HUMAN RESOURCES DEPARTMENT OF KUMARI BANK

LITIMED

AN INTERNSHIP REPORT

BY
DURGA DUMRE
EXAM ROLL NO. 939/15
T.U. Reg No. 7-2-0032-0008-2015

An Internship Report Submitted to

Faculty of Management, Tribhuvan University
in the partial fulfillment of the requirements for the degree of
Bachelor of Business Management

at
Saraswati Multiple Campus
Tribhuvan University

Kathmandu
August, 2019
2
HUMAN RESOURCES DEPARTMENT OF KUMARI BANK
LIMITED

AN INTERNSHIP REPORT

BY
DURGA DUMRE
Exam Roll No. 939/15
T.U. Reg No. 7-2-0032-0008-2015

An Internship Report Submitted to

Faculty of Management, Tribhuvan University
in the partial fulfillment of the requirements for the degree of
Bachelor of Business Management

at
Saraswati Multiple Campus
Tribhuvan University

Kathmandu
August, 2019

3
4
 STUDENT’S DECLARATION
I hereby declare that the internship report entitled HUMAN RESOURCE
DEPARTMENT OF KUMARI BANK LIMITED submitted to the Faculty of
Management, Tribhuvan University, Kathmandu is an original peace of work under the
supervision of (Mani Prasad Aryal), faculty member of Saraswati Multilple Campus,
Lekhnathmarg, Kathmandu and is submitted in partial fulfilment of the requirements for
the award of the degree of Bachelor of Business Management (BBM). This internship
report has not been submitted to any other university or institutions for the award of any
degree or diploma.
.

-------------------
Durga Dumre
02-08-2019

ii
iii
 APPROVAL SHEET
This is to certify that the Internship Report

Submitted By:
DURGA DUMRE

HUMAN RESOURCE DEPARTMENT OF KUMARI BANK LTD

We certify that we have read this document and in my opinion, it is satisfactory in scope
and quality area as an internship report in partial fulfillment for the undergraduate course,
Bachelor of Business Management (BBM) held at Saraswati Multiple Campus,
Tribhuvan University.

………………. ………………… ………………….

Mani Prasad Aryal Narayan Prasad Aryal Dr.Golman Gurung

Supervisor Program Director Campus Chief

iv
 ACKNOWLEDGEMENTS
The report entitled HUMAN RESOURCE DEPARTMENT OF KUMARI BANK
LIMITED is prepared for the partial fulfillment of the requirements for the degree of
Bachelor of Business Management offered by Tribhuvan University, on the basis of the
activities performed and experience gained during the internship period.I would like to
express my deep and sincere gratitude to Tribhuvan University, for providing great
opportunity to enhance my educational knowledge and build up skills of practical
working conditions.

Firstly, I would like to express my sincere gratitude to my supervisor, Mani Prasad Aryal,
for the guidance, constant supervision and clarification. Secondly, I am extremely
thankful to my campus chief Golman Gurung, director Narayan Prasad Aryal and the
college management for providing support and other necessary documents during the
internship program and report preparation.
I would like to evince my sincere appreciation to Rohit Singh, Head HR Corporate Office
Tangal. Also I would like to thank my supervisor Pushpa Shrestha for her proper
guidance, suggestion and encouragement for directing intern to the right track despite of
her busy schedule and would like to thank Ashima Sharma, Kamala Ghimre, Sywash
Khatiwada, Ashu Chand, for their kind co-operation and support during internship period
despite of their busy schedule. Also I would like to thanks the then Head HR Rohit Singh
for placing me in Human Resource department and HR staff Ashima Sharma for her
proper guidance in the initial days of my intern.

Finally I would like to give sincere thanks tomy parents, my teachers, friends and seniors
for making this study esteemed by providing consistent encouragement, support, and
congenial atmosphere to complete it.

Durga Dumre

August, 2019

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Table of Contents
Cover page…………………………………………………………………………………………………………………………………i

STUDENT’S DECLARATION ............................................................................................................... ii

APPROVAL SHEET ............................................................................................................................ iv
ACKNOWLEDGEMENTS .................................................................................................................... v
LIST OF TABLES ................................................................................................................................ ix
LIST OF ABBREVIATIONS .................................................................................................................. x
CHAPTER I ........................................................................................................................................ 1
INTRODUCTION ................................................................................................................................ 1
1.1 Background ............................................................................................................................ 1
1.2 Objectives .............................................................................................................................. 2
1.3 Methodology .......................................................................................................................... 2
1.3.1 Organization selection .................................................................................................... 3
1.3.2 Placement ........................................................................................................................ 3
1.3.3 Duration .......................................................................................................................... 3
CHAPTER II ....................................................................................................................................... 4
INTRODUCTION OF THE BANNKING INDUSTRY ............................................................. 4
2.1 Background ........................................................................................................................ 4
2.2 Evolution and growth of banking in Nepal ........................................................................ 5
2.3 Types of bank..................................................................................................................... 6
2.3.1 Central Bank ....................................................................................................................... 6
2.3.3 Agricultural Banks ............................................................................................................ 10
2.3.6 Saving Bank ...................................................................................................................... 11
2.3.7 Rural Bank ........................................................................................................................ 11
2.4 Introduction to commercial Bank ........................................................................................ 12
CHAPTER III .................................................................................................................................... 15
INTRODUCTION OF KUMARI BANK LIMITED ................................................................ 15
3.1 Background ...................................................................................................................... 15
3.1.1 Vision ............................................................................................................................ 16
3.1.2 Mission.......................................................................................................................... 16
3.2 Objectives of KBL ..................................................................................................... 17

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 3.3 Product and services .................................................................................................. 17
3.3.1 Deposits......................................................................................................................... 17
3.3.1.1 Kumari Pariwar Surakshya Bachat Khata .............................................................. 17
3.3.2 Mobile Banking ..................................................................................................... 19
3.3.3 Internet Banking..................................................................................................... 20
3.4.4 ATM Card ..................................................................................................................... 20
3.4.5 Cheque processing ........................................................................................................ 20
CHAPTER IV .................................................................................................................................... 21
ANALYSIS OF ACTIVITIES PERFORMED ........................................................................................... 21
4.1 Background .......................................................................................................................... 21
4.1.1 Human Resource Department ....................................................................................... 21
4.1.1.1 Staff Account Opening........................................................................................... 22
4.1.1.2 KYE Update ........................................................................................................... 23
4.1.1.3 Handling and Recruiting ............................................................................................ 24
4.1.1.4 Training and Development..................................................................................... 24
4.1.1.5 Handling Compensation......................................................................................... 24
4.1.1.6 Employee Benefit................................................................................................... 25
4.1.1.7 Employee Relations ................................................................................................... 25
4.1.1.8 Legal Responsibilities ............................................................................................ 25
4.1.1.9 Bank Security ......................................................................................................... 25
4.1.2 Pay Decision .......................................................................................................... 26
4.1.3 Applicant Screening ............................................................................................... 26
4.1.4 Executive Requirement ................................................................................................. 26
4.1.5 Payroll and Benefits ...................................................................................................... 26
4.1.6 Employee Performance Improvement Plans .......................................................... 27
4.1.7 Photocopying Important Document .............................................................................. 27
4.1.8 Record Keeping ............................................................................................................ 27
4.1.9 Personal Filing .............................................................................................................. 27
CHAPTER V ..................................................................................................................................... 27
LESSON LEARNT AND CONCLUSION............................................................................................... 27
5.1 Lesson learnt .................................................................................................................. 27
5.2 SWOT Analysis ............................................................................................................. 28

