CHAPTER I

INTRODUCTION

1.1 Background of the Study

The Bachelors in Business Administration (BBA) is a four year student conferred

program aimed at developing the self motivated middle level managers in any
organization through practical way of learning. Being the student of banking and finance,
it’s my honor to be a part of internship program under this curriculum, which has helped
us to acquire the practical knowledge of general banking transactions. This is a great
opportunity for me to know about the banking industry that has worked as a building
block for our career development in this financial service sector.

The study is for the partial fulfillment of BBA course of the T.U. but is a very
knowledgeable to the person, who really is interested in the different modes of Payment
and Settlement System used by the various Commercial Banks in the country. The
internship period is supposed to undertake for eight weeks which targets to train and
prepare students for managerial functions, develop student’s interpersonal and
communication skill by encouraging them to interact with the people in organizations. It
also provides the platform to apply the theoretical knowledge that we got in the last four
years by exposing own self in real working environment.

As my topic is about the Customer Service Department (CSD) of Sanima Bank limited,
this project report is basically focused on the services provided, tasks and other general
activities, which are done on CSD unit. Customer Service Department is the most
responsible department that works on behalf of bank as well as the customers. CSD is the
department where most of the queries of the customers are answered through the face to
face interaction as well as telephonic interaction. The number of customer inflow directly
depends upon the marketing done by the staffs serving at the front line or customer
service desk.

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1.2Objectives of the Study

The general objective of the internship is about getting exposure to real business projects
and problems, development of technical skills and increased insights regarding
organizational work environments thereby enhancing communication skills as the
foundation of professional correspondence and understanding the general structure of
most business situations by acquiring the new information and ideas so as to apply them
for the benefit of the organization as well as the one’s own career development.
However the specific objectives of the study were:

 To help the customers in opening an account.

 To assist the customers for closing an account.
 To identify products and services to the customers offered by Sanima Bank Limited
and also solve their queries.
 To enhance the communication skills and public relation skill through direct
interaction with the customer.
 To be familiar about the software used in bank's transactions.
 To pursue potential customers to establish a relation and start a banking transaction
through marketing.
 To understand some marketing activities performed by bank.

1.3 Methodology of the Study

In order to complete the report, various methods were used, the methods are explained
below:

 In order to prepare this report I need to have a real work experience, for this I chose
SBL. In this regard I worked at the Ekantakuna Branch of Sanima Bank Limited.
During the process I was given the opportunity to work in all department of the
branch namely, Customer Service department, credit department, Card center, Cash
department, Remittance department. The knowledge obtained from this helped me to
complete the report to the great extent.

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 In addition I used primary data and secondary data to gather the essential information
for this report. Primary data includes the information that is collected from interview
with the bank personnel as well as customer. And, secondary data includes the
information that is collected from the annual report of SBL, brochures, newspaper,
bulletin, booklets, and websites and other published documents.

1.3.1 Organization Selection

Being the student of Banking and finance, selecting the organization for my internship
was not so testing time for me. I dropped the internship letter with my CV attached with
it and after three weeks or so; I was placed as an intern in Ekantakuna Branch of ”Sanima
Bank Limited”.

I chose SBL as my intern organization because, being a student of finance, I had to

choose a financial institution among which commercial banks are the most advanced
type which carry number of financial transaction. . Sanima Bank Limited had been the
right choice for an intern as it has the intern provision and also where intern get the
working environment. Intern wanted to do internship in Sanima Bank Limited since it is a
highly reputed bank. The customer's preference and the emerging development of the
bank for sustainable profit can attract an intern to join this organization. The practical
organizational knowledge and culture intern get during internship period proves the right
selection of organization for internship.

1.3.2 Placement

After the assignment of branch from the HR department, I was asked to visit the branch
manager of Ekantakuna Branch. By visiting Mr. Aayush Aryal, Branch manager, I was
placed to different department for the first time where I could learn and familiarize
myself with the new environment and the activities going within the organization under
the supervision of Mr. Aditya Bikram Thapa, Relationship Officer. I was placed in the
customer Service department .Working in this department for more than five weeks, I

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was later placed in, Card center, Cash department, Remittance Department, and
marketing department .In each department I worked for more than one week. In each of
this department I presented myself with self the staffs, I was able to work with an ease
environment where I was given full support and cooperation.

1.3.3 Duration of Internship

The duration of internship period was for eight weeks as defined by faculty of
management, Tribhuvan University. As an Intern, I started internship in the bank on 24 th
May 2015 to 28th July 2015, working 8 hours a day.

Table 1.1: Duration of Internship

Weeks 1 2 3 4 5 6 7 8
Customer       
Service
Remittance  
Marketing     

1.3.4 Activities Performed

During my stay at different departments of the organization, I was at first given the brief
overview about the work of the particular department. I started with general banking
work related to the concerned department such as customer reception, account opening,
documentation, distribution of services, etc. I was given limited access in making entry to
the computer system as it was against the bank’s policy. So, most of the time, I was a
helping hand to my seniors or the employee of the bank. It was a great learning
experience for me as it helped me to gain a lot from my seniors.

1.4 Limitations of the Study

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Internship opportunity provide by the bank was a great achievement in itself. It is obvious
that in everything there is some kind of limitations and this internship report is also not an
exception. So, it also has common limitations. The following are the major limitations of
my study:

 Due to lack of time, study of each and every activities of the bank in depth was not
possible.
 Due to the confidential nature of the banking sector, bankers do not give correct or
relevant information on some topics in order to maintain the privacy of the bank.
 Interns were not allowed to use the system and entered the cash premises.
 The banks staffs were occupied by their work so they had a little time to interact with
intern.
 It does not give detail view of overall functioning of the bank.

