Visit Report: Nepal Merchant Bank, Babar Mahal 24 May 2017 Col Bhaikrishna Khatri Col Sagar Bahadur Thapa Col Krishna Prasad Sapkota Col Shantosh Ballava Poudyal Col Sher Singh Bista Col Dhruba Prakash Shah T/Col Umeshwar Yadav T/Col Khum Bahadur Kunwar

Sequence Background and Activities Topics and Discussions 3. Overview of the NMB 4. Distinguishable Features of the NMB 5. NMB: A Center of Excellence? 6. Lessons Learnt

BACKGROUND AND ACTIVITIES Visit as a part of the Leadership and Management package of NASC. Objective was to learn about the roles, functions, leadership and management aspects of a private organization. Brief by the CEO, Chief Business Officer and Human Resources Manager. Discussions.

TOPICS AND DISCUSSIONS Overview of the Organization Corporate Governance Human Resource Management

Overview of the Organization A class financial institution established in 1996 80 Branches, 130 Footprints, 901 employees Transaction range: 50,000 – 5 Billion Total holding: 6.4 Billion Balance sheet: Loan 61 and Deposit 71 Billion Subsidy companies of NMB group: NMB Bank NMB Capital NMB Microfinance Partner agencies: FMO Development Bank of Netherlands (51%), Malaysian Partner (7%), Employees Provident Fund (16%), and rest Public and Local business houses

Distinguishable Features Member of Global Alliance for Banking on Values after the Global Financial Crisis of 1990 Vision: Value Based Banking (People, Planet and Prosperity) Solution Driven (Understanding the problem, design a solution and execute) Beyond Bricks and Mortars (Digitalization and paperless) Unique vision of proportional emphasis on profit and service Technology oriented

Distinguishable Features contd. Focus: Focus on generating employment Social impact Ethical banking Investment areas Energy – (Hydropower 2-50 MW) Hospitality business SME (Semi Micro Enterprises) Priority on ethics and code of conduct Promoting sustainable self reliance – Energy Creating environment to attract FDI

NMB: A Center of Excellence? Limitation: Evaluation based upon the information provided by the briefers and interaction Analysis of the following Governance Structure: Entities to attract/seek businesses- Customer service Entities to govern effectively and efficiently – Risk management Entities to enforce regulation, audit and compliance – Regulatory Entity for effective HR management (Recruitment, staffing, incentives) Organization and governance structure appear robust

NMB: A Center of Excellence? Leadership: Professional, competent, experienced and aware Showed ownership of the vision and commitment Conscious to the organizational challenges and committed to address issues Management Efficient Responsive Forward looking Innovative

NMB: Mantra for Success Value based banking – Social impact Self reliance movement – Energy is fundamental for cross sectoral development Effective HR – Annual Performance Appraisal, Internal Promotion Opportunities Ethical code of conduct – Employee training and education – NMB Academy Project selection - Risk and social impact analysis Strong and able leadership – Experience, education, vision and willingness, teamwork Interpersonal Communication- Circulars, Memorandums, town halls

NMB Visit : Key Learning Successful organizations have clear and attainable vision Correct organizational structure is the foundation for effective services and functioning Motivated leaders and competent staffs driven organization achieve the institutional goals Efficient management binds the leaders with the staffs and fosters motivation Interpersonal relationship are necessary for harmonious working atmosphere leading to productivity Staff training and education is a key element for organizational growth Staff welfare is crucial for motivation Staff attrition is a challenge in modern day competitive corporate environment

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