AN INTERNSHIP REPORT

Based on Customer Service Department of NIC Asia Bank Limited

(Duration: 16th February to 05th April 2023)
Tansen, Palpa

by

Arun Khanal

Exam Roll No. 21746/18

TU Reg. No. 7-2-49-165-2018

Submitted to

Faculty of Management, Tribhuvan University

In the partial fulfilment of the requirement for the degree of

Bachelor of Business Administration

at

Tribhuvan Multiple Campus

Tansen, Palpa

August 2023
2
 AN INTERNSHIP REPORT

Based on Customer Service Department of NIC Asia Bank Limited

(Duration: 16th February to 05th April 2023)
Tansen, Palpa

by

Arun Khanal

Exam Roll No. 21746/18

TU Reg. No. 7-2-49-165-2018

Submitted to

Faculty of Management, Tribhuvan University

In the partial fulfilment of the requirement for the degree of

Bachelor of Business Administration

at

Tribhuvan Multiple Campus

Tansen, Palpa

August 2023

3
 STUDENT'S DECLARATION

I hereby declare that my internship reported submitted to the faculty of Management,

Tribhuvan University, is an original work under the supervision of Mahesh Bhattarai,
Faculty of Management at Tribhuvan Multiple Campus, in the partial fulfilment of the
requirements for the award of the degree of Bachelor of Business Administration
(BBA). This internship report has not been submitted to any other university or
institutions for the award of any degree.

………………………….

Arun Khanal
August, 2023

ii
INTERNSHIP CERTIFICATE

iii
 APPROVAL SHEET
We certify that the Internship Report

Submitted by:

ARUN KHANAL

is an academic work submitted in partial fulfillment of the requirements for the degree
of Bachelor of Business Administrative (BBA), Tribhuvan University under my
guidance and supervision. To the best of our knowledge, the information presented in
the internship report has not been submitted earlier and the intern successfully
defended the report at Tribhuvan Multiple Campus, Tansen Palpa.

………………… ………………… ……………………..

Mahesh Bhattarai Keshav Ghimire Tanka Prasad Bhattarai
Supervisor Program Director Campus Chief

iv
 ACKNOWLEDGMENTS

The entire effort of this report has been made simply to give the complete shape to the
partial fulfillment of the BBA 8 th semester program of Tribhuvan University entitled
“An Internship Report On Customer Service Department Of NIC Asia Bank Limited,
Tansen Branch”. I have ardor a great deal to embellish the subject matter in a most
simple and easily understandable form.

Banks play vital role in any countries‟ economic boom so, I feel lucky for having a
chance of being involved in such a prestigious and beneficial privilege. Henceforth, I
like to show my huge gratitude to Tribhuvan Multiple campus and Tribhuvan
University as well for providing the students such a platform which helps them to
have insight of various aspects of banking sector.

I would like to extend my thankfulness to, Branch manager Hari Krishna Sharma,
Operational Head, Anuja Sainju , assistant and other staff of NIC Asia Bank
Limited for the support and co-operation for making my internship period a
memorable one and a big achievement in my career.

I am greatly indebted to our Coordinator Keshav Ghimire for his support and
guidance towards completion of report and heartily thankful to instructor or
supervisor Mahesh Bhattarai for his supervision to bring out this project and for
providing necessary support and guidance and also to all of my friends who helped
me in the final completion of this report.

Arun Khanal

August, 2023

v
 TABLE OF CONTENT

Contents
TITLE
PAGE…………………………………………………………………………...i

STUDENT'S DECLARATION.....................................................................................ii

INTERNSHIP CERTIFICATE.....................................................................................iii

APPROVAL SHEET....................................................................................................iv

ACKNOWLEDGMENTS..............................................................................................v

TABLE OF CONTENT................................................................................................vi

LIST OF TABLE..........................................................................................................ix

LIST OF FIGURES........................................................................................................x

LIST OF ABBREVIATIONS.......................................................................................xi

CHAPTER I...................................................................................................................1

INTRODUCTION..........................................................................................................1

1.1 Background of the Study......................................................................................1

1.2 Objective of the Report........................................................................................1

1.3 Methodology........................................................................................................2

1.3.1 Organization selection...................................................................................2

1.3.2 Placement......................................................................................................2

1.3.3 Duration of internship...................................................................................3

1.3.4 Activities performed in the bank customer service department....................3

1.3.5 Sources of data..............................................................................................3

1.4 Limitation of the Study........................................................................................4

CHAPTER II..................................................................................................................5

INTRODUCTION TO BANKING INDUSTRY...........................................................5

2.1 Meaning of Bank..................................................................................................5

2.2 Meaning of Commercial Bank.............................................................................6

vi
 2.3 Functions of commercial Bank............................................................................6

2.4 Commercial Bank in Nepal..................................................................................7

CHAPTER III.................................................................................................................9

