CREDIT ADMINISTRATION DEPARTMENT

AT
NMB BANK LIMITED

A Project Work Report

Submitted By:

Reema Chaudhary
B.B.S. 4th year
Symbol No: 700380177
T.U. Registration No:5-2-37-893-2017

Campus
Padma Kanya Multiple Campus

In the partial fulfillment of the requirements for the Degree of

Bachelor of Business Studies (BBS)

Submitted To
Dean Office
Faculty of Management
TRIBHUVAN UNIVERSITY
Kathmandu, Nepal

July, 2024
 DECLARATION

I hereby declare that the project work entitled " Credit Administration
Department At NMB Bank Limited " submitted to the faculty of
Management, Tribhuvan University, Kathmandu is an original piece of work under
the supervision of Mr. Surya Kumar Nepal in Padma Kanya Multiple
Campus, Bagbazar, Kathmandu and is submitted in partial fulfillment of the
requirements for the award of the degree of Bachelor of Business Studies (BBS).
This project work report has not been submitted to any other university or
institution for the award of any degree.

Signature
Reema Chaudhary
July, 2024

II
III
 ACKNOWLEDGEMENT

The preparation of this project report titled "A PROJECT REPORT ON CREDIT
ADMINISTRATION DEPARTMENT" was a mandatory requirement for the
completion of the Bachelor of Business Studies degree at Tribhuvan University.
This research endeavor has provided me with a comprehensive understanding of the
banking industry and its intricate operations within the context of Nepal's banking
system.

During project work, I received assistance from a variety of individuals in many

sectors, and I would like to thank everyone of them for their valuable contributions.

I'd like to express my heartfelt gratitude to Mr. Taranath Timalsina of NMB Bank
Limited, who assisted with the project's preparation by providing intelligent
counsel, a wealth of ideas, and valuable time.

Similarly, I would like to express my heartfelt gratitude to my mentor for their

invaluable assistance and kind support. I am also deeply thankful to my family,
friends, and colleagues for their encouragement in completing this project.

Finally, last but not the least I express my sincere thanks to all my well-wishers.

Reema Chaudhary
BBS 4th Year
Padma Kanya Multiple Campus

IV
 ABSTRACT

This report is based on the “CREDIT ADMINISTRATION DEPARTMENT AT

NMB BANK LIMITED” brief information. An overview of the NMB bank in
Nepal's history, services, and goals is included in this report's introductory section.
One of Nepal's "A" class banks, NMB is also susceptible to increased competition,
which provides challenges to the banking industry. For the purpose
of maintaining the relationship with their clients and their activities, "CAD" of
NMB has adopted a number of important plans and strategies, which are explained
in this report. It includes topics like; introduction, loan process, loan settlement,
documentations. The study opens with an overview of NMB Bank, outlining its
history, goal, and vision as well as its products and services and organizational
structure. Direct interaction and questioning were the two steps of data collection
used to prepare this report.

Keywords: Human resource, NMB bank, bank, strategies, training and

development, employees, product and service, organizational structure.

V
Table of Contents
TITLE
DECLARATION.............................................................................................................................
SUPERVISOR’S RECOMMENDATION......................................................................................
ENDORSEMENT...........................................................................................................................
ACKNOWLEDGEMENT...............................................................................................................
ABSTRACT...................................................................................................................................
LIST OF TABLES.........................................................................................................................
LIST OF FIGURES......................................................................................................................
LIST OF ABBREVIATIONS.........................................................................................................
1.0 CHAPTER I: INTRODUCTION..............................................................................................
1.1 Background of the study...................................................................................................
1.2 Objectives..........................................................................................................................
1.3 Methodology.....................................................................................................................
1.4 Limitations.............................................................................................................................
2.0 CHAPTER II : INTRODUCTION OF BANKING INDUSTRIES..........................................
2.1 Background............................................................................................................................
3.0 CHAPTER III : INTRODUCTION OF NMB BANK LIMITED.............................................
3.1 Organization Background......................................................................................................
3.2 Key Facts About NMB Ltd....................................................................................................
3.3 Organization Vision...............................................................................................................
3.4 Organization Mission.............................................................................................................
3.5 Organization Values...............................................................................................................
3.6 Services Provided by NMB...................................................................................................
3.7 Strategic Objectives of NMB.................................................................................................
4.0 CHAPTER IV : ANALYSIS OF ACTIVITIES PERFORMED..............................................
4.1 Background..........................................................................................................................
4.2 Activity Performed in CAD.................................................................................................
5.0 CHAPTER V : CONCLUSION AND LESSON LEARNED.................................................
5.1 Summary..............................................................................................................................
5.2 Lesson Learnt.......................................................................................................................
5.3 Conclusion...........................................................................................................................
6.0 RECOMMENDATION...........................................................................................................
7.0 REFERENCES........................................................................................................................
8.0 APPENDICES.........................................................................................................................
8.1 Appendix A: International Day of Happiness......................................................................
8.2 Appendix B: World Day for Cultural Diversity in NMB.....................................................
 LIST OF TABLES
Table 1 :Different Class banks and its branches…………………………….…4
Table 2 : Banking History……………………………………………………...5
Table 3: About NMB Bank …………………………………………………….6

