\MANAGEMNET INFORMATION SYSTEM

(With the reference to “NABIL BANK LIMITED” )

A PROJECT REPORT

SUBMITTED BY:
ABHINAV SHRIVASTAV
(BIM 7th Semester)
SUBMITTED TO:
MR. MUKESH AGRAHARI
BHAIRAHAWA MULTIPLE CAMPUS

Faculty of Management
Tribhuvan University
In partial fulfillment of the internal requirement for Management Information System
Subject as a course of study
Bhairahawa
2024

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 ACKNOWLEDGEMENT

This report is the result of continuous effort made and extended support of many
people. The preparation of this report needed a lot of effort and suggestions of many
people in order to get to its complete form. Firstly, I would like to thank Tribhuvan
University for designing a platform where we can gain not only theoretical knowledge
but also practical knowledge.
We express our thankfulness to our teacher Mr. MUKESH AGRAHARI for nonstop
support and making us to know about the subject matter of the book in practical way.
We are also very grateful and would like to thank our college administration of
BHAIRAHAWA MULTIPLE CAMPUS, who gave us opportunity for the
organization field visit.
We would like to acknowledge with much appreciation the crucial role of the staffs
and manager of; “Nabil Bank Limited”, who helped us by providing
information regarding organization changes and its development. It is our great
pleasure to submit this report as the partial fulfilment of the course materials for the
curriculum.
Finally, I would like to pay heartwarming thanks to my family and my dear friends for
their valuable support and assistance, without their support this report would not be
possible. I have tried my best to design a complete application that fulfill all the
requirements. Though I am not a professional or experienced in this field but I had
tried my level best to make this project according to the teachers’ guidelines.
Thank you!!!

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Table of Contents
ACKNOWLEDGEMENT ____________________________________________________ 2
CHAPTER 1: INTRODUCTION _______________________________________________ 5
1.1 Introduction of Organization______________________________________________ 5
1.2 Background of the Study ________________________________________________ 6
1.3 Significance of the Study ________________________________________________ 6
1.4 Statement of the Problem ________________________________________________ 7
1.5 Objective of the Study __________________________________________________ 8
1.6 Limitation of the Study __________________________________________________ 8
1.7 Methodology of the Study _______________________________________________ 8
CHAPTER 2: REVIEW OF LITERATURES ____________________________________ 10
2.1 Types of Information System ____________________________________________ 10
2.2 Information System Department __________________________________________ 13
2.3 Roles of Management Information System _________________________________ 13
2.4 Uses of IT Facilities and Services _________________________________________ 14
2.5 Communication _______________________________________________________ 17
2.5.1 Importance of Communication _______________________________________ 17
2.5.2 Purpose of Communication __________________________________________ 17
2.6 Software as Enterprise Application ________________________________________ 20
2.7 IT for Firm’s Operation _________________________________________________ 22
2.8 IT Infrastructure ______________________________________________________ 26
2.9 Security _____________________________________________________________ 29
2.10 MIS in Decision Making _______________________________________________ 32
2.11 System Changes and Redesign __________________________________________ 33
CHAPTER- 3: CONCLUSION, RECOMMENDATION AND REFERNCE ____________ 35
3.1 Conclusion __________________________________________________________ 35
3.2 Recommendations _____________________________________________________ 35
3.3 References ___________________________________________________________ 35

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Figure 1Logo of Nabil Bank Limited _______________________________________________________________ 5
Figure 2 Organizational Structure _______________________________________________________________ 10
Figure 3 Organizational Structure of Nabil Bank Ltd. _____________________________________________ 26
Figure 4 IT Organizational Structure of Nabil Bank _______________________________________________ 28

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 CHAPTER 1: INTRODUCTION

1.1 Introduction of Organization

Figure 1Logo of Nabil Bank Limited

Established in 1984 AD, Nabil Bank has carved a cornerstone in the development of the
financial services industry in Nepal. The Bank has always stayed true to its three strong pillars:
Service Excellence, Technology, and Product innovation. This has led to the start of customer-
centric banking culture with the development of innovative services and products, enriching
customers' livelihoods and setting benchmarks in the Domestic Banking Sector.
Truly a pioneer in the Domestic Banking Sector, Nabil Bank’s mission is to become the Bank
of 1st choice of all its stakeholders - including all strata of customers of retail, SME, corporate,
state-owned enterprises, non-profit entities, multinational development agencies, along with
the Bank’s employees and shareholders. The Bank strives to be a one-stop solutions provider
by offering a complete line of commercial banking products such as branch banking, treasury,
trade, cards, remittance, and investment banking. The expert team of highly skilled
professionals provides industry-specific guidance and advisory for efficient financial
management, resulting in higher customer profitability.
Nabil Bank operates through its wide network of 268 branch offices, 317 ATMs, numerous
POS terminals, remittance agents and sub-agents 20000 plus spread across the nation. The
Bank also has over 200+ international correspondent banking relationships. The Bank operates
its investment banking arm through its subsidiary Nabil Investment Banking Ltd.
The Bank understands that its role goes beyond just financial transactions, and towards the
development of society as well. Hence, the Bank is highly active in creating financial literacy
and providing financial access to a large section of the population across the country as part of
its Corporate Social Responsibility. Extending credit to deprived sectors of the society through
micro-lending and financing priority sectors that include agriculture, renewable energy and
tourism are key areas that define the Bank’s commitment to the country’s development
initiative. Nabil Bank has also established its branch offices in multiple rural locations in the
western and far-western hills with its vision to reach the financially under-privileged population
and increase financial literacy therein.

