CHAPTER - I

INTRODUCTION
1.1 Background of the Study

In today's financial services marketplace, a financial institution exists to

provide a wide variety of deposit, lending and investment products to individuals,
businesses or both. While some financial institutions focus on providing services and
accounts for the general public, others are more likely to serve only certain consumers
with more specialized offerings.

To know which financial institution is most appropriate in serving a specific

need, it is important to understand the difference between the types of institutions and
the purposes they serve. The major categories of financial institutions include central
banks, retail and commercial banks, internet banks, credit unions, savings and loans
associations, investment banks, investment companies, brokerage firms, insurance
companies and mortgage companies.

A commercial bank is an institution that provides services such as accepting

deposits, providing business loans, and offering basic investment products. The main
function of a commercial bank is to accept deposit from the public for the purpose of
lending money to the borrowers. Commercial bank can also refer to a bank, or a
division of a large bank, which more specifically deals with deposit and loan services
provided to corporations or large/middle-sized business - as opposed to individual
members of the public/small business. Nowadays, there are different commercial
banks emerging to contribute in national economy. The term commercial bank is used
for those types of institutes, which are mainly concerned for the development of trade,
commerce and industry, which are the prime requisites for the attainment of
economic, social and political purpose of the country. Financial services are fuel to
provide energy to move the vehicle of economic growth.

Thus, commercial banks are the main institutions, which are meant for the
collection and utilization of small scattered savings of the people. The commercial
banks utilize the collected resources by financing in productive, distributive the main
function of the banks is to accept money spread in the general public as deposit and
utilize the collected resources properly. General public deposits their savings for

1
safety and they also get interest in advancement. Not only this, they can withdraw
their money when they need. Deposit, is the savings of people or even of
industrialists, which in not required for them in the very moment, which is accepted,
by banks and later on they get interest. Deposit accounts are also one of the important
sources of banks' funds, in order to attract customers the banks offer attractive
facilities to different types of deposits account holders. In order to avoid miniature
expenses of our daily life among society banks has been providing sound interests
because of the hard global competition and they need deposits like raw materials in
production process (Geiger, 1975).

A deposit is the act of placing cash (or cash equivalents) with some entity,
most commonly with a financial institution such as a bank.

The deposit is a credit for the party (individual or organization) who placed it,
and it may be taken back (withdrawn) in accordance with the terms agreed at time of
deposit, transferred to some other party, or used for a purchase at a later date. Deposits
are usually the main source of funding for banks.

A loan is the lending of money by one or more individuals, organizations, or

other entities to other individuals, organizations etc. The recipient (i.e. the borrower)
incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and
also to repay the principal amount borrowed. The document evidencing the debt, e.g.
a promissory note, will normally specify, among other things, the principal amount of
money borrowed, the interest rate the lender is charging, and date of repayment. A
loan entails the reallocation of the subject asset(s) for a period of time, between the
lender and the borrower. The interest provides an incentive for the lender to engage in
the loan. In a legal loan, each of these obligations and restrictions is enforced by
contract, which can also place the borrower under additional restrictions known as
loan covenants. Although this article focuses on monetary loans, in practice any
material object might be lent. Acting as a provider of loans is one of the main
activities of financial institutions such as banks and credit card companies. For other
institutions, issuing of debt contracts such as bonds is a typical source of funding.

Online banking, also known as internet banking, is an electronic payment

system that enables customers of a bank or other financial institution to conduct a
range of financial transactions through the financial institution's website.It is a part of

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core banking system. The online banking system will typically connect to or be part
of the core banking system operated by a bank and is in contrast to branch banking
which was the traditional way customers accessed banking services.

Today, "virtual banks" (or “direct banks”) have only an internet presence,
which enables them to lower costs than traditional brick-and-mortar banks. Internet
banking portal provides personal Banking , corporate Banking , that gives us complete
control over all banking demands online such as : looking Bank A/c balance,
minimum statement , Recent transaction , make bill payment and, etc.

Everest Bank Limited

Catering to more than 9 lacs customers, Everest Bank Limited (EBL) is a

name you can depend on for professionalized & efficient banking services. Founded
in 1994, the Bank has been one of the leading banks of the country and has been
catering its services to various segments of the society. With clients from all walks of
life, the Bank has helped develop the nation corporately, agriculturally & industrially.
Punjab National Bank (PNB), our joint venture partner (holding 20% equity)
is the largest nationalized bank in India having presence virtually in all important
centers. Owing to its performance during the year 2012-13, the Bank earned many
laurels & accolades in recognition to its service & overall performance. Recently,
PNB was awarded with "IDRBT Banking Technology Excellence Award" under
Customer Management & Intelligence Initiatives. The Bank also bagged "Golden
Peacock Business Excellence Award 2013" by Institute of Directors. Similarly, the
Bank was recognized as 'Best Public Sector Bank' by CNBC TV 18. The bank has
now more than 6,635 branches and 8622 (as on 30th sept 2015) ATMs spread all
across the India. As a joint-venture partner, PNB has been providing top management
support to EBL under Technical Service Agreement.
Everest Bank Limited (EBL) provides customer-friendly services through its
wide Network connected through ABBS system, which enables customers for
operational transactions from any branches. The bank has 80 Branches, 113 ATM
Counters, 7 extension counter & 28 Revenue Collection Counters across the country
making it a very efficient and accessible bank for its customers, anytime, anywhere.
The bank has been conferred with the "Best Managed Commercial Bank" by ASIAN
PAINT NEWBIZ Award 2013.

