were interested to learn about that product, which I
happily obliged. In addition to that, I answered queries about our other products,
services, transaction hours etc. I single-handedly handled all the customer queries
via phone as well.
4.1.1.2 Analysis of irregular/occasional activities

Balance certificate printing and issuance

Balance certificate is a document issued by a bank stating the
amount of balance/funds maintained by an a/c holder in its bank;
usually a balance certificate also contains a statement from the
bank mentioning that the a/c holder has maintained satisfactory
level of transactions with the bank, but his is only mentioned in
the case of satisfactory customers. The balance amount
mentioned in the certificate can be either in NPR or in customer
preferred FCY equivalent amount as per the FCY rate on that date.
Customers often visit the bank to issue balance certificate.
Usually, students who are going abroad for studies come for it. In
order to issue the certificate the customer has to open an a/c with
the bank. First of all the customers fills up the “Request for
balance certificate” form. Then the CSD staff issues the certificate
in the requested currency upon obtaining signatures in proper
register. A charge of Rs 500 is charged as a service charge.

Fixed deposit (FD) renewal/settlement

During my project work, I observed that an important task and
somewhat complex and of CSD to open and the renewal or
settlement of it. Fixed deposit is an important a/c for a bank so FD
a/c holders are given special attention.

FD a/c opening: At everest bank an FD can be opened for a

minimum balance of Rs 10000. The interest is calculated daily but
with quarterly posting. Hence for the purpose of interest posting
the a/c holder must also open another a/c in the bank .i.e. normal
saving and interest in fixed account is transferred to normal
saving account of account holder.

FD renewal/settlement: Once an FD is opened, the CSD has to

keep a close watch over its expiry date. Upon expiry, an FD can be
settled in the ways: it can be renewed for the next tenure at the
 prevailing interest rate or the a/c holder can withdraw the
amount or move it to the other a/c where the interest had been
accumulated. Hence before a couple of days before the expiry,
the CSD staff must consult with the a/c holder and do as
instructed.

4.1.1.3 KYC update

KYC is an acronym, for “know your customer”, a term used for
customer identification process. It involves making reasonable
efforts to determine true identity and beneficial ownership of
accounts, source of funds, the nature of customer’s business,
reasonableness of operation in the account in relation to the
customer’s business etc which in turn helps the banks to manage
their risks prudently. The objective of the KYC guidelines is to
prevent banks being used intentionally or unintentionally by
criminal elements for money laundering, KYC has two
components- identity and address. While identity remains the
same, the address may change and hence the banks are required
to periodically update their records.

KYC update is the recent activity that is carried out in all the
commercial bank as instructed by Nepal rastra bank. So as per the
instruction, I distributed and helped customer to fill up the KYC
form at NICASIA bank, mahendranagar branch. For KYC update,
we told to inform the customer who visit the bank and who
doesn’t often visit the bank they were informed through
telephone calls.

4.2 Problem identified and solved

During my two month project work, I also got the opportunity to
understand, identify and solve some of the problems faced by the
bank. Here are some problems and difficulties that exist in the CSD
of the bank:
  The CSD at mahendranagar branch is understaffed. Too much
responsibility lies on the single person who faces a lot of
problems during huge traffic hours at the bank,
 There was lack of adequate follow ups with the customer
regarding matters such as informing them to collect their
ATMs, cheque books etc.
 There is frequent technical problems in the ATM machines
which has led to multiple ATM complaints.
 The task of remittance is also performed at CSD which
delayed the other task that has to perform at CSD.

4.3 Possible solutions to the problems

After analyzing the problems I tried my best to solve some of

them to my best of abilities. In addition to those, here are the
possible solutions to those problems which could not be
solved from my level.
 The CSD at mahendranagar branch needs to recruit
additional staff to handle the workload of the
department. I have brought this matter to the attention
of the operation manager who has assured me to do
something about it soon.
 I also took the initiative to take the frequent ATM
complaints to the operation in charge and as a result of
which the mahendranagar branch contacted the IT
department at the head office and had them solve this
problem.
 A possible solution to establish a separate remittance
at the branch to separate these functions and carry
them out more efficiently.
Competitors
In this part of the report, a brief comparison of the competitors of NIC ASIA bank
is being done. Among the many banks in mahendranagar, these banks are chosen
as the major competitors of NIC ASIA bank. These banks are chosen because they
are located in similar place and their products are competitive. This makes the
comparison more relevant as they have similar customers.
Some of them are:
 Nabil bank
 Bank of Kathmandu
 Sanima bank limited
 Siddhartha bank limited
 Nepal SBI bank limited
 NMB bank limited
 CIVIL bank limited
 Citizen bank limited
 Kumari bank limited
 Nepal Bangladesh bank limited

Data analysis, interpretation of questionnaire

Q.1. Your age

Ans. 1. 18-23 years 24 person
2. 24-29 years 39 person
3. 30-35 years 48 person
4. 35 to above year 29 person
Interpretation
From the above response, it can be seen that
 17% respondent’s age are 18-23 years
 28% respondent’s age are 24 to 29 years.
  34% respondent’s age are 30-35 years.
 21% respondent’s age are 35 to above years.

