1

CHAPTER I
INTRODUCTION

1.1 Background of the study

Internship is short term training in a reputed organization as per partial fulfillment of BBA
program. The students are assigned for the internship in their final year depending upon their
specialization. Here, the interns are the trainee who tries to be acquaintance with the practical
knowledge regarding organization problems. For that they virtually act a staff and learn various
functions of the organization. Internship is conducted from a college so as to be distinct with that
of other student. The students are assigned to different departments and need to summit reports
regarding the activities done in the organization. Being an intern allows the students the
opportunity to gain real life experience of overall banking activities and is working environment.

BBA is four year graduate level program, whose mission is to develop socially responsive,
creative and result-oriented management professionals in the rapidly growing business sector. In
this 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 BBA is conducted for the partial fulfillment of academic requirement of
BBA seventh semester. It provides practical exposure and helps the students to understand
corporate social responsibility, develop corporate attitude and venture entrepreneurship. To fulfill
this very purpose, I worked in Machhapuchchhre Bank Limited, Chabahil Branch, Nepal from 9 th
January 2019 to 6th March, 2019.This report is prepared on the basis of careful study and the work
done in the bank. The report focuses in functioning and workplace situations of bank. The major
functions of this branch are deposit, withdrawal, account opening, clearance of checks, and
collecting cash on behalf of its clients, opening bank draft etc. Thus, the internship has proved to
be a wonderful and enlightening experience for me. Not only did I get the golden opportunity to
gain practical, in-the-job experience but I also got to utilize my conceptual knowledge and enhance
my managerial skills.
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1.2Meaning and Definition of Bank

A bank is a financial intermediary which collects deposits and lends in the form of loans.
It holds deposits from individual and business in the form of checking and saving account and
certificate of deposits of varying maturities while issues loans in the form of personal and business
loans as well as mortgages. Banks may also provide financial services such as wealth management,
currency exchange and safe deposit boxes. Due to their importance in the financial stability of a
country, banks are highly regulates in most countries. In most countries banks are regulated by the
national government or central bank.

Nepal Rastra Bank Act 2002 defines bank as ''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 over foreign currencies, remitting funds, etc.''

(Nepal Rastra Bank, 2002)

World Bank defines banks ''Banks are financial institution that fund in the form of deposits
repayable on demand or in short notice.''

1.3 Description of organization ( MBL)

Machhapuchchhre Bank Limited was registered in 1998 as the first regional commercial bank from
the western region of Nepal. The ’A’ class commercial bank started its banking operations from
its head office located in the foothills of Machhapuchchhre mountain peak in the picturesque town
of Pokhara since year 2000. It was named after the famous peak Machhapuchchhre (fish tailed)
located in Himalayan region of Nepal. The Bank facilitates its customer needs by delivering the
best of services in combination with the latest state of the art technologies and prudent international
practices. The Bank is the pioneer in introducing the latest technology in the banking industry in
the country. It is the first bank to introduce centralized banking software, GLOBUS BANKING
SYSTEM of Temenos NV, Switzerland. The bank provides modern banking facilities such as
Any Branch Banking, Internet Banking, Mobile Banking, Safe Deposit Locker facilities, Utility
Bill payment (Telephone & Mobile), ATM (VISA Debit Cards) to its valued customers. Besides
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these, the Bank is providing 365 Days Banking and Evening Counter services to the customers
through many of its offices.

The Bank has been promoted by highly renowned Non-Residential Nepalese, prominent business
man and industrialists with a vision and dedication to provide the best financial products and
services in the most efficient and professional manner. Now with a paid up capital of over 8.05
billion rupees, 86 Branch Offices, 2 Extension Counter, 37 Branchless Banking Units and 101
ATMs spread all across the country, it is one of the full fledged national level commercial banks
operating in Nepal. It takes pride in having its own buildings for its Head and Corporate Office in
Lazimpat, and Branch offices in Naya Bazar, Pokhara, Jomsom, Baglung and Damauli. The Bank
is equipped with a robust infrastructure and state of the art technology that is dedicated to providing
the best banking experience to our customers. The Bank is powered by a highly robust & stringent
risk management system, comprehensive control & monitoring system and a strong policy focus
with zero tolerance when it comes in complying with policies and manuals, guidelines, directives
and functions with substantial ethics.
(Machhapuchhre bank limited, n.d.)

1.3.1Vision, Mission and Objectives of MBL

Vision:
To become the bank of the first choice of the people.
Mission:
To be one of the most preferred banks in Nepal, easily recognized as the bank which satisfies and
cares for its customers through quality service, innovative products, professionalism and wide
branch network, offering full array of financial services using modern technology and with good
corporate governance practices.
Objective: (Values)
With the objective of supporting the transition from rule based to attitude based behavior, the Bank
is functioning with the following five core values:
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1. Integrity: Highest level of integrity / absolute honesty in all the business conduct and dealings
with customers, staff, regulators, and other stakeholders.
2. Accessibility: Easy accessibility through traditional as well as modern means of
communication.
3. Value Creation: For shareholders, customers, employees and the nation.
4. Quality Service: Through unmatched professionalism and excellent customer care.
5. Stewardship of Resources: With the feeling of ownership and accountability.