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Corporate Vision:
“To ensure the creation of optimum values for all stakeholders and together ahead”
Objectives:
Nabil Bank Limited has the following objectives:
• Focus on building the positive net worth and meeting minimum capitalrequirement
over the coming five years.
• Focus on increasing the customer base and market share.
• Maximize the potential/efficiency of bank's staff.
• Focus on minimizing the risk associated with the business.
• Focus on providing the world class business solutions.
• Focus on increasing the sustainable profit.

1.2 Background of the Study

Being a student of BIM only the theoretical knowledge is not sufficient so skills should be also
developed to understand and solve the practical problem relatively. The main purpose of the
study is to know about how IT has helped the organization to increase the effectiveness of the
work and maintain best quality of services.
Study begins with setting our objectives of going into the organization. Questionnaires strictly
concerned with the objectives were also prepared. Nabil being one of the leading commercial
banks of Nepal, was our choice. We arrived in the organization with queries which were related
to our subject of report.
Similarly, introduction, significance, statement objectives, limitations, conclusions, references
and methodology of the study has been included regarding Nabil Bank Limited in this report.

1.3 Significance of the Study

With the help of this research, we have been able to get knowledge and
information regarding various sectors of IT and its importance in the
organization to run it smoothly and effectively. Some of them are listed
below: -

• This research has helps us to identify the types of information

system used inthe organization.

• It has helps to find out the effectiveness of MIS in the organizations.

• It has help to locate the types of collaboration tools used in an

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 organization.

• It has help to gather information regarding security threats and

tools of anorganization.

• It has help us to analyze that how the use of IS/IT has benefitted
theorganization.

1.4 Statement of the Problem

Nabil Bank was established with the corporate vision and faith; When Nabil
Bank with complete banking solution and faith; however, it was difficult for
Nabil to sustain the technological developments with the implementation of
Total Branch Automation (TBA) in standalone mode. The main disadvantage
of TBA was that no data Centre was established and therefore, customers’ data
were available only at the branch where the customers have account. Moreover,
each branch needed to take backup of their data and send it to head office in
storage device for safe keeping.

It has been providing various banking facilities it has to face cutthroat

competition in banking business. Especially, when the private banks were more
focused on profitableventures and better customer service Nabil had to provide
services to the remote areas all around the nation to serve the rural people and
community as well. Nabil should be able to facilitate its customers with high-
tech services. It also needs to re-imagine tech-enabled services continuously and
be ready to face innovative technological challenges. More convenient
international transactions a well-defined IT plan/policy and audit plans.

Nabil technology adaptation will definitely help to reshape itself in Nepalese

banking industry in recent future. Nabil Bank is committed to take up
technology trends in safe and secure manner to deliver innovative, effective and
efficient services to the satisfaction of people of different demography.

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1.5 Objective of the Study
A study or investigation without any objectives becomes haphazard and cannot
meet its target. This study has been done taking certain objectives. The main
objectives of this study are as follows:
• To examine the profitability of management information system in
banking.
• To evaluate the impact of management information system in banking
industry.
• To measure the impact of automated management information system in
theperformance operation of commercial banks in banking.
• To know about the problem faced by organization to become successful.
• To study existing of information technology used in Nabil.

1.6 Limitation of the Study

Every investigation has its own limitations. We have collected as much as
informationas we could and per the requirement but still we are unable to collect
full information needed for our research due to some limitation we faced, listed
below:
• Unable to collect complete information due to lack of time.
• Study is based on data collected from a single day field visit.
• Satisfactory research was not possible due to limited time to interact
with the manager.

1.7 Methodology of the Study

For conducting the study, I have used both primary data and secondary.
The sources are given below:

Primary data sources:

Primary data have been collected through observation and interview.
• Face to face conservation with the bank officials.
• Face to face conversation with clients
• Practical desk work

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 Secondary data sources:
• Annual report of the Nabil Bank Ltd.
• File balance sheet and various documents.
• Different textbooks & materials
• Website of the Nabil Bank Limited
• Reports submitted by several internship students

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 CHAPTER 2: REVIEW OF LITERATURES

2.1 Types of Information System

For the last twenty years, different kinds of information systems are developed
for different purposes, depending on the need of the business. In today’s
business world, there are varieties of information systems such as transaction
processing systems (TPS), office automation systems (OAS), management
information systems (MIS), decision support system (DSS), and executive
information systems (EIS), ExpertSystem (ES) etc. Each plays a different role
in organizational hierarchy and management operations.

This study attempts to explain the role of each type of information systems in
Nabil Bank Limited.

