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BBABI Internship Report by Sandeep Bhatt
BBABI Internship Report by Sandeep Bhatt
INTRODUCTION
1.1Background
Bachelor in Business Administration in Banking and Insurance (BBABI) program
was introduced in Pokhara University; BBABI is a four years program consisting of
eight semesters aiming to provide required mix of theory plus practical courses.
Besides; it has been growing as one of the demanding course of study that holds
several job opportunities. It aims at creating socially accountable, resourceful and
result oriented professionals as per demand of growing business scenario.
In BBABI course, every student should go through the eight weeks long internship in
any industry relating to their specialized subject in order to practically imply
theoretical knowledge in the real work place. Internship in BBABI is conducted for
the partial fulfillment of academic requirement of BBABI sixth semester. It provides
practical exposure and helps the students to understand corporate social responsibility,
develop corporate attitude and venture entrepreneurship. This is a great opportunity
for internee to know about the banking industry that has worked as a building block
for career development in this financial service sector.
As the topic is about the Customer Service Department of Nepal SBI Bank Limited,
this project report is basically focused on the services provided, tasks and other
general activities, which are done at the Customer Service Department.
1.2 Objectives
Every action is directed towards accomplishing certain objectives. Internship program
is in itself a new learning pedagogy, which provides the floor for the practical
exposure of theoretical knowledge. The general objective of the study is to understand
the banking organization, its structure, working procedures and risk associated with it.
However, the specific objectives of the study are:
To know the basic activities and operations of CSD (Customer Service
Department).
1.3Methodology
1.3.1
Organization Selection
among different fields related with the financial sector one of the major field is the
banking sector. Being the student of BBA, the internee has selected the banking sector
as destination, because banks are the key players in the financial market. Since the
specialization was done in Banking and Finance, the sample chosen was Nepal SBI
Bank Limited. The internship period was started after a regular follow up.
1.3.2 Placement
In NSBL, throughout my internship period, I was placed in Gaushala Branch.
Customer service department (CSD) was my main placement in NSBL. It was under
the supervision of MS. Asmita Nepal (Operation In Charge). Actually working in
other departments was not allowed but the chance to know about the operation of cash
and remittance department was allowed for last two weeks.
Table 1: Placement Table
Departments/ Weeks 1
1.3.3
Customer Service
Dur
Cash
atio
Remittance
n of
Internship
The duration of the internship period as declared by the Pokhara University is six to
eight weeks for the partial fulfillment of the degree of Bachelor in Business
Administration in Banking and Insurance (BBABI). I worked in NSBL Gaushala from
30 of 30of August to 20 of September from 10:00am to 5:00pm.
Table 2: Details of internship at NSBL
Address
Gaushala, Kathmandu
Working Hour
10:00 Am To 5:00 Pm
Starting Week
Ending Week
Working Duration
Internship Supervisors
Working Departments
1.3.4
Sources of Data
Data for this report were gathered from both primary and secondary source of
information collected through the period of internship.
Primary Source of Data
Internet surfing.
1.4Activities Performed
Intern was assigned to perform the banks day to day activities in regular working
hours and spend eight weeks. The actual work done by the internee during the intern
period can be demonstrated as below:
Table 3: List of activities performed
Departments
Performed Tasks
3
CSD
KYC follow up
4
Remittance
Cash
1.5 Limitations
This study has been conducted with certain limitations. Some of them are pinpointed
as follows:
Due to lack of time, study of each and every activities of the bank in depth was
not possible.
It does not give the detail view of the overall functioning of the bank.
As the internship period was during the closing of the fiscal year, the banks staff
had excess workload due to which they couldnt supervise the interne properly.
Being a student lack of technical knowledge in the respective field was another
factor which limits the report.
CHAPTER TWO
INTRODUCTION OF THE BANKING INDUSTRY
2.1 Banking Industry at a glance
A bank is an institution, which deals in money, receiving it on deposit from
customers; honoring customers drawing against such deposits on demand, collecting
checks for customers and lending or investing surplus deposits until they are required
for repayment. In the past, the bank used to just accept deposits from the savers of
money and give loans to the users of the money. Modern banks and their banking
process are more advanced than the ancient ones. In these days, it performs a wide
variety of functions. It is an agent of its clients, which remits money, provides
services like LC, guarantee etc. and collects incomes, commissions and pays expenses
on the behalf of them.
