Customer Service and Loan Activities Of Agricultural Deveploment Bank Limited

                                                      CHAPTER  1

                                                1. INTRODUCTION

1.1 Meaning of Bank

Bank is a financial intuition, which is engaged in monitory transaction. Bank hasalways been the most importance and largest financial intermediates. Bank collect scatteredmoney from public providing those interests and services. This collection becomes the capitalfor the bank to invest. So the place where time money transactions are done is called Bank.

Hence money of the bank is better to be precise and clear.

Importance meanings are as follows

"According to Walter leaf:-

"A bank is that institution or individual who is always ready to service money on Deposit tobe returned against the cheque of their depositor.”

According to Prof. Kinley:

“A bank is an established which makes to individuals such advances of money as may berequired safer made and to which individuals entrust money when not required for use.”

According to Harace White:

“Bank is a manufactures of credit and machine for facilitating exchanges”

“According to Dr. H.L. Hart

“A bank is one who in the ordinary course of his business receives money which he repays byhonoring Cheques of persons from whom or on hose account lie received it”.

According to G. Growther:-

“A Bank is a dealer in debt in his own and other people are the bankers business is them totake the debt of other people to otter his own in exchange and thereby to credit money”.

Therefore the bank is an institution which accepts deposits from the public and, it turnadvances loan by crediting bank plays the intal role in the economical condition too andcreates money administer the payment system interest rates and intermediate between thesaving and investment.

1.2 World Banking History

The history of banking begins with the first prototype banks of merchants of the ancient world, which made grain loans to farmers and traders who carried goods between cities. This began around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman, lenders based in temples made loans and added two important innovations: they accepted deposits and changed money. Archaeology from this period in ancient China and India also shows evidence of money lending activity.

Banking,in the modern sense of the word, can be traced to medieval and early Renaissance Italy,to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni Medici in 1397. The oldest bank still in existence is Monte deiPaschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. It is followed by Berenberg Bank of Hamburg (1590).

The development of banking spread from northern Italy throughout the Holy Roman Empire,and in the 16th century the position of the Medicis was eventually taken over by the Fuggers and the Welsers, followed by a number of important innovations that took place in Amsterdam during the Dutch Republic in the 17th century, and in London in the 18th century. During the 20th century, developments in telecommunications and computing caused major changes to banks' operations and let banks dramatically increase in size and geographic spread. The financial crisis of 2007–2008 caused many bank failures, including some of the world's largest banks, and provoked much debate about bank regulation.

1.3 Banking history in Nepal

The modem banking practices are recent origin our country historical evidences showthe presence of some crude banking practices in the earlier period of time. The contributors to the respective time ate considered to be King GunaKamDev a sudra merchant Shankhadharthe business group. "Tankadharies" of Kantipur and also Tejarath a government financial Institution established by Rana Prime minister Rannoddip Singh. More over the setting up of "TejarathaAdda" Considered as the father of modern banking institution in Nepal.” has been regarded as the first remarkable step in organized banking. The first bank to be initiated in Nepal was the commercial bank. The pioneer in the modem bank the history of Nepal Bank Limited, which was established in the year 1994 BS of 30 Kartik Nepal's Center Bank RastriyaBanijya Bank was established in 2013 BS of Baisakha to perform the function of Center Bank in Nepal. Subsequently another State owned commercial bank. Rastriya Bank Ltd was established with join venture of Habib Bank of Pakistan. Nepal SBI Bank followed Himalayan Bank Ltd. in the year 2051 BS. Nepal Bangladesh Bank followed Himalayan Bank Ltd. in the year 2051 BS. Nepal Bangladesh Bank Ltd. Everest Bank Ltd. and Bank of Kathmandu Ltd. were established in 2051 BS. Now in Nepal so many commercial banks are established run for smoothly.

Principal of Banking & insurance Sharejung Khadka & Hridhaya Bir Singh

Banking has conic to the present advanced form through various stages. Some sort of banking activities have been carried out since the time immemorial. Traditional forms of banking were traced during the civilization of Greece, Rome and Mesopotamia. As early as 2000 BC as a joint stock bank later in 1844 AD it became the first central bank in the world. The goldsmiths and landlords were the ancient bankers of Nepal as in other countries. They lent money against the deposit of gold, ornament or securities of land. The moneylenders charged high 1933 BS (1876 AD) but it did not carry out all the banking activities. TejarathAdda did not collect deposit form the public but gave loans to employees and public against the bullion. However Nepal Bank Limited was the first and real commercial bank in Nepal, which was established in 1994 BS(1947).

Nepal Rastra Bank, the central bank of Nepal was established in 2013 BS (1955 AD) In 2024 BS an industrial bank namely Nepal Industrial Development Corporation (NIDC) was established. of Nepal Rastra Bank. In 2042 BS Nepal also adopted liberal free economic policy and allowed to establish other joint venture banks under collaboration with foreign banks as well as under private sectors. At Present there are about 15 commercial banks with many branches are operating in Nepal. Finally, a bank is an institution, which deals with money by accepting various types of deposit disbursing loan and rendering other financial services. Since banks are rendering a wide range of services to the People different walks of life, they have become and essential part of modern society.

1.4 Introduction to Agriculture Development Bank Limited

With the main objective of providing institutional credit for enhancing the production and productivity of the agricultural sector in the country, the Agricultural Development Bank, Nepal was established in 1968 under the ADBN Act 1967, as successor to the cooperative Bank. The Land Reform Savings Corporation was merged with ADBN in 1973. Subsequent amendments to the Act empowered the bank to extend credit to small farmers under group liability and expand the scope of financing to promote cottage industries. The amendments also permitted the bank to engage in commercial banking activities for the mobilization of domestic resources.

Agricultural Development Bank Limited (ADBL) is an autonomous organization largely owned by Government of Nepal. The bank has been working as a premier rural credit institution since the last three decades, contributing a more than 67 percent of institutional credit supply in the country. Hence, rural finance is the principal operational area of ADBL. Besides, it has also been executing Small Farmer Development Program (SFDP), the major poverty alleviation program launched in the country. Furthermore, the bank has also been involved in commercial banking operations since 1984.