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5.2.1 Strength of KBL................................................................................................................ 29
5.2.2 Weakness of KBL ......................................................................................................... 29
5.2.3 Opportunities of KBL ................................................................................................... 29
5.2.4 Threat of KBL ............................................................................................................... 29
5.3 Conclusion ..................................................................................................................... 29

viii
 LIST OF TABLES
Table 1.1 Internship placement and duration……………………………………………..3

Table 2.1 Classification of Financial sector in Nepal………………………..……..…….6

ix
 LIST OF ABBREVIATIONS

ATM Automatic Teller Machine

BA Bachelor in Arts

BBA Bachelor in Business Administration

BBM Bachelor in Business Management

BBS Bachelor in Business Studies

BCA Bachelor in Computer Application

BE Bachelor in Engineering

BFIs Bank and Financial Institution

BHM Bachelor in Hotel Management

BIM Bachelor in Information Management

BPA Bachelor in Public Administration

BSC Bachelor in Science

CV Curriculum vitae

FOM Faculty of Management

HRD Human Resource Department

KBL Kumari Bank Limited

KYC know Your Customer

KYE Know Your Employee

LTD Limited

NPR Nepalese Rupee

x
NRB Nepal Rastra Bank
PVT Private

SMS Short Message Service

SWOT Strength opportunities weakness and Threat

SWOT Said to Contain

TU Tribhuwan University

USD United States Dollar

xi
 CHAPTER I

INTRODUCTION

1.1 Background

Tribhuvan University (TU) is a public university established in 1959 in Kirtipur. It is the

oldest university in Nepal as well as tenth university in the world .The university offers
2,079 undergraduate and 2,000 postgraduate programs. The chancellor of TU is Prime
Minister of Nepal whereas the vice chancellor is Prof .Dr. Tirtha Raj Khaniya.TU marked
its golden jubilee in 2009 organizing programme. The university at Kirtipur, spreads over
an area of 154.77 hectares, constitutes the Central Administrative Office and the Central
Campus.TU has 7841 teaching facility and 7413 non-teaching staff including the
supporting staff .It is ranked among the 800-1000 based universities of the world by
Times Higher Education ranking in 2019. It is ranked among the 251-300 best
universities in Asia. (Wikipedia, 2010).

TU offers various programs like bachelor in business administration (BBA), Bachelor in

Business Studies (BBS),Bachelor in Arts (BA),Bachelor of Social Work (BSW),Bachelor
of Computer Application (BCA), Bachelor of Science (B.SC), Bachelor of Engineering
(B.E), Bachelor of Information Management (BIM),Bachelor of Public Administration
(BPA),Bachelor of hotel management (BHM),Bachelor of Mounteering Studies (BMS),
Master in Business Management (MBM),Master in Business Studies (MBS),Master in
Business Administration (MBA),Master in Hotel Management (MHM),Master in Public
Administration (MPA),Master in Lab Technician (MLT), Master in Public Health
(MPH), Master in Dental Surgeon (MDS),Master in Arts (MA), Master in Sociology
(MS), Master in Travel and Tourism Management (MTTM).

BBM stands for Bachelor of Business Management is actually a new program introduced
by TU. BBM like that of BBA is a four year program comprising 8 semesters divided
over 120 credit hours. This course is designed in such a way that this can be cornerstone
for aspiring business leaders and qualified managers of futures. The Programme is
designed to address national and international needs of management education with the

1
aim of developing efficient and capable manpower for business, government and social
sectors. The Bachelor of Business Management (BBM) of Tribhuvan University is a
special program in semester system of Tribhuvan University, designed to develop
socially responsive, creative, and result oriented management professionals to fill up the
middle level managerial positions in the rapidly growing business sector in Nepal and
abroad.(Tribhuvan University, 2007).

1.2 Objectives

The general objectives is to gain valuable insights into the business sector, more
specifically the banking industry in addition to this major purpose is to relate the
theoretical knowledge with the practical experience and to enable us to be more
experience in the real life techniques of achieving result through both individual effort
and team building along with the knowledge gain from academic environment. The
specific objectives are:

1. To study the banking procedure carried out in branch

2. To identify the various activities done under the Human Resource Department
3. To know about various financial product and services provided by the bank
4. To analyze practical implication of the theoretical aspect learn during BBM
5. To develop managerial skill of the internship programme as well as tackle real life
problem in the organization.

1.3 Methodology

This study is making this report is mostly descriptive in nature where the facts and
findings are prescribed in a systematic manner. The information required for preparation
of report has been collected from observation of the activities that are performed in the
banks and the personal interview and consultation with the staffs involved in different
department of the bank. The secondary data are used in the report are obtained from
websites, brochures, annual report, books. Completion of the internship is the
combination of different types of activities .it starts from the selection of the organization
for the internship, performance and placement in different parts of organization.

2
1.3.1 Organization selection

Selection of organization for the internship program is a crucial task. As a student

banking and accounting, to convert the theoretical knowledge into practical field intern
preference would be a financial institution, especially a bank. Kumari bank is a Nepal’s
leading commercial bank. It follows the standard business procedure and contains a good
organizational culture. Intern dropped a letter at KBL which gave the environment that is
necessary for any student doing the internship and luckily got a chance to be a part of it
for eight weeks. The supportive and friendly environment helps the intern to complete the
internship program throughout the proper guidance of the staffs of various departments.
Through their proper guidance, the intern was able to learn more about the organization
culture, work environment and work procedures.

1.3.2 Placement

Intern was placed in KBL Head Office. During the internship period, the intern was
placed in HR department. Every staff of Head Office was supportive and friendly. The
supportive and friendly environment helps the intern to complete the internship period
through the proper guidance of the staff. The internee was requiring handling all the
activities of the department under the guidance and supervision of Mrs. Ashima Sharma,
senior officer.

1.3.3 Duration

According to the Faculty of Management (FOM), we are required to do internship for

eight weeks .So internee worked at Kumari Bank for eight weeks. Internee worked the
entire period in the Human Resource Department. This internship programme has been
fruitful for the internee to get real knowledge of the banking activities of the
organization. The working time was from 9:30am-5:00pm.