vii
 LIST OF FIGURES

Figure 1: Organizational Structure.......................................................................................

viii
 LIST OF ABBREVIATIONS

BAFIA Bank and Financial Institution Act

BBS Bachelor In Business Studies
CA Company Act
CEO Chief Executive Officer
CSD Customer Service Department
DEMAT Dematerialization
HR Human Resource
HRD Human Resource Department
MIS Management Information System
NID National Identifier
NIDC Nepal Industrial Development Corporation
PF Provident Fund
CAD Credit Administration Department
Ltd Limited
NRB Nepal Rastriya Bank
IRR Insurance Regulatory Report
LOS Loan Origination System
CIB Client Information Bureau
KSKL Karja Suchana Kendra Limited
SWOT Strengths Weakness Opportunities and Threats
RM Relationship Manager
MIS Information Management System

ix
 1.0 CHAPTER I: INTRODUCTION
1.1 Background of the study
The Credit Administration Department at a bank plays a pivotal role in managing the
bank's credit portfolio and ensuring the integrity of its lending processes. This department
is responsible for overseeing all aspects of credit administration, from the initial approval
of loans to the ongoing monitoring and management of credit accounts. It ensures that all
loan documentation is complete and accurate, complies with regulatory requirements, and
is maintained in a secure and accessible manner. The department also tracks the
performance of the credit portfolio, identifies and mitigates risks, and ensures timely
collection of payments. By maintaining rigorous standards and procedures, the Credit
Administration Department safeguards the bank's financial health and contributes to its
overall stability and profitability.

The department's responsibilities extend to the periodic review of loan covenants and the
preparation of credit reports for management and regulatory bodies. It collaborates closely
with the credit risk management team to identify potential problem loans early and to
develop strategies for their resolution. Effective communication with borrowers is also a
key function, as it helps in addressing any issues that may arise during the loan term, thus
maintaining healthy client relationships. Additionally, the department plays a critical role in
implementing new credit policies and procedures, staying abreast of regulatory changes,
and ensuring that the bank's lending practices evolve in response to market conditions. By
efficiently managing these tasks, the Credit Administration Department not only helps in
minimizing losses but also in enhancing the bank’s reputation and trustworthiness in the
financial market.

1.2 Objectives
In order to identify the tasks that must be completed, some goals have been outlined for the
completion of this report. The goals are:

I. To get familiarized with the working culture and practices of the bank.
II. To understand the responsibilities and regulations of the CAD.
III. To learn about the activities performed by the CAD for their various clients.

1
1.3 Methodology
Primary sources: Information collected directly through interviews with people working
in the Credit Administration Department (CAD).
Secondary sources: Information obtained from existing materials like the NMB Bank's
website, published articles, and official banking rules.Another way to collect information is
secondary data through:
Oral histories: Information from the related personnel of CAD from past history.
Document analysis: Collecting CIB reports (generation), insurance policies updates.

1.4 Limitations
Analyzing the broad recruitment and selection process of a bank presents several
challenges. Additionally, limitations faced while preparing this report include:
 Lack of Historical Data: Absence of previous statistical data hindered trend
analysis and comparison.
 Limited Secondary Sources: Insufficient access to secondary sources restricted the
breadth of research.
 Confidentiality Issues: Sensitive information and data confidentiality prevented
detailed insights into certain aspects.
 Incomplete Data: Some data remained inaccessible or unclear, affecting the depth
of the analysis.

