AN INTERNSHIP REPORT ON

CUSTOMER SERVICE DEPARTMENT AT

SIDDHARTHA BANK LIMITED

Submitted by:
Sandeep Chaudhary
Exam Roll No: 680 / 15
TU Registration No: 7-2-0327-1214-2015

Submitted to:
Faculty of Management
Office of the Dean
Tribhuvan University
Kathmandu, Nepal

In the partial fulfillment of the requirement of

Bachelor in Business Management(BBM)

Dhangadhi, Kailali....…... 2076

 DECLARATION

I hereby declare that the internship report entitled “Siddhartha Bank Limited ”
Submitted to the Faculty of Management, Tribhuvan University, Kathmandu is an
Original piece of work under the supervision of Mrs Deepa Binadi,
Faculty member Kailali Multiple Campus, Dhangadhi, Kailali, and is submitted in
Partial fulfillment of the requirements for the award of the degree of Bachelor of Business
Management (BBM). This internship report has not been submitted to any other
University or institution for the award of any degree or diploma.

Signature

Name: Sandeep Chaudhary

Date: 2076/06/07
 ABSTRACT

This report is prepared for the partial fulfillment of the requirement for the bachelor's degree
Bachelor of Business Management (BBM), an eight semester course of Tribhuvan University.
The report is made on the basis of three months internship at Siddhartha Bank Limited (SBL).
BBM aims at building self-confidence, self-motivated, self-disciplined students by emphasizing
on quality education and other curricular activities. This report is fully based on personal
experience gained in the bank during three months of internship period. This report provides
adequate information about the banking industry of Nepal and its current situation with focus on
activities performed at SBL.
The report as a whole is divided into five chapters. First chapter include the introduction under
which topic like general background of the study, objectives, methodology and significance of
study. Further, in second chapter information about the banking industry and current situation of
financial institution in the Nepal is included. Next chapter outlines detail information of SBL,
mission and vision statement, objective, major market and customers, capital structures, Board of
Directors, Management team, organizational structure, product and service, role of SBL in
Nepalese economy, corporate social responsibility of SBL and SWOT analysis. Then in chapter
four analyses of activities done, various problems identified and problem solved are there.
Finally, last chapter outlines about the conclusion/lessons learnt.

SBL has been serving its customers since its establishment with full satisfaction and excellence
performance. It has been also successful in maintaining good relation with its customers. The
study is aimed to provide the internee with an opportunity to learn how to translate the
knowledge into wise actions through exposure to real organizational environment. It also helps
the internee to assess in terms of demand a profession, and to gain work experience and develop
relation with potential employers. The program stimulated creative and critical thinking and
helped in developing interpersonal communication skills. The internship report allows the
internee to obtain insight into career opportunities and fruitful experience through interaction,
observation and work experience in the organization.
 Acknowledgement
The writing of this report has been only possible because of the appreciated support of many
people. I am benefited immeasurably from the knowledge, suggestions and feedback of many
people. I would like to express my gratitude to them for the generosity with information and time
and to respond to so many queries.
I would also like to express my sincere gratitude to our academic supervisor Mrs. DeepaBinadi,
Lecturer, KMC, Dhangadhi, for her scholarly guidance and valuable suggestion for completing
this report.
I would like to thank Mr. Deepak Raj Pant, Program In-charge and Prof. Dr. Padam Raj Joshi,
Campus Chief for their support and guidance. I am also thankful to faculty of Management for
providing the opportunity to prepare the report which helps to enhance the knowledge of report
writing on students.
I am highly thankful to our respected Bank Manager Mr. Anup Basnet and Operation In charge
Mr. Dharma Raj Joshi for extending their valuable time, guidance, cooperation and giving me
freedom to conduct my study in the Bank.

SANDEEP CHAUDHARY
BBM 680/15
7-2-0327-1214-2015
Kailali Multiple campus
ABBREVIATIONS

ABBS : Any Branch Banking System

SBL : Siddhartha Bank Limited

ATM : Automated Teller Machine

BAFIA : Bank and Financial Institute Act

BBM : Bachelor’s in Business Management

BOD : Board of Directors

CEO : Chief Executive Officer

CSD : Customer Service Department

FOM : Faculty of Management

HR : Human Resource

KYC : Know Your Customer

MBA : Master in Business Administration

MICR : Magnetic Ink Character Recognition

NBL : Nepal bank Limited

NRB : Nepal Rastra Bank

RBBL : RastriyaBanijya Bank Limited

SMS : Short Messaging System

SWIFT : Society for Worldwide International Financial Transaction

TABLE OF CONTENTS

Contents Page no
Title Page …………………………………………………………… i
Declaration…………………………………………………………... ii
Abstract …………………………………………………………… iii
Banking Certificate ………………………………………………….. iv
Viva-voce Sheet …………………………………………………….. v
Acknowledgment …………………………………………………… vi
Abbreviation ……………………………………………………… vii
Table of Contents……………………………………………………. viii
List of Table …………………………………………………….. ix
List of figure ……………………………………………………... x
CHAPTER ONE:INTRODUCTION………………………............................ 1-4
Background ………………………………………………… 1
Objectives of the Study ………………………………………………… 2
Methodology …………………………………………………. 2
1.1.1 OrganizationSelection …………………………………………………. 3
1.1.2 Placement …………………………………………………. 3
1.1.3 Duration of Internship ……………………………………..………….. 3
1.1.4 Activities Performed in Organization ……………………………………………4
CHAPTER TWO: BRIEF INTRODUCTION OF BANKING INDUSTRY………. 5-12
2.1 Concept of Bank …………………………………………………. 5
2.2 History of origin of Bank …………………………………………………. 6
2.3 Emergence of Banking in Nepal …………………………………………………. 7
2.4 Commercial Banks …………………………………………………. 8
2.5 Present scenario of Commercial Bank in Nepal ……………………………………… 9

CHAPTER THREE:BRIEF INTRODUCTION OF THE BANK…………………….13-34

3.1.1 Corporate vision ……………………………………………………….. 13
3.1.2 Corporate mission ………………………………………………………. 14
3.1.3 Corporate objectives ……………………………………………………….. 14
3.1.4 Corporate structure ……………………………………………………….. 14
3.1.5 Ownership structure ……………………………………………………….. 16
3.2 Organizational structure ………………………………………………………... 16
3.2.1 Board of Directors ………………………………………………………. 18
3.2.2 Management Team ………………………………………………………. 18
3.2.3 Branch Network ……………………………………………………… 18
3.3 Products of SBL ………………………………………………………. 19
3.3.1 Personal Banking …………………………………………………….. 19
3.3.2 Corporate Banking …………………………………………………… 28
3.3.3 Consumers Loan …………………………………………………….. 30
3.4 Service of SBL …………………………………………………….. 32
CHAPTER FOUR: ANALYSIS OFACTIVITIES DONE/Problem Solved...………. 35 -44
4.1 Introduction to Customer Service Department …………………………………… 35
4.1.1 Roles and Responsibilities …………………………………… 35
4.1.2 Challenges …………………………………… 38
4.1.3 Problem solved …………………………………… 38
4.2 Introduction to Remittance Department …………………………………… 39
4.2.1 Types of Remittance …………………………………… 40
4.2.2 Remittance process ……………………………………. 40
4.2.3 Remittance service of SBL …………………………………… 40
4.3 Introduction to Clearing …………………………………….. 43
4.3.1 Advantages of Clearing ……………………………………. 43
4.3.2 Clearing Drawbacks …………………………………….. 43
4.3.3 Types of Clearing …………………………………...... 44

CHAPTER FIVE: CONCLUSION(LESSONLEARNT)…………………………... 45-47

5.1 Learning experience in customer service department ……………………….….. 45
5.2 Learning experience in Remittance and Clearing Department ………………….….. 46
5.3 Learning experience in Loan Department ……………………….… 47

BIBLIOGRAPHY/REFRENCES
LIST OF TABLE

Table 2.1: List of Commercial Banks in Nepal

Table 3.1.2: Capital Structure of SBL

Table 3.2.2: Board of Directors

LIST OF FIGURES
Fig 3.1: Sources of funds

Fig 3.2 Ownership Structure of SBL

Fig 3.3 Tree Structure of SBL

 CHAPTER ONE

INTRODUCTION

1.1Background of the study

The banking sector is always considered one of the most fundamental sector for the economy
to be able to function. In this economic era, in order to attain development in industrial and
commercial division, there should be a sound banking system to support not only the
economy but also the society. An internship is a work related learning experience for
individual who wish to develop hand on works experience in a certain occupational field.
Through internship one can learn how their course of study applies to the real world and
build a valuable experience that makes them stronger candidates for jobs after graduation.
The internship is eight week program designed to provide student an opportunity for
meaningful career related experience.