The enactment of Bank and Financial Institution Ordinance (BAFIO) in February 2004 abolished all Acts related to financial institutions including the ADBN Act, 1967. In line with the BAFIO, ADBL has been incorporated as a public limited company on July 14, 2005. Thus, ADBL operates as a "A" category financial Institution under the legal framework of BAFIO and the Company Act, 2053.

.Corporate Vision:
“To be a Mass-based Complete Bank serving from Urban to Rural”.

MissionStatement:NEW

To deliver comprehensive banking solution strengthening its extensive network.

Enhancing the value: To employees, shareholders, government and customers.                     

World class banking services: Provide world class banking services by achieving excellence in customer service and adopting high

Values Statement: SPIRIT 

Segmented business approach: For risk management and enhancement of efficiency.

Partnership: With all stakeholders including the Government, employees, shareholders and customer.

Innovation: Of business areas and processes for providing Advanced banking services, and enhance competitiveness.

Responsiveness: responding to the changing need of the market/society/business on timely basis.

Integrity: Uphold trustworthiness and business ethics in the business process.

Total banking solutions: To Fulfill the need of all sections of society.

Objectives:
The specific objectives are as follows:

·       To study the entire banking procedures.

·       To examine about the different products and services offered by ADBL.

·       To examine the overall activities of customer service department.

·       To understand the practical implication of academic knowledge.

·        To acquaintance with the overall organizational environment of ADBL.

Shareholding Composition

S.N	Ownership	Percent
1	Government of Nepal	51
2	General Public	49
	Total	100

No. of Staff: 2642 (As of Nov 15, 2013)
No. of computerized branches: 138 
Branches under single computer network: 138
Board of Directors

The Board of Directors is the apex body of the bank. It formulates policies as well as strategies and provides guidance to the management. The Board comprises a total of nine members; four members representing Government of Nepal and four members representing individual shareholders. Besides, one member is nominated by the Board as per the BAFIA. The Board is supported by Audit Committee and Governance Sub- Committee in the area of internal control and good governance respectively.

The day to day operation of the bank is executed by the Chief Executive Officer. The Chief Executive Officer is closely assisted by four Deputy General Managers and 18 Division Chiefs. Moreover, Chief Executive Officer is supported by Assets and Liabilities Management Sub-Committee for various activities related to risk management.

The bank has three-tier organization structure consisting of Head office, Regional offices (ROs) and field offices. Field offices are further categorised into three levels; main branch, branch and sub-branch depending particularly upon their volume of business. The head office is the policy making body at the top, field offices are implementing units at the bottom and ROs with monitoring and supervisory role are in between.

ADBL is also operating a Central Training Institute (CTI) at corporate level in Bode, Bhaktapur under Head Office Structure and five Regional Training Centres (RTCs) with residential facilities in five development regions. The CTI and RTCs conducts training and seminars particularly for enhancing abilities and skills of organizational members

Chairman	Mr. Pramod Kumar Karki Nayabaneshwor, Kathmandu Tel: 01-4471259 (Res.) 01-248752 (Off.)
Member	Mr. Shisir Kumar Dhungana Joint Secretary, Ministry of Finance Tel: 01-4211748 (Off.)
Member	Mr. Ram Prasad Pulami Joint Secretary, Ministry of Agriculture Tel: 01-4211665 (Off.)
Member	Ms. Laxmi Devi Manandhar Samakhusi, Kathmandu Tel: 01-4353768 (Res.)
Member	Mrs. Mira Dhonju  Dhumbarahi, Kathmandu Tel: 01-4438919 (Res.)
Member	Mr. Janak Raj Shah Baijanath-5, Achham Tel: 01-4365001 (Res.)
Member	Mr. ChhetraBahadurSejuwal Chhandannath, Jumla Tel: 01-4314350 (Res.)
Member	Mr. Ramesh Kumar Mahat Samakhusi-29, Kathmandu Tel: 01-4353297 (Res.)
Member	Mr. TejBahadurBudhathoki Baneshwor, Kathmandu Tel: 01-4262690 (Off.)
Company Secretary	Mr.poshan raj lamichhane Tel: 01-4262620 (Off.)

Management Team

 Chief Executive Officer 

Name	Telephone	e-mail
Mr. TejBahadurBudhathoki	4262797,4262690	ceo.adbl@adbl.gov.np

Global Network

Global Correspondent Network Banks Detail

Agricultural Development Bank Ltd., has access to the worldwide correspondent network for fund/remittance transfer, commercial payment, foreign exchange/money markets, letter of credit or any banking business anywhere in the globe. The Standard Settlement Instructions (SSI) dealt with Agricultural Development Bank Limited, Kathmandu, Nepal, is as follows. (Swift Address: ADBLNPKAXXX)

CURRENCY	CORRESPONDING BANKS NAME,  LOCATION AND COUNTRY	Correspondent Bank's Swift Address	Correspondent Nostro Account Number
USD	NEPAL RASTRA BANK, KATHMANDU, NEPAL	NRBLNPKAXXX	1205103/041.000.840
USD	MASHREQ BANK PSC., NEW YORK BRANCH, USA	MSHQUS33XXX	70008653
USD	HABIB AMERICAN BANK., NEW YORK, USA	HANYUS33XXX	20729330
USD	HANA BANK, SEOUL, SOUTH KOREA	HNBNKRSEXXX	06091000106131
AUD	NATIONAL AUSTRALIA BANK LIMITED, MELBORN, AUSTRALIA	NATAAU33032	1803-132543-500
EURO	MASHREQ BANK PSC., LONDON, UK	MSHQGB2LXXX	00011428
GBP	MASHREQ BANK PSC., LONDON, UK	MSHQGB2LXXX	00011417
INR	STANDARD CHARTERED BANK LIMITED,  KALKATTA, INDIA	SCBLINBBXXX	32205019319
INR	HDFC BANK LIMITED , MUMBAI, INDIA	HDFCINBBXXX	00600390000681
INR	ICICI BANK LIMITED, MUMBAI, INDIA	ICICINBBXXX	000405075268
JPY	SUMITOMO MITSUI BANKING CORPORATION, TOKYO, JAPAN	SMBCJPJTXXX	5005
NPR	NEPAL RASTRA BANK, KATHMANDU, NEPAL	NRBLNPKAXXX	1205103/041.000.524

1.5 SWOT Analysis:

None of the organizations is perfect in each and every way. I here are some

weaknesses and threats, which affect the organization’s performance. It may have lots of strength to be proud of but besides with some weakness and threats as well. And the organization does not remain same forever there will be lots of opportunities in order to expand the transactions. So Agriculture Development Bank has also its strength to be proud, some weakness to be

recovered and threats to be faced patiently.

