MANAGEMENT SERVICE AND CUSTOMER

SERVICE DEPARTMENT OF NEPAL BANK

LIMITED

AN INTERNSHIP REPORT

Submitted By
Prabin Chand
BBA 8th semester (Banking and Finance)
K and K International College
Exam Roll No:- 10626/12
TU Regd No:- 7-2-0364-0135-2012

Submitted To
Office of the Dean
Faculty of Management
Tribhuvan University

in partial fulfillment of the requirement for the degree of

Bachelor in Business Administration (BBA)

New Baneshwor, Kathmandu

August 2016
 ACKNOWLEDGEMENTS

The internship at Nepal Bank Limited was an incredible opportunity for learning and
professional development. Internee is grateful for having a chance to meet so many
wonderful people and professionals who led him through this internship period.

Internee would like to thank Mr. Sindhu Madhav Dhakal (BBA Director, K&K Int'l
College) and Mr. Sanjeev Pradhan (Management Faculty Member) for providing
necessary guidance and ideas about this internship program and report preparation.

Internee also would like to express his deep respect and gratitude to Mr. Sthaneshwor
Acharya and Mrs. Manita (Sharma) Dhakal for taking part in useful decision making
and giving necessary advices and guidance in the Management Service Department
and Mrs. Kabina Maharjan for providing necessary guidance in the Customer Service
Department of Nepal Bank Limited. Internee has immense pleasure in expressing his
cordial thanks to all the staffs of the Nepal Bank Limited.

Internee is thankful to get chance to implement theoretical knowledge into practical

field working in this organization. Internee will try to strive to use gained skills and
knowledge in the best possible way.

………………….
Prabin Chand
 TABLE OF CONTENTS

Content Page No.

Tittle Page
Recommendation
To Whom It May Concern
Acknowledgements
Table of Contents
List of Table
List of Figures
Abbreviations

CHAPTER ONE: INTRODUCTION 1-4

1.1 Background of the Study 1
1.2 Objectives of the Study 1
1.2.1 General Objectives 1
1.2.2 Specific Objectives 2
1.3 Methodology 2
1.3.1 Organization Selection 2
1.3.2 Placement 2
1.3.3 Duration of Internship 2
1.4 Activities Performed 3
1.5 Limitation of the Study 4

CHAPTER TWO: INTRODUCTION OF THE BANKING

INDUSTRY 5-10
2.1 Meaning of the Bank 5
2.2 Evolution of Bank 5
2.3 History of Banking in Nepal 6
2.4 Commercial Banks in Nepal 7
 2.4.1 Functions of Commercial Banks 8
2.4.2 Classifications of Banks 9
2.5 Current Banking Scenario of Nepal 9

CHAPTER THREE: BRIEF INTRODUCTION OF THE

ORGANIZATION 11-19
3.1 Introduction 11
3.2 Corporate Vision 11
3.3 Mission 11
3.4 Objectives 12
3.5 Values Statement 12
3.6 Shareholding Composition of NBL 13
3.7 NBL Network Overview 13
3.8 Board of Directors and Management Team 13
3.9 Product and Services Offered by NBL 15
3.9.1 Deposits 16
3.9.2 Loans and Advances 16
3.9.3 Remittance 17
3.9.4 Other Services 17
3.10 SWOT Analysis 18

CHAPTER FOUR: ANALYSIS OF ACTIVITIES

DONE/PROBLEMS SOLVED 20-27
4.1 Reporting on Internship Activities 20
4.2 Management Service Department 20
4.2.1 Publishing Notices 21
4.2.2 Billing 21
4.2.3 Creating Memos About Procurement and Annual Maintenance Contract 22
4.2.4 Insurance of Fixed Assets 22
4.2.5 Renew of Insurance Policies 22
4.2.6 Company Listing for 2073/74 22
4.3 Customer Service Department 23
4.3.1 Attending Customers 23
4.3.2 Account Opening 24
4.3.3 Account Closing 25
4.3.4 Cheque Book Issue 26
4.4 Problems Identified and Solved 26
4.5 Observed Gap 27

CHAPTER FIVE: CONCLUSION AND LESSON LEARNT 28-29

5.1 Conclusion 28
5.2 Lesson Learnt 28

BIBLIOGRAPHY
ANNEXES
 LIST OF TABLE

Table No. Title Page No.

1.1 Duration of Activities Done at Different Departments 3

2.1 Origin of Banks in Nepal 7
2.2 Nepal's Financial System 10
3.1 Shareholding Composition of NBL 13
3.2 NBL Network Overview 13
3.3 Board of Directors 14
3.4 Management Team of NBL 14
 LIST OF FIGURE

Figure No. Title Page No.

Figure No. 2.1 Banking Industry Regulated by NRB 9

Figure No. 2.2 Financial Institution in Nepal 10

Figure No. 3.1 Services Offered by NBL 15

Figure No. 4.1 Organizational Chart of MSD 21

 ABBREVIATIONS

A/C Account
ABBS Any Branch Banking System
AD Anno Domini
AMC Annual Maintenance Contract
ATM Automated Teller Machine
BBA Bachelor of Business Administration
CEO Chief Executive Officer
CSD Customer Service Department
EUR Euro
FOM Faculty of Management
GBP Great Britain Pound
GM General Manager
H.O. Head Office
HTTP Hyper Text Transfer Protocol
IBRD International Bank for Reconstruction and Development
ID Identity
IMF International Monetary Fund
IT Information Technology
ITO International Trade Organization
KBO Kathmandu Banking Office
KYC Know Your Customer
L/C Letter of Credit
MIS Management Information System
MSD Management Service Department
NBL Nepal Bank Limited
NRB Nepal Rastra Bank
SCT SmartChoice Technologies
SMS Short Message Service
TU Tribhuvan University
USA United States of America
USD United States Dollar
WWW World Wide Web
 CHAPTER ONE
INTRODUCTION