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1.2 Scope of the Study

It is a known fact that financial institutions play several vital roles in any
economy. And these roles are aimed at ensuring sound financial system and economic
stability. It is incontrovertible that the financial system is the engine of growth in any
economy, given its function of financial institutions. Through this function, financial
institution facilitates capital formation, lubricate the production engine turbines and
promote economic growth. However, the ability of financial institutions to engender
economic growth and development depends on the health, soundness and stability of
the financial system itself. The need for a strong, reliable and viable financial system
is underscored by the fact that the industry is one of the few sectors in which the
shareholders' fund is only a small proportion of the liabilities of the enterprise. It is,
therefore, not surprising that the financial industry is one of the most regulated sectors
in any economy. Yet it has been argued in the public domain that the financial
institutions have not been performing the desired roles in improving capital formation
and promoting economic growth in the country. Capital formation refers to the net
addition to the capital stock after of any nation after depreciation. It is defined as an
addition to stock of capital asse ts set aside for future productive endeavours in real
sector which will lead to more growth in physical capital assets of the country. Capital
formation captures all the real-value-added to the economy in real-asset-terms which
will lead to further enhancement of savings, investment and generation of more
wealth in future. Capital formation derives from savings accumulation. It has a
positive impact on private savings accumulation in the sense that increase in capital
formation will lead to more savings. When savings accumulate, it will lead to an
increase in gross domestic investment (GDI) and income generated as a result of the
investment projects made will, in turn, lead to GDP growth. Now, the supposed
relationship between financial institution, capital formation and economic growth is
that financial system through its activities such as savings and deposit mobilization,
credit creation, etc. increases the accumulation of capital formation which in turn is
expected to enhance economic of the country. So, whether or not this relationship
holds in Birendranagar, Surkhet is also the essence of this study.

This study would be helpful to find out the role of Everest Bank Limited on
capital formation in Birendranagar of Surkhet. This study has tried to find out the

4
situation of deposit/saving facilities, credit facilities and internet banking provided by
Everest Bank Limited in Surkhet and the role of this bank in formation of capital.

1.3 Objectives of the Study

The main objective of the study is to find out the clients' response towards the
service delivery of Everest Bank Limited. The general objectives of this study are as
follows:
1. To find out the deposits/saving facilities provided by Everest Bank Limited in
Birendranagar of Surkhet.
2. To identify the credits/loans facilities provided by Everest Bank Limited.
3. To find out the internet banking provided by Everest Bank Limited.
1.4 Research Questions of the Study
This study has tried to find out the answers of the following research
questions:
1. What type of deposits/saving facilities are provided by Everest Bank Limited?
2. What type of credits/loans services are provided by Everest Bank Limited?
3. Do Everest Bank Limited provide internet banking facilities?
1.5 Conceptual Framework
This study has tried to find out the role of financial institutions on formation of
capital. In this study, deposits/savings facilities, credits/loans and internet banking
have been taken as the independent variable and formation and mobilization of capital
has been taken as the dependent variable. On the basis of the objectives of the study, a
conceptual framework has been developed which is as follows:

Independent
IndependentVariable
Variable DependentVariable
Variable
- -Deposits/savings facilities Dependent
Deposits/savings facilities
- -Credits/loans
- -Service
Credits/loans ServiceDelivery
Delivery
- -Internet
Internetbanking
banking

Figure 1: Conceptual Framework of the Study

As regards the deposits, basic functions include the prospects of satisfying the
need to save and of sensible management of the clients’ money. Additional functions
concern the ways of depositing the money, the interest rates, the speed and quality of
service, the availability of member service points and the truthfulness of the
cooperative. The cooperative provides various deposit services.

5
 This paper examines the extent to which savings products offered by
cooperative societies in some parts of Nigeria meet the financial needs of the rural
dwellers. The study used the data from interviews and focus group discussions from
randomly selected members of cooperative societies in six local governments. The
data are analyzed using percentages, content analysis and quotation. The study found
that the savings product helps to inculcate a good savings habit among the participants
because they find it easier to save now than when they were introduced to the
program. The members also developed self esteem as "part owners" of the program
because of the compulsory savings that they participate in, and they do not want the
program to collapse. Members are also satisfied because they are able to save in the
scheme which helps them to reduce their expenses on frivolous spending such as
leisure drinking and acquisition of more wives. The members' inability to withdraw
from their savings when in financial need, except on cessation of membership, was
found as the drawback of the program (Oluyombom 2013).

Credits/Loans
The preference and satisfaction level of member towards loans, deposit
schemes, insurance and value added services rendered by private and public banks in
Shivamogga district have been examined. Business and vehicle loans are fast moving
than other services and overall satisfaction resulted at 50%. Further, overall
satisfaction on bank deposit schemes resulted positively well other service of banking
still need to be given attention by focusing on member issues. New innovative
schemes, strategies to cater to non users other services have to be adopted (Ravi and
Basavaraj, 2013).

Internet Banking
Due to the impossible extension of information and correspondence
technology [ICT] the concept of banking has been significantly changed. Usage of
modern state of the art technology has moreover immediately happened in
Bangladesh which reflects are e-banking products and services. Such developed
environment in banking and the consistently growing habits of the overall public to
use mobile phone should be conductive of internet, online, and mobile banking here.
The emergence of e-banking service is playing a fore front part for the country's
money related headway boosting customer satisfaction. This research work is an
attempt to find out the status of e-banking by customer satisfaction and importance

6
level on different dimension of e-products like ATM, Credit Card, Internet/Online,
Tele banking, and SMS Banking. This research is a combination of and particular
examination as an effort was made to first expand some basic knowledge on e-
banking through study of previous research on e-banking and general observation (Ali
and Islam, 2018).

