Professional Documents
Culture Documents
INTRODUCTION
1.1 Background
An internship is a work-related learning experience for individuals who wish to develop hands on work experience in a certain occupational field. It involves working in your expected career field. It gives the students a valuable experience and a chance to get exposed to the business environment. Interns are usually college or university students, but they can also be high school students or post graduate adults seeking skills for a new career. Student internships provide opportunities for students to gain experience in their field, determine if they have an interest in a particular career and create a network of contacts. Internships provide the employers with cheap or free labor for low-level tasks and also the prospect of interns returning to the company after completing their education and requiring little or no training. This internship program is designed by Tribhuvan University for the partial fulfillment of the degree of Bachelor in Business Administration (BBA). Being the student of BBA and specializing in Business and Finance the students are honored by the internship program under this curriculum. It helps the students develop their inner ability or the confidence level and the level of understanding to compete in this complex and sophisticated age. It also increases the ability of the students to tackle the business problems, to grasp the opportunities and to face the threats. In its totality, internship program teaches us the corporate culture, develops our public relationship skills, makes us competent and provides us an excellent working experience. The Letters of Credit give importers the most extensively used and conventional international trade payment means and finance instrument. By making Letter of Credit terms to permit Deferred Payment or Trade Acceptance, a Letter of Credit facilitates financing to the importer. It promises payment, provided the seller complies with the terms and conditions inside the Letter of Credit. The Irrevocable letter of credit can't be canceled or varied without the approval of all parties.
1.2Objectives
The general objectives of the report are as follows: To acquire knowledge on banking activities and environment. To understand the practical implications of academic knowledge.
To know the various procedures involved in Letter of Credit. To know the various parties involved in LC. To acquaintance with the overall organizational environment of Nepal Investment Bank Limited.
1.3 Methodology 1.3.1 Source of Data This study is mostly descriptive in nature where the facts and findings are presented in a systematic manner. The methods of data collection used for this project are as follows. 1. Primary Data Personal Observation of work environment during internship period. Tasks performed as assigned by the supervisors and their instructions briefings with questionnaires. 2. Secondary Data Annual report of NIBL Publications of NIBL Website of Nepal Rastra Bank Website of NIBL Websites related to Commercial Bank
1.3.2 Selection of Organization Organization selection is a crucial factor in an internship because it is the place where intern gains practical knowledge, builds up confidence, develops the interpersonal skills etc. To accomplish the internship, the intern approached Nepal Investment Bank Ltd which was recently declared the Bank of the Year 2008. It was a right choice as the bank had internship provision with good learning environment. The bank was not only renowned in the national market but it was also well known for its services in the international market. 1.3.3 Placement in Organization The intern was selected to complete his/her internship at the head office, Durbar Marga. During the internship period the intern was placed at the different departments of the bank in order to gain overall knowledge of the banking operations in the bank. The departments which the intern visited during the internship period are: Trade Finance Department (TFD) Customer Service Department (CSD) Locker
1.3.4 Duration of the internship The duration of internship for BBA program as per the Faculty of Management, Tribhuvan University (T.U.) is for two months, which provided a great opportunity for the students involved in the program. During the internship the placement was done in three different departments. S.N. 1. 2. 3. Department Customer Service Department Trade Finance Department Locker Time period (in Weeks) 3 4.5 0.5
1.3.5 Activities Performed in the Bank The intern performed various activities at different department during his stay at the bank are as follows. Customer Service Department This department is oriented towards customers and basically manages all the customers queries and if possible tries to solve in the front desk of the organization. In this department the major tasks that the intern learned are: Dealing with customers Opening and closing of accounts Handling incoming calls Providing accounts statement Issuing cheque books Providing Debit Cards to the customers Maintaining record of ATM card holders Providing e-banking facility b. Trade and Finance Department This department provides facilities like Import/Export Letter of Credit, issuing of bank guarantee, telex transfer which is non funded business in which bank does not have to use its funds at the beginning of the contract. Hence it is a safe mode of dealing with client. In this department the major tasks that the intern learned are: Recording of opening of L/C Separating the documents Filing of documents Transport of the Customer Liability Report to the corporate department Necessary documents were faxed as per the request
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c. Locker Department Locker is essential in terms of security fro the customers. NIBL provides locker facility to keep the valuable property and other goods which the customers feel unsafe at their respective home. . In this department the major tasks that the intern learned are: Opening and closing of accounts Recording of the customers visited on a particular day Showing the customers their particular lockers
1.4 Limitations of the study The major limitations of the study are as follows: Time allotted for the study was limited to eight weeks so detailed analysis was not possible. Some of the activities could not be analyzed since some of the matters were to be kept confidential as per the policy of the bank. Since the project is confined to only one topic all the collected data cannot be presented in this report. The study may not be applicable to other organization of similar nature. Validity of the report fully depends on the information provided by the concerned authorities.