1.1 Background of the Study

As a vital requirement of Bachelor of Business Administration (BBA), a four Years
international standard education program, Internship has been proven to be a greatest
way of motivation for the students resulting huge efficiencies and capabilities in them.
This program has the objective of producing a capable middle level manager who is
self motivated and competent enough. It is run by Tribhuvan University from 2002
A.D. under the supervision of the Faculty of Management (FOM). The final year
graduates are mandatorily required to perform internship for eight weeks during their
eighth semester. As a partial fulfillment for the degree, this report focuses on general
overview of mandatory internship as per study curriculum of TU. It is prepared to
cover the relevant information regarding internship program operated at Nepal Bank
Limited, New-Road. It comprises the brief introduction of the banking industry in
Nepal, brief introduction of NBL, activities performed and gaps observed during
intern period.
Further, this can also help to know how actually the things work and in which
manner. One of the major advantage of internship being placed in eighth semester is
that the students can use the theoretical knowledge acquired from the college to
efficiently perform and complete tasks that are assigned to them at the workplace. The
internship gives the insight to the organization and introduce to the cooperate culture
with the organization.

1.2 Objectives of the Study

1.2.1 General Objectives
 To gain practical working experience incorporating academic knowledge.
 To understand real life problems arising in the organizational setting.
 To enhance managerial skills and personal development and refine others.
 To be able to experience a prospective career path.
 To acquire knowledge of banking industry.
 To gain self-confidence in ones abilities.
1.2.2 Specific Objectives
 To gain knowledge of overall banking procedures.
 To understand the levels of activities performed.
 To study the supervision and monitor methods applied in NBL.
 To expand network of Professional relationships and contacts.
 To pursue banking career.
 To develop a solid work ethic and professional demeanor, as well as commitment
to ethical conduct and social responsibility.

1.3 Methodology
1.3.1 Organization Selection
Banks were the first priorities for internship program as the banking industry is
growing so rapidly. Selection of organization for internship program is always a
crucial task. Nepal Bank is the first commercial Bank of Nepal that offers huge range
of services and a best platform to understand the current banking trend.
Through the joint request made by the internee and college, an opportunity to be part
of Nepal Bank Limited was given in Head Office and Kathmandu Banking Office
(KBO).

1.3.2 Placement
During the internship period, the internee was placed in Head Office, Dharmapath,
Kathmandu. As a student of management discipline, initially internee was appointed
to work in Management Service Department (MSD) and duties were to perform
registry tasks like Bills, Insurance and also assisting the staffs at their work. Later,
internee had an opportunity to experience work in the Customer Service Department
(CSD). 8-weeks of internship in Nepal Bank Limited was very interesting and fruitful.

1.3.3 Duration of Internship

To fulfill the criteria of Tribhuvan University of 8 weeks' internship, intenee was
mainly placed in Management Service Department and Customer Service
Department. The duration of internship started from May 30 th to 31st of July. Working
hour started from 10:00 am to 5:00 pm on regular working days and on Friday it
started srom 10:00 am to 1:30 pm. The time spent in each department is presented
below:
 Table 1.1: Duration of Activities Done at Different Departments

Weeks 1 2 3 4 5 6 7 8
Department
Management
Service Department
Customer Service
Department

1.4 Activities Performed Under Different Departments

Various activities were performed in the different departments during the internship
period. Internee was able to acquire working experience in Management Service
Department and Customer Service Department.

Management Service Department:-

 Writing and sending letter to different publications for the publication of the banks
information and advertisements in the Newspaper.
 Prepared billing voucher for the payment to the organization or industries for the
facilities provided by them to NBL as per the order of MSD.
 Prepared Office copy of letters and billing voucher as a bank reference and
dispatching those letters and billing voucher.
 Performed activities regarding the renewal of insurance policy of Banks' Fixed
assets like Vehicles.
 Creating memos about the procurement of fixed assets for the different branches
under Nepal Bank Limited.

Customer Service Department:-

During the internship period, the internee worked for 2 weeks in this department. In
this department, different duties to be performed were:
 Opening of accounts (Personal/Individual and Corporate/Firm)
 Issuance of deposit slips (Saving and Corporate)
 Dealing with the customer queries.
 Enquiry of banking transactions.
 Printing issuing cheques and recorded in chronological order.
1.5 Limitations of the Study
The limitations of the project are as follows:
 Most of the information is collected through personal experience and observation.
 Due to access to limited resources the study might lack in-depth evaluation and
findings.
 The bank's staffs were highly occupied by their work so they had limited time to
interact with internee.
 Lack of adequate time to learn complete and detailed work in just eight weeks.
 The bank's policy in keeping some matters confidential prevented from the
various critical facts and issues.
 CHAPTER TWO
INTRODUCTION TO BANKING INDUSTRY

2.1 Meaning of the Bank

A bank is a financial institution that is established under a certain act to perform
monetary and credit transactions. The bank accepts the deposits in the form of capital
and collateral, formulates, and implements monetary and foreign exchange policy to
maintain price and balance payment stability for a sustainable development of the
country. It provides necessary liquidity for promoting the stability of the financial
sectors. The word 'Bank' was originated from Italian word 'Banco' which means bench
or table used by goldsmith, moneylenders and merchant for keeping, lending and
exchanging of money or coins. The French call it 'Banke' and in German language, it
is known as 'Banck'.
A bank is a financial institution licensed by the government. It is a financial
intermediatery between depositors and Entrepreneurs. An establishment authorized by
government to accept deposits, pay interests, clear cheques, make loans, act as an
intermediatery in financial transactions and provide other financial services to its
customers.

According to the American Law, “Any Kind of institution offering deposit subject to
withdrawal on demand and making loans of a commercial or business nature is a
Bank".

Similarly According to Nepal Rastra Bank Act 2002, "Bank is a financial institution
which provides financial services that may be in the form of accepting deposit,
advancing loan, providing necessary technical advices, dealing over foreign
currencies, remitting funds etc."

