INTERNSHIP REPORT ON

AT SIDDHART BANK LIMITED

JANAKPURDHAM

Submitted To:

Janaki college of management, Internship Management Team

In the partial fulfillment of the requirement for the degree of

Bachelors of Business Administration

Submitted By:
Pooja singh
PU Roll No: 270889
PU Reg. No: 120-2-2-01926-2016

2077(2020), Janakpur
 DECLARATION

I hereby declare that this submission is my own work and that, to the best of my
knowledge and belief, it contains no material previously published or written by
another person nor material which to a substantial extent has been accepted for
the award of any other degree of a university or other institution of higher
learning, expect where due acknowledgements.

Further I would like to declare that the report prepared by me is only for the
academic purpose. The contents included by me are taken from the observations,
secondary data, and internet sources.

Thank you

…………………..

SamanRijal
 ACKNOWLEDGEMENT

It had been a great experience working in Nepal Bank Limited (NBL), Branch
Office-Dillibazar and making a project under the heading of CSD of NBL. This
project is dedicated to all the people who have helped directly or indirectly to
complete this project.

Firstly I would like to thank Apex College for providing me an opportunity to use
the theoretical knowledge in the practical field in course of my internship program
of 6th semester, under Pokhara University.

I am heartily thankful to Manager for providing me the opportunity to be an

internee in NBL and gain the practical knowledge of the banking area.

Also, I am equally grateful to all of the Nepal Bank Limited who provided the
valuable information during my internship period.

SamanRijal

BBA-BI

Apex College
 ABBREVIATIONS

BBA-BI: Bachelors of Business Administration in Banking & Insurance

NRB: Nepal Rastra Bank

ABBS: Any Branch Banking Service

CSD: Customer Service Department

NBL: Nepal Bank Limited

IME: International Money Exchange

ATM: Automatic Teller Machine

KYC: Know Your Customer

LC: Letter of Credit

SMS: Short Message Service

CEO: Chief Executive Officer

BOD: Board of Director

PU: Pokhara University

 ABSTRACT

As per the requirement of Pokhara University course under BBA-BI program this
report is designed according to the knowledge gained on field base experiences.
The main aim of the 8 weeks internship program is to provide internee an
opportunity to implement their theoretical knowledge practically. Out of the
various area or sector for internship, I choose banking sector, more specifically
customer service department of Nepal Bank Ltd, Dillibazar branch. This is the
world of economy, competitive service oriented product. The world is getting
smaller an smaller in terms of globalization due to the development of technology.
Among the various business firms banking plays very important role in an
economy by providing various services like: payment system, deposit, loan etc.
but it is not easy to cope and function in the changing globalized environment.
This is only possible with the help of sound planning. Also Nepal Band Ltd. is the
pioneer of banking in Nepalese history as well as one of the leading banks in
Nepalese environment with many branches all over the country.

Customers are the important element of any kind of business and it is important in
banking too. Banking service is for the customer so customer service department
plays an important role for day to day operations of bank. Main objectives of this
report, is to understand various aspects of customer service, NRB reporting and
overall operations of Customer Service Department of NBL.

Although this report is the outcome of 8 weeks experiences in CSD of NBL, I

have mentioned all the important information as far as possible. This report is
basically based on secondary data; also it’s an outcome of various experience,
interaction and analysis during internship periods. Finally this report is the short
and sweet outcome of continuous effort of 8 weeks program which will be
beneficial for the understanding mechanism of planning.
 TABLE OF CONTENTS

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

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

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

1.2 Objectives..................................................................................................3

1.3 Methodology.............................................................................................4

1.4 Sources of Data.........................................................................................4

1.5 Selection of the Organization....................................................................5

1.6 Duration....................................................................................................5

1.7 Activities...................................................................................................5

1.8 Limitation..................................................................................................6

1.9 Introduction of Banking Industry..............................................................7

1.9.1 Meaning of Bank.....................................................................................7

1.9.2 Origin of Bank.........................................................................................7

1.9.3 Modern Banking......................................................................................8

1.9.4 Functions Offered by Bank.....................................................................8

1.9.5 Role of Bank..........................................................................................11

1.9.6 Meaning of Commercial Bank..............................................................11

1.9.7 Functions of Commercial Bank.............................................................13

1.9.8 History and Development of commercial banks in Nepal....................13

1.10 Introduction of Nepal Bank Limited.......................................................15

 1.10.1 History.................................................................................................15

1.10.2 Introduction.........................................................................................16

1.10.3 Shareholding Composition..................................................................18

1.10.4 NBL Network Overview.....................................................................18

1.10.5 Objectives............................................................................................18

1.10.6 Vision...............................................................................................19

1.10.7 Mission................................................................................................19

1.10.8 SWOT Analysis...................................................................................19

CHAPTER II.........................................................................................................21

REPORT ABOUT INTERNSHIP EXPERIENCE................................................21

2.1 Activities Performed in the Organization.....................................................21

2.1.1 Customer Service Department...............................................................21

2.1.2 Remittance Department.........................................................................23

2.1.3 Clearing Department.............................................................................23

2.2 Problem Faced During Internship................................................................27

CHAPTER III........................................................................................................29

SUMMARY, CONCLUSION AND RECOMMENDATION...............................29

3.1 Summary......................................................................................................29

3.2 Conclusion...................................................................................................29

3.3 Recommendations........................................................................................30

BIBLIOGRAPHY..................................................................................................32
 CHAPTER I