Table 1.1

Internship placement and duration

S.N Department Working weeks

1 Human Resource Department (HR) 1-8

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 CHAPTER II

INTRODUCTION OF THE BANNKING INDUSTRY

2.1 Background

Banking sector plays an importance role in economics development of the country. It is a

financial institution which deals with money. It accepts deposit run individual and
organizations and grants loan to them. It allows on the deposits made and charges interest
on the loan granted .Since, it accept deposits and grants, it is regarded as the trader of the
money. Further it creates credit and support for the formation of capital. A bank is a
financial institution licensed by a government, which deal with money and credit. Its
primary activities include borrowing and lending money. Many other financial activities
are key players in financial market and offer financial services such as investment funds.
Banking sector is mirror of an economy as it is l inked with almost all economy sectors.
Its linkage with all sector make it a proxy for what is happening in the economy as a
whole. (Edusanjal, 2000)

Pythius of Lydia, in Asia Minor, early from the 5th century BC was the first individual
banker of which there are records. Many of the bankers of the Greek city-states were
“metecos” or foreign residents. Around 371 B. C., Passion, a slave, became the richest
and most famous banker in Greece. There is proof that this type of operation was possibly
carried out in Abraham’s time. As the ancient Sumerians of the Sinar plains had “a
singularly complex system of lending and receiving loans, keeping money in deposit and
providing letters of credit.” In Babylon, as later in Greece, banking activity centered
around religious temples, whose sacrosanct nature meant security against thieves.

4
Banks in Roman times did not work like modern ones. The majority of banking activities
were carried out by individuals and not by institutions. The enormous investments were
financed by the generators, while those who worked professionally in the business of
money and credit were known by various names, such as argentarii (banker), nummular
(money changer), and coactors (collectors). Medieval trade fairs, such as Hamburg,
contributed to the growth of banking in a curious way. Moneychangers issued available
documents with other fairs, in exchange for foreign exchange. These documents could be
collected at another fair in a different country or at a future fair in the same place. They
were redeemable at a future date they were often discounted by an amount comparable to
an interest rate. (Kent, 2019)

2.2 Evolution and growth of banking in Nepal

The origin of the banking system in Nepal started with the name of Shankerdhar, a
Sundra merchant of Kantipur who paid all the outstanding debts in the country. In
historical term, there is a story that Gunkamdev borrowed money in 723 Sambat to
reconstruct Kathmandu. In the 11th century, during Malla regime, Jayasthiti Malla
developed 64 different classes of caste according to their occupation. During that period,
Tankadhari which is a money lender provided debt. "Tejarath Adda” was established in
1877 A.D. during the tenure of Ranaddip Singh, and it was converted into government
financial institution providing credit facilities to people at low-interest rate of 5 percent.
Tejarath Adda distributed credit facilities to the public especially on the collateral of gold
and silver, but it didn’t collect the deposit from the public. (Wikipedia, 2003)

After a long period, the government started to trade with India and Tibet. And the various
indigenous bankers handled even the trade because the transfer of the money could be
safely made only through these bankers. This was even strongly supported by the
situation caused during 1934 A.Ds earthquake where there was a need of finance for the
reconstruction of works. Reviewing these situations, the Udyog Parishad (Industrial
Development Board) was constituted in 1936 AD. A year after its formation, the Udyog
Parishad formulated the “company act” and the “Nepal Bank Act” which established the

5
Nepal Bank Ltd. with the technical cooperation of the Imperial Bank of India, as the first
commercial bank of Nepal.

After the establishment of this bank, different services like accepting deposits, extending
credit facilities for promotion of trade, rendering customer related services and investing
in government bonds and securities were offered to general public. This bank also
performed agency functions and acted as a banker to the government. In fact, it
conducted all the functions of the central bank (except issuance of paper money) till the
establishment of NRB.

2.3 Types of bank

There are altogether 28 commercial banks, 57 development banks, 36 companies’

financial companies and 48 micro-credit development banks in Nepal which are
classified as A, B, C and D class respectively. As of mid January, 2017 (Licensed by
NRB) financial institutions are listed as follows

Table 2.1

Classification of Financial sector in Nepal

S.N Financial institution Class Numbers

1 Commercial Banks A 28
2 Development Banks B 57
3 Financial Companies C 36
4 Micro finance and financial institution D 48

Source: www.nrb.org.np

2.3.1 Central Bank

A central bank, reserve bank, or monetary authority is an institution that manages

the currency, money supply, and interest rates of a state or formal monetary union, and
oversees their commercial banking system. In contrast to a commercial bank, a central

6
bank possesses a monopoly on increasing the monetary base in the state, and also
generally controls the printing coining of the national currency, which serves as the
state's legal tender. A central bank also acts as a lender of last resort to the banking
sector during times of financial crisis. Most central banks also have supervisory and
regulatory powers to ensure the solvency of member institutions, to prevent bank runs,
and to discourage reckless or fraudulent behavior by member banks. It is the bank that
provides financial and banking services to the government of a country and its banking
system as well and also formulates and implements the monetary policy. A central bank
is fundamentally a chief bank of a particular nation. The essential responsibilities of the
central bank include issuing and maintaining a stable influx of currency, keeping inflation
under control and ensuring optimal employment. Other task of the central bank including
holding deposits or the reserves of other banks and overseeing lending and exchange
practices of commercial lenders. The central bank also plays a vital role of keeping in
reserve the nations emergency funds. Central bank has a wide range of responsibilities
from formulating monetary policy to implementing goals such as price stability, financial
service stability, and economic growth etc. central bank issue currency, function as the
bank of the government, regulate the credit system, oversee commercial bank, manage
exchange reserves and act as a lender of the last resort. (Nepal, 2015)

A central bank also referred as the reserve bank, or monetary authority is a banking
institution that is granted the exclusive privilege to lend a government its currency. Like a
normal commercial bank, a central bank charges interest on the loans made to the
government of the country the bank exist for, and to other commercial banks, typically as
a lender of the last resort. However, a central bank is distinguished from a normal
commercial bank due to its monopoly on creating the currency of the nations in the form
of legal tender. It is a bank that can lend money to other banks in times of need. There
were only few countries which had central bank in the 19th century. The first central
bank is the risks bank of Swedan established in 1656. Then bank of England started
functioning as a central bank (1694) followed by the bank of france (1800). Bank of
Japan was established in 1888, and the US Federal Reserve System in 1913. The history
of bank of England is universally accepted as the evolution of central banking principles
and techniques. The success of bank of England as a central bank influenced many

7
countries to set up their own central bank of the same model. By the end of 19th centaury
almost all European countries had established central banks. In the twentieth century, the
establishment of central banks took place very rapidly throughout the world. It was
according to the recommendation of international financial conference held at Brussels
Belgium in 1929.Today there is hardly any country which does not have a central bank.

