Online Banking of Sunrise Bank Limited.

A PROJECT WORK REPORT

Submitted By:
Alpa Jha
Exam Roll No.:720360004
T.U. Regd. No.: 7-2-236135-2017
Group: Finance
Gauri Shankar Yadav Campus
Gaur,Rautahat

Submitted To:
Office of Controller of Examination
Faculty of Management
Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelors of Business Studies (BBS)
Kathmandu, Nepal
February, 2022
 DECLARATION

I hereby declare that the project work entitled “Online Banking of Sunrise

Bank Limited” submitted to the Faculty of Management, Tribhuvan university,

Kathmandu is an original peace of work under the supervision of Mr. Anish

Ranjan Kumar faculty member of Gauri Shankar Yadav Rautahat Campus

Gaur Rautahat 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 or diploma.

………………………

Alpa Jha

Date : ………………..
 SUPERVISOR’S RECOMMENDATION

The project work report entitled "Online Banking of Sunrise Bank

Limited" submitted by Alpa Jha of Gauri Shankar Yadav Rautahat
Campus, Gaur Rautahat, is prepared under my supervision as per the procedure
and format requirements laid by the Faculty of Management, Tribhuvan
University, as partial fulfillment of the requirements for the award of the degree
of Bachelor of Business Studies(BBS). I, therefore, recommend the project work
report for evaluation.

Signature: ……………… Signature: ………………

Mr Sikindra Yadav Mr.Bharat Prasad Manandhar
Gauri Shankar Yadav Rautahat Campus Gauri Shankar Yadav Rautahat
Campus
Date:10/01/2021 Date:10/01/2021

ACKNOWLEDGEMENT
My project shows my dedication and I have done full justice to this title. This a

course designed by Name of Your University for bachelors student of

commerce. Likewise all the fellow student I also extended a lot of pragmatic

knowledge while devising this task. I feel the excitement in each and every span

of time while creating this report.

I would like to express my gratitude to all supporters who provided me very

informative and precious as well as proper information on penmanship this
report. I would like to thank (Tribhuvan University) for providing a chance and
allowing for this study. I am highly appreciative to Lecturers Mr Sikindra
Yadav and Mr. Ramesh Kumar Shrivastav Chef of Gauri Shankar Yadav
Rautahat Campus for this assignment and proper instruction without his help my
assignment would not complete at the time.

Besides, I would like to show appreciation to the related Name of the person of

the Name of researched Company, who provided the data and enlightened the

historic background of company. I also indebted to Branch Manager who

provided me the data and the valuable information. I cannot entire this

assignment without giving thanks to the Manager of the Bank.

Thank you!

Alpa jha
Gauri Shankar Yadav Rautahat Campus,
Gaur Rautahat
 TABLE OF CONTENTS

Pg .No.
Title Page i

Declaration ii

Supervisor’s Recommendation iii

Endorsement iv

Acknowledgement v

Table of contents vi

List of Tables viii

List of Figures viii

Abbreviation ix

CHAPTER I: INTRODUCTION
1.1. Bac
kground of the study 1
1.2. Orga
nization Profile 2
1.3. Statement of the problem 5
1.4. Objective of the study 6
1.5. Rational of the study 6
1.6. Review of Literatures 7
1.7. Theoretical /Conceptual Framework 11
1.8. Research Methodology 14
1.9. Limitation of Study 17

CHAPTER II: PRESENTATION AND ANALYSIS OF DATAS

2.1 Descriptive Analysis 18
2.2. Descriptive Statistical Analysis 21
2.2.1 Capital Adequacy 21
2.2.2 Asset Quality 22
2.2.3 Management Efficiency 23
2.2.4 Earning Ability 24
2.2.5 Liquidity 25
2.3Analysis of Primary Data 26

CHAPTER III: SUMMARY & CONCLUSION

3.1. Summary 30
3.2. Conclusions 31

BIBLIOGRAPHY 33

QUESTIONNAIRE 35

APPENDICES 36
 LIST OF TABLES

Pg.No.

Table 1: General Data for Sunrise bank 19

Table 2: Mobile Banking graph 21

Table 3: Rise of customer of online banking 22

LIST OF FIGURES Pg.No.

