CUSTOMER'S SATISFACTION TOWARDS

SERVICE DELIVERY SYSTEM OF

HIMILAYAN BANK LIMITED

A PROJECT WORK PROPOSAL

Submitted By:
Dirga Raj Bogati
Sunkoshi Kalika Multiple Campus
T.U. Regd. No.: 7-2-151-153-2011
Sym. No. : 707050001

Title Page

Submitted To:
Faculty of the Management
Tribhuvan University
Kathmandu

In partial fulfillment of the requirements for the degree of

Bachelor of Business Studies (BBS)

Sunkoshi, Okhaldhunga
June, 2025

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 CHAPTER I

INTRODUCTION

1.1 Background of the study

Today, the success or the failure of the business organization depends on the
responses of the consumers. They are the back bone of any kinds of business. This
thesis is a critical study on the consumer behaviour and the services provided by the
commercial banks.

Customers are king in business. Their satisfaction is important for success of the
business. Customer satisfaction is an important element of banking strategy in today’s
increasingly competitive environment. Bank management must identify quality
dimensions and improve service quality to satisfy customers. The banking industry is
highly competitive, with banks not only competing among each other; but also with
non-banks and other financial institutions (Hull, 2002). Most bank product
developments are easy to duplicate and when banks provide nearly identical services,
they can only distinguish themselves on the basis of price and quality. Therefore,
customer satisfaction is potentially an effective tool that banks can use to gain a
strategic advantage and survive in today’s ever-increasing banking competitive
environment (Shrestha, 2018). Customers are the great power in the modern business
world. They are the main part for the bank by which they can grow their bank by
providing more and different types of facilities, services etc. By this the bank is
motivated to work and provide services. They will be more greatful to attract the
numbers of customers towards the bank. It is known to everybody that when the
customers are satisfied business, industries, company, banks can grow. For this bank
must provide services and satisfactions to the customers as per their expectations
(Amin, Supinah, Aris, & Baba, 2012).

Service provider must know how to please their customers. As to the customer care
center, they must know what kinds of facilities help them to meet their services. It
plays a vital role in the economic development and financial health of the country. An
efficient banking system leads to the sound economic health of the country (Andreou,
Chrysostomou, & Schizas, 2009).

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1.2 Profile of Himalayan Bank Limited

Himalayan Bank was established in 1993 in joint venture with Habib Bank Limited of
Pakistan. Despite the tough competition in the Nepalese Banking sector, Himalayan
Bank has been able to maintain a lead in the primary banking activities- Loans and
Deposits.

Legacy of Himalayan lives on in an institution that's known throughout Nepal for its
innovative approaches to merchandising and customer service. Products such as
Premium Savings Account, HBL Proprietary Card and Millionaire Deposit Scheme
besides services such as ATMs and Tele-banking were first introduced by HBL. Other
financial institutions in the country have been following our lead by introducing
similar products and services. Therefore, we stand for the innovations that we bring
about in this country to help our Customers besides modernizing the banking sector.
With the highest deposit base and loan portfolio amongst private sector banks and
extending guarantees to correspondent banks covering exposure of other local banks
under our credit standing with foreign correspondent banks, we believe we obviously
lead the banking sector of Nepal. The most recent rating of HBL by Bankers’
Almanac as country’s number 1 Bank easily confirms our claim.

1.3 Objectives of the study

The general objective of the study is to determine the services of HBL, Okhaldhunga
Branch and the satisfaction of the customers towards the services of HBL,
Okhaldhunga Branch. The specific objectives of the study are as follows:

1) To examine the deposit services of HBL, Okhaldhunga Branch and the

customer's satisfaction towards the deposit services.
2) To examine the loans services of HBL, Okhaldhunga Branch and the
customer's satisfaction towards the loan services.
3) To examine the safe deposit vault services of HBL, Okhaldhunga Branch and
the customer's satisfaction towards the safe deposit vault services.
4) To examine the e-banking services of HBL, Okhaldhunga Branch and the
customer's satisfaction towards the e-banking services.