1.3.2Major Markets and Customers

The Bank is the pioneer in introducing the latest technology in the banking industry in the country.
It is the first bank to introduce centralized banking software, GLOBUS BANKING SYSTEM of
Temenos NV, Switzerland. The bank provides modern banking facilities such as Any Branch
Banking, Internet Banking, Mobile Banking, Safe Deposit Locker facilities, Utility Bill payment
(Telephone & Mobile), ATM (VISA Debit Cards) to its valued customers. There are 86 Branch
Offices, 2 Extension Counter, 37 Branchless Banking Units and 101 ATMs spread all across the
country, it is one of the full-fledged national level commercial banks operating in Nepal. It takes
pride in having its own buildings for its Head and Corporate Office in Lazimpat, and Branch
offices in Naya Bazar, Pokhara, Jomsom, Baglung and Damauli.

The major markets of MBL are general public, business and companies, hotels and restaurants,
industries. MBL accepts various types of deposits from public especially from its clients, including
saving account deposits, recurring account deposits, and fixed deposits. On the other hand it
provides loans and advances of various forms, including an overdraft facility, cash credit, bill
discounting, money at call etc.

The major customers of MBL are individuals, institution, finance companies, restaurants,
schools/colleges and students in mobilizing the fund. Similarly in terms of source of fund the
depositors with demand deposit, saving deposits and fixed deposits are its customers. The top ten
major customers of MBL are listed below:

1) Medhavi College
2) Avani Advertising Pvt. Ltd.
3) Griha State Pvt. Ltd
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4) Alfa Beta Consultancy

5) Udhar Trade Concern
6) Brandworks Pvt. Ltd.
7) Baburatna Construction
8) Atut Saving and Credit Cooperatives
9) Impact Advertising Pvt. Ltd.
10) Media con pvt. Ltd.

1.3.3Major Products and Services of MBL

MBL provides the various product and services that fulfills the requirement of the customers. The
major product and services are Deposits, Loans, Remit, and others described below:

1) Deposits

Deposits are the main source of the fund. Whether your needs are for short term or long term,
Machhapuchchhre Bank Limited offers you wide range of deposit plans that enables you to
maximize your savings and can offer good return on investment. MBL collects the deposit under
different types of accounts:

A. MBL Current Deposit

This deposit scheme is also referred as checking deposit which provides flexibility of withdrawal
without any terms and conditions. Account can be opened in the names of Individuals (singly or
jointly), Proprietary Concerns, Partnership Firms, Companies, Corporations, Trusts, Government
Agencies and other Organizations. Opening a current account with Machhapuchchhre Bank
Limited is simple. Just you need to fill up the prescribed (below) documents, sign on the Signature
cards and minimum balance as specified by the bank from time to time; your account will be
opened instantly.
The general features of MBL Current accounts are:

i) There is no restriction for number and amount of transactions.

ii) Allowed to deposit and withdraw funds from any branch of Machhapuchchhre Bank

Limited.
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iii) Account is operated by cheque.

iv) Automatic funds transfer to and from call deposit account as per arrangement.

v) Collection of Cheques, Draft, Bills, etc. as per instructions of the customer.

vi) Standing Instructions of the customers are accepted.

vii) Facility of Internet Banking Services.

viii) Can be opened both in Local currency and foreign currencies.

ix) Loan and Overdraft facilities are granted through current accounts.

B. MBL Saving Account

A saving account is a bank account where you can store money that you don’t need right away but
still keep it easily accessible. Interest is calculated and credited to yours saving account on
minimum daily balance. Any balance below minimum amount will be liable to incidental charges
as fixed by the bank from time to time. Customer opening this account gets a free cheque book.
Some of the major saving account products of MBL are:

1) MBL Smart Bachat Khata

2) MBL Student Saving Account

3) MBL Premium Saving Account

4) MBL Online Account

5) MBL Remittance Bachat Khata

6) MBL Balbalika Bachat Khata

7) MBL Normal Saving account

8) MBL Pewa Bachat Khata

9) MBL Salary Management account

10) MBL Samman Bachat Khata

11) MBL Shareholders Saving Account

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12) MBL Yuba Bachat Khata

C. Fixed Deposit
Fixed Deposits are accepted for minimum 3 months and maximum for any period agreed upon.
Interest will be paid quarterly, or as agreed at the time of deposit. The interest of the deposit can
be credited to Current account or saving account, as the case may be. Fixed Deposits can be
opened with minimum amount of Rs.50, 000.
2) Loan
The second important function of a banker is to lend money. The business of lending is usually
done in the form of loans and advances, overdrafts, cash credit, and discounting of bills of
exchange. The fund collected from the depositors is lent to the various customers and charge
interest. In order to balance the liquidity and profitability properly, bank is required to use their
avail funds properly keeping statutory requirement of NRB. The various loan products of the
MBL are:

1) MBL Care Credit

2) Home loan
3) Hire Purchase loan
4) Auto loan
5) Education loan
6) SME loan
7) MBL Mortgage Loan
8) MBL Micro-Lending
9) Term Loan
10) Working Capital Loan
11) Trust Receipt Loan

3) Remittance

Remittance is one of the major incomes generating service of banks. Remittance service of the
bank is beneficial both to the business and personal customers as it make the transfer of money
easier. It covers large percentage of its national income. It facilitates the sending and receiving
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funds to/from various places. It can also promote access to financial services for the sender and
recipient increasing financial and social inclusion.