2.2 Evolution of Bank

There was a long history in the development of banking system from the barter
system to present banking scenario. The concept of bank existed, when goldsmiths
and the rich people used to give money to the common people against the promise of
safekeeping their valuable items on the presentation of the receipt, the depositors
would get back their gold and valuables of the paying a small amount for safekeeping
and saving.
In the history of origin of banking in the world, “The Bank of Venice”, was the first,
which was originated in Venice of Italy in the year 1157 A.D. In addition, the first
central bank which was established in 1844 A.D. was “The Bank of England”.

Proper Concept and development of bank took place when the World War-2 was
inching towards its end; major countries started thinking of the future word. Huge
concern was started to given to the devastated situation and rebuilding the loss. In
1944, they gathered at Breton Woods in New Hampshire State of the USA. They
made remarkable decision to boost international trade and economic growth and to
monitor and stability in the global economy. The following organizations are the
outcomes of historical greater woods conference of July 1944: IBRD (World Bank),
IMF (International Monetary Fund), and ITO (International Trade Organization).

2.3 History of Banking in Nepal

The history of banking in Nepal is believed to be started from the time of Prime
Minister Ranoddip Singh in 1877 A.D. He introduced many financial and economic
reforms. The Tejaratha Adda was established at that time and its basic purpose was to
provide credit facilities to the general public at a very concessional interest rate. The
Tejaratha Adda disbursed credit to the people on the basis of collateral of gold and
silver.
The real banking started with the establishment of Nepal Bank Limited in 1994 B.S.
which was founded by Juddha Samsher. It was the first bank of Nepal. Its main
function was to provide loans and accept deposits. Later, Nepal Rastra Bank was
established as a central bank in 2013 B.S. The bank was completely government
ownership bank and it also started to issue notes since 2016 B.S. Its function was to
supervise commercial banks and to guide the basic monetary policy of the nation. Its
major aims were to regulate the issue of the paper money; secure countrywide
circulations of Nepalese currency and achieve stability in its exchange rates, mobilize
capital for economic development and for trade and industry growth; develop the
banking system in the country, thereby ensuring the existence of banking facilities;
and maintain the economic interests of the general public.

Rastriya Banijya Bank was established in 1965 A.D. as the second commercial bank
of Nepal. The financial shapes for these two commercial banks have a tremendous
impact on the economy. That is the reason why these banks still exist in spite of their
bad position.

As the agriculture is the basic occupation of major Nepalese, the development of this
sector plays in the prime role in the economy. So, separate Agricultural Development
Bank was established in 1968 A.D.

Table 2.1: Origin of Banks in Nepal

14th Century Introduction of "Tankadhari"

1882 A.D. Establishment of "Tejarath Adda"

1937 A.D. Establishment of Nepal Bank Limited

1956 A.D. Establishment of Nepal Rastra Bank

1956 A.D. Establishment of Industrial Development Center

1956 A.D. Conversion of Industrial Development Center into Nepal Industrial

Development Corporation

1956 A.D. Establishment of Rastria Banijya Bank

Source: www.bankinginnepal.blogspot.com

2.4 Commercial Banks in Nepal

Commercial Banks are so named because they specialize in loans to commercial and
industrial businesses. Commercial Banks are owned by private investors, called
stockholders, or by companies called bank holding companies. Commercial Banks are
"for profit" organizations. The profits either can be paid out to bank stockholders or to
the holding company in the form of dividends, or the profits can be retained to build
capital "net worth".
Their historical specialties have been commercial lending to businesses on the asset
side and checking accounts for businesses and individuals in the liability side.
However, commercial banks also make consumer loans for automobiles and other
consumer goods as well as real estate (mortgage) loans for both consumers and
businesses.

It mostly deals with deposits and loans from corporations or large businesses. Its
primary assets are loans and bonds whereas its liabilities are deposits. Though
commercial banks were established with the concept of supplying short-term credit
and working capital needs of the industries, they started to provide long term loan for
up to 10 years by the provision made in Commercial Bank Act 1974.

Commercial Bank Act 2031 B.S. defines," A Commercial Bank is that bank which
exchanges money, accepts deposits, grants loan and performs banking function."

2.4.1 Functions of Commercial Banks

The functions of Commercial Banks are divided into two categories:

A. Primary Functions

The primary functions of Commercial Banks include:

Granting Loans and Advances
 Overdraft
 Cash credit
 Loans
 Discounting of bills
Accepting Deposits
 Saving deposits
 Fixed deposits
 Current deposits
 Recurring deposits
B. Secondary Functions Including Agency Functions
 Providing customers with facilities of foreign exchange.
  Transferring money from one place to another and from one branch to
another branch of the bank
 Standing guarantee on behalf of its customers, for making payments for
purchase of goods, machinery, vehicles, etc.

2.4.2 Classification of Banks

When a single bank performs multiple tasks, the efficiency and the effectiveness of
work becomes weak. Hence different banks are established for different purpose.
Basically, the bankers have been categorized in various types in accordance with the
banks ultimate purpose, customer's demands and choices and overall economic
development of nation. Broadly, banks can be classified into following types:

Figure No:- 2.1: Banking Industry Regulated by NRB

Nepal Rastra Bank

Commercial Development Finance Micro Credit

Banks Banks Companies Institutions
Class A Class B Class C Class D
Category Category Category Category

2.5 Current Banking Scenario of Nepal

Financial Institutions are rapidly growing in te present scenario with greater scope and
greater opportunities for Nepalese economy to grow. Nepal officially obtained the
WTO membership on 23rd April, 2004 as 147th member. It was highly anticipated that
Nepal's membership in such a rule-based trading regime would integrate national
economy to the global mainstream and expand trade and market access opportunities,
thereby is essential for expanding its trade opportunities, facilitating competition and
absorbing knowledge. The attempt of obtaining the WTO membership due to Indo-
Nepal trade dispute of 1989 and a passive observant period of the decade of 90s had
materialized with high expectations of gaining a new momentum in Nepalese
economy.