Central Bank’s primary function is to stabilize nation’s money supply while other active
duties include controlling subsidized-loan interest rates and acting as a lender of last
resort to the banking sector during times of financial crisis. Central banks also have
supervisory powers to ensure financial sector stability and to protect the interest of public
depositors. Most of the countries have an “independent” Central Bank, that is, one which
operates under rules designed to prevent political interference. Some examples of central
banks are the European Central Bank (ECB), the Federal Reserve System in the United
States, Reserve Bank of India (RBI), Nepal Rastra Bank (NRB) etc.

2.3.2 Commercial Bank

Commercial bank is a type of financial institution that accepts deposits, offers checking
account services, makes various loans, and offers basic financial products like certificates
of deposit (CDs) and savings accounts to individuals and small businesses. A commercial
bank is where most people do their banking, as bank. Commercial banks make money by
providing loans and earning interest income from those loans. The types of loans a
commercial bank can issue vary and may include mortgages, auto loans, business loans,
and personal loans. A commercial bank may specialize in just one or a few types of loans.
After the enforcement to lend in priority and deprived sector, these banks initiated to
provide the credit to small and cottage industry, agriculture and services etc. Nepal Bank
Ltd was established in 15th November 1937 is the first commercial bank in Nepal.
Generally the term ‘banks’ is understood as commercial banks. Commercial banks are
those institutions which are involved in accepting deposits and advancing loans.
Commercial banks perform all the business transactions of a typical bank. It is often said
that a banker is one who deals with other people’s Money (OPM).

8
A commercial bank is a financial institution that is authorized by law to receive money
from business and individuals and lend money to them. Commercials banks are open to
the public and serve individuals, institutions, and businesses. A commercial bank is
almost certainly the type of bank you think of when you think about bank because it is
the type of bank that most people regularly use. Banks are regulated by federal and state
laws depending on how they are organized and the services they provide. Commercial
banks are also monitored through the federal Reserve System. Commercial banks, as the
name itself signifies, are designed to accept deposit and advance credit to commercial
sector. Their operations are mainly commercial in nature and they handle short term
finance. But new developments have come up as they are also handling medium term and
long term financing. Commercial banks, these days, undertake numerous kinds of
financial activities and provide numerous kinds of financial services. “A bank is a
company which accepts deposits of money from the public, for the purpose of lending or
investment, repayable on demand or otherwise.” The definition excludes mere money
lending from the banking business. Dudley Luckett rightly observes commercial bank to
be a “department store of financial services.”

Banks play an important role in the economics development of a country. Commercial

books are the heart of a financial system, holding the deposits of millions of people,
governments and business units. They make funds available through their lending and
investing activities to borrowers; individuals, business houses and governments. Doing
so, they facilitate both the flow of goods and services from producer to consumers and
the financial activities of the government. From the above background, commercial banks
are generally understood as banks, which involved in collecting other peoples’ money
and offering various financial solutions to the individual, businesses and other people. In
the present context the commercial bank’s are not limited to the single act of deposit
taking and advancing loans for commercial purposes. They offered various types of
financial services. (Google, 2014)

9
2.3.3 Agricultural Banks

Agriculture is to provide capital to acquire any kind of productive assets, land and/or
machinery. Credit provides the means for many farmers to adjust their operations to keep
up with the constant changes and, by doing so, to improve their operations. This Bank,
besides providing credit to agriculture has been a veiling credit to ago-industries such as
livestock, bee-keeping poultry etc. and has extended their business in higher purchase and
other loan also.

2.3.4 Development Bank

Development bank, national or regional financial institution designed to provide medium-

and long-term capital for productive investment, often accompanied by technical
assistance, in poor countries.
The number of development banks has increased rapidly since the 1950s; they have been
encouraged by the International Bank for Reconstruction and Development and
its affiliates. The large regional development banks include the Inter-American
Development Bank, established in 1959; the Asian Development Bank, which began
operations in 1966; and the African Development Bank, established in 1964. They may
make loans for specific national or regional projects to private or public bodies or may
operate in conjunction with other financial institutions. One of the main activities of
development banks has been the recognition and promotion of private investment
opportunities. Although the efforts of the majority of development banks are directed
toward the industrial sector, some are also concerned with agriculture. (Bank, 2008)
Development banks may be publicly or privately owned and operated, although
governments frequently make substantial contributions to the capital of private banks.
The form (share equity or loans) and cost of financing offered by development banks
depend on their cost of obtaining capital and their need to show a profit and pay
dividends.
2.3.5 Corporative Bank

Cooperative banking is retail and commercial banking organized on a cooperative basis.

Cooperative banking institutions take deposits and lend money in most parts of the world.
Cooperative banking, as discussed here, includes retail banking carried out by credit

10
unions, mutual savings banks, building societies and cooperatives, as well as commercial
banking services provided by mutual organizations (such as cooperative federations) to
cooperative businesses.

Cooperative banks are owned by their customers and follow the cooperative principle of
one person, one vote. Co-operative banks are often regulated under both banking and
cooperative legislation. They provide services such as savings and loans to non-members
as well as to members and some participate in the wholesale markets for bonds, money
and even equities. Many cooperative banks are traded on public stock markets, with the
result that they are partly owned by non-members. Member control is diluted by these
outside stakes, so they may be regarded as semi-cooperative. Cooperative banking
systems are also usually more integrated than credit union systems. Local branches of co-
operative banks select their own boards of directors and manage their own operations, but
most strategic decisions require approval from a central office. Credit unions usually
retain strategic decision-making at a local level, though they share back-office functions,
such as access to the global payments system, by federating.

2.3.6 Saving Bank

A savings bank is a financial institution whose primary purpose is accepting savings
deposits and paying interest on those deposits.

They originated in Europe during the 18th century with the aim of providing access to
savings products to all levels in the population. Often associated with social good these
early banks were often designed to encourage low income people to save money and have
access to banking services. They were set up by governments or by socially committed
groups or organizations such as with credit unions. The structure and legislation took
many different forms in different countries over the 20th century.

2.3.7 Rural Bank

People living in rural areas need the same banking services as those living in larger
towns and cities. A community bank in a rural area might offer regular retail banking
services, including loans and mortgages, that let personal and business customers
manage their banking needs close to home. Depending on their location and the local

11
business focus, some rural banks develop specialty commercial skills in areas such as
agribusiness. For example, some operate solely within the Farm Credit System a
network of borrower-owned lending cooperatives and specialized service organizations
specializing in business credit and funding for farming, ranching and other agricultural
customers. (Bank, 2007)

2.3.8 Merchant Bank

A merchant bank is a company that conducts underwriting, loan services, financial

advising, and fundraising services for large corporations and high net worth individuals.
Unlike retail or commercial banks, merchant banks do not provide services to the general
public. They do not sprovide regular banking services like checking accounts and do not
take deposits. These banks are experts in international trade, which makes them
specialists in dealing with multinational corporations. Some of the largest merchant
banks in the world include J.P. Morgan, Goldman Sachs, and Citigroup.