Figure 2 Organizational Structure

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 1) Transaction Processing System(TPS):
Transaction Processing System (TPS) plays a vital role in financial
transactions in banking sector. When evaluating and managing the risks, it
is more anticipatory and effective way to analyzing the potential risks. It
helps an organization manage its risks, enhance its value and improves
business performance. On the other hand, Information system security is
always a necessity in order to deal with threats.

Transaction processing systems of banks and other financial institutions,

designed by the Risco Software Company, include:

• Bank cash management,

• The management of seizures by a bailiff,
• Check management,
• Credit card transaction processing,
• Money order management,
• The management of corporate clients’ cash payments,
• Micro account management systems.

2) Management Information System:

Management Information System is very useful tools for the purpose of
reviewing and controlling company’s operations. The main goal of this
system is to organize all data collected from every level of the company,
summarize it,and present it in that facilitates and improve the quality of the
decisions being made to increase the company’s profitability and
productivity.

These systems are typically are computer-based including either simple

excelsheet or more complex platforms. The information being collected
andgathered for the system normally comes from both inside and outside
sources. People deposit and borrow money from a bank every day. There
are differenttypes of deposits having different tenures. So also, loans are
given for short term, medium term and long-term purposes. All this
information is consolidated on daily, weekly, fortnightly, monthly,
quarterly, half yearly andannual basis. The information is submitted by
banks to NRB and stockexchanges periodically where their stocks are
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listed. All these data are built into an information system which provides
insight to policy framers in a bank. Collectively all these data are called
Management Information System.

3) Decision Support System

The use of DM and DSS is becoming increasingly common. Many banks
are upgrading from management instinctive decisions to mining of data
and using it to make decisions for business growth, not only because of
the bad result they get often from the instinctive decisions but from the
fact that they need tomine the daily increase in data, look at the trends
and patterns, and look for in accurate data to so as to make better
decisions because of its wide support for business convenience and ease
of use. “Data mining can be considered as a method that is used for a
data warehouse which daily banks data are sourced for use and new once
are stored, while DSS is a tool that helps develop and generate decisions
based on the data mined. This includes the following characteristics:

• A wide number of data is stored all over the banks departments

and branches across its coverage and it accessed concurrently.

• Heterogeneous execution environments composed of different

hardware, network connections, operating systems, data formats,
and data storage.

• An extremely heterogeneous nature that depends on the large

variety of data variables.

• The ability of viewing customer data variables at run time

according to user inputs and server status.

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2.2 Information System Department
The IT department has enthusiastic and dedicated staffs responsible for providing backbone and
suppfor the functioning of the bank. The rapid expansion drive of the bank encompassing its
network of ATMs and branches has been made possible through the centralized system and
dependable network infrastructure commissioned and maintained by the IT department. The
department is actively engage in trouble shooting and providing support in matters relating to
banking software, connectivity and hardware fault handing ensuring smooth operations which
again is important for mainlining highest quality of services.

The IT department has evolved and grown from its support responsibility into strategizing
innovationbringing out new products that offer customers added benefits by leveraging the
technological advantage.

The department has been a mix of the youth and experience strongly led by Mr. Prakash Kumar
Adhikari, continuously providing with the learning opportunities and information sharing
between themployees with diverse competence level and skill set providing a strong career
prospect.

2.3 Roles of Management Information System

The role of MIS in Nabil Bank Limited are:
• MIS helps in strategic planning, management control, operational
control andtransaction
• Processing of Nabil bank limited.
• MIS provides regular information to managers to allow them to make
decisionbased on data rather than guesses.
• MIS helps in taking management decisions related to management
functionespecially for top management.
• MIS satisfies the diverse needs through a variety of systems such
as QuerySystems, Analysis systems, Modeling Systems and Decision
Support Systems.
• MIS helps in short term planning, target setting and controlling of
Nabil Bank Limited.

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2.4 Uses of IT Facilities and Services
Computers are getting more sophisticated. They have given banks a potential
they could only dream about and have given bank customers high expectations.
Thechanges that new technologies have brought to banking are enormous in
their impact on officers, employees, and customers of banks. Advances in
technology are allowing for delivery of banking products and services more
conveniently and effectively than ever before - thus creating new bases of
competition. Rapid access to critical information and the ability to act quickly
and effectively will distinguish the successful banks of the future. The bank
gains a vital competitive advantage by having a direct marketing and
accountable customer service environment and new, streamlined business
processes. Consistent management and decision support systems provide the
bank that competitive edge to forge ahead in the banking marketplace.
Major applications: The advantages accruing from computerization are three-
directional - to the customer, to the bank and to the employee.

Application
of IT in NBL

For For
For Bank
Employee Customer

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A) For the Employe: IT has increased their productivity through
thefollowings:

• Accurate computing of cumbersome and time-consuming

jobs such asbalancing and interest calculations on due dates.
• Automatic printing of covering schedules, deposit receipts,
pass book / pass sheet, freeing the staff from performing these
time-consuming jobs, and enabling them to give more
attention to the needs of the customer.
• Signature retrieval facility, assisting in verification of
transactions, sittingat their own terminal.
• Avoidance of duplication of entries due to existence of single-
point data entry.