INTRODUCTION

1.1 Backgroundof the Study

An internship is a study program for the students which are carried out in an
organization to meet the requirement of the study in colleges or universities. This
report is submitted to fulfill the requirements for the completion of the degree of
“Bachelor of Business Administration in Banking and Insurance (BBA-BI)” under
faculty of management, Pokhara University. BBA-BI is a four year undergraduate
program in which emphasizes on managerial skill required for the middle level
manager. Apart from management and its allied courses, BBA-BI gives thrust on
information technology also.

Interns are usually college or university students to gain various skills, knowledge
and learning experiences on different aspect of organization’s environment.
Internship also helps students to know how different activities in the organization
are coordinated so that the synergistic effects are achieved and how
communication takes place in corporate world. Students are involved as non-paid
authentic employees receiving academic credits for work experiences. This will
support the students to acquire social, technical and communications skills to
work effectively in industry. Today, many organizations are cooperating with the
educational institutions to provide the internship service with the specific benefits
to their students.

An internship provides the student with a greater understanding of organization’s

work environment with educational qualifications. Hence in this frenetic
financialenvironment, the roles of commercial banks are unavoidable. The report
focuses on over all banking activities concerned with its major functioning

1
departments ofNepal Bank Limited.

Through internship an individual can explore the working process of an

organization being a part of the actual working environment. Here every students
receives practical knowledge through observation and develops academic credit
for the work experiences as well. An internship will help the individual to expose
to the interpersonal relationship, which is the demand of every job, both with the
boss, co-workers, supervisors and the other lower level staff members who are the
first basic things for a bank to obtain successful and contented career. It assists the
students to identify potentiality and area of interest. Internship is the necessary
medium for enabling employers to persist students to work in up to date
competitive business environment. Internship is seen as the major way to enhance
and support the internee’s banking careers well.

As we know that, an internship is the way of learning managerial activities by

practically doing it, therefore it provides an opportunity for learning as well as
developing the managerial skills. It gives a direction and provides ideologies for
the practical problems. Every single activity that takes places daily is
simultaneously observed and analyzed. Any usual problems and the underlying
causes or drawbacks are closely monitored, understood .The potential solutions
can be determined that certainly enhances the effectiveness and the strength,
minimizes the weaknesses that helps to maximize the profit and the growth rate.

An internship acts as a medium that ables an individual’s to work in group,

manage work pressure and analyze the lessons learnt in class and on the field. It
can be remarkable way of determining if the industry and the banking career is
best suited or not for him or her. It makes an individual more concerned about the
options and opportunities one can get both physically and mentally. A successful
internship student has developed characteristics, which are the essentials of the
Modern commercial world. This whole internship process ables a student to
experience and gives exposure to the working pressure that a internee is likely to

2
face in the futureby making them familiar with the corporate cultures and also by
understanding the primitive knowledge of the business settings of the
international standards. It also helps to develop the professional working habits
and creates a platform to create differences in the work style. Thus, it makes the
internee’s mind pre-prepared to pursue the career in the banking field in the
future.

Pokhara University offers a course for the BBA-BI faculty, which is the best way
to learn and gain the knowledge regarding the corporate environment and culture.
This way any individual can obtain the maximum knowledge from a business
world. They have the right to learn and make the things more transparent. This
internship was carried on in the branch office of the Nepal Bank Limited at
Dillibazar. The internship program was for six weeks, which started from…….
and ended on…….. in which the internee was placed in different departments like
Remittance Department, Customer service department (CSD), Bills Department,
clearing.

1.2 Objectives

During the internship period, the main aim is to gain and explain about the
knowledge experienced during the banking operations through observation,
interaction. Likewise, the other specific objectives are as follows:

a) To have a work experience on the bank.

b) To be familiar with the principles, manuals, provision, guidelines,
regulations of the operational activities.
c) To perceive broader knowledge by involving own self in the situation and
work environment.
d) To observe the policies and the regulations in the financial sector.

3
1.3 Methodology

Methodology is the description of the procedure followed while collecting the

necessary data and information needed for research work and report preparation.
Various data were collected by observation, making inquiries with concerned
staffs, quantitative data collected from the past records. The following
methodologies are used in this study.

1.4 Sources of Data

For the information of the various departments, personal interviews were taken
and inquiries were made. Information was collected by observation and formal
group discussions with every related member of the organization. Regular
communication and consults were made with the staffs and the costumers for the
reliability of the data. The books, magazines, newspapers, journals and the past
records obtained all the formal and the quantitative data. There were formal group
discussions, observation, personal inquiries as the source of the primary data, and
for other secondary data past records were referred. Consulting with the staff
members and costumers were the other source of reliable information. Data was
collected by various means and mediums such as direct interviewing, enquiring
with the staffs.The previous bank records were referred for the relative data and
information.