1.6 Methodology
This section includes the details of research methodology used in the study.
The strategy and sampling i.e. universe and population, sampling frame, sample
selection technique and sample size are also discussed. It also includes methods and
data collection, characteristics of data and statistical tools that are used in data
analysis.
1.6.1 Research Design
The quantitative approach has been used in this study. Structured
questionnaire with cross sectional design has been used. Open-ended questionnaire
has also been included in the study. Moreover, most of the analysis and findings of the
study is based on close-ended questionnaire.
1.6.2 Sampling Design
The respondents were the customers of Everest Bank Limited in
Birendranagar of Surkhet. The respondents have been selected using random sampling
method.
1.6.3 Universe and Sample Size
The term universe refers to the total of items or units in any field of inquiry.
Universe of this study were all the customers of Everest Bank Limited in
Birendranagar of Surkhet. Among the total respondents, 75 have been selected for the
study.
1.6.4 Data Collection
The required data have been collected through primary and secondary source.
Journals, brochures, working paper, literature review are the main source of secondary
data. The main source of data collection was primary data which were collected
through questionnaire that were asked to the respondents on the response of the
clients on the service delivery system of Everest Bank Limited.

1.6.5 Data Collection Strategy

Cross sectional research design has been used to collect the information from
the respondents. Structured questionnaire has been used for information collection
from the respondents.

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1.6.6 Tools of Collecting Primary Data
Primary data have been collected using structured quantitative strategy. Survey
research design was selected to collect primary data.
1.6.7 Tools of Collecting Secondary Data
Secondary data were collected different websites of online published journals,
articles, books, unpublished thesis. These were obtained through library, e-library and
different Google search engine.
1.6.8 Questionnaire Development
Questionnaire has been developed in Nepali and English language. Some
questions were self-developed and some have been adopted from previous researches.
Most of the questions have been formulated in close-ended patterns. Some questions
have been formulated in yes/no format and open-ended structure in the questionnaire.
To collect information from the respondents, respondent profile questions and subject
related questions were used.
1.6.9 Questionnaire Administration
Direct communication has been made with the respondents to collect
information and discuss about the survey work. Then the respondents were requested
to set the proper time for visit. Sample size of the survey was 75 customers who were
involved in Everest Bank Limited. Questionnaire were self-administered to the
respondents and discussed individually. Based on this, all the questions were self-
filled up.
1.7 Limitations of the Study
Today's world is dynamic. Everything existing here is of limited character.
Every principle, role, formula and conditions are applied within limitations. Likewise,
this study cannot escape from limitations. Therefore, the limitations of this study are
as follows:
1. This study is for partial fulfillment of Bachelor's in Business Studies course of
Mid-western University (MU). So, it may not be useful for other aspects.
2. Time and resource constraints are other limitations of the study.
3. This study is limited to the responses of the clients on the service delivery
system of Everest Bank Limited.
4. The study was conducted in Birendranagar of Surkhet. Thus, the result will not
be applicable to other banks.
5. The respondents are limited to 75 customers of Everest Bank Limited.
1.8 Organization of the Study

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 This study has been organized within the following chapters:
Chapter - I: Introduction
Chapter I includes the background of the study, justification of the study,
objective of the study, research question of the study, conceptual framework of the
study, research methodology, limitations of the study and organization of the study.
This chapter includes source of data (Primary source and secondary source),
population of the study, sample size of the study, study area/ name of the organization,
sampling strategy, research design, development of data collection tool, mechanism
for research question administration.
Chapter - II: Data Presentation and Analysis
Third chapter includes the presentation an analysis of data as well as the major
findings of the study.
Chapter - III: Summary and Recommendations
This chapter consists of the summary of the study and the conclusion as well
as the recommendations of the study.

CHAPTER - II
DATA PRESENTATION AND ANALYSIS
The data was obtained from the customers of Everest Bank Limited in
Birendranagar of Surkhet. The data were obtained from the primary sources.

9
Questionnaire was used to collect data from the customers. The data are presented as
follows:

2.1 Age Status of the Respondents

This question was designed to measure the age of the respondents. To collect
the information from the respondents on age, 15-24 years, 25-34 years, 35-44 years
and 45 years and above options were used. The following table shows the detail
information of the respondents on the basis of age.
Table 1: Age Status of the Respondents
Variable Frequency Percent
15-24 years 15 20.00
25-34 years 21 28.00
35-44 years 29 38.67
45 years and above 10 13.33
Total 75 100.00
Source: Field Survey, 2075
Table 1 shows that 15(20 percent) of the respondents were 15-24 years of age,
21(28 percent) were 25-34 years of age, 29(38.67 percent) were 35-44 years of age
and 10(13.33 percent) of the respondents were 45 years and above of age. It shows
that majority of the respondents were 35-44 years of age.
The above data have also been presented in figure as follows:

Figure 2: Age Status of the Respondents

2.2 Gender Status of the Respondents

This question was designed to measure the gender of the respondents. To
collect the information from the respondents on gender, male and female options were
used. The following table shows the detail information of the respondents on the basis
of gender.

