Final Reports by Sunil

CUSTOMER SERVICES PROVIDED BY BANK OF KATHMANDU A fIELD REPORT

Submitted By: Sunil Kumar Mahato Himalayan White House International College Batch 2008-2012 PU Registration No: 034-2-2-00523-2008

Submitted to: The Dean Faculty of Management Purbanchal University Biratnagar, Nepal

Submitted In: Partial fulfillment of the course requirement for the degree of Bachelor of Business Administration (BBA)

March 31, 2011

ACKNOWLEDGMENT

This report has been prepared for the partial fulfillment of BBA course as prescribed by Purbanchal University in the subject area. This report provides precise and up-to-date Information on the services given by the Bank of Kathmandu to its customers.

The quality of this report was greatly enhanced by the gracious guidance and suggestion made by Mr. Govinda Sethi ,Director of BBA/BLAS ,white house GSM and Mr.Padmanath Tiwari . I had selected this topic for my field report because I felt there was a great need to conduct a research on all the services and products provided by Bank of Kathmandu since the quality of service provided by an organization could make or break it in this everchanging Nepalese economy.

EXECUTIVE SUMMARY This report introduces the brief study of the consumer financing services provided by the Bank of Kathmandu in which the scheme provided to the customer and the requirement for the process of the loan and to find out how much they are focused on customer services are discussed. This report also cover general overview of the organization and the different services provided to the customers. The study of report brief emphasizes different schemes of consumer financing of bank of Kathmandu like loan and Advances, Deposit products and various other services provided by bank like Online banking, ATM cards, credit cards etc. AS it has many branches all over the country, hence this study will concentrate on the consumer financing and services provided by bank of Kathmandu ltd in Kathmandu Branch. To overcome the existing problem bank has to make their policies and structure effective and efficient. To tackle the existing political problem of bank has to ready for the changes and make the contingent of polices.

VIVA-VOCE SHEET

We have conducted the VIVA-VOCE examination of the field Report presented by Mr. Sunil kumar Mahato entitled CUSTOMER SERVICER PROVIDED BANK OF KATHMANDU and found the report to be the independent work of the student and written according to the prescribed format. We recommend the report to be accepted as partial fulfillment of the requirement for the Degree of Bachelor of Business Administration.

VIVA-VOCE COMMITTEE ………………….. Govinda Sethi Program Director, Undergraduate Padma Nath Tiwari …………………

RECOMMENDATION This is to certify that the Field Report submitted by Mr. SUNIL KUMAR MAHATO entitled CUSTOMER SERVICE PROVIDED BANK OF KATHMANDU has been prepared and approved by the Department in the prescribed format of faculty of management .This FIELD Report is forward for evaluation.

………………………. Padma Nath Tiwari Supervisor

…………………………………. Govinda Sethi Program Director, Undergraduate Studies

March, 2011

TABLE of CONTEBTS

Chapter

1

Contents

Background of the study Area of study Objective of study Scope of study Methodology of study Statement of problem

2

Qualitative ANALYSIS OF BANK OF Kathmandu Historical Background of study Mission of study Functional focus of the organization Pest Analysis Current status of Bank Study Analysis

page

3

PRESENTATIONS AND ANALYSIS Meaning of concept of loan Meaning of Deposit Account

4

SUMMARY, CONCLUSIONS AND RECCOMENDATIONS Summary Conclusions Recommendations

CHAPTER: I INTRODUCTION

Most people don’t normally get access of capital through equity Markets so they would Normally get access to debt finance through the established financial institutions including Banks, credit union, insurance companies, etc. Set to facilitate the needs of the customers, Bank of Kathmandu has been providing

excellent

customer

services

to

overcome

the

fierce

and

Competition stands upright in the competitive market of banking sector.

Consumer financing provides individual the necessary for personal ranging from buying a house, buying a car , for foreign employment and for educational purpose .Most of the people Now have awareness of the advantage of financing. In addition, Bank of Kathmandu has been introducing various deposit products and other services like safe lockers, ATMS, credit cards etc as well. So many customers have been attracted long time back but its Market was limited. But now as Many Banking institutions have started the services of providing consumer loan, the competition has increased.

To capture the market, Bank of Kathmandu has been making consumer financing strategies. Bank of Kathmandu is committed to providing products and services of the highest standard to customer by understanding the

requirements best to suiting the markets needs. Along with the widening of the consumer financing market, many people are attracted towards the services provided by the banking institutions. As consumer financing and deposit services are useful to the customer with reasonable income, it seems that consumer financing strategies should be overviewed .So, this study overviews the consumer servicing strategies of Bank of Kathmandu.