 Information were collection from the official website www.NBL.com.np

 Different books of journals and magazines, newspapers, bank profiles,
regular manuals of the departments, annual reports were gathered for the
preparation of the report.
 Information gathered from the related staff members were thoroughly
studied and hence recorded for creating better understandings with the
bank and the banking transactions.

4
1.5 Selection of the Organization

I choose bank as organization for internship with regarding bank as one of the
service industry where I can gain various knowledge about general management
concepts. With the aim of implementing my knowledge that I gained in college by
doing internship in the organization that is related to management field, I chose
NBL as organization for internship program. Due to the support of my college I
was able to join Nepal Bank Limited for internship.

1.6 Duration

The duration of the prolonged internship was of 6 weeks, started from …. to the
date……. In the course of the internship period, the intern worked on the different
departments, performed activities. All the factors such as discipline, attendance,
regularity, interest towards the work, sincerity, behavior, and the efforts that she
made to understand the banking functions were closely monitored.

1.7Activities

During the entire internship period of eight weeks, the intern had a time to visit
the four different departments like Remittance, Customer Service Department,
loan Department and clearance. In the course of the internship, I spent equal
number of days in every department. The activities performed on these
departments are as given below in table.

5
S. No. Department Activities performed

1 Customer service department Preparing balance certificate, opening

and closing accounts, cheque printing,
statement printing, handling telephones

2 Remittance Department Preparing IDT, IBT, cheque deposits,

data entry

3 Letter of credit Studied the different types of loans and

loan files of the customers.

1.8 Limitation

There are several limitations that hindered the proper analysis of this study. These
are:

 Difficult in analyzing the information obtained from respondent due to the

qualitative nature of information.
 Another limitation to this study is the lack of statistical data. Report is
mainly based on the secondary data.
 The experience obtained is limited.
 The deep comprehensive analysis and study couldn’t be done due to time
constraints.
 Time limitation and busy schedule of the staffs also prevented internee
from learning time to time.

6
1.9 Introduction of Banking Industry
1.9.1 Meaning of Bank

A bank is a type of financial institutions that are established under a certain act to
perform monetary and credit transactions. The bank accepts the deposits in the
form of capital and collateral, formulates, and implements monetary and foreign
exchange policy to maintain price and balance payment stability for a sustainable
development of the country. It provides necessary liquidity for promoting the
stability of the financial sectors.It raises funds by collecting deposits from
business and consumers through saving gio sits, time deposits. Besides this, it
gives facilities to business like giving loans to business, housing, saving deposited
money, buying and selling of bonds etc.

It also helps to develop a safe, sound, and efficient payment system. Bank helps in
making regulations, inspection, supervision, and maintaining the sound
development of the banking system.

According to the American Law bank has been defined as “Any Kind of
institution offering deposit subject to withdrawal on demand and making loans of
a commercial or business nature is a Bank"

The bank regulation of India defines it as a means of accepting for the purpose of
leading or investment of deposit of money from the public repayable on demand
or otherwise able by cheque, draft or otherwise.

1.9.2 Origin of Bank

Actually, the word “Bank” has been originated from the Latin word “bancus”;
Italian word “Banca” and a French word banque; which all refers to the Bench.
Jews, the early bankers, in Lombardy, used to transact their business at benches in
the market place. In the history of origin of banking in the world, “The Bank of
Venice”, was the first, which was originated in Venice of Italy in the year 1157
A.D. In addition, the first central bank which was established in 1844 A.D. was

7
“The Bank of England”.

Bank is a financial intermediary accepting deposits and granting loans and also
offers the variety of services like conversion foreign currency into domestic
currency and vice versa, lending money, saving deposits etc. Even if we look at
the past, banking concept is found. In the ancient period, this concept existed,
when goldsmiths and the rich people used to give money to the common people
against the promise of safekeeping their valuable items on the presentation of the
receipt, the depositors would get back their gold and valuables of the paying a
small amount for safekeeping and saving.

1.9.3 Modern Banking

Merchants, Goldsmiths, moneylenders are known as the ancient bankers.

Development of modern banking in the 15th, 16th and 17th centuries gradually
shifted the Centre of the world commerce from the Mediterranean region towards
Europe and the British isles, where banking became a leading industry. During
third initial phase of modern banking development Industrial Revolution was
developed, which demanded a well-developed financial system. Modern banking
was developed to provide new methods of making payments and credit available,
which were required as economy of various countries adopted mass production.

At previous times, banks functions were limited. They only accepted deposits of
money or valuables for safekeeping and verifying coinage or exchanging one
jurisdiction’s coins for another’s. Various banks were developed as modern banks
such as Medici Bank of Italy and Hochstetler Bank in Germany.

Now bank has become a known place for every people and it also offers wide
variety of services than before.

1.9.4 Functions Offered by Bank

There are various functions provided by the bank. They are as follows:

8
Deposit function

Accepting deposits is the primary function of the bank. The most important fund
of the banks is deposits. Without deposits, it would be difficult for the bank to
invest high return sectors. The main objective of the bank is to collect deposits in
as lowest cost of fund possible. If the bank is able to collect deposits at the lowest
cost it leads the bank to earn a huge amount of fortune.

