ACTIVITIES OF

CUSTOMER SERVICE DEPARTMENT

NEPAL BANK LIMITED
(Patan Industrial Estate, Lalitpur)

An Internship Report

Submitted by
Asma Mahato
BBA 7th Semester
P.U Registration no.065-2-2-01858-2016
Symbol no. 270981
Kantipur Valley College

Submitted to
Faculty of Management
Purbanchal University
Biratnagar, Nepal

In Partial Fulfilment of the Requirements for the Degree of

Bachelor of Business Administration (BBA)

Kumaripati, Lalitpur
January, 2023
 i

DECLARATION

I, hereby declare that the work done in this internship report entitled “An
Internship Report on Customer Service Department of Nepal Bank Limited ,” Patan
Industrial Estate Lalitpur, submitted to Faculty of Management, Purbanchal
University is a result of my own research. It has not been either previously submitted
to any other universities for any other examination or published for any commercial
purpose. I shall be ready to bear any of the charges or penalty if found any guilt or
fraud in this report.

Asma Mahato
BBA 7th Semester
PU. Registration no:065-2-2-01858-2016
Symbol no:270981
Kantipur Valley College
Kumaripati, Lalitpur
 ii

ACKNOWLEGEMENTS

I would like to express my special gratitude to our course instructor and the
supervisor Mr. Chet Nath Pant for guiding me to prepare this report assisting for
correction of any making the report standard and up to benchmark.
Here I acknowledgement Nepal Bank Limited of Lalitpur, for providing ma
such an opportunity to accomplish my internship program as directed by universities.
I found a great platform for those students who seek to build up their career in
banking sector and to practice over it being familiar with banking environment.
I would like to extend my gratitude to our branch manager Ms. Kapila shrestha
for acceptance of our internship proposal. Special thanks to Ms. Rupa Maharjan ,
Pabitra and other staff of each department for special guidance to work in CSD.

I wish to express my sincere appreciation and profound gratitude to all who in

one way or another assisted me in the successful pursuit of this study.

Lastly, I wish to thank my family for their regular inspiration and invaluable
help and co-operation in writing this report.

Asma Mahato
BBA 7th Semester
Kantipur Valley College
Kumaripati , Lalitpur
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EXECUTIVE SUMMARY

This report has been for the partial fulfilment of the degree of Bachelor of
Business Administration (BBA), Purbanchal University. It is conducted on the basis
of the internship that I had gone through in Nepal Bank Limited, Patan Industry Estate
Lalitpur. Basically, I was assigned in the CSD of the bank.

This report is mainly divided into three sections: the first section includes the
introduction of Nepal Bank Limited, second describes data collection and presentation
and last section covers the summery, conclusion and recommendations. The first
section includes background of the bank, overviews of the bank, the beginning/history
of the bank, introduction of Nepal Bank Limited. The second section includes critical
analysis of theoretical concept relating to the particular organization and knowledge
gained from assigned responsibilities. The last section includes summery, finding,
conclusion and my personal feedback on analysis of data.
 iv

TABLE OF CONTENTS

DECLARATION............................................................................................................i
ACKNOWLEGEMENTS..............................................................................................ii
EXECUTIVE SUMMARY..........................................................................................iii
TABLE OF CONTENTS..............................................................................................iv
LIST OF TABLES........................................................................................................vi
LIST OF FIGURES.....................................................................................................vii
ABBREVIATIONS....................................................................................................viii
CHAPTER ONE............................................................................................................1
INTRODUCTION..........................................................................................................1
Overview of the Organization....................................................................................1
Banking History..........................................................................................................2
Types of Bank.............................................................................................................3
Introduction of Nepal Bank Limited..........................................................................4
Introduction.........................................................................................................................4
Vision..................................................................................................................................4
Mission................................................................................................................................4
Objectives...........................................................................................................................4
History of NBL...........................................................................................................5
Nature and Number of Employees.............................................................................6
Products and Services of NBL...................................................................................7
Organizational Structure of NBL (Overall Concerned Department).........................9
Objectives of the Study..............................................................................................9
Methodology.............................................................................................................10
Observation...............................................................................................................10
Function of the Customer Service Department........................................................11
Details of Assigned Work Responsibilities..............................................................11
Problem Encountered During Fulfilling the Work Responsibilities........................16
CHAPTER TWO.........................................................................................................17
ANALYSIS AND REVIEW........................................................................................17
Analysis of the Activities Performed.......................................................................17
Analysis of the Data Collection on any Specific Issues of Services Provided in the
CSD..........................................................................................................................17
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Critical Analysis of the Theoretical Concepts Relating to Practical Experiences in