Area of the study This study is confined on the present practices of Bank of Kathmandu on consumer servicing .Different strategies for various consumers financing housing loan, car loan, educational loan Vehicle loan vehicle purchase loan and foreign employment are explored in the study this study Will also have to be familiar with the modern banking products like online banking, ATM cards and credit cards and various other deposit products introduced by Bank of Kathmandu.

Objective of the study This study has following objectives: 1. To analyze the consumer financing strategies of Bank of Kathmandu Ltd

2. To find out the schemes provided to customers and to find out how much it focuses on customer services. 3. To explore different facilities like online banking, ATM cards, credit cards etc.

Scope of the study This study overviews the consumer product and services schemes, strategies and various other facilities. Bank of Kathmandu has been providing consumer financing in sector like Deposits, Loan and Advances, Credit ATMs, etc. The main issue of the study is how Bank of Kathmandu is serving the customers in consumer financing and what strategy and policy is adopted By BOK.As many customers are attracted towards the different facilities of the organization, the analysis of the entire scheme is necessary. Hence, this report is prepared to analyze the consumer financing strategies schemes and services.

Area of the study This study is confined on the present practices of Bank of Kathmandu on consumer servicing. Different strategies for various consumer financing housing loan, car loan, educational loan vehicle loan vehicle purchase loan and foreign employment are explored in the study this study will also have to be familiar with the modern banking products like online banking, ATM cards and credit cards and various other deposit products introduced by Bank of Kathmandu.

Research methodology: Review of the consumer policy directives issued by Bank of Kathmandu and the annual Consumer financial statement for the current year is analyzed and visits the homepage of bank of Kathmandu to take the most of information.

Statement of the problem This study in concerned to know the services provided by the Bank of Kathmandu. The problem mainly Seeks to define the services in terms of providing the quality services to its customer The study gives the overview of the company, whether the company is able to provide those Services to its customer or not

CHAPTER: II QUALITATIVE ANALYSIS OF BANK OF KATHMANDU

Historical background of the bank BOK started its operation in March 1995 with the objectives to stimulate the Nepalese economy and make take it to over heights. Bok also aims to facilitate the nation’s economy and to become more competitive globally. To achieve these, Bok has been focusing on its set objectives right from beginning. To highlight its objectives:

. To contribute to the sustainable development of the nation by mobilizing domestic saving and channeling them to productive areas. . To use the least banking technology to provide better, reliable and efficient services as a reasonable cost. .To facilitates trade by making financial transaction easier, faster and more reliable through relationship with foreign banks and money transfer agencies. . To contribute to the overall social development of Nepal.

Vision of the organization “To become a significant contributor to the economic development of Nepal by distinguishing the bank as an efficient, competitive, safe and top –quality financial institution.”

Mission statement of the bank

To offer financial services and becoming the “Bank choice “by dedicating to the progress and growth of the institution for the community ,customers ,employees, supervisors and stockholders by: .Promoting economic growth and becoming a caring corporate citizen. .providing excellent customer services by offering personalized quality products and services.

. Inducing modern technologies of banking that adds value to customer services .Enhancing shareholders value .providing challenging career and learning opportunities for employees.

Functional focus of the organization Services and facilitate provided by the Bank of Kathmandu Debit card/ATM: Bank of Kathmandu Ltd. In order to facilitate the customers financial transactions introduces BOK Debit card in association with SCT Technologies PVT. Ltd. BOK Debit card enables you to make purchases of goods and services at various merchant locations as well as cash withdrawal from ATMS with access to your bank account. The customer can have easy access to their nominated account maintained with Bank of Kathmandu Ltd. From any ATM location that speeds to more

than 50 ATM location .Further they can make purchase of

goods and services from more than 200 merchant locations through Point –of –sale terminals.

Deposit products Current Account: To suit every business need BOK has tailored made Current account which rightly meets the customers need in today faced paced business. With advanced technological features all their banking needs are well taken care of. An account holder can have access to his /her from all Bok branches in just few seconds.

Ladder Saving : Ladder Saving of Bok not just helps the customers to save money but also helps the money now grow with competitive interest rate on daily balance. This power packed account is well packaged with all the various banking services .Interest can be earned up to 4.25% on daily balance in the saving scheme.