B) For the Bank:

During the last decade, Nabil Bank Limited applied IT to awide range of
back and front office tasks in addition to a great number of new products.
The major advantages for the Nabil to implement IT are:

• Availability of a wide range of inquiry facilities, assisting

the bank inbusiness development and follow-up.
• Immediate replies to customer queries without reference to
ledger-keeper as terminals are provided to Managers and Chief
Managers.
• Automatic and prompt carrying out of standing instructions on
due date andgeneration of reports.
• Generation of various MIS reports and periodical returns on due dates.
• Fast and up-to-date information transfer enabling speedier
decisions, by interconnecting computerized branches and
controlling offices.

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C) For the Customer: Nabil Bank Limited is aware of customer's need for new
services and plan to make them available. IT has increased the level of
competition and forced them to integrate the new technologies in order to
satisfy their customers. They have already developed and implemented a
certain number of solutions among them:

• Self-inquiry facility: Facility for logging into specified self-inquiry

terminalsat the branch to inquire and view the transactions in the
account.
• Remote banking Remote terminals at the customer site connected to
the respective branch through a modem, enabling the customer to
make inquiries regarding his accounts, on-line, without having to
move from his office.
• Anytime banking- Anywhere banking: Installation of ATMs which
offer non- stop cash withdrawal, remittances and inquiry facilities.
Networking of computerized branches inter-city and intra-city, will
permit customers of thesebranches, when interconnected, to transact
from any of these branches.
• Telebanking: A 24-hour service through which inquiries regarding
balances and transactions in the account can be made over the phone.

• Electronic Banking: This enables the bank to provide corporate or

high value customers with a Graphical User Interface (GUI)
software on a PC, to inquire about their financial transactions and
accounts, cash transfers, cheque book issue and inquiry on rates
without visiting the bank. Moreover, LC text and details on bills can
be sent by the customer, and the bank can download the same. The
technology used to provide this service is called electronic data
interchange (EDI). It is used to transmit business transactions in
computer- readable form between organizations and individuals in a
standard format.

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 As information is centralized and updates are available simultaneously at all
places, single-window service becomes possible, leading to effective
reductionin waiting time.

2.5 Communication
In this Field Study Report, we have discussed what is communication, channels
ofcommunication, types of communication in an organization, interdepartmental
communication in an organization, policies regarding communication &
decision-making approach etc. For this purpose, we have visited and studied the
functions relating to our topic of “Nabil Bank Limited”.

Communication may be defined as the transfer of information from sender to

receiver, with the information being understood by the receiver. The
communication function is the means to unify an organized activity, through
transfer of information from one individual to another, or from one system to
another. According to Nabil Bank Limited They define communication by
focusing on three objectives:

• A= Attention

• B= Brief

• C= Clarity

2.5.1 Importance of Communication

Communications is the means by which people are linked together in an
organization to achieve a common purpose. Indeed, group activity is impossible
without communication because coordination and change would not be
affected. Sociologists and psychologists have also realized the importance of
communication in interpersonal relationships, and have focused their study on
communication networks.

Nepal Bank Limited give more importance to communication because they

emphasize On Attention, Brief & clarity of communication & Nabil retain
customers throughproper communication.

2.5.2 Purpose of Communication

The purpose of communication in an enterprise is to effect change. In an

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organization, there can be two types of communication, i.e. internal and
external. Internal communication means communication within the
organization, whereas external communication is the communication with the
outside environment.

Internal Communication:
Inside communication means giving and receiving information by all
hierarchical levels. It includes vertical communication covering downward
communication, upward communication, horizontal communication and
diagonal communication. It includes communication flowing at any
intermediate level as well as at operating level, or top management level,
because internal communication is indeed required byall who work together in
an organization to accomplish common goal.

Internal Communication in Nabil Bank

Internal communication of Nabil Bank Limited is mainly downward, but
upwardand crosswise communication is also encouraged.

• Establish and disseminate goals of the organization.

• To develop plans for achievement of these goals.
• To organize human and other resources effectively and efficiently.
• To select, develop, and appraise members of the organization.
• To control all activities.

Means of Internal Communication:

• E-mails

• Faxes

• Letters

• Reports

• Memo

• Telephones

• Conferencing

• Meetings

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 Following are the channels that Nabil BANK uses to communication within
the organization. The most important channel they focus to communicate is
“E-MAILS”. All work is done through Email’s. This E-mail system is
design by their IT department who is responsible for controlling it &
gives access to each & every person within the organization. They
communicate on daily basis internally & externally both to Communication
more clearly & correctly.

And the other work is done by using different channels that are letters,
reports etc. Different types of reports are prepared on suggestions or
recommendations on personnel, activity execution time and plans for
overcoming the difficulties.

External Communication

External communication is equally important as internal communication to

provide a link between the employees and the shareholders and other third
parties. As a matterof fact, external communication is considered as lifeblood
of the modern business. External communication can be arranged by oral or
verbal communication as well as through written media. Telex, television,
telephone, tele‐printer, transmitters, STD, ISD, and other modern sophisticated
communication technologies can be used for external communication. Written
media like letters, circulars, notices, legal notices, newspapers, magazines,
manuals, periodical reports, pamphlets etc., are also used towards external
communication.