Some Definitions
Banks are financial institutions that fund in the form of deposits, repayable on demand
6
or in short notice.
- World Bank
Bank is a financial institution, which provides financial services that may be in the
form of accepting deposits, advancing loan, providing necessary technical advices,
dealing overt foreign currencies, remitting funds, etc.
Nepal Rastra Bank Act 2002
Central Bank
Commercial Bank
Industrial Bank
Saving Bank
Exchange Bank
Bank was set up in Baisakh 14 2013 B.S.as the central bank of the country. However,
as the Central Bank, Nepal Rastra Bank had its own limitations and as a commercial
Bank, it was not logical for Nepal Bank Ltd. to go to unprofitable sectors. So to catch
up with these problems, the government established Rastriya Banijya Bank in 2022
B.S (1965 A.D), as a fully state owned commercial bank with full government
ownership. Then the establishment of Nepal Industrial Development Corporation
(NIDC), Employee Provided Fund, Agricultural Development Bank etc. followed the
formation of financial institutions.
In the context of banking development, the 1980s saw a major structural change in
financial sector policies, regulations and institutional developments. Government
emphasized the role of the private sector for the investment in the financial sector.
With the adoption of the financial sector liberalization by the government in 80's
opened the door for foreign Banks to open Joint venture Banks in Nepal. As a result
various banking and non-banking financial institutions have come into existence.
Nabil Bank Limited, the first foreign joint venture bank of Nepal, started operations in
July 1984 .With the passage of time several other joint venture bank has been
established such as Indosuez Bank Limited (Nepal Investment Bank) in 2042 B.S.,
Nepal Grind lays Bank (Standard Chartered Bank) in 2043 B.S., Himalayan Bank
Limited in 2049 B.S., Nepal SBI Bank Ltd in 2050 B.S and so on. During two
decades, Nepal witnessed tremendous increment in number of financial institutions.
Nepalese banking system has now a wide geographic reach and institutional
diversification.
Global Bank, IME Finance & Lord Buddha Finance company merged together
commercial bank.
Machapuchchre Bank and Standard Finance merged to establish a better
2010
2011
2012
2013
Institutions
Commercial
27
31
32
31
Banks
Development
79
87
88
88
Banks
Finance
79
79
69
78
Companies
Micro-finance
18
21
24
21
Financial
Development
Banks
Source: www.nrb.org.np
Primary Functions:
Acceptance of Deposits:
Savings deposits
10
Fixed deposits
Recurring deposit
Miscellaneous deposits
Demand loan
Term loan
Education Loan
Cash Credit
Bank Overdraft
Discounting of Bill
Secondary Functions
Issuing letters of credit, travelers' checks, circular notes etc.
Undertaking safe custody of valuables, important documents, and
securities by providing safe deposit lockers.
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.
Collecting and supplying business information.
Issuing demand drafts and pay orders and
Providing reports on the credit worthiness of customers
11
Agency services, Technological services, advisory services, Easy Money Transfer are
the ones that banks can still work upon and broaden their service portfolio.
CHAPTER THREE
INTRODUCTION OF NEPAL SBI BANK LIMITED
3.1 Introduction
Nepal SBI Bank Ltd (NSBL).is one of the leading commercial bank in Nepal
established in 1993 as a subsidiary of State Bank of India. It is the first IndoNepal joint venture in the financial sector sponsored by three institutional promoters,
namely State Bank of India(SBI), Employees Provident Fund and Agricultural
Development Bank of Nepal through a Memorandum of Understanding signed on 17
July 1992. NSBL was incorporated as Public Limited Company at the Office of the
Company Registrar on 28 April 1993 under Regn. No. 17-049/50 with an Authorized
Capital of Rs.12 Crores and was licensed by Nepal Rastra Bank on 6 July 1993 under
license No. NRB/l.Pa./7/2049/50. Nepal Rastra Bank granted fresh license to NSBL
classifying it as an "A" class licensed institution on 26 April 2006 under license No.
NRB/I.Pra.Ka.7/062/63.
