Professional Documents
Culture Documents
On
“To study the Strength of using CAMELS framework as a tool of
Performance Evaluation for Banking Institutions ’’
Bank of Kathmandu
(2009)
Submitted to:
KFA, Katmandu
CERTIFICATE
This is to certify that Mr. Shyam Kr. Ale has completed her project
report titled
“To study the strength of using CAMELS framework as a tool of
performance evaluation for Banking Institution’’ under my
supervision. To the best of my knowledge and belief this if his original
work and this. Wholly or partially has not been submitted for any
degree of this or any other University.
Date: 2009-11-02
Shanthosh Sharma
(KFA Supervisor)
DECLARATION
The word bank means an organization where people and business can invest or borrow
money; change it to foreign currency etc. According to Halsbury “ A Banker is an
individual , Partnership or Corporation whose sole pre-dominant business is banking ,
that is the receipt of money on current or deposit account, and the payment of Cheque
drawn and the collection of cheque paid in by a customer’’.
ABBREVIATIONS USED
The Word ‘bank’ is derived form the Italian word ‘banko’ signifying a bench, which was
erected in the market-place, where it was customary to exchange money. The Lombard
Jews were the first to practice this exchange business, the first bench having been
established in Italy A.D. 808. Some authorities assert that the Lombard merchants
commenced the business of money-dealing, employing bills of exchange as remittances,
about the beginning of the thirteenth century.
About the middle of the twelfth century it became evident, as the advantage of coined
money was gradually acknowledged, that there must be some controlling power, some
corporation which would undertake to keep the coins that were to bear the royal stamp up
to a certain standard of value; as, independently of the ‘sweating’ which invention may
place to the credit of the ingenuity of the Lombard merchants- all coins will, by wear or
abrasion, become thinner, and consequently less valuable; and it is of the last importance,
not only for the credit of a country , but for the easier regulation of commercial
transactions, that the metallic currency be kept as nearly as possible up to the legal
standard. Much unnecessary trouble and annoyance has been caused formerly by
negligence in this respect. The gradual merging of the business of a goldsmith into a bank
appears to have been the way in which banking, as we now understand the term, was
introduced into England; and it was not until long after the establishment of banks in
other countries-for state purposes, the regulation of the coinage, etc. That any large or
similar institution was introduced into England. It is only within the last twenty years that
printed cheque have been in use in that establishment. First commercial bank was Bank
of Venice which was established in 1157 in Italy.
Origin of Banking in Nepal
Nepal's first commercial bank, the Nepal Bank Limited, was established
in 1937. The government owned 51 percent of the shares in the bank
and controlled its operations to a large extent. Nepal Bank Limited was
headquartered in Kathmandu and had branches in other parts of the
country.
Nepal Rastra Bank was created in 1956 as the central bank. Its function
was to supervise commercial banks and to guide the basic monetary
policy of the nation. Its major aims were to regulate the issue of paper
money; secure countrywide circulation of Nepalese currency and
achieve stability in its exchange rates; mobilize capital for economic
development and for trade and industry growth; develop the banking
system in the country, thereby ensuring the existence of banking
facilities; and maintain the economic interests of the general public.
Nepal Rastra Bank also was to oversee foreign exchange rates and
foreign exchange reserves.
It was only after the signing of the 1960 Trade and Transit Treaty with
India that Nepal had full access to foreign currencies other than the
Indian rupee. Prior to the treaty, all foreign exchange earnings went to
the Central Bank of India, and all foreign currency needs were provided
by the Indian government. After 1960 Nepal had full access to all foreign
currency transactions and directly controlled its exports and imports with
countries other than India.