Strength

a). To add its strength. Agriculture Development Bank has vast network system in the nation thus helping customer to transact through bank from place to place. It has branches nationwide which is the highest number of any joint venture bank in Nepal. It is the only bank to operate in most of the rural areas.

b) Agriculture Development Bank is well known for providing highly personalized services toits customers. It provides different services like ATM,

safe deposit locker etc. It has also introduced a number of attractive deposit skills.

d. Human resources in Agriculture Development Bank are well trained and they arededicated to the bank too. Agriculture Development Bank is providing high remuneration and other benefits as well to its staff.

e. Agriculture Development Bank is well supplied with latest technology. Computer does most of banking services. Thus the services of the bank are prompt and accurate. The bank is capable to maintain the standard.

Weakness:

a. The Increase in the number of branches increases the cost operation. Administration expenses for personnel etc. are increased.

b. The political instability in the country can he considered another weakness of the bank.

c. Too much dependency in computers is not considered to be reliable.

d. Agriculture Development Bank pays high interest rates on deposits. For this reason the bank also charges high interest rates on credit, which has bad impact in investment situation in nation.

e. Staff is unwilling to give even required information. It seems that they don’t want to cooperate with once who are not really its customers.

Opportunities

a. A lot of people deposit their fund in this bank due to its skill in attracting people by adopting attractive policies like high interest rate, prompt services,  ATM etc.

b. Staff can perform their work more efficiently with the help of computers. The environment of the bank is sound which helps to enhance its stall bar its better profitability.

c. People in various sectors get employed through this bank, which has highest number of branches among joint venture banks in the nation.

d. Citizens of underdeveloped country like Nepal get the favorable chanceto show their inner skills and talent.

e. The policies of the HMG and NRB rules and regulation always give confidence to the banking sector to uplift the economy of the nation.

Threats

a. Banks must land and invest its fund to parties having good reputation.Otherwise the bank will have to regret later on.

b. Excess government pressure may create irregular banking transaction,which leads to bad reputation of the bank.

c. The economic condition of country is deteriorating.

d. There is increasing number of competitions. Now there are 13 commercial

banks, which include 9 joint venture and 45 finance companies.

e. The bank should be discouraged to open account for the individuals or firms having bad reputation. It May be a threat, which can ruin the bank.

                                              CHAPTER 2

                                      2 PROJECT DESIGN AND STUDY

2.1 Introduction to the study

Bachelor in Business Administration program aims to prepare knowledgeable, skillful, confident, and self-motivated professionals who will be able to perform competitively in the organization of the modern age. Putting aside the traditional and conventional methods of teaching- learning, BBA aims at producing bachelor level graduates of international standards in management education with applied and pragmatic philosophies of acquiring knowledge. So, to acquire practical knowledgewe were given to write a report by the university in any topic.

A project report is a record of any sort of project, whether it is a school project, business project, or research project.  Most commonly, project reports are written to record the beginning, middle and end of specific project events, such as business initiatives or school experiments. A project report can be written about almost any topic, in fields such as management, science, marketing, education, or engineering. However, to fulfill the standardized and formal requirements of teachers or executives, professional project reports must have certain characteristics; these will include specific sections of the project report, which are usually as follows:

      I.         Introduction

    II.         Table of contents

  III.         Main Sections

  IV.         Conclusions

 References

Details are the heart of soul of any effective project report; dates, times, facts, and figures must be used to build credibility. Whether a project report is written about a new housing development, , or an ad campaign's rollout, it should be base quantifiable information that is easy to understand. 
The best project reports will be written according to a formal template, and they will be completely honest reckonings of all of the good and bad things that transpired during the central event's timeline. From the Introduction to the Conclusion, the role of the project report is to provide a factual record of the event that may later be used to make decisions about planning similar events or initiatives in the future; this is one reason why a project report can be a valuable tool in the business world.

Selection of an organization for writing report is no doubt a critical job and requires much of effort from the side of student. With much analysis and understanding of opportunities given to student to learn and grow within reporting period I have chosen the oldest and most experienced bank which has been providing very good learning atmosphere for student i.e. Agriculture Development Bank ltd- the pioneer bank of Nepal and the topic my study is "Customer service and loan activities ofAgriculture Development Bank ltd"

2.2 Statement of problem

Being based on the background stated above, the present study has the following problem:

    I.         Whether the bank is providing quality service or not?

  II.         How is the bank carrying out its loan activities?

III.         To identify the situation of different variables of banking services of Agriculture Development Bank ltd.

IV.         What are the major activities focusing towards the qualitative Customer Service?

2.3 Objective of study

This study generally focuses on customer service activities and loan activities of Agriculture Development Bank ltd. However the specific objectives of this study are as follows:

·      To trace out  uniqueness of the banking services of the branch bank.

·      To know factors of attraction of customer to open account Agriculture Development Bank ltd.

·      To know about the loan activities of the Bank and also obtain the knowledge of the instituation.

2.4   Research Methodology

2.4.1Research Design

As the nature of the data required for the study will be both nature i.e. qualitative as well as quantitative nature .So, the study has been designed both qualitatively as well as quantitatively.

Similarly as the objective of the study is to have theoretical knowledge on customer service and loan activities.  So mainly the study has been designed descriptically, non parametrically and somehow quantitatively.

2.4.2Population and Sample

There are at present about 31 commercial banks in Nepal. As this study is case study centered on ADBL. So, Agriculture Development Bank, main branch Biratnagar is choosen for the study among branches all around Nepal. And no any population and sample is used. And it is purely based on Agriculture Development Bank, main branch Biratnagar.

2.4.3Sources of data

The data required for the study are both primary and secondary data. Primary data are obtained from primary sources and secondary data are obtained from secondary sources.

·      Primary data:-The data collected for the first time are said to be Primary data. Such data provide accurate information. These types of data are obtained from different departments of the bank.

o   Direct personal observations and involvement.

o   Informal meeting with Bank’s member of ADBL Biratnagar, Main Branch.

o   Informal interviews with the customer of Agriculture Development Bank Limited.

