Project Work
On The Report
MIS
OF
MEGA BANK
Submitted by:
Submitted to:
Jenith Roy
Rabindra Joshi
12 (Morning C)
Roll: 16
Sir
Faculty of Computer
ACKNOWLEDGEMENT
We would like to express our deepest sense of
gratitude to our project guide Rabindra Joshi Sir, for
his
valuable
guidance,
inspiration
and
encouragement that we received from them
throughout the course. Our efforts in accomplishing
this project are a result of constant motivation and
valuable learning imparted by him.
We would also like to thank our family and friends
& the professionals who extended their support and
have been a source of encouragement and
inspiration throughout the duration of this project.
1.INTRODUCTION
1.1 MANAGEMENT INFORMATION SYSTEM
Definition: A Management Information Systems (MIS) is
 An integrated user machine system
 For providing information
 To support operations, management, analysis and decision
making functions in an Organization
The system utilizes
 Computer hardware and software
 Manual procedures
 Models for analysis , planning , control and decision
making
 A database
The development and management of information technology tools
assists executives and the general workforce in performing any tasks
related to the processing of information. MIS and business systems are
especially useful in the collation of business data and the production of
reports to be used as tools for decision making.
1.2 APPLICATIONS OF MIS
With computers being as ubiquitous as they are today, there's hardly any large business that
does not rely extensively on their IT systems. However, there are several specific fields in
which MIS has become invaluable.
* STRATEGY SUPPORT
While computers cannot create business strategies by themselves they can assist management
in understanding the effects of their strategies, and help enable effective decision-making.
MIS systems can be used to transform data into information useful for decision making.
Computers can provide financial statements and performance reports to assist in the planning,
monitoring and implementation of strategy.
MIS systems provide a valuable function in that they can collate into coherent reports
unmanageable volumes of data that would otherwise be broadly useless to decision makers. By
studying these reports decision-makers can identify patterns and trends that would have
remained unseen if the raw data were consulted manually.
MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer
a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can
provide predictions about the effect on sales that an alteration in price would have on a product.
These Decision Support Systems (DSS) enable more informed decision making within an
enterprise than would be possible without MIS systems.
* DATA PROCESSING
Not only do MIS systems allow for the collation of vast amounts of business data, but they also
provide a valuable time saving benefit to the workforce. Where in the past business information
had to be manually processed for filing and analysis it can now be entered quickly and easily
onto a computer by a data processor, allowing for faster decision making and quicker reflexes
for the enterprise as a whole.
1.3 BANKING INDUSTRY
The banking industry was once a simple and reliable business that took deposits from investors
at a lower rate and loaned it out to the borrowers at a higher rate. However deregulation and
technology led to a revolution in the Banking Industry that saw it transformed. Banks have
become global industrial power houses that have created ever more complex products that use
risk and securitisation in models that only PhD students can understand. Through technological
development, banking services have become available 24*7, 365 days a year, through ATMs,
Online Banking Facilities, ECS where everything from stock to currency futures contracts can
be traded.
The Banking Industry at its core provides access to credit. In the lenders case, this includes
access to their own savings and investments, and their interest payments on those amounts. In
the case of borrowers, it includes access to loan for the creditworthy, at a competitive interest
rate
Banking services include transactional services such as verification of account details, account
balance details and the transfer of funds, as well as the advisory services that aid individuals
and institutions to properly plan and manage their finances. Online Banking channels have
become pivotal in the last decade.
1.4 ABOUT THE COMPANY:
MEGA BANK started as a wholly owned subsidiary of MEGA BANK Limited, a Nepali
financial institution, in 1994. Four years later, when the company offered MEGA BANK
Bank's shares to the public, MEGA BANK's shareholding was reduced to 46%. In the year
2000, MEGA BANK offered made an equity offering in the form of ADRs on the New York
Stock Exchange (NYSE), thereby becoming the first Nepali company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired
the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal
year,
the
bank
made
secondary
market
sales
to
institutional
investors.
With a change in the corporate structure and the budding competition in the Nepali Banking
industry, the management of both MEGA BANK and MEGA Bank were of the opinion that a
merger between the two entities would prove to be an essential step. It was in 2001 that the
Boards of Directors of MEGA BANK and MEGA BANK Bank sanctioned the amalgamation
of MEGA BANK and two of its wholly-owned retail finance subsidiaries, MEGA BANK
Personal Financial Services Limited and MEGA BANK Capital Services Limited, with MEGA
BANK Bank. In the following year, the merger was approved by its shareholders, the High
Court of Gujarat at Ahmadabad as well as the High Court of Judicature at Mumbai and the
Reserve Bank of Nepal.
VISION:
To be the leading provider of financial services in Nepal and a major global bank.
MISSION:
We will leverage our people, technology, speed and financial capital to:
* Be the banker of first choice for our customers by delivering high quality, world-class
product and services.
* Expand the frontiers of our business globally.
* Play a proactive role in the full realisation of Nepal’s potential.
* Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
* Maintain high standards of governance and ethics.
* Contribute positively to the various countries and markets in which we operate.
* Create value for our stakeholders.
PRESENT SCENARIO
MEGA BANK Bank has its equity shares listed in Nepal on Nepal Stock Exchange and the
National Stock Exchange of Nepal Limited. Overseas, its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008,
MEGA BANK is Nepal's second-largest bank, boasting an asset value of Rs. 3,744.10 billion
and profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.
BRANCHES & ATMS
MEGA BANK Bank has a wide network both in Nepali and abroad. In Nepal alone, the bank
has 120 branches and about 4,644 ATMs. Talking about foreign countries, MEGA BANK
Bank has made its presence felt in 18 countries - United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
The Bank proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of
which, the UK subsidiary has established branches in Belgium and Germany.
PRODUCTS & SERVICES
Personal Banking