the Department.........................................................................................................21
Knowledge Gained from the Work Assigned..........................................................22
SWOT Analysis of NBL..........................................................................................23
CHAPTER THREE......................................................................................................25
CONCLUSIONS AND RECOMMENDATIONS......................................................25
Contribution of Internship in Knowledge Gain........................................................25
General Comments and Suggestions for the Company............................................25
REFERENCES.........................................................................................................27
JOURNAL................................................................................................................28
ANNEX I.....................................................................................................................30
QUESTIONNAIRE......................................................................................................30
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LIST OF TABLES

Table 2 1: NBL Network Overview...............................................................................6

Table 2 2: NBL Networks..............................................................................................7
Table 2 3: List of BOD Member....................................................................................7
Table 2 4: Analysis of the service of NBL...................................................................18
Table 2 5: Analysis of drawback of NBL....................................................................19
Table 2 6: Switching to another banks.........................................................................20
Table 2 7: Satisfied with ATMs & Mobile banking....................................................21
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LIST OF FIGURES

Figure 1: Service of NBL.............................................................................................18

Figure 2: Drawback of NBL........................................................................................19
Figure 3: Switching to another banks...........................................................................20
Figure 4: Satisfied with ATMs & Mobile Banking.....................................................21
 viii

ABBREVIATIONS

ABBS : Any Branch Business Service

ATM : Automated Teller Machine

BM : Branch Manager

BOD : Board of Directors

CEO : Chief Executive Officer

CSD : Customer Service Department

ECC : Electronic Cheque Clearing

IT : Information Technology

KYC : Know Your Customer

MICR : Magnetic Ink Character Recognition

NRB : Nepal Rastra Bank

NPR : Nepali Rupee

PIN : Personal Identification Number

 ix

PU : Purbanchal University

NBL : Nepal Bank Limited

SWIFT: Society for Worldwide Interbank Financial Telecommunication

SWOT : Strength Weakness Opportunity Threats

 1

CHAPTER ONE

INTRODUCTION

Overview of the Organization

Bank is a financial institution that deals with the monetary transaction. It is a financial
intermediary between depositors and entrepreneurs. The main function of the bank is accepting
deposits and advancing loans. The intermediation takes place when they accept deposits from the
general public, corporate bodies and private organization and invest those deposits for profitable
purpose in the form of loan and advances. An organization usually a corporation chartered by a
state or federal government, which does most or all of the following: receives demand deposits
and time deposits, honors instruments drawn on them, and pays interest on them; discount notes,
makes loans and invests in securities; collects checks, drafts, and notes; certified depositor’s
checks; and issues drafts and cashier’s checks is known as bank. The word “bank” is derived
from Italian word “banko”, which mean accumulation of money or stock. It is an institution,
which deals in money, receiving its deposit from customer; honoring customer drawing against
such deposits on demand, collecting cheque for customers and lending or investing surplus
deposits until they are required for payment. Bank collects scattered money from public in the
form of deposits by providing them certain percent of interest and distributes the accumulated
fund to others, who are in need of money by charging certain percent of interest, which is usually
higher than the interest that is given to the depositor.