CHAPTER II
BANKING INDUSTRY
2.1 Meaning of Bank The term Bank is derived from the Italian word banco meaning bench. A bank is a financial institution where you can deposit your money. It provides a system for easily transferring money from one person or business to another. Using banks and the many services they offer saves us an incredible amount of time, and ensures that our funds "pass hands" in a legal and structured manner. A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. It act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. It also enables customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM. It borrows money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. It lends money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. The following definition can better signify the meaning of banking: A bank is an organization whose principle operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to other for expenditure. Kent The term commercial bank refers to those who pull together the saving of the community and arrange their productive use and supply the financial needs of modern business by various means. They accept deposit form the public on the condition that
they are repayable on the demand or on short notice. They are restricted to invest their funds in corporate securities and finance in fixed assets. Their activities are confined to financing the short term needs of trade and industry such as working capital financing. In addition, they grant loans in the form of credit card and overdraft. According to Commercial Bank Act 2031 Section 2(a) commercial bank is a bank which operates currency exchanges transactions, accepts deposits, provides loan, performs, dealing, relating to commerce except the banks which have been specified for the cooperatives, agricultural, industrial of similar other specific objective. The main objective of commercial bank is to mobilize idle resources for productive use after collecting them form different places. The function of commercial bank is accepting deposit namely fixed, current and saving account, safety of public money, remittance of money, letter of credit, guarantee, loans lending, locker facilities, foreign exchange, serving as agent of client, etc. Hence, commercial bank is profit oriented financial service institution which creates money, makes payment mechanism, extension of credit facilities and accepting bills of exchange of their constituents.
banking activities for the first time. "Tejarath Adda" was established to provide loan facilities for government staffs and to general public under the collateral of gold and silver in the tern of 5% interest (1933 B.S.-1942 B.S.). There were moneylenders known as Merwari Merchant, Jamindar, Gold Smith, Brokers, and Sahukars etc. They still exist in some remotest part of the nation. Indian currency was accustomed in Terai area. Hundi function had been done through merchants. "Sainik Dravya Kash" was established in 1993 B.S. specially established for the future welfare of government staffs and Sainik only once since 2019 B.S. Karmachari Shanchaya Kosh has been performing more functions than Sainik Dravya Kosh to give facilities not only to the staff of the government but also to the staff corporations. In Nepal, Banking in true sense of term started with the inception of Nepal Bank Limited (Ltd.), (NBL) on 30th Kartik 1994 B.S. Its functions were to meet the need for development of banking sector and also to formulate monetary policies, NRB was established on 14th Baishak 2031 BS under NRB act 2012 since then it has been functioning as Governments bank. Being a central bank NRB had its own limitation and NBL was reluctant to go to unprofitable sector. To cope with these difficulties, government establishes Rastriya Banijaya Bank in 2022 BS under RBB Act 2021. These banks carried out the functions of commercial bank and functions of development bank as well. Despite governments effort financial sector were sluggish. Banking service to the satisfactory of customer was a far cry. In such condition, the inception of Nepal Arab Bank Limited in 2041 B.S. as first joint venture bank was proved a milestone in the banking history of Nepal. Having observed the success of Nabil Bank based on marketing concept and because of liberal economic policy adopted by the government, other commercial banks were also established in the coming years. Now the banks, development banks, finance companies and co-operative are providing banking services to different sectors.
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e. General Utility Functions The banks do some services known as general utilities services. It carries out foreign currencies transactions with central banks approval. Banks provides locker facilities for safe keeping of valuable documents. It also offers investment and merchant banking services. It gives economic and professional advices to its customers. It also issues travelers cheques on behalf of customers name. f. Foreign Trade Financing Banks helps customers who deal with foreign trade. It facilitates export and import business by issuing letter of credit. It discounts the bills of exchange drawn by Nepalese exporters on the foreign importers and enabled the exporters to receive money in the home currency. On the other hand, it also accepts the bills drawn by foreign exporters. g. Information and Other Services Some banks provide regular bulletin on trade and economic conditions at home and abroad countries, and special reports on commodities and markets. They may also invite enquiries for those wishing to extend their trade and are able through their correspondents to furnish the name of reputable and interested dealers of goods and to advice on the appointment of suitable agents in some cases. On request, banks obtain information for customers, for business purpose, for confidential opinions on the financial standing of companies or industries at home or abroad countries.