                                  

·      Secondary Data:-The primary data for one person can be the secondary data for some others. So, data which are originally collected but obtained from either published sources or unpublished sources are secondary data. These data are obtained from books and internet.

o   Official websites of ADBL and other different websites related to the topic.

o   Books, annual progress report, official publication online and offline, newspaper, brochures.

2.4.4 Data collection technique

The data collection technique used for the study is through field visits which mean visiting different department of the bank, through the use of internet, by studying brochures of bank, newspaper, annual report etc.

2.4.5 Data analysis tool

Analysis of the study is based on content and is analyzed descriptically and some how statistically by making tables.

2.5 Limitation of the study

The eight weeks period of research helped me to maximize my knowledge about the banking procedure with some practical aspects. However there had been some limitation as identified below:

1.    The time span for the study is short to conduct detailed study of organization.

2.    Core information and some vital data were not shared due to privacy issue.

3.    The study may not depict overall banking performance.

4.    Huge amount of work load in the staff created obstacle.

5.    The reliability of data depends upon the information provided by concerned organization.

                                             CHAPTER 3

                            3. DATA ANALYSIS AND INTERPRETATION

3.1Presentation of data

This chapter is the main volume of the field work report. This is a chapter under which collected data and information are presented and analyzed with the help of tables and figures.

3.2 Services provided by Agriculture Development Bank ltd

This subsection describes the various services provided by Agriculture Development Bank ltd, main branch Biratnagar. They can be mentioned as Customer services, loan activities and so on. They are elaborated into following paragraph:

3.2.1Customer Services:

customer service proves to be one of the most important factors governing business. Today business organizations are more customers-focused than ever before since customer satisfaction is a competitive advantage which is sustainable over the long term. The business organizations to create healthy customer relationships should always focus on listening to customers’ expectations, requirements, complaints and needs. Making polite suggestions, delivering promises and taking extra effort such as building an efficient customer service team are the right practices to retain them for a long period. Satisfied customers mean a long term profitable business since they stay loyal to the business.

Customer satisfaction in the banking industry plays a vital role to create a healthy business status being service based industry. In any service based industry customer service is at highest priority. Customer service can be provided by well trained person in planned systematic manner or can be provided by means of well planned self-service. In banking industry customers are more directly linked with the banks’ personnel for any kind of services or products. Therefore, Banks should always focus on training its front desk staffs to provide quality service knowing their expectations and wants.

Theoretical framework of this research is centred to service quality created by satisfied employee to meet up customers’ expectations. The study employs Gap Model of Customer Satisfaction to find out the gap between customers’ perception and expectation, Herzberg two factor theories to find the level of employee satisfaction analysing their different motivational and de-motivational factors, Profit chain Model to show the relationship between satisfied employees and created quality service to meet customers’ expectation and ISO Guideline to show and measure different attributes of customer satisfaction.

The researcher aims to find out different motivational and hygienic factors that keep employees always motivated to create quality service. The customers are satisfied if their expectations meet perception.

·      Customer satisfaction

Customer satisfaction can’t be limited to short term strategy it’s a long term strategy of any firm. It has been increasingly popular due to its helpful attribute towards judgment of the customer preferences and choices. It simplifies the decision maker role and helps to take any major or minor decision to cater customer. (Schnaars, 1991)

When expectation of customers is matched the resultant feeling is satisfaction and when expectation does not match than the resultant feeling is dissatisfaction. Some of the scholar believes that it can also be called as motivation. (Engel et al. 1990)

Customer satisfaction can be improved by strong communication to customer. A firm should know what customer expectation are and implement their expectation to make the customer satisfied. (Customer Satisfaction, 2007) There should be a broad level of surveys, customer feedback collected to random set of people in a frequent interval time. Customer satisfaction is an innovative process as product differentiation and pre-senting it in a unique flavour thus add more value towards the mind of customer.

It is always expensive to make new customers than to keep existing customers. Rust and Zahorik (1993, 193-215) believes that financial implications of attracting new customers may be five times as costly as keeping existing customers. Therefore, it is very important for firms to keep focusing on designing new and standard products to satisfy customers at high level.

The factors that affect customer satisfaction are courteous employees, friendly employees, billing timeliness, helpful employees, knowledgeable employees, billing clarity and service quality, good value, service quality, accuracy in billing, competitive pricing, good value, quick service and billing clarity (Hokanson, 1995, 16). The figure below gives clear image about the factors that has direct effect on customer satisfaction.           

II.Deposit Services:

·      Current Account

ADBL's current account saves you the hassle of carrying cash. Mainly this account is intended for business/corporate houses, this account can be opened from our commercial banking branches throughout the country. This account is non-interest bearing and it comes with a chequebook.you just need to write a cheque whenever and wherever it's convenient.

·      Statement of Transactions:

The bank will provide you a statement of transaction upon your request.

·      Your Account and Cheque Book:

A current account can be opened with a minimum amount decided by the specific branch. Once your account is opened you will receive cheque-book containing 25 personalized cheques. To replace your cheque book once you run out of cheques just present the replacement form at the back of your current cheque book at your home branch and will arrange a new one for you.

·      Our dedicated staff will be happy to help you so that you can start to maximize the benefits of ADBL's current account immediately.

III. Account Opening Procedure

·      Application on the prescribed form

The customer who comes to hank with a desire to open an account in the bank should complete the application from designed in prescribed format. Agriculture Development Bank also has its own The required to fill up the name, address, occupation, nationality etc. about the customer. The form is designed with a declaration that the applicant should accept that he should comply with the banks rule on force from time to time for the operationof the account.

·      Reference /Introduction

The selection of the customer is regarded to be done by the customer very carefully. After being satisfied about the identity of the account opening individual or film, the banker should take person incapable of making a valid contract. In such a case banker does not get any protection under Negotiable Instrument Act and is considered guilty of negligence.

·      Specimen Signature

The bank has Its own specimen signature card which is provided to the customer for putting one or more specimen signatures of him. These cards are indexed and placed in a visa desk in numerical order. These signature specimens are used by the bank bar issue and payment filing into hands of unauthorized persons and also to exclude the chance of replacements of it by fraudulent card.