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 CHAPTER II
INTRODUCTION TO THE BANKING INDUSTRY

2.1 Introduction to Bank

A bank is a financial institution which deals with deposits and advances and other related
services. It receives money from those who want to save in the form of deposits and lends
money to those who need it. . The people who runs bank are called bankers. Bank can be
defined as the financial intermediary between depositors and entrepreneurs. The
intermediation takes place when Banks accept deposits from general public, corporate
bodies and private organization and deploys those deposits for profitable purpose in the
form of loans and advances. Bank is financial service institution. Therefore in between
this intermediation, bank gets some earning.

"A bank is an establishment for the custody of money received from or on behalf of its
customer essential duty is to pay their draft on is profit areas from its use of the money
left unemployed by them".-  Oxford English dictionary

By this definition, Bank can easily be defined as the custodian of deposits. The
transactions in the financial market heavily depend upon the Banking system of the
country. Without Bank it would be quite impossible for the industrialist and
entrepreneurs to go directly to general public for getting their savings for investment.

2.2 Origin of Bank

The word “Bank” has been arrived from Italian word “BANCO” in ancient time. In
French language it is called “BANKE” and English language it is called “BANK”. In
Italian language “BANCO” means “BENCH”. The evolution of banking industry had
started a long time back, during ancient times. There was reference to the activities of
moneychangers in the temple of Jerusalem in the New Testament. The development of
banking in the ancient Rome roughly followed the Greek pattern.

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As a public enterprise, Banking made its first beginning around the middle of the twelfth
in Italy and the Bank of Venice, founded in 1157 was the first public banking institution.
Following it was, The Bank of Venice and Genoa continued to operate until eighteen
century. Reference: Annexure 1 of this report.

2.3 Development of World Banking Sector

When the World War II was inching towards its end, major countries started mulling the
plight of the future world. There were valid concern about reconstruction of devastated
areas, and rebuilding and developing the war-hit economies. In 1944, they gathered at
Breton Woods, in New Hampshire State of USA. They made remarkable decision to
boost international trade and economic growth, and to achieve monetary stability in the
global economy. The following organizations are the outcomes of historical Breton
Woods’s conference of July 1944:

 WB (World Bank)
 IMF (International Monetary Fund)
 ITO (International Trade Organization)

2.3.1 IMF

With its headquarters in Washington DC, IMF was established on December 27, 1945 as
outcomes of the Articles of Agreements of IMF approved by Breton Woods's conference
in New Hampshire of USA in July 1944; it started financial operations from March 1,
1947. Having close proximity with the World Bank, IMF has been operating as a special
UN agency from 1947. With its nearly universal membership of 184 countries, the IMF
serves as international forum where members can monitor global, country and regional
economic development.

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2.3.2 World Bank

The World Bank Group is a group of five international organizations responsible for
providing financial and advice to countries for the purpose of economic development and
poverty reduction and for encouraging and safeguarding international investment. The
group and its affiliates have their headquarters in Washington D.C. with local offices in
124 member countries.

2.4 History of Banks in Nepal

Nepal is developing country. Banking history in Nepal is not so long. According to

historical records, our king Mandev and Gunkamdev established Manank and Gunank
Mudra respectively. Gunank Dev borrowed money to rebuild Kathmandu in 723A.D. A
Merchant named Shankhadhar paid all the debts of people and Nepal Sambat established
for the remembrance of that occasion in 880 A.D. Likewise, Jayasthiti Malla classified
the people in 4 classes and 36 castes by their occupations. One of those castes who were
engaged in Money lending business at that time, named as Tankadhari. During the prime
minister ship of Ranoddip singh, “Tejarath Adda” was established as the first financial
institution of the country. At the beginning only government staffs were allowed to take
loan at 5% interest rate and public were also allowed to take loan at the same Interest rate
against gold and silver security, “TAKSAR BIGHAG” was also established since
B.S.1989. Our oldest bank is “Nepal Bank ltd” established in B.S. 1994 Kartik 30.After
that so many banks established in Nepal. NRB was established in B.S. 2012 to do the
function of Central Bank. RBB, another commercial bank, was established in B.S. 2022.
Only after B.S. 2041 Nepal Government allowed joint venture Banks to operate in the
country. Then came a board of joint venture public limited commercial Banks in the
country. At present, the banking sector is more liberalized and there are various types of
bank working in modern banking system. This includes central, development and
commercial banks.

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2.4.1 Central Bank

The Central Bank is an apex body of the monetary system which seeks to regulate the
functioning of the commercial banks of the country. The central bank not only provides
monetary aid to the commercial banks in the time of crisis but also perform other
functions. Indeed the control over cost and availability of credits in the economy and
regulation of the growth of money supply are special responsibility of the central bank.
The central bank of the country primarily meant to promote the financial and economic
stability of the country. The central bank of Nepal is called NRB.

The main functions of the Central bank are:

 Acts as a note issuing agency

 Acts as the banker to the state
 Acts as the bankers bank
 Controls credits and flow of money in the country
 Manage exchange rates of national currencies
 Promotes economic development

2.4.2 Commercial Bank

A commercial bank is a business organization, which deals in money; borrows and lends
money. In this borrowing and lending of money it makes profit. A commercial bank
raises its resources through borrowing from the public in the form of deposits and lends
them to business firms

Commercial bank performs several function depending upon their objectives and unique
function such as various types of deposit facilities namely, current, savings and fixed.
Safety of public money, remittance of money, letter of credit, guarantee, loans, lockers
facility, foreign exchange, serving as agent of client etc. The commercial Banks of Nepal
also do all these functions.