Figure 1: Conceptual frame of Sunrise bank Analysis 15

Figure 2: Banking operation of Sunrise Bank 19

Figure 3: Banking operational efficiency of online banking 20

LIST OF ABBREVIATIONS (OR) SYMBOLS

CDMA Code Division Multiple Access

CSS Cascading Style Sheet

HTML Hyper Text Markup Language

MMS Multimedia Messaging Service

NIDC Nepal Industrial Development Corporation

NPR Nepalese Rupee

NTA Nepal Telecommunications Authority

NTC Nepal Telecom

PDA Personal Digital Assistant

SMS Short Messaging Service

USAID United States Agency for International Development

WPA Wi-Fi-Protected Access

WAP Wireless Access Protocol

 CHAPTER-ONE
INTRODUCTION

1.1 Background of the study

It is very hard to collect the correct information of the origin of bank. The word
“Bank” has derived from the Italian word “Banco” which means accumulation of
money of stock. It is believed that its origin is from the French word “Banque”
which means “beach” for keeping, lending and exchanging of money or coin in
the market place by money lenders or money changers. It is believed that the
ancestors of modern banking system were merchants, goldsmiths and
moneylenders. Modern banking sowed its seed in the medieval Italy despite
strong Christian prohibitions against charging interest.

The bank had started in Italy in 12 th century as a public bank. The Bank of Venice
that was established in 1158 A.D. was the first bank in the history of
banking.  Following its establishment various banks such as Bank of Barcelona,
which was established in 1401 A.D was the second bank of the world. Similarly,
Bank of Geneva (1407), Bank of Amsterdam (1609), Bank of Hindustan (1770)
were established. The first central bank was the “Bank of England” which was
established in 1844 AD.

Bank is a financial institution, which is engaged in monitory transaction. Bank

has always been the most importance and largest financial intermediates. Banks
collect the scattered money from public providing those interests and services.
This collection becomes the capital for the bank to invest. “Banking means the
accepting of money for the view of lending or investment of deposit from the
public repayable on demand or otherwise and withdraw able by cheque, draft or
otherwise”, is according to Banking Regulation Act 1949 of India. World Bank
says “Banks or a financial institution that accepts funds in the forms of deposit
repayable on demand or at short notice.”

1.1.1 History of Bank in Your Country

In the context of Nepal, like as in the other countries the goldsmith and landlords
where the ancient banker. The Nepalese people were highly exploited by ‘Sahu
Mahajan’ by charging higher interest rate, compound interest rate and even by
manipulating the principal amount. The introducing of ‘Tejarath Adda’ during the
tenure of the Prime Minister Ranoddip Sing (1993 B.S.) was the first step towards
the institutional development of banking in Nepal. The first commercial bank
‘Nepal Bank Limited’ was established on 30th Kartik 1994 B.S.and started to
perform proper banking activities. With the realization of central bank to develop
monetary policy as well as to have proper control over commercial banks and
banking sectors Nepal Rastra Bank was established on 14th Baishak 2017B.S.
under Nepal Rastra Bank Act 2015 B.S. Likewise, Rastra Banijya Bank under the
full ownership of government was established on Magh 2022 as per ‘Rastra
Banijya Bank Act 2015 B.S.’. The growths of the banks accelerated only after the
adoption of liberal economic policy by Nepalese Government .This has attracted
many new investors and encourage opening many new modern banks with joint
venture of foreign banks. Nepal Arab Bank was established on 29th Ashad 2041
B.S. as the first modern bank with the joint venture of Dubai Bank Ltd. U.A.E.
subsequently following its established Nepal Indo Suez Bank France, Nepal
Grinlands Bank England on 16th Marg 2043B.S. with its joint venture of
Grinlands Bank England, Himalayan Bank Ltd on 5th Marg 2049B.S. with the
joint venture of Habib Bank of Pakistan, Nepal SBI Bank Ltd. in28th Ashad 2050
B.S.with joint venture of State Bank of India Nepal Bangladesh Bank Ltd. on
28th Jestha, 2050B.s. with the joint venture of International Finance Investment
and Commercial Bank, Everest Bank Ltd. on 1st Kartik 2051B.S. with joint
venture of Punjab National Bank Ltd of Kathmandu on 28th Falgun 2051B.S.
with joint venture of the Siam Commercial Bank, Thailand.
 Since, the financial sector in Nepal is small, it is growing fast. At  present
banking system comprises  of   NRB, 16  commercial  bank  and  many  financial 
companies, contractual, saving   institution  and    non- government  
organization   conduction   limited   banking activities transaction. The umbrella
act set out regulation for licensing, supervision and cancellation of commercial
bank. Currently, the growths of commercial banks are shown below:-