INTRODUCTION OF NIC ASIA BANK.....................................................................9

3.1 Introduction of NIC ASIA BANK.......................................................................9

3.1.1. Joint Venture................................................................................................9

3.1.2 Organization Chart........................................................................................9

3.1.3 NIC ASIA Network.....................................................................................10

3.1.4 Corporate Vision.........................................................................................11

3.1.5 Corporate Mission.......................................................................................11

3.1.6 Awards........................................................................................................11

3.1.7 Pioneering Achievements............................................................................12

3.1.8 Objectives of the NIC ASIA BANK...........................................................12

3.1.9 Board of Directors of NIC ASIA BANK....................................................13

3.2 Product /services offered by NIC ASIA.............................................................13

3.3 SWOT Analysis of NIC ASIA’s Bank...............................................................16

CHAPTER IV..............................................................................................................18

ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED..........................18

4.1 Customer Service Desk......................................................................................18

4.1.1 Customer Counseling..................................................................................19

4.1.2 Account Operation......................................................................................20

4.1.3 Distribution Activities.................................................................................23

4.1.4 Checking Balance........................................................................................24

4.2 Cash Department:...............................................................................................25

4.3 Problems Solved.................................................................................................25

CHAPTER V................................................................................................................27

CONCLUSION AND LESSON LEARNT.................................................................27

vii
 5.1 Conclusion..........................................................................................................27

5.2 Lessons Learnt...................................................................................................28

5.3 Recommendation................................................................................................28

REFERENCES

viii
 LIST OF TABLES

Table 2.1 : Classification of Banking Sectors in Nepal.................................................6

Table 3.1 : Board of Directors of NIC ASIA Bank......................................................13
Table 3.2 : SWOT analysis of NIC Asia's Bank..........................................................16

ix
 LIST OF FIGURES

Figure 3.1 Organization Chart of nic asia bank...........................................................10

Figure 4.1 Major Function of Customer service department.......................................20
Figure 4.2 Flow chart of new alc opening procedure...................................................22
Figure 4.3 Flow chart of A/c Closing Procedure.........................................................24

x
 LIST OF ABBREVIATIONS

ABBS : Any Branch Banking Services

ATM : Automated Teller Machine

BBA : Bachelor of Business Administration

BoAN : Bank of Asia Nepal

CSD : Customer Service Department

FOM : Faculty of Management

INGO : International Non-government organization

KYC : Know Your Customer

MFIs : Micro Finance Institutions

NGO : Non-government Organization

NIC : Nepal Industrial and Commercial

NPR : Nepalese Rupee (ISO currency code)

NRB : Nepal Rastra Bank

PAN : Permanent Account Number

RBB : Rastriya Banijya Bank

xi
 1

CHAPTER I

INTRODUCTION

1.1 Background of the Study

Bachelor of Business Administration (BBA) program is the undergraduate level
program of Tribhuvan University (T.U). It is a four-year course with 120 credit hours
comprehensive bachelor degree program. It is further divided into eight semesters
(two semester in each year).It is mainly practical oriented which emphasizes to
provide student a practical knowledge. It aims to prepare students to become
competent, confident, skilled and socially responsive professional who can effectively
support managerial, entrepreneurial and leadership role in business and social
organization. It is student-oriented course where students should be actively
participated. Its syllabus has been designed in such a way that it has tried to give
student knowledge from almost every field like psychology, sociology, business law,
Information Technology (IT) etc. It has got grade system of marking in GPA. Due to
this distinctiveness BBA program is getting popular among the students and is
becoming the first choice of every students of management field.

In the course study of BBA program students are required to do the internship in their
specialized field. Internship is simply the applied form of knowledge. It is relatively
short term in nature with the primary focus on getting some on the job training and
taking what’s learned in the classroom and applying it to the real world. In the
beginning of 7th semester students are provided an opportunity to choose one special
field for the purpose of specialization. Finally, in 8 th semester they have to work
minimum 45 days in that specialized field which is called internship. This is a report
on the Customer Service Department of NIC ASIA Bank as one of the leading
Commercial Bank of Nepal, as mentioned earlier, and since I had completed my
internship from the Tansen branch office all the details related to the Customer
Service is based on that branch.

1.2 Objective of the Report

The general objective of the study is to fulfil the requirement for the degree if
Bachelor Of Business Administration. The major objective is to make the BBA
student relevant in the real-world situation. Besides this, the specific objectives are as
follows:
 2

i. To examine the practical insights about the banking activities.

ii. To analyze the various activities done under Customer Service

1.3 Methodology
Completion of internship is a combination of the different types of activities. It starts
from the selection of the organization for the internship, performance of different
kinds of activities and placement in different parts of the organization and at last
collection of various primary and secondary data for the preparation of the report. In
terms of data collection both primary as well as secondary source had been used. In
case of primary source, observation and personal interview with the staffs are used
and in case of secondary source, the brochures, published reports and documents,
website of the bank and other related websites had been used. Following
methodologies are used to study the organization:

1.3.1 Organization selection.

The most important and the initial part in the internship program is the selection of the
organization. It is the basis from which interns get the platform to learn something
and analyse the practical implication of the theoretical aspects learnt in the academic
session.

In this competitive market it is not an easy task to find intern in the reputed
organization. Campus provided recommendation letter which internee dropped in the
Human Resource Department (HRD) of NIC ASIA Bank along with the CV. There
were other numerous applicants applying for their internship. So it was a tough job for
HRD Head to select few amongst all. There was regular follow up calls to the HRD
which revealed interest and enthusiasm to work in NIC ASIA. After a week internee
was informed that internee was selected and could start internship period. Finally,
internee joined the bank as an intern from April, 2023.