At present context, bank is not only confined to accepting deposits and disbursing loans.
In addition to this, bank may be engaged in different types of functions such as remittance,
exchange currency, joint venture, underwriting, bank guarantee, discounting bills, etc. Without
bank, it would be quite impossible for the industrialists and entrepreneurs to collect saving
directly from general public for investment. So bank is very important from various aspects.

“Bank is a financial institution, which provides financial services that may be in the form of
accepting deposits, advancing loan, providing necessary technical advices, dealing over foreign
currencies, remitting funds, etc.” Nepal Rastra Bank Act 2002
 2

R P Kent Defined, ”bank is financial institution which acts as an intermediary and deals in loans
and advances.”

Thus, bank is a financial service institution especially concentrating on credit, savings and
payment services and performing the widest range of financial function of any business firm in
the economy. It major function is to formulate the capital by collecting the small diversified
saving all over the nations.

Banking History
The banking industry that we have today is the outcome of a series of stepwise
development that have occurred in the process of its evolution. The banking sector went through
the process of evolution due to the unceasing demand for the improvements in service delivery
and the increasing need and expectations of customers as well the political reforms that have
taken place over the decades.
The early bankers are the Lombard who was originally from the plains of Lombardy of
Northern Italy. They introduced banking practice in England. These Lombard were eventually
bankrupted because they lent money to kings who did not repay them. After the Lombard, the
goldsmiths practiced banking as a sideline to their normal activities in the bullion and jewelers
fields. The early goldsmiths used to have large vaults, which were soundly built and heavily
guarded. The person who deposited his surplus funds with the goldsmith became a ‘depositor’
and naturally paid for the privilege of having his money defended this way. These payment were
called ‘Bank Charge’. The depositors who needed funds to pay wages or debts, could call at the
bank and collect such sums as required.

The very first banks were probably the religious temples of the ancient world where
gold was stored. Their owners justly felt that temples were the safest places to store their gold as
they were constantly attended, well-built and were sacred, thus dissuading the would-be thieves.
There are existing records of loans from the 18th century BC in Babylon that were made by
temple priests to merchants. Ancient Greece holds further evidence of banking. Greek temples as
well as private and civic entities conducted financial transactions such as loans, deposits,
currency exchange, and validation of coinage. Interestingly, there is evidence too of credit,
whereby in return for a payment from a client, a money lender in one Greek port would write a
 3

credit note for the client who could “cash” the note in another city, saving the client the danger
of carrying coinage with him on his journey.

The history of banking in Nepal may be described as a component of gradual and

ordinary evolution in the financial and economic sphere in the Nepalese life. Even now the
financial system is still in the evolutionary phase. The established of “Kauai

Toshi Khana” as a banking agency during the time of King Prithivi Narayan Shah and “Tejarath
Adda” can be regarded as the initial steps in the direction of start of bankung development in
Nepal. In the context of Nepal, the development of banks can be summarized in three phases:

The establishment of “Tejarath Adda” during the Tenure of Prime Minister Ranoddip Singh in
1933 B.S. (1876A.D) was the first step towards the institutional development of banking in
Nepal. Its objective was to provide credit or loans to the general public but it failed to accept
deposits from them.

The modern banking in Nepal was started with the establishment of Nepal Bank Ltd. In 1994
B.S., having felt the need of development of banking sector and to help the government
formulate monetary policies, Nepal Rastra Bank was set up in 2013 B.S. As the central bank of
Nepal. In B.S. 2022, Government set up Nepal Bank Ltd. as a fully government owned
commercial bank. The Agricultural Development Bank was established B.S. 2024. This bank
was established with the objective of increasing the life standard of the people who are involved
in agriculture.