Table No 2.2: Nepal's Financial System

S.No. List of Financial Institutions in Nepal Total No.
1 Central Bank 1
2 Commercial Banks 28
3 Development Banks 67
4 Finance Companies 42
5 Micro Credit Development Banks 42
Source: - en.wikipedia.org , List of Banks in Nepal

Figure No 2.2: Financial Institution in Nepal

Central Bank
Commercial Banks
Development Banks
Finance Companies
Micro Credit Development
Banks
 CHAPTER THREE
INTRODUCTION OF NEPAL BANK LIMITED

3.1 Introduction
Nepal Bank Limited, the first bank of Nepal was established in November 15, 1937
A.D. (1994, Kartik 30). It was formed under the principle of Joint venture (Joint
venture between government and general public). NBL's authorized capital was Rs.
10 million & issued capital of Rs. 2.5 million of which paid-up capital was Rs. 842
thousand with 10 shareholders. Nepal Bank Limited is the first commercial bank in
Nepal. It was established before 78 years ago which marked the beginning of an era of
formal banking in Nepal. The bank has been providing banking service through its
branch offices in different geographical locations of the country. The Bank is also one
of the largest in Nepal with 126 branches.

The corporate office of Nepal Bank Limited is situated at Dharmapath, Newroad,

Kathmandu. The Bank aims to render banking services to the different sectors of
customers like industries, traders, property sectors, deprived sector, large business
persons, small entrepreneurs and weaker sectors of the society and everyone who
needs the banking services.

3.2 Corporate Vision

"Pioneer Bank with complete banking solution"

3.3 Mission
Nepal Bank Limited seeks to provide an environment within which the bank can bring
unique financial value and services to all customers. It will be a sound institution
where depositors continue to have faith in the security of their funds and receive
reasonable returns; borrowers are assured of appropriate credit facilities at reasonable
prices; other service- seekers receive prompt and attentive service at reasonable cost;
employees are paid adequate compensation with professional career growth
opportunities and stockholders receive satisfactory return for their investment. NBL
has new mission statement:

Network for inclusion: Use bank's network to increase its reach all over the country
from urban areas to rural areas and help in improving the lifestyle of rural population
and in turn become the bank of choice of corporate, medium businesses and rural
market.
Enhancing the value: To employees, shareholders, government and customers.
World class banking services: Provide world class banking services by achieving
excellence in customer service and adopting high level technology standards.

3.4 Objectives
Nepal Bank Limited has the following objectives:

 Focus on building the positive net worth and meeting minimum capital
requirement over the coming five years.
 Focus on increasing the customer base and market share.
 Maximize the potential/efficiency of bank's staff.
 Focus on minimizing the risk associated with the business.
 Focus on providing the world class business solutions.
 Focus on increasing the sustainable profit.

3.5 Values Statement

At Nepal Bank Limited, we believe that our banking should be based on "SPIRIT".

 Segmented business approach For risk management and enhancement of

efficiency.
 Partnership With all stakeholders including the Government, employees,
shareholders and customer.
 Innovation Of business areas and processes for providing Advanced banking
services, and enhance competitiveness.
 Responsiveness Responding to the changing need of the
market/society/business on timely basis.
  Integrity Uphold trustworthiness and business ethics in the business process.
 Total banking solutions To cater the need of all sections of society.
3.6 Shareholding Composition of NBL
Nepal Bank Limited was established under the joint venture between Government and
general public. The majority of its shares are held by Government. The table below
shows the Shareholding composition of Nepal Bank Limited:

Table No 3.1: Shareholding Composition of NBL

S.N Ownership Percent (%)
1 Government of Nepal 62.21
2 General Public 37.79
Total 100
Source: http://www/nepalbank.com.np/

3.7 NBL Network Overview

The table below shows the number of different branches of Nepal Bank Limited
located all over the country:

Table No 3.2: NBL Network Overview

Region Wise Branches No of Branches
Kathmandu Region 29
Biratnagar Region 33
Birgunj Region 24
Pokhara Region 22
Nepalgunj Region 18
Total no of Branches* 126
No. of computerized branches: 126
Branches under single computer network: 126

Source: http://www/nepalbank.com.np/

3.8 Board of Directors and Management Team

The board of Directors of Nepal Bank Limited is chaired by Mr. Janardan Sharma
Acharya, representative from Ministry of Finance, 3 members are appointed by
Ministry of Finance, 1 member is professional director appointed by Ministry of
Finance, and 2 members are elected from the public shareholders.

Table No. 3.3: Board of Directors

Name Office Email
Mr. Janardan Sharma Acharya 424799 [email protected]
Chairman 9 p
Mr. Laxman Aryal 424799 [email protected]
Member 9
Mr. Dambar Bahadur Bhandari 424799 [email protected]
Member 9 p
Mr. Surendra Bahadur singh 424799 [email protected]
Member 9
Mr. Nischal Pradhan 424799 [email protected]
Member 9
Mr. Umakant Silwal 424799 [email protected]
Member 9
Mr. Deependra Bikram Thapa 424799 [email protected]
Member 9
Source: http://www.nepalbank.com.np/

Management team is at Nepal Bank Limited is composed of 20 members. Mr.

Devendra Pratap Shah represents the Chief Executive Officer and Mr. Durga Raj
Regmi is Deputy Chief Executive Officer.