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Functions of Commercial Banks in Nepal:

a) Acceptance of Deposits
 Current Deposits
 Saving Deposits
 Call Deposits
 Fixed Deposits
b) Advancing Loans
 Cash credit
 Loans
 Bank overdraft
 Discounting bill of exchange
c) Credit Creation
d) Agency Function
 Payment of subscription, electricity & water bill, insurance premium
 Collection and payments of cheques, draft, dividend
 Remittance of funds
e) Miscellaneous Function
 Custodian of valuables
 Issue of letter of credit
 Dealing with foreign exchange
 Supply of information of trade and commerce (financial advising)

Existing Scenario of Commercial Banks in Nepal:

As mentioned below, there are altogether 30 commercial banks in Nepal. Some are
established under the joint venture of foreign banks and rest are domestic banks. The
commercial banks exhibit the position of capital structure, assets and liabilities, etc.
Reference: Annexure 2 of this report.

The challenges faced by Nepalese Commercial Banks are as follows:

The main challenge to the commercial banks at present is competition.

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 The entrance of the capital market i.e. investment banking, stock exchange, mutual
funds, market makers, etc. is also a serious threat to the activity of commercial
banks in Nepal.
The growing privatization, international trade and activity, creates a series of
financial based problems.
The lack of trained manpower of this sector and the growing intra organization
brain drain is regarded as a danger signal of the existing unhealthy competition
and leading to other challenges like the leakage of secrecy and inefficiency at
last.

2.4.3 Development Banks

Institutions dedicated to fund new and upcoming businesses and development projects by
providing equity capital and/or loan capital are known to the development banks. They
are the banks that aid developing countries in economic development. They may lend or
invest money and encourage local ownership. They may be worldwide, regional, or
national. Nepal has become member of World Trade Organization (WTO) and has
committed to open Financial Services Sector (FS) especially banking services to the
foreign banks and financial institutions by 2010.

2.5 Banking and Financial Statistics

Regarding banking and financial statistics, the deposit/credit trend of commercial banks
from 2001 to 2014 is shown below:

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 Figure 2.1: Banking and Financial Statistics

2.6 Comparative Study of Commercial Banks

For the comparative study, some of the banks earning price share (EPS) and return on
equity (ROE) are shown below:

Table 2.1: EPS of Commercial Banks

Banks EPS Banks EPS

Everest Bank Limited 80.02 Grand Bank 5.97
Nabil Bank Limited 72.72 Civil Bank 5.06
Standard Chartered 65.27 Century Bank 4.18
NIBL 44.75 Janata Bank 2.99
Himalayan Bank 36.48 KIST -10.68
EPS indicates how much a bank earns per share. (in Rs.)

Table 2.2: ROE of Commercial Banks

Banks ROE Banks ROE

Nepal Bank Limited 99.49 Grand Bank 5.26
Everest Bank Limited 30.61 Civil Bank 4.78
Rastriya Banijya Bank 29.24 Century Bank 3.91
Nabil Bank 28.28 Janata Bank 2.86
Standard Chartered 23.78 KIST -17.44
ROE indicates percentage return on equity. (in %)

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 CHAPTER III
INTRODUCTION TO SANIMA BANK LIMITED

3.1 Background of SBL

Sanima Bank Limited (SANIMA), promoted by prominent and dynamic Non-Resident

Nepalese (NRNs) Businessman, commenced its operation in 2004 as a National Level
Development Bank with the vision to mobilize resources for National
Development. Sanima received the operating License from Nepal Rastra Bank to function
as an "A" Class Commercial Bank in 15th Feb, 2012 AD.

The head office of the bank is located at Alakapuri, Naxal. In the pursuit of sustainable
growth, Sanima has 38 full-fledged branches within and outside the Kathmandu Valley
and has further plans to expand its reach in the various part of the country. Sanima
provides one window financial solutions to the customers with the wide range of
Products and Services. Sanima not only offers readymade products and services, but also
offers customized services to better suit the needs of the individual customer. Sanima is
VISA associated member bank. The ATM has been established in the premises of each
branch has enabled the bank to extend services for 24 hours. Customers can utilize ATM
and make with drawl at any time. It provides the ATM service through all the VISA
counters all around Nepal with certain charges. Bank’s 24 hours mobile banking and
internet banking services support the delivery of modern and speedier customer service.
The bank is too committed for Corporate Social Responsibility (CSR) through continuity
of MAHA alliance, various scholarships for needy, Blood donations, free health camps
etc. to establish itself as a responsible corporate citizen of the nation.

Sanima provides one window financial services with the wide range of products and
services. Sanima not only offers readymade products but also offers customized products
to the individual customer. Sanima use centralized banking software called PUMORI
BANKING SOFTWARE. This supports modern banking facilities like tele banking,
internet banking, SMS banking, ATM, etc. The sophisticated communication technology

13
ha interlinked its branches into centralized database system and enables the bank to
provide services anywhere. It is also known as Any Branch Banking Service (ABBS).
Sanima is committed to exceed customer expectations in all areas of its Business through
consistent processes, innovations and improvements.

3.2 Capital Structure of SBL

SBL is the bank having one of the highest paid up capital yet in the banking sector of
Nepal and it has also issued shares in the market.

Table 3.1: Capital Structure of SBL

Capital Structure (2070/71) Amount (Rs.)

Authorized Capital 3,10,00,00,000

Issued Capital 2,55,02,40,000

Paid-up Capital 2,55,02,40,000

Regarding share holding pattern, 51% of share has been hold by promoters while
remaining 49% is offered to general public.

Figure 3.1: Shareholding Pattern

Shareholding %

49% 51%

Promoter share General Public Share

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3.3 Vision, Mission and Goal of SBL

Vision
To be a trusted and leading bank in Nepal.