Under this service, both Domestic remittance and Foreign inward remittance facility is
served with a purpose to provide complete remittance solution to the valued customers of the Bank.
Machhapuchchhre Bank offers number of remittance products to cater the customer need for
transferring their money in and out of the country through;

The lists of MBL’s partner remittance companies are as follows:

1) IME Ltd
2) Prabhu Money Transfer
3) CG Remit Pvt. Ltd
4) Xpress Money Services
5) Reliable Remit (Reliable Development Bank)
6) Sewa Remit Pvt. Ltd
7) Himal Remit (BATAS Associates Pvt. Ltd)
8) Western Union (Annapurna Travel & Tours)
9) Best Remit Pvt. Ltd
10) Samsara Remit
11) IPAY Reliable Remit
12) Easy Link Remit
13) City Express Money Transfer Pvt. Ltd

The currencies that can be remitted from Machhapuchchhre Bank Ltd are:

1) US Dollars (USD)
2) EURO
3) Great Britain Pound (GBP)
4) Japanese Yen (JPY)
5) Australian Dollar (AUD)
6) Indian currencies (INR)
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4) ATM Services
Machhapuchchhre Bank’s widespread network of ATMs makes it easy and convenient for
customers to bank 24 hours a day. With around 101 ATMs spread all over Nepal, we ensure that
you can easily transact from MBL ATM network. User-friendly graphic screens and easy to follow
instructions in both English and Nepali language of your choice makes MBL ATM Banking a
smooth experience. Debit card issued by Visa and Union Pay are accepted at all ATMs points of
Machhapuchchhre Bank Limited. Machhapuchchhre Bank provides the opportunity to enjoy the
benefit of electronic transactions (cash withdrawal, purchase, fast cash transaction) by availing the
following Visa card types:
1. MBL Visa debit card - Domestic (valid in Nepal and India only)
2. MBL Visa debit card – International (valid in all countries except Nepal and India)

1.) MBL Visa debit card:

Domestic (valid in Nepal and India only) Customers can apply for MBL Visa debit card –
Domestic from any of our branches. This card can be used in all ATMs and POS displaying Visa
logo in Nepal and India.

Features:

• Valid in Nepal and India only

• Signature based debit card.
• Accepted widely and secure transaction.
• Supplementary cards can be issued to customer’s spouse, children or parents.

2.) MBL Visa debit card – International:

Customer can now apply for MBL Visa Debit Card – International from any of our branches.
This card can be used in all Visa ATMs and Visa merchants worldwide.
Customer must meet the following criteria to apply for MBL Visa debit card – International.

 Must have convertible foreign currency account in any of our branches

 Valid Visa and confirmed air ticket for travelling abroad
 Nepal Rastra Bank permit for foreign currency for travelling to abroad.
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5) MBL Mobile Money (M3) Plus

Bank on-the- go with a host of banking services offered across your mobile phone which fulfill
your all banking needs. With Machhapuchchhre Bank Mobile Banking discover quick, simple
and convenient way to take command of your bank account, on your mobile phone.

Features of M3 Plus:

1) Convenient way to access your account

2) Internet/GPRS based

3) Standing instruction of payment

4) Customers can open fixed deposit from mobile

5) Interbank money transfer service

6) Safe and secure banking

7) Mobile recharge, top-up, bill payment, e-wallet top-up, credit card bill payment

8) MBL branch and ATM location can be easily detectable

9) Information about forex and share market

10) C-ASBA service

6) Internet Banking:

MBL Internet Banking is a web-based online banking service that also provides a one-stop
platform to access majority of banking services from any part of the world 24×7. By using MBL
online-banking service, customers can safely enjoy a host of services including access to your
account information, loan account details, detailed statement of accounts, complete track of your
transactions, fund transfer to any account in the Bank, utility bill payments, MBL credit card bill
payments, activity log, personal updates, etc. The internet banking service is enabled with a two-
tier authentication system using a verification of a One-Time Password (OTP) system. Hence,
customers can safely transfer funds across accounts using this enhanced security features, which
executes each transaction only after two levels of authentication is verified.

7) MBL Visa Credit Card:

MBL Credit Cards offers a host of benefits, offers and features to cater to your needs. It is a short-
term credit facility provided to the customers against screening of customer against pre-set credit
scoring methods. MBL Credit Card is a card that provides its card holder a revolving line of credit,
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the size of which is generally determined by the income source, financial history and other
requirements as per the regulations determined by the Management of the Bank and Nepal Rastra
Bank from time to time.

MBL Visa Credit Card (Domestic) is issued in Nepalese Rupees, which shall be valid in Nepal
and India only. These cards can be used in Nepal and India for cash withdrawal and/or for making
purchase transaction through POS terminal.

8) MBL Dollar Prepaid Card

MBL Dollar prepaid cards offer individual travelers the most convenient way to hold and access
currency abroad. It is a secured and convenient alternative to carrying physical cash during travel.
Customers' demands for FCY exchange facility and foreign currencies shall be addressed
effectively with MBL Dollar prepaid cards as physical cash may not be always available with the
Bank. It is a pre-funded card, one only spends the money loaded on it which helps to minimize
frauds and control spending habit of the card holder as well.

Some of the facilities available from MBL Prepaid Card:

1) MBL Dollar Prepaid card is denominated in US Dollars and is valid worldwide.

2) Customers do not need to open an account for the issuance of prepaid card.

3) Cash Withdrawal

4) Fast Cash

5) Balance Enquiry

6) PIN Change

7) Payment of Purchase of goods/services at the merchant locations (through POS) without

any charge.
8) Purchase of goods/services through E-commerce site (as permitted by NRB).

9) Branchless Banking Unit:

Machhapuchchhre Bank Limited is providing banking service through 37 BLB units spread in
different rural part of the country. The bank appoints business correspondent known as agent, who
perform transactions on behalf of the bank. The agents are provided with the POS machine and
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magnetic chip card for operation of banking transaction. Through these BLB units Bank is
providing services like account opening, deposit collection, cash payment, remittance and
accepting loan application.