·      Account Opening Mandate

The customer may authorize the third person to operate tile account for which clearinstruction for operation of the account shall he noted on both account opening form and specimen signature cards. The name and the signature of the mandated must provide the copy of his/her citizenship certificate and must also be presented in the bank.

Account Opening:

1.The account opening form and specimen signature cards are required to be filledup mid submitted I he details in the form shall he checked by the account opening official, signature in the specimen he verified. The proposed account opener must be percent at the time put signature in specimen Signature ear in front of the account opening official

2. After being satisfied with the document and account and account opening from it is placed before the manager for approval. The document required for current accounts are as follows. The following data are needed for account opening:

Personal Account:

a) Personal Identification (Citizenship Certificate and two copies of Photograph)

b) Nominee Declaration

Proprietorship Account:

a) Declaration of sole proprietorship

b) Copy of renewed Registration Certificate

c) Identification paper of account operator(s)

d) Income tax registration/renewal certificate

 Partnership Account:

              a) Letter of partnership duly signed by all partners

              b) Copy of the partnership Agreement

              c) Certified copy of partnership Registration and Renewal

              d) Identification paper of account operator(s)

              e) Income tax registration/renewal certificate

 Account of Corporate Bodies:

              a) Memorandum and Article of Association of the Company

              b) Resolution of Board of Directors to open and operate an account

  c) List of Directors duly signed by respective directors with home 

       address and phone numbers

  d) Certificate of Company Register's Office

  e) Identification paper of account operator(s)

  f) Income tax registration/ renewal certificate

Accounts of Clubs, Societies and Associates (all documents to be duly certified by the charity)

              a) List of Office bearers and Address

              b) Copy of by-laws/ Constitutions

              c) Copy of Resolution to open and operate the Account

              d) Certification of registration and renewal certificate

               f) Identification paper of account operator(s)

Saving Account

 Saving deposit account can be opened in any of our commercial branches. Your interest is calculated and credited to your's saving account on minimum daily balance. Initial deposit ranges are depending upon the branch and it's level. Any balance below minimum amount will be liable to incidental charges as fixed by the bank from time to time. Customer opening this account gets a free cheque book. The bank offers Any Branch Banking facilities (ABBS) to its customer.

·      Transaction Records:

When you open your account you will get a account number to keep track of your saving and transactions. You have to update your passbook by our bank staff at our branch.

·      Account Opening:

You need to bring the following documents to open the saving account.

Personal Account:

I.             Personal Identification (Citizenship Certificate and two copies of 

          Photograph)

      b)       Nominee Declaration

Proprietorship Account:

                a) Declaration of sole proprietorship

                b) Copy of renewed Registration Certificate

                c) Identification paper of account operator(s)

                d) Income tax registration/renewal certificate

Partnership Account:

                a) Letter of partnership duly signed by all partners

                b) Copy of the partnership Agreement

                c) Certified copy of partnership Registration and Renewal

    d) Identification paper of account operator(s)

                e) Income tax registration/renewal certificate

Accounts of Clubs, Societies and Associates (all documents to be duly certified by the charity)

                a) List of Office bearers and Address

                b) Copy of by-laws/ Constitutions

                c) Copy of Resolution to open and operate the Account

                d) Certification of registration and renewal certificate

                f) Identification paper of account operator(s)

 Fixed Deposit

 Features:

a)       Fixed Deposit can be opened with a minimum balance of NRs. 10,000

b)       Payable on maturity

c)       Penal interest is levied on withdrawal of fixed deposit prior to maturity

d)       Interest is payable monthly

e)       Tax is deducted at source from the interest on saving deposit as per the

           income Tax Act, 2058 (2001)

f)        Nomination facility is available

g)       Strict confidentiality is assured

Tenure of Fixed Deposit:

·          Six Months

·          One Year

·          Two Years

·          Above Two Years up to Five Years

        Eligibility:

·          Individual

·          Minors

·          Trust

·          Association

·          Clubs

·          Societies

·          Corporate Offices

Documents:

The copy of the following certified documents has to be submitted while requesting for opening of Account.

A)       Personal Account:

a)       Identification Car in the form of Citizenship

b)       Certificate/ Passport/Other ID/PAN Card

Minors:

Guardianship to verified with related documents

Nominees form:

a)       Photograph of the nominee

b)       Signature of the nominee

Clubs/Societies and Association:

a)       Copy of Registration Certificate

b)       Copy of Bye-Laws

c)       Copy of resolution to open and Operate the Account

d)       List of Members

Corporate Body:

a)       Certificate of Incorporation

b)       Memorandum and Article of Association of the Company

c)       Resolution of Board of Directors to open and operate the Account

d)       Sample of Company Seal

e)       Name of Directors of the Board

Partnership Account:

     a) Certificate of Partnership Registration

     b) Copy of Partnership deed, if any

Proprietorship Account:

     a) Registration Certificate

     b) Identification of Propriter

Among this there are some others account such as:

a)    Sambridhi saving Account

b)    Ba-ama saving Account

c)    Fixed deposit lakhapati Account

IV.Other banking services of ADBL:

1.Automated Teller Machines (ATM):

ADBL  has launched the ATM facility to its account holders to enable fast withdrawal of funds in account holder need not wait long hours for withdrawing money andsign cheques anymore. A simple card with a unique PIN number known only to the account

holder will suffice.Agriculture Development Bank ltd has introduced its ever waited ADBL Debit Card by joining the hands with Smart Choice Technologies (SCT), the first company in Nepal to provide networked ATMs.ADBL Debit Card of Nepal Bank allows its customers to access a vast network of ATMs located in various points in Kathmandu.

2.Tele-banking:

                                     

Telephone banking is another product provided by NABIL bank to its customers.Under this arrangement customer can know the balance of his account through telephone with out human assistance.

Fax:

You can receive faxed confirmation of the following:

·       Payments,

·       Account Balances,

·       Statements,

·       Beneficiary lists and

·       Payment history

3.Draft:

ADBL has launched drafts which is more secure for sellers because the funds are guaranteed by the bank that issued the draft. Banks only issue bank drafts after they’ve taken money from your account or you've handed over cash - so sellers have a better chance of getting paid.