Providing loans

This is the other function of a bank. It provides loan to a customer, company or

institution. Bank is able to gain benefit by giving loans and charging them with
some amount of interest rate to a customer as per the law and banking policies,
terms and conditions. It provides loans by accepting the security of a debtor.

Credit function

Bank provides credit to the deficit customers such as hire purchase loan, real
estate loan, leasing of the fixed assets, working capital loan and other long term
loans. The interest rate charged to the loan amount and the interest provided to the
depositor’s difference leads to the profit of the bank.

Payment function

The bank provides various payment facilities to the costumers to make the
economy efficient and effective. If the payment facilities were not developed it
would be difficult for the costumers to transfer the money from one place to
another. Some of the payment instrument is as cheques, bank overdraft, online
various banks also provide payments.

Trust function

The most important function of the modern bank is to maintain credibility towards
the depositors as well as towards investors. If the bank fails to maintain the

9
credibility, it becomes difficult for the bank to attract depositors as well as
investors to purchase their security.

Investment function

Bank uses the surplus amount of money at the profitable area where the return on
investments is high. Bank also invests a huge amount of money in government
securities and bonds, as it is a 0% risk free investment.

Cash management function

It is necessary for the bank to manage the cash collection and cash disbursement
to retain its position in the markets well as credibility. If the cash management
leads to deficit rather than surplus it would be difficult for the bank to manage its
environment effectively.

Insurance function

Another important function the modern banks play is insurance function. Bank
provides loans and advances to various sectors as a result of the assets or the loan
amount should be insured and various collateral must also b taken under bank’
eye. In case of providing loans to purchase a car, it is necessary that the vehicle is
insured so that the risk of not recovering the money is low.

Underwriting function

It is necessary for each bank to issue public shares in the marketplace. Banks has
the right to under right the various securities such as common stock, preferred
stock, or debentures. It is necessary that legal bank be listed in the stock market o
that the interested investors can invest a huge amount of money in the bank by
purchasing various securities.

Brokerage function

A modern bank also plays an important role as a broker for the necessary clients.
Banks earns a non-operating income acting as a broker. as a broker banks helps

10
the client to purchase and sale various securities of the banks as well of different
banks. Banks may charge some percentage of commission or may even some
amount of rupees with difference between the selling and purchasing price.

1.9.5 Role of Bank

The various roles played by the banks are as follows:

 Intermediation Role
It transforms saving received primarily from households into credit
(loans) for business firms and others in order to make investments in new
building, equipment’s, and other goods.
 Payment Role
It carries out payments for goods and services on behalf of their customers
such as issuing cheques, wiring funds, providing a conduit for electronic
payment and dispensing currency and coins.
 Guarantor Role
Bank Stands behind their costumer to pay off costumers debts when those
customers are unable to pay such an issuing letter of credit.
 Agency Role
Bank acts as an agency on behalf of the costumer to manage and protect
their property or issue and redeem their securities usually providing
through the bank trust department.
 Policy Role
It also serves as a conduit for the government policy in attempting to
regulate the growth of the economy and pursue social goals.

1.9.6 Meaning of Commercial Bank

Commercial Bank is the major sector for upgrading country economy. It is the
oldest form of the bank. It is defined as "A commercial Bank is the one which
exchanges money, accepts deposits, grant loans and performs commercial

11
function and which is not a bank meant for cooperative, agriculture, industries or
for such purpose" according to the commercial Bank Act.

In general, bank that performs all kinds of banking business and generally
finances trade and commerce is called commercial bank. Commercial banks are
financial intermediaries that accept deposits from the members of the public who
do not have intermediates use foe funds (savers) and lending such funds to those
requiring funds for investment (borrowers). It also transfers fund from one
costumer to another and provides other services such as offering advice on a wide
range of matters relating to finance.

It has also been defined as “Commercial bank is a financial institution that

operates currency exchange, money transactions, accepts deposits, advances loans
and performs other commercial transactions which is not specifically established
with the objective of cooperative, agricultural, industrial or any other such kind of
specified purpose.” according to the Commercial Bank Act 2031, section 2(a).

They are those banks, which gathers altogether the scattered savings of the
community and arrange for their productive use and generate profit. They accept
deposits from the public and use the money to help the community by making
loans to individuals, organizations, governments and business. Commercial banks,
acquire funds from group of surplus spending units and making these funds
available to the deficit units facilitating the effective mobilization of resources,
which in return leads to sound economic growth of the country.

The main aim of the commercial bank is to earn profit like any other business
entity. It lends a certain percentage of the cash lying in deposits on higher interest
rate than it pays on such deposits. The difference on interest on deposit received
and loans advanced are the main source of its income. Thus, commercial banks
are merely a business firm engaged in financial intermediation as well as perform
additional functions under strict supervision and control of the central bank.

12
1.9.7 Functions of Commercial Bank

a) To accept deposits
b) To provide loan and advances
c) To provide general utility functions
d) To provide overseas trading services
e) To provide information and other services
f) To provide investment facilities
g) To provide remittance facilities

1.9.8 History and Development of commercial banks in Nepal

At the early stage, zamindars were known as banks, the focus was more on
lending money against securities like land and ornaments, which could be
redeemed if the loan wad defaulted. TejarathAdda, established in 1933B.S at the
time of Prime Minister Ranoddip Singh, is taken as the first step for the
development of institutional banking system.