1.3.2 Placement.
On February 16, 2023, internee was placed to NIC ASIA Bank, Branch office to start
his internship. There, the internee met branch manager and was asked to meet Officer
In charge and as per her order internee was placed in customer service department for
45 days under the supervision of CSD supervisor.
 3

1.3.3 Duration of internship.

The duration of internship period has been defined for 45 days by Tribhuvan
University, so as per the specified period, intern worked NIC ASIA Bank Limited
branch from February 16, 2023 to April 05, 2023. Internee thought those 45 days
were really fruitful and it will definitely help in upcoming days. It was the internship
program that helps to internee to be familiar with the organization culture, working
environment and working procedure of the NIC ASIA Bank.

1.3.4 Activities performed in the bank customer service department.

Activities that are performed in customer service department are,

i. Opening bank account of individual, firms and cooperatives.

ii. Issuance of cheque book.

iii. Account closing.

iv. Issuance of debit card.

v. Provide information about different products to the customers.

vi. Balance inquiry and other information about the bank service.

vii. Solve the queries of the customers.

viii. Make and receive various calls from both inside and outside the bank.

ix. Maintain good relationship with the customers.

1.3.5 Sources of data.

The following sources have been used to collect the necessary data:

1.3.5.1 Primary source of data.

The required information was collected through the discussion and information
provided by the officials of NIC ASIA Bank.

1.3.5.2 Secondary source of data.

The secondary data was collected from the secondary sources like: annual report,
official website and other publication.
 4

1.4 Limitation of the Study

Every field of study has some or the other limitations and so in the case of internship
report as well .There is some limitations that are faced at the time of my report
preparation and they are as follows:

1. The study is limited to only one financial institution.

2. It does not give detail view of overall functioning of the bank.
3. The study was limited only with Customer Service Department.
4. iv Lack of adequate time with staff to guide intern
 5

CHAPTER II
INTRODUCTION TO BANKING INDUSTRY

2.1 Meaning of Bank

Banking sectors plays an important role in the economic development of the country.
The word ‘Bank’ has been derived from the Italian word ‘Banco’ which means a
place for keeping, lending and exchanging money. The Bank is a financial institution,
which deals with money. It accepts deposits from individuals and organization and
grants loans to them. It allows interest on the deposits made and charge interest on the
loans granted. Since, it accepts deposits and grants loans, it is regarded as trade of
money. Further, it creates credit and support for the formation of capital.

“Banking is an organization establish for the purpose of exchange money deposit

lending money and participation in transactions” (Commercial bank Act 2031(Nepal))

According to Nepal Rastra Bank Act, 2002 “Bank is a financial institution, which
provides financial services that may be in the form of accepting deposits, advancing
loans, providing necessary technical advice, dealing over foreign currencies, remitting
funds, etc.”

According to Crowther “A commercial bank is an institution which collects money

from those who have it to spare or who are saving it out of their income and lend this
money out to those who require it.”

From the above definitions, it is clear that the bank is a financial institution, which
accepts deposit from the public in different amounts and grants loans to individual
and corporations against their securities. In these days, it performs a wide variety of
functions. It does lot more than deposits and credit, remitting of money, letter of
credit, guarantee etc. for the service and benefits of individuals, corporations, and the
general public. It is agent of its client, which remits money, provides services like
insurance, and collects incomes, commissions and pays expenses on the behalf of
them. Thus, the bank is a good mediator between depositors and loan takers.
 6

Table2.1
Classification of Banking Sectors in Nepal

S.N. Financial Institutions Class Numbers

1 Commercial Banks A 21

2 Development Banks B 18

3 Financial Companies C 17

4 Micro-Finance Financial D 64
Institutions

Source: (www.nrb.org.np)

2.2 Meaning of Commercial Bank

Commercial banks are the major components in the financial system. Commercial
Banks come into existence mainly with objectives of collecting of idle funds,
mobilizing them into productive sectors and causing the overall economic
development. The commercial bank is the oldest form of bank. In general, banks that
perform all kinds of banking business and generally finances trade and commerce are
called commercial bank. It occupies quite important place in the framework of every
economy.

According to Nepal Commercial Act 2013BS (1974 A.D). “A” commercial bank
refers to such types of bank which deals in money exchange, accepting deposits,
advancing loans, and other commercial transitioning except some functions done by
some specified bank such as Co-operative Bank, Agriculture Bank and Industrial
Bank.”