2
 2.0 CHAPTER II : INTRODUCTION OF BANKING INDUSTRIES
2.1 Background
The modern banking in Nepal started with the establishment of Nepal Banking Limited.
His Majesty King Tribhuvan inaugurated Napal Bank Limited on 30 th Kartik,1994B.S. (15th
November, 1937A.D.) (Investopaper, 2023).

i. Nepal Bank Limited -First Bank of Nepal

Nepal Bank Limited is the first bank of Napal and forms as the Joint Venture between the
government and the private sector. This was the only financial institution of the country
until the formation of Nepal Rastra Bank in 2013 (1956 A.D.). The government of Nepal
has 51 percent ownership of the bank. Whereas, the general public possess 49 percent
shares in Nepal Bank (Regmi, 2019).

ii. Nepal Rastra Bank as The Central Bank of Nepal

Under Nepal Rastra Bank Act 2012, the Central Bank was established in Nepal in 2013 in
B.S. named ‘Nepal Rastra Bank’. It issued the Nepalese note/currency for the First time in
2016 B.S. (Investopaper, 2020).

iii. Nepal Industrial Development Corporation

Industrial Development Centre was established in 2013 B.S. which was transformed into
Nepal Industrial Development Corporation (NIDC) in 2016 B.S. It operated as the national
development bank and main objective was to expand Nepalese Industries and Commerce
(Investopaper, 2020).

iv. Agricultural Development Bank Limited

A cooperative bank was established in year 2020 under the Cooperative Banks Act,
2019.Later in 7th Magh, 2024, the cooperative bank was converted into Agriculture
Development bank Limited. It was formed to induce the development of agriculture sector
in Nepal. The bank has 51 percent share of Government of Napal and 49 percent of general
public.

v. Rastriya Banijya Bank Limited

Rastriya Banijya Bank Limited was established on 10 th Magh,2022 B.S. (23rd January 23,
1966) under the Rastriya Banijya Bank Limited Act 2021. At present the bank is operating
under Bank and Financial Institution act (BAFIA) and Company Act (CA) 2063. At its
inception it had the authorized capital of Rs 1 crores (Regmi, 2019).

3
vi. Entry of the International Banks
After the liberalization policy, Nepal Arab Bank (now called ‘Nabil bank’) was established
in 2041 B.S. (1984 A.D.). It was followed by two foreign joint venture banks, Nepal
Indosuez Bank (Nepal Investment Bank Limited) and Nepal Grindlays Bank (Standard
Chartered Bank Limited) in 1986 and 19887 respectively. Within a Decade of the inception
of Nabil Bank, 7 more Commercial Bank were established.

vii. Present Status

The current financial system of Nepal includes central bank, commercial bank,
development bank, financial companies, microfinance companies, cooperatives licensed by
the Nepal Rastra Bank to conduct limited banking business and non-government
organization doing microfinance business. The banking sector in Nepal has witnessed a
rapid change in recent years. With introduction of new technologies in banking, the finance
access has grown substantially. After Kumari Bank started e-banking service in 2002, the
era of internet banking flourished. Laxmi Bank followed Kumari Bank with its mobile
(SMS) banking in 2004. Since then, there has been swift changes in the way banking is
done in Nepal.

Until Mid-July, 2022 commercial banks have the highest number of branches (among A, B
and C class institutions) of 5,009 while development bank and Finance have 1,118 and 267
branches respectively. Similarly, microfinance institution has 5,134 total branches
(Investopaper, 2022).
Table 1: Different Class banks and its branches
Banks/BFI Class No. of BFI’s No. of Branches
Commercial banks (A) 26 5,009
Development banks (B) 17 1,118
Finance companies (C) 17 267
Micro finance (D) 66 5,134
Infrastructure Development Bank 1
Total 126 11,528

4
Table 2: Banking History
1 Central Bank of Nepal Nepal Rastra Bank 1956 A.D.
2 Nepal’s First Bank Nepal Bank Limited 1937 A.D.
3 First Development Bank Nepal Industrial 1959 A.D.
Development
Corporation
4 Nepal’s First Rural Development Bank Eastern Rural 1968 A. D.
Development Bank
5 Largest Commercial Bank in Nepal: Global IME Bank (In 2012 A. D.
terms of Paid-up Capital)
6 First Private Sector Joint Venture Nepal Arab Bank Nabil) 1984A. D.
Commercial Bank
7 Nepal’s First Regional Commercial Bank Lumbini Bank 2016 A.D.
8 Nepal’s First Commercial Bank Established Lumbini Bank 2016 A. D.
with Full Investment of Nepali Private
Investors
9 First Bank to Introduce ATM machine and Everest Bank 1994 A. D.
Debit Card in Nepal
10 First Bank to Launch internet Banking Kumari Bank 2001 A. D.
Service in Nepal
11 Bank to Introduce Credit Card in Nepal for Himalayan Bank 1993 A. D.
the First Time
12 First Bank to use Multi Currency Card in Century Commercial 2023 A. D.
Nepal Bank
13 First Bank to use Robert in Nepal Nepal SBI Bank 1993 A. D.
14 New Commercial Bank in Nepal Century Commercial 2023 A. D.
bank

