A

SUMMER TRAINING REPORT

ON
“SERVICE QUALITY OF NCC BANK”

SUBMITTED TO:
KURUKSHETRA UNIVERSITY, KURUKSHETRA
IN PARTIAL FULFILLMENT FOR THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION

(SESSION 2015-2018)

Under the Guidance of: Submitted By:

Ms. Abha Aggarwal Munna Kumar Yadav
Assistant Professor BBA 5th Sem.
SDDIMS Roll No. 5873603

SWAMI DEVI DYAL INSTITUTE OF MANAGEMENT STUDIES

BARWALA, PANCHKULA (HARYANA)

1
 CERTIFICATE

This is to certify that Munna Kumar Yadav has completed the summer training entitled
“Service Quality of NCC Bank Ltd.” under my supervision. To the best knowledge, the
report consists of result of the empirical study conducted by the student. In my opinion,
the work is of requisite standard expected from a BBA student. Therefore, I recommend
the same to be sent for evaluation to the university.

RESEARCH GUIDE
PRINCIPAL

2
 DECLARATION

I hereby declare that the research work entitled “Service Quality of NCC Bank” is
original work done by me.
The project is being submitted as a partial fulfillment of the requirements of degree BBA,
Swami Devi Dyal Institute of Management Studies (Affiliated to Kurukshetra University,
Kurukshetra). The contents of this project are based on surveys and research analysis

Signature of Student
Place …………….
Date :…………………..

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 ACKNOWLEDGEMENT

It is really a matter of pleasure for me to get an opportunity to thank all the persons who
contributed directly or indirectly for the successful completion of the project report,
“Service Quality of NCC Bank”.

I wish to express my gratitude to the branch manager Mr. Shatrughan Pd. Sharma of
NCC Bank, for giving mean opportunity to be a part of their esteem organization and
enhance my knowledge by granting permission to do a summer training project. They
provided me with their assistance and support whenever needed, which has been
instrumental in completion of this project. I am thankful to them, for their support and
encouragement throughout the tenure of the project. Also I am thankful to Ms. Abha
Aggarwal from Swami Devi Dyal Institute of Management Studies, Barwala, Panchkula
(Haryana) being a source of support during this training period. Last but not least I am
grateful to all the staff members of NCC Bank for their kind cooperation and help during
the course of my project.

I sincerely thank to all the faculty members and the staff associated for their support
given to me time to time. Also, I would like to thank to all my friends and family
members for their support given to me time to time. I don’t have words to express my
thanks, but still my heart is full of gratitude for the favors received by me from the every
person.

Munna Kumar Yadav

4
 PREFACE

Theoretical knowledge without practical knowledge is of little value. Bachelor of

Business Administration is unique course giving students an opportunity to combine
practical knowledge with the theory and provide an opportunity to learn about the
complexities and difficulties affecting any office routine. Current project is an assignment
for completion of BBA program. I have carried our primary research on the “Service
Quality of NCC Bank.”

The objective of industrial training in this course is to give a perspective about the
organization and functioning of all the areas of management, in an organization. Towards
the accomplishment of this objective our training in a company for at least1 month to get
an extensive training in various functional areas and to have a firsthand experience in
modern office management.

We have a privilege to undergo my summer training in NCC Bank. We spent 45 days and
got extensive exposure of the working of advance and recovery section of the bank.

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 INDEX

CHAPTER CHAPTER NAME PAGE NO.

NO.
i Certificate I
ii Declaration Ii
iii Acknowledgement Iii
iv Preface Iv
1 Introduction 1-29
1.1 Introduction to Banking in Nepal 1-4
1.2 Introduction to NCC Bank 5-23
1.3 Introduction to Service Quality of NCC 24-29
Bank
2 Review of Literature 30-33
3 Research Methodology 34-37
3.1 Objectives of the Study 34
3.2 Nature of Study 34
3.3 Data Collection 34-35
3.4 Importance of Study 35
3.5 Scope of Study 35
3.6 Research Design 36
3.7 Limitation of the Study 37
4 Data Analysis and Interpretation 38-52
5 Findings & Suggestions 53-55
5.1 Findings 53-54
5.2 Suggestions 55
6 Conclusions 56
7 Bibliography 57
Annexure
 Questionnaire 58-61

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1. INTRODUCTION

1.1 INTRODUCTION TO BANKING IN NEPAL

Nepal bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of modern
banking of the country. Nepal bank marks the beginning of a new era in the history of the
modern banking in Nepal. This was established in 1937 A.D. Nepal Bank has been
inaugurated by King Tribhuvan Bir Bikram Shah Dev on 30th Kartik 1994 B.S. Nepal
bank was established as a semi government bank with the authorized capital of Rs.10
million and the paid -up capital of Rs. 892 thousand. Until mid-1940s, only metallic coins
were used as medium of exchange. So the Nepal Government (His Majesty Government
on that time) felt the need of separate institution or body to issue national currencies and
promote financial organization in the country.

Nepal Bank Ltd. remained the only financial institution of the country until the
foundation of Nepal Rastra Bank is 1956 A.D. Due to the absence of the central bank,
Nepal Bank has to play the role of central bank and operate the function of central bank.
Hence, the Nepal Rastra Bank Act 1955 was formulated, which was approved by Nepal
Government accordingly, the Nepal Rastra Bank was established in 1956 A.D. as the
central bank of Nepal. Nepal Rastra Bank makes various guidelines for the banking sector
of the country.

A sound banking system is important for smooth development of banking system. It can
play a key role in the economy. It gathers savings from all over the country and provides
liquidity for industry and trade. In 1957 A.D. Industrial Development Bank was
established to promote the industrialization in Nepal, which was later converted into
Nepal Industrial Development Corporation (NIDC) in 1959 A.D.

Rastrya Banijya Bank was established in 1965 A.D. as the second commercial bank of
Nepal. The financial shapes for these two commercial banks have a tremendous impact on
the economy. That is the reason why these banks still exist in spite of their bad position.

As the agriculture is the basic occupation of major Nepalese, the development of this
sector plays in the prime role in the economy. So, separate Agricultural Development
Bank was established in 1968 A.D. This is the first institution in agricultural financing.

7
For more than two decades, no more banks have been established in the country. After
declaring free economy and privatization policy, the government of Nepal encouraged the
foreign banks for joint venture in Nepal.

Today, the banking sector is more liberalized and modernized and systematic managed.
There are various types of bank working in modern banking system in Nepal. It includes
central, development, commercial, financial, co-operative and Micro Credit (Grameen)
banks. Technology is changing day by day. And changed technology affects the
traditional method of the service of bank.

Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid
Card etc. services are available in banking system in Nepal. It helps both customer and
banks to operate and conduct activities more efficiently and effectively.

For the development of banking system in Nepal, NRB refresh and change in financial
sector policies, regulations and institutional developments in 1980 A.D. Government
emphasized the role of the private sector for the investment in the financial sector. These
policies opened the doors for foreigners to enter into banking sector in Nepal under joint
venture.

Some foreign ventures are also established in Nepal such as Nepal Bangladesh Bank,
Standard Chartered Bank, Nepal Arab Bank, State Bank of India, ICICI Bank, Everest
Bank, Himalayan Bank, Bank of Kathmandu, Nepal Indo-Suez Bank and Nepal Sri Lanka
Merchant Bank etc.

The NRB will classify the institutions into “A” “B” “C” “D” groups on the basis of the
minimum paid-up capital and provide the suitable license to the bank or financial
institution. Group ‘A’ is for commercial bank, ‘B’ for the development bank, ‘C’ for the
financial institution and ‘D’ for the Micro Finance Development Banks.

Generally banks in Nepal are opened 9 am to 3 pm Sunday to Thursday and 9 am to 1 am

on Friday. But nowadays most of banks in Kathmandu are opened throughout the week.

There are 32 commercial banks, 79 development banks, 79 financial companies, 18 micro

credit (Grameen) development banks and 16 saving and credit co-operation(licensed by
Nepal Rastra Bank) are established so far in Nepal. The bank with the largest network in

8
Nepal is The Nepal Bank Ltd. These commercial banks and financial institutions have
played significant roles in creating banking habit among the people, widening area and
business communities and the government in various ways.