Nepal SBI Bank Ltd. is a subsidiary of State Bank of India which has 55 percent of
ownership and rest is held by Employee Provident Fund (15%) and general public
(30%). In terms of the Technical Services Agreement between SBI and the NSBL, the
former provides management support to the bank through its expatriate officers
including Managing Director who is also the CEO of the Bank. Central Management
Committee consisting of the Managing Director, Chief Operating Officer, Chief
Financial Officer and Chief Credit Officer oversee the overall banking operations in
the Bank. The Bank was established in July 1993 & is now having 538 Nepalese
13
In billion(Rs)
Authorized Capital
Issued Capital
2.1
Paid Up Capital
2.09
In Billion (Rs)
Issued Capital; 1,869
14
Proportion
(%)
55
General Public
30
15
of
Wealth
Ownership Structure
15
Credit
Chief Credit
Officer
Managing
Chief
Finanacial
Officer
Audit
Chief
Operating
Officer
Company
Secretary
Credit
Appraisal &
Sanction
Treasury and
Forex
Department
Accounts and
Administratio
n Department
Share
Department
Documetn
Follow up and
NPA
Department
Reconcialiatio
n Department
Human
Resources
Depatment
Law
Department
Business
Development
Department
System
Department
Internal Audit
Department
Branch
Control &
Inspection
Regional Offices
areas, NSBL aims to provide customers with a wide array of offerings catering to all
the banking needs. The following are the major products and services offered by
Nepal SBI bank to its customers through its nationwide branches and varied agents:
3.5.1 Deposit and Account
The Nepal SBI bank accepts deposits from its customers through four major types of
accounts to accumulate funds from the dispersed general public. The types of
accounts are:
Saving account
Current account
Call Account
Fixed Deposit Account
Saral Bachat Khata: It is one of the most popular deposit account products of
the bank targeted towards mid to low income group of people with lowered
commitment.
Varistha Nagarik Bachat: Targeted at individuals of age 50 years and above,
this product provides customers with added benefits including higher rate of
interest.
Karmachari Bachat Khata: This account was launched with special focus on
groups of salaried employees from government and non-government
organizations.
Shareholders Account: Respecting the interests of the shareholders, the bank
has off ered to all its public shareholders, accounts with no minimum balance
requirement. They can also receive the dividends and other payments by the
bank in the same account
3.5.2
.
Loans and Advances
Corporate and Business Loans: The bank offers loans to large corporate and
17
3.5.3
Remittance
The major remittance services provided by Nepal SBI bank are in the form of SWIFT
transfer, Demand draft, Telegraphic Transfer etc. Following are the types of
remittance services offered to public:
money to Nepal.
Domestic Remittance Service: Bank started domestic remittance service in
partnership with Prabhu Money Transfer. This product allows customers to
send and receive money to and from any part within the country.
SBI Nepal Express Remit: Nepali migrant workers residing and working in
India can remit money at minimal charges from more than 15,000 branches of
State Bank of India located in various parts of India. We are now receiving
more than 600 remittances on average per working day.
3.5.4
Card
Nepal SBI Card: This is ATM cum Debit card which can be used for cash
withdrawal as well as for purchases in more than 3,00,000 merchant outlets in
Nepal and India. card is the ordinary debit card provided to the saving
accountholders of NSBL. Customer can use these cards at any ATM terminal
of NSBL. It is VISA card. The name of the account holder is mentioned in the
card.
prepaid card can be instantly purchased from NSBL Branches and minimum
deposit balance of NRs 1,000 must be maintained to operate the card.
3.5.5 Other Services
The other services include the wide variety of services as shown below:
E-Banking: It facilitates the customer to view the account operation, transfer
money from one account to another account of NSBL. For this the customer
has to fill the e-banking form and after few days they will receive the pin and
cell phone..
Nepal SBI Mobile Wallet: Its a service which uses mobile phones to provide
access to financial services. This mobile wallet service system allows users to
store cash balances in their mobiles phones. Bank customers can transfer the
fund to the non account holders; make payment of utility bills and many more
using this service. They can deposit and make the withdrawals using mobile
phone. For this they have to open mobile account in NSBL and the secret code
will be provided to them after few days for using this service.
Safe Deposit Lockers: Looking at the varying needs and wants of the
customers, NSBL offers locker facilities of various sizes as per customers
preference and convenience of location. Customers availing of this facility
enjoy not only peace of mind in terms of security of their valuable belongings
but also one of the most attractive rates and ease of location. Bank will charge
NTC Landline phones, UTL phones from the counters of Nepal SBI bank.