Deposits

Loans

Cards

Investments

Insurance

Demat Services

Wealth Management
NRI Banking

Money Transfer

Bank Accounts

Investments

Property Solutions

Insurance

Loans
Business Banking

Corporate Net Banking

Cash Management

Trade Services

FX Online
1.5 MANAGEMENT OVERVIEW
ORGANISATION MANAGEMENT CHART:
CEO
EXECUTIVE DIRECTOR
Regional
Managers
Branch
Managers
Branch
Managers
Regional
Managers
Branch
Managers
Regional
Managers
Branch
Managers
Branch
Managers
Branch
Managers
2. OVERVIEW OF FINANCIAL MIS
Databases of
Business
transactions
Databases of
Transaction
Financial
processing
Databases
MIS
systems
of valid
transactions
Intern
et or
Business
transactions
Financial statements
OperationalUses and managemen
databases
of funds
Financial statistics
for control
Business
transactions
Customers,
Suppliers
2.1 NETWORK DIAGRAM
BRANCH NETWORK
DATA CENTER NETWORK
2.2 LITERATURE REVIEW
An information system is comprised of all the components that collect, manipulate, and
disseminate data or information. It usually includes hardware, software, people,
communications systems such as telephone lines, and the data itself. The activities involved
include inputing data, processing of data into information, storage of data and information, and
the production of outputs such as management reports.
Creation Of Management Reports
Incorporate all the relevant data from every part of organisation’s operation into a single
management overview – and then easily produce presentation quality reports
Constant monitoring of banking operations
MIS offers dynamic, real-time statistical reporting facilities across all channels, account
managers, clients, products and branches/profit centers. While the standard reporting facilities
includes comprehensive reports, the open design of the system allows to use industry-standard
enquiry and reporting tools.
Compliance Reporting
It offers complete compliance reporting modules, readily available for various
countries. Since MIS is a fully integrated banking system, compliance reporting covers all
banking operations and complies to Basle II regulations.
User-defined Reports
MIS workstations include an easy-to-use Report Writer that enables users to compile
specific data from any number of sources and view it on screen or print-out in various formats.
Data can be sorted or grouped, and values summarised or averaged.
Customers Database
MIS in a company keeps record of customers of the company. It helps to quickly classify the
bank’s customers in terms of institutional customers, High Value Customers and retail customers. This
helps the bank to serve efficiently as each type of customer’s needs will vary.
Innovative Services
MIS helps to serve the customers innovatively. It helps to deliver services innovatively such as
mobile banking, rural banking. As MIS helps in segmenting the current and prospective customers.
Knowledge Management
Today the banks have repositories of various types of knowledge. It can be about their
customers, markets, employees, critical incidents etc. But these knowledge have to be managed
effectively to exploit them in the time of need. MIS supports the knowledge management of the bank
through various softwares.
Risk Management
Risk management is a very crucial function of the bank. MIS helps the bank through various
modules like DSS, EIS etc that help the management to take calculated risks. This helps the bank to
take advantage of the opportunities but at the same time helps the banks to prepared to face any risk
that arise in the course of pursuing its goal.
3. INFORMATION SYSTEM IN MEGA BANK BANK:
MIS creates an evolution in whole world in every business and so in banking system.
Now in MEGA BANK Bank with the help of IS the daily transactions are recorded in branch
computers and these branch computers are then connected to the main head office server so in
this way they keep their daily process update on daily basis.
As Time is money, and due to IS MEGA BANK Bank make thousands of transactions
per day. In fact, IS makes whole process much more quick, simple and reliable. Due to IS
employees can easily connect with other branches, customer service get improved, online
banking emerged and lot of others benefits.
MEGA BANK Online is an innovative Online Banking service that you can tailor to
suit your precise banking needs. It gives you convenient, round-the-clock banking services
ranging from day-to-day account transfer transactions to real-time valuable financial
information. Now you can manage your finances anytime, anywhere.
3.1 ORGANIZATION COMPUTING RESOURCES:
Software Resources:Following software’s are used for the functioning of our information system and
organization;
Application Software:Following application software’s are used in our organization and functioning of our
information system;