Today’s finicky banking customers will settle for nothing less. The customer has come to
realize somewhat belatedly that he is the king. The customer’s choice of one entity over
another as his principles bank is determined by considerations of service quality rather
than any other factor. He wants competitive loan rates but at the same time also wants his
loan or credit card application processed in double quick time. He insists that he be
promptly informed of changes in deposits rates and service charges and he bristles with
customary rage if his bank is slow to redress any grievance he may have. He cherishes
the convenience of impersonal net banking but during his occasional visits to the branch
he also wants the comfort of personalized human interactions and facilities that make his
banking experience pleasurable. In short he wants a bank that cares and provides great
services.

So does NCC bank meet these heightened expectations? What are the customer’s
perceptions of service quality of the banks? Which dimension of service quality of NCC
bank is performing well? To find out answers to these questions I undertook a survey of 2
branches of NCC bank.

Excel Development Bank Limited (EDBL) 9 th AGM held on Poush 26, 2071 had
approved 4:1.0370(25.93%) right shares to their shareholders and now the bank has
announced the book closure date for the same.

The book closure date for 4:1.03 right issues has been set for Poush 28. Only the shares
registered one day ahead of the book closure date i.e. Poush 27 will be eligible for the
right shares.

Excel had earned net profit of Rs 1.73 crore in the first quarter of the current fiscal year
2072/73. Ace Capital Limited has been assigned as the issue manager. Its last traded price
stood at Rs 690 as on December 31, 2015. ICRA Nepal has assigned an “[ICRANP] IPO
Grade 4+”, indicating below-average fundamentals to the proposed rights issue.

9
Financial Institutions are slowly moving from Brick and Mortar (Physical branches) to
click and Brick (E-banking). ATM's are the most popular electronic delivery channel for
banking services in Nepal. Only few customers are using internet banking facilities.
Nepalese financial institutions till date have not faced any kind of electronic fraud or risk.
Banks have basic security tools like firewall, lightening/power surge protection. But it is
found that the some banks are in lack of having regular back up of website information
and E-banking policy. Nepalese banks are using E-banking for their own convenience and
for the purpose of retaining exiting customers. The cost analysis of most of the banks in
Nepal is seems to be either inadequate or not applied due to their narrow space of
business transaction or lack of sufficient tools. No significant correlation was found
between use of E-banking and gender, marital status or salary of customer. However, Use
of E-banking signification association was found with age and education.

A lot of surveys have been done in the past to understand the aspect of customer
satisfaction and to find out the friendly banks. My research is conducted to find our
“SERVICE QUALITY OF NNC BANK”.

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1.2 INTRODUCTION TO NCC BANK LTD.

Nepal Credit & Commerce Bank Ltd. (NCC Bank) formally registered as Nepal - Bank of
Ceylon Ltd. (NBOC), commenced its operation on October 14, 1996 as a Joint Venture
with Bank of Ceylon, Sri Lanka. It was then the first private sector Bank with the largest
authorized capital of NRS.1,000 million. The Head Office of the Bank is located at
Siddhartha Nagar, Rupandehi, the birthplace of LORD BUDDHA, while its Corporate
Office is located at Bagbazar, Kathmandu. The name of the Bank was changed to Nepal
Credit & Commerce Bank Ltd., (NCC Bank) on 10th September, 2002, due to transfer of
shares and management of the Bank from Bank of Ceylon, to Nepalese Promoters.
NCC Bank completed its 20 years of banking services on October 14, 2016 and
recently, entered into a historic merger with four Development Banks – Infrastructure
Development Bank Ltd., Apex Development Bank Ltd., Supreme Development Bank
Ltd. and International Development Bank Ltd. The Bank started its joint transaction from
January 01, 2017 has now become one of the largest private sector commercial bank. At
present NCC provides banking services and facilities to rural and urban areas of the
country through its 96 branches and 61 ATMs scattered all over the country from Far
West to Far East. The Bank has developed corresponding agency relationship with more
than 150 International Banks having worldwide network.

The Bank is using Pumori Plus, the most commonly used software by Nepalese Banks.
The Bank offers Any Branch Banking Service (ABBS) in all 96 branches. Telex and
SWIFT are other modes of communication for efficient and effective transmission of
information. In order to facilitate the customers with state of art technology, Bank is
providing Visa Debit Card facilities. NCC VISA Debit Card can be used in any of the
ATMs and POS machines displaying VISA LOGO for cash withdrawal, balance enquiry
or purchase of goods & Services from various merchants like departmental stores,
hospitals, retail shops etc throughout Nepal and India only. In addition, NCC VISA Debit
Card enables wider access to VISA Card acceptable more than 4,00,000 ATMs and 2.5
Million Point of Sales(POS) terminals in Nepal and India. With NCC VISA Debit Card

11
on can access one's account 24-hours a day, 7 days a week and enjoy greater
conveniences.

BUSINESS FOCUS

NCC Bank’s mission is to be a World-Class Nepalese Bank. The objective is to build

sound customer franchises across distinct business so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank’s risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. NCC Bank’s business philosophy is
based on four core values – Operational Excellence, Customer Focus, Product Leadership
and People.

MISSION STATEMENT OF NCC BANK

 World Class Nepalese Bank.

 Bench marketing against international standards.
 To build sound customer franchises across distinct business
 Best practices in terms of product offerings, technology, service levels , risk
management and audit and compliance

VISION STATEMENT OF NCC BANK

The NCC Bank is committed to maintain the highest level of ethical standards ,
professional integrity and regulatory compliance. NCC Bank’s business philosophy is
based on four course values such as :-

 Operational excellence
 Customer Focus
 Product Leadership
 People

The objective of the NCC Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one- step window for all
his/her requirements. The NCC Bank plus and the investment advisory services programs

12
have been designed keeping in mind needs of customers who seeks distinct financial
solutions, information and advice on various investment avenues.

BUSINESS STRATEGY

 Increasing market share in Nepal’s expanding banking

 Delivering high quality customer service
 Maintaining current high standards for asset quality through disciplined credit risk
management
 Develop innovative products and services that attract targeted customers and
address inefficiencies in the Nepalese financial sector

PROMOTER

NCC Bank is Nepal’s premier housing finance company and enjoys an impeccable track
record in Nepal as well as international markets. Since its inception in 1996, the
corporation has maintained a consistent and healthy growth in its operations to remain a
market leader in mortgages. Its outstanding loan portfolio covers well over a million
dwelling units. NCC Bank has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong market reputation,
large shareholder base and unique consumer franchise, NCC was ideally positioned to
promote a bank in the Nepalese environment.

GLOBAL CONNECTION

NCC Bank has strategic alliance with ICICI Bank, which facilitates our customers to
remit their money to more than 670 locations of India through ICICI Bank branches and
their correspondent Banks in India. Our customers can affect their money transfer to India
either through Speed Transfer Arrangement or through Demand Draft Arrangement.
Under Speed Transfer Arrangement, money can be credited on-line to the beneficiary's
account at more than 400 branches of ICICI Bank, India. Under Demand Draft
Arrangement, the Bank can issue draft payable at more than 670 locations in India. We
are globally connected through various prominent Banks in Asia, Europe and North
America like Mashreq Bank, Standard Chartered Bank, Bank of Ceylon etc. Our services

13
across the globe include remittance, draft arrangement, import and export business,
guarantee etc.

TECHNOLOGY
The Bank is using Pumori Plus, the most commonly used software by Nepalese Banks.
The Bank offers Any Branch Banking Service (ABBS) in all 96 branches. Telex and
SWIFT are other modes of communication for efficient and effective transmission of
information. In order to facilitate the customers with state of art technology, Bank is
providing Visa Debit Card facilities. NCC VISA Debit Card can be used in any of the
ATMs and POS machines displaying VISA LOGO for cash withdrawal, balance enquiry
or purchase of goods & Services from various merchants like departmental stores,
hospitals, retail shops etc throughout Nepal and India only. In addition, NCC VISA Debit
Card enables wider access to VISA Card acceptable more than 4,00,000 ATMs and 2.5
Million Point of Sales(POS) terminals in Nepal and India. With NCC VISA Debit Card
on can access one's account 24-hours a day, 7 days a week and enjoy greater convenience
to facilitate one's banking and financial needs.

MOBILE BANKIN

This Privacy Policy (“Policy”) applies to all Nepal Credit & Commerce Bank’s customers
who have subscribed for Mobile Banking services. The term “Nepal Credit & Commerce
Bank Ltd.” or “we”, “us”, or “our” that may appear in the mobile banking application
distributed, controlled and owned by us refers to Nepal Credit & Commerce Bank. This
Policy describes how our mobile banking application may collect, use and share
information from or about you.