(Source: www.investopaper.com)

5
 3.0 CHAPTER III : INTRODUCTION OF NMB BANK LIMITED
3.1 Organization Background
NMB Bank Limited, one of the top commercial banks in the banking sector, has been
functioning in the Nepalese financial market for more than twenty years and was granted a
"A" class financial institution license by Nepal Rastra Bank in May 2008.

“Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), which is the

Bank's largest stakeholder and holds 13.69% of its shares, and the Bank have a joint
venture agreement on 2017 September. The partnership with FMO allows NMB Bank to
take the lead in renewable energy and agribusiness as well as become the market leader in
managing environmental and social risks” (K.C. 2020).

'Bank of the Year 2017', 'Bank of the Year 2018', 'Bank of the Year 2020', and 'Bank of the
Year 2021' were all given to NMB Bank. For the first time in Nepal's history, the bank
received the honor of being named "Bank of the Year 2021 Asia" by The Banker, Financial
Times, London, in the same year (NMB Bank, n.d.).

3.2 Key Facts About NMB Ltd.

Some important facts about NMB are given below:
Table 3: About NMB bank
Company Name NMB
Bank Category ‘A’ Class Commercial Bank
CEO Sunil KC (Mar 14, 2017–)
Web Page https://www.nmb.com.np/
Founded: 2008
Headquarters: Babarmahal, Kathmandu, Nepal
Number of employees 2500+
Number of locations 202 Branches

3.3 Organization Vision

Building communities through responsible banking, favored by all stakeholders, assisting
clients and customers in achieving their financial objectives and thereby contributing to the
prosperity of Nepal.

6
 3.4 Organization Mission
i. Helping to build the perfect economy.
ii. Assisting customers and clients in achieving financial security.
iii. Maximizing the profits and wealth of the organization.
iv. Be and sustain its position as no.1 bank in Nepal.
v. Retain customers and provide the best banking services.
vi. Redesign the banking system and innovate its process for automation.
vii. Begin the first HR based culture and acculturation.

3.5 Organization Values

i. Be innovative as the according to the time.
ii. Be responsible for the necessity of the customer.
iii. Be accountable for your actions and work assigned.

(Source: www.nmb.np.com)

Figure 1: Organizational Structure

7
3.6 Services Provided by NMB
i. Account and Deposits: NMB Smart Nari Bachat Khata, NMB You-Wah! Digi savings,
NMB Investor Savings, NMB Premium Super Talab Khata, NMB Atulya Bachat Khata,
NMB Umanga Bachat are some products related to account opening and depositing
money.
ii. Loans: Electric Vehicle Loan, NMB fixed Rate home loan, Education Loan, Land
purchase loan, Loan Against Fixed Deposit (FD), NMB Kheti Karja, DARAZ NMB
Sajilo Karja are some loan services that NMB has been providing to make customer
satisfaction.
iii. Remittance: NMB Bank Sulav Remit has established remittance business relationship
with various foreign banks and foreign exchange companies which is fastest, easiest
and reliable money transfer system of NMB Bank Limited, at low charges to more than
8000+ remittance payment outlets across Nepal.
iv. Alternatives Delivery: NMB bank has upgraded their internet banking system to a
new platform such as Internet Banking for Retail, Internet Banking for Express
Banking (Corporate), Internet Banking for Express Banking (Customer).
v. DEMAT: Demat account offered by NMB Bank is a safe and secure way to keep your
stocks complimented with the ease to track your investments online.
vi. Locker Service: NMB Bank’s Safe Deposit Locker provides you with a safe and
convenient place to keep jewelries, important documents and other valuables in the safe
deposit locker with appropriate size.
NMB, account and Deposits consist of saving account, fixed deposit and recurring deposit.
Loans service has features of property loan, home loan, education loan, land purchase loan
and others. NMB also provide international funds transfer facilities. Safe Deposited Locker
is also a product of NMB with a safe and convenient place to keep a valuable. DEMAT
account offered by NMB Bank is a safe and secure way to keep stocks complimented with
the ease to track your investments online.
3.7 Strategic Objectives of NMB
i. Risk Strategy:
a) Safeguarding its identity and reputation.
b) Protection of profits and profit growth.
c) Maintaining solid balance sheet ratios.