External Communication in Nabil Bank Limited

External communication helps the managers of IFL (Institute for Financial
Literacy)to become aware of:

• The needs of customers.

• The availability of suppliers.
• The claims of stockholders.
• The regulations of government
• The concerns of the communities

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Means of External Communication

• Toll Free Number UAN

• Video Conferencing

• Audio Conferencing

• Newspaper

• Website

• Marketing Mobilization

• Letters

These are the channels that Nabil uses to communicate with external
environment that includes customer, suppliers, stockholders & government
etc. Nabil Communicate withtheir customers in a better way & correctly to
retain their customers. Their objective is communicating clearly with
customers. For this they provide facilities to their customer such as a toll-
free Number through this customer gets information regarding their
Accounts & services or anything they want to know. By communicating in
that way Nabil gain the loyalty of customers. Even no little confusion occurs
in communication because while communicating with customer or making
any contract they confirm it many times. So, less chances of
misunderstanding occurs. Letters are written to the customers as well as to
other external agencies like suppliers, taxation authorities, governmental
regulatory bodies etc.

2.6 Software as Enterprise Application

A typical firm uses various kind of information system software and application
for conducting, processing or evaluating their day-to-day activities.
Considering Nabil bank also uses various types of software/application for
different department according to its uses and need. Some of the information
system used by Nabil Bank is mentioned below:

1. Customer account application

This application is used by Nabil Bank where customer account is

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 maintained on the system and referenced by the account number in the
general ledger. The customer account number is the link for the customer
with the online and offline banking system applications. Customer account
information is also the basis for transaction exception reporting for various
customer account issues.

2. Loan accounting application

This application is used in order to make decision regarding how much loan
should be provided by bank. Managers can access data to examine the bank
loan portfolio, generate compliance check for the auditors and track loan-
loss reserve account. Through this application bank (Nabil bank) personnel
is able to processthe forms and paperwork needed to make decision on
customer’s credit standing.

3. General ledger systems

It is at the core of accounting process and information systems in banking.
The general ledger is the record accessed to perform account transactions.
It records every transaction, which interfaces with the designation of
accounts. Banking general ledger system operates on mid-range software
which can be out of the box software customized for banking industry
applications.

4. Mortgage banking applications

For banks in the banking industry, mortgage bank application modules
create and maintain information according to the mortgage loans provided
by banks to its customers. Nabil bank has been providing housing loans, hire
purchase loans(loan facilities to purchase new/used vehicles for commercial
purpose).

5. Anytime and anywhere banking

Installation of ATM’s which offer non- stop cash withdrawal, remittances
and inquiry facilities. Networking of computerized branches, inter-city and
intra-city will permit customers of these branches, when interconnected,
to transact fromany of these branches.

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6. Electronic banking
This enables the bank to provide corporate or high value customers with a
graphical user interface (GUI) software on PC, to inquire about their
financial transactions and accounts, cash transfers, cheque book issue and
inquiry on rates without visiting the bank. Nabil e-Banking provides secure
communications using 128-bit encryption security that assures you of secure
transactions made with the Bank. NBL e-banking has dual factor
authentication with the features of One Time Password (OTP) for fund
transfer.

7. Mobile banking
Mobile banking is 24 hour service through which inquiries regarding balance and
transaction in the account can be made over the mobile. Nabil Mobile Banking is a
convenient and safe transaction banking application offered online. You can manage and
access your Nabil Bank accounts quickly and securely either through SMS, WIFI, 3G or
Edge. With Nabil Mobile Banking application, you can access and manage your Nabil
Bank accounts to perform the following services.

2.7 IT for Firm’s Operation

Banking Operations: Understanding Various Transactions & Activities Nabil
Bank performs various types of transactions and activities to support their
banking business. These transactions may include making or accepting
payments, trading, clearing and settlement of accounts, and custody. Knowing
the operational aspects of banking is very important for understanding the value
chain of the banking industry. Now, we will discuss the most important
supporting activities performed by Nabil Bank Limited. The key operational
activities are listed below:

1. Acceptance of Deposits

2. Lending of Funds

3. Clearing of Cheques

4. Remittance of Funds

5. Locker & Safe Deposits

6. Bill Payment Services

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 7. Online Banking

8. Credit & Debit Cards

9. Wealth Management

10. Overseas Banking Services

Explanation:

1) Acceptance of Deposits: Deposits are the basis of the loan operations

since banks are both borrowers and lenders of money. As borrowers they
pay interest and as lenders, they grant loans and get interest. These
deposits are generally taken through current account, savings account
and fixed deposits. Current account deposits can be withdrawn to the
extent of the balance at any time without any prior notice. Savings
accounts are for encouraging savings by individuals. Banks pay rate of
interest as decided by central banks on the deposits. Withdrawal from
these accounts has some restrictions in relation to the amount as well as
number of times in a given period. Fixed accounts are time deposits with
higher rate of interest as compared to the savings accounts. A premature
withdrawal is permissible with a percentage of interest being forfeited.
2) Lending of Funds: Second major activity of Nabil banks is to provide
loans and advances out of the money received through deposits. These
advances can be made in the form of overdrafts, cash credits,
discounting trade bills, term loans, consumer credits and other
miscellaneous advances. The funds lent out by banks contribute a great
deal to trade, industry, transport and other business activities.