2.3 Functions of commercial Bank

Commercial Bank performs an array of functions. The commercial bank are those
banks, which are establish to accept deposit and grant loan to the industries,
individual and traders with a view to earn profit. Apart from financing, they also
render services like collection of bills and cheques, safekeeping of valuable, financial
advising etc. to their customer. These functions can be systematically categorized as
follows:
 7

Primary Functions

 Accepting deposit

 Lending

 Investment

Secondary Functions

 Agency Services

a) Collection and payment of cheques

b) Standing Instructions

c) Acting as Correspondence

d) Collection of bills-electricity, telephone

e) Purchase and sales of stock/share act as banker to issue

 Miscellaneous or General Services

a) Remittance Facilities

b) Advisory services

c) Providing credit reports

d) Demand in FOREX/Traveller’s Cheque

e) Complete service in Foreign Trade

f) Other services Debit Card Credit Card, on line banking, SMS banking

2.4 Commercial Bank in Nepal

In the contest of Nepal the first commercial, “Nepal Bank Limited” was established in
1937 A.D. and the second “ Rastriya Banijya Bank” was established in 1966 A.D.
Nepal has opened its door to foreign commercial banks in the kingdom almost a
decade back. As the country followed economic liberalization, there was massive
entrance of foreign banks in Nepal; Consequently, Nepal Arab Bank was establishing
in1985A.D. similarly the Nepal Indosuez Bank was establish as joint venture
between Nepal and France in 1986A.d. the legitimate entry of foreign commercial
banks with full-fledged banking functions led to rapid growth of banking system.
 8

After 1990 economic liberalization policy obtained by the government, now there are
commercial banks operating banking activities in the country.

It can be seen from the above table that commercial banks has grown in Nepal since
first joint-venture commercial bank was established in Nepal in 2041 B.S. There has
not been establishment of new banks after the year 2058 B.S But due to the political
and economic condition of the country, there are chances of establishment of new
banks.
 9

CHAPTER III

INTRODUCTION OF NIC ASIA BANK

3.1 Introduction of NIC ASIA BANK

NIC ASIA Bank is biggest bank in Nepal in terms of their branches. NIC ASIA Bank
started its operation in 1998 with a view and objectives of extending professionalized
and efficient banking services to various segment of the society. The bank is
providing customer- friendly services through its Branch Network. As a result, NIC
ASIA Bank has more than 1.8 million customers today. All the Branches of the bank
are connected through anywhere Branch Banking System (ABBS), which enables
customers for operational transactions from any branches.

The bank has been one of the leading banks of the country and has been catering its
service to various segments of the society since then. With clients from all walks of
life, the bank has helped develop the nation corporately, agriculturally, and
industrially. With an aim to help Nepalese citizens working abroad, the bank has
entered into arrangements with banks and finance companies in different countries
like UAE, Kuwait, Qatar, Saudi Arabia, Malaysia, Singapore, and UK. So, one can
say with all earnestly that NIC ASIA Bank is truly a Nepalese Bank.

3.1.1. Joint Venture

The joint venture partner of NIC ASIA BANK is a Bank of ASIA with holding 20%
equity in the bank and is one of the largest nationalized Banks in ASIA. With its
presence virtually in all the important centers at ASIA, ASIAN Development Bank
offers a wide variety of banking services which include corporate and personal
banking, industrial finance, agricultural finance, financing of trade and international
banking. Among the clients of the Bank are Indian conglomerates, medium and small
industrial units, exporters, non-resident Indians and multinational companies. The
large presence and vast resources base have helped the Bank to build strong links with
trade and industry.

3.1.2 Organization Chart

An organization structure consists of activities such as task allocation, co-ordination
and supervision which are directed towards the achievement of organizational aims.
 10

Figure 3.1 Organization Chart of nic asia bank

Source: www.nicasiabank.org.np

3.1.3 NIC ASIA Network

NIC ASIA Bank with a slogan of “Bank Pani Sathi Pani Ramro Pani Hamro Pani ”
provides customer friendly services through its Brach Network an all it’s the branches
are connected through Anywhere Branch System (ABBS), which enables customers
for operational transactions from any branches. The bank has 358 branches, 100
extension counters, 81 branchless banking and 473 ATM Counters and across the
country making it a very efficient and accessible bank for its customers, anytime,
 11

anywhere, SWIFT are other modes of communication for efficient and effective
transmission of information where NICNPKA is the swift code of NIC ASIA can also
transact through more than 5600 branches and 6000 ATMS of other banks. NIC Debit
card can also be used at more than 1300 Point of Sales (POS) terminals for purchase
of merchandise. There is more than 170 remittance pay-out location in Nepal. It has
its own Remittance Product “NIC Remit” to enables remit income from the gulf
countries.

3.1.4 Corporate Vision

 To position it as a progressive and customer friendly bank providing financial
and other related services.

 To cater to various segments of society using advanced technology.

 To be committed to excellence in corporate values.

 To ensure the creation of optimum values for all the stakeholders.

3.1.5 Corporate Mission

 To provide excellent professional services and improve its position as a leader
in the field of financial related services.

 To build and maintain a team of motivated and committed workforce with high
work ethos.

 To use the latest technology aimed at customer satisfaction and act as an

effective catalyst for socio-economic developments.

 To be a bank of first choice for all the stakeholders.

3.1.6 Awards
 The bank has been conferred with “Bank of the Year 2013, Nepal” by the
Banker, a publication of financial times, London.

 The bank was bestowed with the “NICCI Excellence award” by Nepal India
chamber of commerce for its spectacular performance under finance.

 NIS ASIA bank has been awarded with Best Brand Award (Banking sector)
and Best Employer Brand Award by Nepal BFSI.