Age

18-23 years
17%
35 to above year
21%

24-29 years
30-35 years 28%
34%

Q.2 Marital status

Ans.
 Married 93 person
 Single 47 person
Interpretation
From the above response it can be seen that
 66% respondents are married.
 34% respondents are unmarried.
 Marital status

Single
34%

Married
66%

Q.3. Educational Qualification?

Ans.
 Undergraduate 67 person
 Graduate 20 person
 Postgraduate 53 person

Interpretation
From above response it can be seen that
 48% respondents are under graduate.
 14% respondents are graduate.
 38% respondents are post graduate

Education Qualification
Undergraduate Graduate Post graduate

38% 48%

14%
Q4. Your annual household income?
Ans.
 Less than 2 lacs 46 person
 Between 2 to 5 lacs 64 person
 Between 5 to 8 lacs 23 person
 More than 8 lacs 7 person

Interpretation
From above response it can be seen that
 33% respondent’s annual household income is less than 2 lacs.
 46% respondent’s annual household income is between 2 to 5 lacs.
 16% respondent’s annual household income is between 5 to 8 lacs.
 5% respondent’s annual household income is more than 8 lacs.

Annual income

Less than 2 lacs

Between 2 to 5 lacs
Between 5 to 8 lacs
More than 8 lacs

Q5. How do you like different product/services provided by NIC ASIA bank?
Ans.
 Excellent 67 person
 Very good 33 person
 Good 40 person
Interpretation
From the above response it can be seen that
 48% respondents perception said excellent
 23% respondents said very good.
 29% respondents said good.

Perception
Excellent Very good Good

14%
48%
38%

Q6. Do you want to open an account with NIC ASIA bank?

Ans.
 Yes 140 person
 No 0 person
Interpretation
From above response, it can be seen that
 100% of the people want to open an account.
 0% of the people doesn’t want to open an account.

Willingness
Yes No

0%

100%
Q7. Do you have all the documents which are required to open an account?
Ans.
 Yes 137 person
 No 3 person
Interpretation
From above response, it can be seen that
 98% respondents have all the documents which are required to open
an account with the bank.
 2% respondents do not have all the documents which are required to
open an account with the bank.
Yes No

2%

98%
CHAPTER 5: CONCLUSION, LESSON LEARNT AND
RECOMMENDATION
5.1 Conclusion
From the above analysis it is seemed that NIC ASIA bank is one of
most hard working commercial bank that is dedicated in serving their
valued customers with excellence. During this project work of two
months, I had learnt a lot about the banking activities and banking
operation in the nepalese market, about NIC ASIA bank in particular.
This report has made researcher know about the various kinds of the
customer services that NIC ASIS bank has been offering. The project
work has been fruitful in many ways to researcher.

Project work has broadened researcher’s knowledge, vision, ability,

management skill and confidence to perform in real working
environment. It was a great chance to gain paractical knowledge of
banking sector. The practical cases are rather different from that we
study in theory. Further researcher has also become versed to get
socialize with the diversified people, to deal with the senior stsffs and
to deal with the researcher’s colleagues so as to make the working
environment cheerful, pleasant and friendlier. Beside this, the
supervisors were extremely helpful in guiding on our project work.

It was the great experience working as an researcher in NIC ASIA

bank. The operational environment was benevolent. There was good
communication, healthy competition and healthy relationship in
between the personnel of NIC asia bank. Each and every staff of NIC
ASIA bank were totally professional but still there was a family
environment making overall internal working environment delightful
to work with. Working at NIC ASIA bank as an researcher was a great
opportunity to develop conceptual and analytical knowledge about
banking sector in Nepal. Thus, the knowledge and experience
endowed with this study will surely be constructive towards the
pavement of researcher’s career and professional life.
 During my project work what I also analyzed is that the bank is good
in providing a good customer service. Customers always seek quality
service at their convenience, customers have preferred NIC ASIA
bank mainly due to its brand image, branch facilities and service
quality. They expect this bank to rise even more to become the
lending bank in service quality. Mostly the customers of NIC ASIA
bank are satisfied with they are receiving but there are also some
issues regarding interest rate on deposits and also other factors or
room for improvement for the bank in order to excel even more and
be a top banking industry in years to come. Improvements have to be
made from time to time in order to sustain the satisfaction level of
customers and push the bank to a continuous growing path.