2.4 Introduction to commercial Bank

Commercial Banks are one of the major financial intermediaries whose primary function
is the transfer of monetary resources from the savers to the users. They have the widest
range of activities and they provide a large amount of the money supply. They perform
several functions as various types of deposit facilities like the current, saving and fixed
deposit; safety of public money, remittance of money, letter of credit, loans, locker
facility, foreign exchange, serving as an agent of its clients etc. It is a type of bank that
provides services such as accepting deposits, making business loans, and offering basic
investment products that is operated as a business for profit. It can also refer to a bank, or
a division of a large bank, which deals with corporations or large/middle-sized business
to differentiate it from a retail bank and investment bank.

Nepal bank limited is the first commercial bank of Nepal which was established in 1994
B.S. It is a semi-government bank. The second commercial bank of Nepal is Rastriya

12
banijya Bank. It was established in 2002 B.S. After reinstatement of multiparty
democracy in the country, several joint venture banks were established, such as Standard
Chartered bank, Nabil Bank, Nepal Investment Bank, Himalayan Bank, Everest Bank,
Nepal State Bank of India, Nepal Industrial and Commercial Bank, Kumari Bank,
Machhapuchhre Bank, Bank of Kathmandu and so on. With the increasing in a number of
commercial banks competition among them have also become more complex. In general
it performs all kinds of banking business and generally finances trade and commerce. It
occupies quite an important place in the framework of every economy.

A commercial bank is such type of bank which deals in money exchange, accepting
deposits, advancing loans and other commercial transitioning except some special
functions done by some specified bank such as Co-operative Bank, Agricultural Bank
and Industrial Banks. The main function of the commercial bank simply is ‘to borrow to
lend’. Besides, there are other functions which have been developed according to need of
the society as accepting deposits, providing loans, investments, discounting bills off
exchange, transfer of money, capital formation and miscellaneous functions. There are
altogether 28 commercial banks in Nepal. A commercial bank is a financial institution
which performs the functions of accepting deposits from the general public and giving
loans for investment with the aim of earning profit. They generally finance trade and
commerce with short-term loans. They charge high rate of interest from the borrowers but
pay much less rate of Interest to their depositors with the result that the difference
between the two rates of interest becomes the main source of profit of the banks. The two
most distinctive features of a commercial bank are borrowing and lending, i.e.,
acceptance of deposits and lending of money to projects to earn Interest (profit). In short,
banks borrow to lend. The rate of interest offered by the banks to depositors is called the
borrowing rate while the rate at which banks lend out is called lending rate.

The difference between the rates is called ‘spread’ which is appropriated by the banks.
Mind, all financial institutions are not commercial banks because only those which
perform dual functions of accepting deposits and giving loans are termed as commercial
banks. For example post offices are not bank because they do not give loans.

13
The most function of commercials banks is to accept deposits from the public. Various
sections of society, according to their needs and economic condition, deposit their
savings with the banks. For example, fixed and low income group people deposit their
savings in small amounts from the points of view of security, income and savings in the
banks for the convenience of payment. Therefore, keeping the needs and interests of
various sections of society, banks formulate various deposit schemes. Modern banks give
mostly secured loans for productive purposes. In other words, at the time of advancing
loans, they demand proper security or collateral. Generally, the value of security or
collateral is equal to the amount of loan. This is done mainly with a view to recover the
loan money by selling the security in the event of non-refund of the loan. At limes, banks
give loan on the basis of personal security also. Therefore, such loans are called as
unsecured loan. Similarly, banks advance loans to its customer’s up to a certain amount
through over-drafts, if there are no deposits in the current account, For this banks demand
a security from the customers and charge very high rate of interest.

It is the most prevalent and important method of advancing loans to the traders and
business firms by discounting their bills. In this way, businessman gets loans on the basis
of their bills of exchange before the time of their maturity. The banks invest their surplus
funds in three types of securities- Government securities, other approved securities and
other securities. Government securities include both, central and state governments, such
as treasury bills, national savings certificate etc. Other securities include securities of
state associated bodies like electricity boards, housing boards, debentures of land
Development Banks units of UTL, shares of regional rural banks etc. Banks function in
the form of agents and representatives of their customers. Customers give their consent
for performing such functions. Banks collect cheques, drafts, bills of exchange and
dividends of the shares for their customers. Banks make payment for their clients and at
times accept the bills of exchange; of their customers for which payment is made at the
fixed times.

14
 CHAPTER III

INTRODUCTION OF KUMARI BANK LIMITED

3.1 Background
Kumai bank limited came into existence as the fifteenth commercial bank of Nepal by
starting its banking operations from April 03, 2001 with an objective of providing
competitive and modern banking services in the Nepalese financial market. The bank has
paid up capital of Rs. 26, 99,166.532 of which 51 percent is contributed from promoters
and remaining from public before acquiring four financial institutions Kasthamandap
Development Bank Limited, Mahakali Bikas Bank limited, Kankrebihar Bikas Bank
Limited, and Paschimanchal Finance Company Ltd. jointly operation was started in 16
Ashar, 2074.

15
Kumari Bank Ltd has been providing wide range of modern banking services through 87
points of representatives located in various urban and semi urban part off the country, 95
branches outside and inside the valley and 3 extension counters. The bank is pioneer in
providing some of the latest / lucrative banking services like E-Banking and Mobile
Banking services in Nepal. The bank always focus on building sound technology driven
internal system to cater the changing needs of the customer that enhance high comfort
and value. Similarly the bank has been providing 365 days banking facilities, extended
banking hours till 7 pm in the evening, utility bill payment services, Inward and Outward
Remittance services, Online remit services and various other banking services.

The bank has been offering both Domestic and International Visa Debit card and Credit
card, accessible in entire VISA linked ATMs in Nepal and India providing additional
services to the customers. Along with this, the bank has also been offering latest Mobile
Banking and Internet Banking Services. The bank has been able to get recognition as an
innovative and fast growing institution striving to enhance customer value and
satisfaction by banking transparent business practice, professional management,
corporate governance and total quality management as the organizational mission. The
key focus of the bank is always center on serving unfulfilled needs of all classes of
customer located in various parts of the country by offering modern and competitive
banking product and services in their door step. The bank always prioritizes the priorities
of the valued customers. (Wikipedia, 2019)

3.1.1 Vision
Kumari bank vision is to be the preferred financial partner to our customers, a centre of
career growth to our employees, and to maximize our shareholders’ value, while
contributing to our nation’s financial sector and to its economic welfare.

3.1.2 Mission

Kumari bank mission is to deliver innovative product and services to our customers, use
these innovative products to achieve financial inclusion, and do so by exemplifying good
corporate governance, proactive risk management practices, and superior corporate social
responsibility.

