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Organizational Profile and Analysis

1.1 Objective of studying this organization- Kumari Bank Limited It is my pleasure to state that I am associated with Kumari Bank Limited. And as such it is reasonable chose the same organization for my internship period. Currently I am working for central remittance department. However, I have chosen other department as well for my internship period to explore my understanding on other area of banking operation. Currently Kumari Bank launched its new product in market- Kumari Mobile Cash. Hence, with objective of enhancing of interpersonal skill and exposing myself to products and services based on m-technology,I decided to complete my intern period in the department created for this product continuing the service in my department as well at the same time. Hence my internship period is based on two departments one is Central Remittance and the other.

1.2 Overview of the Kumari Bank limited Kumari Bank Limited, came into existence as the fifteenth commercial bank of Nepal by starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an objective of providing competitive and modern banking services in the Nepalese financial market. The bank has paid up capital of Rs. 1,304,935,920.00 of which 70% is contributed from promoters and remaining from public.

Kumari Bank Ltd has been providing wide - range of modern banking services through 28 points of representations located in various urban and semi urban part of the country, 19 outside and 9 inside the valley. The bank is pioneer in providing some of the latest / lucrative banking services like EBanking and SMS Banking services in Nepal. The bank always focus on building sound technology driven internal system to cater the changing needs of the customers that enhance high comfort and value. The adoption of modern Globus Software, developed by Temenos NV, Switzerland and arrangement of centralized data base system enables customer to make highly secured transactions in any branch regardless of having account with particular branch. Similarly the bank has been providing 365 days banking facilities, extended banking hours till 7 PM in the evening, Utility Bill Payment Services, Inward and Outward Remittance services, Online remit Services and various other banking services.

Visa Electron Debit Card, which is accessible in entire VISA linked ATMs (including 23 own ATMs) and

POS (Point of Sale) terminals both in Nepal and India, has also added convenience to the customers. The bank has been able to get recognition as an innovative and fast growing institution striving to enhance customer value and satisfaction by backing transparent business practice, professional management, corporate governance and total quality management as the organizational mission.

The key focus of the bank is always center on serving unfulfilled needs of all classes of customers located in various parts of the country by offering modern and competitive banking products and services in their door step. The bank always prioritizes the priorities of the valued customers.

1.1.1 Vision of the Organization We are customer oriented. Client is always our first priority. Employees have direct input and control over work processes Employees are treated equitably, with respect and good faith. We are transparent in our dealings and conduct.

1.1.2 Mission of the Organization At Kumari, our mission has always been to be the preferred financial partner, by continuing to deliver innovative products and services to our customers, while cultivating an environment that promotes good corporate governance, proactive risk management practices, and corporate social responsibility.

Our mission is achieved through the knowledge and dedication of our people, leading to superior results for our stakeholders, while contributing to our nations financial sector and to its economic welfare

1.3 Organizational structure Organization structure is concerned with establishment of positions and the relationships between positions. Right organization structure is a perquisite of the performance. Basically structure has two dimensions: one horizontal and the other vertical. The horizontal aspects define the basic departmentalization. Vertical aspects of structure relate to ht e creation of hierarchy of superiors and subordinates, leading to the establishment of managerial structure. Taken together, they set the formal structure of the organization.

Both aspects can be seen in Kumari bank. Vertical aspect of structure can been seen from the allocation 10 hierarchy of position starting from Assistant to General Manager considering CEO as professional. Horizontal aspect of the organization can been from the 20 departments of the organization. The bank can be said to have right organization structure to bring the people and the work in a harmonious fashion.

1.4 Product Line

1.4.1Products The product of the Kumari Bank Limited can basically be categorized into Retail banking and Wholesale Banking. 1.4.1.1 Wholesale banking 1.4.1.2 Retail Banking Hire Purchase loan Home loan Education loan Other consumer loans. Loan Against First Class Bank Guarantees Loan Against Marketable Securities Loan against government bond Travel Loans Loan against Deposit of KBL Other Loan Overdraft Working Capital/Short Term Loan Trust Receipt/ Importers Loan Term Loan Export Credit

1.4.2 Services

The services of Kumari Bank can be categorized into Personal Banking and Business Banking. Personal Banking 1. Deposits a. Savings Account b. Fixed Deposit c. Liquid Time Deposit 1. Deposits a. Checking Account b. Business Account c. Time Deposit d. Call Deposit 2. Loan a. Vehicle Loan b. Home Loan c. Consumer Product Financing d. Travel Loans e. Education Loans 2. Loan a. Working Capital Financing b. Term Loan c. Short Term Loan d. Hire Purchase e. Bills Discounting/Purchase f. Export Credit 3. Lockers a. Safe Deposit Lockers 3. Foreign Trade a. Letters of Credit b. Forward Contracts Business Banking

4. Remittance a. Managers Cheque b. Demand Drafts c. Telex Transfers d. Travelers Cheque

c. Bank Guarantees d. Cash Management e. Local Bills Collection f. International Bills Collection g. Clearing 4. Salary Management a. Salary Management 5. Bulk Cash Management a. Managers Cheque b. Demand Drafts c. Telex Transfers d. Travelers Cheque

1.5 Business Volume Analysis Business volume analysis of Kumari Bank Limited includes the analysis of major operational indicators and business scopes such as deposit volume, total risk assets, number of branches, customer bases.

1.5.1 Deposit

Deposit is the life blood of any bank. The volume of deposit determines the degree of a banking operation in terms of lending, investment and other major regulatory requirements which in turn affects the bottom line. The total deposit of the bank has increased to NPR 17,432 million in fiscal year 2066/67, a growth rate of 10.96 % over the figure of F/Y 2065/66. The deposit trend of the bank has been depicted in the bar diagram as under.

Deposits (in Million)

20000 Axis Title 15000 10000 5000 0 Deposits (in Million)

Fiscal Year

Figure: Deposit (in million)