Nepal Bank Limited Came in Nepal as the first ever-commercial bank of Nepal.
The government incorporated Nepal Rastra Bank (central Bank) along with
RastraBanijya Bank and Agricultural Development Banking 2024 B.S. FDI in the
banking sector, through joint venture banks, the first being Nepal Arab Bank
Limited now NABIL Bank. Nepal Bank Limited was established on 30 Kartik
1994 B.S., the first bank of Nepal. Banking terms started in two senses, with its
establishment. It conducts dual function of both commercial and central bank. In
order to allow Nepal Bank Limited to concentrate on commercial features, on 14
Baishakh 2013 B.S., Nepal Rastra Bank was set up under Nepal Rastra Bank at
2012 B.S. as the central bank of Nepal. This act has been repealed and Nepal
Rastra Bank act 2058 has been in an act by the parliament. It is regarded as the
apex body of the monetary and the banking structure. RastriyaBanijya bank was
set up as the fully government owned commercial bank in 2022 B.S. with its
establishment banking services spread to both urban and rural areas. Agricultural

13
development bank was established in 2024 B.S. for the upliftment of the
agricultural sector.

Government formulated liberal economic policy to accelerate countries growth

and development. Government encouraged foreign investment and participation
of private sector in the banking sector. The government then applied the policy of
“Joint Venture Banking”. This was a great significant event. Healthy competition
prevailed and people were offered valuable services and national as a whole
begun to take benefit.

Commercial banks should operate under the Commercial Bank Act 2031, Nepal
Rastra Bank Act 2058. Company Act 2053 and Contract Act 2056. Nepal Arab
Bank Limited (NABIL) is the first bank established in joint investment in Nepal
in 2041 B.S. A year later Nepal Indosuez Bank Limited currently renamed as
Nepal Investment Bank Limited was set up, with passage of time several other
joint venture and private bank has been established.

After the restoration of democracy in Nepal, there has been tremendous

development in banking sector. Rural development banks are formed for all
development banks under the control and supervision of Nepal Rastra Bank.
These banks includes

a) Eastern Rural Development Bank

b) Central Rural Development Bank
c) Western Rural Development Bank
d) Mid-western Rural Development Bank
e) Far-western Rural Development Bank

Nepal Industrial Development Corporation (NIDC) and Agricultural Development

Bank (ADB) were only two development banks to be established before the
enactment of Nepal Development Bank Act 2052 B.S. After the introduction of
Nepal Development Act 2052 B.S., many development banks were set up.

14
Nowadays it has also been one of the attractive places for employment, investors
etc.

1.10 Introduction of Nepal Bank Limited

1.10.1 History

NepalBank Limited, The first bank of Nepal was established in November 15,
1937 A.D (Kartik, 30, 1994). It was formed under the principle of Joint venture
(Joint venture between govt. & general public). NBL's authorized capital was Rs.
10 million & issued capital Rs. 2.5 million of which paid-up capital was Rs. 842
thousand with 10 shareholders. The bank has been providing banking through its
branch offices in the different geographical locations of the country. 

The history of Nepal Bank ltd is very old. It is the first bank of Nepal. His
Majesty King Tribhuvan inaugurated Nepal Bank Limited on Kartik 30,1994
Bikram Sambat. This maarked the beginning of an era of formal banking in
Nepal. Until then all monetary tractions were carried out by private dealers and
trading center. 

Then Prime Minister Maharaja JuddhaShumsher J.B.R. speaking on the occasion

with the kind permission of His Majesty the King stated this work which is being
done in the larger interest of the nation is a great moment for me. Until today a
bank could not be opened in Nepal. Therefore this bank, which is being
established under the name of Nepal Bank Limited to fill that, need and to be
inaugurated by His Majesty the King, is a moment of great joy and happiness. 

The Bank's objectives to render service to the people whether rich or poor and to
contribute to the nation's development will also need the support and best wishes
of all, which I am confident, will be coming. In that era, very few understood or

15
had confidence in this new concept of formal banking. Rising equity shares were
not easy and mobilization of deposits even more difficult. This was evident when
the bank floated equity shares worth NRs. 2,500,000, but was successful only in
raising NRs. 842,000. 

"In the absence of any bank in Nepal the economic progress of the country was
being hampered and causing inconvenience to the people and therefore with the
objective of fulfilling that need by providing service to the people and for the
betterment of the country, this law in hereby promulgated for the establishment of
the Bank and its operation" 

The total deposits for the first year was NRs. 17,02,025 where current deposits
was about NRs. 12,98,898 fixed was about NRs. 3,88,964 and saving was NRs.
14,163. Loan disbursed and outstanding at the end of the first year was NRs.
1,985,000. 

From the very conception and its creation, Nepal Bank Ltd, was as joint venture
between the government and the private sector. Out of 2500 equity shares of NRs.
100 face value, 40% was subscribed by the government and the balanced i.e. 60%
was offered for the sale to private sector. There were only 10 shareholders when
the bank first started. 