Types of Bank
Banks can be categorized into various types regarding their formation, capital structure
and sectors of services served. They can be classified as:
 Central Bank
 Commercial Bank
 Agriculture Bank
 Development Bank
 Cooperative Bank
 Rural Bank
 Merchant Bank
 4

Introduction of Nepal Bank Limited

Introduction
Nepal Bank Limited the first bank of Nepal was established in novmber 15, 1937
A.D(kartik, 30 1994). It was formed under the principle of joint venture between the general
public and government. Before the establishment of Nepal Bank Limited, none other financial
institution had come into operation. All monetary transaction were carried out by private dealers
and trending centre due to which Nepalese economy suffered various economic and banking
problems which were settled after the establishment of Nepal Bank Limited.
NBL’s authorized capital was Nrs. 10 million and issued capital Nrs. 2.5 million of which paid-
up capital was Nrs.842 thousand with 10 shareholders. Currently, the bank has been providing
banking services through its branch in the different geographical location of the country.

Vision
Pioneer Bank with customer service excellence.

Mission
 Building trusted and united customer relationship
 Ensuring quality customer service
 Service access to all
 Technology driven banking service
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.
 Focus on increasing the sustainable profit.
 5

History of NBL
His Majesty King Tribhuvan inaugurated Nepal Bank Limited on Kartik 30, 1994 B.S
This marked 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 Juddha Shumsher 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 forthcoming. In that era, very few understood or 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.

Nepal Bank Limited the first bank of Nepal was established in novmber 15, 1937 A.D(kartik, 30
1994). It was formed under the principle of joint venture between the general public and
government. Before the establishment of Nepal Bank Limited, none other financial institution
had come into operation. All monetary transaction were carried out by private dealers and
 6

trending centre due to which Nepalese economy suffered various economic and banking
problems which were settled after the establishment of Nepal Bank Limited.
NBL’s authorized capital was Nrs. 10 million and issued capital Nrs. 2.5 million of which paid-
up capital was Nrs.842 thousand with 10 shareholders. Currently, the bank has been providing
banking services through its branch in the different geographical location of the country.
Table 1: NBL Network Overview

S.N Ownership Percent

1 Government of Nepal 51
2 General Public 49
Total 100

No of Computerized branches: 203(19th aguest, 2022)

NBL Networks

The network location of NBL are given in the table below:

Table 2: NBL Networks

Particular Numbers

NBL Branch 184

NBL ATM Location 103

NBL Branch Banking Services 159

Nature and Number of Employees

In Nepal Bank Limited, PIE Branch, Lalitpur, I as an internee was placed in Customer
Service Department (CSD). Under the supervision of Mrs. Rupa Maharjan (A.S). I worked there
as an internee for period of two months in Customer Service Department (CSD).
 7

NBL, P.I.E. Branch located in Lalitpur has engaged in rendering various services like
accepting deposits, lending loans, providing statement, balance inquiry, facility of safe deposit
locker, variety of account, etc. It is not only engaged in providing these kind of facilities but also
involving in offering the suggestions regarding loan proposals, account opening queries, etc.

Table 3: List of BOD Member

S.N Position

1 Chair Person

2 Member

3 Member

4 Member

5 Member

6 Member

7 Company Secretary

Products and Services of NBL

NBL like all other commercial banks generate its revenue mainly from its credit certain ability
and finance its credit certain from deposits. Thus, mainly the products can be categorized into
two major handing deposits and loan. However there are other various products and service of
NBL that has enable it to retain its customer for more than seventy years .Remmitance, utility
payment service, SMS banking internet banking, ABBS all from an array of consumer oriented
service that are aiding for NBL corporate image and untrammeled consumer loyalty.
Deposit
Collecting the deposit from its customer is the major activities of the banks. NBL collects the
deposit under different types of account.
 Saving deposit
 Fixed deposit
 Current deposit
 8

Saving deposit
Saving account at NBL only ensure attractive returns to your idle money but also makes your
personal banking convenient and efficient. Some of the major saving account products of NBL
are as follows:
 Normal saving account
 Nbl diamond saving account
 Yuba bachat khata
 Santati saving account
 Social security saving account
 Salary saving account
Current account
A current account can be opened with a minimum amount decided by the specific branch.deposit
your home branch. Once your account is opened you will receive your cheque book containing
10 personalized cheque. To replace your cheque book once you out of cheque just present the
replacement from at the back of your current cheque book at your home brance we will arrange a
new one for you.
Fixed deposit
Fixed deposit can be opened with a minimum balance of Nrs .25000 payable upon maturity.
Penal interest is levied on withdrawal of FD prior to maturity. FD interest is payble quarterly.
Tax is deducted at sources from the interest on saving deposit as per the income tax Act, 2058.
Nomination facility is available. Strict confidentiality is assured.