10
Table 2: Gender Status of the Respondents
Variable Frequency Percent
Male 39 52.00
Female 36 48.00
Total 75 100.00
Source: Field Survey, 2075
Table 2 shows that 39(52 percent) of the respondents were males and 36(48
percent) of the respondents were females. It shows that majority of the respondents
were males.
The above data have also been presented in figure as follows:

Figure 3: Gender Status of the Respondents

2.3 Caste Status of the Respondents

This question was designed to measure the caste of the respondents. To collect
the information from the respondents on caste, Brahamin, Chhetri, Janajati and Dalit
options were used. The following table shows the detail information of the
respondents on the basis of caste.
Table 3: Caste Status of the Respondents
Variable Frequency Percent
Brahamin 19 25.33
Chhetri 26 34.67
Janajati 17 22.67
Dalit 13 17.33
Total 75 100.00
Source: Field Survey, 2075
Table 3 shows that 19(25.33 percent) of the respondents were Brahamins,
26(34.67 percent) were Chhetris, 17(22.67 percent) were Janajatis and 13(17.33

11
percent) of the respondents were Dalits. It shows that majority of the respondents
were Chhetris and a few of the respondents were Dalits.
The caste of the respondents has also been presented in figure as follows:

Figure 4: Caste Status of the Respondents

2.4 Religious Status of the Respondents

This question was designed to measure the age of the respondents. To collect
the information from the respondents on religion, Hindu, Buddhist, Christian and
Others options were used. The following table shows the detail information of the
respondents on the basis of religion.
Table 4: Religious Status of the Respondents
Variable Frequency Percent
Hindu 45 60.00
Buddhist 17 22.67
Christian 13 17.33
Others 0 0.00
Total 75 100.00
Source: Field Survey, 2075
Table 4 shows that 45(60 percent) of the respondents were Hindus, 17(22.67
percent) were Buddhists and 13(17.33 percent) of the respondents were Christians.
This shows that majority of the respondents were Hindus.
The religion of the respondents has also been presented in figure as follows:

12
Figure 5: Religious Status of the Respondents

2.5 Marital Status of the Respondents

This question was designed to measure the marital status of the respondents.
To collect the information from the respondents on marital status, unmarried, married
and others options were used. The following table shows the detail information of the
respondents on the basis of marital status.
Table 5: Marital Status of the Respondents
Variable Frequency Percent
Unmarried 19 25.33
Married 56 74.67
Total 75 100.00
Source: Field Survey, 2075
Table 5 shows that 19(25.33 percent) of the respondents were unmarried and
56(74.67 percent) were married This shows that majority of the respondents were
married.
The marital status of the respondents has also been presented in figure as
follows:

Figure 6: Marital Status of the Respondents

2.6 Family Status of the Respondents

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 This question was designed to measure the family status of the respondents. To
collect the information from the respondents on the type of family, nuclear and joint
options were used. The following table shows the detail information of the
respondents on the basis of family status.
Table 6: Family Status of the Respondents
Variable Frequency Percent
Nuclear 66 88.00
Joint 9 12.00
Total 75 100.00
Source: Field Survey, 2075
Table 6 shows that 66(88 percent) of the respondents belonged to nuclear
family and a few 9(12 percent) of the respondents belonged to joint families. This
shows that most of the respondents belonged to nuclear families.
The family type of the respondents is also presented in figure as follows:

Figure 7: Family Status of the Respondents

2.7 Academic Qualification of the Respondents

This question was designed to measure the academic qualification of the
respondents. To collect the information from the respondents on academic
qualification, illiterate, primary, secondary and higher options were used. The
following table shows the detail information of the respondents on the basis of
academic qualification.
Table 7: Academic Qualification of the Respondents

Variable Frequency Percent

Illiterate 17 22.67
Primary 11 14.67
Secondary 23 30.66
Higher 24 32.00

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 Total 75 100.00
Source: Field Survey, 2075
Table 7 shows that 17(22.67 percent) of the respondents were illiterate,
11(14.67 percent) had passed primary level, 23(30.66 percent) had passed secondary
level and 24(32 percent) of the respondents had passed higher level. It shows that
majority of the respondents had passed higher level.
The academic qualification of the respondents has also been presented in
figure as follows:

Figure 8: Academic Qualification of the Respondents

2.8 Occupation of the Respondents

This question was designed to measure the occupation of the respondents. To
collect the information from the respondents on occupation, job, business, agriculture
and others options were used. The following table shows the detail information of the
respondents on the basis of occupation.
Table 8: Occupation of the Respondents

Variable Frequency Percent

Job 22 29.33
Business 26 34.67
Agriculture 13 17.33
Others 14 18.67
Total 75 100.00
Source: Field Survey, 2075
Table 8 shows that 22(29.33 percent) of the respondents had job, 26(34.67
percent) had business, 13(17.33 percent) had agriculture and 14(18.67 percent) of the
respondents had other occupations. It shows that majority of the respondents had
business.

15
 The occupation of the respondents had also been presented in figure as
follows:

Figure 9: Occupation of the Respondents

2.9 Duration of Involvement in Everest Bank Limited

This question was designed to measure the duration of involvement in Everest
Bank Limited. To collect the information from the respondents on the duration of
involvement in Everest Bank Limited, less than a year and more than a year options
were used. The following table shows the detail information of the respondents on the
basis of duration of involvement in Everest Bank Limited.
Table 9: Duration of Involvement in Everest Bank Limited
Variable Frequency Percent
Less than a year 19 25.33
More than a year 56 74.67
Total 75 100.00
Source: Field Survey, 2075
Table 9 shows that 19(25.33 percent) of the respondents were involved in
Everest Bank Limited for less than a year and 56(74.67 percent) of the respondents
were involved in Everest Bank Limited for more than a year. It shows that majority of
the respondents were involved in the Everest Bank Limited for more than a year.
The above data have also been presented in figure as follows:

16
Figure 10: Duration of Involvement in Everest Bank Limited

2.10 Type of Deposit in the Everest Bank Limited

This question was designed to measure the type of deposit in Everest Bank
Limited. To collect the information from the respondents on the type of deposit in
Everest Bank Limited, fixed, current, savings and others options were used. The
following table shows the detail information of the respondents on the basis of type of
deposit in Everest Bank Limited.
Table 10: Type of Deposit in Everest Bank Limited
Variable Frequency Percent
Fixed 7 9.33
Current 12 16.00
Saving 42 56.00
Others 14 18.67
Total 75 100.00
Source: Field Survey, 2075
Table 10 shows that 7(9.33 percent) of the respondents have fixed deposit,
12(16 percent) have current deposit, 42(56 percent) have saving deposit and 14(18.67
percent) of the respondents have other deposits in Everest Bank Limited. It shows that
majority of the respondents have saving deposit in Everest Bank Limited.
The above data have also been presented in figure as follows:

Figure 11: Type of Deposit in Everest Bank Limited

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2.11 Time of Depositing Money in Everest Bank Limited
This question was designed to measure the time of depositing money in
Everest Bank Limited. To collect the information from the respondents on the time of
depositing money in Everest Bank Limited, daily, weekly, monthly and yearly options
were used. The following table shows the detail information of the respondents on the
basis of the time of depositing money in Everest Bank Limited.
Table 11: Time of Depositing Money in Everest Bank Limited
Variable Frequency Percent
Daily 14 18.67
Weekly 11 14.67
Monthly 31 41.33
Yearly 19 25.33
Total 75 100.00
Source: Field Survey, 2075
Table 11 shows that 14(18.67 percent) of the respondents deposit money daily,
11(14.67 percent) of the respondents deposit money weekly, 31(41.33 percent) deposit
money monthly and 19(25.33 percent) of the respondents deposit money yearly in
Everest Bank Limited. It shows that majority of the respondents deposit money
monthly in Everest Bank Limited.
The above data have also been presented in figure as follows:

Figure 12: Time of Depositing Money in the Financial Institution

2.12 Appropriateness of Interest Rate on Deposit

This question was designed to measure the appropriateness of interest rate on
deposit. To collect the information from the respondents on the appropriateness of
interest rate on deposit, yes and no options were used. The following table shows the

18
detail information of the respondents on the basis of appropriateness of interest rate
on deposit.

Table 12: Appropriateness of Interest Rate on Deposit

Variable Frequency Percent

Yes 64 85.33
No 11 14.67
Total 75 100.00
Source: Field Survey, 2075
Table 12 shows that 64(85.33 percent) of the respondents said that the interest
rate on deposit is appropriate and 11(14.67 percent) of the respondents said that the
interest rate on deposit is not appropriate. It shows that majority of the respondents
said that the interest rate on deposit is appropriate for them.
The above data have also been presented in figure as follows:

Figure 13: Appropriateness of Interest Rate on Deposit

2.13 Time of Withdrawal of Deposit

This question was designed to measure the time of withdrawal of deposit. To
collect the information from the respondents on the time of withdrawal of deposit,
weekly, monthly, half yearly and yearly options were used. The following table shows
the detail information of the respondents on the basis of the time of withdrawal of
deposit.
Table 13: Time of Withdrawal of Deposit
Variable Frequency Percent
Weekly 3 4.00
Monthly 29 38.67
Half yearly 33 44.00
Yearly 10 13.33

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 Total 75 100.00
Source: Field Survey, 2075
Table 13 shows that 3(4 percent) of the respondents withdraw deposit weekly,
29(38.67 percent) withdraw deposit monthly, 33(44 percent) withdraw deposit half
yearly and 10(13.33 percent) of the respondents withdraw deposit from the financial
institution yearly. It shows that majority of the respondents withdraw deposit from the
financial institution half yearly.
The above data have also been presented in figure as follows:

Figure 14: Time of Withdrawal of Deposit

2.14 Appropriateness of Deposit Facility
This question was designed to measure the appropriateness of deposit facility.
To collect the information from the respondents on the appropriateness of deposit
facility, yes and no options were used. The following table shows the detail
information of the respondents on the basis of appropriateness of deposit facility.
Table 14: Appropriateness of Deposit Facility

Variable Frequency Percent

Yes 71 94.67
No 4 5.33
Total 75 100.00
Source: Field Survey, 2075
Table 14 shows that 71(94.67 percent) of the respondents said that the deposit
facility is appropriate and 4(5.33 percent) of the respondents said that the deposit
facility is not so appropriate. It shows that the deposit facility is appropriate for
majority of the respondents.
The above data have also been presented in figure as follows:

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Figure 15: Appropriateness of Deposit Facility

2.15 Loan Taken from Everest Bank Limited

This question was designed to measure the loan taken from Everest Bank
Limited. To collect the information from the respondents on loan taken from Everest
Bank Limited, yes and no options were used. The following table shows the detail
information of the respondents on the basis of loan taken from Everest Bank Limited.
Table 15: Loan Taken from Everest Bank Limited
Variable Frequency Percent
Yes 41 54.67
No 34 45.33
Total 75 100.00
Source: Field Survey, 2075
Table 15 shows that 41(54.67 percent) of the respondents had taken loan and
34(45.33 percent) of the respondents had not taken loan from Everest Bank Limited.
It shows that majority of the respondents had taken loan from Everest Bank Limited.
The above data have also been presented in figure as follows:

Figure 16: Loan Taken from Everest Bank Limited

2.16 Amount of Loan Taken

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 This question was designed to measure the amount of loan taken from Everest
Bank Limited. To collect the information from the respondents on amount of loan
taken from Everest Bank Limited, less than Rs. 1,00,000 and more than Rs. 1,00,000
options were used. The following table shows the detail information of the
respondents on the basis of amount of loan taken from Everest Bank Limited.
Table 16: Amount of Loan Taken