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1.4 Rational of the study

The aim of this study is to determine the service provided by HBL, Okhaldhunga
Branch and the satisfaction of the customers towards the services provided by HBL,
Okhaldhunga Branch. This study also explains the various services provided by HBL.
Through this study, the banking industry may start to be aware of this problem so that
they can try to remove problems and weaknesses regarding the banking services.
Although there has been many studies carried-out on As a result of this study, the
banking industries can make effective operational decisions. In addition, it aids
banking industries in adjusting service design elements and amenities to meet or even
exceed the customer demands. Customer satisfaction has been heavily emphasized in
the banking industry. Thus, if the banking industries want to increase customers, then
they need to consider ways to build a relationship with customers, including the way
satisfaction influences their decision to return to the same banking industry. The
researcher has determined that the primary area of the study is customer satisfaction.
This area will be identified on the basis of different variables related to banking
industry. Thus, this study can provide much information about customer satisfaction
in banking industry. This study can provide information on the different factors that
affect customer satisfaction in banking industry. This study would also be beneficial
for those who wish to conduct such studies on banking industry.

1.5 Literature Review

The literature review chapter looks at the various works done that bothers on service
quality in the service sector in general and the banking sector in particular. The
review helps to answer some of the questions raised in the objectives and also
provides supportive information that is necessary to the study. This review is picked
from books, articles and research works that cover the areas of the concept of service;
service quality, as well as service quality measurement models.

1.5.1 Theoretical Review

The issue of customer satisfaction has been explained by numerous theories

developed by several authors. Generally four groups of theories have been used to
understand the process through which customers form satisfaction judgments. The

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Four psychological theories are (1) Assimilation theory; (2) Contrast theory; (3)
Assimilation-Contrast theory; and (4) Negativity theory (Anderson, 1973).

1.5.2 Review of Previous Studies

Gautam and Dhital (2004) conducted a study "Customer satisfaction in Nepalese

commercial banks." The main objective of the study was to find out the satisfaction of
customers in different Nepalese commercial banks. A total of 331 customers' pinions
were collected in this study. Out of the total respondents, small-current account
holders, who keep an average balance of less than Rs. of 500,000 in their accounts
figured 79. Big current account holders, who keep an average balance of more than
Rs. 500,000 in their accounts numbered 117. Similarly, the number of small saving
account holders, who keep an average balance of less than Rs. 100,000 was 68. Big
saving account holders, who hold more than Rs. 100,000 in their account numbered
67. Result shows that the big-current account holders are the highest and the big-
saving account holders are the lowest in number. The reason behind this may be the
provision of official accounts that usually come under the second category. The
differences between both accounts holders was found significant df=1, p < 0.01). The
official account holders were 190 and personal account holders 141 in number. It is,
therefore, obvious that there are more official current account holders.

Singh, (2013) conducted a study "The impact of service delivery quality on customer
satisfaction in Indian banks". It is evident from analysis that private sector banks
provide prompt service, their employee behaviour is more courteous than public
sector banks, the informative materials are available in their branches, their
employees have better knowledge and they have convenient business hours whereas
public sector banks are sincere in solving customer problems, their banking charges
are reasonable. In other aspects both the banks have similar level of customer
satisfaction. It is suggested that if the banks under study are able to provide prompt
service, their employees have knowledge of different services, procedures and have
courteous behaviour, business hours are convenient to customers, personal attention is
paid to understand specific need of the customers, ensure availability of information
and informative materials in their branches, ATM and even on the websites, they will
be able to deliver higher service delivery quality. This will enhance the customer

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satisfaction, and improve the retention of customers and development of customer
relationship.