Loan
NBL offers a wide rang of tailor made funded and non-funded credit facilities to suit funding
requirements namely:

 Corporate loan
 Auto loan
 Margin lending
 Home loan
 9

Remittance
NBL Remit - an online/internet-based Remittance Service for the purpose of facilitating to
transfer the earnings of Nepalese and Nepalese Expatriates in foreign countries with the help of
available NBL agents. Along with inward remittance from foreign countries, NBL-remit is
powered by domestic money transfer facility through all of the bank's branches throughout the
country with very minimal charge.

NBL Remit service is based on online data transfer system and it is instant enough, efficient and
very much secure. Remittance facility is available both for instant cash payment and credit to
the beneficiary personal account. Now the account transfer facility can be availed within NBL
branches.

Organizational Structure of NBL (Overall Concerned Department)

Organizational Structure is the formal arrangement of jobs within an organization.
Development an organization structure managers go through the process called organizational
design, that formalization etc. Organization Structure defines how job tasks are formally divided,
grouped and coordinated. The overall departments of the bank are under the control of Board of
Director. The head office of the bank is located at Dharma Path, Kathmandu. The board of
directors’ is responsible for policy making and guidelines to the management. The government
nominates all board member including the chairman. The executive power is vested in the chief
executive officer (CEO).

The organization structure is the backbone of the any company or organization. So, it is
very important part of the organization. This structure also depicts the channel through which the
flow of information takes place within in 24 organization and hence helps to know about the
communication channel.

Objectives of the Study

The general objectives of my study are to participate in the real life organizational
environment in order to apply the knowledge and skills obtained at classroom. The objective of
this study are:
 To develop interpersonal skill and communication skill.
 10

 To analyze the perspectives of customers towards the products and services.

 To identify the working culture of the organization.
 To provide recommendations to the bank.

Methodology
Methodology deals with the sources of data, from where the data has been collected. The
information required for the preparation of report has been collected from observation of the
activities that are performed in the bank and the personal interview and consultation with the
staffs involved in different departments of the bank. The secondary data are used in the report are
obtained from websites, brochures, annual report, and books.

Sources of Data
I used in the report has been collected through these following two sources:
Primary Data
It is collected through directly contact with the employee of the respective departments and
informal discussion with staffs of the bank.
 Observation of working environment.
 Direct interaction with walk in customer.
 Formal as well as informal discussion with the staff at bank.
 Involvement in the activities in the bank staying within boundaries.

Secondary Data
Secondary data is information that is already available somewhere, whether it be in journals,
on the internet, in a company’s records or on a large scale, in corporate or governmental
archives. These data were collected through:
 Annual General Report of NBL.
 Information through different websites of NBL.
 Journals as well as publications.
 Internet

Observation
Observation is the effective way of understanding the operation and processes that are
carried out in the organization. It is the process of recognizing people, object and occurrences
rather than asking for information. It is the technique that involves observing behavior with the
 11

purpose of describing it. Observation is the mainly divided into four parts, which are explained
below:
Function of the Customer Service Department
Customer service department is all related with providing service, information and hospitality
to their customer which is crucial for the bank to maintain its image and integral relationship
with their customer. From the front desk the customer service is given with greetings. Some of
its functions are as out below:

 Different activities such as opening new account of customer, closing existing account,
issuing cheque books, balance inquiry and providing statement, issuing debit cards, etc
are performed.
 Hospitality towards their customer is their ideal duty that plays significant role in
maintaining relationship among them.
 To deals with different types of customer from different background, finding out their
problem, troubleshooting them and make them happy and satisfied.