Mission
To be continuously innovative and keep up with changes to satisfy investors, staff,
customers, regulators and the people of the community we serve.

Goal
To be one of the top 10 banks on profitability by mid July 2018.

3.4 Objectives of SBL

SBL’s organizational objectives are based on total customer satisfaction. SBL has always
focused on organization’s present capabilities, customer focus activities, business
makeup regarding the customers and their satisfactions. Thus, SBL strives to provide
banking and financial solutions in a simplified way with customer focus while adding
value to stakeholder’s interests.

SBL has designed its objectives in such a way that it complements the mission and vision
and also helps them build a good game plan for forming strategies. As commercial bank,
SBL has the following objectives:

 Satisfied Stakeholders
 Motivated Workforce
 Quality Assets
 Well Diversified Portfolio
 Optimum Return to Shareholders
 High Standards of Corporation Governance
 Investment in SME

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3.5 Major Markets and Customers

SBL expands its services for the development of the trade and industry in the country. It
has been operating its business in many places of Nepal since ten years. Its major market
is viewed to be every nook and corner of the country so it is extending further more
branches in the various cities in the near future. The various branches recently in
operation by the branch managers are: Reference: Annexure 3 of this report.

3.6 Products and Services

As a pioneer in introducing many innovative products and marketing concepts in the

domestic banking sector it represents a milestone in the banking history of Nepal with
customer satisfaction considered as focus objective while doing business.

Products of SBL

I. Deposit Schemes

A. Sanima Current Account

Different types of account are opened with different purpose. Current Account can be
opened in the name of Proprietary Concerns, Partnership Firms, Corporations,
Companies, Government Agencies, Non-Government Agencies, Loan clients etc. This
account requires minimum balance of Rs.1000 and Rs.10000 for loan clients. The
account holder can deposit and withdraw their cash unlimited. They are not provided any
interest rates. (LIMITED, 2015)

B. Sanima Premium Saving

Premium saving account is an attractive and new saving account introduced by Sanima.
This account can be opened with the minimum balance of Rs. 10,000. This account
provides 4% interest rate per annum on daily balance. This is an attractive product for the
customer to earth higher interest on saving account with free ABBS service. The interest

16
rate of the product can be fluctuate over the period of time depending upon market
condition and other various factors (LIMITED, 2015)

C. Sanima Fixed Deposit

Fixed deposit account is another type of account offered by Sanima bank with a specific
feature. There are 4 types of schemes under fixed deposit account with varying time
period. They are 3 months, 3 to 6 months, 6 to 9 months and 1 year and above. As
concerning the amount depositors want to deposits the interest rate will be different.
Under this account interest are payable monthly, quarterly and at maturity. The account
holder has a facility of overdraft up to 80 percentage of their total deposit. (LIMITED,
2015)

Table3.2: Details of Sanima fixed deposit

For Individual
Time period Interest Rate ( in %)
Quarterly
1 month to below 3 months N/A

3 months to below 1 year 5.5

1 year and above 6.0
For Institution
Time Period Interest Rate (in %)
Quarterly
1 month to below 3 months N/A
3 months to below 1 year 5.0
1 year and above 5.5
Source: www.sanimabank.com.np,2015

D. Sanima Nari Bachat

Sanima Nari Bachat is focused for the women only to provide convenient banking
experience. This account can be opened with Rs 200 as balance which provides 4%
interest rate on daily balance. The interest is payable quarterly. The account holder can
get free SMS banking and free i-banking. (LIMITED, 2015)

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E. Shareholder's Saving

With the objective of providing services to its shareholders, Sanima has established
separate saving account which is called shareholders saving account. This account can be
opened with zero balance which provides 3.5% interest rate on daily balance. (LIMITED,
2015)

F. Senior Citizen Savings

Sanima bank limited offers special benefits and privileges for senior citizen. Any
individual above 50 years can open an account with minimum balance of Rs.200 which
provides many benefits to the account holder. (LIMITED, 2015)

G. Salary Deposit Account

Sanima has also offered salary deposit account targeting Companies, Corporations,
Government Agencies and Non-Government Agencies etc. The main objective of
offering this account to different government and non-government companies is for
facilitating to pay salary directly to the account of their employees. This account can be
opened with zero balance which provides 4% interest rate and the account holder can get
the facility of 20% overdraft of net salary.

H. Sanima Prime Saving

Another type of saving account is Prime saving account. Prime saving account can be
opened with minimum balance of Rs.1000 which provides 3.5 percent interest rate per
annum on daily balance. Interest is payable quarterly.

I. Sanima Sulav Bachat

Sanima Sulav Bachat is the different type of account provided by Sanima bank. This
account can be opened in zero balance which gives 3.5% interest rate on daily balance.
The interest payable is quarterly. (LIMITED, 2015)

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J. Sanima Muna Bachat

Sanima has offered Muna Bachat Khata for children below 16 years. This account can be
termed as planned saving. There are 2 types of schemes under this saving account.
(LIMITED, 2015)

 Age limit less than 16 years to pen this account

 Account can be opened at minimum of Rs500 balance
 Deposit and Withdrawal unlimited
 Interest Rate 3.5% p.a. on daily balance
 Free SMS Banking Service
 Discounts on various child outlets through Muna Card

K. Sanima Bises Bachat Khata

Sanima Bishesh Bachat Khata is the saving account provided by the bank which has the
minimum balance of Rs.25000 with an interest rate of 5% per annum. This product
provides free I-banking, free SMS and free ABBS charges.

L. Sanima Samriddha Bachat Khata

Sanima Samriddha Bachat Khata is a special kind of saving account for those customers
who wish to get more interest amount. This account provides higher rate of interest.