Table No. 3.4: Management Team of NBL

Name Position Email
Mr. Devendra Pratap Shah CEO [email protected]
Mr. Durga Raj Regmi Deputy CEO [email protected]
Mr. Raju Nath Khanal Deputy GM [email protected]
Mr. Urbidra Shrestha Deputy GM
Mr. Bechan Giri Deputy GM [email protected]
Mr. Vijaya Gautam Deputy GM [email protected]
Mr. Arun Kumar Chief Manager [email protected]
Bajracharya p
Mr. Shyam Sundar Kandel,
Chief Manager [email protected]
Mr.Krishna Bdr Adhikari, Chief Manager [email protected]
p
Mr. Mahabir Prasad Risal, Chief Manager [email protected]
Mr. Arjun Lal Joshi, Chief Manager [email protected]
Mr. Dilli Ram Sharma, Chief Manager [email protected]
Mr. Shiva Ram Timilsina, Chief Manager [email protected]
Ms. Samata Pant, Chief Manager [email protected]
Mr. Laxman Paudel, Chief Manager [email protected]
Mr. Tek Bahadur Thapa, Chief Manager [email protected]
Mr. Chiranjibi Neupane, Chief Manager [email protected]
.np
Mr. Bhola Raj Joshi, Chief Manager [email protected]
Mr. Bishwo Raj Baral, Chief Manager [email protected]
Mr. Suresh Kumar Karna Chief IT/MIS [email protected]
Department
Source: http://www.nepalbank.com.np/

3.9 Product and Services Offered by NBL

Figure No 3.1: Services Offered by NBL

3.9.1 Deposits
Like any other bank, Nepal Bank accepts deposit from individuals, business
organizations and other institutions. It offers the following product and services to its
customers:
Current Account: This account is non-interest bearing and it comes with a cheque-
book, it is just needed to write a cheque whenever and wherever it is convenient. NBL
has tailor made current account which rightly meets the needs of today's fast growing
business enterprises with advanced technological features. The customer can access to
their account at all branch of NBL.

Saving Account: NBL bank offers Normal Saving account facility to cater the saving
habits of individuals and households. It can be opened with a minimum balance of
NRs. 500 and provides 1.25% interest. In this type of account, depositor can withdraw
the deposit without any prior information.

Fixed Account: Fixed account is a type of interest bearing account in which customer
can't make any withdrawals on demand until and unless it gets matured. It has a fixed
maturity period and maturity value. This type of deposit offers relatively higher rate
of interest to the customers.

Other Account: There are various other types of account available in the NBL to
attract the new customer like Women Special Saving, Yuba Bachat Khata. These type
of account offers high level of interest rate as compared to other types of account.

3.9.2 Loans and Advances

Corporate Loan: This type of loan is aimed at meeting the financial ambitions of
small and medium businesses. It is distributed to meet the working capital as well as
fixed term requirement of the applicant.

Consumer Loan: It is a type of loan which is provided by the NBL to the general
people against collateral.
 Personal Loan is a flexible loan disbursed for the borrower's social, personal or
business purposes in order to fulfill all personal and business financial
requirements.
  Auto Loan is the loan provided to fiancé the purchase of vehicles used for both
customer and commercial purposes. It has various provisions to provide this
type of loan.
 Home Loan of NBL provides Ghar Karja to individuals for the purpose of
purchasing or constructing homes. The loan can be both for short and long term
as per the requirement of the customer.

3.9.3 Remittance
Remittance is the service that helps the customers to transfer the funds from one place
to another is a very easy and fast way with very minimal cost. Some of the remittance
services provided by NBL are Web Remit, NBL Drafts, and NBL Fax Service etc.

3.9.4 Other Services

 Safe Deposit Vaults: In this service, the bank stores ornament and other
valuable to its locker box very safely. For storing those valuable things, it
charges a fixed amount semi-annually. Against that the bank provides the
security to these goods.
 Trade Finance facilitates the trading activities generally with the inter-country
transaction the bank helps the concerned party issuing the L/C. The Bank offers
to finance various export requirements such as pre-shipment loan and post-
shipment loan, documents negotiation/documentary bill purchase, etc.
 SMS Banking this is one of the high-tech as well as exiting services provided
by the Nepal Bank Limited. Under this service, the customer of Nepal Bank
Limited can check their balance and other information from their mobile phone
by sending SMS to bank.
 Any Branch Banking Service of bank provides the service to check the balance
and withdraw the money from any branch of the bank over the country. Even
they can check their balance amount from any branch.
 Internet Banking This is another type of service added to its valuable customer
so that they can check their balance, transfer fund as well as many more services
through the internet network.
 Debit Card Updating with the technology and providing existing features os
one of the features of NBL. To continue this culture, it provides the debit cards
 to its customers by associated with the SCT network. The people who have
account in NBL at any branch can withdraw money from any ATM locations.

3.10 SWOT Analysis for NBL

SWOT analysis is an instrument framework in value based management and strategy
formulation to identify the strength, weakness, opportunities and threats for a
particular company to exist and retains itself in the environment. The external factors
comprise of uncontrollable factors that are strategic for a specific region. Internal
factors are controllable in nature.
A. Analysis of Internal Environment

Strength:
 Security as Government organization
 Strong management
 Service priority
 Experienced Top management
 Reliable service

Weakness:

 Limited manpower
 Time management
 Lack of commitment
 Lack of sincerity in every level
 Notification problem
 Lack of adoption with new technology

B. Analysis of External Environment

Opportunity:
 Service of rural area
 Global banking
 Advance technology
 Recruitment of banking experts
 Decentralize service in different branches
Threats:
 Political instability
 High competition
 Changing environment
 Changing customers' preferences, attitude and lifestyle
 CHAPTER FOUR

ANALYSIS OF ACTIVITIES DONE/PROBLEMS

SOLVED

4.1 Reporting on Internship Activities

As an intern for the period of 8 months there was the huge gain of various knowledge
and practical ideas. The internee started intern in NBL from Management Service
Department where he familiarized himself with the new environment and the
activities going within the organization. The internee was placed there for six weeks,
which helped him a lot to know about the banking terms and procedures. After six
weeks passed in Management Service Department, the internee was placed to
Customer Service Department for two weeks.

During internship period, the internee presented himself with full zeal, learning
attitude, confident and well disciplined in this institution. With the great supervision
of each department heads, the internee was able to learn the major activities
performed in the Nepal's first commercial bank that serves more than half of the
population.