3) Clearing of Cheques: Cheques books are issued to the holders of

accounts in banks. Cheque is a negotiable instrument and most
convenient and widely used credit instrument. Cheques are used to
facilitate trade and business by endorsements and withdrawal of
deposits. Nabil Bank render a very important service to their customers
by collecting their cheques drawn on other banks. It is the most
convenient and an inexpensive medium of exchange that does notrequire

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 actual movement of cash from one transacting party to another. Mainly,
two types of cheques are often used bearer and crossed. Bearer cheques
can be encased immediately at bank counters whereas crossed cheques
can only be deposited in the payees account.

4) Remittance of Funds: Nabil also facilitate fund transfer from one place
to another, leveraging the vast network of branches that are
interconnected to each other. Many banking instruments are in usage for
enabling transfer of funds from one account to another like bank drafts,
pay orders, wire or mail transfers. Bank earns nominal commission by
way of bank charges on some of the transfers. The bank issues a draft
for the amount at its own branch which can be credited to another
account which might be with different branch or different bank. Banks
collect the amount on behalf of the depositor which is known as clearing
process.

5) Lockers & Safe Deposits: Bank safe deposit lockers are a good option
for safeguarding valuables and important documents. Each locker is
operated by combination of two sets of keys, one for the customer,
and the other with the bank. The locker can only be operated if both
the keys are used. Nabil chargenominal fees to provide the locker
facility.

6) Bill Payment Services: Banks also provide services related to bill

payments, payment of insurance premium, collection of dividends etc.
Recurring payments can be automated for payment using the facilities
extended by modern banks. Account holders can directly pay from their
account or using credit/debit cardsfor their electricity, gas, landline and
mobile phone billers and many more.

7) Online Banking: The growth of Internet and e-commerce has

transformed banking industry and customers are fast moving from
branch banking to virtual banking. Users with internet on PC or Mobile
can get connected to the banks website and avail a variety of banking
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 services and functions. These services lower the transaction costs and
add to the ease and speed of the transaction flow.

8) Credit & Debit Cards: Credit cards issued by banks are another form
of lending, and they are not only good business for the bank, they help
the economy.Offering Credit Card is a profitable form of lending for
banks that has greatly expanded in the last few years. Banks compete
fiercely for this business and offervarying forms and types of credit-card
accounts. Many banks change or negotiate rates with consumers, and
special low-rate promotions and various types of discounts are being
offered as an incentive to use card and do purchasing. People buy things
with credit, and keep merchandise moving and manufacturing producing
at a more rapid rate than if transactions had to take place in cash.
Although there is risk in the unwise use of credit cards by consumers,
thejudicious use of credit stimulates the economy.

9) Wealth Management: Wealth management services offered by banks

include a full range of financial services and products clubbed with
advisory services from expert professionals. Wealth management
services are provided to an affluent client and may relate to any financial
product. The purpose of these services is to grow the wealth of the client,
secure the financial position and make most of the money over the long
term. Various investment avenues could be mutual funds, international
global trading, time deposits, foreign exchange solutions or dual
currency placement etc.

10) Overseas Banking Services: Banks offer financial services, such as

payment accounts and lending opportunities, to foreign clients. These
foreign clients can be individuals and companies, though every
international bank has its own policies, most of them offer various
products and services to cater to the needs of their international clientele.
Banking products for this sector includes offshore banking, savings,
investments, and mortgages clubbed with a broad range of FX services
including forward and spot transactions.

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2.8 IT Infrastructure

IT infrastructure is increasingly seen as an important factor affecting a banks

competitive performance. IT infrastructure is the enabling base of shared IT
capabilities that provide the foundation for other business systems. Banking IT
infrastructure typically consists of IT components like common hardware,
software, communication technology, databases, standards, tools etc. These
provide the base for shared services between a large range of business
application. IT infrastructure differsfrom business application in that it serves a
shared and common enabling foundation for the future applications and services
of all business units.

Organizations Structure:

Figure 3 Organizational Structure of Nabil Bank Ltd.

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Since, Nabil Bank has many branches that , it has divisional structure. A central headquarters
supports a number of it’s branches that makes their own decisions. It allows line managers to
maintain more control and accountability. Also, day by day decision making is decentralized,
so that the central team can focus in “big picture” strategic plan. This allows ensuring that the
necessary support structures are in place.