AGREEMENT TO POLICY

By viewing and using the Nepal Credit & Commerce Bank‘s mobile banking application,
your consent to this Policy which includes the consent to disclose and use information
about you in the manner detailed in this Policy. Other privacy policies may also apply in
addition to the terms of this Mobile Privacy Policy, including but not limited to our
Privacy Policy.

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GATHERING USING AND SHARING: INFORMATION THAT WE COLLECT

Information that we may collect about you through mobile banking includes information
that you voluntarily disclose at the time of subscription such as your name, primary a/c
number, alias a/c, mobile number and other contact information; transaction information,
information resulting from your mobile activity in terms of your usage of the subscribed
mobile banking service. We do not gather additional information associated with your
mobile device through cookies and other technologies. We also do not share any of this
information with any other company unless required to do so by law or while handling
any disputes that may arise.

WORKING WITH OTHER COMPANIES

The Mobile Banking Service technology (including the mobile apps) provided by us has
been developed by a third party IT company. However, the entire technology is owned by
Nepal Credit & Commerce Bank Ltd. and all data pertaining to the system is securely
hosted by Nepal Credit & Commerce Bank Ltd.. The third party company has no access
to this data unless authorized by us. At times we may be required to allow the third party
company to gain limited access to the information you provide in order to seek technical
support or in cases of dispute handling. Such cases always and only occur with our
authorization, supervision and presence.

SECURITY MEASURES

We apply several security measures to protect your information. SMS generated by our
Mobile Banking Apps use encryption standards to help ensure that information passes to
Nepal Credit & Commerce Bank Ltd. without being intercepted by third parties. Reply
messages sent by the Mobile Banking use masking features to hide the first few
characters in your a/c numbers. To help prevent misuse of services and authorize access
to your banking information, you are always required to type in your MPIN provided by
the bank. As always, we strongly encourage you to assist us in that effort by not sharing
your MPIN with anyone.

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POLICY UPDATES AND EFFECTIVE DATE

This Policy is subject to change and any changes to this Policy will become effective
when posted on this website. Your use of the application following these changes means
you accept the revised Policy.

The following Services can be obtained from NCC mobile Banking Services

 Account Balance Enquiry.

 Enquiry Account Mini Statement.
 Request Cheque Book.
 Request Account Statement
 Request Banking Hour.
 Request Exchange rate.
 Request PIN Change.
 Fund Transfer.
 Utility Payments

MANAGEMENT

Mr. Upendra Keshari Neupane has been appointed as the Chairman of the Bank with
effect from 10 August 2011 subject to the approval of the Nepal Rastrya Bank of Nepal
and the shareholders. The Managing Director, Mr. Ramesh Raj Aryal, has been a
professional banker for 15 years . The Bank’s Board of Directors is composed of eminent
individuals with a wealth of experience in public policy, administration, industry and
commercial banking. Senior executives representinve NCC are also on the Board.

Senior banking professional with substantial experience in Nepal and abroad head various
businesses and functions and report to the Managing Director. Given the professional
expertise of the management team and the overall focus on recruiting and retaining the
best talent in the industry, the bank believes that its people are a significant competitive
strength.

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QUALITY POLICY

1. SECURITY:

The bank provides long term financial security to their policy. The bank does this
by offering life insurance and pension products.

2. TRUST:

The bank appreciates the trust placed by their policy holders in the bank. Hence,
it will aim to manage their investments very carefully and live up to this trust.

3. INNOVATION: Recognizing the different needs of our customers, the bank

offers a range of innovative products to meet these needs.

4. INTEGRITY

5. CUSTOMER CENTRIC

6. PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”

7. TEAM WORK

8. JOY AND SIMPLICITY

BUSINESS

NCC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments.

WHOLESALE BANKING SERVICES

The bank’s target market ranges from large, blue-chip manufacturing companies in the
Nepalese corporate to small & mid- sized corporate and agri-based businesses. For these
customers, the bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior

17
product delivery / service levels and strong customer orientation, the bank has made
significant inroads into the banking consortia of a number of leading Nepalese corporate
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

RETAIL BANKING SERVICES

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone banking, Net Banking and Mobile
Banking.

The NCC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans Against marketable securities, personal loans for two
wheelers.

It is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investment in electronic form. After
successful launched of NCC VISA Debit Card-Domestic, NCC Bank has also
successfully launched new International VISA Debit Cards effective from Wednesday,
January 1, 2014 (Poush 17, 2070) which are NCC Travel Dollar Card and NCC
International Debit Card in order to give more facilities to customers in relation to card
services for customer satisfaction. NCC Travel Dollar Card and NCC International Debit
Card can be used in any of the ATMs and POS machines displaying VISA Logo for cash
withdrawal, balance enquiry or purchase of goods & services from various merchants like
departmental stores, hospitals, retail shops etc throughout Nepal and Worldwide
countries.NCC Travel Dollar Card is prepaid debit card which can be issued to prepaid
dollar accounts which are opened by bank itself. There is no need to open dollar account
by the customer. The cards issued are valid for a period of one year and shall have to be

18
renewed on expiry. NCC International Debit Card can be issued to both current and
saving dollar accounts. The cards issued are valid for a period of three years and shall
have to be renewed on expiry.

TREASURY

Within the business, the bank has three main product areas – Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in Nepal, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank’s Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.

CAPITAL PLAN

Published for the information of General Public as per the requirement of NRB Circular
No. Bai.Bi.Ni.Bi/Neeti/Paripatra/KaKhaGa/4/072/73 dated 2072/06/07

In NPR Million

S. No. Particulars Fiscal Years

2070/71 2070/71 2071/72 2072/73

Paid up Capital

1 Opening Balance 1,470.00 2,028.60 2,338.93 7,145.77

2 Bonus Shares* 558.60 310.33 1,029.76 977.60

3 Merger/Acquistion 3,777.08

4 Right Shares Issued

5 Further Public Offering

6 Others

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 Total Paid Up Capital 2,028.60 2,338.93 7,145.77 8,123.37

* Bonus Shares for FY 2072-73 includes the combined amount of Bonus Shares including
the Bonus Shares to be declared from the profit of FY 2071-72 by the other merging
partners.

After successful launched of NCC VISA Debit Card-Domestic, NCC Bank has also
successfully launched new International VISA Debit Cards effective from Wednesday,
January 1, 2014 (Poush 17, 2070) which are NCC Travel Dollar Card and NCC
International Debit Card in order to give more facilities to customers in relation to card
services for customer satisfaction. NCC Travel Dollar Card and NCC International Debit
Card can be used in any of the ATMs and POS machines displaying VISA Logo for cash
withdrawal, balance enquiry or purchase of goods & services from various merchants like
departmental stores, hospitals, retail shops etc throughout Nepal and Worldwide
countries.

NCC Travel Dollar Card is prepaid debit card which can be issued to prepaid dollar
accounts which are opened by bank itself. There is no need to open dollar account by the
customer. The cards issued are valid for a period of one year and shall have to be renewed
on expiry.

NCC International Debit Card can be issued to both current and saving dollar accounts.
The cards issued are valid for a period of three years and shall have to be renewed on
expiry.

Features of NCC Travel Dollar Card and NCC International Debit

Card:

 Card of International Brand.

 Can be used as a substitute of Traveler’s Cheque.
 Can be used to purchase goods and services from millions of merchants all over
the world.

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  Can be used to withdraw cash from hundreds and thousands of ATMs all over the
world.
 Round the clock service.
 No hassles of interest, penalty and hidden charges.
 Prompt issuance and most economic charges.
 Secured due to electronic environment.
 Convenient reload (For NCC Travel Dollar Card only)

Eligibility Criteria to apply NCC Travel Dollar Card and NCC

International Debit Card:

NCC Travel Dollar Card:

 People who are traveling outside of Nepal can apply for NCC Travel Dollar Card.
 Valid passport, visa and airline ticket are required to apply for this card.
 Because of its prepaid nature Customer can reload/deposit maximum amount at
their customer – prepaid USD account is as per the eligible criteria prescribed by
Nepal Rastra Bank.