Date of
S.NO Name of Bank Establishment Head Office
(A.D)
1. Nepal Bank Ltd 1937/11/15 Dharmapath,
Kathmandu
2. Rastriya Banijiya Bank 1966/01/23 Shingadurbar plaza,
Kathmandu
3. Nabil Bank Ltd. 1984/07/16 Shingadurbar plaza,
Kathmandu
4. Nepal Investment Bank Ltd. 1886/02/27 Durbarmarg,
(NBIL) Kathmandu
5. Standard Chartered Bank 1987/01/30 New Baneshwor ,
KTM
6. Himalayan Bank Ltd 1993/01/18 Thamel Kathmandu
7. Nepal SBI Bank Ltd. 1993/07/07 Hattisar , KTM
8. Nepal Bangladesh Bank Ltd. 1993/06/05 New Baneshwor,
KTM
9. Everest Bank Ltd. 1994/10/18 Lazimpat, KTM
10. Bank of Kathmandu Ltd 1995/03/12 Kamaladi, KTM
11. Nepal Credit & Commercial Bank 1996/10/14 Siddarthanagar, KTM
Ltd.
12. Lumbini Bank Ltd. 1998/07/17 Narayangadh,
Chitwan
13. Nepal Industrial & Commercial 1998/07/21 Biratnagar, Morangq
Bank Ltd.
14. Machhapuchhre Bank Ltd. 2000/10/03 Prithvi Chowk,
Pokhara
15. Kumari Bank Ltd. 2001/04/03 Putalisadak, KTM
16. Laxmi Bank Ltd. 2002/04/03 Adarshanagar,Birgung
17. Siddhartha Bank Ltd. 2002/12/24 Kamaladi, KTM
18. Agricultural Development Bank 1968/10/19 Ramshahpath, KTM
Ltd.
19. Global Bank Ltd. 2007/01/02 Birjung, Parsa
20. Citizens Bank Int’ Ltd. 2007/06/21 Kamaladi, KTM
21. Prime Commercial Bank Ltd. 2007/09/24 Newroad, KTM
22. Sunrise Bank Ltd. 2007 Garidhara, KTM
23. Bank of Asia Ltd. 2007 Tripureshwor, KTM
24. DCBL Bank Ltd. 2001/02/01 Kamaladi, KTM
25. NMB Bank Ltd. 2008/05 Babarmahal, KTM
26. KIST Bank Ltd. 2009/05/07 Anamnagar, KTM
Source: www.nrb.org.np
Introduction of Bank of Kathmandu
Bank of Kathmandu Limited has become a prominent name in the Nepalese banking
sector. Bank of Kathmandu Ltd. Has become a glorify there corporate slogan “We make
your life easier’’. For the success of the above slogan Bank of Kathmandu is committed
to deliver quality service to customers, generating good return to shareholders , providing
attractive incentives to employees and serving the community through stronger corporate
social responsibility endeavor.
Bank of Kathmandu Limited (BOK) has today become a landmark in the Nepalese
banking sector by being among the few commercial banks which is entirely managed by
Nepalese professionals and owned by the general public.
BOK started its operation in March 1995 with the objective to stimulate the Nepalese
economy and take it to newer heights. BOK also aims to facilitate the nation's economy
and to become more competitive globally. To achieve these, BOK has been focusing on
its set objectives right from the beginning. To highlight its few objectives:
• To use the latest banking technology to provide better, reliable and efficient
services at a reasonable cost
• To facilitate trade by making financial transactions easier, faster and more reliable
through relationships with foreign banks and money transfer agencies
• To contribute to the overall social development of Nepal
TECHNOLOGY
• BOK takes pride in using Finacle, banking application software, “The Banker”
Technology Award 2004.
• Certified by Information Technology Association of using certified processes and
methods
• One of the first banking products to be JAVAtised to enable to operate
effectively, provide better customer services challenges of the internet paradigm.
• Is installed in more than 400 sites across the world.
INTERNET BANKING
With the aim of providing banking services at the customer's fingertips, BOK is starting
Internet Banking and Alert Service very soon. In Internet Banking, BOK will provide
Consumer e-banking (Core, Retail and Bill Payment) as well as Corporate e-banking
facilities (Trade financing and web based Cash Management).
Board of Directors
Product of BOK
1. Deposit Products :
a. Current Account: To suit every business need BOK has tailor made
Current account which rightly meets your needs in today's faced paced
business. With advanced technological features all your banking needs are
well taken care of. You can have access to your account from all our BOk
branches in just few seconds.