10) Locker facility

MBL offers locker facilities of various sizes as per customer’s preference and convenience
of location. Customers availing of these facilities enjoy not only peace of mind in term of security
of their valuable belongings but also one of the most attractive rates and ease of location.

1.3.4 Organization Design and Structure

Organizational structure determines how the roles, power and responsibilities are assigned,
controlled and coordinated, and how information flows between the different levels of
management. The organizational structure of MBL is presented in the following diagram:

Chairman/BOD

Chief Executive Officer

(CEO)

Deputy CEO Internal Audit

Trade Finance

Department Card & Remittance

Heads

Accounts

Credit Administration

Cash & Transfer

Figure 1: Organizational Structure of MBL

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The organizational structure of MBL consists of Chairman at the top most position followed by
CEO who is directly accountable to the Chairman and the CEO is followed by Deputy CEO. There
are three Assitant General Managers in MBL holding the responsibility of Corporate Banking,
Retail Banking and IT, Card, Remittance and Product Development Department.

Table 1: Board of Directors

Chairman Dr. Birendra Prasad Mahato

Director Mr Suman Sharma

Independent Director
Public Director
Public Director
Public Director
Mr. Jaya Mukunda Khanal
Mr. Ram Man Shrestha
Mr. Bishow Prakash Gautam
Mr. Omesh Lal Shrestha
(Machhapuchchhre Bank, 2018)

The Board of Directors is the apex body of the bank. It formulates policies as well as strategies
and provides guidance to the management. The Board of Directors consists of six members in total
with one chairman, one director, one independent director and three public directors.

1.3.5 Financial Structure

The Financial structure is the way in which a company’s assets are financed, such as short term
borrowing, long term borrowing and shareholders’ equity (promoters and simple).

Table 2: Financial Structure of Machhapuchchhre Bank Limited

S No. Particular Amount (NPR)

1 Authorized Capital 10,000,000,000

2 Issued Capital 8,055,693,000

3 Paid up Capital 8,055,693,000

(Machhapuchhre bank, 2018)

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The above table shows the financial structure of Machhapuchchhre Bank Limited. Here, the
Authorized Capital of MBL is NPR 10,000,000,000 Issued Capital of MBL is NPR 8,055,693,000
and the Paid up Capital is NPR 8,055,693,000.

Table 3: financial highlights of fiscal year 2016/17

(Machhapuchhhre Bank ltd, 2016)

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The fiscal year 2016-17 summed up to be a satisfactory year for Machhapuchchhre Bank with a
year on-year profit growth by 45.01%. The Bank managed to earn a net profit after tax growth of
Rs. 404.26 million over the last fiscal year profit of Rs. 898.2 million by earning a net profit of
Rs.1, 302.5 million. The Operating Income alone increased by Rs.518.41 million (i.e. 41.11%).

The total portfolio of the Bank has increased by 14.47% reaching to Rs.110.50 billion. The deposit
portfolio of the Bank marked a growth of Rs.6.34 billion (growth by 12.12% over the last fiscal
year) reaching Rs.58.63 billion. Likewise, the loan portfolio recorded a 17.25% growth i.e. Rs.7.63
billion growth reaching Rs.51.87 billion. Similarly, the total balance sheet size/assets of the Bank
grew by Rs.9.47 billion i.e. 15.93% settling at Rs.68.93 billion. During the year, the net worth of
the Bank rose by 53.76% by jumping from Rs.5.34 billion last fiscal year to Rs.8.21 billion this
fiscal year. The investment of the Bank increased by Rs.123.83 million from Rs.6.09 billion to
Rs.6.14 billion this year.

The non-performing ratio declined significantly from 0.55% last fiscal year to 0.38% this year
owing to the robust and stringent asset quality management practices and highly efficient recovery
process of the Bank. However, increment from Rs.39.89 million to Rs.100.86 million was
observed in the loan loss provision this year. The interest income increased by 46.43% whereas
interest expenses also increased by 70.39%, thus leading to a 25.29% increment in net interest
income. Similarly, a growth by 28.84% was seen in the Other Income.

Furthermore, minor growths were seen in staff expenses (by 6.15%) and other operating expenses
(10.06%) during the period.

1.4 Objective of the Internship

As a partial fulfillment of the requirement of Bachelor of Business Administration program
of Purbanchal University, I was assigned to Machhapuchchhre Bank Limited, Chabahil Branch.
The objectives of the internship are as follows:
 To strike a balance between theoretical and practical knowledge and experience
 To indulge in the practical business /banking scenario
 To enhance communication, interpersonal and public relation skills through direct interactions
 To understand how Machhapuchchhre Bank Limited operates its activities
 To experience the professionalism in work culture and to learn for future prospects
 To be a valuable asset of the organization by contributing positive aspect.
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The main moto of internship is to make students understand the real work life scenario.
Theoretical knowledge is not only enough for future so the objective of internship can be obtained
through practical work. Internship not only help students to understand the work environment but
also help them to build confidence and maintain interpersonal and communication relation
amongst employees and customers (Maio, 2018). With the guidance of the supervisor of the
department the intern can understand the work procedure of the department and show diligence in
the work.