General saving: General saving offers competitive rate of interest on daily balance.

Sajilo Bachat Yojana: To inculcate banking habits among customer Bok introduced Sajilo Bachat kahata with minimum balance of just RS.1000. As the name Sajilo Bachat Khata suggests, it has been easy,hassle-free and affordable to general public . With Sajilo Bachat Khata,one have easy access to modern Banking facilities like ATM ,Mobile banking services etc.

Jestha Lagani kosh : Bank of Kathmandu has introduced a special deposit product jestha Lagani Koshi . The product has been developed with the view to encourage saving habit and address the need of elderly citizen. JLK is ideal for retirees or people of the age of 60 years and above. JLK not only offers attractive rate of return (like fixed deposit) but also flexibility (like saving account). It is a flexi –fixed deposit scheme wherein to this withdrawals as per pre-agreed terms are also allowed Before the maturity period.

Griha Laxmi Bachat : Bok has introduced a new saving product targeted especially for household /working women to offer them the best financial services and the best banking practices. The main purpose of the product is to inculcate women‘s saving habits.

Call Account: To manage large volume of surplus funds of a customer ‘s organization ,he /she can open an operative Account call Account at Bank of Kathmandu and can earn additional earning for his /her excess funds.

Fixed Deposit: Tenure ranging from seven days to over, fixed Deposit at Bank of Kathmandu allows one to diversify his portfolio to best suit his investment plan.

Recurring Deposit: To build up on saving, Bok has introduced Recurring Saving Scheme where in monthly equated deposit over a fixed period of time yields higher returns.

Loans and Advances Corporate Credit Project Finance (Term Loan): Based on the validity of the project /proposal, Term Loan to finance the long term financing need of a firm /company may be made available. This loan is normally provided of 65%of the financing requirement with a maximum tenure of 60 Months. Term could vary depending upon the need of the project.

Working Capital finance: Based on the nature of a business /transaction, various types of working capital facilities /loan may be also availed. Some of the commonly offered products under this category are as follows.

Overdraft: This revolving /open term facility enables a firm /company to manage their varying daily cash requirement.

Demand /short –term Loan (Trade finance): These facilities are normally provided to support one-off or any particular short term transactions.

Trust Receipt/importers Loan (Trade finance): Majority of the business in Nepal depend on imported items. Short Term trust Receipt Loans are the most common /popular product available to finance such requirement. Export Loan: Export loan facilitates to the exporters to process/collect stocks for exports.

Business Credit Trust Receipt /importer Loan (Trade finance): Majority of the business in Nepal depend on imported items. Short Term Trust Receipt Loans are the most common /popular product available to finance such requirement.

Other types of Business Loan against Fixed Deposit: Loan against fixed deposit enables one to manage the short term cash need without breaking the deposit. Loan against Govt. Bond /1 st class Bank Guarantee: A low cost secured loan product offered customers for managing their financing need. Priority Sector Deprived sector Loan: By virtue of this product small entrepreneur /individual may also available loan up to NPR2.5 million.

Retail Credit /Consumer Lending

Housing Loan: financing accommodation facility for individuals. Vehicle Loan: BOK has made financing of vehicles realistic with simple processing, easy installment and attractive interest rates.

Education Loan: To help create a better future, BOK finances student for their studies inland and abroad.

Festivity Loan: BOK also finances individuals to meet their personal expenses and social obligations such as marriages, barthabandh and other social celebration. Furthermore, the bank also provides loans for medical treatment, vacations etc.

Foreign Employment Loan: It provides loan to eligible individual recommended by various institutes or government to help them go abroad on a prearranged employment through a recognized employment agencies.

Development Credit Unit(DCU): The goal of Development Credit is to provide quality financial services to marginalized groups and poorer sections of society through intermediaries e.g. Micro finance institutions ,Co-operatives, financial intermediary Non Governmental organization ,Development Banks, community Based Organization and other registered organizations.

Product of development Credit Unit 1. General Micro finance: This product has been devised for financing general micro finance loans to clients through partner institutions involved in offering Micro finance services. A micro finance loan is defined as loan used for various income generating activities including limited to purchase if livestock, loans for mini grocery stores, vegetable loans, etc. Non –income generating loans such as installing bio – gas units shall also be availed but only with prior approval from Bank of Kathmandu.