This report is based on general banking department of Siddhartha bank Limited. Customer
service in banking is one of the most important ways to keep customers coming back. It
includes responding to customers’ questions and complaints in a thorough and timely manner
and interacting with customers through face-to-face meetings, telephone, mail, fax and email.
A company’s customer service department makes a significant impact on the organization.
This department performs regular and clerical nature of jobs and is the busiest department in
the bank. Mostly, it is the CSD which has to deal with both the old and the new customers
and their problems. For an intern to understand the banking operations, Customer Service
Department can be the starting place. Thus, internship was started from CSD for analyzing
and learning the core banking functions.

Remittance Department deals with the people and provides facilities to the remit within the
country but throughout the world. It performs the money transfer activities
fromoneplacetoanotherplacethroughthehelpofdifferentremittance.Thus,fromthe
responsibilities and job purpose and personally working in the CSD for about two month,
interns got a glimpse of how hectic and how demanding the work at this departments.

1.2Objectives of the study

Internship plays the vital role to gain the practical knowledge and to develop our corporate
skills. The objective of our study is to gain sufficient knowledge about the working system of
the organization. Various objectives are fulfilled during internship periods such as
understanding organization practice and policies, gaining conceptual and analytical
knowledge about the banking industry.

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 The main objectives putting it all together are as follows:

1. To familiarize with the realistic environment inside the institution.

2. To examine about the different products and services offered by SBL.

3. To learn how to handle customer grievances regarding the various products and services
provided by the bank.

4. To find out the current performance of bank.

5. To practically apply the theoretical knowledge in the business field and to build up the
exposure facilities.

6. To increase communication skill and internship skill by communicating with the

customer in Customer Service Department (CSD) and remittance department.

1.3Methodology

The methodology mostly used in this report is in descriptive manner where facts and findings
are prescribed in systematic way. While preparing the internship report some
datearedirectlycollectedfromstaffoftherelatedbankwhichiscalledprimarymethod whereas
some data are collected from different secondary sources like website, brochure, earlier
reports and other publication of related banks.

1.3.1 Organizations Selection

The internship program begins with the selection of suitable organization as per the major
subject of intern. The “Bank of Kathmandu” is selected for the internship as the major
subject of internee is banking. For selecting this organization curriculum vitae, citizenship
and recommendation letter from college are dropped in the various Banks. In this process
Bank of Kathmandu, Dhangadhi branch has accepted internee Application for the internship
and given the opportunity to get familiar with the bank. The bank provides a good learning
environment and supervision to the internee so that intern could learn various working
aspects and techniques of banks.

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1.3.2 Placement
The placement was made in the Bank of Kathmandu, Dhangadhi Branch. The intern was first
familiar with the bank and banking environment with the supportive and friendly
environment in organization which helped the internee to complete the internship period
through the proper guidance of staff. Placement was done under the recommendation of
college .During the two month of period intern was placed in two different department. They
are as follows:

-Customer Service Department

-Remittance Department

1.3.3 Duration of Internship

In order to attend the objective of the BBM program, the TU has placed the internship
Program in the final semester of BBM i.e. 8th semester. The internship program has a
mandatory duration of 8 weeks, the program has been designed to attend the 6 credit hours.
Therefore, to fulfill this requirement, the internship was done for two months starting from
April 28, 2019 to Jun 28, 2019. It was an adequate duration designed for a bachelors’ level
student to understand the future workplace environment. Internee got an opportunity to work
in customer service department and remittance department and the timing of the internship
was from 10.00-5:30 and onward. It was from Sunday to Friday except in days of public
holidays. This golden opportunity helped internee a lot to learn and understand the duties and
responsibilities of various departments as well as developing the managerial and
interpersonal skills.

1.3.4 Activities Performed in the Organization

In two month period of internship, internee was placed in two different department of SBL,
Dhangadhi branch where internee has to performed different activities related to customer
service department and remittance department. They are as follows:

 Dealing with the customer queries and curiosity regarding the bank services

 Opening personal and corporate account

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 Helping customer in filling up various forms like, accounting opening forms, ATM forms,
Cheque book request form etc.

 Balance checking and Signature verification

 Telephone Handling and solving the customer problems and the in grievance

 Issuing cheque, ATM card, balance certificate , statement according to the customer request

 Helping Costumer in issuing money came from remittance services

 Solving customer queries about the new information related with product and services.

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 CHAPTER- TWO
BRIEF INTRODUCTION OF THE BANKING INDUSTRY
2.1. Concept of Bank:
A bank is a financial institution licensed by a Government. Its primary activities include
borrowing and lending money. Many other financial activities were allowed over time. For
example, banks are important players in financial markets and offer financial services such as
investment funds. In some countries such as Germany, banks have historically owned major
stakes in industrial corporations while in other countries such as the United States banks are
prohibited from owning non-financial companies. In Japan, banks are usually the nexus of the
cross-shareholding entity known as Zaibatsu. In France, bank assurance is prevalent, as most
banks offer insurance services (and now real estate services) to their clients.
The bank is a financial institution, which deals with money. It allows interest on the deposits
made and charges interest on the loans granted. The different in the interest rate on lending and
deposit, interest rate spread, is the major source of income for the bank. Interest on lending is
higher than the deposits. It is an agent of its clients, which remits money, collects incomes and
pays expenses on behalf of them. It performs the wide variety of functions, which provide utility
to the individual, corporation and general public.
The bank has been defined by different people and institutions in various ways. Some of the
definitions are as follows:

According to US Law, “Any institution offering deposit to withdrawal on demands and making
loans of commercials or business nature is the bank.”

According to Crowther, “The banker’s business is to offer his own exchange, and thereby
creating money.”

Thus the bank is a financial service institution especially concentrating on credit, saving and
payments services and performing the widest range of financial functions of any business firm in
the economy. So, the bank has become the essential part of modern society, which helps in the
development of the overall condition of a country.

5
2.2. History and Origin of Bank
The word ‘Bank’ has been derived from the Italian word ‘Banco’ which means a place for
keeping, lending and exchanging money. The origin of banks can be traced back to ancient
Greece and Roman civilization where the people used to store precious metals and coins at the
safe places. In England, banking originated with the goldsmith who started to accept the deposits
from the merchants. The banking sector started as the public enterprise in 1157 AD when the
“Bank of Venice” was founded.

According to Crowther, the modern banking has three ancestors who are the merchants, the
goldsmith, and the moneylenders. The merchant banker forms the earliest stage of the evolution
of the modern banking. Merchants in those days required the remittance of money from place to
place and while trading. This practice gave rise to the origin of ‘hundi’ in those days which are
carried out today in the form of drafts, cheques, traveler’s cheques and other means of
transferring the money. In England, the original representative of the private banks was the
goldsmith. They charged fees against the safekeeping of the gold and silver. Later on the
goldsmith started the banking function in 1800 AD.

The development of the commercial banks can be traced back to the 19th century. During this
time, the banks turned their attention away from money changing business to many important
jobs that come in the wake of industrial progress. The 20th century observed the development of
various banking institutions highly specialized and sophisticated, particularly in the USA and the
UK. Today organizations like IMF, ADB etc. are influencing the modern banking. Coming
nearer, the ‘Bank of Hindustan’ was the first commercial bank of India which was established in
the year 1770 by an English Agent in Calcutta.