1.1.2 List of Commercial Nepal Bank

1. Nepal Bank Ltd. (NBL)

2. Rastriya Banijya Bank Ltd. (RBB)
3. Nabil Bank Ltd. (NABIL)
4. Nepal Investment Bank Ltd. (NIBL)
5. Standard Chartered Bank Nepal Ltd. (SCBNL)
6. Himalayan Bank Ltd. (HBL)
7. Nepal SBI Bank Ltd. (NSBI)
8. Nepal Bangaladesh Bank Ltd. (NBB)
9. Everest Bank Ltd. (EBL)
10. Bank of Kathmandu Lumbini Ltd. (BOK)
11. Nepal Credit and Commerce Bank Ltd. (NCC)
12. NIC ASIA Bank Ltd. (NIC)
13. Machhapuchhre Bank Ltd. (MBL)
14. Kumari Bank Ltd. (Kumari)
15. Laxmi Bank Ltd. (Laxmi)
16. Siddhartha Bank Ltd. (SBL)
17. Agriculture Development Bank Ltd. (ADBNL)
18. Global IME Bank Ltd. (Global)
19. Citizens Bank International Ltd. (Citizens)
20. Prime Commercial Bank Ltd. (Prime)
21. Sunrise Bank Ltd. (Sunrise)
22. NMB Bank Ltd. (NMB)
23. Prabhu Bank Ltd. (PRABHU)
24. Mega Bank Nepal Ltd. (Mega)
25. Civil Bank Ltd. (Civil)
26. Century Commercial Bank Ltd. (Century)
27. Sanima Bank Ltd. (Sanima)

1.1.2 Introduction Sunrise Bank Limited

A commercial bank is a financial institution which collects saving from many
persons and institutions and provides credit or loan facility to different industrial
and commercial business. Commercial banking business consists of changing
cash into hank deposit and bank deposit into cash, transferring bank deposit form
one person or institution to other, giving bank deposit in exchange for cheques,
bills of exchange, government securities etc.

Nepal Bank Limited established in 1994 BS is the first commercial bank

in Nepal. Commercial banks perform various functions. Among them, accepting
various types of deposit is the main function of commercial banks. Commercial
banks are directly related with the people and institution. The commercial bank is
an important bank. Its function is very attractive for people. Although these banks
are  truly inspired  with  the objective  of  gaining  profit, these commercial banks
are also established  to  accelerate   common   people’s  economic  welfare  and 
facility  to  make available  loan  to  the  agriculture, industry,  and  commerce 
and  to provide the banking services to  the public and the state. In Nepal the
commercial bank perform the following functions. Of the many function of the
commercial bank acceptance of deposits is one of them. The bank allows for
opening the three types of accounts to accept deposit for their customers. They
are current, saving and fixed deposit account. People can collect their money in
one of the three as their need. But the interest is given to the saving and fixed
account. The commercial bank performs the important function of accepting all
sorts of deposits.  It earns profit by investing that money in another place.

Another function of the commercial bank is to provide loan. A commercial bank

provide loan to a person, company and institution etc. A bank can earn a lot of
profit from it. A bank is capable of gain benefit in its banking development by
receiving the interest as pre law and its internal policies. It provides the loan by
accepting the security of debtor. A  bank  flow  the loan against  a  third  person 
guarantee  or  with  the  pledge of the third person. A bank provides the loan on
basis of agreement or deed of loan. It provides loan on basis of the following deed
securities:

 ▪ With the pledge of goods, .and pledge of gold and silver.

 ▪ With the security of immovable property               
 ▪ With the security of other similar goods.
Sunrise Bank Limited is a commercial bank in Nepal. The bank is an ‘A’ class
commercial bank licensed by Nepal Rastra Bank[3] and has branches all across the
nation with its head office in Kathmandu which provides entire commercial
banking services.
The bank's shares are publicly traded as an 'A' category company in the Nepal
Stock Exchange.[4] The bank currently has 139 [5] branches, 71 branchless banking
units, 12 extension counters and 156 ATM terminals.
Banking online means accessing your bank account and carrying out financial
transactions through the internet on your smartphone, tablet or computer. It's
quick, usually free and allows you to do tasks, such as paying bills and
transferring money, without having to visit or call your bank.
Online banking allows a user to conduct financial transactions via the Internet.
Online banking is also known as Internet banking or web banking.