Variable Frequency Percent

Less than Rs. 1,00,000 22 53.66
More than Rs. 1,00,000 19 46.34
Total 41 100.00
Source: Field Survey, 2075
Table 16 shows that 22(53.66 percent) of the respondents had taken the loan of
less than Rs. 1,00,000 and 19(46.34 percent) of the respondents had taken the loan of
more than Rs. 1,00,000 from Everest Bank Limited. It shows that majority of the
respondents had taken the loan of less than Rs. 1,00,000 from Everest Bank Limited.
The above data have also been presented in figure as follows:

Figure 17: Amount of Loan Taken

2.17 Interest Rate on Loan

This question was designed to measure the interest rate on loan taken from
Everest Bank Limited. To collect the information from the respondents on the interest
rate on loan, minimum, maximum and appropriate options were used. The following
table shows the detail information of the respondents on the basis of interest rate on
loan taken from Everest Bank Limited.

Table 17: Interest Rate on Loan

Variable Frequency Percent

Minimum 18 43.9

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 Maximum 11 26.83
Appropriate 12 29.27
Total 41 100.00
Source: Field Survey, 2075
Table 17 shows that 18(43.9 percent) of the respondents said that the interest
rate on loan is minimum, 11(26.83 percent) said that the interest rate on loan is
maximum and 29.27 percent) of the respondents said that the interest rate on loan is
appropriate. It shows that majority of the respondents said that the interest rate on
loan is minimum.
The above data have also been presented in figure as follows:

Figure 18: Interest Rate on Loan

2.18 Time of Repayment of Loan

This question was designed to measure the time of repayment of loan taken.
To collect the information from the respondents on the time of repayment of loan
taken from the financial institutions, monthly, half yearly, yearly and installment basis
options were used. The following table shows the detail information of the
respondents on the basis of the time of repayment of loan taken from the financial
institution.

Table 18: Time of Repayment of Loan

Variable Frequency Percent

Monthly 13 31.71
Half yearly 12 29.27

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 Yearly 9 21.95
Installment basis 7 17.07
Total 41 100.00
Source: Field Survey, 2075
Table 18 shows that 13(31.71 percent) of the respondents repay the loan
monthly, 12(29.77 percent) repay the loan half yearly, 9(21.95 percent) repay the loan
yearly and 7(17.07 percent) of the respondents repay the loan on installment basis. It
shows that majority of the respondents repay the loan on monthly basis.
The above data have also been presented in figure as follows:

Figure 19: Time of Repayment of Loan

2.19 Appropriateness of Loan/Credit Facility

This question was designed to measure appropriateness of loan/credit facility.
To collect the information from the respondents on the appropriateness of loan/credit
facility, yes and no options were used. The following table shows the detail
information of the respondents on the basis of the appropriateness of loan/credit
facility.

Table 19: Appropriateness of Loan/Credit Facility

Variable Frequency Percent

Yes 61 81.33
No 14 18.67
Total 75 100.00

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Source: Field Survey, 2075
Table 19 shows that 61(81.33 percent) of the respondents said that the
loan/credit facility is appropriate and 14(18.67 percent) of the respondents said that
the loan/credit facility is not appropriate. It shows that majority of the respondents
said that the loan/credit facility is appropriate.
The above data have also been presented in figure as follows:

Figure 20: Appropriateness of Loan/Credit Facility

2.20 Use of Internet Banking

This question was designed to measure the use of internet banking by the
respondents. To collect the information from the respondents on use of internet
banking, yes and no options were used. The following table shows the detail
information of the respondents on the basis of the use of internet banking.
Table 20: Use of Internet Banking
Variable Frequency Percent
Yes 63 84.00
No 12 16.00
Total 75 100.00
Source: Field Survey, 2075
Table 20 shows that 63(84 percent) of the respondents use internet banking
and 12(16 percent) of the respondents do not use internet banking. It shows that the
majority of the respondents use internet banking.
The above data have also been presented in figure as follows:

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Figure 21: Use of Internet Banking

2.21 Security of Internet Banking

This question was designed to measure the security of internet banking. To
collect the information from the respondents on the security of internet banking, very
secure, secure, not so secure and not sure options were used. The following table
shows the detail information of the respondents on the basis of security of internet
banking.
Table 21: Security of Internet Banking
Variable Frequency Percent
Very secure 33 52.38
Secure 21 33.33
Not so secure 6 9.53
Not sure 3 4.76
Total 63 100.00
Source: Field Survey, 2075
Table 21 shows that 33(52.38 percent) of the respondents said that the internet
banking is very secure, 21(33.33 percent) said that the internet banking is secure,
6(9.53 percent) said that the internet banking is not so secure and 3(4.76 percent) of
the respondents were not sure about the security of internet banking. It shows that
majority of the respondents said that the internet banking is secure.
The above data have also been presented in figure as follows:

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Figure 22: Security of Internet Banking

2.22 Duration of Using Internet Banking

This question was designed to measure the duration of using internet banking.
To collect the information from the respondents on the duration of using internet
banking, sometimes, frequently and often options were used. The following table
shows the detail information of the respondents on the basis of duration of using
internet banking.
Table 22: Duration of Using Internet Banking
Variable Frequency Percent
Sometimes 13 20.64
Frequently 33 52.38
Often 17 26.98
Total 63 100.00
Source: Field Survey, 2075
Table 22 shows that 13(20.64 percent) of the respondents sometimes use
internet banking, 33(52.38 percent) frequently use internet banking and 17(26.98
percent) of the respondents often use internet banking. It shows that majority of the
respondents frequently use internet banking.
The above data have also been presented in figure as follows:

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Figure 23: Duration of Using Internet Banking