 CEO Roshan Kumar Neupane was awarded with Manager Of The Year 2023.
 12

3.1.7 Pioneering Achievements

 Recognizing the value of offering a complete range of services, we have
pioneered in extending various customer friendly products such as Home
Loan, Education Loan, NIC Property Plus (Future Lease Rental), Home
Equity Loan, Vehicle Loan, Loan Against Life Insurance Policy and Loan for
Professionals.

 NIC ASIA BANK was introduced Mobile Vehicle Banking system to serve
the segment deprived of proper banking facilities through its Tansen Branch,
which is the first of its kind.

 NIC ASIA has introduced branchless banking system first time in Nepal to
cover unbanked sector of Nepalese society.

 NIC ASIA is first bank that has launched e-ticketing system in Nepal. NIC
ASIA customer can buy yeti airlines ticket through internet.

3.1.8 Objectives of the NIC ASIA BANK

• To facilitate the reliable, prompt and high standard of banking service for
adopting the latest version of banking technology in compliance with the need
and demand of the market.
• To develop lifelong relationship with clients and achieve profitability through
customer oriented service and customer satisfaction.
• To widespread its branch network in different part of the countries covering at
least one branch on all development regions facilitating large number of
clients as possible.
• To provide financial help to the General Public.
• To encourage industries by providing necessary capitals.
• To provide safe deposit to the customers.
• To provide various kind of credit facilities such as home loan, education loan,
etc.
 13

3.1.9 Board of Directors of NIC ASIA BANK

Table3.1
Board of Directors of NIC ASIA Bank
S.N Board of Directors Designation
1. Mr. Tulsi Ram Agrawal Chairman
2. Mr. Trilok Chand Agrawal Director
3. Mr.Ram Chandra Sanghai Director
4. Mr. Nikunj Agrawal Director
5. Mr. Aditya Kumar Agrawal Director
6. Mr. Ganesh Man Shrestha Director
7. Mrs. Bijaya Swar Director

Source : https://theorg.com/org/nic-asia-bank

3.2 Product /services offered by NIC ASIA

NIC Asia has never backed in providing the best products and services to meet the
requirement of its customers be that the existing ones or potential customers. NIC
ASIA needed successful to provide these entire products through the analysis of the
customer feedback form. Customer’s Satisfaction is the paramount driver at NIC
ASIA .

The different product and offered by NIC ASIA are as follows:

 Saving Account: Saving account offers all facilities required for normal
transactions like deposit, payments with additional facility of debit cards,
ABBS, Under the saving amount, the various schemes offered by bank
includes premium,Sarbashrestha Bachat Khata, Sarbashrestha Nari Bachat
Khata, Sarbashrestha Babu Nani Bachat Khata ,Sarbashrestha Jestha Nagarik
Bachat Khata,Sarbashrestha Sthaniya Bachat Khata,Sarbashrestha Talab
Bachat Khata, Sarbashrestha Muddati Khata,Sarbashrestha Remittance
Muddati Khata, Sarbashrestha Bidhyarthi Bachat Khata, USD account, Call
Deposit and Current Deposit.

 Retail Lending: Under retail lending, the various loans offered by NIC ASIA
are Housing loan, Vehicle Loan, Education Loan, Professional Loan, Loan
 14

against mortgage, Loan against future Lease and Rental, and Loan against
shares.

 Working Capital Finance: The bank services the working capital

requirement of business by assessing the current asset and liabilities.

 Project Finance: Depending on the projects rate of return, repayment ability,

cash flow and generation of cash surplus various projects are financed.

 Trade Finance: Through an extensive global network that facilitate domestic

and international transaction NIC ASIA is able to meet customers need of
import, export, payments through offering facilities like LC( letter of Credit),
SWIFT transfer , Guarantees, etc.

 Remittance: In order to facilitate remittance of Nepalese residing in U.A.E.,

Bahrain, Kuwait, Qatar, Malaysia and Saudi Arabia. NIC ASIA is a step
ahead. NIC ASIA is playing a pivotal role in facilitating remittance to and
from across globe. The banks own web based online remittance product. With
world remit, the bank has same day remittance facility with other different
banks with association of Bank of Asia’s 2200 network branches, based draft
drawing arrangement.

Following are the facilities provided by NIC ASIA to customers:

A. Any Branch Banking Services (ABBS): The account holder can deposit and
withdraw cash from any of NIC ASIA branches without any transaction
charge. They are not restricted to a particular branch to operate their account.
However, customer must obtain cheque book and ATM card from particular
branch from where they opened their account.

B. Locker: NIC ASIA provides a sound and secure place to keep valuables
corporate papers or bonds/shares certificate or jewellery through locker
service. Any person who wants to open the locker must have an account at
NIC ASIA. Locker margin and charge depends on the size of locker.

C. Debit Card: NIC ASIA debit card is a plastic card which provides an
alternative payment method to cash when making purchases or cash
withdrawal from ATM centres. NIC ASIA Debit Card having maturity of
eight years is a key to ultimate convenience regarding day to day monetary
 15

transactions providing customers the power of real cash in form of card.

Associated with Smart Choice Technology (STC), it facilitates wide sharing of
ATM under SCT network from more than 650 locations throughout Nepal. It
has recently launched VISA Debit Card to facilitate customers.