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S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Names Nepal Bank Ltd. Rastriya Banijya Bank Agriculture Development Bank Ltd. NABIL Bank Ltd. Nepal Investment Bank Limited Standard Chartered Bank Nepal Ltd. Himalayan Bank Ltd. Nepal SBI Bank Ltd. Nepal Bangladesh Bank Ltd. Everest Bank Ltd. Bank of Kathmandu Ltd. Nepal Credit and Commerce Bank Ltd. Lumbini Bank Ltd. Nepal Industrial & Commercial Bank Ltd. Machhapuchhre Bank Ltd. Kumari Bank Ltd. Laxmi Bank Ltd. Siddhartha Bank Ltd. Global Bank Ltd. Citizens Bank International Ltd. Prime Bank Ltd Bank of Asia Nepal Ltd. Sunrise Bank Ltd. Development Credit Bank Ltd. NMB Bank Ltd. Kist Bank Ltd.
Operation Date 1937/11/15 1966/01/23 1968/01/02 1984/07/16 1986/02/27 1987/01/30 1993/01/18 1993/07/07 1993/06/05 1994/10/18 1995/03/12 1996/10/14 1998/07/17 1998/07/21 2000/10/03 2001/04/03 2002/04/03 2002/12/24 2007/01/02 2007/6/21 2007/9/24 2007/10/12 2007/10/12 2001/01/23 1996/11/26 2009/05/07
Head Office Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Siddharthanagar,Rupendehi Narayangadh,Chitawan Biaratnagar,Morang Pokhara, Kaski Kathmandu Birgunj, Parsa Kathmandu Birgunj, Parsa Kathmandu Kathmandu Kathmandu Kathmandu Kamaladi, Kathmandu Babarmahal, Kathmandu Anamnagar, Kathmandu
Paid up Capital (Rs. In Million) 380.4 1172.30 9278.00 689.20 1203.00 620.80 1013.50 874.50 744.10 831.40 603.10 1275.80 750.00 792.00 821.70 900.00 732.00 790.00 700.00 560.00 700.00 700.00 700.00 301.00 1000.00 200.00
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CHAPTER III
Rashtriya Banijya Bank holding 15% of the Capital. Rashtriya Beema Sansthan holding the same percentage. The remaining 20% being held by the General Public, which means that NIBL is a Company listed on the Nepal Stock Exchange (NEPSE). Figure 1. Share Distribution of NIBL
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Chairman / CED
GM
Deputy GM
Assistant GM
Assistant GM
Head Loan Administration Head Accounts & Treasury Head Cash & Transfer Head Card & Remittance
Head Legal
Head IT
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3.6.2 Current Board of Directors of NIBL The present board of directors and management team are as follows: Name Mr. Prithivi Bahadur Pande Mr. Prajanya Rajbhandari Mr. Deepak Man Serchan Designation Chairman/Chief Executive Director Director Director Group Group "A Group "A Group "A
Director
Director
Director
Public Shareholder
Professional Director
Under BFIA
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3.6.3 Branches of NIBL The head office of NIBL is located art Durbar Marg, Kathmandu. All the major functioning such as rules and policy making, issuance of securities, international banking etc are done through this branch. It has 31 branches within the country in conjunction with the head. Branches of NIBL Branch No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Branches Phone No Head Office, Durbar Marg 4228229, 4242530 Seepadole Branch 6615617, 6612832 Birgunj Branch (051) 523327, 525277 Pulchowk Branch 5010188, 5010042 Banepa Branch (011) 664315,662401 Jeetpur Branch (053) 520297 Newroad Branch 4242858, 4230374 Biratnagar Branch (021) 534523, 534524, 534525 Butwal Branch (071) 549991, 549992, 549993 Bhairahawa Branch (071) 526991, 526992 Pokhara Branch (061) 538919, 539276 Putalisadak Branch 4445302, 4445303 Narayangarh Branch (056) 532921,532922 Janakpur Branch (041) 527331 Nepalgunj Branch (081) 525978,525682 Thamel Branch 4218431,4218434, 4218485 Kalimati Branch 4672493,4672494, 4672495 Birtamod Branch (023) 543810,543811 Battisputali Branch 4471690,4471790 Dhangadi Branch (091) 523620,523706 Gongabu Branch 4365318,4365077 Surkhet Branch (083) 524330, 524331 Jumla Branch (087) 520132 Boudha Branch 4480121,4480122 Hetauda Branch (057) 526001, 525946 Palpa Branch (075) 520832,520833 Lukla Branch (038) 550120 Dhumbarahi Branch 4009006, 4009007 Naya Baneshwor Branch 4785529 Bhotahiti Branch 4230797, 4230788 Tulsipur Branch (082)521613,521614 Table 3: Branches of NIBL
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Broadly speaking there are two types of products of a normal commercial. They are deposits and credit. Under these two categories NIBL provides various kinds of products. They are categorized below: DEPOSITS E-zee Saving Account E-zee Student Account Pariwar Bachat Khata( Recurring deposit account) Aafnai Bachat Khata Keta Keti Bachat Khata Lotus Saving Account Fixed Deposit Call Deposit
CREDITS Corporate Loan Home Loan Vehicle Loan Education Loan Loan against gold and silver Bank overdraft
There are other types of products too which the bank provides. They are as follows Visa debit cards Credit cards Travelers checks
SERVICES OF NIBL 365 days banking E-banking SMS Banking Any branch banking service(ABBS)
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Tele-banking Mobile bills payment (NTC) Remittance Trade finance Utility payment Automated Teller Machine (ATM) Safe Deposit Lockers
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CHAPTER IV