NCC International Debit Card:

 Customers who have opened current dollar account or saving dollar account at
NCC Bank Ltd. can only apply for NCC International Debit Card.
 Maximum Transaction limit for NCC International Debit Card are as prescribed
by Nepal Rastra Bank.
 This Card can be issued to Nepalese citizens as well as Foreign Nationals having
USD account maintained at NCC Bank Ltd. and Nepalese citizens travelling
abroad (other than India), who are eligible to get dollar exchange facility as per
Nepal Rastra Bank.
 Valid Visa and Confirmed Air Ticket are required to issue NCC International
Debit Card and also supplementary NCC International Debit card for travelling
abroad.

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ATM Cash Withdrawal Transaction Limit for both NCC Travel Dollar
Card and NCC International Debit Card:-

S.N Particulars Transaction Limit Transaction Limit

Amount (USD) Amount (USD) in
in Nepal Worldwide Countries
(International)

1 Maximum Cash $ 2,000.00 $ 2,000.00

Withdrawal Amount per
Transaction

2 Maximum Cash Withdrawal $ 2,000.00 $ 2,000.00

Amount per Day

POS Transaction Limit for both NCC Travel Dollar Card and NCC
International Debit Card:-

S.N Particulars Transaction Limit Transaction Limit Amount

Amount (USD) in (USD) in Worldwide
Nepal Countries (International)

1 Maximum Amount per $ 5,000.00 $ 5,000.00

POS Transaction

2 Maximum POS Transaction $ 5,000.00 $ 5,000.00

Amount per Day

Note:-

 Total Daily Count (Purchase+ Cash Transactions): 10 Times a Day applicable to

Nepal And Worldwide Countries for Both NCC Travel Dollar Card and NCC
International Debit Card Transactions.

22
  Both NCC Travel Dollar Card and NCC International Debit Card can be used at
any VISA card Acceptable ATMs and POS machine of Banks & Financial
Institutions in Nepal and Worldwide Countries.
 POS (Point of Sales) is used for purchase of goods and services through the use of
card without any charge.
 NIBL(Nepal Investment Bank Ltd.) is the Principal Member of the VISA through
which Nepal Credit & Commerce Bank Ltd. has got VISA Associate Membership
from VISA and has sharing their Network for Card Transactions.
 NPN (National Payment Network) is a network of NIBL which facilities aspiring
financial institutions to issue & acquire National brand of Debit, Credit & Prepaid
Cards and connecting together of NIBL and its member banks & Financial
Institutions through their financial switching system along with banking host to
facilitate card transaction through ATM & POS for cash withdrawal/balance
enquiry and purchase of goods/ services respectively.
 Commissions/Charges of Both NCC Travel Dollar Card and NCC International
Debit Card can be credited / Debited as provided by the Settlement Bank i.e.
NIBL to ATM or Card commission/charge account as per the requirement by the
card department in reference to agreement between Nepal Credit & Commerce
Bank Ltd. and Nepal Investment Bank Ltd.

DEPOSITS PRODUCTS

Subhalav Plus Bachat Khata

Features:

 Minimum balance Rs. 10,000

 Interest rate 6.50% on monthly basis
 Free NCC VISA Card
 Free internet banking

Insurance:

 Free Medical Insurance upto Rs 10,000*

 Condition as per agreement with Insurance company

23
 Others Available Facilities:

 Locker facility
 Free bill payment service of Nepal Telecom/NCell
 365 days banking and Evening Counter

NCC Subha Lav Bachat Khata

Features:

 Minimum balance Rs. 5,000

 Interest rate 6.50%
 Free NCC VISA Debit Card
 Free internet banking

Insurance:

 Free Medical Insurance upto Rs 10,000

 Condition as per agreement with Insurance company

Other Available Facilities

 Locker facility
 Free bill payment service of Nepal Telecom/NCell
 365 days banking and Evening Counter

Normal Savings Account

Features:

 Minimum Balance Rs 100

 Interest rate 6.00% p.a.
 50% discount on draft issuance commission
 Free NCC VISA Debit card

Insurance

 Free Medical Insurance upto Rs 10,000

 Condition as per agreement with Insurance company

24
Other Available facilities

 Internet banking
 Mobile banking
 Free bill payment service of Nepal Telecom/NCell
 Locker facility
 365 days banking and Evening Counter

NCC Savings Plus

Features:

 Minimum Balance Rs 5000

 Interest rate 6.25% p.a.
 50% discount on Locker facility charge

Insurance

 Free Medical Insurance up to Rs 10,000

 Condition as per agreement with Insurance company

Other Available Facilities

 Internet banking

 Mobile banking

 Free bill payment service of Nepal Telecom/NCell

 NCC VISA Debit card

 365 days banking and Evening Counter

NCC Bal Suraksha Bachat Khata

Eligibility to open account

 Below 16 years of age

25
Features:

 Minimum Balance Zero

 Interest rate 6.25% p.a.

 Free NCC VISA Debit Card

Insurance

 Free Medical Insurance upto Rs 10,000

 Condition as per agreement with Insurance company

Other Available Facilities

 Internet banking

 Mobile banking

 Free bill payment service of Nepal Telecom/NCell

 365 days banking and Evening Counter

NCC Mahila Surakshya Bachat Khata

Eligibility to open account

 16 years of age and above

Features:

 Minimum Balance Rs 100

 Interest rate 6.25% p.a.

 50% discount on Locker Facility charge

 Free NCC VISA Debit Card

Insurance

 Free Medical Insurance upto Rs 10,000*

 Condition as per agreement with Insurance company

26
Other Available Facilities

 Internet banking

 Mobile banking

 Free bill payment service of Nepal Telecom/NCell

 365 days banking and Evening Counter

LOAN PRODUCTS

NCC Home Loan

This product has been structured for part financing accommodation facility for
Nepali individuals having identifiable and stable income source.

Education Loan

This product has been structured for financing the parents of the needy students
intending to pursue higher studies in Nepal as well as abroad.

Term Loan

Term Loan is granted for financing Capital/Fixed Expenses of the project, on going
(expansion of the existing project) and up coming projects (New projects). If the term
loan is approved as a part of the project finance, the bank, normally based on the certified
report of the project under construction, disburses the whole amount of the term loan on
phase basis within the approved limit of the term loan. In case, the Term Loan is provided
for purchase/import of plant, machinery, furniture, equipments etc., the bank may
disburse the whole amount of the approved term loan in the borrower’s checking account.
In both the cases the bank as far as possible makes payment directly to the exporters or
suppliers by debiting the party’s term loan account.

Term loan, by nature is granted for relatively longer period, and are repayable on
installment basis. Term Loan’s are provided for a certain period and shall be repaid in
installments. Though term loan is granted for longer period.

Trust Receipt Loan

27
NCC Krishi & Laghu Udhyami Karja This product has been structured mainly for
fulfilling the financing need (Working Capital as well as Fixed Capital) of Nepalese
people for agriculture, animal, fisheries, Livestock, Bee farming, Cold Storage,
Micro Hydropower Project, Solar Home System, and other prioritized small
agriculture related businesses.as prescribed by NRB in agriculture sector lending.

Hire Purchase Loan

This product is for financing of Commercial Vehicle i.e. Bus, Trucks, Taxi, Jeep,
Microbus, Heavy equipment like excavator, roller, Dozer, etc to be used for the
purpose of public transport or official use by business firm/companies and
repayment of which is dependent on its own earning/business income.

Vehicle Loan

This product is designed to finance individual/organizations intending to acquire

private vehicle.

Purpose of Loan

 To part finance purchase of a brand new vehicles i.e. Car / Van / Jeep
 To part flnance purchase of a second hand vehicles i.e. Car / Van / Jeep

Loan Against Gold

Loan extended against the pledge of gold and gold ornaments as per the pricing and
insurance policy guidelines of the Bank.

NCC Professional Loan

This product has been structured for financing personal financial requirement for
the Nepali professional (Individuals) identifiable and stable source of income'

Short Term Loan (Others)

28
It is an advance granted to the Borrower to meet the borrower’s fixed working capital
requirement, is repayable on periodic installment repayment basis or on lump-sum
repayment basis. Demand Loan once granted will have a debit for the quantum or limit
sanctioned and interest and thereafter credits for repayment.

29
1.3 INTRODUCTION TO SERVICE QUALITY OF NCC
BANK LTD.

In the days of intense competition, the banks are no different from any other customer
marketing company. It has become essential for the service firms in general and bank in
particular to identify what the customer’s requirements are and how those customer
requirements can be met effectively. In the days where product and price differences are
blurred, superior service by the service provider is the only differentiator left before the
banks to attract , retain and partner with the customers. Superior service quality enables a
firm to differentiate itself from its competition, gain a sustainable competitive advantage,
and enhance efficiency. The benefits of service quality include increased customer
satisfaction, improved customer retention, positive word of mouth, reduced staff turnover,
decreased operating costs, enlarged market share, increased profitability, and improved
financial performance. The construct of service quality has therefore been a subject of
great interest to service marketing researchers.