D. Evening counter: For added comfort and convenience of NIC ASIA valued
customer, NIC ASIA is opened even after banking hours. Various services are
provided during evening counter. Some of them are as follows:

 Acceptance of deposit.

 Withdrawal of cheque amounting up to 15.00 Lack per cheque.

 Remittance facility (online remittance)

E. Mobile Banking: The mobile banking service is an excellent way to operate

your account information and real-time transaction capabilities at a true
“anyone, anywhere, anytime” convenience. You can always get information
about the bank’s products and services directly in your smartphone as an
additional advantage of mobile banking.

 Insurance of drafts.

 Accepting of clearing cheque mentioning late clearing.

 ABBS facility.

Other different services are provided by NIC ASIA like: e-banking, weekend banking,
fund transfer, SMS banking, mobile banking, SMS Alert, pay bill banking.
 16

3.3 SWOT Analysis of NIC ASIA’s Bank

Table 2.2
SWOT analysis of NIC Asia's Bank

Strength Weakness

• Joint Venture partner with • Lack of sufficient ATM’s in and

BANK OF ASIA outside valley.

• First class infrastructure and • Insufficient marketing

advanced technology
• Availability of only SCT based
• Goodwill debit card services

• Quality Service • Lack of Office Equipments

• Facility of ABBS

• Effective inter-department
communication

• Pioneer of online Banking

• Involvement in off balance-

sheet activities

• Proper strategic planning and

preparation

Opportunities Threats

 New investment opportunities  Political Instability

 Growing international trade  Changing customers taste

 Introduction of innovative  Changing technology

products, services and programs.  Intense competition
 Installation of update technology  Less investments opportunity
 17

During the eight-week period intern was placed in the various department to
accumulate an overall learning experience of the banking activities at various
departments. All department performed independent and highly identical activities all
aims at organizational goal achievement.
 18

CHAPTER IV
ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED

4.1 Customer Service Desk

Customer service is the front Desk of any organization, where customers make the
first contact with the bank. The image and reputation of the bank depend upon the
effective functioning of this department. Customer service is the process by which an
organization delivers its products and services to the customers. The staff deployed in
Customer Service Desk should have a fair knowledge of banking so that they may be
able to answer any questions raised by the customers. Attracting the potential
customers and retaining the existing customers are intended by Customer Service
Desk.

Hence, all the activities of Customer Service Desk are directed towards customer
satisfaction. One thing that is to be kept in mind is the finding new customer is much
more expensive than retaining existing one. Customer service is more than just
keeping the customer happy. But it is about revenue because a lost customer means
loss of revenue and incurred expenses in making a new customer and an unhappy
customer can damage the image and reputation of the business as a whole.

As a whole Customer Service Desk is the real face of the every bank. It is about how
the organization delivers its product or service. It is a link between customers and
other departments of the bank. It bridges between bank and customer. This unique
feature makes Customer Service Desk crucial department of the bank. We need to
know that a highly satisfied customer stays loyal longer. Having a significant number
of satisfied customers is only possible through the efficient functioning of customer
services department of any organization. It would then not be inappropriate to say that
this department is the key to the success of any organization.

Major Functions Performed at Customer Service Desk

As described, the Customer Service Desk is responsible to provide detailed
information about the product and services of the bank to meet customer need and to
make banking more convenient. The staff in the Customer Service Desk must be
capable enough to cope with every environment and at the same time needs to have
 19

good communication and interpersonal skills to build a good public relation. The
major activities performed in the Customer Service Desk are shown below:

Figure 4.1 Major Function of Customer service department

Above mentioned are the major functions that must be performed by the staff placed
in the Customer Service Desk similarly intern was also required to perform all this
functionality during the placement period at Customer Service Desk can be presented
in the major categories as follows:

4.1.1 Customer Counseling

Customer Counselling is an essential functions of customer service department. The
efficiency of the customer services department or an organization is the outcome of
quality of the customer Counseling that it provides. Customer service department is
concerned with Counseling the new as well as the existing clients regarding the
products and the services provided in this branch. There are various kinds of products
 20

and services available in this organization. This department is also responsible for
providing detail information regarding these different products and services. Staffs of
NIC Asia Bank are updating them with various kind of information which are
required to counsel the customer with appropriate way. Counseling involves
following activity.

 Understanding the need of customers and determining the purpose of the visit

 Forwarding the customer to the concerned department as per their need

 Providing suggestion about the suitable deposit product for the customer

 Making the customer aware of the benefits and services available

 Informing the customers about the minimum balance required and service
charges.

4.1.2 Account Operation

It can be categorized into account opening and account closing as described below.

4.1.2.1 Account Opening

The activities involved in account opening are highlighted below:

 Providing the account opening form along with the signature specimen card

 Verifying details in the account opening form by verbal queries with customer

 Cross matching details and forwarding the document for approval from the
supervisor.

 Opening the account in the system using FINACLE

 Requesting the customer to deposit the amount by filling up the deposit slip

 Photo and signature card scanning and entering into the software
 21

Figure 4.2 Flow chart of new a/c opening procedure

4.1.2.2 Procedures of Account Opening

Whether it is the current account or saving account, it has followed certain procedure.
The procedures of both the accounts are moreover similar.