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As per the definition of International Chamber of Commerce (ICC) "documentary credit is any arrangement however named or described whereby a bank, (the issuing bank) acting at the request and in accordance with the instructions of a customer (the applicant), is to make payment to or to the order of a third party (the beneficiary) or is to pay, accept or negotiate bill of exchange (drafts) drawn by the beneficiary, or authorize such payments to be made or such drafts to be paid, accepted or negotiated by a other bank against stipulated documents in compliance with stipulated terms and conditions."
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B. Payment Wise a. Sight Letter of Credit When LC term stipulates that Credit is available by Sight, this means that the payment of the documents drawn under the LC will be paid immediately upon receipt of same, hence, is called sight credit. The amount is payable as soon as the prescribed documents have been presented and the bank has checked them. So the proceeds are normally at the immediate disposal of the beneficiary. b. Usance Letter of (Acceptance) Credit When a credit calls for drawing of drafts at a stated date or after a stated period (usance period) requiring acceptance and/or payment by drawee at the end of such usance period, it is known a Usance Credit. This type of credit is also referred as Term Credit. c. Red Clause LC This particular type of LC allows for advance payment to the exporter. This type of LC has been prohibited by Nepal Rastra Bank in case of import Letter of Credit. Release of advance payment is subject to fulfillment of certain prescribed conditions. In short, a red clause LC allows the beneficiary to avail finances in advance to execute the required order in the LC. d. Back-To-Back Credit When a credit is opened against the security of another credit it is called a BackTo-Back credit. It is also called as countervailing credit. These type of LC is quite popular in Nepalese garment exporters who require to import fabrics from back to back import LC to execute their export order of ready made garments. In Nepal the back to back Import LC can be opened only up to 50% of the Export LC. e. Green Clause Letter of Credit A credit providing facilities for warehousing and storing of goods at the port of shipment at the cost of opener/opening bank till the goods covered under the credit is put on board the carrying vessel is called Green Clause Letters of Credit. In such cases, warehouse warrants are given as security. f. Reimbursement Letter of Credit Any standard LC having special payment conditions that the negotiating bank is authorized to claim and get the payment against the LC directly from the opening banks nominated agency bank after presentation of credit confirmed documents is known as reimbursement LC. It ensures more security and faster payment for the 24
exporter and it is always at the cost of the importer as the risk and cost of the fund is higher. g. Deferred Payment Credit A LC in which payment is made by designated bank, on respective due dates, determined in accordance with stipulations of the credit, without the drawing of drafts in installment basis or in a lump-sum is known as deferred payment LC. It is an extended payment credit, in which no draft will be called upon to be drawn, but it must specify the maturity at which payment is to be made and how such maturity is to be determined. h. Installment Letter of Credit Installment LC calls for shipment of goods in specified quantity on stated dates or periods. Since this credit is for shipment in specifically stated installments, it is called installment credit. An installment LC is similar to any simple LC with partial shipment. However, an installment LC specifies quantities and dates of such partial shipments. i. Negotiation Letter of Credit In a negotiation credit, the negotiation can be restricted to a specific bank or it may allow free negotiation, which is called freely negotiable credit wherein any bank willing to negotiate can do so. If the bank nominated as negotiating bank and refuse to negotiate, then the responsibility of issuing bank would be to pay as per terms of that credit. C. Others a. Transferable Letter of Credit It is a credit which can be transferred by the original beneficiary in favor of a second beneficiary or several beneficiaries. As per the article 48b UCPDC, credit can be transferred only if it is expressly designated as Transferable by the issuing bank. Further, such credit can be transferred only once, i.e. from the first beneficiary to a second beneficiary and not thereafter from the second beneficiary to a third beneficiary. b. Standby Letter of Credit A bank will issue a stand by LC on behalf of a customer to provide assurances of his ability to perform under the terms of a contract between the beneficiaries. It assures the beneficiary of the performance of the customers obligation. As per ICC International Standby Practices (ISP98), Standby LCs are issued to support 25