1.10.2 Introduction

Nepal Bank Limited, The first bank of Nepal was established in November 15,
1937 A.D (Kartik, 30, 1994). It was formed under the principle of Joint venture
(Joint venture between govt. & general public). NBL's authorized capital was Rs.
10 million & issued capital Rs. 2.5 million of which paid-up capital was Rs. 842
thousand with 10 shareholders. The bank has been providing banking through its
branch offices in the different geographical locations of the country.

16
Network for inclusion: Use bank's network to increase its reach all over the
country from urban areas to rural areas and help in improving the lifestyle of rural
population and in turn become the bank of choice of corporate, medium
businesses and rural market.

Enhancing the value: To employees, shareholders, government and customers

World class banking services: Provide world class banking services by achieving
excellence in customer service and adopting high level technology standards. 
Segmented business approach: For risk management and enhancement of
efficiency.

Partnership: With all stakeholders including the Government, employees,

shareholders and customer.

Innovation: Of business areas and processes for providing Advanced banking

services, and enhance competitiveness.

Responsiveness: responding to the changing need of the market/society/business

on timely basis.

Integrity: Uphold trustworthiness and business ethics in the business processs.

Total banking solutions: To cater the need of all sections of society.

1.10.3 Shareholding Composition

S.N Ownership Percent

17
 1 Government of Nepal 38.60

2 General Public 61.40

Total 100

1.10.4 NBL Network Overview

Region wise branches No of Branches

Kathmandu Region 28

Biratnagar Region 28

Birgunj Region 19

Pokhara Region 21

Nepalgunj Region 16

Total no of Branches* 118

1.10.5 Objectives

Nepal Bank Limited has the following objectives.

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

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  Focus on increasing the sustainable profit.

1.10.6 Vision
“Pioneer bank with complete banking solution” Nepal Bank Limited holds of a
vision to become a Leading Bank of the countryby providing premium products
and services to the customers. It ensures attractive and substantial returns to the
stakeholders of the Bank.
1.10.7 Mission

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

1.10.8 SWOT Analysis

SWOT analysis of the bank is to evaluate the Strength Weakness Opportunities

and Threats involved in its business operation and identifying the internal and
external factors that are favorable and unfavorable to achieve bank’s objectives.
Further major weakness of the bank where bank has to work on for the
improvement to increase the operational efficiency and hence increase
profitability has also been analyzed.

Strength:

 Government ownership
 Large branch networks
 Government transactions
 Physical resources

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  Composition of deposits

Weakness:

 Over staffing
 Weak automation
 Work culture
 Low brand recognition
 Low staff morale
 Minimal product line

Opportunities:

The opportunities in the bank’s SWOT analysis is considered to the area where
the bank has room for growth or could take advantage of opportunities in the
market place.

 Possibility to capture growing remittance business

 Growing banking business
 Banking deregulation

Threats:

 Harsh action by NRB

 Recession
 High competition
 Trade unions
 Political instability

CHAPTER II

REPORT ABOUT INTERNSHIP EXPERIENCE

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As prescribed by the faculty of management Apex College, the duration of
internship has been 6 weeks. Most of the time internship period has been spent in
loan and customer service department and also have been placed in pension and
remittance department.

2.1 Activities Performed in the Organization

2.1.1 Customer Service Department

For any banks are valuable assets .keeping this in mind, NBL tries to give best to
its customers. This department is the sensitive part of a bank as it interacts directly
with the customers. People come for various enquiries about banks, its new
services. Thus it should be efficient, clean and effectively handled by the
employees of the bank. This department creates an impression of the bank
towards its customers, better services, they will come for the services again and
we are a part of the bank.Here the internee carried out the following activities:

a) Counseling the customers

b) Interacting and communicating with existing and new clients
c) Opening of new account for the new clients
d) Making of chequebook and issue of chequebook to existing and new
clients.
e) Printing of financial statement for clients
f) Scanning of account holders photos and signatures
g) Checking account holders customer balance
h) Checking account holders photos signatures
i) Handling telephones and use photocopy machine for customers’ ease.

Analysis of the Activities in Customer Service Department:

Customer counseling

As we know that a bank performs well when their customers are satisfied. So, in

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this department an internee tries provided by the bank to its new and existing
customers. They try to solve enquiries, questions and doubts the customers are
having.

Account opening

There are various kind of account opening facilities given by the bank like, saving
a/c , current a/c , Mahilabachatkhata, Sajilobachatkhata, fixed saving, diamond
saving, nepallaxmibachat etc.

Here, an internee helps the customer by explaining about the types of services
they need like various types of service they need like various types of account
opening facility, advantage behind the particulars account, fill up their forms who
are unable to do so.

Statement printing and issuance

Statement includes the information like day to day transaction amount, balance,
interest charge etc. it is free of cost. It is a frequent and regular activity done in the
bank with the help of software given by the authority. Statement issuing is done in
the concerned bank only where an account holder has opened an account. For that
customer should provide their related account number.

Balance checking, scanning and photocopy

An internee was also allowed to check the balance asked by the customer under
the supervisor’s authority. An internee also learned to scan the forms before
keeping the records of new account holder or filing them along with some other
important documents. Similarly, photo copy was to be done frequently in the
department, to provide ease to the customer. Internee also learned how to contact
with the customers through telephone.