The modern economic system cannot function without the bank. According to the modern
concept, banking is a business that not only deals with borrowings, lending and remittance of
funds, but it is also the important instrument for fostering economic growth. Presently there are
various types of banks are established, for instance, Commercial bank, co-operative bank, and
development bank with the different purpose.

2.3. Emergence of Banking in Nepal

The banking sector is one of the oldest service industries in Nepal, which has gone through
various stages of development since the time immemorial. Through the modern banking
institution has a relatively recent origin in Nepal, some crude bank operations were in practice
even in ancient times. In the 11th century, during Malla regime there was an evidence of
professional moneylenders and bankers. It is further believed that money lending business,
particularly for financing the foreign trade with Tibet, became quite a popular reign of Mallas.
But there were inconveniences caused by lack of specific rules and regulations.

6
This led the then prime Minister Ronoddip (1877-1885) to established Tijarath in Kathmandu,
which was a government financial institution supplying credit to the people at 5% rate of interest
against the security of gold, Silver and Ornaments. Later Tijarath was replaced by the first
Commercial bank, Nepal Bank limited, during the time of JuddhaShamsher which solved most
of the problems related to trade and commerce faced during the period.

His Majesty King Tribhuvan inaugurated Nepal Bank Limited on Kartik 30, 1994 B. S. This
marked the beginning of an era of formal banking in Nepal. Until then all monetary transactions
were carried out by private dealers and trading center.

Nepal has many governments owned as well as private banking ventures. The highest authority
on the pyramid is The Nepal Rastra Bank. This is the central bank of Nepal that decides and
makes various guidelines for the banking sector of the country. The bank with the largest
network in Nepal is The Nepal Bank Ltd. It is closely followed by RastriyaBanijya Bank.
Currently, the banking system of Nepal functions under the overall supervision and guidelines of
Nepal Rastra bank, which is the central bank in the country. The bank was established in 1956
B.S. under the Nepal Rastra Bank Act 1955. The new Nepal Rastra Bank Act was brought out in
2002 B.S. by replacing the erstwhile Act of 1955. The new Act has provided operational
autonomy and independence to the Bank.

To reflect this dynamic environment, the functions and objectives of the central Bank have been
recast by the new NRB Act of 2002, the preamble of which lays down the primary functions of
the Bank as:

 To formulate necessary monetary and foreign exchange policies to maintain the stability
in price and consolidate the balance of payments for sustainable development of the
economy of Nepal.
 To develop a secure, healthy and efficient system of payments;
 To make appropriate supervision of the banking and financial system in order to maintain
its stability and foster its healthy development;
 To further enhance the public confidence in Nepal's entire banking and financial system.

2.4. Commercial Bank

A commercial Banks means the bank which deals in exchanging currency, accepting the deposit,
giving loans and doing commercial transactions The concept of bank evolved from the concept
of commerce and bank as the financial institution, which deals in accepting deposits of persons
and institutions and in giving loans against securities. Commercial bank supplies the financial
needs of modern business by various means. Commercial banks offer a wide range of corporate
financial services that address the specific needs of private enterprise. They provide the deposit,
loan, and trading facilities but will not service investment activities in financial markets.

7
Commercial banks play a number of roles in the financial stability and cash flow of countries
private sector. They process payments through a variety of means including telegraphic transfer,
internet banking, and electronic funds transfers. Commercial banks issue bank checks and drafts,
as well as accept money on term deposits. Commercial banks provide a number of import
financial and trading documents such as letters of credit, performance bonds, standby letters of
credit, security underwriting commitments and various other types of balance sheet guarantees.
They also take responsibility for safeguarding such documents and other valuables by providing
safe deposit boxes.

In the previous year’s banks were viewed as the acceptor of deposits only but this concept has
now changed, the modern commercial banks have now been performing for the overall
development of trade, commerce, industry, agricultural including priority and deprived sector.
The growing banking needs, habits of the people and competitive environment has made the
banking sector challenging. The major activities of commercial banks are as follows:

i) Accepting Deposits
The major important functions of commercial banks are to accept deposits from customers.
Commercial Banks accept deposits from individuals, Partnership firms and colorations and from
center government and local governments. The various types of deposits accepted by
Commercial banks are as follows:

 Current or Demand deposit

 Time deposits
 Saving deposits

The amount deposited in the bank for fixed period is known as fixed time deposits. The amount
deposited under their account cannot be withdrawn before maturity of the time period. The
deposits in this account pay higher interest in comparison to other accounts under savings.
Similarly in the Current account, customers can draw money times in a day according to their
necessities in which the banks does not pay any interest to the amount deposited under this
account.

ii) Providing Loans

The second important function of a bank is to provide different types of loans. It provides loans
in the field of trade, Commerce, and industry and even to agriculture sectors. The principal
business of commercial banks is to make loans to qualified borrowers. Bank loans may be
classified as loans and advances, Overdraft, cash credit and discounting of bills and so on.

8
iii) Investments
Commercial banks also extend credit when they purchase securities. A very high percentage of
these securities represent obligations of governmental units. These are the primary functions of
the commercial banks and the secondary functions of commercial bank are as follows:
 Safety of valuable goods.
 Issue credit instrument.
 Dealing of foreign exchange.
 Economic information and statistics.
 Work as referee.
 Issue of guarantee.
 Government transaction

2.5. Present scenario of Commercial Bank in Nepal

In the year 1934 AD, the establishment of Nepal Bank Ltd. with the Imperial Bank of India came
into existence under “Nepal Bank Act, 1937” as the first commercial bank of Nepal,
inaugurated by His Majesty King Tribhuvan on November 1937. Rastriya Banijya Bank, the
second commercial bank was established in the year 1965.

With the opening of NABIL Bank in 1985 the door of opening commercial bank was opened to
the private sector. Then whole lot of commercial banks was opened in Nepal. There are
altogether 28 commercial banks opened till now. List of commercial banks are listed as:

Table 2.1 List of Commercial Banks in Nepal

S.N. Name of the Bank Operation Date Head Office

(A.D.)

1 Nepal Bank Limited 1937/11/15 Kathmandu

2 Rastriya Banijya Bank 1966/01/23 Kathmandu

3 Agriculture Development Bank Ltd. 1968/01/02 Kathmandu

4 NABIL Bank Limited 1984/07/16 Kathmandu

5 Nepal Investment Bank Limited 1986/02/27 Kathmandu

6 Standard Chartered Bank Nepal Limited. 1987/01/30 Kathmandu

7 Himalayan Bank Limited 1993/01/18 Kathmandu

8 Nepal SBI Bank Limited 1993/07/07 Kathmandu

9
9 Nepal Bangladesh Bank Limited 05/06/1994 Kathmandu

10 Everest Bank Limited 1994/10/18 Kathmandu

11 Bank of Kathmandu Limited 1995/03/12 Kathmandu

12 Nepal Credit and Commerce Bank Ltd. 1996/10/14 Rupendehi

13 Machhapuchhre Bank Limited 2000/10/03 Pokhara

14 Kumari Bank Limited 2001/04/03 Kathmandu

15 Laxmi Bank Limited 2002/04/03 Birgunj, Parsa

16 Siddhartha Bank Limited 2002/12/24 Kathmandu

17 Global Bank Ltd. 2007/01/02 Birgunj, Parsa

18 Citizens Bank International Ltd. 2007/6/21 Kathmandu

19 Prime Commercial Bank Ltd 2007/9/24 Kathmandu

20 Sunrise Bank Ltd. 2007/10/12 Kathmandu

21 NIC Asia Bank Ltd. 2016/06/30 Kathmandu

22 NMB Bank Ltd. 1996/11/26 Babarmahal

23 Janata Bank Nepal Ltd 2010/04/28 Kathmandu

24 Mega Bank Nepal Limited 2010/07/23 Kantipath,Ktm

25 Civil Bank Ltd 2010/11/26 Kamaladi

26 Century Bank Ltd 2011/03/10 Putalisadak

27 Sanima Bank limited 2012/02/28 Kathmandu

28 Parbhu Bank Ltd 2016/02/12 Kathmandu

(Source: www.nrb.org.np)

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 CHAPTER- THREE
BRIEF INTRODUCTION OF THE BANK
3.1. Profile of Siddhartha Bank:
Siddhartha Bank is one of the rising commercial bank of Nepal. It was established in 2002. It is a
class “A” institution licensed by NRB in the Nepalese economy. It was founded by reputed
entrepreneurs and has strong and sizeable capital base. It is powered by professional and
experienced management team. The bank is completely geared up for all. It is not just an
ordinary bank, it is the bank that envisage in taking care of everyone’s aspiration. It understands
that banking is no longer a number game. Success for them is not just the profit margin; they
understand that we are looking for a financial friend. A friend, who understands, evaluates and
invests our dreams and aspirations.