The activities thus performed in each department are discussed below.

4.2 Management Service Department (MSD)

It is a department which provides management service to other functional
departments, center and units of NBL through efficient and effective management
operations. MSD is responsible for service carrying out advertising, purchasing
equipments and vehicles, insuring buildings and vehicles, billing, publishing news
and notices in newspaper, etc. for the appropriate operation of every department and
all the branches. Management Service Department is categorized into following units:
 Figure No 4.1: Organizational Chart of MSD

Management Service Department (MSD)

Administration Unit Procurement Unit and StoreTechnical

Assets and Support
Management Unit Unit (Civil and Electrical)

This department is responsible for all those functions that are related to overall
general management of NBL and arrangement services to other departments, centers
and units. The different activities done in MSD throughout the internship period are:

4.2.1. Publishing Notices

At first MSD receives letter of request to publish in the newspaper attached with the
notice from different departments and branches. Internee prepared letter of request
based on letter received to the publication house for the publication of same notice.
Then prepared office copy of the letter and dispatched the letter.

4.2.2. Billing
Management Service Department needs to pass bills received from many
organizations. Different publication houses were sending bills for the publication of
advertisement, news and notices of different departments and branches as well.
Internee first prepared a letter for account department specifying which branch will
pay the charges and again prepare the office copy of the letter and bills. After that, bill
amount and other details were recorded in the ledger and those letters were dispatched
for the payment of such costs by the account department.
4.2.3. Creating Memos About Procurement and Annual Maintenance Contract
MSD is of course responsible for the procurement of fixed assets and equipments.
Procurement unit first receives demand letter for the asset and equipment from
different departments and branches. After that, this unit sends letters to all listed
companies for providing quotation for the required product. Sometimes Annual
Maintenance Contract (AMC) of equipments and machines is also done by different
departments. Internee was responsible for creating memos about the procurement of
fixed assets and AMC of machines and equipments.

4.2.4. Insurance of Fixed Assets

Fixed assets like building, vehicles and machines are insured through MSD. Internee
helped his supervisor for the insurance of new vehicles. At first administration unit of
MSD needs to write the letter to insurance company for the insurance policy of new
asset. Then this unit prepares office copy of the letter and dispatches the letter. Then
insurance company sends insurance policy directly to account department for the
payment. In this way fixed assets are insured.

4.2.5. Renew of Insurance Policies

Internee also helped his supervisor for the renewal of insurance policies. Immediately
after the policy is expired, Administration unit needs to prepare letter to the insurance
company for the renewal of expired policy. After that company provides the bank
with new policy with new insurance charges. MSD again prepares letter to account
department for the payment of insurance premium with photocopy of policy and
keeps original policy as office copy. In this way, insurance policy of fixed assets is
renewed.

4.2.6. Company Listing for 2073/74

Management Service Department is also responsible to perform activities related to
company listing for each fiscal year. Internee performed most of the activities related
to the company listing for the fiscal year 2073/2074. At first, Administration Unit
published notice in newspaper to different companies for the submission of
application in specific topic with voucher of charge paid for the company listing. Each
topic included different types of products or services which were categorized
homogeneously.
Internee was responsible for the receiving of application forms form different
companies and then application forms were grouped based on their topic and filed
them separately. Ledger was also prepared based on filing. Name of companies with
details were noted in ledger separately. Again based on above procedure, Internee
prepared excel sheet which included complete information of companies and listed in
different topic based on their application form. After that, superior created memo of
the company listing for the fiscal year 2073/2074.

4.3 Customer Service Department (CSD)

Customer service is the front desk of any organization. It is the place where customers
make first contact with the bank. The image and the reputation of bank depend upon
effective functioning of this department. It includes responding to customers'
questions and complains in a thorough and timely manner and interacting with
customers through face-to-face meetings, telephone, mail, fax and email. It is very
important to know that a highly satisfied customer stays longer, buys more as the
organization introduces new product, pays less attention to competing brands and is
less sensitive to price. Having a significant number of this kind of customers is only
possible through the efficient functioning of customer service department of any
organization.
This department is responsible for carrying various activities starting from greeting a
customer to solving his/her query and deriving the satisfaction. The different activities
done in CSD throughout the internship period are:

4.3.1 Attending Customer

Whenever customers visit to customer service desk, internee attended them with
courtesy and trundled their request along with asking them about their purpose to visit
and help them to fulfill them. Many customers want to know about bank's types of
deposits, their terms and conditions and respective interests. Whenever such customer
visits, internee told them about available deposit types in the bank with their
respective interest rates.
4.3.2 Account Opening
Account opening is the essential step in deposit collection and is one of the major role
played in CSD. It is one of the crucial functions of the commercial bank. The
procedure for opening an account involves:

 Filling up the account opening form that contains the accountholder's name,
permanent and temporary address, occupation, contact number and signature of
accountholder and the type of account preferred to open.
 Again filling up the Know Your Customer (KYC) form which is attached with
account opening form.
 Two passport size recent photo of account holder is required to be attached.
 One copy of citizenship certificate should be verified with original documents.
Other important documents may include either of the following:
- Electricity/rent/telephone Bills paid
- Photocopy of passport
- Photocopy of Voters' ID
- Photocopy of Driving license
- Photocopy of student' Identity Card
 The customers should also include the name and details of nominee.
 Customer's data are stored in the computer system after verification by operation-
in-charge and account number is given as per system register sequence.
 The opening account fee is Rs. 500 only. The bank opens new account in two
different ways:
Personal Account
Any individual who is capable to enter into the contract can open an account in the
bank. S/he can open the account in all convertible currencies directed by NRB. Two
more basic requirement of opening a personal account:
 Personal Identification (Citizenship Certificate and 2 copies of photograph)
 Nominee declaration.