2.Agriculture and forest Based product Loan : The product has been devised to allow farmers, agricultural cooperatives, community forest users and other registered institutions engaged in producing and processing agricultural and forest based products to have access to finance for funding working capital requirement, plantation expenditures and purchasing livestock and accessories.

3. Equipment finance: The product aims to finance the cost of equipment of various purposes to individuals, groups and institutions operating Small and Medium Enterprises with an objectives to raise income in rural and urban areas of Nepal. 4. Vehicle and Accessories finance: The product has been devised for financing vehicles and vehicle related accessories to self- employed low income earning entrepreneurs. Loans will be of a Hire Purchase and on an owner –driver concept.

Electronic Fund Transfer Swift Transfer: Bank of Kathmandu Limited offers fast and reliable money transfer services via SWIFT. SWIFT stands for society for worldwide interbank financial Telecommunication the secured network used for interbank financial transaction and communication worldwide. You can receive remittances and be credited in your Bank account virtually from anywhere around the globe. Similarly, you can transfer money abroad through SWIFT transfer even without having any bank account with the bank.

Demand Draft: You can buy/sell drafts drawn on /by different international banks at Bank of Kathmandu. Bank of Kathmandu has strong foothold in the issuance U.S Dollars and Indian Rupees Bank Drafts. Traveler’s Cheque: You can purchase and sell travelers cheques at Bank of Kathmandu Limited. Travelers cheque , easy and secured way to carry cash when you r are on travel, can be bought from Bank of Kathmandu at competitive price. Bank of Kathmandu sells American Express Travelers Cheque. Bank of Kathmandu is only the bank in Nepal to provide charge free TC encashment for American express Travelers Bank,. You can enjoy and benefited by charge free TC encashment. Money Transfer Companies: With tremendous growth of Nepalese working abroad. Bank of Kathmandu has tied up foreign Money Transfer companies setting up a reliable time bound service, enabling inflow of foreign earnings to the country with level of security. You can receive your remittances within few minutes of payment instruction made through in alliance with foreign Money Transfer Companies. The services are available from all Branches of bank of Kathmandu.

Other Services Gift Cheque: BOK‘s gift cheques offer customer an essay method for arranging gift for various social occasion. BOK gift cheques are suitable for all occasion and are ideal for friends and family.

Cash Management: Bank of Kathmandu is one of the lending banks to provide Cash Management service in Nepal. If you are in Export business engaged in exports to various parts of India. Bank of Kathmandu can be your best business partner in collecting your bills receivables more efficiently. You simply need enroll

for the service and provide detail of your customer that include names and address of your remitters/business affiliates in India. Bank of Kathmandu will deliver your export proceeds or payments to your account in a short span of time than normal transaction time. Safe Deposit Locker: The burden of having to worry about valuable possessions like jewelry, important documents, etc can be eliminated by acquiring a Safe Deposit Locker at Bank of Kathmandu.

Functional focus of the study Every banking institution has the same function like acceptance of deposit, providing loans and several of the facilities like online banking, ATM cards and credit cards etc. Bank of Kathmandu has been providing consumer financing to overcome the fierce competitions and to stand upright in banking industry.

PEST Analysis PEST analysis stands for “Political, Economical, Social and Technological Analysis” and describes a framework of macro –environmental factors used in the environmental scanning component of strategic management. It is a part of external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro –environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, market positions, potential and direction for operations.

Due to political instability, the BOK has not been able to introduce more attractive financing strategies. The services have been limited to narrow market. In this competitive world of banking sector, consumer servicing has the functional area of the institutions and the people are also attracted towards the financing scheme due to the advantage like easy installment schemes, low interest on loans etc. AT present, the bank of Kathmandu has been serving wide range of customers. The consumer financing strategies have been changing along with the time and the preference of the customers. Technology plays a vital role in the development of any sector. Likewise, the technological pace of Bank of Kathmandu is moving along with the time. Bank of Kathmandu has state-of –art technique appropriate and efficient management information system (MIS) and high quality service.

Current Status of the Bank Bank of Kathmandu has been one of the finest banking institutions among various successful banks in Nepal. It has been maintaining its positions in providing the facilities and as one of the hassle-free banking service provider. Bank of Kathmandu is well known for its efficient Management information system (MIS) and has been giving quality services to its customer through various schemes and options. In providing consumer financing services, it has been successful because of its low service charge and huge number of services it provides.