Online banking offers customers almost every service traditionally available

through a local branch including deposits, transfers, and online bill payments.
Virtually every banking institution has some form of online banking, available
both on desktop versions and through mobile apps.

Banking transactions offered online vary by the institution. Most banks generally
offer basic services such as transfers and bill payments. Some banks also allow
customers to open up new accounts and apply for credit cards through online
banking portals. Other functions may include ordering checks, putting stop
payments on checks, or reporting a change of address.

Statement of the Problems

The ability to adopt global technology to local requirements: An adequate

level of infrastructure and human capacity building are required before
developing countries can adopt the global technology for their local
requirements. For example, the review of the migration plan of Society for
Worldwide Interbank Financial Telecommunications (SWIFT) to the
internet shows that to date full migration has not occurred in many
developing countries due to the lack of adequate infrastructure, working
capital, and required technical expertise. The ability to strengthen public
support for e-finance: Historically, most e-finance initiatives in developing
countries have been the result of cooperative efforts between the private
and public sectors. For example, Singapore’s successful Trade Net system
 was a government-sponsored project. If the public sector does not have the
necessary means to implement the projects it is essential that cooperative
efforts between public and private sectors, along with the multilateral
agencies like the World Bank, be developed to facilitate public support for
finance related initiatives. Confidentiality, integrity and authentication are
very important features of the banking sector and were very successfully
managed the world over in pre-internet times. Communication across an
open and thus insecure channel such as the internet might not be the best
base for bank-client relations as trust might partially be lost. E-Banking has
created many new challenges for bank management and regulatory and
supervisory authorities.They originate not just from increased potential for
cross border transactions but also for domestic transactions based on
technology applications which raise many security related issues . The
Basel Committee on Banking Supervision’s Electronic Banking Group has
defined risk management principles for electronic banking. They primarily
focus on how to extend, adapt, and tailor the existing risk-management
framework to the electronic banking setting.
The main Problem faced by customer regarding online banking are:
 Traditional Banking Habit
 Security and Fraud Instance
 Cross Border Transaction
 Lack of Knowledge of technology in the older generation

Objectives of the Study

Objectives of this study are as fallow:

 To evaluate the position and growth of customer satisfaction regarding

online banking
 To analyze the services and technology
 To analyze the Security issue and policy to maintain security on electronic
operations
Significances of the Study

Significances of this study are as fallow:

 To understand and identify major contributing factors of online banking

technology.
 To understand the regulation and administration of the online banking
services.
 To understand the use of online banking facilities.

1.5 Report Structure

This study has been comprised into three sections, each devoted to some aspects
of deposit analysis of commercial banks (Nabil bank ltd). The titles of each of
these sections are summarized and the contents of each of these chapters of this
study are briefly mentioned here.
Chapter 1        :           Introduction / Background
Chapter 2        :           Related Literature Review
Chapter 3        :           Methods
Chapter 4        :           Results and findings
Chapter 5        :           Discussion and Conclusion
The first section deals with the subject matter consisting General Background,
Nature of the Study, Objectives of the Study, Methodological Aspects,
Limitations of Study. The second section is concerned with nature of study
Related literature review. The third section concerned with the researches
methods  of the study. The fourth section results and findings and presentation of
data through tables, diagrams for five years. The fifth section discussions and
conclusion the reference is incorporated at the end of the study.
 CHAPTER TWO
LITERATURE REVIEW

2.1 Conceptual Review

Deposit collection is one of the main features of commercial bank. A commercial
bank receives deposit in different accounts namely current, fixed and saving.
These are the direct deposits. When a bank receives cash it grants a right to the
depositors to withdraw it whenever they like Nepal Banijya Bank Act has
regulated all the deposit 2031. The act specifies “Deposit” means amount
deposited in current, fixed and saving deposit account of bank or financial
institutions. Among many functions of a commercial bank the main function is
deposit function, which all the commercial banks perform, in simple terms;
deposit is a function of collecting surplus from savers.