8
ii. Selective Risk Acceptance: NMB has some rules to fill up the required documents and
information related to customer for reference to Know Your Customer (KYC)
compliance for adequate understanding of each customer, right from the time of opening
of bank accounts to the point of accessing other banking services including credits.
iii. Risk Management and Measurement: In risk management risks are appropriately
identified, evaluated and managed, considering the interrelationships between risks. This
process happens on a continuous basis.

In order to further support processes, a few tools and initiatives were taken into
consideration to further strengthen security and mitigate some risks.

9
 4.0 CHAPTER IV : ANALYSIS OF ACTIVITIES PERFORMED
4.1 Background
During the study of the Credit Administration Department (CAD), it was noted that the
department provides clear guidance on tasks and specifies the quality and types of staff
needed. Developing an effective organizational structure for asset management is essential
for identifying the skills, knowledge, and abilities required for various roles. This ensures
that personnel are well-suited to meet the needs identified during strategic planning. Highly
motivated and capable staff are expected to produce excellent work and enhance service
quality.

Agrawal (2009) defines credit administration as “a department in a bank or lending

institution that is tasked with managing the entire credit process.” The CAD is crucial for
organizational development, as it contributes to a firm’s competitiveness by overseeing the
acquisition, development, utilization, and maintenance of people, credits, and debits. This
department is involved in lending and loan recovery activities, which improve relationships
between banks and clients by addressing financial needs and protecting assets through
mechanisms such as insurance.

Typically, the CAD is divided into four teams:

1.Documentation
2.CIB Search
3.CIB Update
4.Insurance

4.2 Activity Performed in CAD

i. Daily Updates of Policy: The Credit Administration Department regularly updates
policy details for various clients. This involves reviewing system records for completeness,
checking for missing information such as insurance details, dates, and waivers. Incomplete
data is flagged, and missing details are communicated to relevant internal departments and
Relationship Managers (RMs) via email.

ii. Notification of Expired Policies: The department tracks policy expiry dates and
consults with senior staff when there is uncertainty. Expiry dates are recorded in the
internal database management system, IRR. Ensuring timely policy renewals is critical for
loan and policy continuity, with notifications sent to clients and RMs.

10
iii. Record Keeping of Hard Copies: Hard copies of policies are organized by date, and
any missing documents are rescanned and updated in the system. These records are also
sent to respective branches for reference in cases of loan recovery or accidents affecting
clients.

iv. Resending Hard Copies of Insurance Policies: Insurance records are maintained in
the system, and hard copies are dispatched to related branches when recovery actions are
required. These documents serve as backups for both insurers and insured parties, helping
to address market anomalies and recover losses.

v. Notification of Necessary Insurance Policies for Loan Recovery: Insurance policies

are crucial for loan recovery during defaults or unforeseen events. Expiry dates are
monitored, and renewals are requested as needed. The department uses internal
Management Information Systems (MIS) and Loan Origination Systems (LOS) to manage
and verify the status of these insurance policies.

vi. Generating CIB Reports: CIB reports are generated from the KSKL system based on
instructions received. These reports are sent to respective branches to assist in evaluating
client needs and loan status. The CIB report provides essential insights for loan facilities
and is updated in the LOS.

vii. Updating CIB: The CIB update process involves maintaining records of clients' loan
statuses, including past and present information in the KSKL system managed by Nepal
Rastra Bank. This includes updating client and guarantor details, such as citizenship and
addresses, to determine loan eligibility.

viii. Rechecking Post-Disbursement: After loan disbursement, the soft copies of loan
documents are reviewed to ensure all required documents, particularly insurance, are in
place. This process helps mitigate risks by ensuring that all necessary precautions have
been taken.

The Credit Administration Department provides a comprehensive working environment,

offering insights into various activities and responsibilities. Despite some challenges, the

11
experience gained in understanding CAD operations and involvement in key projects offers
valuable knowledge and practical exposure.