5.2 Lessons learnt

The statement “more you learn more you will discover your
ignorance” has seemed to be appropriate during this project work in
NIC ASIA bank. Researcher has obtained insights into career
opportunities through interaction, observation and work experience
in the organization and also built another step towards success
through interpersonal, managerial, communication and
entrepreneurial skills gained from this project work. Being exposed to
professional working environment, researcher has understood the
corporate social responsibility, change the attitude and behavior
towards daily life spending. The most important lesson learnt by
researcher has been listed as follows:
 Various operation and activities of CSD and some few in
clearing department of bank.
 Social exposure with various types of customers from different
background since NIC ASIA deals with its clients in the process
of rendering its services.
 Learn to face and handle problems effectively and efficiently.
 Chance to get familiar with finacle system installed by NIC ASIA
bank.
  Keeping the account of each and every transaction in file as
per the supportive evidence. So, filing is the most important
job in the bank.
 Along with customer satisfaction, employee satisfaction also
plays a great role in the success of the bank.
 There was the opportunity to understand different types of
stamps and their respective function that was in use.
 Learn the workflow, chain of command and hierarchy of
organization
5.3 Recommendations
With reference to the findings and the conclusion drawn out above
following recommendation can be sorted out:
 It is observed that the employees were overburdened because of
heavy workload so they have to stay at head office till late at night.
Though they are remunerated their efficiency is affected. Proper
time management or hiring more employees can reduce their work.
 Too many researchers should not be placed in one department which
may lead to mixing up of works and consequently the co-workers are
not satisfied with the work of researchers.
 Bank has provided many facilities to the customers like free ATN
cards, e-banking but only this is not even, the bank should ensure
smooth flow of services without any complain from the customers.
 A customer is the first priority so they should be given more
attention and complaints of the customer should be promptly
responded.
 All the staffs should be properly trained in using the banking
software.
 There should be good communication between head office,
corporate office and the branches,
 The bank should also show some responsibilities towards the society
by organizing different social program, sponsoring and promoting
educational and health program.
 The bank should monitor the behavior and attendance of the
researchers so they are encouraged to be at their best and feel like a
part of their of thuir organization.
 The branch should follow the manual and destroy the uncollected
ATM cards and cheques books that have not been collected since last
year. This would not only minimize the operational risk but also
reduce complaints from HO that mahendranagar branch often gets.
 The bank needs to be more concerned about functioning of ATM as it
may be out of service time to time.
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Appendix
Current interest rate
Savings Deposits Minimum Rate(%
Balance(NPR) p.a.)
Karmashilbachatkhata - 4.5
Youth savings account 100 4.5
Remit savings account 100 4.5
Sulavbachatkhata 500 4.5
Little star savings account 500 4.5
Life savings account 10000 4.5
Nari Shakti bachatkhata - 4.5
Happy savings account 1000 4.5
Shareholders savings account 100 4.5
Share shuvidhabachatkhata 500 4.5
Special savings account 5000 4.5
Super special savings accounts 10000 4.5
Super payroll account - 4.5
Premium savings account 25000 4.5
Senior priviledged saving account - 4.5
Samrakchyakbachatkhata - 4.5
KrishakSamriddhabachatkhata - 4.5
Swabalambinaribachatkhata - 4.5
Samajiksurakshyabachatkhata - 4.5
EPS koreabachatkhata - 4.5
Online bachatkhata - 4.5
Samunnatibachatkhata - 4.5
Samunnati plus bachatkhata 1000 4.5
Social security relief account - 4.5
Bidhyarthibachatkhata - 4.5
Premium samunnatibachatkhata 1000 4.5
New premium samunnatibachatkhata 1000 6.5
Chamatkarikbachatkhata 1000 6.5
Chamatkarik online bachatkhata - 6.5
Babunanibachatkhata - 6.5
Baideshikrojgarbachatkhata 500 6.5
UdhyamshilBachatkhata 500 6.5
Chamatkarikbachatkhata-silver 1000 6.5
Chamatkarikbachatkhata-gold 25000 6.5
Chamatkarikbachatkhata-diamond 100000 6.5
Chamatkarikjesthanagarikbachatkhata- 1000 6.5
silver
Chamatkarikjesthanagarikbachatkhata- 25000 6.5
gold
Chamatkarikjesthanagarikbachatkhata- 100000 6.5
diamond
Chamatkariknaribachatkhata-silver 1000 6.5
Chamatkariknaribachatkhata-gold 25000 6.5
Chamatkariknaribachatkhata-diamond 100000 6.5
Chamatkariktalabbachatkhata - 6.5
Chamatkarikbabunanibachatkhata - 6.5
Chamatkarikbidhyarthibachatkhata - 6.5
Chamatkarikudhyamshilbachatkhata 500 6.5
Chamatkarikbaideshikrojgarbachatkhata 500 6.5
Chamatkarikswarojgarbachatkhata - 6.5
Samriddha Nepal 100 6.5
sukhinepalibachatkhata
Chamatkarikbachatkhata-silver(for FD) - 6.5
Chamatkarikbachatkhata-gold(for FD) - 6.5
Chamatkarikbachatkhata-diamond(for - 6.5
FD)
Chamatkarik fixed deposit Minimum Interest rate(p.a.)
( 3 months upto 1 year) balance Institutional Individual
Fresh Renewal
Chamatkarik fixed deposit- 100000 8.50% 8.60% 9.25%
silver
Chamatkarik fixed deposit- 1000000 8.50% 8.60% 9.25%
gold
Chamatkarik fixed deposit- 2500000 8.50% 8.60% 9.25%
diamond
Other fixed deposits Minimum Interest rate(p.a.)
balance Institutional Individual
Fresh Renewal
3 months upto 10 years NIL 8.50% 8.60% 9.25%
FCY Deposits Minimum Rate (%p.a.)
balance
USD sulavbachatkhata USD 25 2.60%
USD savings accounts USD 25 2.60%
USD super saving account USD 100 2.60%