2.2 Review of Previous Works

Bank accepts deposit from those that can save but can’t utilize profitably. People
know that by depositing in the bank they could avail with many more facilities.
By saving in the bank people have the opportunity of earning interest, useful
contingencies; avoid risk such as theft lost accidents, the deposit of commercial
banks is increasing because people know its importance. So banks accept money
on current saving and fixed deposit accounts. Deposits are the main source of
capital for the lending activities of the banks. Banks utilize efficiencies to attract
more deposits to increase credit activities. Deposits are withdraw able according
to the terms of contract with the depositors to attract the people. The bank
maintains different types of deposit accounts.

According to Commercial Bank Act, the saving account means an account of

amounts deposited in a bank for savings purposes.

Saving Account are generally opened for the savings of customers (individuals,
nonprofit organization, charitable trusts, clubs, associations and cooperative) who
want to save for meeting future needs, Savings accounts is suitable for the
customers who do not want to withdraw frequently or who do not want to keep
certain amount for fixed long period.
2.3 Research Gap
Various studies have been conducted in the past on financial analysis of
commercial banks in the US and other regions were found done. The research
paper done in the context of Nepal mainly emphasized on liquidity, profitability
and leverage of the commercial banks. These studies lack micro-level analysis
and found applying traditional analysis of financial performance. In the context of
Nepalese banking environment, there are few academic researchers found
conducted in the frame work. However these researches lack analysis.

CHAPTER THREE
RESEARCH METHODOLOGY

3.1. Research Design

The research methodology is the process of arriving to the solution of the
problems through planned and systematic dealing with the collection, analysis
and interpretation of facts and figures. As the research entirely considers about
the about “Online Banking Of Sunrise Bank Limited” The main purpose of this
study is to find the facilities of online and mobile banking, use of mobile banking
and advantages and disadvantages of mobile banking . Those research
methodologies have been used which proves helpful to deposit analysis. For the
purpose of achieving the objective, the following methodology is used. The data
has been collected by acquiring various kinds or reposts, bulletins and journals
from the organization. Similarly data has been acquired from NRB also.

The study report is based mostly on secondary information of Sunrise Bank. In

addition to this, reference has been made in library consult, class lectures, Related
books of banking, financial management and accounting during the preparation of
this study.
 3.2 Population and sample
The 28 commercial banks of the country Sunrise Bank Limited has been chosen
and their performances have been analyzed. Due to Lack of Penal access study
mainly depends on the balance sheet prepared by Sunrise Bank Limited, which is
the secondary source. Sunrise Bank Limited has been selected for the present
study. Financial statement of this bank for the last five years has been taken as the
sample for this purpose.

3.3 Type of Data

For the preparation of this report different kinds of books are followed. In this
report, all the data collected is secondary in nature. Almost all the data has been
collected form published annual reports, brochures etc. Mostly all the data are
collected from the concerned bank.
Secondary Data Source:
In this study, the main source of data is secondary which are collected from pre-
published data sources. The financial data from the published documents and
audited financial statements were manually extracted into the computer files of
Microsoft Excel program which acted as master database file. The data was
refined functions and Chart program of the Excel program.

3.4 Data Processing Techniques

The data collected from the above stated sources has been classified tabulated and
interpreted for easier study. The data collected are classified, tabulated and
arranged in manner to make it easily understandable with the use of tables in
chronological order. After classification the data is tabulated.

3.5 Techniques of Analysis

Financial ratios are the major tools used for the descriptive analysis of the study.
In addition to the financial tools, simple statistical tools are also used. 
Financial Ratio Analysis tools are used to determine the performance of the banks
in the framework components. These ratios are categorized in accordance of the
components. Following category of key ratios are used to analysis the relevant
components in terms.:

Limitations of the Study

Limitations of this study are as fallow:

 This study is mainly based on the financial report i.e. secondary

data.
 This study does not consider the factors that affect the
company’s financial positions such as technical condition, social
condition, political condition, personal advertisement, etc.
 Only limited financial tools and technique are used for analysis,
so this study may not be sufficient for analysis.