2.23 Privacy of Internet Banking

This question was designed to measure the privacy of internet banking. To
collect the information from the respondents on the privacy of internet banking, very
private and not so private options were used. The following table shows the detail
information of the respondents on the basis of privacy of internet banking.
Table 23: Privacy of Internet Banking
Variable Frequency Percent
Very private 52 82.54
Not so private 11 17.46
Total 63 100.00
Source: Field Survey, 2075
Table 23 shows that 52(82.54 percent) of the respondents said that the internet
banking is very private and 11(17.46 percent) of the respondents said that the internet
banking is not so private. It shows that majority of the respondents said that the
internet banking is very private.
The above data have also been presented in figure as follows:

Figure 24: Privacy of Internet Banking

2.24 Increment in Capital due to Internet Banking

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 This question was designed to measure the increment in capital due to internet
banking. To collect the information from the respondents on the increment of capital
due to internet banking, yes and no options were used. The following table shows the
detail information of the respondents on the basis of increment in capital due to
internet banking.
Table 24: Increment in Capital due to Internet Banking
Variable Frequency Percent
Yes 59 93.65
No 4 6.35
Total 63 100.00
Source: Field Survey, 2075
Table 24 shows that 59(percent) of the respondents have increment in capital
due to internet banking and 4(6.35 percent) of the respondents have no increment in
capital due to internet banking. It shows that majority of the respondents have
increment in capital due to internet banking.
The above data have also been presented in figure as follows:

Figure 25: Increment in Capital due to Internet Banking

2.25 Findings
On the basis of the presentation and analysis of data, the following findings
have been drawn:
1. The study found that 15(20 percent) of the respondents were 15-24 years of
age, 21(28 percent) were 25-34 years of age, 29(38.67 percent) were 35-44
years of age and 10(13.33 percent) of the respondents were 45 years and above
of age. This shows that majority of the respondents were 35-44 years of age.

29
2. Among the respondents, 39(52 percent) were males and 36(48 percent) of the
respondents were females. It is found that majority of the respondents were
males.
3. The study found that 19(25.33 percent) of the respondents were Brahamins,
26(34.67 percent) were Chhetris, 17(22.67 percent) were Janajatis and
13(17.33 percent) of the respondents were Dalits. This shows that majority of
the respondents were Chhetris in the study area.
4. In this study, 45(60 percent) of the respondents were Hindus, 17(22.67
percent) were Buddhists and 13(17.33 percent) of the respondents were
Christians. The study found that most of the respondents were Hindus.
5. Among the respondents, 19(25.33 percent) were unmarried and 56(74.67
percent) were married. It is found that majority of the respondents were
married.
6. The study found that 66(88 percent) of the respondents belonged to nuclear
family and a few 9(12 percent) of the respondents belonged to joint families.
The study shows that most of the respondents belonged to nuclear families.
7. In this study, 17(22.67 percent) of the respondents were illiterate, 11(14.67
percent) had passed primary level, 23(30.66 percent) had passed secondary
level and 24(32 percent) of the respondents had passed higher level. This
shows that majority of the respondents were higher level passed.
8. The study found that 22(29.33 percent) of the respondents had job, 26(34.67
percent) had business, 13(17.33 percent) had agriculture and 14(18.67 percent)
of the respondents had other occupations. It can be found that majority of the
respondents were involved in business.
9. The study found that 19(25.33 percent) of the respondents were involved in
Everest Bank Limited for less than a year and 56(74.67 percent) of the
respondents were involved in Everest Bank Limited for more than a year.
Majority of the respondents were involved in Everest bank limited for more
than a year.
10. Among the respondents, 7(9.33 percent) have fixed deposit, 12(16 percent)
have current deposit, 42(56 percent) have saving deposit and 14(18.67
percent) of the respondents have other deposits in Everest Bank Limited. Most
of the respondents had saving deposit in Everest Bank Limited.

30
11. The study found that 14(18.67 percent) of the respondents deposit money
daily, 11(14.67 percent) of the respondents deposit money weekly, 31(41.33
percent) deposit money monthly and 19(25.33 percent) of the respondents
deposit money yearly in Everest Bank Limited. Most of the respondents were
found to deposit money monthly.
12. The study found that 64(85.33 percent) of the respondents said that the interest
rate on deposit is appropriate and 11(14.67 percent) of the respondents said
that the interest rate on deposit is not appropriate. Majority of the respondents
said that the interest rate on deposit is appropriate.
13. Among the respondents, 3(4 percent) of the respondents withdraw deposit
weekly, 29(38.67 percent) withdraw deposit monthly, 33(44 percent) withdraw
deposit half yearly and 10(13.33 percent) of the respondents withdraw deposit
from Everest Bank Limited yearly. Majority of the respondents withdraw
deposit half yearly.
14. The study found that 71(94.67 percent) of the respondents said that the deposit
facility is appropriate and 4(5.33 percent) of the respondents said that the
deposit facility is not so appropriate. Most of the respondents said that the
deposit facility is appropriate.
15. In this study, 41(54.67 percent) of the respondents had taken loan and
34(45.33 percent) of the respondents had not taken loan from Everest Bank
Limited. It shows that majority of the respondents had taken loan from Everest
Bank Limited.
16. Among the respondents who had taken loan, 22(53.66 percent) had taken the
loan of less than Rs. 1,00,000 and 19(46.34 percent) of the respondents had
taken the loan of more than Rs. 1,00,000 from Everest Bank Limited. Most of
the respondents had taken the loan of less than Rs. 1,00,000.
17. The study found that 18(43.9 percent) of the respondents said that the interest
rate on loan is minimum, 11(26.83 percent) said that the interest rate on loan is
maximum and 15(29.27 percent) of the respondents said that the interest rate
on loan is appropriate. It shows that majority of the respondents said that the
interest rate on loan is minimum.
18. The study found that 13(31.71 percent) of the respondents repay the loan
monthly, 12(29.77 percent) repay the loan half yearly, 9(21.95 percent) repay