 Filling up of account opening form with the specimen/signature card and KYC
form

 Verification of the form by checking whether each attribute required is

properly filled or not.

 In the case of the current account, attributes are the name of the firm or
individual, PAN/VAT no, minute, the stamp of the firm, etc.

 In the case of saving the account, attributes are the name of the individual,
citizenship no or license no etc.

 Verification of the form and the documents by the senior authority.

 Entry of the information into the FINACLE

 Obtain the registration number

 22

 Generation of the account number by the system.

 Communication of account number to the customers.

 Filling deposit slip of balance required.

 Record in the ledger book with required details.

4.1.2.3 Account Closing

The activities involved in account closing are described below:

 Asking the customers about the reason for closing account and convincing the
customer not to close account as far as possible by suggesting the alternative
services available

 If the customer is willing to close his account, then providing the account
closing form and getting it cleared from all the department ‘without any
objection’

 Informing the customer about the charges levied

 Collecting the belonging-related to account i.e. cheque book, ATM card, pass
book if any

 Finally, the account is closed by handling the cash to the customer after
debiting the account closing charge.
 23

Deci
Start Fill a/c closing form Process
sion

Approved
application
Provide Collect cheque book and ATM cards
Remaining

Closing Account

Figure 2.3 Flow chart of A/c Closing Procedure

4.1.3 Distribution Activities

Customer Service Desk performs distribution function in mainly three core areas
which is mentioned below:

4.1.3.1 Account Statement

Account statements are asked by the customer to determine the transaction record.
An account statement provides only the account holder or to the bearer of the
previously issued account statement signed by the account holder.

4.1.3.2 Issuing Bank Certificate

Bank certificate is provided to an individual or a company if the person is going
abroad. The transactions and balance of the account holder are certified by the bank
for the concerned embassy. The balance certificate is the proof that the person has the
certain balance on the account of NIC ASIA BANK. In the balance certificate, the
Nepalese currency which is available in the bank account of the respective customer
is converted to the currency where the customer is going. For example: if the
customer is going to Netherland then the Nepalese currency will be converted to the
Euro currency and this conversion is done according to the rate of NRB. A charge of
Rs. 500 is charged as service charge
 24

4.1.3.3 Cheque Book Distribution

Cheque books are strictly handed over to the account holder only after getting the
cheque disbursement register signed by the account holder, in person. However, the
cheque requisite slip can be collected for the bearer, not necessary the account holder.
Minimum balance required to issue a cheque book for saving account is rupees three
thousand and that for the current account or call account is rupees five thousand.

Procedure for Issuance of Cheque Book, A cheque book is issued for a new account
and for existing account holder on requests for new cheque book by submitting their
cheque requisition. And the process includes:

 The account holder should be present while receiving cheque book.

 If the account holder is not able to present to collect the cheque s/he can assign
the agent by providing agents name and signature in requisition slip

 A number of leaf’s for the new account are provided as per the bank rule (10
leaves initially) and for old account number of leafs are provided as per the
customers demand.

 Once cheque book becomes ready need to make the entry in the cheque book
issue register.

 Cheque book needs to be finally rechecked at the time of handing over to the
recipient.

4.1.4 Checking Balance

Many people come for the balance enquiry in the bank. Through Customer Service
Desk, account holders are provided the information regarding their balances as well as
the date of deposit and withdrawal The NIC ASIA software facilitates to show the
balance of the respective branch only. This information is provided to the account
holder only but if in case the account holder is unable to come then his representative
can know the balance by bringing the application written by the account holder with
his/her signature if signature matches then only the information regarding balance will
be provided.
 25

4.2 Cash Department:

Although I wasn’t directly assigned to cash department, I still got to learn qujte a lot
about cash department. The Tasks which I have learned in this Department is given as
follows

 Payment of cheque.

 Receiving Deposit from customer.

 Performing day to day banking transaction in excel.

 Checking the total cash receive and payment perform by Bank.

 Counting of Money with the Help of money counting Machine.

 Exchanging money of customers.

 Sorting Money (Most of the time spent for it nearly about 3 weeks)

4.3 Problems Solved

Problems and organization are non-detachable terms. In performing day to day
activities of the organization, one needs to tackle with various problems and
challenges. While dealing with such problems, appropriate managerial skills need to
be used to solve the problem in the effective and efficient way. During the internship
period, the following problems were solved.

 Problems related to the Wrong Information and Incomplete Information:

Most of the customers had to face the problems due to the wrong information
provided by other customers or due to the incomplete information. So, the major
responsibility of the employee is to handle those customers and solve their problem
by either providing the factual information or by providing the complete information
as per their peculiarity of the case.

 Problem-related to the Change of Rules and Regulations

The rules related to the operation of the banks, the interest rates, the charges are
revised time to time to cope with the dynamic environment, but the customers don’t
easily accept the change. Hence, the employee should inform the customer about the
change, its need and relevance to the organization which is really a hard and tedious
job to perform.

 Problems related to the Mistakes due to the Error in the System:

 26

Sometimes due to various reasons, the customer’s account would be debited twice for
the same charge or something similar to this occurs. Also, sometimes the ATM
Machine doesn’t provide the cash but the account is debited. These kinds of system
errors make the customers dissatisfied and hence, they arrive at the bank staffs and
this kind of problems is to be handled by the employees.