Microsoft Office

NOD32 Anti-Virus

Adobe Reader
System Software:Following application software’s are used in our organization and functioning of our
information system;
•
Operating System (Windows XP and Linux) for PC’s.
•
Windows 2003 server for mainframes.
Hardware Resources:Following hardware resources are required for the functionality of IS and organization:

Personal computers

Canon Document Scanners

HP Printers

Networking cards

Currency counter

Coin counters

HP Digital Scanners
 Dell Mainframes
3.2 COMPUTING TYPE:In MEGA BANK bank, they are using client/server network because it is accessible
and the employees easily share the data and this network is cheaper than others and this is
easily maintainable and manageable. All the data save in main server or HUB and employees
can easily access it. This type of computing system provides an easy access and efficient flow
of data, which increase the functionality of organization.
4.ORGANIZATION TRANSACTION PROCESSING SYSTEM:
Transaction Processing System:
A Transaction Processing System (TPS) is a type of information system. TPSs collect,
store, modify, and retrieve the transactions of an organization. A transaction is an event that
generates or modifies data that is eventually stored in an information system. From a technical
perspective, a Transaction Processing System (or Transaction Processing Monitor) monitors
transaction programs, a special kind of programs. The essence of a transaction program is that
it manages data that must be left in a consistent state.
TPS in MEGA BANK:
Effective transaction processing system is working in MEGA BANK that offer
enterprise the means to rapidly process transactions to ensure the smooth flow of data and the
progression of processes throughout the enterprise.
Payroll TPS
In MEGA BANK payroll TPS is designed to get information and record of the employ
and then to calculate his/her annual earning.
It gets information about the employee from the employee’s department and from
general ledger and send it to payroll TPS from where it links that information with the previous
record and prepare a report which is forwarded to management. Management takes notice the
“LN” record of the employee’s efficiency to work and may declare added bonus or other
incentive. This report is checked and approved by the branch manager after which check is
issued to the employee. And when that check is cashed, the record is updated in the general
ledger as well as the master payroll (HUB).
Employ
ee Data
Payroll TPS
General
Ledger
Payroll
Master File
(HUB)
Management
Reports
Check
Passes
by
Manage
r
Check
Issued to
Employee
General
Ledger
Customer Identification:
In MEGA BANK there is their own information management named software “Virses”
is working which is connected to NADRA. So if any new client wants to open an account in
the bank the system automatically send a request to NADRA to check and verify the customer
ID number. Which helps the management to identify whether he/she is using his original ID
card or not.
Input
Virses
HUB
(ID #)
NADRA
Management
(customer identification)
Employees Record :
All employees are supposed to login when they enter the bank and logout on leaving,
by tracing their thumb impressions on biometric device. This device is connected with the HUB
which continuously makes record of their hours spent in the bank. Moreover, the bank has their
own setup named “LN” which makes records of all the transactions made by an employee. This
helps management to monitor the working efficiency of an employee.
Employe
e Job
Login
Biometric Device
&
LN
HUB
Employe
e Job
Logout
Real time Banking:
In many circumstances the primary factor is speed. For example, when a customer
withdraws a sum of money from his or her account the transactions are processed and the
account balance updated as soon as possible, allowing both the bank and customer to keep track
of funds. The new transaction is send to LN. The LN enters the HUB where the specified file
is accessed. The updates are made entered there and finally the update is done.
New
Transaction
s,
LN
Update
d
Updates
HUB
Online Complains:
MEGA BANK bank allows the customer the option of online complains. The customer
submits the online complain which is then processed by Customer Service TPS which is linked
by management and after the problem identification it is send to the concerned department.
Customer
Queries
Customer
Service TPS
Identify
Problem
Send to
Concerne
d Dept.
Advices:
As the records of all the customers are stored in main server (HUB) of MEGA BANK