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3.2 Objectives of KBL

The core values or the objectives of the organization mainly are to meet customer
satisfaction through easy and quality service other are mentioned below

1. Bringing innovation and customization to meet customer need and to hold quality of
service
2. Provide secured future for its internal employees
3. Attractive return to its investors
4. Lower rates for loan clients
5. Upholding honesty and sincerity
6. Engaged in various social activities fulfilling corporate social responsibilities
7. Strengthen the market shares.

3.3 Product and services

Kumari ban offers different kind of product and services according to the customer needs.
The various product and services of KBL are described below:

3.3.1 Deposits
The bank usually makes their cash only from deposit of the customers. The defined
customers deposit their money and various properties in different subject of deposits.
Kumari bank provides different types of deposits i.e.

3.3.1.1 Kumari Pariwar Surakshya Bachat Khata

Any individual who is willing to pen saving account with our bank and has not exceeded
65 years of age (at the time of account opening ) are eligible to open pariwar surakshya
bachat khata after submitting necessary forms and documents.

Minimum balance Rs 10,0000.00

Family coverage limit Family of four(husband/wife and two children
nominated as insured

17
Nomination method Nomination of family members to be
incorporated under this insurance scheme has
to be done by mentioning the names of family
of four in KYC form as well as in the
additional declaration sheet provided with the
form

Documents required to be submitted -citizenship of account holders and insurance

family members
-Birth certificate in case of minor
-Three copies of recent passport size photo
-Completely filled account opening form
-Filled declaration form
-All resident/non-resident Nepalese or foreign
citizens who are permitted by the law to open
a bank account are eligible for insurance
coverage as per this insurance scheme.

Age limit for new account opening Not exceeding 65 Years

Features of Kumari Pariwar Surakshya Bachat Khata

1. Minimum balance Rs 10,000.00
2. Interest rate 6.5% P.a.
3. Internet banking free
4. Mobile banking free for first year, charges as per STC from second year onwards
5. Visa debit card free for first year, charge as per STC from second year onwards
6. Any branch banking service free
7. Locker service free for first year, charges as per STC from second year (customer are
subject to receive locker facility as per availability of locker space in relevant branch)

18
8. Free cash withdrawal from any ATM Pariwar surakshya bachat khata holders can
easily transect via ATMs of any Nepalese BFIs from our visa Debit card within Nepal
without incurring any charges
9. Insurance coverage for accidental death coverage and permanent total disability for
couple. Coverage of NPR 2,000,000.00 (NPR 1,000,000.00) for the account holder
and his/her spouse (as applicable)
10. They can claim their insurance coverage even if their age exceeds 6 years
11. Coverage shall only start from the second month of account opening
12. Medical insurance for hospitalization case (hospital admission for more than 24
hours) in hospital within Nepal with coverage up to NPR 100,000.00 or five times for
last three months average balance from the date of account opening (whichever
comes earlier and whichever is lower) for the account holder, his/her spouse and their
two children below 21 years of age (as applicable). Coverage shall only start from the
second month o account opening. The waiting period for claiming this insurance
policy is 15 days from the date of account opening. A family can make multiple
numbers of claims for insurance coverage as long as the maximum claim limit of RS
100,000.00 is reached(only bills of hospitals inside Nepal shall be covered under the
medical insurance coverage
13. Insurance under 10 critical illness coverage up to RS 500,000.00 or five times of last
three months average balance from the date of account opening(whichever comes
earlier and whichever is lower )for the account holder or his/her spouse or their two
children below 21 years of age . coverage shall cover illness like cancer of specified
severity, open chest CABG, first heart attack of specified severity, kidney failure,
requiring regular dialysis, major organ/bone marrow transplant , stroke resulting in
permanent symptoms, permanent paralysis of limbs, open heart replacement or repair
of heart valves, end multiple sclerosis and benign brain tumor.

3.3.2 Mobile Banking

KBL provides mobile banking facilities on request of its account holders. For this
facility the account holder must submit mobile banking form accepting all terms and

19
conditions of bank and provide genuine mobile number. The bank then within two days
sends confirmation of mobile banking service through SMS.

3.3.3 Internet Banking

KBL has further strengthened its Internet banking services by facilitating e-payment for
various utilities with direct link to his/her bank account. Services like: Mobile bill pmt,
pmt for procurement of goods, college fee pmt etc. For this facility the account holder
must submit internet banking form accepting all terms and conditions of bank and
provide genuine e-mail address and account/s to be linked. The bank then within two
on
days provides login password and transaction password to the customers his visit to
bank.

3.4.4 ATM Card

KBL Visa Electron Debit Card, the plastic money makes cash withdrawals with direct
access to bank account. It issues national as well as international debit card to its account
holders. NPR Debit card can be used in Nepal & India and USD debit card can be used
world-wide. At present, 93 KBL ATMs are located different places of Inside and outside
valley.

3.4.5 Cheque processing

Cheque is an instrument in writing containing an unconditional order, addressed to a
banker, sign by the person who has deposited money with the banker, requiring him to
pay on demand a certain sum of money only to order of certain person or to the bearer of
instrument. The interest rate should be put into the system for every accounts opened on
1st date of English calendar. Similarly, when the department receives the authorized
request to maintain interest rate above or below the published interest rate then also the
HRD needs to feed the interest in the system. The system will automatically capitalize the
interest on the last day of every three month.

20
 CHAPTER IV
ANALYSIS OF ACTIVITIES PERFORMED

4.1 Background
Intern is thankful that KBL gave an opportunity to do intern at Human Resource
Department during eight weeks periods. Thought the intern got to learn from a lot from
Human resource department. Intern was highly concern on the activities done in the
department rather that the collecting data for the report. Intern has not gone over data
analysis using standard procedure such as time series, regression analysis, sensitivity
analysis and other statistical tools. . As a service oriented company the major
responsibilities of KBL is to give better services to the clients promptly on their demand.
We were mainly given the responsibility of service related issues under the supervision of
the respective officers. In the period of our internship we helped the organization by
sharing the workload of the respective officers. The working environment was very
comfortable to work in with friendly staffs which made the work easier.

4.1.1 Human Resource Department

Human resource is the very important part of the organization it is also the part of the
management and all the functions, feature of management and also present in HRD. It
deals with organizational function that deals with issues related to people such as
compensation, hiring, performance management, organization development, safety
wellness, benefit, employee motivation, communication, administration, and training.
HRD is also a strategic and comprehensive approach to managing people and the
workplace culture and environment. It is the utilization of human resource to achieve
organizational objectives. Human Resource Department is designing management system
to ensure that human talent is used effectively and efficiently to accomplish
organizational goals.

