Project Report

On
“Study of Customer Preferences & Attributes towards
Saving-account”
For Global Bank Limited

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

Compiled by
Abishek Khadka
Roll no: 76
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.

I am grateful to all my friends, seniors and all those who helped me for the completion of this

Report.

Abishek Khadka
(IIMP)
 EXECUTIVE SUMMARY

Project Title:
Study of Customer preference & attributes towards saving account

Introduction:

The project was carried out for understanding the customer preference & attributes towards
saving Account of GBL and its market potential. It was established in the year, they are old
player in banking sector. The bank has two principle client segments customer and asset
management. The bank follows values such as: Integrity, teamwork, respect, professionalism, &
Mission. The segment of bank we are considering here is Corporate banking. The product out of
which have chosen for research is Saving Accounts. This research helps us in finding out the
customers view regarding the product and Services offered by the Global bank and
awareness by promotion and also identifying the market potential of the product offered by
GBL..

Need of Project:

Being a market player in the field of banking, it is necessary to have information about the
Customer preferences since Customers are always in the state of flux. In order to serve them
properly and generate business hence project was allocated to bring some insights. It helps to
know the line of interactions that consumers like and also about their interaction preferences.
As companies move from a product-centric to a customer-centric orientation, they need the tools
to analyze and optimize their efforts. Traditionally, performing analysis across the many
different systems and information sources about the customer has been a difficult task, involving
significant data integration, data mart implementation, and extensive IT support for analysis and
reporting.
Industry: Banking

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:
1. To study customer preferences & attributes towards saving account.
2. Customer views regarding product & service of GBL.
3. Identifying the market potential of the product offered by GBL.

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 & Convenient 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 Lazimpath Branch
Sample Size 165
Sampling Technique Non Probability, Convenient Sampling
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

The level of service in terms of delivering whatever is promised, fast

response in case of problems, is the most important benefit that the
customers seek, from the Bank they have a Saving Account with.

 Network reach and visibility of a Bank is a very important criterion for

the customer while opening a Saving Account. We can also conclude
from our analysis that network reach in terms of Branches and ATMs is
directly proportional to the market share in case of Private Players.

 In case of a new customer, if a bank approaches it first for opening a Saving Account
with them, then there is a good chance for the bank of getting many future businesses
and cross sales from the deal.

 Aggressive Marketing is the key to increasing the market share in this

area, since the market has a lot of potential both in terms of untapped market.

 In this highly competitive era, company has to come up with some services and
better approach to cater.
Recommendation:

 Company need to build long-term relationship with the customers, this will be a major gain
in the overall strategic marketing objectives of the company and also it will provide the
company a distinct positioning.

 Quality of service has been rated highly important by all demo fig ureic factors as a reason
for banking with a particular bank, GBL needs to improve the services provided to its
existing customers before attracting more in the future and use word of mouth as a
promotional tool to increase the sales potential of its savings account.

 Identify Cross-Selling opportunity like tie-up with international banks.

 Proper Communication with Customers regarding launch of the product & upcoming plan for
the product.

 Contract Sales Executive (CSE) should recommend right product to the right customer
so as to ensure a high degree of satisfaction among the customer.

 The bank needs to make people aware about there products and the
basic benefits they can derive out of it. And also the differential
features of its savings account as compared to other competitors.
 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