Details of Assigned Work Responsibilities

For an intern to understand the banking operations, CSD can be the starting place. Thus,
Internship was started from CSD for analyzing and learning the core banking functions.

The following activities of CSD were observed by the intern:

Account Opening & Account Closing

Account opening process at NBL:

a) Firstly, Account Opening form is received including KYC form. The opening form
should contain account name, account holder number, nominee name and signature. For
account opening customer authenticated record like passport, citizenship, nominee
citizenship, utility bill or identity card, three passport sized photos are essential. The
signature specimen card should be duly completed and sign by the customer.
b) Account number is given as per registered sequence following computer system rule to
open the account in computer. The account number is of 20 digits; first three indicate
branch code and then three digits denote the product code, e.g. 011 for women special
saving, 016 for yuva bachat khata, 010 for normal saving and 016 for salary account.
 12

c) Then the customer is asked to deposit the amount in the assigned account number and
total to show the deposit slip duly receipted by teller. The CSD official keeps Bank copy
of the slip with them and customer slip is given to customer.
d) Then the customer is requested to collect the cheque on same day.
e) Then, documents are checked as per details given in Account Opening Rules according to
the nature of the account.
f) Then, Account Opening form is submitted to assistant manager for the security.
g) The document are returned to CSD after the authorization.
h) If there is any discrepancy of document found by the manager then the customer is
informed about that and is asked to clear the discrepancy.
i) Signature is scanned for the computer access. All other information related to the
customer is written in the account opening section of Pumori for the future reference.
j) The account opening form and KYC along with other necessary documents are kept in a
serial order as per account number for future reference.

Saving Deposit Accounts

Saving Account are suitable for including the habit of saving among customers. It offers
liquidity for the money and also earns interest. Saving account can be opened in the name of
individuals (singly or jointly), Minors (children aged below 16 years) and other non-profit
organizations.

Normal Saving Account

An individual having age of more than 16 years Nepalese citizen can fill the simple
application form in order to open an account under normal saving. In case of children who are
under the age 16 years (minor) parents need to stay as guardians of their accounts. This account
can be opened only in Nepali currency. Three passport size photos and a photocopy of Nepali
citizenship are compulsory for opening account under this account heading. The code of this a/c
is (10).
Benefits under normal saving account are:

 Minimum balance of Rs.500 account can be opened

 Annual interest of rate is 2.50%
 Mobile banking of Rs.250
 13

 ATM can take

 Internet banking
 Money transfer

Women Special Saving

 This account can only open by female.
 The minimum balance for this account type is Rs.500.
 The rate of interest provided is 3.50%.

Requirements:
 Citizenship cards photocopy.
 Three passport size photo.
 Extra id.
Yuva Bachat Khata
 This account can only open by students.
 The minimum balance for this account type is 0.
 The rate of interest provided is 3.50%.
Requirements:
 Citizenship cards photocopy.
 Three passport size photo.
 Student card.
Fixed Deposit Account
Fixed Deposits balances are accepted for minimum 3 months and maximum for any period
agreed upon. Interest will be paid semi-annually, or as agreed at the time of deposit. The interest
of the deposit can be created to Current account or saving account, as the case may be. Fixed
Deposits accounts can be opened with minimum amount of Rs.25, 000.
Account Closing Process at NBL