1.5 Limitation of the Internship

There were couple of limitations which are as follows:

 The time allotted for internship i.e. two months was definitely a short duration and is
insufficient for gaining right amount of knowledge
 Keeping in mind the issue of secrecy and confidentiality, the staff were hesitant in providing
information which also caused a barrier in gaining expected knowledge
 The report may not have complete information about the other department of the bank.
Almost most of the time was spent on CSD department.
1.6 Organization of the Report

This study has been organized into Six Chapters that are:
Chapter – I: Introduction
This chapter deals with the background of the study, statement of the problem, objectives of the
study, significance of the study its and limitations.
Chapter – II: Report Methodology
This chapter provides information about sources of data, nature of data, information and data
collection procedure and so on.
Chapter – III: Observation & Activities performed
This chapter highlights all the major activities and assignments undertaken during internship
period.
Chapter – IV: Analysis & Review
This chapter deals with different analysis regarding SWOT Analysis of the organization including
strength, weakness, opportunities & threats.

Chapter – V: Conclusion and Feedback

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This chapter includes the summary of whole internship. It concludes all the major findings and
learnings. Lastly, it provides some recommendations/feedback for improvements as well.

Besides above mentioned chapters, References and Appendix are also included at the end.
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CHAPTER II
REPORT METHODOLOGY
This report has been prepared on the basis of three months’ internship gained at
Machhapuchchhre Bank ltd with employees and operational knowledge gained is the major source
of primary data. Besides, official websites of bank, magazines, articles, annual reports, etc. are the
major sources of secondary data. Following methodologies are used to complete this report.
2.1 Organization Selection
In order to select organization, I first personally visited and dropped my college
recommendation letter and curriculum vitae at Machhapuchchhre Bank. The bank accepted my
request and I was provided opportunity to do my internship at this bank.
2.2 Placement
I was placed in the branch of Machhapuchchhre bank at Chabahil. There I got an
opportunity to work in Customer Service Department. Throughout my internship, I was able to
gain several knowledge and precious work experience.
2.3 Data Collection
This report has been prepared on the basis of 3 months’ internship experience gained at
Machhapuchchhre Bank. Interaction with staffs, observation, experience and operational
knowledge gained are the major source of primary data for this study. Beside these sources, official
website of Eton Technology, newspaper, annual report, etc. are used.
2.3.1 Primary Sources of Data: Interaction with staffs, observation, experience and operational
knowledge.
2.3.2 Secondary Sources of Data: Official website of Machhapuchchhre Bank ltd, newspaper,
annual report, etc.
2.4 Duration of Internship
As per the requirement of BBA Curriculum, one has to complete minimum of eight
weeks of internship at workplace. I did my internship at Machhapuchchhre Bank Ltd. I worked
in this company as an intern for three months starting from 9 th January to 6th March 2019. During
this period, I was exposed to Customer Service departments and I was able to gain good work
experience.
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CHAPTER III
OBSERVATION & ACTIVITIES PERFORMED
3.1 Activities Performed in the Organization
The internship program is designed by Pokhara University for the partial fulfillment of the
degree of Masters in Business Administration. Internship is simply the applied form of knowledge.
The purpose of internship was to provide hands on experience to the students along with the
academic rigor and preparing them for real work situations. Being a part of Machhapuchchhre
Bank Limited for 2 month as being the student of BBA was a great opportunity to learn practically
about the banking practices. As per the course standard of Purbanchal University, the students are
required to conduct the internship in fifth trimester for the minimum 8 weeks period. In addition,
for selecting the organization, I tried from my personal approach as well as from the college’s
support for which the college provided the recommendation letter for undergoing my internship
program.
In MBL, throughout my internship period I was placed in Customer Service Department at
Chabahil branch. Basically, customer service department is the front desk of any organization. It
is the place where customers make the first contact with the bank. The image and reputation of
bank depend upon the effective functioning of this department. This department is responsible for
carrying various activities starting from opening of an account to the value additional process as a
part of after sales service. The various activities that I performed at my department can be briefly
shown below:

Customer Service Department

Customer Service department is a primary level department that generally deals with
customers directly and regularly. This department is basically directed towards providing the
surface level assistance to the customers i.e. to provide general information about banking system,
product and services provided by the bank. The department is responsible for providing the basic
materials like deposit vouchers, cheque book, bank statement, balance certificate, ATM cards.
Customer Service Department is the face of bank. Customer Service Department is the place where
customer initially interacts with the bank. Customer service expands client focus to include
everything that happens within and around the bank, from the way staff greet clients, to the
atmosphere in the waiting room, to the matter in which clients complains are handled. The very
first thing that the people seek in the organization is the prompt service and the person at the
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customer service desk properly handles them. The people at the customer service desk must be
ready to sort out every problem at any moment. The customer service department can answer
questions, resolve problems, and help you establish new accounts and services, and providing
information on products, forms, and publications. The different activities done in CSD throughout
the internship period are:
1. Account Opening
2. Statement Printing
3. Scanning and Photocopy of Documents
4. Handling Customers Queries
5. ATM Card Issue
6. Cheque Book Issue
7. KYC update
8. Allotment of Account Number
9. Complain Handling
10. Phone Communication Handling
11. Signature Change
12. Updating the Records
13. Filing the Document