Nawaz (2017) conducted a study entitled "Customer’s satisfaction towards banking

services of state bank of India in Bareilly district Uttar Pradesh." The purpose of this
research article is to evaluate the customers’ satisfaction towards the banking services
rendered by the SBI in Bareilly District Uttar Pradesh. The researcher conducted a
literature search on banking services of SBI interviewing of its 150 customers (105
Males and 45 Females) and thoroughly scrutinized how it caters to the banking needs
of the inhabitants of Bareilly district Uttar Pradesh. The study also focused on various
factors that determine the customers’ satisfaction like employees’ behaviour, banking
services, banking performance, infra- structure facility and other value added services.
Analysis was made by using various tools like percentage Analysis. The result
showed that there was a significant relationship between the variable of customer
satisfaction and banking services of the SBI and the customers have highly
satisfaction of bank Service.

1.6 Research Methodology

Basically, research is described as an active diligent and systematic process of inquiry

aimed of discovering, interpreting and revising facts. So, the application of procedure
for research is known to be research methodology. It reveals the way and methods has
used to conduct this study. Research design, source of data, population and sample,
data collection tools, data analysis are focal points of this chapter. The research
method and operational producers followed in this study has based on.

1.6.1 Research design

This study has followed the descriptive and analytical research design analyze are
used to explain and to find the result of the study. Descriptive and analytical research
design concentrated to analyze the deposit services, loans services, safe deposit vault
services and e-banking services of HBL, Okhaldhunga Branch

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1.6.2 Population, sample and sampling design

The bank chosen for the study has HBL, Okhaldhunga Branch, Okhaldhunga and no
other branch than its branch in Okhaldhunga of Okhaldhunga. The area has been
chosen for this study, therefore, Okhaldhunga district. It is all the major government
offices and agencies and also accommodates branches of various banks. It is a
population with diverse banking experience as they are exposed to all the different
banks operating in the country currently.

The population for this study is all the account holders of the bank. The population
has categorized as such because the study is wanted to consider the quality of service
delivered to all customers of banks. Clearly a sample frame could not be obtained for
the population considered for this study as described above. Due to this, the
researcher has employed the non-probability sampling method. A total of 80
respondents has used for this study, all 80 being customers of the bank. The
respondents of 80 customers have chosen using the non-probability sampling method.
The accidental sampling method is the method where researchers interview
respondents as and when they meet them. It has involves the researcher standing close
to the place where the respondents are mostly found and in the case of this study the
banking hall and issuing out questionnaires to them in other to solicit their responses.
For this study, a total of 80 respondents are selected through the non-probability
sampling method.

1.6.3 Nature and source of data

Nature of data of this research is quantitative. Quantitative data has used to analyze
the deposit services, loans services, safe deposit vault services and e-banking services
whereas some perception and feelings of customers has used in qualitative data.
Primary data has used to give support to the analysis and the conclusion which has
taken from the field survey.

1.6.4 Data collection procedure and instruments

The procedure employed in this study has to solicit data through the use of structured
questionnaires. The questionnaire are included both open-ended and close-ended
questions. The customers are communicated individually at the branch of the bank

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and described the information about the survey work and the customers requested to
manage proper time to up the questionnaire form. The questionnaire forms have
distributed to the customers. Altogether, 80 questionnaires has distributed to the
customers. All the questionnaires filled and returned by the customers.

1.6.5 Data processing procedure and data analysis method

Data analysis was started after the collection of raw data from class observation and
interview. Data analysis is a process, which involves editing, coding, classification,
and tabulation of the collected data (Kothari, 2004). The researcher has used
descriptive and analytical research design to present and analyze the data. The data
presented in different tables and figures and has analyzed and interpreted. Mean,
standard deviation and variance has used to present and analyze the data.

The data analysis method that was carried out in the research was explain in following
way

Statistical tools

Statistical tools are the mathematical techniques used to facilitate the analysis and
interpretation of the collected data

Percentage

Percentage is one of the most useful tools for the comparison of two quantities or
variables. Simply, the word percentage means per hundred. In other words, the
fraction with 100 as its denominator is known as a percentage and the numerator of
this fraction is known as rate of percent.