bank, so in case if someone’s account balance is getting near to zero the system automatically
alert the management about that. Then manager take manual action and send him/her the advice
(a letter, mail or phone call) to check the account balance.
Accou
nt
Managemen
t
Alert
Advices Send
to Customer
HUB
Account Opening
This
TPS
is
designed
for
opening
a
new
account
in
the
bank.
Input: Give bio data, NIC no., income, city name.
Process:
Information
send
to
the
“virses”.
Output: new account opened in the bank.
Virses
Applica
nt
Identification
A/
C
De
Online Activity
Customer
Service TPS
HUB
New
A/C
Opene
d
Purpose: Transfer funds with the organization.
Input: Concerned Branch code, city name, account title, amount & the transaction.
Process:
The
information
will
send
to
organization
server
(HUB).
Output: Transfer of fund to the concerned branch.
Customer
Service TPS
Custom
er
A/C
Dept
Fund
Trnsfr to
Concerne
d Branch
HUB
ATM Card
Purpose: Easy with draw of cash.
Input:
Give
bio
data,
income
summary,
company
name,
NIC.
Process: NIC no. and bio data send to “virses” which directly linked to NADRA. If information
is
correct
then
Output: Issue of credit card.
it
is
forward
to
customer
service
centre.
Virses
Applica
nt
Identification
A/
C
De
New
A/C
Opene
d
Customer
Service TPS
HUB
ATM
Issued
Management information system:
Relationship of MIS with TPS:
MIS reports and summarizes the organization’s basic operations and these reports come
from the basic transition processing systems. In case of our organization the TPS’s of ATM
Cards, Payroll and Customer identification etc. provide the basic information about the
organization’s activities. These activities are then summarized in the form of reports for the
manager so that they can check whether the firm is working properly or not. If there are some
flaws then they take control measures to fix those flaws.
EBS (E-Billing Solutions):
The way people do business has been changed significantly with the advent of the
Internet Revolution. Today customers have an option to choose from a plethora of options
while shopping for that favourite item. Web Commerce or Ecommerce has witnessed a
significant increase in revenue year on year. You can now integrate this option to your website
in the various Secured Payment Gateway Options we have to offer. Technologies are the
authorized reseller for MEGA BANK Bank Payment Gateway Services in the state.
EBS (E-Billing Solutions) is the Merchant Account providing company partnered with
MEGA BANK Bank that visualizes you how to become more competitive and help you to
make the changes to your online payment processing for risk free business.
EBS "Payment Gateway" is specifically designed to accommodate the increasing
demand by e-commerce companies for sophisticated payment solutions to tap the enormous
opportunities for global Internet transactions. The system also includes several exciting new
technologies that enable e-commerce businesses to make the things more customized and
backend more user friendly with advanced features and technical know-how.
How It Works.
Step 1: Customer select and adds item in the shopping cart And places the order on your
(merchant) website.
Step 2: Customer selects to pay via credit card .
Step 3: Customer is redirected through EBS Payment Gateway to Transaction Processing Bank.
Step 4: Customer enters credit card details on Secured Payment page.
Step 5: Credit card information is transmitted securely to the corresponding bank for approval.
Step 6: Corresponding bank sends appropriate information to the transaction Processing bank.
Step 7: The result is forwarded to EBS (via the Transaction Processing Bank).
Step 8: Customer receives a confirmation and is redirected to your (merchant) website.
EBS has taken tremendous steps to secure your transactions from fraud, data piracy and
hacking. Some of the steps taken are as follows

An automated risk management system which triggers for all transactions and
flags the transaction for risk involved.

High Risk Transactions are manually investigated by our intelligence team and
Risk control unit.

RMS parameters.

Verisign 128 bit SSL encrypted.

Hacker safe certification.

PCI Audited servers.

Robust secured highly strategic data servers and network design for
Other Services through ATMs
Apart from the usual transactions involving the bank, some other services can also be availed
of by MEGA BANK Bank customers. These include:

Prepaid mobile recharge

Buying and renewing Internet packs (such as those of TATA Indicom Internet service
provider and Sify).