1. Account Opening: As an intern on the bank my responsibility was to open the account of the
customer who used to visit the bank. Some customers were not so much literate to open their
account. So, I used to help the by filling their account opening form.
Documents required for opening account are as follows:
i) Personal account/ saving account
a) Passport size photo
b) Photocopy of citizenship/ passport
ii) Joint account
a. Passport size photo of both applicant
b. Citizenship of both applicant
c. Both applicants should be present at the time of account opening
iii) Limited company account
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a. Complete account opening form

b. Passport size phots of signatories
c. Company stamp
d. Crtificate of incorporation
e. Tax registration certificate (PAN)
f. Board resolution
g. Memorandum and Articles of Association
h. Copy of identification of all signatories
i. Certificate of registrar of joint stock companies that the company is entitled to
commence business
j. Documents evidencing/operating address
k. Documents evidencing residental address of signatories, directors, benefical owners.
iv) Proprietorship / partnership account
a) Complete account opening form
b) Registration certificate
c) Tax registration certificate (PAN)
d) Partnership Deed
e) Copy of identification of all signatories
f) Document evidencing residential address of signatories, directors, benefical owners
g) Passport size photos of signatories

v) Association, committee, socities etc.

a) Complete account opening form
i. Registration
b) Trust Deed (registered)
i. Constitution
ii. Resolution from board of trustee/authorized personnel
iii. Copy of identification of all signatories
iv. Document evidencing residential address of signatories, directors,
benefical owners
c) Passport size photos of signatories
 22

d) Tax registration certificate (PAN)

2. Statement Printing:
I also used to check the statement that were printed to verify account number, account name,
identifies account holder, account holder’s signature and then provides respective bank account
statement print to respective customer. If the account type was Company account then I used to
put company’s stamp along with account holder signature for bank account statement print.
3. Scanning and photocopy of documents:
I used to scan & photocopy various documents like specimen signature cards, photographs,
citizenship, passports, etc. and entered into bank system so that it could be accessed easily when
it is needed.
4. Handling customer queries:
As we come across with different individuals, they certainly have different queries related to bank
services, schemes and its products. Different queries of different customers should be handling in
a very effective way so that customer gets satisfactory solution of their queries. While dealing with
customers first we need to listen to the customer patiently and understand their queries or problems
only after that we should provide the appropriate information or the solution as per customer’s
need in very polite manner. If we do not have the appropriate information about the customer’s
queries then we should ask to other staff and provide appropriate information to customer as
quickly as possible. That what I do in the CSD department.
5. ATM Card issue:
While opening a bank account, customer is inquired about the need of ATM Card. If customer is
willing to take ATM card service then “ATM FORM” is given to customer to fill. Once the form
is filled up Customer Service Department staff will verify it and send it for the further processing.
If customer wants Instant card then it is provided immediately after all the verification process is
done but if they want ATM with visa then it takes more than 15 days.
After 15-20 days bank receives the ATM card of the respective customer. When the customer
comes to collect the ATM card, Customer Service Department staff verifies the signature of the
customer and issue the ATM card to the respective customer along with ATM Pin number. Only
the account holder can collect the ATM card, if incase account holder is unable to come to collect
card then application specifying the person to whom bank can provide card along with account
 23

holder signature should be provided to bank and person who comes to collect card should show
their identity.
6. Cheque book issue:
When account holder used the entire cheque leaves bank issue cheque book to the customer, when
customer fill up the cheque requisition slip that is attached along with cheque book. Customer
cheque requisition slip submitted by the customer should be filled properly date wise and preserved
in the department. Cheque books are usually made in a day and are arranged in a chronological
order. Cheques can be issued to anyone other than the account holder but with the valid authority
proof from the account holder.
7. KYC Update:
Know your customer is detail information about customer. KYC is the fundamental principles used
in identifying who the customer are, their background information and monitoring their transaction
in order to mitigate the banking risk arising out of these customer. This KYC guideline is issued
by NRB to categorize the customer as high risk, medium risk and low risk customer. As per the
instruction, the internee distributed and helped the customer fill up the KYC form. For KYC
update, the internee was told to inform the customer who visited the bank and who don’t visited
the bank were informed through telephone calls.
8. Complain Handling: Most of the account related complains or any other problems regarding
banking products and services should be handled by customer service department. This department
is responsible for providing efficient information to the account holder and handles their questions
appropriately. Complains should be seriously taken and handled carefully in order to avoid such
mistakes in the future.
10. Phone Communication Handling: The customer service department is responsible for
handling phone calls coming from outside. It was my responsibility to answer questions of the
customers and provide account related information via telephone.
11. Signature Change: If any customer is willing to change his/ her signature for any genuine
reason, a form called” Specimen Signature Card” is given to fill it. Customer is also required to
submit the photo along with the documents such as Identity card/passport/ license for the
authentication. Customer Service Department staff will verify the form along with the documents.
Then Specimen Signature Card will be scanned and entered into the bank system. Hence the
customer can use his new signature for any banking purpose.
 24

12. Updating the records

The CSD personnel needs to update the records if any change has occurred to the customer’s
previously submitted information as soon as new information is provided to the CSD. If the
customers want to change their address, mobile number, signature etc. they should fill the form
and those forms should be updated in systems and should properly record in their respective files.
13. Filing and Documentation:
Filing and documentation are very important task that the Customer Service Department staffs do.
The entire paper work has to be done simultaneously to the computer work. There are different
files for filing different documents. The account holders’ form, their signature cards, and their
request slip all are filed in separate files. The void cheques are also filed. The request for debit
card issuance is mailed to the card center daily. Such request is printed out and filed in a separate
file. Similarly the account statement issued and cheque issued are printed and filed. I used to do
daily this type of work.
3.2 Intern’s Key Observation
Internship program in MBL was very interesting and I enjoyed working in banking environment.
This two month internship period, provides an opportunity to learn several thing which enhance
the intern knowledge about the banking activities, working procedure, process and functioning of
the banks. The most frequently I worked in CSD Department. The key things that I have observed
during my Internship period are as follows.
1) Number of customers visited bank to open new account on a daily basis.
2) The working environment is very friendly. From lower level to upper level employees
everyone seems to be friendly with each other.
3) The customer service desks lacks employees as compared to the flow of customers. There
was excessive flow of customers on Sunday and the day before any public holidays.
4) Staffs celebrated their happiness such as birthday, promotion etc with each others and
distributes sweets to everyone.
5) The customer service desks lacks employees as compared to the flow of customers. There
was excessive flow of customers on Sunday and the day before any public holidays.
6) The employees working in the bank are very hard laborious and work conscious, most of
the staffs work mostly overtime and some staffs come early in the morning to finish work
in time.
 25