The Bank is promoted by a group of highly reputed Nepalese dignitaries having wide
commercial experience with the objective of providing excellence and professional banking
services. The promoters and public are holding 51% and 49% stake of the bank respectively.
With liberalization in financial markets and integration of domestic market with external
markets; bank operations have become more complex and dynamic. SBL established in order to
maintain its consistency, coping with the change and accepting the challenges coming from the
environment. Today it has 166 branches, 168 ATM network and 99 Branchless Banking
established at various location all over Nepal in the relatively short period of commencing
business. SBL has been following the philosophy “Our Business is to understand your business"
and with the various values as:
 Customer Focus
 Innovation
 Performance Driven
 Professionalism

3.1.1. Corporate Vision

Siddhartha Bank runs with a vision to be financially sound, operationally efficient and keep
abreast with technological developments. The Bank firmly believes in customer focus as its core
value;
shareholder prosperity is a prime priority; employee growth is a commitment and economic
welfare is a sincere concern.

3.1.2. Corporate Mission

The Bank desires to be one of the leading banks of the industry by fulfilling the interest of the
stakeholders and also aims to provide total customer satisfaction by way of offering innovative

11
products and by developing and retaining highly motivated and committed staff. It directs all its
efforts to move ahead with increased profits. The following mission statement is a guide to meet
the Vision of the Bank:

 Be one of the leading banks of the industry in terms of profitability, productivity and
innovation.
 Aim at total customer satisfaction by rendering efficient and diversified financial services
through improved technology.
 Build a highly motivated and committed team of staff by nurturing a good work culture
to achieve superior individual performances aiming to enhance organizational
effectiveness.
 Be the place of pride to its entire stakeholder.

3.1.3. Corporate Objectives

Siddhartha Bank Limited has the following objectives-
 Reclaim leadership within the national financial community.
 Provide competitively and customer oriented banking services to all customers through
competent and professional staff.
 Assist the government in its operation.
 Help people to activate economic through loan circulation.
 Assist the industrial growth.
3.1.4. Capital Structure
The authorized capital, issued capital and paid up capital of SBL are listed below:
Table 3.1.2 Capital Structure of SBL

Authorized capital 7,780,000,000

Issued Capital 682,600,000
Paid Up Capital 8,470,000,000

12
Figure 3.1 Sources of Funds

3.1.5 Ownership Structure

The bank has paid up capital of Rs.1.57 Billion and the structure is given below:

13
Figure 3.2: Ownership Structure of SBL

3.2. Organizational Structure

Organization needs to be divided into various departments, branch, and sub- branches for
carrying out bank’s day-to-day operations in a smooth and efficient way. Every organization has
different staffs in the different section to perform tasks systematically way in order to get the
better result. A sound organization is essential for successful operation of an institution whether
economic or social. So, a planned and effective organization structure is required to a business
institution for systematic function, delegation authority and degree of responsibility for each
function.

14
Figure 3.3: Tree Structure of SBL

15
The board of directors and the management team of the SBL are as follows:

3.2.1.Board of Directors
The board directors of SBL are listed as follows:

Table 3.2.2: Board of Directors

S.No NAME DESIGNATION

1 Manok Kumar Kedia Chairman
2 Narndra Kumar Agrawal Director
3 Mahesh Prasad Pokharel Director
4 Birendra Kumar shah Director
5 Rajesh KumarKedia Director
6 Dinesh Shankar Palikhe Director
7 HemantGyawali Director
8 Manoj Kumar Kedia Director
9 Bishwonath Shah Director

3.2.2. Management Team

SBL consists of the management team of all the managers and the department heads. These
teams are the ones who supervise their subordinates and guide them to accomplish their work
efficiently. The management team of SBL is shown in annex-3.

3.2.3. Branch Network

The Corporate office of SBL is located at Hattisar, Kathmandu, is also the head office of the
bank providing all the major functions including rules and policy making, issuance of securities,
treasury operations, payments, and settlement, and even international banking transactions are
done through this branch. Currently, SBL has extended its 41 branches all over the country
providing major operational functions and they are listed in annex-2.

3.3. Products of SBL

The wide variety of products and services are being offered by SBL in the current market for its
wide spread customers. They can be as follows:

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3.3.1. Personal Banking
There are different varieties of deposits. They are as follows:

a) Current Deposit

Open current account with us and deposit and withdraw money easily through cheque/ Debit
Card. This account is meant to individuals and institutions wishing to ensure safety of funds with
the option of anytime withdrawal.

b) Call Deposit

Through this account, your excess funds can provide you return. If you have a relatively stable
fund, then current call account at Siddhartha Bank is the right account for you- it not only
safeguards your funds but also provides you interest. Deposit your idle funds in your call account
and earn daily interest on your deposit. Interest rate in this account depends on volume and
stability of deposit and overall market conditions.

c) Saving Deposit
A range of savings deposit accounts that can be opened with SBL to suit our requirements as:

1) Siddhartha Bachat
This is the mother product of the Bank's other savings deposit products. This offers easiest way
of banking. The objective of this product is to allow valued customers maintain savings account
and carry out transactions with utmost ease.

Features:

• Account can be opened with zero balance

• It attracts interest rate of 7% p.a., on daily balance basis.
• Cheque book facility at Rs 500/-
• Customers can enjoy banking through various outlets spread across Nepal at nominal
charges
• The Bank allows free withdrawal facility from its widely spread ATM network with
ATMs installed at prime locations across the nation

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2) Remit Account

Open account with us prior going abroad; we provide you with attractive facility. Your family
members who receive remittance can also open remit account.

Features:
• Account can be opened with zero balance.
• Interest on daily balance: 7% per annum for NPR account and interest on USD shall be
determined as per market condition.

Other Benefit:
• No restrictions for withdrawals and deposits
• Free Internet Banking and cheque book Facility
• Free Account Statement on request
• Free Any Branch Banking Services (ABBS)
• 365 days banking
• Evening counter facility at selective branches
• Preference for locker facility

3) Siddhartha BalBachat

You don’t need to worry about your children’s’ future plan. Simply you can open BalBachat
account at Siddhartha Bank and be relaxed for your children's future plans. You can plan your
impending expenses related to your children that has been designed to suit your child’s future
plans.

Opening BalBachat account in your child’s name would inculcate a saving habit in an early age
and help in making them understand value for money.

Features:

• Account to be opened in the name of a minor, i.e. children up to 16 years old

• Parents/Guardians can operate the Account
• Account can be opened with zero balance.
• 7 % per annum interest on daily balance
• No restrictions for withdrawals and deposits

Other Benefit:
• Internet Banking Facility
• Free Account Statement on request

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 • Any Branch Banking Services (ABBS)
• Special locker facility

4) Siddhartha NariBachat

This product is especially designed for women; this account boasts of a relatively higher interest
rate and is bundled with an insurance scheme.