CHAPTER –FOUR
RESULTS AND FINDINGS

4.1 Data Presentation and Analysis

Table 4.1
Total Deposit position of Sunrise(Rs. in million)
Year Fixed Current Savin Others Call & Total Growth
g Short %
Deposit
2013 2446 2704 4972 439 4945 15506 -2
2014 2252 3034 5230 390 2541 13448 -13
2015 2310 2688 5994 326 2801 14119 5
2016 2079 2799 7026 342 2341 14587 3
2017 3449 2910 8771 365 3851 19347 33
            Source: Sunrise Bank Ltd., Annual Financial Statement
 Figure 1. Number Of Mobile Banking Users In Sunrise Bank LTD

Table 4.2
Saving Deposit Position of Sunrise (Rs. in million)
Year Saving Deposit Growth Rs. Growth %
2016 4972 55 1
2017 5230 257 5
2018 5994 765 13
2019 7026 1032 15
2020 8771 1745 25
Source: Sunrise Bank Ltd., Annual financial Statement
 Figure 2: Mobile Banking User in Nepal

Table 4.2
SN Criterions sunrise SBI NBB SCB

1 Available Services 7 7 5 8

2 Merchants supported 1 0.015 0 0.05

3 Number of Wallet Loading supported. 2 1 4 1

4 Water Bill Payment Support. 1 1 0 1

5 Electricity Bill Payment Support. 1 1 0 1

6 Top-up Service 4 2 4 4

4.2 Data Analysis

The response of all the criteria under consideration for analysis was
quantified for the quantitative analysis and comparison and is shown in table 2.
The value '1' was provided for one service available and '0' if the service was
not available as shown in table 2. The value '1' was given for yes and '0' for no
to the responses of yes/no questions. Criteria no. 8 was quantified as 17 being
 the highest value. A similar approach was applied to criterions no.2 and 10.
Criterion 20 is the total from the transaction criteria quantified (Table 5).

For criterion 13 the answer yes indicates the negative response whereas
no indicates

4.3 Major Findings

In any form of technological services, security is one of the major issues.
Here in the case of mobile banking, security is one that should be highly
focused. The technological background of Nepal is not that strong
as expected. In comparison with developed countries, the security
system in technological services in Nepal need to be highly improved.
Even though the different software developer company in Nepal is
trying to apply different security measures in mobile banking services
but still it lacks that high level security. The growth of any product is
directly proportional to the uses by its customers. The continuous errors in
mobile banking software which has been seen around Nepalese users
according to my survey result can be taken as an example on how reliable is
mobile banking in Nepal.

CHALLENGES OF MOBILE BANKING IN NEPAL

Nepal is a country where technologies are growing in slow pace.
Comparing with the developed countries, Nepal is still too far in sense of
technologies. In spite of having acceptable technological services in
urban areas, conversely, rural areas people are deprived of using new
technological services. As mentioned earlier above that more than 70% of
the Nepalese are unbanked, so there is a huge challenge in adoption of
mobile banking in Nepal. The people living in capital city areas are
more educated than the people living in rural areas. Here are some
factors explained below which could be challenges mobile banking in
Nepal.
Infrastructure Development

The development of any country can be easily seen with the

development in infrastructure. In case of Nepal, the infrastructure
development is very poor. The condition is even hard in rural areas where
people are deprived of using many services. Due to traditional system in
mind around Nepalese people, they kept themselves away from the new
technological services. In order to have a fluent mobile banking activities,
the communication channels should be faster enough to response in time.
As mentioned earlier that people in Nepal lives under the problem of load
shedding which runs 5-6 hours which means that the
communication channels between mobile banking users and the
respective financial institutions gets poor communication. As mentioned
earlier that the literacy rate of Nepal is below average which creates direct
impact in using new technological services, here in our case mobile
banking.

Attitude Towards Banking

Due to lack of awareness around Nepalese people, mobile banking is

not growing in expected ratio. Even though different commercial
banks in Nepal have started mobile banking services for its customers but
the people are still depending on old banking traditi
deals on cash rather than banking. This results in the low rate of using
mobile banking services. Majority of literate people are in city areas and
according to my survey result above, it was found that the mobile banking
seemed popular towards young generation. Even though the mobile phone
users are growing in huge speed in Nepal but they lack ideas towards
the use of mobile banking which is one of the easiest form of banking
services.

Trust In Mobile Banking

In any form of technological services, security is one of the major issues.

Here in the case of mobile banking, security is one that should be highly
focused. The technological background of Nepal is not that strong
as expected. In comparison with developed countries, the security
system in technological services in Nepal need to be highly improved.
Even though the different software developer company in Nepal is
trying to apply different security measures in mobile banking services
but still it lacks that high level security. The growth of any product is
directly proportional to the uses by its customers. The continuous errors in
mobile banking software which has been seen around Nepalese users
according to my survey result can be taken as an example on how reliable is
mobile banking in Nepal.