2.1.2 Remittance Department

Remittance can be defined as the transfer of money from one place to another that

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may be from bank to bank or from country to country. The department of
remittance deals with the management of the remitted money, which is sent by the
migrant workers from abroad or within the country as well. Nepal Bank receives
remittance through swift code. NBL is the pioneer in the field of retail money
transfer business with over 11years of customized services delivery experience in
the field. It has the largest network covering all major cities, towns and villages of
the country and is capable of paying at more than 200 locations across Nepal. The
bank enjoys the strategic with the lending remittance companies like Xpress
Money, MoneyGram etc. In this department, the internee learned the following
task:

a) Helped in remittance payment by using the concerned software according

the RAD digit.
b) Helped in Account enquiry and preparing the statement.
c) Observed in preparing demand draft and fund transfer.
d) Observed foreign currency exchange(purchase and sell)
e) Learned to keep records of various drafts.

2.1.3 Clearing Department

In this department customers bring checks of different bank and they fill a
voucher to credit their account by the amount specified in the check and by
debiting the amount in the check of the specific bank. After receiving different
checks they are given the specific OBC number and recorded in the register and
later they are recorded in the computers as well and after all the checks are
recorded the final print out is printed, 3 pages of each banks are printed and
vouchers are attached with single page of the specific bank and 2 pages are
attached with the checks and the checks are passed to the next step where they are
checked that all the checks and vouchers are in order or not and then again they
are entered in the excel sheet in the next step and final print out is made. The
printed papers of all the checks along with all checks are taken to Nepal Rastra

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Bank the very next working day for the clearance.

In NRB, there are different counters of different commercial banks and they are
given their checks and Nepal Bank receives its check and then the advice is
prepared by debiting and crediting the amount and the balance of different banks
at NRB are debited and credited on the basis of advice. If the checks are
dishonored then they are returned to the NRB by 3:00 PM in the evening of same
day and again advice is prepared and balance of Dr. and Cr. should be same and
informed to NRB.

Outward Bills for Collections

There are some cheques that are drawn by a Non NBL account that is outside the
city area in favor of NBL account holders and thus are treated as OBC’s. The
process for clearing of the OBC’s is as follows:

a) Cheques receives by NBL.

b) The officer affixes the OBC stamp on the cheques and writes its individual
number from the OBC register.
c) Entries of all OBC cheques are written in an OBC register.
d) An OBC letter is printed, which shows the cheque numbers, the branch
drawn on and amount.
e) Original Cheques are attached to these letter and sent to the main NBL
branch in that area by courier
f) When that area branch clears the amount from the Non-NBL branch, it
sends an Inter Branch Credit Advice (IBCA) to NBL and the officer at the
branch credits the customer account with that amount.

Inward Clearing

Inward clearing takes place when a KBO account holder draw’s a cheque in favor
of a Non- NBL account holder. The process for inward clearing is as follows:

 Cheques are received by the operations department.

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  The bank officer verifies all particulars from the instruments and the
system for sufficient balance etc. If any fault is found, then the officer will
mark the cheques as a return, stating the reasons with them.
 If no fault is found, then the officer will post these cheques in the system
by debiting the customer account.
 The particular of the returned cheques are entered in the ‘O/W return of
inward clearing’ register and returned.

Letter of credit:

Letter of Credit means a party of a country wants to do trade with the other party
or organization of the other country and they cannot trust each other that one party
will pay the amount for the goods and the other party will send the appropriate
goods after receiving the advance payment for the goods. So both the parties
contact the Banks of their own country and both the Banks guarantee for their
party. Beneficiary party sends the Performa invoice to the applicant party and by
taking the invoice the applicant goes to the Bank and on behalf of the invoice the
Bank opens the L/C for the applicant party. L/C can be opened of Import or of
Export by the company.L/C can be opened under Limit or can be opened by
paying the 100% amount mentioned in the Performa Invoice to the Bank. After
opening L/C the insurance of the goods should be done and the insurance can be
done by the applicant or by the beneficiary under mutual understanding of both
parties. Insurance should be done 110% of the goods so that in case of any
damage the 100% return is gained against the goods. Whereas 10% is used to
compete the other charges while inspectinggoods.

Parties under L/C are given below:

 Applicant: The person or party who wants to import the goods from the
other country.
 Beneficiary: The party which sends the goods to the Applicant and
receives money for it.

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  Issue Bank: The Bank which opens the L/C on behalf of the Applicant.
 Advisory Bank: The Bank which sends the documents to the Issue Bank
that goods have been send from here and receives payment from the Issue
Bank.
 Reimbursing Bank: Bank which have the Issue Banks Dollar account.
 Conforming Bank: Bank which works as a mediator between the
beneficiary and Issue Bank in case if the beneficiary does not trust the
Issue Bank.

