CHAPTER TWO

2. Introduction oOf Banking Industry

2.1 Introduction of Mmachhapuchchhre Bbank Llimited

Machhapuchchhre bank limited was register in 1998 as the first regional commercial bank from
the western region of Nepal and started its banking operations from pokhara since year 2000.
The bank has been promoted by highly renowned non-residential Nepalese, prominent business
and industrialists with a bision and dedication to provide the best financial products and services
in the most efficient and professional manner. The bank provides modern banking facilities such
as internet banking, mobilr banking, safe deposists locker facilities, utility bill payment, atm to
its valued customers.

2.1.12 Development of Bbanking Iindustry in Nepal

The history of modern banking in

Nepal. Nepal was a closed economy until the 1950s, with limited foreign trade and no
international banking. The first bank in Nepal, the Nepal Bank Limited, was established in 1994
B.S. with the aim of providing banking services to the Nepalese people.

After the nineteen year of establishment of NBL, the Nepal rastriya bank was established in the
year 2013 B.S.

RASTRIYA BANIJYA BANK AGRICULTURE DEVELOPMENT BANK LTD were

estabkished in the year 2022 and 2024 B.S. respectively. The first privately owned commercial
bank, nabil bank was established in the year 2041B.S.
2.1.23 Introduction to commercial banks

A commercial bank in Nepal serves as a vital financial intermediary, playing a crucial role in the
country's economic development and financial system. These banks operate with the primary
objective of generating profits through various financial services offered to individuals,
businesses, and other entities.

Commercial banks in Nepal provide a wide range of services, including but not limited to deposit
accounts, loans, credit facilities, foreign exchange services, investment opportunities, and
various other financial products. They act as custodians of public funds, accepting deposits from
individuals and businesses, which are then utilized to extend loans and investments to borrowers.

Furthermore, commercial banks play a significant role in facilitating domestic and international
trade by offering trade finance services such as letters of credit, guarantees, and export-import
financing. They also provide various electronic banking services, including online banking,
mobile banking, and ATM services, to enhance customer convenience and accessibility.

2.1.34 lists of commercial banks in Nepal

1. Kumari Bank (After the merger with Nepal Credit and Commerce Bank)
2. Rastriya Banijya Bank
3. Agriculture Development Bank
4. Nabil Bank (After the acquisition with Nepal Bangladesh Bank)
5. Nepal Investment Mega Bank (After the merger with Mega Bank Nepal Limited)
6. Standard Chartered Bank Nepal
7. Himalayan Bank (After the merger with Civil Bank Limited)
8. Nepal SBI Bank
9. Everest Bank
10. Prabhu Bank (After the acquisition of Century Bank Limited)
11. Laxmi Sunrise Bank (After the merger with Laxmi Bank)
12. Global IME Limited (After the merger with Bank of Kathmandu)
13. Citizens Bank International
14. Prime Commercial Bank
15. NMB Bank Nepal
16. NIC Asia Bank
17. Siddhartha Bank
18. Sanima Bank
19. Machhapuchchhre Bank
20. Nepal Bank Limited
[21.]
 [22.]

2.35.1 Present situation of Banking Industry

Liberalization policy has given freedom to Nepalese Financial Institutions. But the number of
Development Banks, Cooperative & Finance Companies has been decreased in the recent years.
Nepal Rastra bankcontrolled the mushrooming of the Commercial Banks nowadays. Presently,
the Nepalese Banking sector is facing a huge problem and is in critical situation. So, in order to
cope with this problem Nepal Rastra Bank has directed the Banking institutions to go in the
process of mergers and acquisitions. Nepal Rastra Bank has provided several benefits to the
merging institutions. Responding to the benefits presented by Nepal Rastra Bank the banks and
financial institutions of the country are opting in the process of mergers. Global Bank, IME
Finance, Lord Buddha Finance company, Commerz and Trust Bank merged together and is in
operation as Global IME Bank. NIC Bank and Bank of Asia merged together to operate as a
NIC ASIA Bank. Machhapuchchhre Bank and Standard Finance merged to establish a better
equity based Machhapuchchhre Bank. Kist Bank and Prabhu Finance merge together to
form Prabhu Bank. Vibor Bikash Bank & Bhajuratna Saving & Finance Company merged and
is in operation as Vibor Bank. Uddham Bikash Bank and Pashupati Development Bank merged
and formed Axis Development Bank. Himchuli Bikash bank and Birgunj Finance merged and
became H & B Development Bank

2.45 Challenges and Opportunities to Industry

Nepal is a developing nation, various projects are undertaken to develop the economy. In this
context banks loan are major sources of investment. Tough competition among the banks brings
the differentiated services to the customers. Nowadays, Bank has an e-banking and mobile
banking facility which brings the healthy competition among the commercial banks. Most of the
banks provide modern remittance facilities to their customers.
In Nepal only 30% of the people have access to the banks. Most of the Commercial Bank is
concentrated mostly in the urban areas. Transfer of fund without prior approval of the central
bank, continuous injection of liquidity by NRB, highest level of Non Performing Assets, tough
competition among the commercial banks, improving the worsening liquidity crisis and not
enough cyber law to control cyber crimes are the major challenges to the industry.