payments, when due or after default, of obligations based on money loaned or advanced, or upon the occurrence of non-occurrence of another contingency. These credits are used generally as substitutes for performance guarantees or securing loans. c. Revolving Letter of Credit In this type of LC, value of credit is reinstated automatically to its original value after each drawing. Importers who maintain an ongoing relationship with a supplier occasionally open revolving letter of credit. The amounts under such type of LC are reinstated in terms of value or time and payment is made accordingly.
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The Beneficiarys documents must comply with the terms and conditions of the Letter of Credit for Issuing Bank to make the payment. The Beneficiary is exposed to the Commercial risk on Issuing Bank, Political risk on the Issuing Banks country and Foreign Exchange Risk in case of Usance Letter of Credits.
goods, terms of sale, port of shipment and port of destination, value of goods, unit prices, shipping marks, date, name and address of buyer and seller etc. The buyer and seller information must correspond exactly to the description in the LC. The main use of commercial invoice is to check whether the proper merchandise is shipped at an agreed price. c. Packing List: It is a document which shows the nature and number of goods put in each packer/container etc., with distinctive numbers or marks. This is generally needed by the importer when he is importing different types of sizes of merchandise so that he may identify the nature of goods in each package or when an importer is importing goods for ultimate direct distribution to various suppliers. It is also used by customs for checking the goods on random basis or otherwise. Thus it mainly facilities easy identification of goods in each package/container by the importer customs etc. d. Certificate of Origin: It is a document which specifies the country of manufacture or growth of goods or its origin. It is generally issued by the Chamber of Commerce. In some countries, the customs law requires this certificate to be produced before clearance of goods and assessment of duty. e. Certificate of Analysis and Quality (Inspection Certificate): It is a certificate which indicates the inner composition, quality, technical composition and intricate nature of the goods broadly described in the invoice. This certificate may be given by the exporter himself or an institution/organization which is competent or nominated to give such a certificate. In certain types of goods like chemical, food articles, clothes etc., this certificate is generally required called for so that goods exported conform to the desired quality/standard analysis. C. Transport Documents a. Bill of Lading (B/L): Bill of Lading is a format receipt given by the ship owners or their authorized agents stating that the goods mentioned therein (quantity, quality, and description) are shipped to specified date and vessel and are deliverable to the person mentioned therein or to his order after payment of all dues of shipping company. The main functions of B/L are- to act as an evidence of contract of affreightment, a receipt for the merchandise shipped and a document of title of goods. The documents evidence control of goods and also serve as 28
evidence of the carriers obligation to transport the goods to their proper destination. The different types of B/L are: clean B/L, on board B/L, charter party B/L, stale B/L, and house B/L. b. Air Way Bill: It is an acknowledgement issued by an airline company or their authorized agents stating that they have received the goods detailed therein (number of packages, quantity and nature of goods) for dispatch by air to named consignee at the address stated therein. c. Truck/Rail Consignment Note: It is used when trade is between two neighboring countries physically attached together or when one of the trading partners is a landlocked country like Nepal. It is issued by trucking or rail Transport Company and goods are usually delivered against surrender of consignee copy. It is usually issued in a non-negotiable form. D. Risk Covering Documents: a. Insurance Policy: It is a document detailing all the terms of a contract of insurance and risk covered by the contract. Normally it is issued in negotiable form and rights under the contract could be assigned by endorsement and delivery. E. Discrepant Document After receiving the documents, it needs to be thoroughly checked with terms and conditions of L/C. If any document contains any discrepancies which are not accepted by the issuing bank, then it immediately informs the settlement bank and the client within seven working days as per UCP Act. If the issuing bank fails to inform the settlement bank then the bank is bound to remit the payment even though the documents contain any discrepancies. If the client accepts the discrepancies then s/he immediately has to submit an acceptance letter to the bank before retiring the documents and remittance the payment.