Linguistic Factor

Nepal is a country where there lies 4 caste and 36 subcastes.There are many
people in Nepal who can speak and write Nepali but no other languages.
There are also many government schools/colleges where majority of study
is done in local language, i.e. Nepali which results in poor
understanding of other languages i.e. English language. As present
mobile banking application in Nepal are just running with English
languages, there is a demand of developing mobile banking in local
language as well. With the development of mobile banking in Nepali
language not only makes Nepalese life easier but at the same time it will
help to increase the popularity of mob

Handset
Operability
Even the mobile phone users are growing every year in Nepal but
in case of mobile banking it depends on what type of mobile you
are carrying. In case of SMS alert banking, it could support
normal mobile phones but when it is about mobile banking client
application then the platform is different. Apart from the platform,
there can be issue with operating system, system
requirements in mobile phones. The client based mobile
application is especially suitable for current version of
smartphones which is the latest mobile technology. But in
case of Nepal where poverty is around 40% [RYAN
MILLER, FEBRUARY 6,

2014], it is difficult for every Nepalese households to do mobile

banking through smartphones.

As we saw from the survey result regarding the existing users and
also the one who are interested to use and know about mobile
banking, this gives us an idea that there is a positive impact of
mobile banking around Nepalese people. Even though there is a
big challenge for mobile banking in Nepal especially in rural areas
but if Nepalese government can bring changes in those
challenges mentioned above such as infrastructure development,
people’s attitude towards banking, security issues, etc. then it
can play huge role in economic development of the country.
 CHAPTER - THREE
DISCUSSION, CONCLUSION

5.1. Discussion
A bank is an institution, which deals in money. A bank is like a reservoir. It draws
surplus money from the people who save and lend them to the people who want to
use it for productive purpose. In this process the bank earns commission. The rate
of interest paid to the depositors is generally lower than the rate charged to the
borrowers. The difference between these two rates of interest is the profit of the
bank. Deposit collection is the main function of commercial bank. The present
study has been undertaken to examine and evaluate the financial performance of
Sunrise. The financial statements of five years that is from 2000/01 to 2004/05
have been examined for the purpose the study. The study has resorted mainly to
secondary data that has been first processed and analyzed comparatively.
Individual interview with the management personnel has been taken whenever
necessary. This study is exploratory as well as analytical sometimes. Sunrise was
established in 12th July 1984, which was the first joint venture bank in Nepal.
Among many joint venture banks, it is a leading one, which is always running in
profit due to its proper management and good policies. Data that I have presented
is all from the secondary sources, which are in the annual reports or other printed
matters. A customer can be account holder when he opens account. There are the
numbers of rules and procedures regarding opening different types of accounts.
The interest rates on different accounts are different

5.2. Conclusion
In summary, from both the literature and research methodology, it can
be concluded that the mobile banking will progress further in Nepal. The
number of mobile banking users are increasing every year with different
figures especially in urban areas where technologies are highly
developing in quick manner. Technologies have taken Nepalese
traditional banking system into modern banking system with different
services such as ATM, internet banking, mobile banking. As mobile
 banking is not fully reached in rural part of Nepal but different
projects and efforts are being carried out by many organizations in
order to flourish the information about mobile banking .Well, present
status shows that more than 70 percent of Nepalese households are unbanked
but it can be expected that with the initiation of mobile banking in
different parts of Nepal will help those unbanked households to get an
idea about normal banking systems. It can be also expected that with mobile
banking, there will be huge change in payment systems in Nepal which will
make Nepalese people’s life easier and effective in terms of financial
activities.

As we saw from the survey result regarding the existing users and also the
one who are interested to use and know about mobile banking, this gives us
an idea that there is a positive impact of mobile banking around Nepalese
people. Even though there is a big challenge for mobile banking in Nepal
especially in rural areas but if Nepalese government can bring changes
in those challenges mentioned above such as infrastructure development,
people’s attitude towards banking, security issues, etc. then it can play
huge role in the economic development of the country. As we can see
that there is a potential of development of mobile banking in Nepal.

         The bank should aim towards increasing its customers but it must also provide
the quality services to the present customers. For this the bank must make plans
and policies keeping customers in mind.
         Bank should also pay attention towards the priority sector and industrial sector
for lending loans to develop the economic condition of the country
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