21
The term Human Resource Management is the improved version of the older personnel
management. Personnel management is concerned with the personnel functions such as
recruitment and selection, reward, appraisal, development, industrial relation, grievance
and discipline, retirement resignation and dismissal. According to DeCenzo and Robbins,
1993, Human Resource Department is concerned with the people dimension in
management. Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to high level of performance, and ensuring that
they continue to maintain their commitment to the organization are essential to achieving
organizational objectives. Human Resource Department incorporates everything
concerning personnel, so that someone with a degree can work as a manager in a
personnel department. It is the process of bringing people and organization together so
that the goals of each ate met. It is the part of the management process which is
concerned with the management of human resource inn organization. It is the art of
procuring, developing and maintaining competent workforce to achieve the goals of an
organization in an effective and efficient manner. Similarly, Human Resource
Department should be linked with strategic goals and objectives in order to improve
business performance and develop organizational cultures that foster innovation and
flexibility. It is a process of bringing people and organization together so that the goals of
each are met. Hr is the multidisciplinary. It applies the discipline of Economics,
Psychology, Sociology and Law. The following constitute the core of HRD

1. HRD consist of people who manage staff and organization

2. It involves the application of management functions and principles
3. Decisions relating to employees must be integrated
4. It influences the effectiveness of an organization

4.1.1.1 Staff Account Opening

Bank and financial institutions have their own special account opening from maintaining
the minimum regulatory requirements. These forms may vary from the product to
products. A specific product may require its own field of information while other may
have different. But the various account opening forms should maintain minimum record
of information which is inevitable to know about their customer. The field of information

22
may be name, date of birth, address photograph, location map etc. The form must
include those requirements which are demanded by the prevailing rules and regulations.
Know Your Employee (KYE) guidelines presents the minimum required information
with following supporting evidence for various customers, which are presented below
1. Copy of citizenship
2. Photograph
3. Reference/Introduction from existing accountholder
Individual account where the staff wants his account to be operated by another person, a
mandate in writing with the specimen signature of the agent who is to operate the account
or power of attorney is obtained by the bank. This usually occurs in joint accounts,
partnership form and the companies. A joint account is one that is opened in the names of
more than one individual and all other account have their signature in the account
opening form. In joint account mode of operation has to be authorized by all account
holders on the account opening form itself or subsequently revised by a letter signed by
all of them.

4.1.1.2 KYE Update

Nepal Rastra Bank (NRB) has advised bank to follow a KYE guideline, certain personnel
information of the account opening prospect or the employee is obtained. The objective
of obtaining KYE information is to enable the Bank to have true identification of its
employee. This is also in the interest of employee to safeguard their hard earned money.
The identification of a employee is a very critical process with a view to protect the
employee interests by preventing from fraudsters who may use the name, address and
forge signature to undertake illegal business activities, encashment of stolen drafts,
cheques, dividend warrants, etc. This also helps to safeguard banks from being
unsuspectingly used for the transfer of deposit of funds derived from criminal activity or
for financing terrorism. Identification of employee will also help to control financial
frauds, identify money laundering and suspicious activities, and for scrutiny / monitoring
of large value cash transactions. Money Laundering refers to conversion of money
illegally obtained to make it appear as if it was earned from a legitimate source. Money
laundering is being employed by launderers worldwide to conceal criminal activity

23
associated with it such as drugs arms trafficking, human trafficking, terrorism and
extortion. All crimes that produce a financial benefit give rise to money laundering.

KYE update is the recent activity that is carried out in all the commercial bank as
instructed by Nepal Rastra Bank. So as per the instruction, I distributed and helped the
employee to fill up the KYE form at Kumari Bank Limited, Corporate Office Tangal.
For KYE update, we were told to inform the employee who visit the bank and who
doesn’t often visit the bank they were informed through telephone calls.

4.1.1.3 Handling and Recruiting

Hiring and recruiting is one of the primary functions of the human resources
department is to oversee hiring and recruiting within an organization. The department
actively recruits, screens, interviews and hires qualified candidates for open positions.
The department administers skills assessment and personality tests to match candidates
with the right job within the company. The human resources department also develops
employee handbooks that explain company policies and procedures to new hires.

4.1.1.4 Training and Development

The human resources department handles the training and development of staff within
an organization. It creates training programs and conducts training for new hires and
existing employees. The human resources department also works in conjunction with
department managers and supervisors to determine the training needs of employees.
They are also responsible for contracts with training providers and monitoring training
budgets.

4.1.1.5 Handling Compensation

The human resources department is responsible for various aspects of employee
compensation. The department typically handles employee payroll and ensures
employees are paid accurately and on time, with the correct deductions made. Human
resources departments also manage compensation programs that include pensions and
other fringe benefits offered by the employer.

24
4.1.1.6 Employee Benefit
The human resources department manages all aspects of employee benefits, includ ing
health and dental insurance, long-term care or disability programs as well as employee
assistance and wellness programs. The department keeps track of employee absences
and job-protected leave, such as family medical leave. Human resources department
representatives ensure employees receive the proper disclosures regarding benefit
eligibility or if benefits are no longer available because of a layoff or termination.

4.1.1.7 Employee Relations

The human resources department handles employee relations matters within an
organization. Employee relations involve employee participation in different aspects of
organizational activities. The department maintains the relationship between
employees and management by promoting communication and fairness within the
company. The department also handles disputes between employees and management,
as well as disputes between the company and labor unions or employee rights
organizations.

4.1.1.8 Legal Responsibilities

The human resources department is responsible for interpreting and enforcing
employment and labor laws such as equal employment opportunity, fair labor standards,
benefits and wages, and work hour requirements. The department also investigates
harassment and discrimination complaints and ensures company officials remain
compliant with United States Department of Labor regulations.

4.1.1.9 Bank Security

Human resources departments must design and monitor work processes to reduce
opportunities for internal theft and collusion. HR policies separate cash receiving,
storage, processing and disbursement, and record all activities via video surveillance.
In the event that an employee attempts to steal from a bank, the HR department must
handle the legal paperwork and administrative processes required by court
proceedings.

25
4.1.2 Pay Decision
As with other industries, HR professionals in banks have a hand in making decisions
for pay raises and promotions. Bank workforces are unique in that they often have two
methods of paying employees: salaries for back-office and other personnel, and
commissions for sales employees. Promotion decisions for salespeople selling loans
and other financial products differ from decisions to promote administrative staff.
Banks' HR departments must manage both equitably and strategically to develop the
workforce.

4.1.3 Applicant Screening

Certain jobs do not really require a thorough background check, but any job in a bank
definitely does. Human resource departments in banks must go the extra mile to
uncover the criminal and financial history of job applicants, for the safety of their
clients and their organization as a whole. Banks are highly unlikely to hire candidates
with financial fraud on their records, for example, due to the sheer weight of
temptation a position in a bank would place on someone with that kind of history.

4.1.4 Executive Requirement

The banking industry is highly competitive, and banks constantly navigate a legal
minefield that can devastate companies that step out of line. Finding the right
executives is crucial in any industry, but especially one in which competition is so
fierce and legal compliance so important. Human resources professionals in banks
must go the extra mile to recruit the best executive talent in the banking field, allowing
their organizations to thrive and grow into the future. Human resources departments in
corporations must gain approval of the board of directors before bringing someone in
to fill an executive spot, as well.