Features:
• Account can be opened at zero balance.
• 7 % per annum interest on daily balance
• Accidental death insurance coverage up to four times the account balance of the customer
(minimum balance of the month of accidental death) or maximum amount of Rs. 500,000,
whichever is lower

Other Benefits:
• No restrictions for withdrawals and deposits
• Internet Banking Facility
• Free Account Statement on request
• Any Branch Banking Services (ABBS)
• 365 days banking
• Evening counter facility at selective branches
• Preference for locker facility

5) Siddhartha Jestha Nagarik Bachat

At Siddhartha Bank, we are thinking of your retirement plans and if you are 50 or above 50 years
old; our Jestha Nagarik Bachat may just be what you are looking for. This product is meant for
50-year olds & above and has been designed with special privileges.

Features:
• Account can be opened at zero balance
• 7 % per annum interest on daily balance
• No restrictions for withdrawals and deposits

Other Benefit:
• Internet Banking Facility
• Free Account Statement on request
• Any Branch Banking Services (ABBS)
• 365 days banking

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 • Evening counter facility at selective branches
• Preference for locker facility

6) Siddhartha Super Salary Account

Siddhartha Bank's Super Salary account is a power-packed offering that befits your
Professional organization. The Salary Program brings immense efficiencies to your
organization by automating the entire salary processing cycle through flexible models,
assured and faster reconciliation, dedicated corporate help-desk and lots more. Salary
proposition for your employees integrated with your ERP/Payroll system facilitating
payment.

Features & Benefits:

• Account can be opened with zero balance

• 7% per annum interest on daily balance
• Cheque book issuance at minimum balance of Rs 2,500
• No restrictions for withdrawals and deposits
• Internet Banking Facility
• Free Account Statement on request
• Any Branch Banking Services (ABBS)
• 365 days banking
• Evening counter facility at selective branches
• Preference for locker facility

7) Siddhartha eSewaBachatKhata

Siddhartha eSewaBachatKhata is a customized saving deposit account for the customers of

eSewa, which is an online payment gateway developed by eSewaFonepay Pvt. Ltd. This saving
account can be opened with zero balance and offers various attractive banking facilities.
Customers can easily open this account by visiting any of the authorized eSewa outlets at their
locality.

Features:

 Account can be opened with zero balance

 Interest rate of 7% p.a., on daily balance basis
 Free cheque book facility
 Electronic banking package which includes Siddhartha Visa Debit Card, Siddhartha SMS
Alert, Siddhartha Bank Smart and iConnect. The fees for Siddhartha Visa Debit Card and
Siddhartha SMS Alert shall be waived for first year; fees of Rs. 250 will be collected for

20
Siddhartha Bank Smart. Standard fees for Siddhartha Visa Debit Card, Siddhartha SMS Alert,
Siddhartha Bank Smart will be charged from next year onwards. Customers can also open
Siddhartha Dmat Account by depositing additional fees of Rs. 75.

8) Siddhartha Platinum Bachat

Siddhartha Platinum BachatKhata is a saving deposit account that can be opened with zero
minimum balance. It offers attractive interest rate on daily balance of the deposit account and has
quarterly interest posting frequency. Customers can easily open this account by visiting any of
the nearest branches of Siddhartha Bank.

Siddhartha Platinum Bachat accountholders shall enjoy following facilities of the Bank "Free of
Cost":

 Attractive interest rate of 7% p.a.

 Uno Credit Card
 Cheque Book Issuance
 DMAT Account Opening
 ASBA Facility
 Internet Banking Facility
 Any Branch Banking Service (ABBS)
 Siddhartha Capital Smart Application for easy monitoring of the share portfolio

Other Facilities:

 VISA Debit Card Facility

 Siddhartha Bank Smart Facility
 SMS Alert Facility

Eligibility:

 Nepalese and foreign nationals with valid identification documents as defined by Nepal
Rastra Bank
 Non-profit organizations that fulfill the eligibility criteria to open savings account as
defined by NRB.

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9) Siddhartha SwornimBachat

Siddhartha SwornimBachatKhata is a saving deposit account that offers attractive interest rate on
daily balance of the deposit account and has quarterly interest posting frequency. Customers can
easily open this account by visiting any of the nearest branches of Siddhartha Bank.

 Cheque Book Issuance

 DMAT Account Opening
 ASBA Facility
 Siddhartha Capital Smart Application for easy monitoring of the share portfolio
 Internet Banking Facility
 Any Branch Banking Service (ABBS)
 Interest rate of 7% pa on daily balance

Eligibility:

 Nepalese and foreign nationals with valid identification documents as defined by Nepal
Rastra Bank
 Non-profit organizations that fulfill the eligibility criteria to open savings account as
defined by NRB.

10) Siddhartha Mero Share Khata

Siddhartha MERO SHARE Khata is a saving deposit account that can be opened at zero balance.
Customers can easily open this account by visiting any of the nearest branches of Siddhartha
Bank or Siddhartha Capital Limited located at Narayan Chour, Naxal, and Kathmandu.

Product Features

 Accidental death insurance coverage up to four times the account balance of the customer
(minimum balance of the month of accidental death) or maximum amount of Rs.
500,000, whichever is lower
 Free DMAT account opening
 Free Online ASBA application Facility
 Waiver in the AMC charges till date for existing DMAT account holders and Free AMC
for first year for new account holders
 Free Cheque Book Issuance
 Free annual fee of MERO SHARE application (Online application of CDS and Clearing
Limited) for first year
 Interest Rate of 7% per annum on daily balance with quarterly interest posting frequency

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  Free internet banking facility
 Free ABBS
 VISA Debit Card facility
 Siddhartha Bank Smart facility
 SMS alert facility

Eligibility:

 Individuals (Nepalese and Non-Residential Nepalese)

d) Fixed Deposit

At Siddhartha Bank, we understand your need for good returns and assurance of security. Our
fixed deposits with varying tenures attract competitive interest rates. The Bank provides the
flexibility of availing of loan against fixed deposits to assist you with liquidity requirement that
may occur before the maturity of the fixed deposits. Interest on deposits is payable quarterly,
semi-annually (i.e. half-yearly) and annually. Please refer to the interest rate page for interest
rates we offer on fixed deposits.

Siddhartha Premium MuddatiKhata

Siddhartha Premium MuddatiKhata is a two years fixed deposit account for both individual and
organizational customers falling under the category of non-institutional customers as defined by
Nepal Rastra Bank. It offers an attractive interest rate of 7 % per annum, thus, providing
comparatively higher returns to the customers on their deposits.

Eligibility:

Individuals: Any Nepalese citizen with valid identification document

Organizations: Organizations falling under the category of non-institutional customers as

defined by Nepal Rastra Bank

Features:

 Minimum balance: Rs. 100,000

 Tenure: 2-5 years
 8.5 % interest rate per annum
 Interest posting on quarterly basis; interest calculation on daily balance.

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Structured Fixed Deposit

Structured Fixed Deposit is a fixed deposit account offered by the Bank with maturity period of 1
year and above and offers attractive returns to the customers for their deposits along with several
attractive features.

Features:

 Minimum balance: Rs.500,000

 Tenure: 3 months - 6 months
 10.5 % interest rate per annum
 Interest posting on quarterly basis; interest calculation on daily balance

Eligibility:

Individuals: Any Nepalese citizen with valid identification document.

Organizations: Organizations accept those falling under the category of institutional

customers as defined by Nepal Rastra Bank.

3.3.2. Corporate Banking

i) Business loan

a) Working Capital Loan

This facility finances the working capital requirements of trading, manufacturing and service
units/industries. Working capital loans are granted in the form of Overdraft or Demand Loan or
Time Loan facility. The working capital loan will help to build up inventories and receivables at
a level required to run the business smoothly.

b) Term Loan

This facility is provided in the form of medium/ long-term loan for the purchase of capital goods
and the creation of fixed assets in the form of purchase of land and construction of buildings. The
duration of the loan is assessed by analysis of cash flow statement and balance sheet.