Generally L/C is opened at Sight or at Usance. If the applicant party does pay the
money within 5 working days of receiving the documents then it is at sight L/C
and in case of Usance L/C the applicant is provided maximum of 180 days of
credit limit. Bank deals with the documents send by the beneficiary bank rather
than the goods send by the party to the applicant party. If the commercial invoice
send by the beneficiary party does not match with the Performa Invoice which
was send in the opening of L/C by the beneficiary party then the Issue bank is not
liable to pay the amount to the beneficiary bank. But if the Applicant and
Beneficiary party wants then the amendment can be done by the bank. Now days
L/C is of irrevocable nature means if and only if both parties agree to discontinue
or close the L/C then only it can be closed otherwise by the single party either by
Applicant or by Beneficiary party it cannot be closed.Documentations required
are given below.

a) Covering
b) Commercial Invoice
c) Bill of Lading, Airway or Transport Bill
d) Quality Certificate
e) Insurance Document

If the documents are not acceptable then it is returned to the beneficiary bank by
the issue bank and if the documents are fulfilled then Applicant is provided the

26
documents and Applicant party can clear the goods from custom with the help of
those documents. And on the basis of documents the issue bank swifts the amount
to the beneficiary bank and the beneficiary gets the money for its goods.

2.2 Problem Faced During Internship

While carrying out the task assigned by the supervisor, the internee faced different
types of problems. They are as follows:

a) Some of the customer disagrees to accept the charges for account closing
and make argument on this matter for long time. So, it becomes difficult to
convince them about the bank’s charges.
b) Though the instructions and required documents are clearly explained in
the account opening form, even then customers ask those for time to time
and reasons for extra documents that are already sated in back side of the
form. So, it is tough to give them each and every guideline on filling
different types of form as well.
c) The accountholder’s relation asks for the chequebook without bringing the
letter of authority and citizenship with accountholder’s valid signature and
account number.
d) When the customers lost their chequebook and request for new one, in this
case it is difficult to find out all the used and unused cheque, valid
signature and account number from their record on the computer carefully.
e) Failure to remember the reference number on the remittance services such
as Money gram or Express money or Cash instant as the customer
presented the form of different reference number.
f) Sometime customer came to take the money but bank unable to give the
payment due delay of information in the bank website.
g) Quite confusion in inward and outward clearing bills while keeping the
record in the computer.

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28
 CHAPTER III

SUMMARY, CONCLUSION AND

RECOMMENDATION

3.1 Summary

Internship done under the requirement of PU to complete BBA has been proved as
an effective way of studying. It helps to get broader knowledge about the
working as well as banking environment .This report is based on the banking
operation of Nepal Bank .Internee selected this particular bank as it is one among
many reputed Organization. As we know that bank is place where financial
activities are carried out. NBL was established in November 1937. It offers
various services like remittance, loan, deposit products etc. The main thing was
that interne was able to learn about the various activities carried out in different
department. In remittance department internee learned to make demand drafts ,
balance certificates .In clearing department internee learned about dealing with
customers, counseling them, balance checking , statement printing and so on
.During these period of internship many problems were faced by the internship
and they were also solved . Thus internee now can really understand about the
banking scenario in general.

3.2 Conclusion

Nepal Bank limited culture is built on a set of core values: client focus, teamwork,
meritocracy, ethic & integrity, pioneering. The company is committed to its
clients' best interests as well as preserving a good relationship by defining
realistic objectives.

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Since the establishment of Nepal Bank Limited, it has aimed to become the
leading bank of Nepal by that provides outstanding services to its customers.

The services that Nepal Bank Limited provides have a great market penetration
not only because of their features but also the profit and markup rates that they
charge. Also the products that Nepal Bank Limited provides cater to sector of the
economy.

Furthermore, as the bank is growing, new and more energetic employees are
entering which is sure to invigorate the performance of the bank.

Lastly, to become the leading bank of Nepal, Nepal Bank Limited has to
benchmark its services to its major competitors in the industry or the market
leader in the industry and provide a continuous mean of improvement in its
existing products and services, while introducing new ones to the industry.

3.3 Recommendations

 NBL should concentrate on better logistics like better maintenance of

printer, good paper quality for cheques, good UPS and the like.
 Information should be timely conveyed to customers regarding any change
in regulations.
 Training needs to be provided to employees regarding use of the system
and computer skills also needs to be brushed upon.
 Try to do better in giving services like instant ATM cards, etc. It will be
better if the bank follows new network that will also be used outside the
country.
 The good communication flow between bottom to top as well as top to
bottom level, staffs etc.
 New products are necessary as there is growing competitive market.
 More number of computers are needed in the customer service department

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 so that there will be no rush inside the department
 Sometimes refreshment programs for the employees can be carried out to
motivate the employees.
 The provision of job rotation has to be made to make the employees
familiar with the works and to make the work done if anyone is absent.

Nepal Bank has been giving its best services toward its customers .It always
thinks of new and better way of serving its customers. Its hard work and banking
facilities has able the bank to survive as one of the leading banks of the nation
despite of rapid increase of number of banks and tough competition in the
Nepalese banking environment.

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 BIBLIOGRAPHY

Annual report of Nepal Bank Limited

Shrestha, M.K. &Bhandari, B.D (2008).Financial Markets and Institutions

Kathmandu, Asmita Publication

Nepal Bank Limited. Available <http://www.nbl.com.np//

Website: Available <http://www.google.com// [online]

Website: Available <http://www.wikipedia.com// [online]

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