12
 5.0 CHAPTER V : CONCLUSION AND LESSON LEARNED
5.1 Summary
This report explores the Credit Administration Department (CAD) of a bank, highlighting
its pivotal role in managing the credit portfolio and ensuring the integrity of lending
processes. The CAD oversees all aspects of credit administration, including loan approval,
documentation, and ongoing management of credit accounts. Key responsibilities include
updating policy details, managing insurance records, generating and updating Credit
Information Bureau (CIB) reports, and ensuring proper documentation post-loan
disbursement.

The study also covers the evolution of the banking industry in Nepal, from the
establishment of the first bank, Nepal Bank Limited, to the rise of modern banking
practices and technological advancements. The historical context provides insight into the
current state of the banking sector and highlights the growth and regulatory changes that
have shaped the industry.

NMB Bank Limited, one of Nepal’s leading commercial banks, is featured as a case study
to illustrate contemporary banking practices. Established in 2008, NMB Bank has achieved
notable recognition and success, including multiple “Bank of the Year” awards. The bank’s
focus on renewable energy, agribusiness, and innovative banking services reflects its
commitment to contributing to Nepal’s economic development.

The report concludes with an analysis of the activities performed by the CAD, emphasizing
the importance of accurate documentation, technology integration, effective policy
management, and clear communication. The practical experience gained through the study
highlights the significance of professional development and understanding the operational
aspects of credit management in the banking sector.

5.2 Lesson Learnt

1. Importance of Rigorous Documentation: Effective credit administration relies
heavily on accurate and complete documentation. Regular updates and checks are
essential to avoid risks and ensure compliance with regulatory standards.

2. Role of Technology in Efficiency: The integration of technology, such as internal

databases and Management Information Systems (MIS), plays a crucial role in

13
 streamlining credit administration processes. It aids in tracking, updating, and
managing credit-related data efficiently.

3. Significance of Policy Management: Timely renewal and proper management of

insurance policies and other credit-related documents are vital for mitigating risks
and maintaining loan continuity.

4. Communication and Coordination: Effective communication with internal

departments, Relationship Managers (RMs), and clients is key to addressing issues
promptly and maintaining healthy client relationships.

5. Historical Perspective on Banking: Understanding the evolution of the banking

industry provides valuable insights into current practices and challenges. The
historical development of banking institutions in Nepal highlights the progress
made and the role of regulatory changes in shaping the industry.

6. Professional Development: The internship provided practical exposure to the

banking sector, enhancing understanding of professional practices and offering
valuable lessons in the operational aspects of credit management.

Overall, the study and experience gained underscore the importance of meticulous credit
administration, effective use of technology, and the need for continuous learning and
adaptation in the ever-evolving banking environment.

5.3 Conclusion
The study of the Credit Administration Department (CAD) reveals its critical role in
managing the bank's credit portfolio and ensuring the integrity of its lending processes. The
CAD is integral to the bank's financial health, overseeing loan documentation, monitoring
credit accounts, and ensuring compliance with regulatory requirements. By maintaining
rigorous standards and procedures, the CAD contributes to the stability and profitability of
the bank. Its responsibilities include updating policy details, tracking expired policies,
managing hard copies of documents, generating and updating CIB reports, and ensuring the
accuracy of post-disbursement records.

The evolution of the banking industry, with its rich history and rapid advancements,
underscores the importance of effective credit administration. The insights gained from
understanding the CAD's operations, coupled with the historical context of banking in

14
Nepal and the current status of NMB Bank, provide a comprehensive view of how credit
management supports overall banking operations.

15
 6.0 RECOMMENDATION
Based on the analysis and findings from the study, the following recommendations are
proposed for NMB Bank Limited to enhance its operations and maintain its competitive
edge:

1. Enhanced Digital Transformation:

Expand Digital Services: Further develop and integrate digital banking

services to offer a more seamless and comprehensive online experience. This
includes enhancing mobile banking applications, expanding internet banking
features, and incorporating emerging technologies like AI and machine learning
to offer personalized services and improve efficiency.

Cybersecurity Measures: Strengthen cybersecurity protocols to protect

sensitive customer information and prevent data breaches. Regularly update
security systems and conduct vulnerability assessments to ensure robust
protection against cyber threats.