Chapter IV
ANALYSIS & REVIEW
4.1 SWOT Analysis

A SWOT analysis (alternatively SWOT matrix) is a structure planning method used to

evaluate strengths and weakness, opportunities and threats and threats involved in a project or a
business venture.
Table 4: SWOT Analysis
Strength Weakness
 First class infrastructure and  Lack of Sufficient ATM in and
advance technology outside the valley
 Quality services  Lack of proper customer
 Goodwill grievance handling
 ABBS Facility  Card services are still in
 Proper strategic planning developmental phase

(https://int.search.tb.ask.com/search/AJimage.jhtml)

Opportunities Threat
 New investment opportunities  Political instability
 Growing international trade  Changing customer preference
 Introduction of innovative product and  Changing technology
services  Intense competition
 Installation of update technolog  Changing policies of the NRB
 26

4.2 Observed gap

Knowledge gained form academic course seems to be totally different in practice although
there is a huge gap between theory and practice, concept of theory is essential in the workplace.
Literature is the base to perform any task in the working environment. Socio culture factors,
interpersonal relationship, seem to be in theory only but in practice maintaining those kind of
relationship is a crucial task. Dealing with various types of customers effectively may seem simple
enough on textbooks while they are monumental task on practice.
When a student learns about something from their books, he/she gets a mental image as to
what should be. But after finishing my internship, I found that the textbooks and real life scenarios
are completely different matters. What was learnt in textbooks only provided me with imaginary
scenarios while real life situations are more dynamic in nature and need prompt decision making.
All the theory in the text books only taught me how a bank operates, its principles theories,
functions and its services, while none of those books gave me a glimpse of how a working
environment of bank really is. In conclusion. With growth banking sectors and financial institution,
it is necessary that text books as well as practical knowledge should be given to the student to
prepare them for their future.

4.3 knowledge gained

I was able to gain knowledge as well as the practical implementations of various related
theoretical knowledge after the two-month internship exposure. Although, all the lesson learned
cannot be expressed verbally because much of the knowledge gained is related to realization rather
than new knowledge, following are some of the important knowledge I gained from the internship:

 Learned to be a good listener and show interest in what a customer is saying

 Learned to handle grievances of the customers properly
 Learned the organizational culture and values
 Learned to properly use devices such as printer, scanner, check writer etc.
 Learned the importance of punctuality.
 27

Chapter V
CONCLUSION & FEEDBACK
During the period of my internship and the preparation of this report, I learnt a lot about
the banking sector and banking operation, about MBL in particular. The internship has been
fruitful in many ways like being socialize with the people, dealing with the senior staffs, and
dealing with the intern colleague so as to make the working environment friendlier. Customer feel
satisfied when they are behaved properly. Their queries are needed to be answered politely so as
to retain them in the organization.
5.1 Key skill and attitude Learnt
As being a part of MBL for 2 months as an intern, I was able to grab a lot of knowledge
having practical implication. And, an internship program provides the proper guideline for career
building. So, internship is the starting point of professional career which helps us to develop our
interpersonal and communication skills. Two months at MBL was truly a great experience for me.
This internship program also helps in learning the behavioural issues which are most important
within and outside the organization.
During the internship period, I got an opportunity to explore the theoretical knowledge into
the real working environment. The main purpose of the internship program is to help the students
by allowing them to be practically involved in the activities carried out by the bank on daily basis.
Some of the lesson learnt are as follows:
1) Handling the work pressure was one of the important attitudes develpoed while working in
the bank.
2) Develop the interpersonal, managerial and entrepreneurial skills that are crucial in every
professionals and employees career development.
3) Working in the bank has helped me to develop a learning habit to a great extent.
4) Ways to deal with different types of customers and avoid as much argument with customers
as possible.
5) Build up self-confidence to deal with customers. Learn to face and handle problems
effectively and efficiently.
6) Way to adjust in new environment and system.
7) Time management and communication skills are very much needed in service department.
 28

8) Experienced that for positive results the coordination between employees of different levels
is important.
9) Get opportunity to know organization culture and its working procedure.
10) Learned to build up the confidence.
11) Learn to work under pressure at different circumstance.
12) The difference between the theoretical knowledge in the classroom and the working
environment in the real world and realized that everyone in the work place need to be
enthusiastic, cooperative and hardworking
13) The tough competition of banks for the survival and the tough competition in banks for
employee as well as getting a jobs.

Many lessons along with these were learnt during my internship period. So, these two months of
internship was the time where I got the most exposure to what it is like to work in real life than
what was learned in the classroom. The internship program gave us an opportunity to experience,
which will be helpful to build a platform in the future.