Making donations for Tirupati Tirumala Devasthanams, Nathdwara temple and Shri
Mata Vaishnodevi shrine.

Mutual fund transactions, and

Bill payments
Mobile phone as a Virtual Wallet
The mobile phone has been transformed into a virtual wallet – a new innovation in mobile
commerce. On September 19, 2005, Airtel, MEGA BANK Bank and VISA announced the
launch of mChq – a revolutionary new service – which is a credit card using the mobile phone.
This is the first mobile-to-mobile payment option which enables Airtel customers and MEGA
BANK Bank Visa cardholders to pay for their purchases with their Airtel Mobile phones. The
service has eliminated the need for carrying physical cash for making a purchase and also the
problems associated with the point of sale (POS) terminal since the mobile phone services as
a secure POS and a payment mechanism.
Mobile Banking Benefits
Mobile banking enables the customer to avail of many facilities by just sending an SMS. These
facilities, which are currently offered free of cost, are as follows:

Locating ATM

Locating branch

Locating drop box

Alert facilities like salary credit, account debit/credit, cheque bounce, etc., and

Queries on banking, cards and demat account
6. KNOWLEDGE MANAGEMENT
MEGA BANK has grown six-fold since its KM strategy was established in the year 2000. KM
made MEGA BANK is the second largest in Nepal. Central to MEGA BANK Bank’s success
has been its flexible, innovative methods, and a plethora of KM tools that were cannily
marketed to staff from the very start.
Initially, the organisation developed a broad technology-linked infrastructure, including a
corporate intranet, MEGA BANK Universe, employees could check the human resources (HR)
system for vacation entitlements, book days off or view their personal pension details.
Overcome any fear of technology as well as providing employees with a good reason for using
the portal on a regular basis. Employees believed that they should have a space on the intranet
where they could participate in collaborative activities, such as contribute or find documents,
engage in discussions and post or answer queries. This idea, in essence, first converted the bank
to KM.
MEGA BANK’s KM intranet portal was easily accessible from the main staff portal – to
provide a way of capturing and disseminating the knowledge of departing staff. The
KM programme is now deeply embedded in the bank, but not as a result of any directive from
top management. Employees work with the KM programme because they see its benefits
and realise the value it brings to them on a day-to-day basis. This is what makes it vibrant and
engaging. Everything they need should be at their fingertips, whether getting an answer to a
problem, checking a policy or accessing standard templates and formats such as letters,
agreements or guidelines. It is significant that a small project originally designed for about
1,200 employees in few locations has been flexible and scalable enough to cater for more than
30,000 employees in more than 600 locations, most of whom are customer-facing staff.
8. CONCLUSION
MEGA BANK bank has successfully utilised its MIS in providing banking products to its
customers and also in improving its organisational efficiency. It is one of the few banks which
adapts quickly to the changing environment and keeps pace with the ever changing technology.
The dramatic events ushering in the new century—from globalization and a final, major wave
of consolidation to regulatory changes and technology breakthroughs—are compelling the
bank to turn its focus toward efficiency and country relationship development.
MIS has helped the bank in the following ways:
 Operational effectiveness, internal efficiency.
 Collaborative tools to help create, cultivate, and disseminate knowledge.
 Accessibility to data, information, and knowledge.
 The ability to easily search across and retrieve relevant information
 A project management system based on complete project lifecycle
It is very crucial for the bank to continuously upgrade its MIS as the next 10 years will be
defined by accelerated expansion of business as the bank is growing nationally and globally.
It has to concentrate in improving its process efficiency to serve its customer better than its
competitors. Today’s banking products are getting complex every day and there is serious
threat of leakage of customer’s confidential information to anti social elements with advent of
technology. This is one of the major issues that banks face today.
Inspite of all these challenges, management information system has been a boon to MEGA
BANK bank. The bank has gained tremendous lead over its competitors who lagged behind in
incorporating MIS in their organisations. Today, MEGA BANK bank is one of the largest
private sector banks in Nepal, and 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.
8. REFERENCES
a) www.Mega Bank.com.np
b) http://www.ikmagazine.com/xq/asp/sid.0/articleid.F3329620-44D5-443D8AA1-73F31514B589/eTitle.Case_study_MEGA
BANK_Bank/qx/display.htm
c) http://www.sybase.ca/detail?id=1058645
d) http://www.networkmagazinenepal.com/200209/case1.shtml