Table 3.3: Details of Sanima Samriddha Bachat Khata

Minimum Balance : NPR 50,000

Interest rate : 5.50% p.a. interest payable quarterly
I-banking : Free
ABBS facility : Free
Utility Bill payments (PSTN,
Free
ADSL, Postpaid) :
50% discount on Safe Deposit Locker charge
Safe Deposit Locker
(subject to availability)
VISA Debit Card 50% discount on Issuance

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II. Loans

The need for financing various short term and long term venture of both corporate and
retail clients has been best fulfilled by the bank with its large loan product portfolio. The
various kinds of loans provided by the bank are:

 Sanima SBGL
 Term loan
 Overdraft / Working capital
 Auto loan
 Sanima Home loan
 Education loan
 Sanima Gold loan
 Manpower loan
 Commercial loan
 Sanima Tractor and Agro Equipment loan
 Gold Loan

Services of SBL

A. Sanima Debit Card

Sanima Bank have been issuing Sanima Debit Card to their depositors since January
2008.The Debit Card is linked to the Smart Choice Technology (SCT), the largest ATM
Network Company in Nepal; providing 24 hours account a ccess facility to its
customers. Sanima Debit Card can be used in more than 1000 SCT network to withdraw
cash without any charges. Sanima Debit Card can be used in every ATM of Punjab
National Bank, India to withdraw cash. Sanima Debit Card is issued at the time of
opening saving or personal current account at an issuance cost of Rs.200. An annual
service charge of Rs.100 is charged in the second year from the debit card holder. The
facilities provided by Sanima Debit Card are:

 Cash Withdrawal
 Mini Transaction Report

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 Mini Statement Prints
 Balance Enquiry
 Payment for purchase of goods/ services at the merchant locations (through POS)
 Personal Identification Number (PIN) change (LIMITED, 2015)

B. Sanima I-Banking

Sanima Bank offers internet banking services to its valued customers. The customer
having I-banking facility can enjoy 24 hours the absolute freedom of banking from any
part of the world. Sanima I-Banking gives every customer immediate online access to
their accounts easily, conveniently and securely. The feel of luxury of complete internet
banking can be received from Sanima I-Banking. Some of the features of I-Banking are:

 Access your account 24 hours a day,& days a week

 Save money and time –no stamps and handwritten
 Transfer funds within a group
 Utility payments
 Online shopping(LIMITED, 2015)

C. Sanima SMS Banking

SMS Banking is one of the services that Sanima Bank offers to its customers. It's a new
24 hour banking convenience which helps customer to stay on top of any recent changes
made in the bank account or a loan account through mobile phone. The number for the
service is 2265. Services offered under SMS Banking are as follows:

 Balance enquiry
 Transaction Notification
 Foreign Exchange Rate Enquiry
 Account statement request
 Cheque Book Request(LIMITED, 2015)

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D. Inward Remittance

Remittance is one of the major incomes generating service of banks. Remittance service
of the bank is beneficial both to the business and personal customers as it make the
transfer of money easier. It covers large percentage of its national income. It facilitates
the sending and receiving funds to/from various places. It can also promote access to
financial services for the sender and beneficiary increasing financial and social inclusion.
Sanima Bank offers number of remittance products to furnish the customer need for
transferring their money in and out of the country through:

 Sanima Express
 Prabhu Money Transfer
 Himal Remit
 Prithivi Remit
 Laxmi Remit
 Everest Remit
 MTA Express Remittance
 City Express
 IME Remit
 Money Gram
 Reliable Development Remit
 World link Money Transfer(LIMITED, 2015)

E. Any Branch Banking Service (ABBS)

Sanima Bank has Any Branch Banking System to facilitate its customers to have easy
transaction. As well, for the solutions of endless long procedure, rush hour traffic, long
queues, risk of carrying huge sums of money to the bank, wanted to take out money from
your account but to make the service more reliable bank introduced the convenient
service. The customers can withdraw or deposit cash, receive information about the
balance of their account or obtain a statements of accounts is convenient from any

22
branch. The network is online and one can have access to his/her account from any of the
branches of the bank. (LIMITED, 2015)

F. INR Draft

Sanima Bank Limited introduces remittance services to its valued customers through
Standard Chartered Bank in India with following facilities:

 Draft issuance/Fund Transfer Facility through more than 700 location all over India
 Inward/Outward Remittance
 Clearing Services / Bills for Collection
 Easy and reliable transaction (LIMITED, 2015)

G. Foreign Currency Transaction

Sanima has been providing following Foreign Currency Transaction:

 Foreign Currency Deposit

 Current
 Saving
 Fixed Deposit Account
 Travelers cheque purchase/sale
 Cash sale/purchase
 Demand draft
 Inward/outward remittance
 SWIFT/Telegraphic transfer
 Cross Currency Transaction(LIMITED, 2015)

H. Sanima Utility Payment

 NTC Post-paid payment
 NTC PSTN payment
 ADSL Payment

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Customer can make a payment to Nepal Telecom for NTC Post-paid payment and can
make a payment by filling a deposit receipt form and deposit the amount in any of the
branch counters. This service is charged only with Rs.200 per year. (LIMITED, 2015)

I. Locker Facilities

Sanima offers safe deposit locker to its customer to provide additional securities for their
valuable goods. Locker Facilities are available at Head Office and various other branches.
(LIMITED, 2015)

3.7 Organizational Structure

Organizational structure determines how the roles, power and responsibilities are
assigned, controlled, and coordinated, and how information flows between the different
levels of management. A structure depends on the organization's objectives and strategy.
The structure can be shown as:-

Figure 3.2: Organizational Structure

Branch Manager
(Officer level)

Assistant Branch
Manager(Relationship
officer)

Customer Service
Marketing (Relationship
Department Teller
Officer)
(Relationship Officer)

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Branch Manager: Mr. Aayush Aryal is the one responsible for all the banking work
done in the Ekantakuna Branch. He is the head figure in the branch and also works as a
credit officer.