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c) Import Loan

This facility is made suitable in financing international and local trade transactions carried out
through Letters of Credit. For retirement of L/C bills, import loan is granted in the form of Trust
Receipt Loan or Time Loan, which needs to be settled within a specified period.

d) Bills Discounted under usance L/C

The usance bills under import letters of credit opened by us may be discounted in conformity
with Nepal Rastra Bank regulations.

e) Export Loan

Bank provides export finance by way of pre-shipment and / or post-shipment loan, the pre-
shipment loan is granted up to 80% of the relative export LC. This facility can be availed in
foreign currency as well as local currency and loan are required to be settled by negotiation of
documentary bills under export LC or from the proceeds of documentary collections or post-
shipment loan.

f) Consortium Loan

When two or more financial institutions decide to extend credit facilities to a borrower jointly,
the arrangement is known as consortium financing. If the funding requirement of the project is
relatively larger, SBL arranges financing for such project through a consortium of the banks and
/ or financial institutions.

g) Bills Purchase

This facility is extended by discounting of cheques/drafts.

ii) Trade Finance

 Advance Payment
 Documentary Collection
 Import L/C
 Export L/C

iii) Bank Guarantee

 Forward Contract

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  Bid Bond
 Performance Bond
 Shipping Indemnity Bond
 Advance Payment Guarantee

3.3.3. Consumers Loan

The personal and retail banking of SBL are as follows:

i) Siddhartha Home Loan

SBL provides a loan for the dreamers to have a home.

Special Features:

• To purchase land or land and building for residential or commercial use

• To renovate/extend existing building
• To pay off the personal debts incurred while acquiring land or constructing/purchasing a
building
• To construct a building on existing land
• To purchase apartment, residential building from housing colony
• Maximum up to 60% of the value of land or land and building
• Maximum up to 20 years including moratorium period
• Highly competitive interest rate and service charge
• Repayment on EMI or EQI Installment with appropriate moratorium period

ii) Siddhartha Personal Loan

Siddhartha Banks wide range of personal banking products and convenient services gives the
tools needed to manage our finances, grow our investments and borrow for important purchases.

Special Features:

• To meet the fund requirements for the business set up/business expansion or meet the
other personal fund requirements.
• Type of facilities: Overdraft, Time Loan, Demand Loan, and Term Loan
• Maximum up to 60% of the value of land or land and building
• Maximum up to 20 years for Term Loan including moratorium period
• Competitive interest rates and service charge

iii) Siddhartha Auto Loan / Vehicle Loan

26
Siddhartha Bank makes it easy to finance or refinance our vehicle with competitive interest rates
and flexible repayment options; we can tailor our loan to meet our individual needs.

Special Features:

 To purchase automobile for private or commercial use

 Maximum up to 80% of the invoice value for new vehicle
 Maximum up to 70% of the authorized value for used vehicle
 Maximum up to 7 years
 Competitive interest rate and service charge
 Repayment on Equated Monthly Installment iv) Siddhartha Education Loan

Education expense is an investment for our bright future. Siddhartha Bank makes it easy to climb
the ladder of academic qualifications by providing the variety of financial supports for college
expenses.

Special Features:

 To finance education expenses to pursue higher studies (Graduation, Post-Graduation,

and Specialization etc.)
 Type of facilities: Overdraft, Time Loan, Demand Loan, and Term Loan.
 Maximum up to 80% of the total expenses to be incurred for proposed study.
 To be backed by mortgage of land or land and building with at least 40% margin.
 Maximum up to 10 years in case of Term Loan including moratorium period.
 Competitive interest rate and service charge.

v) Loan against Fixed Deposit Receipt

SBL even provides loan against our fixed deposit in SBL as well as against fixed deposit in other
recognized financial institutions.

3.4. Services of SBL

a) Visa Debit-cum-ATM Card

With Siddhartha Bank Savings Account, we will get a Visa Debit Card at nominal annual
charges that we can use to withdraw cash from any VISA network ATM in Nepal and India and
in all the ATMs inside Nepal. We may also use your Visa Debit Card to directly make purchases
through a Visa POS (Point of Sale) machine available at most stores. SBL issues VISA ATM
card at Rs. 250 annual fees and even credit card to its customers to facilitate withdrawing of their
fund from account across the numerous ATM terminals across the nation without visiting the
bank.

27
b) Internet Banking

Banking could not have been more convenient. Just log in with your user ID and password and
make banking a hassle-free routine; it is just there at the click of a mouse.

c) Mobile Banking

Transferring funds or getting to know your balance is as easy as sending an SMS.

d) SMS Alerts

What's more fun than tracking your debit and credit transactions in your account through an SMS
at your mobile? You know what's going on in your account.

e) Standing Instructions

Siddhartha Bank accepts and supports Standing Instructions. You don't have to worry about the
chore of carrying out routine transactions. Just set up a Standing Instruction and leave it to us to
manage.

f) Nomination Facility

You may nominate a person as beneficiary to your account proceeds.

g) Locker Facility

Locker provides maximum security and safe-keeping of valuables, goods and documents of the
customers.

h) ABBS Service

SBL gives the flexibility of accessing our account from any of our branches across Nepal. It is
just like visiting your own branch every time.

i) EveningCounter
SBL even provides evening counter facilities to its customer to get access with limited SBL
facilities through its some specified branch offices.

j) Holiday Banking

28
SBL also provides holiday banking facilities during public holidays to its customers from its
some specified branch offices.

k) 365 Days Banking

SBL also provides 365 days banking facilities to its customers through its branches and ATM
terminals.

l) Branchless Banking Service

SBL has currently launched Branch Less Banking services to those customers in remote areas
where there lack branches and ATM terminals of the bank with the help of its agents and Swap
Machines.

m) Siddhartha Club

Just by paying Rs 1000 per year, we can be a member of Siddhartha Club and can enjoy free
banking for a bundle of other costly services. It also provides an incentive of Rs 1000, Free NTC
/ NCell Prepaid recharge card worth Rs. 200for every 5 new customers, we bring and other much
more facilities.

Including all these products and services Siddhartha Bank even has various customized products
and services that harmonize with the different banking requirements of its valued customers.

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 CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE/PROBLEM SOLVED:

4.1. Introduction to Customer Service Department

Customer Service Department (CSD) is the department which initial test the deals with the
customer directly. Being the place of the first contact for most of the customers of the bank, it is
one of the most important departments of the bank. Customer service is the process by which an
organization delivers its products and services to the customers. This department interacts
directly with the customers and the people coming for inquiries about the bank and its financial
products. This is the only department that acts as an interface between the customers and other
departments of the bank.

4.1.1. Roles and Responsibilities

The roles and responsibilities of CSD are:

a) Providing general information

CSD provides general information related to various services offered by the bank such as
account opening, debit card, interest rates offered by the bank, and all the other queries made by
the customers.

b) Opening Account
I assisted many customer individual as well as firm in the process of opening the different kinds
of accounts. I was mainly focused on 2 types of account one is the current account mainly
opened by the firms for the business transaction with zero percent interest and the second one is
the saving account which are mainly opened by the individuals.

i) Current account
The current account can be opened in the name of the firm as well in the name of the individual.
The procedure to open the current account is somewhat different from the procedure for saving
the account. This account needs various documents regarding the existence of the firm, their
registration, and other various documents.
Documents required to open a current account are:
 Name and address of the firm
 PAN/VAT certificate, minute, stamp of the firm
 Required documents like the registration, clearance of tax, the nature of the business etc.

30
  Two photos of the account opener

ii) Saving Account

The saving accounts are opened by the individual. It’s easy to open the saving account in
comparison to the current account.