Personal documents like proof of citizenship, completed application, contact detail of the applicant, etc are verified by the time of opening up an account. Similarly, other criteria should be fulfilled as required by the bank. There are factors which affect the bank’s activities which are listed below. . Risk emanating from excessive competition. . Risk from changes in government policies related to commercial bank. . Risk from changes by the government of Nepal or Nepal Rastra Bank in monetary and fiscal policy. .Risk from movement of foreign exchanges rate. .Risk from impacts of the global economic environment.

Study Analysis Modern organization across the globe is facing challenges in their survival strategies. This competition has crossed the path of banking sector as well. Many banks are emerging in Nepal with different schemes and strategies. Online banking, ATM cards, credit cards and different loan facilities are some of the attraction provided by the bank to attract customer. Bank of Kathmandu is one of the most banks in Kathmandu. It has been providing different services to its customer for more than a decade. Services like consumer financing and the loan and advances provided by the bank of Kathmandu are considered some of the best services due to the options given by the bank. Key findings

Some of the reasons behind the success of Bank of Kathmandu: Good consumer financing strategies Numerous schemes and options available to the customers to choose from Addition of the other various facilities like online banking, ATM cards, gift Cheque, safe locker, etc.

Chapter Summary Consumer financing provides the access of capital required to the customer. Bank of Kathmandu has been providing services like deposit, and loans and advances, ATMS, etc to overcome the fierce competition in the banking industry all over Nepal. In the present political situations of Nepal, a bank has to have flexible strategies to tackle different problems that it may face which Bank of Kathmandu is capable of .As the report is prepared on the basis of qualitative data, presentation and analysis are done accordingly. Key findings of the study are overviewed in the next cha

CHAPTERIII: PRESENTATION AND ANALYSIS Meaning of concept of loan A loan is a type of debt. Legally, a loan is a contractual promise between two parties where one party, the creditor, aggress to provide a sum of money to a debtor ,who

promises to return the money to the creditor either in one lump sum or in parts over a fixed periods in time. This agreement may include providing additional payments of rental charges on the funds advanced to the debtor for the time the funds are in the hands of the debtor interest. Corporate and Business Loans: Notwithstanding sluggish market condition, competition has been intensifying due to an increase in the number of financial institutions. During the year, BOK has been able to advances loans to small medium business and selected customers. This has been a major factor in successfully building the portfolio in the market, which has limited long term financing opportunities owing to the fragile security situation of the credits, which has aided in the preservation of margins and profitability. In addition, it continues to lead/manage some large syndicated loans, particularly those associated with the hydropower, medicine and education sectors. This has made a positive contribution to developing skills and confidence as well as providing stable sources of revenue. Micro –Financing: During the year, BOK has financed pollution-free electric –three wheelers driven by women, biogas units, herb distillation equipment, etc as in the initiatives taken towards wholesale micro –credit activities. This has the potential of making inroads in rural market, which are mainstay of Nepal economy, and also of diversifying sources of income for the bank. Consumer Financing: Most financial institutions emphasize credit to mitigate the risk/competition and lower returns prevalent in corporate financing .BOK has been advancing hire- purchase loans, housing loans, professional loans and personal. The bank is also probably the first to advance foreign loans in collaboration with the bank is also probably the first to advance foreign employment loans in collaboration

with the Government of Nepal. Based on this experience. BOK has syndicated similar loans of other financial institutions during the year. Loans and Advances of Bank of Kathmandu have increased by 35.62% during the year as compared to the preceding year. Credit to small/medium business and consumer financing have made the major contribution to this Growth. Considering the state of the economy and the dearth of viable projects, these have been considered to be better avenues for investment than the largevalue and low-yielding corporate sector.

Year 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/2010

Loans and Advance 5,645,689,444 5,912,579,472 7,259,082,579 9,399,327,617 12,747,722,000 13,478,258,000 17,478,245,000

Percentage Increase (%) 4.70 22.47 29.48 35.62

Meaning and Concept of Deposit Account A deposit is a current account at banking institution that allows money to be deposited and withdrawn by the account holder, with the transaction and resulting balance being recorded on the bank’s books. Some banks charge a fee for this service while others may pay the customer interest on the funds deposited. Offering an array of features, BOK‘s deposit base comprises of depositors ranging from the general public to business houses, NGO, INGPs, diplomatic agencies and

institutional depositors. BOK’s tailor –made deposit facilities tend to meet their customers need in today’s fast –paced for surplus funds, and make personal banking convenient and efficient to suit their investment plans. With a view to strengthening its stable deposit base, Bank of Kathmandu has introduced the “Ladder saving” scheme during the year 2006. Similarly ,in order to diversify the portfolio, New flexi –fixed deposit products ,Jestha Lagani kosh” and recurring deposit schemes, “Kopila Bachat Yojana” and Mero Bachat Yojana” and had also been introduced in the same the year. The product for common people,”sajilo Bachat kahata” has gradually reduced reliance on expensive inflexible and volatile deposits. Backed by an increase of 27.80% Total Deposit has surpassed a figure of RS 15 billion during the year. Rise in the interest rate on Treasury Bills has had some impact on the rates of deposits. Excess liquidity has efficient managed by investing safe avenues.