Assistant Branch Manager: Mrs. Mamita Maharjan is the one responsible for all the
work that is done inside the branch. She prepares all the reports before being finalized by
the BM.

CSD: The customer service department is the working station of Mr. Rijan Bajracharya.
He takes care of all the queries and other problems related to first hand customer
handling. He is also responsible for general banking.

Marketing: Mr. Aditya Bikram Thapa is the one that leads this department. He is
responsible for the all the marketing of the branch and he is the demand generation
officer of the branch.

Teller: Ms. Shraddha Bhattarai is the one that leads this department. She is responsible
for handling overall cash transactions and supervision of the department.

3.8 SWOT Analysis

The word SWOT stands for Strength, Weakness, Opportunity and Threats. SWOT helps
in scanning the external and internal environment of an organization in term of points
mentioned above. External environment forces are the source of opportunity and threats
whereas the internal environment provides strength and weaknesses. SWOT analysis of
SBL (Ekantakuna Branch) is as follows:

Strength :

Strength is an inherent capacity which organization can use to gain strategic advantage
over its competitors. It's related with internal environment. (Agrawal)

 Introduction of VISA CARDS have made SBL’s ATM accessible even in India.

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  Idle working environment that could be the key success factor.
 Main motto and focus of the SBL has been on Customer satisfaction this a
satisfied customer are the prospect to potential customers. .
 Services beyond the political boundaries. for example: INR Draft.
 Highly qualified and well experienced team of staffs and good quality services.
 Sound relationship between customer and the branch.

Weakness:

Weakness is an inherent limitation which creates a strategic disadvantage for a business

organization in relation to competitors. (Agrawal)

 Not the best location decision making as it is off shored.

 Even though the extension of its branches, there are still huge area to be covered
by Ekantakuna branch itself and limited number of branches.
 Lack of infrastructure. Like parking lot and road facilities.

Opportunity:

Opportunity is a favorable condition in the environment. It enables a business

organization to consolidate and strengthen its position. (Agrawal)

 Lack of other banks in the area.

 Growing SME in the Khokana area.
 Lack of marketing from other banks in that area.

Threats:
Threat is an unfavorable condition in the environment. It creates risk and causes damage
to business organization. (Agrawal)

 High interest rates from finance companies.

 Unstable political situation.
 Entry of foreign institutions after the year 2010 AD.
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  Earthquake of 2072 destroying banks could lead to decrease in confidence in
banks.
 Ever changing banking technology.
 Employees are easily taken away by the competitors.

CHAPTER IV

ANALYSIS OF ACTIVITIES DONE

4.1 Background

Internship was conducted in the Customer Service Department and Marketing department
of the bank under the guidance of Mr. Aditya Bikram Thapa. Placements in these
departments provided the exposure and understanding of the various service and
procedures of the bank and its relationship with its customers. All the experience and
knowledge gained in the 8 weeks of internship is explained in this chapter.

4.2 Customer Service Department

As mentioned earlier, customer service is the front desk of any organization. For any
organization it is the place which makes an early impression to the clients. It is the place
where customer makes the first contact with the clients. The Image and the reputation of
bank depend upon effective functioning of this department. It is the first place where the
customer first gets the service.

Major Functions carried under CSD:

This department introduces the basic banking procedure like opening the account to its
closing, issuing ATMs etc. The various activated of Customer service Department are
described follows:

4.2.1 Customer Counseling

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This is the most important function of customer service department. The efficiency of the
customer service department or an organization is the outcome of the quality of the
customer counseling that it provides.

There are various kinds of product and services available in this organization. Interns
were responsible for providing detail information regarding these different products and
services. Counseling customer is a need for the bank as it wants to increase the number of
its clients .Convincing a customer is a difficult task as well as interesting. Accordingly,
internee was liable to counsel the customer from various sectors to get introduced to the
product of the organization. While counseling, I had some bitter as well as sweet
memories. With my intern over I cherish the moments within my heart and within my
experience.

4.2.2 Account Opening

It is the one of the major function of the CSD department to open accounts so as to
increase its customers. For the account opening procedure, a simple 2 paged account
opening form was to be filled by the customers. Addition to this, a KYC update form is
distributed as mandatory by NRB which only asks if the customer have another bank
account. To open up the account, customers are required to present necessary documents.
Various other forms for E-banking, SMS banking, Internet Banking, ATM card services
are also to be filled as per the request of the customers.

Necessary Documents Required for Account Opening

Personal Account:

 Fully filled account opening form

 Photocopy of a citizenship; original to be shown for verification
 A single passport size photo; no extra for ATM, I-BANKING, or
SMS banking.
Joint Account:

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  Fully filled account opening form
 Valid citizenship of both all parties
 Passport size photo (1 each) of all concerned parties

For Current Account:

 Completely filled form with stamps and signatures where required

 VAT and PAN registration
 Citizenship of the all the parties involved
 2 passport size photos each for the involved parties
 Audited report of past fiscal quarter( photocopied; original to be
presented for verification)
Figure 4.1: Procedures of opening an account

Fill the application form

Agree the terms and conditions of

bank
Sign the signature specimen card

Provide the required identification

Provide necessary document

4.2.3 Closing an Account

I also had the responsibility to close the account of the customers who wants to close
his/her account in the bank following the procedure strictly. The procedure for it was:

 Need of the written application by the account holder.

 Return of the cheque book and the ATM provided to the customer.
 Return of the rest amount to the respective customer.