Twenty first century has spread a technological revolutionary wave in India. With
upcoming wireless communication technologies people are becoming more & more
mobile addict. The booming revolution in Information Technology sector has pushed the
India’s telecom market significantly. Since past few years consumers prefer wireless
mode of telephone services to wire line services. Mobility has become an integral part of
customer’s life. India has shown tremendous growth in past few years in terms of cellular
services. As per the survey report conducted by Voice & Data by the end of Feb 2008 the
mobile subscribers number has reached to 246.6 mn compared to wire line services,
which is only 40 mn. in numbers1. Invention of Cell phones is a major improvement over
the telecommunications technology of the past, and it has now become an essential
commodity in today’s busy life. Cell phones have become the necessity in today’s
competitive environment to meet the emerging global economy. This research study
focuses on the service quality of cellular mobile services in Pune & Pimpri-Chinchwad
area.

Service quality has been defined by various experts in various ways as: ‘Service Quality
is the difference between customers’ expectations for service performance prior to the
service encounter and their perceptions of the service received.’ According to Geffen,

30
“Service quality is the subjective comparison that customers make between the qualities
of service that they want to receive and what they actually get.” Parasuraman says , “
Service Quality is determined by the differences between customer’s expectations of
services provider’s performance and their evaluation of the services they received.”

Service quality is the delivery of excellent or superior service relative to customer

expectations. Service quality is recognized as a multidimensional construct. While the
number of dimensions often varies from researcher to researcher, there is some consensus
that service quality consists of three primary aspects: outcome quality, interaction quality,
and physical service environment quality. Outcome quality refers to the customer’s
assessment of the core service which is the prime motivating factor for obtaining the
services (e.g. money received from ATM). Interaction quality refers to the customer’s
assessment of the service delivery process, which is typically rendered via a physical
interface between the service provider, in person, or via technical equipment, and the
customer . It includes for instance the consumer’s evaluation of the attitude of the service
providing staff. The physical service environment quality dimension refers to the
consumer’s evaluation of any tangible aspect associate with the facilities or equipment
that service is provided in/with. It includes for example the physical conditions of an
ATM machines.

The most popular dimensions of service quality – features five dimensions are as under:

 Tangibles
 Reliability
 Responsiveness
 Empathy
 Assurance

The tangibles dimension corresponds to the service outcomes aspect, and the remaining
three represent aspects of interaction quality. Both the costs and the revenue of firms are
affected by repeat purchases, positive word-of –mouth recommendation, and customer
feedback. Moreover, there is strong evidence that service quality has either direct
influences on the behavioral intentions of customer and/or an indirect influence on such
intentions, mediated through customer satisfaction.

31
RATER is an instrument that might be used to define and measure banking service
quality and to create useful quality assessment tools.

The RATER may finally provide the following benefits to the NCC Bank:

1. It is the first approach to add and mix the customers “religious beliefs and
cultural values with other quality dimensions.”
2. It provides for multi- faced analysis of customer satisfaction.
3. It links quality with customers “satisfaction and service encounter.
4. It provides information at several levels, already organized into meaningful
groupings.
5. It is a proven approach, which results in usable answers to meet customers’
needs.
6. It is empirically grounded, systematic and well documented.
Banks managers can use the RATER model and its dimensions first to identify
the following issues:

32
 RESPONSIVENESS

TANGIBILITY RELIABILITY

EMPATHY ASSURANCE

TANGIBILITY:

This dimension deal with modern looking equipment’s and visual appealing parts of
banks.

RELIABILITY:

This dimension has a direct positive effect on perceived service quality and customer
satisfaction in banking institutions. Banks must provide error free service and secure
online transactions to make customers feel comfortable.

33
RESPONSIVENESS:

Customers expect that the banks must respond their inquiry promptly. Responsiveness
describes how often a bank voluntarily provides services that are important to its
customers. Researchers examining the responsiveness of banking services have highlight
the importance of perceived service quality and customer satisfaction.

ASSURANCE:

Customer expects that the bank must be secured and the behavior of the employees must
be encouraging.

EMPATHY:

Individual attention, customized service and convenient banking hours are very much
important in today’s service.

In order to achieve better understanding of service quality in banking sector, the

proposed five service quality dimensions are conceptualized to illustrate the overall
service quality of the banking in relation to customers’ and provides perspective.

Banking was in the sector featuring medium goods and higher customer producer
interactions, since in banking, consumers and service providers interact personally and
the use of goods is at medium level. Hence, in banking, where there are high customer-
producer interactions, the quality of service is determined to a large extent by the skills
and attitudes of people producing the service.

In the case of services, because customers are often either direct observers of the
production process or active participants, how the process is performed also has a strong
influence on the overall impression of the quality of service. A well performed service
encounter may even overcome the negative impression caused by poor technical quality
as well as generate positive word-of –mouth, particularly if customers can see that
employees have worked very hard to satisfy them in the face of problems outside their
control. Employees are part of the process, which connects with the customer at the point
of sale, and hence employees remain the key to success at these service encounters or
“moments of truth”. It is these encounters with customers during a service that are the
most important of overall customer satisfaction, and a customer’s experience with the
service will be defined by the brief experience with the firm’s personnel and the firm’s

34
system. The rudeness of the bank’s customer service representative, the abruptness of
employees at the teller counter, or the lack of interest of the person at the check deposit
counter can alter one’s overall attitude towards the service, perhaps even reversing the
impression caused by high technical quality.

Another important service quality factor, competence, is defined by whether the bank
performs the service right the first time, whether the employees of the bank tell customers
exactly when services will be performed, whether the bank lives up to its promises,
whether customers feel safe in their transactions with the bank and whether employees
show a sincere interest in solving the customers” problems. In short, this dimension is
related to the banks “ability to perform the promised service accurately and dependably.
Performing the service dependably and accurately is the heart of service marketing
excellence. When a company performs a service carelessly, when it makes avoidable
mistakes, and when it fails to deliver on promises made to attract customers, it shakes
customers “confidence in its capabilities and undermines its chances of earning a
reputation for service excellence.

It is very important to do the service right the first time. In case a service problem does
crop up, by resolving the problem the customer’s satisfaction, the company can
significantly improve customer retention. However, companies fare best when they
prevent service problems altogether and fare worst when service problems occur and the
company either ignores them or does not resolve them to the customer’s satisfaction.

Performing the service accurately is perhaps the most important factor in service quality
excellence. The cost of performing the service inaccurately includes not only the cost of
redoing the service but also the cost associated with negative word-of –mouth generated
by displeased customers. In case of services, the factory is the field. Again, services are
intangible and hence the criteria for flawless services are more subjective than the criteria
for defect-free tangible goods. Hence 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.

35
2. REVIEW OF LITERATURE

The present study is accordingly, devoted to a detailed probe into the retail banking in
Nepal. It also focuses to make a comparative study, on the basis of quality dimensions,
between public sector banks and private sector banks. The study has get its scope to
evaluate the nature, prospects and challenges as well as organization and working of retail
banking in India. Before embarking upon the actual conduct of the study, a survey of
available and pertinent published work on the subject of this study is made in order to
have an insight into the depth of retail banking and also the specific aspects covered in the
work. The Review of Literature presented below recounts the work so far done in the
field of present study, the nature of the work, the aspects dealt with as well as brief
outcome emerging from the studies.

1.Bayel & Janalgie (1994) had set their goals of services quality dimensions in Retail
Banking. First the study investigates & identifies the services quality dimensions
pertaining to financial services. Secondly, it examines the relationship between perception
accorded to these dimensions & the overall attitude towards the banking. Thirdly, it
examines the important discrimination in service quality factors among the different
group of banks by paired comparison.

2.Rober Johnston (1997) in his study entitled as, “Identifying the critical determinants of
service quality in retail banking: importance and effects”, focused on the categories of the
quality factors in terms of their relative importance and their effect on satisfaction and
dissatisfaction. The study is based on an analysis of over 200 customers in the UK
banking industry and 100 interviewers. The study suggests that increasing the speed of
processing information, delighting customers, such as improving the reliability of
equipment, will lessen dissatisfaction rather than delight customer.