Extra Hours Banking Services: For the office working customers NSBL
provides evening counters in New-Road, Teku and Boudha Branches only for
accepting the deposits from 5:00pm to 7:00 pm every evening on working
19
60
50
40
Deposits
30
Advances
Investment
20
10
0
2066-67
2067-68
2068-69
20
Total Income
1.6
1.4
1.2
1
Total Income
0.8
0.6
0.4
0.2
0
2066-67
2067-68
2068-69
Net Profit
600
500
400
Net Profit
300
200
100
0
2066-67
2067-68
CHAPTER FOUR
21
2068-69
Customer Counseling
consent, with a notice by the account holder with or without assigning any
reason, with prior notice by the bank with valid reason and at the instruction of legal
authority.
During the internship period, the CSD officer recognized that customer here came to
close their Bharat Yatra Account and open the simple saving account because of
additional charges in operating. To close the account, a customer has to fill up the
form and return the check book and ATM/ Bharat Yatra card. They have to mention
the reason for closure of the account. NSBL charges certain closing charge while
closing the account.
25
Scheme
Current
Charges (Rs)
1000
Saving
Current
500
500
Saving
300
26
Account holder has to fill up the e-banking form and maintain authorized
signature.
After verifying the details form is sent to the card department and after 1
week account holder will get the facility of e-banking.
The CSD officer provides the username and password along with the
necessary information after making the entry in the register to the user.
The account holder then can use internet banking service for balance inquiry,
statement, and fund transfer etc. simply getting log in to e-banking application
presented in home page of NSBL i.e. www.nepalsbi.com.np
4.1.7 Handling Incoming Calls
Being the customer oriented department CSD handles numerous phone calls and
interns also play a crucial role in handling phone calls and solve the queries of the
customers.
4.1.8 Filling up the KYC Form and Follow Up
Know Your Customer (KYC) is detail information about the Customer. KYC is the
fundamental principles used in identifying who the customers are, their background
information and monitoring their transactions in order to mitigate the banking risk
arising out of these Customers. This KYC guideline is recently issued by NRB to
categorize the customer as high risk, medium risk and low risk customer. The CSD
Officer is responsible for filling up the KYC form to identify the customer. Apart
from it, existing customers are also informed and requested to fill up their respective
KYC form as an important update of their details.
4.1.9 Making Entries in Respective Register
The CSD officer maintains the register and makes the every entry of all documents in
their respective register. The entry of demand draft, TT, RTGS, SWIFT, BYC, EBanking, ATM etc are done by CSD officer after the office hour is over.
27
CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
NSBL Bank is one of the leading commercial bank in Nepal which aims to position
itself as a progressive, cost effective & customer friendly institution providing
comprehensive financial and related services to its customers. During the two
month of internship at NSBL, internee was provided with ample opportunities to get
an insight of core operation of the host organization in the complex business
environment, working with diverse mix of staff from different background and from
different works of life with profound knowledge and provided an experimental and
holistic learning experience. The study refers to the Customer service Departments
(CSD) that deals directly with the customers enquiries, handling complaints and
service distribution. NSBL is able to maintain strong relationship with its customer
through various customer oriented products and services.
Prior to internship, my knowledge was limited within the books. The theoretical
knowledge gained about the customer relation was actually implemented in the
practical banking settings. Internship has worked over the development of
communication and interpersonal skill of the internee. The Internee has also learnt
that the behavioral issues are most important inside the organization. Customer feel
satisfied when they are behaved properly. Their queries are needed to be answered in
a friendly way so as to retain them in the organization.
In conclusion, it can be conveyed that CSD is the most sensitive department. It is very
much clear that the bank realizes the huge part of income through customer
28
satisfaction. Although, other departments also play sensitive role for the success of
bank, huge credit goes to customer service department as it gives the first impression
to the customers. Hence, the bank must analyze such factors to gain success in the
future period through fulfilling customers needs and demands.
It was really a great opportunity to serve as an intern in such a successful bank. It was
learning by doing kind of opportunity and had been successful to make a change
within myself. Internee is very much pleased to conclude that NSBL is one of the best
banks with friendly environment and excellent customer service. It is your bank
delivering the best financial products.
Basic activities and operations of CSD and its role in overall functioning of a
commercial bank.
The importance of the proper organization culture and its effect on the
professional
working
environment.
This
relates
to
the
effective
The customers of any business organization are the key to the success of the
organization. So, the organization should not forget its existing customer and
try to retain its customers as well as attract new customers.
The real working environment and practical exposures are quite different
from the theoretical knowledge that we have learned in class room.
Using various office equipments like photo copy machine, cheque writer, etc
and software like Finacle.
30