Features
Minimum Balance - NPR 10,000 in Kathmandu Valley Branches and NPR
5,000 in Outside Valley Branches
Facilities
i. Anywhere Branch Banking Services
ii. Extended Banking Hours in Kathmandu Valley Branches
iii. Standing Instruction is accepted looking at the feasibility of the
request.
iv. Cash Management
v. Free Chequebook
b. Saving: Bank savings accounts are a critical part of everybody's financial
picture. If you need a safe place to keep money, a bank savings account is
often a good choice. Here’s a quick review of what savings accounts are
and why you might want to have a bank savings account.
Features
1. Interest is given on daily balance depending upon the amount
deposited.
2. Minimum balance to be maintained in this account is Rs.50,000
only.
3. Ledger fee of Rs.200 will be deducted from the account if the
minimum balance is not maintained.
Facilities
Features
1. Minimum balance to be maintained Rs. 15,000 only for
Kathmandu Valley branches and Rs. 5000 for outside valley
branches.
Facilities
1. Anywhere Banking Service.
2. Free Cheque book
3. Extra hour banking services through evening counters(in
Kathmandu Valley
4. Non-restricted transactions for deposits and withdrawals
5. ATM for easy transactions.
6. Mobile Phone Bill Payment Services ( at standing
instruction)
Features
1. Either current or saving account to be maintained
2. Interest Calculated on Daily Balance.
3. Withdrawals from this account should be pre-informed.
4. Deposits will be accepted only during working hours only.
5. Cheque book will not be issued for this account.
iv. Term Deposite :
1. Fixed Deposite : Tenure ranging from seven days to over
three years, Fixed Deposit at Bank of Kathmandu allows
you to diversify your portfolio to best suite your investment
plan.
Features:
I. One master account (i.e. Savings or Current) is
required to be maintained with the bank.
II. Interest will be given at maturity.
III. Minimum amount to be deposited is Rs.50, 000.
Facilities
1. Standing instruction or specific instruction could be given at the time of account
opening.
Documentation
1. For organization, a Board minute is required.
2. For Individual 2 set of photographs and the copy of citizenship is required
v. Recurring Deposits : To build up your savings BOk has introduced Recurring Savings
Scheme where in monthly equated deposits over a fixed period of time yields higher
returns.
Features
1. Project Finance (Term Loan): Based on the viability of the project/proposal, Term Loan to finance the long-term financing
need of a firm/company may be made available. This loan is normally provided up to 65% of the financing requirement with a
maximum tenure of 60 months. Terms could vary depending upon the need of the project.
2. Working Capital Finance: Based on the nature of a business/transaction, various types of working capital facilities/loans may
also be availed. Some of the commonly offered products under this category are as follows:
i. Overdraft: This revolving/open term facility enables a firm/company to manage their varying daily cash requirement.
ii. Demand / Short-term loan (Trade Finance): These facilities are normally provided to support one-off or any particular short-
term transactions.
iii. Trust Receipt/ Importers Loan (Trade Finance): Majority of the businesses in Nepal depend on imported items. Short-Term
Trust Receipt Loans are the most common/popular product available to finance such requirement.
iv. Export Loan: Export loan facilitates to the exporters to process/collect stocks for exports.
3. Consortium Lending / Finance / Credit: Bank of Kathmandu has developed skills in syndicating large project loans and has
successfully applied them in tying-up a number of large deals.
1. Demand / Short-term loan (Trade Finance): These facilities are normally provided to support one-off or any particular short-
term transactions.
2. Trust Receipt/ Importers Loan (Trade Finance): Majority of the businesses in Nepal depend on imported items. Short-Term
Trust Receipt Loans are the most common/popular product available to finance such requirement.
i. Loan against Fixed Deposit: Loan against fixed deposit enables you to manage the short-term cash need without breaking the
deposits.
ii. Loan Against Govt. Bond / 1st Class Bank Guarantee: A low cost secured loan product offered to you for managing your
financing need.
iii. Priority Sector/ Deprived Sector Loan: By virtue of this product small entrepreneur/individual may also avail loan up to NPR
2.5 million.
iv. Consortium Financing: Bank of Kathmandu has developed skills in syndicating large project loans and has successfully
applied them in tying-up a number of large deals.