4.Bank Guarantee:

Banks guarantees are written obligations of the issuing bank (ADBL) to pay a sum on to a beneficiary on behalf of its customers in the event that the customers themselves do not pay the beneficiary. Through such guarantee letters, ADBL undertakes responsibilities to provide fund (guarantee amount), following a default by you of your contractual or other obligations.

Letters of Guarantee can be in the form of Bank Guarantees, Performance Bonds, Bid Bonds, Shipping Guarantees, Advance Payment Guarantees, Counter Guarantees etc.

Features and Benefits

·      Secure customers entering into bids, sales contracts, and tenders.

5.Cheque Clearing:

Electronic Cheque Clearing System provides means to electronically transfer cheque images through a secure medium thus completely replacing the traditional physical routine of moving paper-cheques among the banks and clearing house, which result in significant reduction of tedious and time consuming manual process of cheque clearing, both for the banks and for  the customers.

5.Fund transfer:

Agriculture development bank provides the facility of inward and outward transfer of funds through its strong network of branches spread across the country.

6.Safe Deposit Vault:

"The Best Protection For your most Important Valuables"
Your valuables are safely stored in another location other than your home or business...the SAFEST PROTECTION from fire and theft. Agriculture Development Bank offer you safe deposit vault to store items that would cause you to say "if I lose this, I'm in deep trouble." This means important papers like insurance policies, family records such as birth certificates, deeds, titles, mortgages, leases, contracts, bonds, certificates of deposit. 
Other items include jewels, medals, rare stamps and negatives for important photos in case of fire or theft. 

7.ABBS:(ANY BRANCH BANKING SERVICES)

ADBL is proud to announce that all branches are enabled for ABB service. This service is free of charge to our valuable customer. In this banking service, our customer having account with ADBL can access their account from any online ADBL's branch. However the service is provided in two ways: Normal ABB service and Special ABB service.
Normal ABB service allows our customer to deposit, withdraw and remit money from the branches which are online. Where as Special ABB service allows withdrawl facility. For deposit in such accounts requires processing through remit

8.Other Auxiliary services:

Nepal SBI has many other auxiliary services designed to meet the customers’ expectation in high level. The various services such as SMS/Mobile banking have been a service of great benefit to its customers. Customers can check their account transaction, exchange rates and banking hours simply sending SMS through mobile wherever and whenever they want.

V. CREDIT DEPARTMENT:

Agriculture Development Bank Limited has a mission to deliver a good service to everyone. In this scenario, corporate entities cannot be an exception. Hence, Agriculture Development Bank limited Lending is solely targeted to meet the requirements of corporate entities of Nepalese market.

Corporate lending includes both funded and non-funded facilities as per the requirement of corporate entities. Some of the products offered are Overdraft, Demand Loan, Term Loan, and Project Finance and so on. The credit facilities exceeding NPR millions falls under corporate lending. But there are other loan facilities also such as margin loan, house loan, auto loan etc..

Target: Any success driven entrepreneurs who add value to economic growth.

Sectors: Manufacturing units, construction companies/contractors, tourism and travel trade, Handicrafts, traders, wholesaler, retailers, importers/exporters, logistics, education, health, manpower etc.

                                                                            
REMITTANCE SERVICES

*Inward Remittance

  Remitters who are abroad can transfer money payable from ADBL through:

• Western Union Money Transfer Services
• One can remit money within Nepal through ADBL REMIT, starting from August 2008

Bank transfer
Customer can use SWIFT Code for bank transfer.

The SWIFT Code of bank is : ADBLNPKA
(While sending money through SWIFT, A/c No, Name of beneficiary and branch should be mentioned)

*Outward Remittance:

RemittanceADBL has been transferring money (Indian Currency) to major cities of India by issuing draft which is payable either by Standard Chartered Bank or ICICI bank on the request of the customer.

3.2.2Loan activities of Agriculture Development Bank limited

Auto loan:

The bank provides the vehicle loan facilities for the purchase of new vehicle for both commercial and residential purpose. It also provides finance for purchased of used vehicle for both commercial and residential purpose.

Education Loan:

The bank provides the finance to support for the customers education. This finance is provided against the cost of admission and tuition fees, deposit sum, travelling expenses incurred while going abroad for studies, books cost and living expenses.

Foreign Employment Loan:

ADBL provide loan on foreign employment for the period 1-3 years charging interest collateral of land & building.

Residential Loan:

The bank provides the housing loan facilities for the construction of house for both residential and commercial purpose and also for the repair, extension, renovation of existing building.

Agricultural Production Loan:

ADBL, with great pleasure, announces the restarting of agriculture lending to its Clients considering the due importance of developing agriculture sector as it is a predominant contributors of Nepalese economy providing employment to 66% of active population and contributing 38% in GDP. This venture of ADBL is crucial in commercialization of agriculture sector as Government of Nepal has been providing prime focus on raising agriculture production through commercialization involving the grower farmers, processors, traders/marketers and consumers in a commercially viable value chain. In this scenario, ADBL welcomes grower farmers, processors, traders, marketers (wholesalers, retailers) to take advantage of prioritized credit services provided by the bank in various sub-sectors of agriculture as provided below. ADBL is committed to be your business partner towards improving your farming practices, growing your business tocommercial scale, diversifying your business activities adopting value chain development approach of ‘plot to plate’.
Livestock Loan

RBB provides credit service to support the production of milk and milk products, meat and meat products through cattle farming, poultry farming, pig farming, goat raring etc. Credit support for capital expenditure and working capital is extended to the following categories. 

·       Farming: Cattle (Cow, buffalo), poultry (Broilers, layers), pig, goat, sheep

·       Processing: Dairy, slaughter houses, meat processors

·       Marketing: Wholesalers, retailer

 Small & Cottage Industry Loan:

The bank provides loan for various small industries for the development of the country in low interest rate. Cottage industries loan provide to enhance the small business into large business by Financing. This loan is provided small cottage and industry for company, firm, group, organization as well as individuals.