USD premium savings NIl 2.60%

account
FCY fixed account Nil Negotiable
Other deposits Minimum Rate(%p.a.)
balance
NIC asiasikhshyakosh and 100 Upto 4.5%
sikhshyakosh plus account
Recurring deposit 500 9.25%
Call deposit Negotiable(subject to NRB directive)
Recurring deposit Interest rate(p.a.)
Chamatkarik recurring 9.25%
deposit (individual)
Others
Fixed deposits Institutional Personal(%p.a.)
(%p.a.)
1 month upto 10 years- 8.50 9.25%
fresh
1 month upto 10 years- 8.60 9.25
renewal
Others
Foreign currency deposit Minimum Interest rate
balance
USD fixed deposit Nil Negotiable

Lending rates
Retail Premium(% p.a.)
Auto loan Upto 7.00
Home loan
a. Home loan OD Upto 7%
b. Home equity loan Upto 7%
c. Residential home loan Upto 7%
Gold loan Upto 7%
Sajilosubidha( Term loan) Upto 7.00
Sajilosubidha(Overdraft) Upto 7.00
Sajolokarja Upto 7.00
Gold loan-demand Upto 7.00
Gold loan-overdraft Upt0 7.00
Loan against share Upto 7.00
Personal loan Upto 7.00
Education loan Upto 7.00
Foreign employment loan Upto 7.00
Loyalty financing facility Upto 7.00
Real estate loan Upto 7.00
Chamatkariksawarikarja Base rate plus 0.12% to
1.32% premium
Chamatkarikgharjaggakarza Base rate plus 0.12% to
2.52% premium
SME Premium(%p.a.)
Fast track business loan Upto 7.00
Priority business loan Upto 7.00
Premium business loan Upto 7.00
Commercial agricultural and Upto 7.00
livestock loan
Corporate Premium(%p.a.)
Import credit/TR. Loan Upto 7.00
Overdraft/Cash Upto 7.00
credit/working capital loans
Term loan Upto 7.00
Other short term working Upto 7.00
capital loans
Deprived sector lending Premium(% p.a.)
Deprived sector-direct Upto 7.00
Deprived sector-indirect Upto 7.00
Others Premium(%p.a.)
Export credit Upto 7.00
Loan against own FDR Upto 7.00
Loan against other bank’s Upto 7.00
fixed deposit receipt
Loan against 1st class bank Upto 7.00
guarantee
Loan against government Upto 7.00
securities(max draw down
80%)
Agricultural loans for youths Upto 7.00
Equipment financing Upto 7.00
FCY loan Upto 1 year LIBOR +4

Notes:
 Base rate for the monthshrawan 2076 is 9.3%.
 Interest spread rate for the month shrawan 2076 is 5.05%.
 Rate on default account and watch list account may vary from
the above published rates.
 Interest rate on consortium loans shall be as decided by
consortium.
 Interest rates in specified loans directed by Nepal rastra
bank(like agricultural loan for youth, refinance, export
oriented units in FCY, deprived sector loans to minorities,
senior citizen, differently abled, widow, war victims, etc) shall
be as stated by Nepal rastra bank circular/directive.
 Penal interest rate shall be charged at the rate of additional
2% p.a. on principal overdue and/or interest overdue on loan
amount or deal or contract outsourcing from the time interest
and/ or principal becomes overdue on the respective loan
amount or deal or contract.
 In case of temporary overdrawn account highest published
rate for the amount excess to the limit shall be charged.
 Other interest rates remains unchanged.