YEAR

Deposited Amount (RS)

Percentage Increase (%)

2003/04

7,741,645,424

2004/05

8,975,780,968

15.94

2005/06

10,485,359,239

16.81

2006/07

12,388,927,294

18.15

2007/08

15,833,738,000

27.80

2008/2009

19,856,745,000

2009/2010

24,456,456,500

Chapter Summary With the help of the final annual report and the homepage of Bank of Kathmandu, the various services and schemes provided by the bank are overviewed and presented. The data collected from the annual report is represented in figures through which the impact of the services provided by the bank on the deposit made or loan taken is seen.

CHAPTER: IV SUMMARY, RECOMMEDATIONS

CONCLUSIONS

AND

Summary In order to survive the tough competitions, BOK has to think of ways to attract more customers than its arrivals. And one of the best ways to this by providing quality services. This can be different scheme like low interest rate on loans, high interest rates on deposit, etc. Due to the political instability in Nepal, the bank has not been able to perform as efficiently and effectively as it could have. Bank of Kathmandu is renowned for effectively combining technology with management resulting in excellent outputs. Bank of Kathmandu is committed to provide and service of the highest standard to customer by understanding the requirement best suiting the market needs and its activities revolve around deposit mobilization, advancement of various credits, online banking including trade financing, inward and outward remittances and funds and portfolio management. The vision of bank is to become a significant contributor to the economic development of Nepal by distinguishing the bank as efficient, competitive, safe and top quality financial institution. Bank of Kathmandu hopes to offer financial services and becoming the “Bank of choice” by dedicating to the progress and growth of the institution for the community, customers, employees, supervisors and stockholders.

The services provided by bank of Kathmandu are mainly deposits which include schemes such as current account, saving account, general account, and other account. Loans and advances consist of corporate and business loans such as term loan, export loan, short term etc and consumer loan such as vehicle, education, housing loan etc

Conclusions Bank of Kathmandu has been providing the consumer services to its customer to make their life easier. BOK understands that people is financial need vary, so efforts are made to reach out to as many Customers as possible in as many ways as it can. BOK hopes to mobilize funds in an optimal manner and Provide new services that offer higher returns, strengthen the information system for monitoring of Funds and reducing risks on loans and investments and continue improvement in service standards by Capitalizing on the modern software used by the bank and continue customer service program in Order to achieve growth in the retail market.

Recommendations

The consumer financing services provided by Bank of Kathmandu are a little bit complex compared to other banks like Nepal investment Bank, Siddhartha Bank, Everest Bank etc. so it has to make the procedure more simply, say in acquiring a safe deposit locker or ATM card, etc. interest rate and processing charge compared to some of the other bank like Nepal Bank limited seemed higher in Bank of Kathmandu. To overcome the existing problem of Bank of Kathmandu, it has to make their policies and structure more effective and efficient. Due to the ever – changing political situation of Nepal, Bank of Kathmandu has to be prepared for sudden changes and it has to come up with contingent policies when needed. In addition, the bank has to build up a sufficient cushion (provision) against possible losses on loans, investment s, foreign exchange rates movement, etc. The bank has to remain conscious of developing Human resources in order to compete. Furthermore, the management should be committed towards minimizing operational risks.

List of ABBREVIATIONS BBA: Bachelor in Business Administration GSM: Graduated school of management BOK: Bank of Kathmandu ATM: Automatic Teller Machine PU: Purbanchal University Reg No: Registration Number MIS: Management information system DCU: Development Credit unit NRN: NON –Resident Nepali

BIBLIOGRAPHY

www. wikipedia .org www.bok.com.np Bok 12th Report 2005-2006 Bok 13th Report 2006-2007 Bok 14th Report 2007-2008 Bok 15th Report 2008-2009 Bok 16th Report 2009-2010