Documents required for the saving account:

 Copy of the citizenship
 Two photos
 Voter Identity Card
Procedure of account opening is given below:
Whether it is the current account or saving account, it has followed certain procedure. The
procedures of both the accounts are moreover similar.
 Filing up of account opening form with the specimen/signature card.
 Verification of the form by checking whether each attribute required is properly filled or
not.
 In the case of the current account, attributes are the name of the firm or individual,
PAN/VAT no, minute, stamp of the firm, etc.
 In the case of saving the account, attributes are the name of the individual, citizenship no
or license no etc.
 Verification of the form and the documents by the senior authority.
 Entry of the information into the system.
 Generation of the account number by the system.
 Communication of account number to the customers.
 Filling deposit slip of balance required
c) Making and Issuing Check Book
Customer request for the new check with an acquisition slip of checkbook (for the old customer)
or deposit voucher (for new customer) is accepted. The slip contains the name of the account
holder, no of check required and account holder signature. The signature of the customer in the
slip is verified and finally the check moves for the process of printing. After printing and binding
the check, it goes to senior authority for the signature after this all the check is finally handed
over to the customer after that the customer sign on both the slip and register is taken to make a
proof that the customer had received the check and cannot claim it again.
In the case of lost checkbooks, the customers should submit the application letter, the account is
freeze for the previous check and a new check book is prepared and a certain amount is charged
from the customer account for the same.

31
d) Issuing Bank Statement
As the bank statement is a very confidential which contains detail information about the
transaction of the account holder it should not convey to the wrong person so to make sure that
it is in the right hand I asked for the identification of the person. As far as possible it should be
provided to the respective account holder if account holder could not come and had sent a
representative I need to ask for the proof with an application letter or sometimes it’s enough to
have the signature of the account holder.

e) Checking balance
Many people come for the balance inquiry in the bank. Through CSD, account holders are
provided the information regarding their balances as well as the date of deposit and withdrawal
The NBL software facilitates to show the balance of the respective branch only. This all
information is provided to the account holder only but if in case the account holder is unable to
come then his representative can know the balance by bringing the application written by the
account holder with his/her signature if signature matches then only the information regarding
balance will be provided.

f) Issuing Bank Certificate

Bank certificate is provided to an individual or a company if the person is going abroad. The
transactions and balance of the account holder are certified by the bank for the concerned
embassy. The balance certificate is the proof that the person has the certain balance on the
account of NBL. In the balance certificate, the Nepalese currency which is available in the bank
account of the respective customer is converted to the currency where the customer is going.
For eg: if the customer is going to Netherland then the Nepalese currency will be converted to
the Euro currency and this conversion is done according to the rate of NRB.

g) Accepting the request of Debit card and issuing

For a debit card, the holder must fill a form with different information like name address,
account no, name in the card which may be different from holder own name and a photo.
Generally the card is issued after one week. While issuing the card, the customer identification is
taken and matched with the account holder if it matches then only the card is issued.The card is
issued after the signature in the register. The request to renew the card of the old customer should
also be accepted. For renewal of the card; the holder must fill the form as well.

4.1.2. Challenges
During the working period in this department, I faced many challenges but the biggest challenge
was to deal with the customer having different characteristics. In a day, I have to deal with many
customers and had to respond their each and every query. Besides the customers in this
department I have to perform various tasks in a single day like opening the new account, making

32
balance certificate, issuing checks, providing balance statement, handling calls soon. I could not
devote the time in solo activities so there were many chance of doing mistakes.

4.1.3. Problem Solved

The working environment is always full of challenges, but these challenges have to be solved to
make the environment a better one. But solving the problem or challenges is not an easy task but
I had some of my effort to solve those challenges faced in CSD like dealing differently with the
customer according to their nature and solving their problems, like the problem related to
converting the old account number to the new one, search for the account number if the holder
lost the account no, some holder may forget their signature for this the customer's face is
identified by looking to the database and if it matches the customer are asked to change the
signature, some customer are not educated I have solved their problems by filling the
information in the form and many more.

4.2 Introduction to Remittance Department

A “remittance transfer” refers to the transfer of money from an individual, usually a person who
has emigrated from his/her city or country of origin, to another individual, usually a relative who
remains at home. Remittance transfers are typically person-to-person payments and of low
monetary value. There are two basic categories of remittance transfers:

Domestic Remittance:
Domestic remittance transfers occur when an individual transfers funds from one location to
another within the same country.

International Remittance:
In contrast, an international remittance transfer involves an immigrant in a new country sending
funds to his country of origin, or to individuals (usually family) in a third country. SBL handles
Siddhartha Remit, Reliable Remit, Western Union Money Transfer.

Remittance transfers help its customers to remit money from one place to another through agents
appointed by the bank. The people working outside the country can send cash to their relatives
through this service of bank. It is a reliable service which helps to send money from one place to
another. Remittances contribute to economic growth and to the livelihoods of needy people
worldwide. Moreover, remittance transfers can also promote access to financial services for the
sender and recipient, thereby increasing financial and social inclusion.

33
4.2.1 Types of Remittance
On the basis of flow of funds, remittances can be categorized into two major types:

Inward Remittance
Inward remittance refers to the flow of money or fund towards the home country of migrant
workers from host country where the migrant are working. It is beneficial for the home country
where there is the flow of money towards its economy.

Outward Remittance
Outward remittance is that where there is the transfer of money or fund from the home country to
the host country. It is the outflow of the fund from the home country of the migrant worker to
that country where they are migrated. It is not good for any country because there is outflow of
fund from its domestic income

4.2.2. Remittance Process

Functionally, most Remittance Service Providers (RSPs) operate in similar ways. In order to
send and receive funds, RSPs must be networked. First, they must all have access points or
physical locations along the “remittance chain”. At one end of the remittance chain, the
“capturing agent” collects the funds from the sender, or remitter and, at the other end of the
chain, the “disbursing agent” disburses the funds to the receiver. These access points may be
banks, wire transfer offices, money exchanges to give but a few examples, and are the most
visible components of the network. Apart from the physical access points, most of the remittance
system remains invisible to the public. RSPs must provide a way for the capturing agent to
communicate information to the disbursing agent with regards to the transfer that is occurring.

4.2.3. Remittance Service of SBL

At Siddhartha Bank Limited, Bills and Remittance Department provides a wide range of
remittance facilities to the remitters not only within the country but also throughout the globe.
The bank takes care of the needs of the remitters to receive funds from outside and to transfer
funds anywhere in the world through its inward and outward remittance facilities safely and
efficiently at the minimum of cost. The primary function of this department is money transfer;
comprising of outflow of funds and inflow of funds.

Broadly speaking, SBL provides two types of Remittance facilities:

Inward Remittance:
Inward remittance stands for the transfer of funds from other banks or agents of the Bank. It is
the incoming fund or money which is collected by the bank on behalf of the customer and
credited in their account. We have to fill remittance documents, verify senders and receivers and
transfer amounts. It is done by verifying documents of the receiver (ID cards) and forwarding
them for payment.

34
Outward Remittance:
Outward Remittance refers to the payment of money made by the bank to other banks. The
money is transferred on the request of the customer by debiting their account or directly
receiving cash from them.
Siddhartha Bank handles the inward and outward fund transfer in any part of the globe with the
help of its worldwide network of corresponding banks. It operates under the guidelines of Nepal
Rastra Bank and provides the following remittance services to its customers through various
means:

SWIFT Transfers:
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication System,
which is a reliable communication network speeding up fund transfer and other financial
messages. SWIFT is one of the fastest and reliable modes of money transfer. The remitted
money is deposited in the bank account of the client from anywhere in the world. In order to
transfer money, the remitter must mention the necessary details of the beneficiary and the
SWIFT address of the beneficiary’s bank. The SWIFT address of the Siddhartha Bank is
‘SIDDNPKA’.

Demand Draft:
Siddhartha Bank can draw drafts on a number of its correspondent banks located all over the
world. It has draft drawing arrangement with Standard Chartered Bank which enables the Bank
to issue and accept the drafts. SBL honors bank drafts denominated in major currencies like
Indian Rupees, United States Dollar, Euro, Great Britain Pound, etc.