1. Housing Loan:
2. Vehicle Loan:
i. Car4U Loan
Financing brand new pick up trucks to be operated for transaction of goods. Key terms:
3. Education Loan:
Financing students for their graduation or post graduation studies. Key terms:
Key terms:
Financing eligible individuals recommended by His Majesty’s Government going abroad on a pre arranged employment through a
recognized emplo9yment agency .
Key terms:
5. Development Credit: The goal of Development Credit is to provide quality financial services to marginalized groups and poorer
sections of society through intermediaries e.g. Micro Finance Institutions, Co-operatives, Financial Intermediary Non
Governmental Organizations, Development Banks, Community Based Organizations and other registered organizations.
Products:
This product has been devised for financing general micro finance loans to clients through partner institutions involved in offering
Micro Finance services.
A micro finance loan is defined as a loan used for various income generating activities including, but not limited to, purchase of
livestock, loans for mini-grocery stores, vegetable loans, etc. Non-income generating loans such as installing bio-gas units shall
also be availed but only with prior approval from Bank of Kathmandu.
The product has been devised to allow farmers, agricultural cooperatives, community forest user groups and other registered
institutions engaged in producing and processing agricultural and forest based products to have access to finance for funding
working capital requirements, plantation expenditures and purchasing livestock and accessories.
3. Equpment Finance:
The product aims to finance the cost of equipments of various purposes to individuals, groups and institutions operating Small and
Medium Enterprises with an objective to raise income in rural and urban areas of Nepal.
The product has been devised for financing vehicles and vehicle related accessories to self-employed low income earning
entrepreneurs. Loans will be of a Hire Purchase and on an owner-driver concept.
6. Other Products & Service:
• Development Credit
• International Trade ( Letter of Credit , Bank Guarantees etc.)
• Global Banking Solutions (E-Fund Transfer)
• SWIFT Transfer
• Demand Draft
• Traveler’s Cheque
• Remittance
• Debit Card / ATM’S
• Salary Management
• Cash Management
• Gift Cheque
• Safe Deposit Locker
• Gift Cheque
• Safe Deposit Locker
• NRN Banking
• BOK Visa Credit Card
Capital Structure:
Share Ownership:
BOK Branches :
BOK ATMS
Kamalpokhari, Kathmandu
New Road, Kathamndu
Supreme Court, Singha Durbar, Kathmandu
Krishna Tower, New Baneshwor, Kathmandu
Jawalakhel, Lalitpur
Nepaljung
Pokhara
Namche
Surkhet
Ghorahi
Butwal
Chabahil, Chuchhepati, Kathmandu
Thamel, Kathamndu
New Road Lounge, Dharmapath
Gyaneshwor, Kathmandu
Tripureshwor, Kathmandu
Focus:
Currently at present, BOK has been focusing land on retail banking consumer finance. Beside this, BOK this , BOK focuses on
giving its best services to general public introducing new ways and means of services. It is slowly following sophisticated banking
products and fee based services. It aims to continue the operation providing goods, services speeding in opening new branches
within the different geographical location. Also, recently it has lunch internet Banking Services.
As a true corporate citizen BOK has contribution towards the betterment of the society in
every way possible. With endless possibilities, BOK aims at doing the most, in diverse
avenues. Be it organizing HIV/AIDS walkathon, blood donation program or keeping
environment clean, BOK constantly endeavors to reach out to those that need most support.
1. BOK has been supporting the deprived student of help to the helpless counsil
( DHARAN ) through its educational support program.
2. BOK supported a scholarship program organized by development and Equity for
woman empowerment, Nepal for underprivileged students.
3. BOK with a mission to support BAL Mandir orphans Project, Naxal, supported 2nd
annual dinner fundraiser at 1905, Kantipath. Organized by Nepal; Children’s
Organization.
4. BOK made an effort to help schools in remote areas ( Far Western Region, Nepal )
5. in order to enhance the quality education in that area by supporting a pilot Adop-A-
School program launched by asave the childrean Kathmandu.