CHAPTER II RESULTS AND ANALYSIS

CHAPTER III SUMMARY AND CONCLUSION

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 REFERENCES

Donkor and Collins (2016) conducted a study "Service Quality and Customer
Satisfaction in Loan Acquisition: Evidence from Commercial Banks in
Ghana."

Engel, James F., Blackwell, Roger D, and Miniard, Poul W. (1990). Consumer Beha
ior.USA: The Dryden Press

Fang, L., & Yang, K. (2013). A Study of Optimization on Bank Counter Service
Reliability. Unpublished PhD Thesis, Chung Yang Christian University,
China.

Mahato, B. (2013) "A comparative Study of the financial performance of NABIL &
NIBL. "Master degree thesis TU Ktm.

Mkoma (2014) conducted a study "Analysis of customers' satisfaction with banking

services: A case of Standard Chartered Bank, Tanzania."

Nawaz (2017) conducted a study entitled "Customer’s satisfaction towards banking

services of state bank of India in Bareilly district Uttar Pradesh." NY: The
Free Press.

Oliver, D. (1997). Customer Satisfaction do Matter. Journal of Database Marketing,

5(4), 392–393.

Paudel (2017) conducted a study "Impact of Customer Relationship Management on

Customer Satisfaction and Loyalty of Nepalese Commercial Banks." Pokhara:
Prithivi Narayan Campus, Faculty of Management, Tribhuvan University.

Reaz (2015) conducted a study "Customer’s Satisfaction towards E-banking in

Bangladesh."

Upadhya (2017) conducted a study "Customers' satisfaction in commercial banks of

Nepal." Kathmandu: Shankardev Campus, Faculty of Management, Tribhuvan
University.

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 APPENDIX QUESTIONNAIRE

Namaste, I am Mr. Dirga Raj Bogati, BBS student at Sunkoshi Kalika Multiple
Campus, Tribhuvan University, Nepal. I am conducting a research on Customer's
Satisfaction towards Service Delivery System of HBL (A Case Study of Okhaldhunga
Branch, Okhaldhunga). So kindly, provide few minutes of your valuable time to give
answers to my questions. I would be grateful if you provide correct information.
These will be used only for academic purpose.

Name of the Customer: ……..……….Address: …………………

Name of Organization: ……………………………………Age:.................

Sex: a. Male  b. Female 

Education: a. Illiterate  b. Secondary  c. Higher secondary 

d. Bachelor  e. Masters 

Occupation: a. Self-Employment  b. Private Sector 

c. Government sector  d. Others 

Monthly Income: a. Less than Rs. 10,000  b. More than Rs. 10,000 

Which service of HBL Okhaldhunga Branch have you utilized?

a. Deposit b. Loan and advances  c. Self-deposit vault 

d. E-banking  e. ASBA 

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Deposit Service

S.N. Question Options

1. What type of bank account do you have in
HBL, Okhaldhunga Brach? Current 
Saving 
Fixed 
Others 
2. Are there any problems in opening a deposit
account? Yes 
No 
3. Are you satisfied with the opening of deposit
account in the bank? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 
4. Are you satisfied with the interest rates in
deposit accounts? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 
5. What type of loan have you taken? Overdraft 
Installment based loan 
6. Are you satisfied with the processing charge of
loan of the bank? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 

7. Are you satisfied with the process of loan of the

bank? Highly satisfied 

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 Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 

8. Are you satisfied with the interest rates in loans

and advances? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 
9. How safe is the safe deposit vault?
Very safe 
Safe 
Not so safe 
10. Are you satisfied with the security of safe
deposit vault? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 
11. Are you satisfied with the charges of safe
deposit vault? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 
12. How often do you use e-banking services of
HBL, Okhaldhunga Branch? Very often 
Often 
Sometimes 
Rarely 
13. What type of e-banking service do you use?
ATM 

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 Smart mobile banking 
Others 
14. Are you satisfied with the service and renew
charge of e-banking? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 
15. Are you satisfied with the promptness services
of e-banking? Highly satisfied 
Satisfied 
Neutral 
Dissatisfied 
Highly dissatisfied 

Thank you

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