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Organizational Profile of Everest Bank Limited

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Organizational Profile of Everest Bank Limited ORGANIZATIONAL PROFILE OF EVEREST BANK LIMITED Submitted in partial fulfillment of the requirement for Master of Business Administration (MBA) By Kriti Shrestha 1011301066 Batch of 2011-2013 SONA COLLEGE OF TECHNOLOGY [An Autonomous Institution] Affiliated to Anna University of Technology, Coimbatore Salem – 636 005 JULY 2012 i ACKNOWLEDGEMNT I would like to express my heart full thanks to Sona College of Technology for including the Summer Internship Project in MBA. The outcome of this study would not have materialized without the help and support of my respected teachers and staffs of Everest Bank Limited, Lazimpat, Kathmandu, Nepal. I would like to thank Everest Bank Limited for accepting my internship in their esteem organization and providing helpful guidelines needed for the completion of the project. Special thanks to Mr. Ranjan Khadka, the Branch Manager, for his supervision and guidance. I would also like to thank Mr. Kumar Joshi, Human Resource Head, for his suggestions. Hereby, I would like to express my gratitude to all the staffs for their support and co-operation during the internship program. I express our hearth felt gratitude to our beloved Secretary Shri A. Dhirajlal and to our respected Principal, Dr. C.V.Koushik, Sona College of Technology, and the management for providing us an opportunity to undertake this project work. I express my sincere thanks to our respected Director, Dr. Latha Krishnan, Department of Management Studies, for her esteemed and distinguished guidance and also for giving us the opportunity to express our ideas and thoughts through this project. I acknowledge our deepest sense of gratitude to Prof. P. Praba Devi, Department of Management Studies, for her untiring efforts whose ability, efficiency and help have made the project a success. Last but not least I would like to thank my family, friends and all those who helped me during my summer internship project. Kriti Shrestha July, 2012 ii DECLARATION I, Kriti Shrestha, Registration No. 1011301066 of 2011-2013 batch, a full time bonafide student of first year of Master of Business Administration (MBA) Programme to Sona College of Technology (An Autonomous Institution). I hereby certify that this project work carried out by me at Everest Bank Limited, Kathmandu. The report submitted in partial fulfillment of the requirements of the programme is an original work of mine under the guidance of the faculty Prof. P. Praba Devi, and is not based or reproduced from any existing work of any other person or on any earlier work undertaken at any other time or for any other purpose and has been submitted anywhere else at any time. Kriti Shrestha-1011301066 Date Prof. P. Praba Devi Date iii EXECUTIVE SUMMARY The organizational profile comprises different areas that deal with the various aspects of the organization. It helps to study the organizational environment, and how the strategies and structures are formed accordingly. It helps to know about various departments and functions carried out in the different divisions. Similar study of Everest Bank Limited, Kathmandu has been conducted to know the organizational structure and its activities carried out. This report includes the details about Everest Bank Limited, its vision and mission, information about its competitors and its present position in the Nepalese Banking and Financial Sector. The report also deals with growth of the bank over the years. Various sorts of analysis have been conducted to know about the functioning of the bank, for example, Ratio Analysis, Human Resource Analysis, Analysis of the Marketing Strategies and SWOT analysis. iv CONTENTS Contents..........................................................................................................................................v Chapter I........................................................................................................................................11 1.1Introduction..........................................................................................................................11 1.2 Introduction to the Banking Industry...................................................................................11 1.3 Development of Banking Industry in Nepal........................................................................13 1.3 Need and Scope ..................................................................................................................16 1.4 Objectives ..........................................................................................................................16 1.5 Limitations..........................................................................................................................16 CHAPTER II.................................................................................................................................17 2.1 Organizational Profile of Everest Bank Limited.................................................................17 2.2 Organizational Structure of Everest Bank...........................................................................18 2.3 Impact of Globalization.......................................................................................................19 2.4 Functions of Everest Bank Limited.....................................................................................19 2.5 Departmentalization............................................................................................................20 2.5 SWOT Analysis................................................................................................................22 2.7 Suppliers.............................................................................................................................23 2.8 Competitors ........................................................................................................................23 2.9 Business Award...................................................................................................................24 2.10 Marketing Strategies.........................................................................................................24 2.11 Computerization in Everest Bank Limited........................................................................27 2.12 Financial Structure............................................................................................................27 2.13 Deposit Mix......................................................................................................................28 2.14 Credit Distribution............................................................................................................29 2.15 Annual Turnover...............................................................................................................29 2.16 Profitability.......................................................................................................................30 2.17 Share Value of Everest Bank.............................................................................................30 v 2.18 Growth Rate of EBL.........................................................................................................31 2.19 Balance Sheet ...................................................................................................................32 2.21 Human Resource Analysis............................................................................................36 3.1 Findings..............................................................................................................................38 3.2 Recommendations...............................................................................................................39 3.3 Conclusion..........................................................................................................................39 vi LIST OF TABLES S. No. Title Page No. 1 Profitability 19 2 Share Price of EBL 19 3 Market Capitalization 20 4 Growth rate in terms of Annual Turnover and NPAT 20 5 Balance Sheet of 3 conjugative years 21 6 Summary of the Balance Sheet 22 vii LIST OF FIGURES S. No. Title Page No. 1 Financial Institutions in Nepal 5 2 Organization Structure of Everest Bank Limited (EBL) 9 3 Detail of Share Ownership 17 4 Deposit Mix 17 5 Credit Distribution 18 6 Growth rate of EBL 20 viii ABBREVIATIONS AND ACRONYMS ABBS Any Branch Banking System ADB Agricultural Development Bank ATM Automated Teller Machine AUD Australian Dollar BS Bikram Sambat (as per Nepali calendar) CCTV Closed Circuit Television CEO Chief Executive Officer CSD Customer Service Department e-banking Electronic Banking EBL Everest Bank Limited e.g. Exempli gratia (For example) EPS Earnings per Share etc. Etcetera (and others) Fig. Figure FYC Foreign Currency ICD Inland Container Depot ICT Information and Communication Technology INR Indian Rupee IT Information Technology JYP Japanese Yen LAN Local Area Network LDCs Least Developed Countries Ltd. Limited MBA Masters of Business Administration NGOs Non-governmental Organizations NP Net Profit NPAT Net Profit After Tax NPR Nepalese Rupee NRB Nepal Rastra Bank NRN Non Resident Nepali NTC Nepal Telecom P/E ratio Price Earnings Ratio PNB Punjab National Bank ix POT Point of Transaction Rs. Rupees ROA Return on Assets ROE Return on Equity SCT Smart Choice Technology SMS Short Messaging System SWOT Strength, Weakness, Opportunity and Threat UAE United Arab Emirates UK United Kingdom USB Universal Serial Bus USD United States Dollar (US $) UTL
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