3.Frances X. Frei (1999) in the article entitled as, “Process variants as a Determinant of
Bank Performance: Evidence from the retail banking study” explains the relation between
retail banks branch based processes and financial performance. There are 11 processes
included in this study which are present the bulk of activities performed in a typical retail
branch (ego opening checking accounts). The findings of this study are that the financial
performances of banks that perform better across these processes tend to be better than
that of other banks.

36
4.Applied Communicating Inc. (ACI) ( 2003) in the study entitled as , “Retail Banks
Require Enhanced System as the Industry Changes” explores the challenges that retail
banks must overcome with innovative IT systems. In today’s fast paced technological
age, consumer and corporate customers expect faster execution of transaction. The
challenge for the bank IT groups is to ensure how their system can cope with the
voluminous transaction without increase in per transaction processing cost. The article
discussed managing electronic funds, prepaid by mobile banking technologies & ATM.

5.Temu Santonen (2004) in the article entitled as, “Price Sensitivity as an Indicator of
Customer Defection in Retail Banking” analysis different dimensions of perceived service
loyalty, including price stability, and explains the customer defection in retail banking in
Finland. The study find out that the growth of the body of knowledge regarding customer
loyalty & price strategies in retail banking is vital since price competition is becoming
increasingly wide spread. The study also implied that in retail banks with a greater than
average about of price sensitivity customers will lose most in a scenario of aggressive
price offers; loyal customers are receptive to tempting marketing information. The
willingness to acquire information is strongly related to customer defection and banks
should prepare solid counter attacks, when substantially lower price based rivals enters
into the markets.

6.Sudhir (2005) in his study entitled as, “Growth Pattern of Retail Banking” emphasizes
that existing potential of Retail Banking was untapped in rural and semi- rural areas and
that untapped clientele provided a good and vast opportunity for growth in this segment.

7.Prssanta Kumar Padhy (2006) in his study entitled as, “Innovative Service Quality in
the Banking Sector: As Assessment Based On SERVQUAL Measures” focused on the
critical factors to determine service quality in the banking sector by using both traditional
and modifying SERVQUAL measures which could be used as a basis for bankers and
researchers in differentiating the good and poor quality of services offered by banks.

8.S. Venkata Seshaiah & Vunyale Narender (2007) in their study entitled as, “ Factors
Affecting Customer’s Choice of Retail Banking” , have identified various factors
affecting customer’s choice and study consumer behavior with respect to the people’s
choice of retail banks. In this study efforts have been made to go deep into the
psychology of the customer’s loyalty. Through a survey is different factors have been
identified (1) Safety of deposits (2) Size and Strength

37
(3) Accuracy (4) General Survey (5)Speed of delivery (6)Proximity (7) Security of
Environment (8)Cordiality of staff (9) Price & services charges (10) Product Packaging
(11) General Public Impression (12) Peer Group Impression (13) Face Lift Structural (14)
Friendship with Staff (15) Advertising & Publicity. The findings showed that retail
banking must reorganize their activities to achieve their corporate mission through
customer orientation.

9.Smith Ramachandran (2008) in this paper entitled as, “ Customer Management in

Retail Banking: An Overview” studies the concept of retail banking and it is becoming
customer –driven. The study focused on the role of Information Technology in the growth
and future of Retail Banking. The issues and operational challenges like customer
satisfaction and retention, customer acquisition, competitive pressure to deliver the new
product & services rapidly to market are highlighted. The study is discussed the
importance of and the growing need for Customer Retention Management.

10.R.K. Uppal (2009)in the study entitled as , “Customer Service in Indian Commercial
Banks : An empirical study” describes that in the emerging competitive environment and
IT era ,with little or no distinction in the product offering , it is the speed of enduring
service that sets apart one bank from another . Prompt service is equated with quality
service .Time is a major factor which affects the quality service and that is why they ate
becoming more popular.

11.H.Emari & S. Iranzadeh (2010) in the study entitled as, “Determining the Dimension
of Service Quality in Banking Industry: Examining the Gronroos’s Model in Iran”, was
to determine the dimensions of service quality in the banking industry of Iran. The study
empirically examines the European perspective (i.e.Gronroo’s Model) suggesting that
service quality consists of three dimensions, technical, functional and image. This
research is an applied research and the results of the study showed that in case of a
banking service the overall service quality is influenced more by a consumer’s perception
of the technical quality than functional quality.

12.H.Emari etal (2011)- The main objective of this research was to determine the
dimensions of service quality in the banking industry of Iran. For this the study
empirically examined the European perspective (i.e., Gronroos’s model) suggesting that
service quality consists of three dimensions, technical, functional and image. The results

38
from a banking service sample revealed that the overall service quality is identified more
by a consumer’s perception of technical quality than functional quality

13.Kailash M (2012)- The paper compares public and private sector banks in Vijayawada
city using SERVQUAL model. The findings revealed that private sector banks have good
services to customers and they retained customers by providing better facilities. The study
finds out importance of new products and services for banks for retaining customers.

39
3. RESEARCH METHODOLOGY

Research is an original contribution of existing stock of knowledge making for its

advancement search of knowledge through objective and systematic method of finding
solution to problem of research success of any project to getting effective result depends
on research method used by the researchers.

3.1 OBJECTIVES OF STUDY

The objective of the study is as follows:

 To examine the essential dimensions of service quality i.e. RATER- Reliability,

Assurance, Tangibles, Empathy and Responsiveness of NCC Bank and its effect
on customer’s satisfaction.
 To know which service quality dimension of the bank is performing well.
 To identify which dimension of service quality needs improvement so that the
quality of service of NCC Bank is enhanced.

3.2 NATURE OF STUDY

 Intangibility: A physical product is visible and concrete.

 Inseparability: Personal services cannot be separated from the individual.

 Heterogeneity (or variability): Services involve people, and people are all
different.

 Pricing of services.

 Direct channel.

3.3 DATA COLLECTION

Primary Data :

The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the bank at two branches were approached to fill up the questionnaires. The
questionnaires contain 15 questions which reflect on the type and quality of services
provided by the bank to the customers. The response of the customer and is recorded on a

40
grand scale of strongly disagree, disagree, uncertain, agree and strongly agree for each
question. The filled up information was later analyzed to obtain the required
interpretation and the findings.

Secondary Data:

In order to have a proper understanding of the service quality of bank a depth study was
dome from the various sources such as books, a lot of data is also collected from the
official websites of the banks and the articles from various search engines like Google,
Yahoo search and answers.com.

3.4 IMPORTANCE OF STUDY

 The study would try to throw some insights into the existing services provided by
the banks, perceptions and the actual service quality of the bank.
 The results of the study would be able to recognize the lacunae in the system and
thus, provide key areas where improvement is required for better performance and
success ratio.
 In the days of intense competition, superior service is the only differentiator left
before that banks to attract, retain and partner with the customers.
 Superior service quality enables a firm to differentiate itself from its competition,
gain a sustainable competitive advantage and enhance efficiency.

3.5 SCOPE OF STUDY

The scope of this research is to identify the service quality of NCC Bank.

 To provide loans to public sector/private sector employees to construct residential

accommodation for their employees.
 To mobilize insurance linked long-term saving from the public to deploy such
funds in long-term finance in the housing sector.
 To facilitate approval of builders in advance and offer them construction finance
to enhance customer servicing with a real estate market information.
 To finance mainly low and middle income group of people to purchase/construct a
single family dwelling unit primarily for self-occupation.
 Granting loans to the cooperative sector for housing their employees.

41
3.6 RESEARCH DESIGN

The research design is exploratory till identification of service quality parameters. Later it
becomes descriptive when it comes to evaluating customer perception of service quality
of the banks.

Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studied. Descriptive research
answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, descriptive research cannot be used to create a
causal relationship, where one variable affects another. In other words, descriptive
research can be said to have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical calculations. Often
the best approach, prior to writing descriptive research, is to conduct a survey
investigation. Qualitative research often has the aim of description and researchers may
follow-up with examinations of why the observations exist and what the implications of
the findings are

RESEARCH SAMPLE

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.

 Sampling Units: Customers of NCC Bank

 Sample Technique: Random Sampling
 Research Instrument: Structured Questionnaire
 Contact Method: Personal Interview

SAMPLE SIZE:

The work is a case of NCC Bank, one of the best banks of Nepalese banking industry
together representing over 10 per cent of the market share of Nepalese banking space.