Corporate Account
Any registered firms, organizations and corporations can open corporate account in
the bank for smooth business transactions. Corporate account can be opened in all the
convertible currencies directed by NRB. The firms can open the account by providing
the prescribed documents. All the original documents should be presented for
verification. The basic requirements of opening a corporate account are:
A) For Proprietorship Firm
 Copy of renewed Registration Certificate
 Income Tax Registration/PAN certificate
 Copy of identification document/photos of proprietor.
 Citizenship certificate
B) For Partnership Firm
 Firm Registration Certificate.
 Income Tax Registration/PAN certificate.
 Partnership Agreement/Deed.
 Resolution of partners to open the account/mode of its operation.
 Identification documents/photograph of partners.
 Authorization letter if anyone of the partners is to operate the account.

4.3.3 Account Closing

Not just opening of the account has procedures but also closing requires the certain
procedures to be followed. All requests for the closure of accounts must be made in
writing form and duly signed by the accountholder. The bank charges Rs. 200 for the
process.
Procedure of Account Closing
 The customer willing to close the account should fill up the account closing form.
 Before closing any accounts the bank's staff verifies the signature, checks all the
liabilities of the customer in the bank.
 For the closure of individual account and sole proprietorship account, the account
holder should visit bank himself/herself. In case of joint account, all the
accountholders should be present.
 Settlement of the bank balance after deducting all the required charges. Ensure
that no balance is left in the customer's account.
 Close the account in the banking system.
 The account closing form with all the documents are to be filed in the account
closing file.
4.3.4 Cheque Book Issue
Cheque book is issued for the new account and for the existing account holder on the
request by submitting their cheque requisition.
Process for Cheque Book Issue
 For new account, form of request for new cheque (First Time Issue) needs to be
filled by customer.
 For existing account, customer needs to fill up the demand slip which is inside the
cheque book.
 Request for new cheque form and demand slip of cheque needs to be verified by
the operation-in-charge and cheque is printed through computer system.
 The account holder or agent (whose name is in requisition slip) should be present
while receiving the cheque book.
 Once cheque book is becomes ready, again it needs to be verified by the
operation-in-charge and make entry in the cheque book register which includes
details such as (date, a/c name, a/c number, cheque numbers, receiver's signature
and receiving date).

4.4 Problems Identified and Solved

During the internship period of eight weeks, the internee landed with various
situations with routine as well as complex problems. There were various problematic
situations and the solution to the problems which are discussed below:
 There were too many pending works which were needed to be accomplished with
in a given time period.
 At the time of company listing, some company did not fill form provided from the
bank and some company did not submitted complete documents. Internee called
them and requested them for completion of form and documents.
 During the final dateline of company listing, MSD Administration Unit was
overcrowded with different company representatives. The internee effectively
communicated and gave her best to solve every problems arising in the situations.
 In the absence of any staff of the department, the responsibility was on the head of
internee. The queries and tasks were thoroughly solved creating the satisfaction to
the customers.
 Interruption by the failure of power supply while performing task in the computer
however it was managed by keeping uninterrupted power supply.

4.5 Observed/Felt Gap

Knowledge gained from the academic courses seems to be different in practice to
some extent. Concept of the theory is essential in the workplace. Some of the gaps
observed are as follows:
 Socio-cultural factors, interpersonal relationship seems to be simple in theory but
in the practice, maintaining interpersonal relationship and mixing with the society
and professionals is a crucial task.
 The internee was able to gain some skills regarding the working environment in
the organizations which was not possible to learn in classroom.
 In theoretical knowledge, the internee learnt that the companies like banks were
free from favoritism and nepotism but this thing prevails in the company. The
customers are given priorities as per their personal relations and authorities.
 The real work of a hierarchy inside an organization was not properly known in the
classroom.
 The knowledge and formula studied in classroom were not exactly applied in the
bank.
 The managerial practices seemed quite different from what were taught in the
classroom.

These eight weeks long internship on NBL helped the internee to satisfy theoretical
queries by facing them on the spot. Various skills are acknowledged to internee
during his performance in MSD and CSD of NBL which he was not able to achieve
through theoretical studies.
 CHAPTER FIVE
CONCLUSION AND LESSON LEARNT

5.1 Conclusion
Internship is always a great opportunity for the students to get the field experience and
bridge the gap between the theoretical and practical knowledge. It was a great
exposure to work as an Internee at Nepal Bank Limited which brought the practical
knowledge that internee lacked and gained some experience on banking activities.
The internship duration for NBL lasted for eight weeks. This tenure of internship at
NBL gave an opportunity to learn more about the banking sector and scrutinize its
various aspects.

The internship helped to gain in-depth knowledge about working environment,

interpersonal and communication skills, organizational culture and behavior,
professional qualities and team building sprit as well as working principles of
commercial banks. Besides, observing and learning the various activities in different
department gave the opportunity to perform various tasks. During that period, internee
found that customers are the key focus and greatest asset of the bank. Thus, the bank
always focused to maintain long term relationship with the customer and retain them
by providing better services. Proper coordination and cooperation among the entire
department is needed for growth of organization.
Within the short period of time, Internee was able to cope up with the various
situations arising in the environment. Internee was placed in two different
departments which helped to know the various activities performed by the various
departments. This internship program has alsp helped to know and understand the
norms, culture and responsibility in an organization along with finding the
practicalities in course contents.