2. Customer Relationship Management:

Personalized Customer Experience: Utilize data analytics to understand

customer preferences and provide tailored financial solutions. Implement
customer relationship management (CRM) tools to enhance interactions, predict
customer needs, and improve satisfaction.

Feedback Mechanism: Establish a more structured feedback system to gather

customer insights and address any service gaps. Regularly review and act upon
feedback to enhance service quality and client satisfaction.

3. Innovation in Financial Products:

Product Diversification: Explore opportunities to diversify financial products

and services to cater to a broader customer base. Consider introducing new
products that address emerging market needs, such as green finance or fintech
solutions.

16
 Regular Review of Product Offerings: Continuously assess and update
existing financial products to ensure they meet current market demands and
remain competitive.

4. Strengthening Risk Management:

Advanced Risk Assessment Tools: Invest in advanced risk management tools

and technologies to better assess and mitigate credit and operational risks.
Implement predictive analytics to identify potential risks early and develop
strategies for risk mitigation.

Regular Training: Provide ongoing training for staff on the latest risk
management practices and regulatory changes to ensure they are equipped to
handle emerging risks effectively.

5. Community and Environmental Responsibility:

Sustainable Practices: Continue to prioritize and expand initiatives related to

sustainability and corporate social responsibility (CSR). Develop programs that
promote environmental sustainability, support local communities, and
contribute to social development.

Stakeholder Engagement: Enhance engagement with stakeholders, including

community groups, regulatory bodies, and environmental organizations, to
strengthen the bank’s reputation as a responsible corporate citizen.

6. Strategic Partnerships and Alliances:

Collaborate with Fintechs: Forge partnerships with fintech companies to

leverage their technological innovations and expand service offerings.
Collaboration with fintechs can provide access to new technologies, improve
operational efficiency, and enhance customer experiences.

International Expansion: Explore opportunities for international expansion to

tap into new markets and diversify revenue streams. Assess potential markets
and develop strategic plans for entry and growth.

17
By implementing these recommendations, NMB Bank Limited can further strengthen its
position as a leading financial institution in Nepal, enhance customer satisfaction, and
contribute to the overall growth and stability of the banking sector.

18
 7.0 REFERENCES

Acharya, B. S. (2020). A framework for Credit Administration Department. Kathmandu:

Asmita Book.

Adhikari, D. R. & Pandey, D. L. (2021). Essential of business research method.

Kathmandu: Asmita Book.

Agrawal, G. R. (2009). Foundation of Credit Administration Department in Nepal. Putali

sadak: MK Book.

Commons, J. R. (1893). The Distribution of Wealth. America.

Investopaper (2022). Current Status of Banking in Nepal [Update]. Banking in Nepal

[online]. Available: https://www.investopaper.com/news/financial-access-in-nepal/.

Investopaper (2020). History of insurance of nepal. Insurance in Nepal [online]. Available:

https://www.investopaper.com/news/history-of-insurance-in-nepal/.

Investopaper (2023). History of modern banking in nepal. Banking in Nepal [online].

Available: https://www.investopaper.com/news/history-of-modern-banking-in-nepal/.

Investopaper (2020). Merger/Acquisition by Commercial Banks in Nepal [online].

Available: https://www.investopaper.com/news/merger-acquisition-by-commercial-
banks-in-nepal/.

K.C., S. (2020). The Astute Banker. Business 360° [online]. Available:

https://b360nepal.com/public/the-astute-banker-sunil-kc.

Khanam, Z. (2015). Credit Administration Department of Alliance Capital Asset

Management Limited. Department of Business Administration, BRAC University.

NMB Bank [online] (cited 2019). Available: https://www.nmb.com.np/.

Pant, P. R. (2016). Social science research and thesis writing (7th ed.). Anamnagar: Buddha
Complex.

19
Regmi, D. (2019). Contribution of Banking Sector to the GDP of Nepal. Contribution of
Banking Sector [online]. Available: https://www.investopaper.com/news/contribution-
of-banking-sector-to-the-gdp-of-nepal/.

Regmi, D. (2019). Importance of Banking in Developing country like Nepal. Important of

Banking [online]. Available: https://www.investopaper.com/news/importance-of-
banking-in-nepal/.

Shrestha, J. (2021) A general overview of foreign trade practices. Unpublished Internship

report, Faculty of Business and Accounting, Lincoln University.

20
 8.0 APPENDICES
8.1 Appendix A: International Day of Happiness

8.2 Appendix B: World Day for Cultural Diversity in NMB

21