4.1.5 Payroll and Benefits

The dispensation of payroll comes under the responsibilities of the human resource office
.while payroll often exists as a separate division in large companies, in small businesses;
it is generally handled by a small human resources staff. Health care benefits are also
handled by the human resources department.

26
4.1.6 Employee Performance Improvement Plans
The human resource department is often instrumental in setting up performance
improvement plans commonly called PIPs. In general, these are written proposals
designed to help struggling employees improve their work to raise it to a certain
expectation level of the company. The employee performance improvement may include
a description of the behavior or performance that needs attention, objectives, to be met
within a certain time period, a plan for accomplishing the improvement along with
support resources and detailed consequences if the improvement does not occur.

4.1.7 Photocopying Important Document

Intern used to photocopy important documents like citizenship, certificate, birth
certificate, identity card, license etc. or customers. Intern also used to photocopy
electricity bill, water bill, telephone bill etc. for KYE updating purpose.

4.1.8 Record Keeping

Intern was assigned the responsibility or record keeping of various things such as account
opening form, KYE updating forms, account closing forms etc. similarly, intern as also
assigned the task of filing and indexing those documents.

4.1.9 Personal Filing

Intern also filled different types of filing as requested by the staff in human resource
management. It includes medical report, police report, copy of citizenship, copy of
academic certificate, c.v, release letter, copy of pan, experience letter, recommendation
letter etc. Intern also helps sometimes staff.

CHAPTER V

LESSON LEARNT AND CONCLUSION

5.1 Lesson learnt
The duration of internship lasted for around two months and during the internship course
of the internship the intern learns various lessons. The internship was a great opportunity

27
for the intern to face the real life work scenario after bachelor .some of the lesson learnt
as a intern in Kumari Bank Ltd.could be summarize as follow

1. Social exposure with various types of customers from different background since
KBL deals with its different clients in the process of rendering its services.
2. Learn to face and handle problems effectively and efficiently.
3. Chance to get familiar with organizational system installed by KBL.
4. Keeping the account of each and every transaction in file as per the supportive
evidence. So filing is the most important job in the bank.
5. Along with customer satisfaction, employee satisfaction also plays a great role in the
success of the bank
6. There was the opportunity to understand different types of stamps and their respective
function that was in use.
7. Learn the workflow, chain of command and hierarchy of organization.

Many lesson along with these, small and big, were learnt which broadened the knowledge
and brought work maturity in myself. So, these eight weeks of the internship Internee got
the most exposure to what it is like to work in real life the classroom learning. The
internship program gave the experience, which will be helpful to build a platform and
prepare for the future.

5.2 SWOT Analysis

SWOT is the acronym for strength, weakness, opportunities and threats that are the
strategic factors for a organization. SWOT analysis summarizes the internal and external
strategic factors of an organization. SWOT analysis helps to enjoy sustainable
competitive advantage over the competitors. SWOT analysis is perfect for business
planning, strategic planning, competitor evaluation, marketing, business and product
development and research reports. It also helps determine positive and negative aspects
of the organization.

28
5.2.1 Strength of KBL

It is the positive internal characteristics that the organization can exploit to achieve its
goals. Some of the strengths of KBL are

1. Skilled human resource to serve the organization.

2. Coordination among employees
3. Strong brand image of the bank

5.2.2 Weakness of KBL

Weakness is the internal characteristics that might inhibit or restrict the organization’s
performance. Some of the weaknesses of Kumari Bank Limited are mention below

1. Lack of strong strategy to meet the goal.

2. Power distance.

5.2.3 Opportunities of KBL

An opportunity is the condition in the general environment that if exploited effectively,

helps a company achieve strategic competitiveness. The opportunities of Kumari Bank
Limited are

1. Easy accessible to bank (Location advantage)

2. Trust by many people.

5.2.4 Threat of KBL

A threat is a condition in the general environment that may hinder a organization efforts
to achieve strategic competitiveness. The threats of KBL are as follows

1. Entry of new bank

2. Unfavorable law and policies.

5.3 Conclusion

From the above analysis it is seemed that KBL is one of most hard working commercial
bank that is dedicated in serving their valued customers with excellence. During this

29
internship period, Intern had learnt a lot about the banking activities and banking
operation in the Nepalese market, about KBL in particular. This report has made intern
know about the various kinds of the customer services that KBL has been offering. The
internship has been fruitful in many ways to intern.

Internship has broadened intern’s knowledge, vision, ability, management skill and
confidence to perform in real working environment. It was a great chance to gain
practical knowledge of banking sector. The practical cases are rather different from that
we study in theory. Further intern has also become versed to get socialize with the
diversified people, to deal with the senior staffs, and to deal with the intern colleague so
as to make the working environment cheerful, pleasant and friendlier. Beside this, the
supervisors were extremely helpful in guiding on our internship program.

It was the great experience working as an intern in KBL. The operational environment
was benevolent. There was good communication, healthy competition and healthy
relationship in between the personnel of KBL. Each and every staff of KBL were totally
professional but still there was a family environment making overall internal working
environment delightful to work with. Working at KBL as an intern was a great
opportunity to develop conceptual and analytical knowledge about banking sector in
Nepal. Thus, the knowledge and experience endowed with this study will surely be
constructive towards the pavement of intern’s career and professional life. During my
internship what I also analyzed is that the bank is good in providing a good customer
service. Customers always seek quality service at their convenience. Customers have
preferred Kumari Bank mainly due to its brand image, branch facilities and service
quality. They expect this bank to rise even more to become the leading bank in service
quality. Improvements have to be made from time to time in order to sustain the
satisfaction level of customers and push the bank to a continuous growing path.

30
References

Bank. (2007, April 15). Rural bank. Retrieved september 21, 2019, from
http://www.ruralbank.com

Bank, N. R. (2008, January 13). Development Bank. Retrieved september 24, 2019, from
http://www.nepalrastrabank.com

Edusanjal. (2000, september 14). Tribhuvan University. Retrieved september 23, 2019, from
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Google. (2014). Commercial Bank. In Commercial bank. Kathmandu: Kriti.

Kent, K. (2019). Financial instittion and market. Canada: Blackwell publication.

Nepal, C. (2015, August 10). College Nepal . Retrieved september 24, 2019, from
http://www.collegenepal.com

Tribhuvan University. (2007). Tribhuvan University. Retrieved July 9, 2019, from Educate Nepal
Web site: http://www.tu.com

Wikipedia. (2003). About Bank. Worldbank.

Wikipedia. (2010, February 9). Encyclopedia. Retrieved July 21, 2019, from Wikipedia:
http://www.wikipedia.com

Wikipedia. (2019). Kumari bank Ltd . Retrieved 2018, from http://www.kumaribank.com

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