Manager’s Cheque
It is a cheque drawn by SBL on itself, especially used for payments made by Siddhartha Bank.
But it also can be issued by the bank as per the customer request. The beneficiary can send the
cheque on collection or through clearing or can deposit it in his or her account with SBL itself.
Suppliers accept the manager’s cheque from the party without any hesitation since it is a riskless
cheque with no chance of default as the payment is guaranteed by the bank.

Fax Transfer
Siddhartha Bank also performs its remittance transaction through fax transfer. Due to the wide
Nostro/Vostro relationship, SBL issues the drafts in most of the hard countries like USD, Euro,
Great Britain Pounds, Canadian Dollars, Australian Dollars, Danish Kroner, Singapore Dollars,
and Japanese Yen.

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Telegraphic Transfer
The term Telegraphic Transfer or Telex Transfer often abbreviated to TT, is an electronic means
of transferring funds overseas. It is the mode of fund transfer between a bank and one of its
foreign correspondents to transfer local or foreign currency by telegraph, cable or telex. SBL
provides the remittance service to its customers via TT for a fixed transfer charge while sending
money.

Mail Transfer
When there is no SWIFT transfer or draft arrangement, the remitter may opt for mail transfer. As
the name suggests, mail transfer is slow compared to other ways of fund transfer and it is
regarded as outdated technology.

4.3 Introduction to Clearing

Clearing system helps to clear the cheques drawn on local banks by the customer. Clearing is the
service facilitated by the banks in order to safeguard its customers from the hazards of carrying
cash. In the absence of this service, the customer has to carry cash whenever there is the
interbank transaction. This increases the individual’s risk of robbery and theft of the cash.
Moreover, in case the volume of transaction is huge it is highly inconvenient and unsafe for the
customer. Thus, the clearing function enables the customer to carry out the financial activities
without the risks associated with handling the cash.

The Clearing service is beneficial for the bank’s perspective as well. It helps in reducing the cash
management expenses of the bank by significantly lowering the cash requirement. It is beneficial
for both bank and the customer. Thus, it is becoming more popular day by day. It is a system
where the member banks in a specified area make settlement of the payment and receipts under
the leadership of a common clearing house.

4.3.1 Advantages of Clearing

The Bank and Government encourage the people and the institutions to make the payment
through cheques and clearing. Payment through cheques can be beneficial because it eliminates
all the risk associated with the cash dealing. Clearing is a reliable mode of payment that
safeguards the customer from the risks of robbery, theft and fraud. Moreover, the use and
requirement to hold cash by the bank becomes less due to the clearing.

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4.3.2 Clearing Drawbacks
The main drawback of the clearing process is the delay of the transaction. The cheques that are
sent for clearing can only be realized at the end of the day it is sent for clearing. Moreover, the
customers may prefer the use of cash to cheque as the cheque have the chance of dishonor.

4.3.3 Types of Clearing

Clearing is basically of two different types. They are:

Inward Clearing
Inward Clearing refers to the cheques were drawn on home bank i.e. Siddhartha Bank Limited,
that are received from other banks for clearing purpose. Inward clearing of Siddhartha Bank is
performed by central clearing department of SBL which is in Hattisar Branch.

Outward Clearing
Outward clearing refers to the cheques of other banks deposited by the customer for realization.
In order to receive the outward clearing services the customer must have an account in the bank.
The cheques received for outward clearing on SBL are sent to head office and new road branch
for ECC and manual clearing are sent to central clearing.

4.3.4 Clearing Cheques Return

Cheque return is the act of dishonoring the inward or outward cheque sent for clearing.While
dishonoring the cheque, the bank should provide the reason for the dishonor. Thus, the bank
returns the clearing cheque along with the return advice with the reason for the cheque return.

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 CHAPTER- 5
CONCLUSION (LESSON LEARNT)

5. 1. Summary and Conclusion

This report is prepared as per the requirement of eight semester of BBM under TU. This report is
based on my personal experiences during the eight weeks period I worked as an intern in
Siddhartha Bank Limited, Dhangadhi.
Siddhartha Bank Limited (SBL) is one of the commercial bank in Nepal which was established
in 2002. It only does not provide product and services but even aims at total customer
satisfaction by rendering efficient and diversified financial services through improved
technology.
As a result SBL, today is found to be one of the leading commercial bank of Nepal providing the
full range of commercial banking services through its establish 41 branches across Nepal and 45
ATM terminals and even with branchless banking facilities in remote areas which lacks its
branches and ATM terminals. The reason behind its success can also be predicted as a result of
new technologies and user-friendly banking software (Oracle Flex cube) is being used by the
bank.
CSD and Remittance Department are the most important departments of any bank. CSD is the
desk where customers are provided the required information. So, it is often called information
desk. The main function of CSD is account opening, account closing, cheque printing and
issuing, providing bank statement on request, distributing debit cards and providing customers
with the required information on bank’s product and services.
Remittance Department includes the transfer of money from an individual, usually a person who
has emigrated from his/her city or country of origin, to another individual, usually a relative who
remains at home. Remittance transfers are typically person-to-person payments and of low
monetary value.
Remittance Department also includes bills and clearing function in SBL. Clearing section is the
main back of office in providing services to the customers of clearing transaction of inward and
outward cheques. The clearing section provides different services including information about
cheques and reason of dishonor of cheque to the customers.

5.2 Lesson Learnt

During this internship, internee learns different skills which will help in my personal and
professional life. Some of the lessons learnt during this internship program are stated below:

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Way of Dealing with Customers
The customers are the biggest asset so they should be dealt with good care. In the bank, internee
came to know that the customers are different in nature so the customers should be dealt
differently.

Dealt with Real Situation

The prompt reaction is necessary for some action. so in many situations internee learns how to
respond to different issues (action).

Way of facing different issues

While working in different department, internee had to face different issues relating to customer
complain about slow delivery of services, wrong information delegation so this situation had to
be dealt with due care to retain the customers

Gap Observation
It’s totally different to be in the field than what we learn in the theory. In the theoretical
knowledge, internee learns that banks are free from favoritism and nepotism but these things are
still prevalent in the company. Internee personally observes the different theories learnt cannot
be solely be applied in the concerning field. It’s not so easy to convince a customer and offered
the service they actually want as internee thought it will be. The behaviors of the employees
were very nice then internee thought and heard from others. Internee thought that the senior staff
will place me in the various departments according to them, but internee can choose the
department where internee want to be and change the department as internee like.

Lastly, during my study, internee find out customers are the greatest assets of any banks. The
banks are constantly attempting to provide better or quality service to the customer. The
behavioral issues are also critical as they make the customer feel satisfied. The unique and tailor
made products and services are the targeted to fulfill the diverse needs of the customer. On top of
that if they are made comfortable and properly addressed in a friendly way, they will be fully
satisfied with the service. This helps the bank to achieve success by creating loyal customers and
retaining them.

Internee learns that socializing with the people, dealing with the coworker or a senior, making
the working environment cozier and friendlier are equally important in the organization.
Informal interaction and communication among the employees help to ease the monotony of the
job and create a pleasant working environment. My supervisors not only guided me about the
banking, but they also shared their personal experience and facts that helped me get a better
picture of the organization.

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 Internee want to conclude that SBL is excellent in term of their services despite with some pros
and cons with the issue related to customer satisfaction. SBL is established with the promise to
provide excellent services to their customer and improve their customer satisfaction by
specializing on the strength, overcoming its weakness and doing their best to retain their valued
customers.

It has been fantastic experience interning at Siddhartha Bank Limited, Dhangadhi. Internee got to
know every bit of banking activities what has been accessed to me.

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 BIBLIOGRAPHY/REFRENCES

Annual Report, Siddhartha Bank, (2017/2018)

D.R. Bhandari (2017), Business Environment of Nepal

Manoj Tiwari (2015) Internship Report on Siddhartha Bank Ltd. Unpublished Report

www.google.com

www.siddharthabank.com.np

www.nrb.org.np

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