Interest Rate Effective from 2070/7/1 (2013‐OCT‐18)

1 Annual Simple Interest Rate for Deposit

S.N.					Description	Interest Rate %
1					Saving Deposit :
					General Saving			3.00
					Sambriddhi Saving			5.00
					Ba Ama Saving			6.00
					USD Saving Deposit			1.25
					EURO Saving Deposit			1.00
					POUND Saving Deposit			1.00
2					Fixed Deposit :‐
2.1					Corporate :
					Up to 6 Months			6.25
					1 Year			6.50
					Above 1 Year and up to 5 Years			6.75
2.2					Individual :
					Up to 6 Months			6.75
					1 Year			7.00
					Above 1 Year and up to 2 Years			7.25
					Above 2 Year and up to 5 Years			7.50
2.3					AkshyaKosh			7.50
2 Annual Simple Lending Rate for Loan*
						Interest Rate %
S.N.					Industry/Sector	Working			Term Loan
						Capital
1			Agricultural and Forest
1.1			Crop Production & Services			12.00
1.2			Tea/Coffee			12.00			12.00
1.3			Cold Stores &Godown			13.00			13.00
1.4			Livestock			12.00			12.00
1.5			Poultry & Fishery			12.00			12.00
1.6			Tractor						15.50
1.7			Other Agro Tools (Power Tiller,Thresher,Bullocketc)						13.50
1.8			Irrigation			12.00			12.00
1.90			Forestry related Products			12.00			12.00
1.10			Other Agricultural Production & Services			12.00			12.00
2			Mining Related			11.00			11.00
3			Manufacturing Industry
3.1			Agriculture & Forestry Production ( Agro. Industry)
3.1.1			Food & Seed Processing (Packaging & Processing)			12.50			12.50
3.1.2			Agricultural and Forest products			12.50			12.50
3.1.3			Others			12.50			12.50
3.2			Non‐Food Production
			( Handicraft, Textile , Garments , Medicine & Other )			13.00			13.00
4			Construction
4.1			Residential ( Housing )
4.1.1					5 Years				12.00
4.1.2					10 Years				12.50
4.1.3					15 years				13.50
4.2			Non Residential (Commercial)						12.50
4.3			Heavy Construction( Highway, Bridge etc)						12.50
4.4			Demand & Contract Loan						14.50
4.5			Land Development						14.00
4.6			Other constructions						13.50
5			Electricity,Gas and Water
5.1			Hydropower			12.00			12.00
5.2			Bio Gas and Solar			12.50			12.50
5.3			Others			12.50			12.50
6			Metal Products, Machinary& Electronic Equipment & Assemblage			12.50			12.50
7			Transport, Communication and Public Utilities			12.50			12.50
						Interest Rate %
		S.N.		Industry/Sector		Working			Term Loan
						Capital
		8		Wholesaler & Retailer Business
		8.1		Agri. Input / Output Marketing		15.00
		8.2		Hypothecation		14.00
		8.3		Import / Export Trade Loan		11.00
		8.4		Pre‐ Shipment / Post‐Shipment Loan		11.00
		8.5		Trust Receipt Loan		11.00
		8.6		Other Wholesale & Retail Business		14.00
		9		Finance, Insurance and Investment
		9.1		Small Farmer Development Bank		8.50			8.50
		9.2		Small Farmer Cooperatives (SFCL)		10.50			10.50
		9.3		Other Savings & Credit Cooperatives		11.00			11.50
		9.4		Other Financial / Investment Institutions		13.50			13.50
		10		Hotel, Restaurant, Tourism & Entertainment
		10.1		Hotel, Restaurant & Tourism Services		12.50			13.00
		10.2		Entertainment, Recreation, Films		13.50			13.50
		10.3		Others		13.50			13.50
		11		Consumption / Consumer Loan
		11.1		Gold / Silver Loan		14.00
		11.2		Credit Cards		11.00
		11.3		Hire Purchase (Personal Consumption Loan)					12.50
		11.4		Household Loan & Other Consumer Loan		15.00
		11.6		Fixed Deposit Receipt & Securities
		11.6.1		Loan Against Fixed Deposit for own Bank		Existing Rate         Or			Coupon Rate
						Plus 2 whichever is higher
		11.6.2		Loan Against Fixed Deposit for Other Bank			13.00
		11.6.3		Loan Against for Other Securities		Coupon Rate Plus 2
		12		Local Government		12.00
		13		Other Services
		13.1		Hospital/School/College & other services		13.00			13.00
		13.2		Educational Loan		12.50
		13.3		Foreign Employment Loan		14.00			14.00
		14		Other Loans
		14.1		Overdraft Loan ( Individual )		15.00
		14.2		Overdraft Loan ( Institutional )		14.50
		14.3		AOC ( Advance on Credit)		11.00
		14.4		Guarantee Claim Loan		22.00
		14.5		Packing Credit		11.00
		14.6		Others		15.00			15.00

.                 source: Annual report of Bank

 

3.3 Analysis and interpretation:

The purpose of the data analysis and interpretation phase is to transform the data collected into credible evidence about the development of the intervention and its performance. Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation. The process of ensuring customer satisfaction with a product or service. Often, customer service takes place while performing transaction for the customer, such as making a sale or returning an item. Customer service can take the form of an in-person interaction, a phone call, self-service systems, or by other means. Customer Service department is a primary level department that generally deals with customers directly and regularly. This department is basically directed towards providing the surface level assistance to the customers i.e., to provide general information about banking system, product and services provided by the bank. The department is responsible for providing the basic materials like deposit vouchers, cheque book, bank statement, balance certificate, cards.

Customer Service Department is the face of bank. Customer Service Department is the place where customer initially interacts with the bank. Customer service expands client focus to include everything that happens within and around the bank, from the way staff greet clients, to the atmosphere in the waiting room, to the matter in which clients complains are handled. The very first thing that the people seek in the organization is the prompt service and the person at the customer service desk properly handles them. The people at the customer service desk must be ready to sort out every problem at any moment. The customer service division can answer questions, resolve problems, and help you establish new accounts and services, and providing information on products, forms, and publications

The increasing competition in the banking sectors demands more service proliferation, which would satisfy the demand of the customers. Banks and other financial institution are introducing more and more innovative services such as ATM, debit card, internet banking, locker services and various other services for their customers to serve them more efficiently and effectively. Customers seek in organization the prompt service and the person at the customer service desk properly handled them. The people at the customer service desk must be ready to sort out every problem at any moment. A customer is the most important visitor on the business premises and customer is given help in the field of

1.Account Opening

2. Statement Printing

3. Scanning and Photocopy Of Documents

4. Handling Queries.

5. ATM Card Issue

6. Cheque Book Issue

7. Allotment of Account Number

8. Complain Handling

9. Phone Communication Handling

10. Signature Change

11. Receiving the Visitors

12. Updating the Records

13. Dealing with different customer problems

14. Instructing to fill up form for different reasons

15. Filing the Document

16. ABBS

17. SMS banking

18.Dispatch

                                                                  CHAPTER 4

                                                    4. FINDINGS OF THE REPORT

Ø The Reliability dimension of service quality is better as compared to empathy and tangibility. For most services, customer’s perceptions of whether the service has been performed correctly, and not provider-established criteria, are the major determinants of reliability. Customers of the bank hesitate to rely on the bank. Whenever they have a problem, the bank shows sincere interest in solving it but the services are not performed by a certain time as promised. The employees should take this problem seriously and take steps to remove this.