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  Finally it is updated in the system and the form is filed in closed
account file.

4.2.4 Distribution of ATM Cards

Like all banks, SBL also provides ATM services to their customers for 24 hour unlimited
services. The ATM machines can be found throughout the country where there are branch
of SBL. Accepting form to for ATM services to distributing it was responsibility of the
CSD. The customers had to fill up a different form to get an ATM card. After the forms
are filled and at the end of the business day, an email is sent to the card department in
head office from which they contact the VISA office and get the cards ready. After the
cards arrive in the cards department, CSD have to make the messenger bring the card to
the branch. After the cards and the PIN have arrived in the branch, it becomes the
responsibility of the CSD to inform the customer and ask them to collect their cards.
Upon the arrival of the customers, the CSD now have to verify the customer and provide
him with the card and the PIN number and have to enlist the card number to activation.

4.2.5 Preparation and Issue of Cheque Books

While opening an account, every customer is given a cheque book and it usually contains
10 slip of MICR cheque. At the near end of the cheque, there is a cheque requisition slip
that needs to be filled and presented in the branch so that a new book can be issued on the
account. In case of lost or theft of the cheque book, customer should immediately contact
the branch and the issued cheques would be made invalid. In case of loss, new requisition
slip can be obtained with an application. Then the CSD is entitled to print new cheques
on the name of the a/c holder and present it to them. The CSD officer must file the
issuance of the MICR cheque and must be approved by ABM before handing them over
to the customers. It is the duty of CSD to check the stock of cheques and request it from
the cheque department in the head office.

30
4.2.6 Assisting customers to properly use ATM Cards

Since SBL focuses on every income group people that every customer that walks in know
about the new technologies and ATM machines. Thus it becomes the responsibility of the
CSD to make that person understand what the service actually is and how to use it.
Sometimes one may even have to physically demonstrate on how to use such cards. Most
common problems in such are the how to use the card or insert it in the machine. Or
sometimes what is the PIN number or how to change it. Thus it becomes the
responsibility of the CSD to solve such queries and sometimes even give a physical
illustration on how to use it.

4.2.7 Remittance Department

The work that I was assigned in this department was that of paying out the customer’s
money that may be from local or international and also to send the local remit from
Kathmandu Valley to other places. There are many remits such as Himal, IME, City,
World link and many more but main remit used is Sanima Express for receiving or
sending out the money. For paying out the remittance the number brought by the
customer is entered in the respective page of the remit and the names are verified through
the original government id and the print is taken out. The stamp of the bank and the
authorized signature is made and finally the customer receives the money from teller.

4.2.8 Data entry and filing

After every work done in the banking sector, one needs to file it. The filing may be done
in a traditional way or in the digital way. But in the Ekantakuna branch, it is necessary to
record the files in the traditional files and also in the digital way through PUMORI
software. The filing includes the forms of account opening, ATM, SMS banking, I-
banking, dormant account, stationery and many others. The data then have to be listed in
spreadsheet in computers and in PUMORI software. This is a continuous process as at the
end of the every quarter, all the entry will be audited by the internal as well as external
auditor.

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4.2.9 Handling Incoming Calls

Any bank receives numerous calls every day. The calls may be for anything and could be
internal or external. Thus it the responsibility of the CSD to receive the call that tends to
ring on the branch’s telephone. Then after inquiring about the calls, CSD must dispatch
the call to the required staff or hang up. It is not possible to record all the incoming calls
but it is a must to record some very important calls so that the message can be forwarded
to the concerned parties later. The CSD must be very careful while providing critical
information over calls and must avoid critical information as much as possible.

4.2.10 Distribution of I-Banking

The banking services have been much more simplified through the use of I- banking
service provided by the SBL. Customer around the globe can acquire much needed
information about their accounts through I- banking service. This is a specially targeted
product for NRN but still the localities are also using this feature. It is cyber related
service and people might fear about the cybercrime that could be committed. Thus it is
the responsibility of CSD to make customers understand the ways to use such feature. It
is also the responsibility of the CSD to provide customers with the “Username and
Password” required for such services. Sometimes the CSD personal also have to illustrate
such services so that it becomes convenient for the customers to use such service. It is
also the responsibility of CSD personal to enlist the customer for I-Banking activation.

4.2.11 Other Activities Performed

 Helping customers fill up their form and vouchers.

 Cheque/statement printing and scanning.
 Answering to the customers queries.
 Updating KYC and maintaining reconciliation.

4.3 Marketing

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As there is a cut-throat-competition among the Banks; the approach of outdoor marketing
was highly preferred. So, we were deputed for deposit marketing at the periphery of
Ekantakuna, Lalitpur. The relationship officer (Mr. Aditya Bikram Thapa) was much
responsible among the staffs of the branch for both credit and deposit marketing.

4.3.1 Field Visits

As a marketing intern, one must visit market place where one is required to pursue
potential customers to establish a relation and start a banking transaction. In such process,
one can come up with various kinds of people. So it becomes the duty of the marketing
personal to confront different potential customers with different approaches and make
them trust the SBL and its services. It is a must to maintain apparel that is widely
accepted as formal and the use of gratitude and softness in behavior and in voices adds up
to it.

4.3.2 Preparing Call Report

For every visit in the market one must maintain a call report. A call report is a report that
is the summary of the field visit. It consists the name of the potential customers, the
contact number, and the potential for the sales along with the follow up date. The
following is an example of a call report that I have made in my tenure.