 Problems related to the Non-functioning of Various Services:

Particularly in NIC ASIA, an employee should face difficult situation due to the
malfunctioning of the SMS services as well as the E- Banking Services. Thus, staffs
have to solve their respective problems.

1. In Customer Service Desk, it was time-consuming to find cheques. It is because

cheques were arranged in order of cheques issued. But the order was broken when
customers came to take cheques. Hence, as per the suggestion of internee, cheques
were arranged in alphabetical order afterwards.

2. In locker department, some customer’s keys were informed to be lost. Also court
ordered from stop operation. In the case, print copy of “lost keys” and “Rock” was
posted in the door of the locker. It prevented anybody from an opening locker.

3. Therefore, one sitting in various departments should always be ready to face and
solve any kind of uncertain situation for the benefit of the customers and
ultimately for the benefit of the Bank itself. And the internee had performed the
entire above-explained task and solved all the types of above explained problems
as the assistant trainee of NIC ASIA.
 27

CHAPTER V
CONCLUSION

5.1 Lessons Learnt

From the above analysis it is seemed that NIC ASIA BANK is one of the most
hardworking commercial bank that is dedicated in serving their valued customers with
excellence. During this internship period of 8 weeks, intern had learnt a lot about the
banking activities and banking operation in Nepalese market, about NIC ASIA
BANK in particular .This report has made intern know about the various kind of the
customer services that NIC ASAI BANK has been offering. The internship has been
fruitful in many ways to intern.

Internship has broadened intern’s knowledge, vision, ability management skill and
confidence to perform in real working environment. It was a great chance to gain
practical knowledge of banking sector. The practical cases are rather different from
that we study in theory. Further intern has also become versed to get socialize with
diversified people, to deal with the senior staffs, and to deal with the intern colleague
so as to make the working environment cheerful, pleasant and friendlier. Beside this,
the supervisors were extremely helpful in guiding on our internship. It was great
experience working as an intern in NIC ASIA BANK. The operational environment
was benevolent. There was good communication, healthy competition and healthy
relationship in between the personnel of NIC ASIA BANK. Each and every staff of
NIC ASIA BANK were totally professional but still there was a family environment
making overall internal working environment delightful to work with. Working at
NIC ASIA BANK as an intern was a great opportunity to develop conceptual and
analytical knowledge about banking sector in Nepal. Thus, the knowledge and
experience endowed with this study will surely be constructive towards the pavement
of intern’s career and professional life.

During my internship what I also analysed is that the bank is good in providing a good
customer service. Customers always seek quality service at their convenience.
Customers have preferred NIC ASIA BANK mainly due to its brand image, branch
facilities and service quality. They expect this bank to rise even more become the
leading bank in service quality. Mostly the customer of NIC ASIA BANK are
 28

satisfied with what they are receiving but there are also some issues regarding interest
rate on deposits and also other factors or room for improvement have to be made from
time to time on order to sustain the satisfaction level of customers and push the bank
to a continuous growing path.

5.2 Conclusion
The statement “more you learn you will discover your ignorance “has seemed to be
appropriate during internship period in NIC ASIA BANK. Intern has obtained
insights into career opportunities through interaction, observation and hard work
experiences in the organization and also built another step towards success through
interpersonal, managerial, communication and entrepreneurial skills gained from this
internship period. Being exposed to professional working environment, intern has
understood the corporate social responsibility, change the attitude and behaviour
towards daily life spending. The most important lesson learned by intern has been
listed as follows:

 Various operation and activities of cash department of bank.

 Social exposure with various types of customers from different background

since EBL deals with its different clients in the process of rendering its
services.

 Learn to face and handle problems effectively and efficiently.

 Change to get familiar with FINACLE system installed by NIC ASIA BANK.

 Keeping the account of each and every transaction in file as per the supportive
evidence. So filing is the most important job in the bank.

 Along with customer satisfaction, employee satisfaction also plays a great role
in the success of the bank.

 There was the opportunity to understand different types of stamps ad their

respective function that was in use.

Learn the workflow, chain of command and hierarchy of organization.

 REFERENCES

Gurusamy, S. (2010). Financial Markets and Institutions. India: Thomason Business

Inforation India Pvt. Ltd.

Joshi, P.R. (2008). Research Methodology. Kathmandu: Buddha Accademic

publishers

and Distributors Pvt.Ltd.

Kohn, M. (2012). Financial Institutios and Markets. New Delhi: Tata Mcgraw Hill

publishing Company LimitedS

Manandar, K.D. &Pokhrel, S. B. (2012). Marketing financial servicies. Kathmandu:

Buddha Publicaton

Nepal Rastra Bank (2018). Laws and Legislation. Kathmandu: NRB

Thakur, D. (1998). Researh Methodology in social sciences. New Delhi: Deep and
deep

publications.

Thapa, K. (2010). Financial instituteions and market. Kathmandu: Asmita Publication

Websites

http://http://www.nicasiabank.com

https://en.wikipedia.org/wiki/NIC_ASIA_BANK

www.nrb.org.np