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a. b. c. d. e. f. a. b. c.
The letter of credit number The importer The exporter Invoice number Amount in foreign exchange as per the invoice Serial number of Bi.Bi.No. form no.4 F. To refund the security deposit Original copy of Bi.Bi.No. form no.4 endorsed custom copy Copy of declaration form ( pragyapan patra) Customs duty payment receipt
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i. Check before filling the document so fill up the checking form. j. Type the L/C in software and send it to Advising Bank. k. If there is any amendment, then fill up the form and complete the procedure.
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there is no problem if they are not accepted then another set or documents would be ordered. Documents which were to be sent to respective branches were sometimes misplaced in such conditions all the documents of that particular day had to be rechecked.
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Strengths
Large network within the nation and outside the country. Customized and reliable service. Advance banking software (Finacle) implemented. Goodwill (Awarded as Bank of the year 2008 by the banker). Goal oriented, motivated and smart professional employees. Sound relationship with the correspondent bank and link ups in almost every part of the world. Very good relationship with the credit administration department of the bank as well as the governmental agencies concerned. Allocation of an entire flat for the department has made the department more spacious and easy to access.
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Weaknesses
The record keeping facility if the department is very poor especially at the physical level. The fact that the credit administration and TFD lies in different buildings can sometimes make the work tiresome and time consuming in urgent cases. Relatively high price compared to rival banks though quality of service is outstanding and the negotiations can be made in case of large transactions.
Opportunities
Prospects to enter into a new market. New rules and regulations by the government Increase in number of industries involved in trading of goods and services. Technological Advancement.
Threats
High competition from other competitive banks Political instability within the country Change in rules and regulation by the government Establishment of new commercial banks and its operation in various parts of the country.
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CHAPTER V
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5.2 Conclusion
Trade and Finance department are very important for the bank as it generates significant amount of profit for the organization. Trade and Finance Department of NIBL deals with Letter of Credit and Bank Guarantee. Letter of Credit facilitates customers to import as well as export the goods. Letter of credit is an instrument issued by a bank at request of its customer (applicant) where by it undertakes to pay value, provided all terms and conditions stipulated in LC have been complied with. . LC has been very important for the country like Nepal where there is significant volume of import than export. Bank Guarantee is a contract between the bank and beneficiary and the beneficiary has a legal right to enforce such an agreement to pay a specified sum of money either on simple written demand or a demand accomplished by stipulated documents in the event of default by the principal.
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international court as LC is governed by international articles of UCPDC. I have learned different tactics and techniques to resolve problems arising from LC. The 8 weeks long internship at NIBL did not only gave me an opportunity to learn about the basic activities of the various departments that I worked in but also helped me to shape my personality and character to greater extent. The valuable lessons that I learned apart from the basic activities of concerned department that I worked in are: Learned about the general banking practices and corporate culture. Learned to communicate and deal with the customers belonging to different classes. Learned to handle the grievances of the customers. Learned to be calm under the adverse conditions and tactfully handle the complex situations. Learned about the importance of time and punctuality. Learned to socialize with the professionals. Learned the importance of displayed emotion on the work place. Learned to use office equipments like fax, photocopy, cheque writer, printer etc. Learned to use different banking software like Finacle, Pumori Plus and MS office tools.
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APPENDICES
es (6)
Carrier
DC Application (3)
Do cu me Pa nts ym (7 en ) 13 t (8 ) or
Pa
(11 )
Reim bu rsin g B an k
ym en
Pay me nt
t( 12 )
ment Docu
s (8)
Negoti ati ng B an k
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Documents (10)
Payment (9)