ØAs score for Assurance is at second place after responsiveness, so the customers of ADBL bank are very confident and feel safe while transacting with the bank. Moreover the employees of the bank have proved to be trustworthy. Employees are also educated enough to answer all the questions.

ØThe score of Tangibility dimension of service quality of ADBL bank is the lowest. The service quality factor tangible is defined by whether the physical facilities and materials associated with the service are visually appealing at the bank. These are all factors that customers notice before or upon entering the bank. Customer expectations regarding visual appealing of ADBL is very high. From my study I found that Physical facilities and modern looking equipment are not sufficient in ADBL bank. Respondents were uncertain about the neat appearance of the reception desk employees. So they should work on that and try to fulfill the gap.

ØAccording to my findings, the score of Empathy is not satisfactory but not unsatisfactory also. ADBL bank is unable to give individual attention to its customers and is unable to understand specific needs of its customers. But still bank has taken steps to satisfy its customers by keeping operating hours convenient to its customers and keeping their interest best at heart.

ØIn ADBL bank, the score of Responsivenessis highest so they are focusing on prompt service, employees are willing to help the customers and say the exact time when the services will be performed. Employees at bank give their customers first preference and are always ready to help them. Overall ADBL bank‟s responsiveness dimension of service quality is the highest.

ØAccording to the customer perception, ADBL is highly responsive. Customers are assured while transacting with the bank. They feel that the bank is unable to give them individual attention and its equipments are not modern and sufficient for the bank.

ØThere is not much gap between all the dimensions, this shows that ADBL is a better service provider in all the dimensions i.e. reliability, assurance, tangibility, responsiveness and empathy. As a result of which, the customers are satisfied with the service offered by ADBL.

                                                                         CHAPTER 5

                                         5. CONCLUSION AND RECOMMENDATION

Conclusion:

·      It is very important for any business firm to assess the level of customer satisfaction. High level of satisfaction could translate into profits whereas low level of satisfaction means customers are more likely to shift in favor if competitors.

·      The first main objective of this survey was to find the level of customer satisfaction and as per the findings of this survey; Agricultural Development Bank’s customers are fairly satisfied.

·      The customer satisfaction department of Agricultural Development Bankseemed to be able to satisfy the high number of customers. However, there is a room for improvement.

·      Customers are fairly satisfied with the scheme of loan products of Agricultural Development Bank. Most people are still unknown about the provided scheme or it could be as if the process to get loan from bank is too difficult. The bank should study more about the matter.

·  Customers seem to be very satisfied regarding the deposit product however employee contact relationship seems to be poor. Either the employees may not be well trained to serve customers in right way or time to serve many customers in a day could be the main reason behind the dissatisfied customers.
      Respondents like to bank at Agricultural Development Bankbecause of the convenient locations. This is the fact that Agricultural Development Bankhas many physical outlets and branches at different corner of the city making easier for maximum customers.

·      Another main objective of this survey was to find the level of employee satisfaction. Regarding the participation rate of employees in the survey, staff from the small departments such as regional branches and outlets participated highly giving the survey more reliable since they are directly linked with the customers to provide service in daily basis.

·    Employees of Agricultural Development Bankare not very satisfied with the salary & wages payment system, opportunities of training programs, advancement and growth. However, employees are satisfied at good level regarding the recognition and responsibilities provided to them.

·   Employees are happy to have good co-workers at work and a good guidance from boss. Employees however still wish that they would get enough information about the company’s policy and goals. Researches on several grounds would help to achieve the satisfaction level in high level.

·      The research found out a huge gap between customers’ expectation and employees’ perception. As employees of Nepal SBI were asked about how do customer approach to bank and how do customers react on the provided services and products, high number of respondents were totally unknown about the customers’ reaction. These kind of huge gaps between customers and working staffs create a negative image which is not beneficial for the improvement of service industry. Thus researches to close up these gaps are very essential

·    The deposit of Agriculture Development Bank is in increasing trend. The share of fixed deposit is more than that of savings, current, margin and other deposits in the depositmix of Agriculture Development Bank

·      Agriculture Development Bank is lunching various facilities in all branches of Nepal, so that costumer get facilitated easily and quickly.

·      The trend analysis shows that the deposit of ADBL is in increasing trend. Inaddition to this, the bank is being able to satisfy its customers and in providing higher quality and newer services to them.

Thus, the bank’s performance is effective in profitability and towards thecustomizing, era and may attract more customers.

Recommendations

i) Although Agriculture Development Bank  has a strong financial base and capital structure as well as good market status and reputation in order to attract new customers andincrease deposit collection Agriculture Development Bank  should introduce new schemes.

ii) Customer services should be diversified and should further be accommodated.

iii) Interest rate on deposit should be competitive with other commercial banks.

iv) The bank should aim towards increasing its customers but it must also providethe quality services to the present customers. For this the bank must makeplans and policies keeping customers in mind.

v) Bank should also pay attention towards the priority sector and industrial sectorfor lending loans to develop the economic condition of the country.

vi) Bank should provide more facilities to the staff, it has to provide job

satisfaction, training and should encourage its staff.

 BIBLIOGRAPHY

Agrawal. G.R, “Project Management in Nepal”, M.K Publishors an Distributer,Kathmandu.

Banking Information and Data, Annual Report of Agriculture Development Bank  Ltd

URL: www.adbl.gov.np

URL: www.google.com

URL:WWW.NRB.com