31
 the loan yearly and 7(17.07 percent) of the respondents repay the loan on
installment basis. Most of the respondents repay the loan monthly.
19. Among the respondents, 61(81.33 percent) said that the loan/credit facility is
appropriate and 14(18.67 percent) of the respondents said that the loan/credit
facility is not appropriate. This shows that majority of the respondents said
that the loan/credit facility is appropriate.
20. Among the respondents, 63(84 percent) use internet banking and 12(16
percent) of the respondents do not use internet banking. Majority of the
respondents use internet banking.
21. The study found that 33(52.38 percent) of the respondents said that the
internet banking is very secure, 21(33.33 percent) said that the internet
banking is secure, 6(9.53 percent) said that the internet banking is not so
secure and 3(4.76 percent) of the respondents were not sure about the security
of internet banking. Most of the respondents said the the internet banking is
secure.
22. In this study, 13(20.64 percent) of the respondents sometimes use internet
banking, 33(52.38 percent) frequently use internet banking and 17(26.98
percent) of the respondents often use internet banking. This shows that
majority of the respondents frequently use internet banking.
23. The study found that 52(82.54 percent) of the respondents said that the
internet banking is very private and 11(17.46 percent) of the respondents said
that the internet banking is not so private. Majority of the respondents said that
the internet banking is private.
24. Among the respondents, 59(percent) have increment in capital due to internet
banking and 4(6.35 percent) of the respondents have no increment in capital
due to internet banking. It can be found that majority of the respondents had
increment in capital due to internet banking.

CHAPTER - III
SUMMARY, CONCLUSION AND RECOMMENDATIONS

3.1 Summary

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 The topic of this study was "Client Response towards Service Delivery of
Everest Bank in Birendranagar of Surkhet" The purpose of this study was to measure
the role of Everest Bank Limited on formation and mobilization of capita. The
population of this study was all the customers of Everest Bank Limited in
Birendranagar of Surkhet. This study aims to identify the services provided by
Everest Bank Limited. To measure the service delivery of Everest Bank Limited,
deposit/saving, loan/credit facility and internet banking were taken as the independent
variables and service delivery was taken as the dependent variable.

This study was divided into three chapters with different sub-topics. The
required data were collected through primary and secondary sources. Primary data
were collected through the survey questionnaire and the secondary data were
collected from previous researches, journals, books, articles and newspapers. To
collect the primary data, survey questionnaire has been used. Questionnaire was
formed by including personal information of the customers of Everest Bank Limited
and the subject related variable. Most questions were formulated in closed-ended
pattern. Simple random method was used to select the sample for this study. The
purpose of sampling is to secure a representation group which enables the researcher
to gain information about the whole population. The information was collected from
the customers of Everest Bank Limited in Birendranagar of Surkhet. The data were
analyzed using different tables and figures to find out the service delivery of Everest
Bank Limited. After analysis and presentation of data, the conclusion has been made.

3.2 Conclusion

This study was conducted to find out the service delivery of Everest Bank
Limited. For this study, 75 customers of Everest Bank Limited were taken as the
respondents. The study concludes that the respondents were 15 to 45 years and above
of age. Most of the respondents were married. The respondents were involved in
different occupations like job, business, agriculture and others. Majority of the
respondents belonged to nuclear families and most of the respondents had passed
higher level of education.

The study concludes that majority of the respondents were involved in Everest
Bank Limited for more than a year. Most of the respondents have saving deposit in the
bank. Some of the respondents also have fixed, current and other deposits in the bank.

33
The respondents deposit money daily, weekly, monthly and yearly in the bank. The
interest rate on deposit is appropriate and the respondents withdraw the money
weekly, monthly, half yearly and yearly from the bank. The deposit facility provided
by the bank is appropriate for most of the respondents. Majority of the respondents
had taken loan from the bank and most of the respondents had taken the loan of less
than Rs. 1,00,000. For majority of the respondents, the interest rate on loan is
minimum but some of the respondents think that the interest rate on loan is maximum.
The respondents repay the loan on monthly, half yearly, yearly and installment basis.
The loan and the credit facility for majority of the respondents is appropriate. Most of
the respondents' use internet banking and majority of the respondents said that the
internet banking is very secure. Most of the respondents frequently use internet
banking and the internet banking is private also. Some of the respondents have
increment in their capital due to the use of internet banking.

The study concludes that the respondents have utilized the various facilities of
Everest Bank Limited and the respondents were satisfied with the services provided
by the bank.

3.3 Recommendations

On the basis of the findings of the study, some recommendations are made
which are as follows:

1. The findings of the study reveal that 11(14.67 percent) of the respondents said
that the interest rate on deposit is not appropriate. Therefore, it is suggested to
the bank that it should provide appropriate interest rate on deposit.
2. The findings of the study presents that 11(26.83 percent) said that the interest
rate on loan is maximum. Therefore, it is suggested to the bank that it should
reduce its interest rate on loan and credit facilities.
3. The findings of the study show that 14(18.67 percent) of the respondents said
that the loan/credit facility is not appropriate. It is suggested to the bank that it
should provide appropriate and flexible loan/credit facilities to its customers.
4. The findings suggest that some 6(9.53 percent) of the respondents said that the
internet banking is not so secure. Therefore, the internet banking of Everest
Bank Limited should be made more secure.

34