42
The survey was conducted in the city of Janakpur with two branches of NCC Bank, with
5 customers as respondent.

DATA COLLECTION TOOL

1. Strongly disagree
2. Disagree
3. Neither agree nor disagree
4. Agree
5. Strongly agree

Liker scaling is a bipolar scaling method, measuring either positive or negative response
to a statement. The questionnaire consists of two parts. The first part consists of three
questions concerning the demographic information of the respondent such as the name,
age, educational qualifications and income. The second part consisting of 12 questions
exploring the respondent’s perception about the service quality of NCC Bank. For
evaluation of service quality of NCC Bank service quality dimension of reliability,
tangibility, empathy, assurance and responsiveness is used in order to evaluate the actual
service quality of NCC Bank.

3.7 LIMITATIONS OF THE STUDY

The limitations of the strategy are as follows:

 The study is only for the NCC Bank confined to a particular location and very
small sample of respondents. Hence the findings cannot be treated as
representative of the entire banking industry
 The study can also not be generalized for public and private sector banks of the
country
 Respondents may bias answers for the required data. Some of the respondents did
not like to respond
 Respondents tried to escape some statements by simply answering “neither agree
nor disagree” to most of the statements. This was one of the most important
limitations faced, as it was difficult to analyses and come at a right conclusion.
 In our study we have included 50 customers of the bank because of time limit.

43
4. DATA ANALYSIS AND INTERPRETATION

Data has been represented through: Pie Charts:

After the data has been collected, it has been analyzed in the short form that it has been
converted with the help of coding, tabulation and drawing various graphs.

Question-1 Are physical features of banks visually appealing?

SCALE FREQUENCY PERCENTAGE CUMULATIVE
(%) PERCENTAGE
Strongly Disagree 5 10 10
Disagree 25 50 60
Uncertain 16 32 92
Agree 4 8 100
Total 50 100

Percentage

8% 10%

Strongly Disagree
Disagree
32%
Uncertain
Agree
50%

INTERPRETATION

NCC Bank has modern-looking and hi-tech equipment’s. Here analysis show that most of
the respondents disagree with this statement. Among the total respondents 10% strongly
disagreed, 50 % disagreed, 32 % were and 8 % agreed.

44
Question-2 Are physical features of banks visually appealing?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

(%) PERCENTAGE
Disagree 4 8 8

Uncertain 29 58 66
Agree 17 34 100
Total 50 100

Percentage

8%

34%
Disagree
Uncertain
Agree

58%

INTERPRETATION

NCC Bank’s physical facilities are visually appealing. This means 58 % people were
uncertain about this statement. Out of the total respondents only 4% disagreed and no one
strongly agreed or disagreed with this statement. 17% people agreed that NCC Bank’s
physical facilities are visually appealing.

45
Question-3 Are reception desk of employees neat appearing?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

(%) PERCENTAGE

Disagree 5 10 10
Uncertain 21 42 52
Agree 18 36 88
Strongly Agree 6 12 100
Total 50 100

Percentage

12% 10%

Disagree
Uncertain
Agree
36% 42% Strongly Agree

INTERPRETATION

NCC Bank’s employees appear neat. This analysis shows that 10% respondents disagree,
42 % uncertain, 36 % agree and 12 % strongly agreed.

46
Question-4 Are materials associated with the service (such as pamphlets
or statements) visually appealing?
SCALE FREQUENCY PERCENTAGE CUMULATIVE
(%) PERCENTAGE
Disagree 7 14 14
Uncertain 22 44 58
Agree 18 36 94
Strongly Agree 3 6 100
Total 50 100

Percentage

6%
14%

Disagree
Uncertain
36%
Agree
Strongly Agree
44%

INTERPRETATION

Materials associated with the service are visually appealing at NCC Bank. Here 36 %
respondents agreed with statement and 6% strongly agreed with this statement. 44% were
that is most and 14 % disagreed.

47
Question-5 Does employees of bank shows their interest to solve the
problems of customers?
SCALE FREQUENCY PERCENTAGE CUMULATIVE
(%) PERCENTAGE

Disagree 3 6 6
Uncertain 14 28 34
Agree 26 52 86
Strongly Agree 7 14 100
Total 50 100

Percentage

6%
14%

Disagree
28%
Uncertain
Agree
Strongly Agree

52%

INTERPRETATION

When you have a problem, NCC Bank shows increase interest in solving it. After
analyzing this statement 52% respondents agreed, 28 % uncertain, 14% respondents
strongly and 6 % were committed with disagreed.

48
Question-6 Are you agree that bank have insists on error free records?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

(%) PERCENTAGE

Strongly Disagree 2 4 4
Disagree 8 16 20
Uncertain 17 34 54
Agree 17 34 88
Strongly Agree 6 12 100
50 100

Percentage

4%
12%
16%
Strongly Disagree
Disagree
Uncertain
34% Agree
Strongly Agree
34%

INTERPRETATION

Total sample size was 100%. Here analysis shows that among the total respondents 4%
strongly disagree, 16% disagree, 34% uncertain, 34% agree and 12% strongly agreed

49
Question-7 Are you satisfied with the service provided by the bank to
the customers?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

(%) PERCENTAGE

Disagree 5 10 10
Uncertain 10 20 30
Agree 23 46 76
Strongly Agree 12 24 100
Total 50 100

Percentage

10%
24%
Disagree
20%
Uncertain
Agree
Strongly Agree

46%

INTERPRETATION

Bank insists on error free records. NCC Bank has proved from my analysis that it surely
insist on error free records as 46 % respondents agreed with this statement and 24 %
strongly agreed. Only 10 % respondents disagreed and no one strongly disagreed.

50
Question- 8 Are employees in the bank give you prompt services?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

(%) PERCENTAGE

Disagree 5 10 10
Uncertain 16 32 42
Agree 27 54 96
Strongly Agree 2 4 100
Total 50 100

Percentage

4% 10%

Disagree
Uncertain
32% Agree
54% Strongly Agree

INTERPRETATION

Most of the respondents agreed with this statement. Analysis shows that 10% of
respondents disagreed, 32% Uncertain, 54% of respondents agreed and 4% of
respondents strongly agreed.

51
Question-9 Are employees in the bank always willing to help you?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

(%) PERCENTAGE

Uncertain 12 24 24
Agree 29 58 82
Strongly Agree 9 18 100
Total 50 100

Percentage

18%
24%

Uncertain
Agree
Strongly Agree

58%

INTERPRETATION

Employees in NCC Bank are willing to help you. With this statement 58% of respondents
agreed, 18% of respondents strongly agreed and 24% of respondents uncertain.

52
Question-10 Are you satisfied with the response service of the bank?

SCALE FREQUENCY PERCENTAGE CUMULUTATIVE

(%) PERCENTAGE

Disagree 1 2 2
Uncertain 11 22 24
Agree 27 54 78
Strongly Agree 11 22 100
Total 50 100

Percentage

22%
22%
Disagree
Uncertain
Agree
Strongly Agree

54%

INTERPRETATION

Employees in NCC Bank Ltd. are never too busy to respond to your request. Here’s
analysis 54% of respondents agreed, 22% of respondents strongly agreed, 22% of
respondents uncertain and 2% of respondents disagreed.

53
Question-11 Do you feel safe in your transactions with the bank?

SCALE FREQUENCY PERCENTAGE CUMULATIVE

(%) PERCENTAGE

Disagree 4 8 8
Uncertain 13 26 34

Agree 28 56 90
Strongly Agree 5 10 100
Total 50 100

Percentage

10% 8%

Disagree
26%
Uncertain
Agree
Strongly Agree

56%

INTERPRETATIO

The employees of the bank are trustworthy. Here’s show 56% respondents agreed that
employees at NCC Bank are trustworthy. 26 % respondents were and 8 % respondents
disagreed with this statement.

54
Question-12 Are behavior of employees in the bank instills confidence
on you?
SCALE FREQUENCY PERCENTAGE CUMULATIVE
(%) PERCENTAGE

Disagree 28 56 56

Uncertain 4 8 64

Agree 13 26 90

Strongly Agree 5 10 100

Total 50 100

Percentage

10%

Disagree
26% Uncertain
Agree
56%
Strongly Agree

8%

INTERPRETATION

The behavior of employees in NCC Bank instills confidence in you. Here analysis shows
that most of the people disagreed. Among the total respondents 56 % disagreed, 26 %
agreed and 10 % strongly agreed. There was no respondent who strongly disagreed.