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Organization Structure Concerning IT

Figure 4 IT Organizational Structure of Nabil Bank

This organizational structure is concerned with IT. Card system is the IT department that
controls IS/IT resources, authorization and authentication into the system of otherdepartments.
Core system is with Card System and other departments are simply provided with tools to use
the system of Nabil Bank Limited. Card system controls overall IT/IS resources used by other
departments. Each department has a department head including Card system. It keeps an eye
on how the resources are being used, controls how much resources can be used by each and
every departmentto ensure privacy of information, manages authorization and authentication
of such departments, and promotes fair use of IT/IS resources, but it acts as a department itself.
It interlinks other departments and provides them with tools to use the systemof Nabil Bank
Limited. It holds centralized control over the system and merely provides other departments
with tools to use the system to access information concerned to the functional areas of such
departments. For e.g.: Marketing department is provided with tools to access information
related to marketing only. Card system strictly prohibits them to access information that is not
concerned to them.
This is why, Card system has central control over core system and it interlinks
other departments by simply providing them with tools to access that part of
information concerned only to them.

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2.9 Security
System Security Threats and Types
Security refers to the policies, procedure and technical measures used to prevent
unauthorized access, alternation, theft or physical damage to information
system.

a) Malicious software: Malicious software are called malware

includes threats such as computer viruses, worms, and Trojan
horses. Computer virus is a greatest threat to the information
system. A virus is a parasitic program that infects another
legitimate program, which is sometimes called host. It is referred
as the rogue software that attaches itself to other programs or
datafiles in order to be executed, and may be highly destructive to
files, computer memory, and hard drives. To infect the host
program, the virus modifies the host to store a copy of the virus.
Malwares include virus, worm, spyware, Trojan horse, key stroke
loggers etc.

b) Internal threat of employees (social engineering): We usually

think the security threats to a business firm are from the outsiders
but criminal attacks are predominantly likely to happen from the
inside of the company itself. Unfortunately, primary sources of
the security breaches are employees who have the privilege to
access the system and it data. Most breaches in security

occur when an employee accidentally compromises security

because they haveno idea that their actions are potentially
dangerous. Employees sometimes become insensitive about the
security standards of the organization and roam through the
company system. Employees may cause security breaches
forgetting the security standard or they may also do it for
financial gain or just to make fun of sloppy internal security
procedures. So, to safeguard the information system and its
valuable data the executive body of a business firmalways need to
aware of internal threats and apply safety measures. The most

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 effective way to reduce the internal security threat is to offer
education and training programs to the respective employees
about the security policies ofthe organization and strictly inform
the penalties for its violation.

c) Software vulnerability (bugs): Security refers to the policies,

procedures, tools and techniques, used to prevent unauthorized
access, modification, theft, or physical damage to information
systems. Security protects the assets of the organization from
accidental input or output errors, thefts, physical damages and
illegal access. Threats to computerized information systems
include hardware and software failure: user errors: physical
disasters such as fire or power failure: theft of data, services, and
equipment: unauthorized use of data: and telecommunication
disruptions. Nepal Bank is currently using PCIDSS
3.2 Certified for the system security. PCIDSS 3.2 is framework
for a robust payment card data security process. The Payment
Card Industry Security Standards Council (PCI SSC) has
published a new version of the industry standard that businesses
use to safeguard payment data before, during and after purchase.
PCL Data Security Standard (PCL DSS) version 3.2 replaces
version 3.1 to address growing threats to customer payment
information. Companies that accept, process or receive payments
should adopt it as soon as possible to prevent, detect and respond
to cyber-attacks that can lead to breaches.

System Security Tools and Types

System security tools used in Nabil Bank Limited are;

a) Penetration Test Tool: A penetration testing tool is a tool used

for testing the security of a Web application. Penetration testing
(also called pen testing) is the practice of testing a computer
system, network or Web application to find vulnerabilities that an
attacker could exploit.

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b) Card Discover Tool: Card discover tool helps to identify the
location from where the card is swapped and the transaction
occurred using that smart cards.It helps to preserve integrity of
cards holders.

c) Database Firewall: Database firewalls are a type of web

Application Firewalls that monitor databases to identify and
protect against database specific attacks that mostly seek to
access sensitive information stored in the database.
d) Network Firewall: A network firewall refers to a network device
which blocks certain kinds of network traffic, forming a barrier
between a trusted andan untrusted network. It is analogous to a
physical firewall in the sense that firewall security attempts to
block the spread of computer attacks.
e) Intrusion Detection System (IDS) & Intrusion Prevention
System (IPS): An Intrusion Detection System (IDS) is a device
or software application that monitors a network or systems for
malicious activity or policy violations. Any malicious activity or
violation is typically reported either to an administrator or
collected centrally using a security information and event
management (SIEM) system. A SIEM system combines outputs
from multiple sources, and uses filtering techniques to
distinguish malicious activity from false alarms.An Intrusion
Prevention System (IPS) is a system that monitors a network for
malicious activities such as security threats or policy violations.
The main function of an IPS is to identify suspicious activity, and
then log information, attempt to block the activity, and then finally
to report it. IDS (Intrusion Detection System) and IPS (Intrusion
Prevention System) both increase the security level of networks,
monitoring traffic and inspecting and scanning packets for
suspicious data. Detection in both systems is mainly based on
signatures already detected and recognized. The IDS only monitor
traffic. The IDS contain a database of known attack signatures.
And it compares the inbound traffic against to the database. The

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 IPS monitors the inbound packets and what they are really being
used for before deciding to let the packets into the network.
f) Security Information and Event Management (SIEM):
Security Information and Event Management (SIEM) tool for
cyber threat analysis, IT compliance maintenance, and provide
suspicious activity alerts. A SIEM system combines outputs from
multiple sources, and uses filtering techniques to distinguish
malicious activity from false alarms. Nabil Bank uses SIEM
software of LogRhythm.
g) File Integrity Monitoring (FIM): File Integrity Monitoring
refers to a process for making sure that files have integrity; in
other words that they have not been damaged nor manipulated
over a certain time period. File integrity monitoring tools are
generally utilities for internal processes that check current file
integrity against a predetermined baseline. Nabil Bank Limited
uses FIM software of LogRhythm.