You have to do SWOT analysis for this.

2.5.1 Present situation of Banking Industry

Liberalization policy has given freedom to Nepalese Financial Institutions. But the number of
Development Banks, Cooperative & Finance Companies has been decreased in the recent years.
Nepal Rastra bankcontrolled the mushrooming of the Commercial Banks nowadays. Presently,
the Nepalese Banking sector is facing a huge problem and is in critical situation. So, in order to
cope with this problem Nepal Rastra Bank has directed the Banking institutions to go in the
process of mergers and acquisitions. Nepal Rastra Bank has provided several benefits to the
merging institutions. Responding to the benefits presented by Nepal Rastra Bank the banks and
financial institutions of the country are opting in the process of mergers. Global Bank, IME
Finance, Lord Buddha Finance company, Commerz and Trust Bank merged together and is in
operation as Global IME Bank. NIC Bank and Bank of Asia merged together to operate as a
NIC ASIA Bank. Machhapuchchhre Bank and Standard Finance merged to establish a better
equity based Machhapuchchhre Bank. Kist Bank and Prabhu Finance merge together to
form Prabhu Bank. Vibor Bikash Bank & Bhajuratna Saving & Finance Company merged and
is in operation as Vibor Bank. Uddham Bikash Bank and Pashupati Development Bank merged
and formed Axis Development Bank. Himchuli Bikash bank and Birgunj Finance merged and
became H & B Development Bank

CHAPTER THREE-III
3. InroductionIntroduction tTo tThe Machhapuchchhre Bank

3.1 Introduction

Machhapuchchhre Bank limited registered in 1998 as the first regional commercial bank from
the western region of Nepal. The ‘A’ class commercial bank started its banking operations from
its own office located in the foothills of Machhapuchchhre Mountain peak in the picturesque
town of Pokhara since year 2000.

The Bank facilitates its customer needs by delivering the best of services in combination with the
latest state of the art technologies and prudent international practices. The Bank is the pioneer in
introducing the latest technology in the banking industry in the country. It is the first bank to
introduce centralized banking software, GLOBUS BANKING SYSTEM of Temenos NV,
Switzerland. The Bank provides modern banking facilities such as Any Branch Banking, Internet
Banking, Mobile (SMS) Banking, Safe Deposit Locker Facilities, Utility Bill Payment
(Telephone & Mobile), ATM(VISA Debit card associated with SCT Network) to its valued
customers. Besides these, the Bank is providing 365 Days banking and Evening Counter services
to the customers through many of its offices

3.2 MISSION AND VISION

To provide the best financial products and services in the most efficient and professional manner
is mission of the MBL. The bank shares a common vision of “service with a personal touch”.

3.3 Paid Up Capital of MBL

Now with a paid up capital of over 11.62 billion dollar rupees, 165 Branch Offices,119
Branchless Banking Units, 12 Extension Counters and 201 ATMs spread all across the country,
it is one of the full fledged national level commercial banks operating in Nepal.

3.4 performance of MBLmbl

The bank has earned Rs 1.85 arba in net profit. In the previous fiscal year 2078/79,
Machhapuchchhre Bank had earned a net profit of Rs 1.68 Arba.

3.5 Products /Services offered by MBL

3.5.1 Saving Account

Under the saving account, the various schemes offered by MBL includes Yuba Bachat , MBL
Premium Saving, PewaBachat, SammanBachat,UchhaShikshaNikchhepYojana, NRB Special,
RemmittanceBachat, Fixed Deposit, MBL NRN Deposit, Salary Account, BalbalikaBachatkhata,
Call Deposit, Saving Deposit, Current Deposit.

3.5.2 MBL Visa Debit Card

MBL provides the opportunity to enjoy the benefit of electronic transactions (cash withdrawal,
purchase, fast cash transaction)by availing the Visa Card types: MBL Visa Debit Card- Domestic
and International.

3.5.3 SMS Banking

MBL brings the SMS Banking facility that keeps the track of your account even while you are on
the move. This facility is available for all deposit accounts.

3.5.4 Internet Banking

MBL provides the facility of internet online banking. Through internet banking we can do our
online transactions, funds transfer, balance enquiry, purchase recharge cards, e-sewa.

3.5.5 Remittance

MBL has MBL Remit which provides remittance facilities to the customer. MBL REMIT is an
online, real-time remittance processing system that is accessed through the Internet and is offered
as an application service. MBL offers following remittance facilities:
  Manager’s Cheque
 Demand draft
 SWIFT Transfer
 E-payment
3.5.6 Locker Facility
MBL provides safe locker facility through different branches. Machhapuchchhre Bank provides
Locker facility of the different size depending on the cost. Such as for the size of 12* 16 cm
locker, Bank Charges annual cost of Rs.1500 and should have Rs.7500 balance in the account.
For the of size 12* 33 cm locker, Bank Charges annual cost of Rs.2500 and should have
Rs.10000 balance in the account. For the size of 18.5* 25 cm locker, Bank Charges annual cost
of Rs.2500 and should have Rs.10000 balance in the account.

Present Situation ?????

Challenges and Opportunities ?????