55
Question-13 Are behavior of employees in the bank instills confidence
on you?
SCALE FREQUENCY PERCENTAGE CUMULATIVE
(%) PERCENTAGE

Disagree 5 10 10
Uncertain 16 32 42
Agree 23 46 88
Strongly Agree 6 12 100
Total 50 100

Percentage

12% 10%

Disagree
Uncertain
32% Agree
Strongly Agree
46%

INTERPRETATION

With this statement most of the respondents agreed. Among the total respondents 46 %
agreed with this statement and 12% strongly agreed. 32% respondents were and 10 %
respondents disagreed. But there no one who strongly disagreed.

56
Question-14 Are employees in the bank having the knowledge to answer
your questions?
SCALE FREQUENCY PERCENTAGE CUMULATIVE
(%) PERCENTAGE

Disagree 2 4 4

Uncertain 9 18 22

Agree 26 52 74

Strongly Agree 13 26 100

Total 50 100

Percentage

4%

26% 18%

Disagree
Uncertain
Agree
Strongly Agree

52%

INTERPRETATION

52 % respondents agreed that employees of NCC Bank have complete knowledge to

answer their questions. 26 % respondents strongly agreed to this statement and only 4 %
disagreed. 18 % neither agreed nor disagreed.

57
Question-15 Which is the most preferable service use by the customers
of NCC Bank Ltd.?
SCALE FREQUENCY PERCENTAGE CUMULATIVE
(%) PERCENTAGE
Mobile Banking 18 36 36
Internet Banking 12 24 60
Debit Cards 10 20 80
Tele Messages 10 20 100
Total 50 100

Percentage

20%

36% Mobile Banking

Internet Banking
Debit Cards
20%
Tele Message

24%

INTERPRETATION

Out of 100 % respondents 36 % using mobile banking, 24 % using internet banking, 20%
using debit cards rest of the respondents using tele messages.

58
5. FINDINGS & SUGGESTIONS

5.1FINDINGS

 The Reliability dimension of service quality is better as compared to empathy and

tangibility. Still the score is low. 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.
 Customer of the bank hesitates 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.
 As score for Assurance is at second place after responsiveness, so the customers
of NCC 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,
 The score of Tangibility dimension of service quality of NCC Bank is the lowest.
The service quality factor tangible is defined by whether the physical facilities and
materials associated with the services are visually appealing at the bank.
 Customer expectations regarding visual appealing of NCC Bank is very high.
From my study I found the physical facilities and modern looking equipments are
not sufficient in NCC Bank. Respondents were uncertain about the neat
appearance of the reception desk employees. So they should work on the and try
to fulfill the gap.
 According to my findings, the score of Empathy is not satisfactory but not
unsatisfactory also. NCC Bank is unable to give individual attention to its
customers and is unable to understand specific needs of its customers.
 In NCC Bank, the score of Responsiveness is highest so they are focusing on
prompt service, employees are willing to help the customers and say the exact
when the services will be performed.
 Employees at bank give their customers first preference and are always ready to
help them. Overall NCC Bank’s responsiveness dimension of service quality is the
highest.

59
 According to the customer perception, NCC Bank is highly responsive. Customers
are assured while transacting with the bank. The reliability dimension is lower
than the first to dimension. They feel that the bank is unable to give them
individual attention and its equipment’s are not modern and sufficient for the
bank.
 There is not much gap between all the dimensions, this shows that NCC Bank 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 NCC Bank.

60
5.2 SUGGESTIONS

 Reliability is an obvious place to start. Customers of the bank want to know their
resources are safe and within trustworthy institutions.
 Responsiveness, again when associated with a well- trained staff and timely
answer to service-related questions, would make significant inroads into causing
NCC Ban be regarded as responsiveness. Staff should be encouraged to present
relevant options to banking customers in a manner that does not resemble
salesmanship so much as a desire to serve.
 Intangibles please customers just as much as tangibles in the banking industry.
People tend to visit the same branch of a bank over and over again.
 Learning to understand customer’s needs will allow bank associates to offer
enhanced services, perhaps lowering customers banking costs and increasing their
investment potential. This could also open up the possibility of increased profits
for banks, for when perceived as more service and customer oriented, they will, in
become a useful and pleasant way to “Shop.”
 Keeping the bank with up-to-date technologically are important factors. Modern
equipment’s new improved technology should be replaced with the old ones. If
the staff inside is pleasant and well-informed, in an aesthetically pleasing
environment, then customer satisfaction will be high.
 The five dimensional structures could possibly serve as meaningful framework for
tracking a bank’s service quality performance over time and comparing it against
the performance of competitors. Items on some dimensions should be expanded if
that is necessary for reliability.
 Thus, the banking industries must continuously measure and improve these
dimensions in order to gain customers loyalty.

61
6. CONCLUSION

Based on the study conducted it can be concluded that responsiveness, assurance and
reliability are the critical dimensions of service quality of NCC Bank and they are directly
related to overall service quality. The factors that may delight customers tend to be
concerned more with the intangible nature of the service, commitment, attentiveness,
friendliness, care and courtesy.

The employees give prompt services, always are ready to answer the questions and are
trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date
technology modern equipment’s and neatly dressed up employees. The tangibility
dimension of service quality of NCC Bank is highly disappointing and serious steps are
needed to be taken to enhance this dimension. Customer of the bank is dissatisfied with
the empathy dimension. To satisfy these customers, the management can take some
attempts, noted earlier as suggestions.

The study brings about the areas which require urgent attention of the employees, the
management, and the policy makers of the industry. These are areas in which customers
are dissatisfied with the services of the banks against their expectation. This high degree
of dissatisfaction resulting from the services received clearly questions the design of
services or subsequent response of the bank employees. These limitations are too serious
to be avoided as these question the from line people dealing with the customers and the
approach of the management in taking customers seriously.

The management should understand the benefits of service quality. It includes increased
customer satisfaction, improved customer retention, positive word of mouth, reduced staff
turnover, decreased operating costs, enlarged market share, increased profitability and
improve financial performance. In the days of intense competition, superior service is the
only differentiation left before the banks to attract, retain and partner with the customers.
Superior service quality enables a firm to differentiate itself from its competition, gain a
sustainable competitive advantage, and enhance efficiency. Thus, improving service
quality leads to the customer satisfaction and ultimately to customer loyalty.

62
7. BIBLIOGRAPHY

References

Kotler, Marketing Management, Prentice Hall Publication; 12edition

Oliver, Satisfaction: A behavioral perspective on the consumer. New York: McGraw

Hill.
Malhotra K. Naresh, marketing research (An applied orientation), Research design,
(prentice hall of India Pvt. 5th edition)

Websites

www.google.com
www.wikipedia.org
www.marketresearch.com
www.nccbank.com.np

Report

Annual Report of NCC Bank Ltd.

63
 QUESTIONNAIRE

Dear SIR/MADAM, I am conducting survey on NCC Bank Ltd. I shall be very

thankful to give your few minutes to me for answering my few questions below.

Name:

Add:

Contact no.:

Gender:

Male Female

Email id:

Age Group:

18-25 25-35

35-45 45-55

55-65 65 +

Occupation:

Journalist Student

Professional Retired person

Technical expert Others

1. Are you agree that NCC Bank have modern looking equipment?

a) Strongly Disagree b) Disagree

c) Uncertain d) Agree

64
2. Are physical features of banks visually appealing?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

3. Are reception desk of employees neat appearing?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

4. Are materials associated with the service (such as pamphlets or statements)

visually appealing?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

5. Does employees of bank shows their interest to solve the problems of customers?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

6. Are you agree that bank have insists on error free records?

a) Strongly Disagree b) Disagree

c) Uncertain d) Agree
e) Strongly Agree

7. Are you satisfied with the service provided by the bank to the customers?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

65
8. Are employees in the bank give you prompt services?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

9. Are employees in the bank always willing to help you?

a) Uncertain b) Agree
c) Strongly Agree

10. Are you satisfied with the response service of the bank?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

11. Are employees of the bank are trustworthy?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

12. Are behavior of employees in the bank instills confidence on you?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

13. Do you feel safe in your transactions with the bank?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

66
14. Are employees in the bank having the knowledge to answer your questions?

a) Disagree b) Uncertain
c) Agree d) Strongly Agree

15. Which is the most preferable service use by the NCC Bank Ltd.?
a) Mobile Banking b) Internet Banking

c) Debit Cards d) Tele Messages

67