5.2 Feedback to the organization

By working as an intern at Machhapuchchhre Bank and observing its working environment
and procedures some areas of improvement has been identified. Therefore, the following measures
are recommended to the bank for enhancing its performance level:
1) Customer satisfaction is the most important thing in any organization. But it was seen that
some of the customers of the bank were not satisfied by the time taken to render service.
Thus taking this into consideration MBL should focus more on providing quick and
satisfactory services to the customers.
2) Customer had to wait for a longer period of time in the cash counters. Therefore, MBL
should also try to increase the number of cash counters to minimize the waiting time of the
customers.
3) The system failure from time to time makes the customer to wait for long to achieve
banking facilities. So, checking and maintenance must be made daily.
4) Any changes occurred in bank should be informed as soon as possible to their customers.
 29

5) The required forms and files should be properly managed so that it would be easier to find
at the time of need.
6) There should be provision of rotation of internship period. It will be better if the interns got
chance to work in different departments.
7) Due to the limited number of employees, customers should wait for a long time which
dissatisfies them. So, MBL should increase the number of employees to satisfy the
customers.
8) Today is the age of modern technology. So it must be quick in adopting new technology in
comparison to its rivals.
9) In the competitive banking sector it is very necessary to understand the competitive forces
and the threats of the sector.

5.3 Feedback to the College/ University

The internship period of two months is fruitful enough. I would like to thanks my college
as well as university for providing the opportunity to work as an intern. Special thanks will be
given to the University for making this in the curriculum of MBA.
Working as an intern in the MBL has been beneficial in terms of building professional network
that will be helpful for intern professional life and career. Thus, this internship program offered by
college and university in fact has been proven to be the first milestone in professional career.
1) Timely feedback about the intern should be taken from the supervisor to know about the
progress report and their job status.
2) Regular and proper assessment of the intern student should be made to ensure that the
students are serious and regular.
3) The proper guidance and supervision should be provided to the students before, during
and after the completion of the internship program.
4) The time period given for the internship should be more so that the students get more
practical knowledge.
5) There should be provision of interactive class with the student by college while they are
working as interns and should discuss the ideas and experience they got from the intern.
6) The college should organize a workshop with the authorized person from various
institutions before the starting of the internship.
 30

REFERENCES
Kotler, P., & Keller, K. L. (2016). Marketing Management. New York: Pearson Education, Inc.

Machhapuchchhre Bank. (2018). Retrieved from https://www.machbank.com/board-of-directors

Machhapuchhhre Bank ltd. (2016). Retrieved from http://www.machbank.com

Machhapuchhre bank. (2018). Retrieved from https://www.machbank.com/capital-structure

Machhapuchhre bank limited. (n.d.). Retrieved from https://www.machbank.com/our-profile

Nel, P., & Paul, L. (2011). Keywords for Childrens Literature. Washington: NYU Press.
Retrieved from https://www.jstor.org/stable/j.ctt9qg46g

Nepal Rastra Bank. (2002). Retrieved from https://www.nrb.org.np/

 31

APPENDIX
Products and Services of Machhepuchchhre Bank Limited

Deposit Loan
MBL Current Deposit MBL Care Credit
MBL Saving Account Home loan
Fixed Deposit Hire Purchase loan
MBL Smart Bachat Khata Auto loan
MBL Student Saving Account Education loan
MBL Premium Saving Account SME loan
MBL Online Account MBL Mortgage Loan
MBL Remittance Bachat Khata MBL Micro-Lending
MBL Balbalika Bachat Khata Term Loan
MBL Normal Saving account Working Capital Loan
MBL Pewa Bachat Khata Trust Receipt Loan
MBL Salary Management account
MBL Samman Bachat Khata
MBL Shareholders Saving Account
MBL Yuba Bachat Khata

Remittance Services
IME Ltd ATM services
Prabhu Money Transfer M3 (MBL Mobile Money)
CG Remit Pvt. Ltd Internet Banking
Xpress Money Services MBL Dollar Prepaid Card
Reliable Remit (Reliable Branchless Banking Unit
Development Bank)
Sewa Remit Pvt. Ltd
Himal Remit (BATAS Associates
Pvt. Ltd)
 32

Western Union (Annapurna Travel &

Tours)
Best Remit Pvt. Ltd
Samsara Remit
IPAY Reliable Remit
Easy Link Remit
City Express Money Transfer Pvt.
Ltd

Interest Rate of MBL

Base Rate-Ashwin 2075 : 11.21%

Average Interest Spread Rate-Ashwin 2075 : 4.23%

Types of Deposit Per annum (%)

NPR SAVING NPR SAVING
Smart Bachat Khata 7.00
Normal Saving 5.00
Royal Saving** 5.00
Pewa Bachat Yojana 5.00
Yuba Bachat Khata 5.00
Shareholders Saving 5.00
Samman Bachat Khata 5.00
Uchcha Sikchha Nikchhep Yojana 5.00
Mach 7 Deposit** 5.00
 33

BalBalika Bachat Khata 5.00

Remittance Bachat Khata 5.00
NRN Saving Deposit 5.00
MBL Premium Saving 5.00
MBL Student Saving 5.00
SALARY SCHEME
Salary Management Account 7.00
Special Salary Management Scheme 7.00
FCY SAVING
US Dollar Saving 2.00
Euro Saving 0.50
GBP Saving 1.00
NRN Saving Deposit-USD 2.25
FIXED DEPOSITS
Tenure Individual/NRN
Below 4 Months 8.00
120 days 10.00
4 Months to 1 Year 10.00
Above 1 year 10.00
FIXED DEPOSITS
Tenure Institutional
Prime/others
Upto 1 year 9.00/9.00
Above 1 year 9.00/9.00