INTRODUCTION

Background of the Study

Banking sector is the main element of any financial sectors. So, banking sector
is also known as backbone of economy, because it helps to formulate capital by
collecting scattered amount among people and invest in different infrastructure
like transportation, health and other basic needs of development in which
private sector does not want to invest. That is why banking sector is a platform
through which scattered saving and scares resources can be transferred from the
idle sector into productive sectors.
Previously, people used goods for goods to exchange necessary things that they
need to survive but it is very difficult to measure and pay through barter system.
That is why money was introduced. Plastic Cards have given the banking
customers the facility of round the clock (24 hours) banking (Arondekar, 2007).

In modern day commerce, With the increasing use of the credit cards, the
society is moving towards cashless transactions. It is one of the highly used and
convenient forms of electromagnetic cards that are nowadays available. It has
helped to eliminate drawbacks of cash payment system and made life easy and
tension free.

Brief Profile of Concerned Banks

1. Himalayan Bank Limited
2. Nabil Bank Limited
3. Standard Chartered Bank
Statement of the Problem

Today credit card has become a synonym for currency notes in foreign
countries. In other countries, there are cash free zones with all the financial
needs being handled by bank cards. But in the context of Nepal it is quite
difficult to do so. Card business is fluctuating till now from beginning. Credit
card is used mostly through personal relationship only. The concerned banks
should force to serve service and facilities for improving the well card business.
So, the study will focus on the following problems related to the subject chosen:

a) What are the trends of credit card users in Nepalese market?

b) What is the position of different banks involved in card business?
c) What is the growth situation of the banks in the card business?

Objectives of Study

The main objective of the study is to trace how the credit card operation
evolved over the years and tries to examine the existing structure and operation
of credit card systems. Besides this, specific objectives of the study are as
follows;

a) To get the overview of the credit card business in Nepal.

b) To examine the aggregate market trend for credit cards.
c) To know the comparative analysis of credit card business of sampled
banks.
d) To analyze the problems related to various transactions of credit card.
Important of the Study

This study is credit card business of Nepal with selected three banks as a
reference. It will be help to finding market scenario, card players, customer
behavior, attitude toward card services, attracting future customers, marketing
need for credit cards, possible improvements and role to be played by different
parties involved in the business has been taken in this project. This research
study will also be fruitful to those interested person, scholar, stakeholders,
businessmen, civil society, students, teachers and other academically
perspectives as well as the bank involved in card business to modify their card
service and in formulating strategy for smooth operation of card. It also helps to
government who has to make different policies for regulating the Card business.

Limitations of the Study

The study will be limited to the study of performance of HBL towards credit
card business in Nepal. Since, credit card is new concept for Nepalese business
and personal life. Hence it is difficult to find the references and required
information. However, the attempt has been made to be limited within the
boundary of available information. Also, efforts have been made to present the
possibly collected data and information.

a) The study is confined to only three commercial banks HBL, NABIL and
SCBNL.
b) The study covered only a period of 5 years.
c) Non-availability of financial and other data due to privacy of bank.
d) Research is confined only to analysis of credit card business.
e) The study is not a final study on the subject.
f) The study is fully based on the students limited financial resources within a
limited period.

Instrument
Instrument are the importance factor for presentation and analysis of data.
Instruments make clear to analysis and understand data.

Technique of analysis

I. Table
II. Bar Diagram
III. Arithmetic Mean
IV. Standard Deviation
V. Coefficient of Variation
VI. Correlation of Coefficient

Secondary data
The average users of different banks: - NABIL, HBL, SCBNL and
Industry are 8335.17, 12574.17, 10361.67 and 31271 respectively. In
comparison among the three banks HBL has the highest average number
of credit card users. SCBNL has the lowest average number of card users
among the three sample banks. Standard deviation of NABIL, HBL,
SCBNL and Industry are 941.45, 2586.35, 1331.09 and 4764.22
respectively. While analyzing the volatility of user trend, HBL has the
highest volatility among three sample banks but all banks have less
volatility than the industry. The coefficient of variance of sample banks
HBL, and Industry are 20.57nd 15.24 respectively. HBL has the highest
C.V. It shows that HBL has higher risk than other banks. Similarly,
NABIL has lowest C.V. and it shows that it has lower risk.