4.3.3 Broachers and Calendar Distribution

As it is the responsibility of the Marketing department to maintain good relation with the
existing customers, thus as new year approaches the marketing team must make sure
customers get the calendar of the SBL. It is also the responsibility of marketing
department to inform customers about interest rate changes, new schemes and others.
Thus it was a must to work for interns as it helped in making connections in the real
world as they get to meet real life business people thus opening windows of opportunities
for the interns.

33
4.4 Problems Solved

The internship period I did was short which not enough for learning everything we need
to was. Though it was short but I tried my best to take the optimum advantage of this
period to know the things to its surface in every department. The staffs were not able to
guide sometimes as they used to get busy with their work and at those times I could not
get the answers of my queries that I had. Being the part of bank as intern I cannot open up
everything I know about the bank due to the oath of secrecy and confidentiality. I was
given the chance to work in CSD and marketing department of the bank. I tried to solve
the basic problems of the customers and others as well when other staffs were busy:

 Addressing the customer queries.

 Giving details of the available services to the customers for their flexibility.
 Solving problems related to ATM and PIN.
 Filling up account opening forms and vouchers.
 Handling the problems faced by customers.

4.5 Interns' key observation

Sanima bank is operating in the society to make the people easily access to the banking
world. It has widened the area of its operation by opening the branches aiming to reach
every people in the country. The bank has sound equity and is well ranked by NRB for
having few defaulters which secures the deposits of the customers. The investments made
by banks are also in safe hands and the profits have been increasing year by year.The
things that I was able to observe in this bank are as mentioned below:

 Laborious, helpful and cooperative members.

 Most of the customers are satisfied with the services provided.
 Good return to the shareholders.
 Involved in social activities as well.
 Quick remittance from any remit.

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 CHAPTER V

CONCLUSION AND LESSONS LEARNT

5.1 Conclusion

From the report above prepared, we can conclude that banking sector has been
flourishing in a skyrocketing trend in the international scenario and this has also made an
effect to the developing countries like Nepal. People understand the values of deposits
and loans. They are approaching the bank for loan and have been investing in the
beneficial sectors like business, manufacturing, production, housing, etc.

We learnt interpersonal skill, communicational skill and technical skill that helped me to
build my knowledge in a broad way. The interpersonal skills helped us to interact with
the various types of customers and their various problems. The negotiation skills also got
increased developing the softness and being more formal while communicating with the
people or clients. The positive attitude also got developed while dealing with different
nature of customers.

We also learnt the technical skills to operate computer system, ATM machine, photocopy
machine, fax machine, scanner, printer, and many more. There must be a two way
effective communication with the customers so as to satisfy them with the services.
Therefore all these skills were gained through internship which motivated for the better
performance with developed personality.

CSD believes in the fact that customers are the foremost stakeholders and each and every
employee just tries to meet the needs and expectations of the customers. That is why the
activity which is performed in CAD is quite well discipline. All the activities like

35
reviewing and filing documents, inspection, and reporting all are done in time with full
level of energy. Therefore, CSD has been regarded as a major department of banks,
which controls and protects the bank from any kinds of misleading notion and provide
higher levels of services.

5.2 Lessons Learnt

The most important lesson that students have learnt during their intern period is how to
perform various tasks in Nepalese organizational environment, which is the basic lesson
for my career development. Besides this, student can also learn the working of the
general banking transaction. And In my case I got a lot of practical knowledge during my
intern weeks. Students get exposed in the practical field and will have a lot of knowledge
through the intern organization. I personally felt it was a very good period for my
learning experience and also for my carrier shaping.

Mainly the learnt lesson is as follows:

 Understanding the customer, customer relation and tactics necessary to deal with
them.
 Developing the art of dealing with the personnel inside the working environment
 Technical knowledge of operating the software and performing various activities
using them.
 Documentation of legal documents required for opening A/C, closing A/C, bank
statement, remittance forms, etc.
 Formation of amortization schedules and interest calculation.
 The importance of the proper organization culture and its effect on the professional
working environment. This relates to the effective communication skills, team work,
well-mannered behavior, time management and the degree of social and professional
environment between the employees as well as with the customer.
 Learned to socialize with the professionals by adopting to their work culture.
 Most importantly, learned how to handle and provide different yet equitable treatment
to different categories of customers who are of different values to the bank.

36
 The proper way of dealing with the customer for various tasks, fulfilling their
demands and satisfying them so as to promote the banking prestige and banking
career.
 The corporate culture of the bank.

BIBLIOGRAPHY

Books

Gurung, R. (2013). Financial Institutions & Markets. Kathmandu: Buddha Academic

Enterprises PVT. LTD.

Agrawal, D. (n.d.). (2012) Component of External And Internal Environment. Business

Environment In Nepal. (p811)

Rose, P.S., & Hudgins, S.C. Bank Management and Financial Services (Seventh Edition).
Tata McGraw Hill Edition Private Ltd.

Shrestha, M.K. & Bhandari, D.B. (2011). Financial Institutions and Markets. Katmandu:
Asmita Publishers Pvt. Ltd.

Shrestha, M.S. (2013). Fundamentals of Banking. Katmandu: Buddha Academic

Publishers and Distributors Pvt. Ltd.

Journals & Reports

Adhikari R. P. (2008). Development of Banking and Financial Sector in past 25 Yrs.

Mirmire, Kathmandu: Bankers Training Centre, NRB, 8(12):4.

Khatiwada, Y.R. (April 30, 2008 & May 7, 2008). Banking Sectors Reform in Nepal I &
II: Implications for Corporate Governance. The Telegraph Weekly, p.2.

Nepal Rastra Bank (Mid – January 2013). Banks & Financial Institutions Regulation.
Statistics Division. Banking and Financial Statistics (No.48).

Websites

www.nepalbankingnews.com

www.nrb.org.np

www.sanimabank.com

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www.sharesansar.com

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