2.10 MIS in Decision Making

For decision making in Nabil Bank Limited, first of all, problems are
identified and analyzed. Then, Card system generates necessary reports
from collected data as per the request of other departments. Data are
analyzed and different alternativesolutions to the problems are generated
and communicated to the head of Card Centre. Department heads and
head of Card center works together to select the best alternative solutions
to problems.

Card system interlinks all the departments. In other words, card system is
the IT department that acts as the head of all the other departments, but
card system is also a department itself. It acts as the head of other
departments because its control IS and IT resources, authorization and
authentication of other departments. From collected data,card system will
generate necessary reports as per request of other departments.
Departments will use those reports to acquire necessary data and identify

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 different alternative solutions of problems and communicate it to the
head. Finally, head and department head will work together to select best
alternative out of many alternatives that is cost friendly as well as best for
the organization. This is how decision flows in Nabil Card Centre.

A) Steps undertaken by Nabil Bank Limited to Make Decisions

1.) Identify problems
2.) Study and analyze identified problems
3.) Gather necessary data that are related to problems and generate reports
4.) Identify various alternatives to problems
5.) Analyze all the alternatives
6.) Report the result of analysis to department head who will in
turn report tohead of Card Centre
7.) Hold a meeting to discuss the analyzed alternatives
8.) Select the best alternative
9.) Implement the decision

How the decisions are implemented depends upon the problem. If the
problems can be immediately solved, decisions are implemented
immediately. If the problems need to be solved a part at a time, a master
decision will be divided into parts and are implemented one at a time by
analyzing the effects. All in all, how the decisions are implemented
depends upon the type of decision i.e. whether the decisions are routine
or basic, programmed or non-programmed, tactical or operational, and
formal or informal.

2.11 System Changes and Redesign

Technology is a business driver and is vital for the continuous success and to
spur growth of business. Technologies facilitate banks to introduce new
products and services, reach close to the customer, and narrow down the digital
divide thereby supporting financial inclusion. The emergence of self-service
banking technologies such as ATM, Online Banking and Mobile Banking has
ushered the concept of anytime and anywhere banking. With the advancement
in these technologies new products are gaining more attention amongst
customers’ reasons being lower cost of operation and easily accessible services.
For example, Mobile banking, a symbiosis oftechnology and financial services
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is the hottest area of development in the banking sector. However, the rate of
success of these new products will depend on the suitability of the technology
selected by banks. For a public sector bank like Nepal Bank in order to achieve
targeted goal with two mission statements & quot; Network for inclusion &
quot; and & quot; Enhancing the Value & quot; should be able to facilitate its
customers with high-tech services. It also needs to re-imagine tech- enabled
services continuously and be ready to face innovative technological challenges
such as, security and compliance to the security mandates of all forms of
electronic products, services and transactions.

• Implementation of open standards for banking functionalities.

• Growing customer awareness and need of transparency.
• Close integration of bank services with web-based e-commerce or even
disintermediation of services through direct electronic payments (e-
Cash).
• More convenient international transactions.
• A well-defined IT plan/policy and audit plans.

Nabil technology adaptation will definitely help to reshape itself in

Nepalese banking industry in recent future. Nabil Bank is committed to
take up technology trends in safe and secure manner to deliver innovative,
effective and efficient services to the satisfaction of people of different
demography.

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CHAPTER- 3: CONCLUSION, RECOMMENDATION AND REFERNCE
3.1 Conclusion
Our aim to visit Nabil is to collect some information and get knowledge about
information system in the bank. Nabil bank has successfully utilized its MIS in
providing banking products to its customers and also in improving its
organizational efficiency. It is one of the few banks which adapts quickly to the
changing environment and keeps pace with the ever-changing technology.
Management information system has been a boon to Nabil bank. The bank has
gained tremendous lead over its competitors who lagged behind in incorporating
MIS in their organizations. Today MIS has played a crucial role in giving it a
competitive advantage. Though the current MIS in the bank is highly beneficial,
the bank is very keen on researching new avenues to improve its MIS system
for better efficiency in its operations and to continue to serve its customers
effectively.

3.2 Recommendations
MIS information system in Nabil was very effective and efficient. It has been a boon to Nabil
though we would like to recommend the bank on certain issues and flaws that we could
recognize during our visit and research. Following sources should be improved in order to
develop more fluency and efficiency in company’s MIS:
• User Training
• System Redesign
• Time Management
• Innovation
• System Analysis.\

3.3 References
(Nabil Bank Limited, n.d.)

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