6. As a mission to create awareness and support for the treatment and rehabilitation
center for disabled children, BOK supported Hospital and Rehabilitation Center for
disabled children ( HRDC ) to host the 3rd CMS Abilities Cup 2008.
7. BOK made an effort to create an opportunity for the disabled children to be self
employed by providing them with computer trainings by supporting skill Development
and Rehabilitation Center for Disable-Nepal.
8. BOK distributed clothes to the flood victims of Bank Districts through “ Hridaya
Group’’ – Social Youth Organization.
9. As a part of its commitment to be socially responsible, BOK organized its 2nd of the
knowledge series one day workshop “seize the future- A Visionary Leadership
Workshop ‘’. The proceeds form the workshop plus an addition of two hundred and
fifty thousand rupees were contributed to Hospital and Rehabilitation center for
disable children ( HRDC ) in order to support the disabled children of Nepal.
10. Furthermore, the workshop was organized with an aim to create a perspective for
the participant on both internal and external challenges that he/she is facing in
leading the organization and to help them develop a plan of action to successfully
tackle the challenges.
11. BOK is a committed supporter to TEWA in its Endeavour in building equitable, just
and inclusive society (with special focus on Woman ) by increasing self reliance of
Nepalese by reducing dependency on foreign donors.
12. BOK has been supporting TEWA to organize many fund raising events in the past
years. TEWA with support of BOK recently organized ‘ Deep Prajwalan ‘ a fund
raising event in support of rural Nepalese women’s groups for promoting equitable
justice and peace in the society.
13. To make the world HIV/AIDS day, Bank of Kathmandu decided to do something
different this time and donated full set of clothes and foodstuffs to 22 HIV positive
children of Keta Keti Ashram, Bansbari and Kathmandu.
14. BOK joined hands with Traffic police post, Gaushala wigh an attempt to convey the
Traffic social Massages by helping place banners in public vehicles ( with Traffic
Massages ) in order to create social awareness among the people regarding the
traffic rule.
15. BOK joined hands with Naxal Yuva Mandal in order to restore Naag Pokhari with its
mission towards CSR focusing environment activities.
ATM LOCATIONS
Inside Valley:
1. Himalayan Bank Limited, Thamel.
2. Himalayan Bank Limited, Newroad.
3. Himalayan Bank Limited, Patan.
4. Himalayan Bank Limited, Mangal Bazar
5. Himalayan Bank Limited, Maharajgunj.
6. Himalayan Bank Limited, Bhaktapur.
7. Himalayan Bank Limited, New Road (Near Hot Breads.)
8. Bank of Kathmandu, Kamaladi.
9. Bank of Kathmandu, New Road.
10. Everest Bank Limited, New Baneshwor.
11. Everest Bank Limited, Khicha Pokhari, New Road.
12. Everest Bank Limited, Pulchowk.
13. Everest Bank Limited, TIA (Airport.)
14. Laxmi Bank Limited, Hattisar.
15. NCC Bank Limited, Chabahil.
16. NCC Bank Limited, Bagbazar.
17. Machhapuchchhre Bank limited, Putali sadak.
18. Blue Bird Department Store, Lazimpat.
19. Blue Bird Department Store, Tripureshwor.
20. Nanglo, Durbarmarg.
21. Hotel Garuda, Thamel.
22. Metro Mall Soaltee Compound, Tahachal.
23. Big C Shopping Center ,Gaushala, Kathamadu.
24. NIC Bank Limited, Kamaladi
25. Lumbini Bank Limited, Durbarmarg.
26. Suvam Convenience Store, Maharjgunj.
27. BhatBhateni Department Store, BhatBhateni.
28. Nabil Bank Limited, Kantipath
29. Nabil Bank Limited, New Road.
30. Nabil Bank Limited, Kupondole.
31. Nabil Bank Limited, Maharajgunj.
32. Thamel Mart, Thamel.
33. Bakery Café, Tridevi Marg, Thamel.
34. Gemini Grocer, Bouddha, Tushal.
35. Bhaktapur Durbar Square, Bhaktapur.
36. Nepal Bangladesh Bank Limited, Kathmandu Plaza.
37. Nepal Bangladesh Bank Limited, Kumaripati.