5.2 Lesson Learnt

This internship has been very fruitful, exciting and equally challenging experience to
study, analyze and understand the functioning of the organization. However, the two
months duration was not sufficient enough to understand the accounting system of
bank as a whole. There are numbers of lesson learnt during the internship at the bank.
The internee is happy to express in the word form, which are bulleted below:

 Learned that the customers are the main drivers of any financial institutions, they
should be pleased by offering quality service which basically depends on the
quick service and pleasing personality for the staffs.
 The work of an employee is associated and interrelated with another. So
cooperation and coordination is the most for all employees.
 Besides learning about the organization itself, the internship also helped in
learning the behavioral issues that are most important in the organization.
 Learnt about various products of bank and its working procedure.
 Learnt to communicate and deal with the customers belonging to different classes.
 Learnt about time management skills in organization.
 Learnt the working procedure of management service department and customer
service department.
 Learnt the problem solving tactics and skill of convincing other people.
 Learnt to use various equipments like photocopy machine, scanner, printer,
cheque writer, etc.
 BIBLIOGRAPHY

Books
Manandhar, K.D. & Shiva Bhakta Pokhrel (2009). Marketing Financial Services.
Kathmandu: Ashmita Books Publishers and Distributors

Shrestha, M.K. & Dipak Bahadur Bhandari (2009), Financial Institutions and
Markets, Kathmandu: Ashmita Books Publishers and Distrubutors

Thapa, Kiran & Bharat Parajuli. (2010). Financial Institutions and Markets.
Kathmandu: Januka Publication

Annual Reports
Annual Report (2071/72), Kathmandu: Nepal Bank Limited

Websites
http://www.nepalbank.com.np/

http://www.nrb.org.np/

http://www.answer.com/

https://en.wikipedia.org/
 ANNEXES

Annex 1: List of Commercial Banks in Nepal

S.N. Commercial Banks Operation Date Head Office

(A.D.)
1 Nepal Bank Limited 1937/11/15 Kathmandu
2 RastriyaBanijya Bank Ltd. 1966/06/23 Kathmandu
3 Agriculture Development Bank Nepal 1968/01/02 Kathmandu
Ltd.
4 Nabil Bank Limited 1984/07/12 Kathmansu
5 Nepal Investment Bank Ltd. 1986/01/27 Kathmandu
6 Standard Chartered Bank Nepal 1987/01/30 Kathmandu
7 Himalayan Bank Ltd. 1993/01/18 Kathmandu
8 Nepal SBI Bank Ltd. 1993/07/07 Kathmandu
9 Nepal Bangladesh Bank Ltd. 1994/06/05 Kathmandu
10 Everest Bank Ltd. 1994/10/18 Kathmandu
11 Bank of Kathmandu Ltd. 1995/03/12 Kathmandu
12 Nepal Credit and Commerce Bank Ltd. 1996/10/14 Rupandehi
13 Kumari Bank Ltd. 2001/04/03 Kathmandu
14 Laxmi Bank Ltd. 2002/04/03 Parsa
15 Sidhartha Bank Ltd. 2002/12/24 Kathmandu
16 Global IME Bank Ltd. 2007/01/02 Parsa
17 Citizens Bank International Ltd. 2007/06/21 Kathmandu
18 Prime Commercial Bank Ltd. 2007/09/24 Kathmandu
19 Sunrise Bank Ltd. 2007/10/12 Kathmandu
20 NMB Bank Ltd. 2008/06/05 Kathmandu
21 NIC Asia Bank Ltd. 2007/10/12 Kathmandu
22 Machapuchchhre Bank Ltd. 2000/10/03 Kaski
23 Mega Bank Ltd. 2010/07/23 Kathmandu
24 Civil Bank Ltd 2010/06/15 Kathmandu
25 Century Bank Limited 2011/3/10 Kathmandu
26 Sanima Bank Limited 2004/12/06 Kathmandu
27 Janata Bank Nepal Ltd. 2010/04/05 Kathmandu
 28 Prabhu Bank Ltd. 1984/07/16 Kathmandu
Source: en.wikipedia.org/wiki/list_of_banks_in_Nepal

Annex 2: Deposit Annual Interest Rates in NBL

Deposits Annual Interest Rate

Previous
S.No. Deposit Type Duration Rate**
Rate
1 Saving Deposit (Normal Saving/Pension 1.25% 1.50%
Payment Saving)
(interest calculated on daily closing
balance)
2. NBL Diamond Saving 2.25% 2.50%
3. Women Special Saving 2.25% 2.50%
4. Yuva Bachat Khata 2.25% 2.50%
5. Senior Citizens Special Saving 2.50% 2.75%
6. Professional's Saving 2.50% 2.75%
7. NBL Special Saving 2.75% 3.00%
8. Staff Saving / Staff Pension Saving 2.50% 2.75%
9. Staff Salary Account (Non NBL Staff) 1.25%
FCY Saving Deposit
1. USD 0.50% 0.70%
2. EUR 0.40% 0.50%
3. GBP 0.40% 0.50%
Fixed Deposit

3 Month 2.75% 3.00%

6 Month 3.25% 3.50%
1 Year 4.00% 4.25%
2 year and 4.25% 4.50%
above up to 5
year
Source: http://www.nepalbank.com.np/

Annex 3: Consumer Loan Interest Rate in NBL

Consumer Loan
Auto Loan
Private vehicle 5 years term 9.00%
Private vehicle 7 years term 9.50%
Private vehicle business use 5 years term 10.00%
Commercial vehicle 3-5 years term 10.00%
Private vehicle used 4 years term 10.00%
Nepalaxmi Auto Loan 8.50%
NBL Professional Auto Loan 7.00%
Home Loan
5 years 8.50%
10 years 9.50%
15 years and above 10.00%
NepaLaxmi Home Loan
Max 10 Years term 8.50%
NBL Professional Home Loan 7.00%
Personal Term Loan
5 years 9.25% to 10.00% 9.25% to 10.75%
10 years 9.50% to 10.25% 9.50% to 11.00%
15 years 10.25% to 11.25% 10.25% to 12.00%
NBL Flexi Loan 8.50% to 9.00% 8.50% to 9.00%
Personal Overdraft
Professional Overdraft 10.00%
Others 10.50%
NBL Professional Loan 9.75%
NBL Education Loan
5 years 9.50%
10 years 10.00%
Margin Lending
Up to 10 Million 8.75% 9.25%
10 Million above up to 50 Million 8.50% 8.75%
50 Million above 8.25% 8.50%
Source: http://www.nepalbank.com.np/
Annex 4: Organizational Structure of Nepal Bank Limited

Source: http://www.nepalbank.com.np/