Closing an account is just opposite of opening an account. Opening of the account can be
taken as the contract between bank and the customers whereas closing of the account is the
termination of contract. NBL account can be closed in following ways:

a) At the request of the customer: Customer has the full right to close the account. Just she/he
has to fill up the account closing form with the necessary details as account number,
 14

signature, name, reason for closing the account. He/she has to return the remaining cheque
leaves and debit card to the bank. It is checked from the database at Pumori. Before closing
any account bank staff’s verifies the signature, check all the liabilities of the customer in the
bank as LC, Guarantee, Loan, Locker etc. and administration department signs on account
from so as to confirm the particular customer do not have any liability remaining with the
bank. The charge of the account closing is Rs.200. If she/he is unable to return the remaining
cheque leaves and debit card additional 100 for cheque and 200 for debit card is charged.
b) At the initiative of the bank: Especially in case of fixed deposit account bank closes after the
expiry of the time period. The amount of the fixed deposit is transferred to other normal
account of the customer as per mentioned in the form. On the other instances the bank has no
right to close the bank account without the consent of the customer.
c) Blocking of the account: Banks block the account of the customer in the following cases:
 In case of valid notice of lunacy or the death of the account holder.
 In case of the receipt of the “garnishee order” from the court regarding the account.
 In case of blacklisting of client.

KYC Update Process at NBL

Know your customer (KYC) form is the mandatory form every customer of the bank
needs to fill as directed by NRB. NBL has almost old account which need to be upgrade.
NBL made it mandatory for the customer to fill KYC form while opening new account and
the old customer cannot enjoy the banking service unless the account was updated. The KYC
updated process in NBL was:
 The customer are requested to fill the KYC form with signature specimen card which
includes details like account number, account name, permanent address, Temporary address,
name of the organization where the customer work, phone number and location map of the
customer with signature of customer at the end. The customer need to submit the documents
like Passport, citizenship, ID card, and two recent passport size photo.
 The customer need to first verify their documents with the assistant manager or bank
manager. Then, they need to submit the KYC form verified by manager with necessary
document to the CSD.
 15

 After checking the document the CSD official updates the signature specimen and recent
photo with necessary details in the system.
 Then, the CSD official sign the KYC from by writing updated in the top of the form and file
it in the separated file for future reference.

Recording, Filing and Documentation

Filing and documentation are very important task that the CSD staffs do. The entire
paper work has to be done simultaneously to the computer work. There are different files for
filing different documents. The account opening form, KYC and customer complain form
etc. are filed in separate files. Void cheques is also filed. The cheque issuance and ATM card
issuance is recorded in different book with signature of account holder. The authorized letter
received is also filed.
Cheque Printing
Printing the cheque and issue it as well as keeping the records of the cheque issued in the
register maintained for the purpose after getting the signature of the customers. The customer
was asked to fill up the Cheque Requisition Form (in case of cheque to be issued for the very
first time) or the Cheque Slip in the cheque book (for the new cheque book to the customers to
whom the cheque were issued previously).
Balance Enquiry
Many customer frequently ask for the balance in their account and the amount in the
cheque they are holding. So, intern had to check the balance by entering the account number
in the respective search heading of the software. Intern can tell the amount to the account
holder. Intern cannot tell the amount of the account to the person holding the cheque but can
tell if there is sufficient amount in the account or not to withdraw the cheque.
Handling Telephone calls
 Telephone calls were handled to:
 Entertain the queries of the customers
 Give information to the customers about the maturity of the FD account, the arrival of VISA
cards
 Transfer the incoming calls to the respective department.
Distribution
 16

Another activity performed in CSD is distribution of various product and services to the
clients. Various document that a client can get from this department on request are:
 Cheque books
 ATM Card
 Different forms
 Debit card

Scanning and Photocopy

The activity of making the photocopy of the documents such as Citizenship Certificate of the
customers and the other documents as asked by the staffs of the bank was performed during the
internship period. The account opening forms of the customers (signature of the account holders
and their photo) and other documents were scanned during the period.
Problem Encountered During Fulfilling the Work Responsibilities
During my internship period, I identified some of the problems in CSD. There is a frequent
network problem in the branch because of which customer service is delayed. CSD is the busiest
department in bank among other department as it is gateway to the organization. So normally
facing crowd of client is usual and habitual. The customer have to wait for long period of time to
get service because of the queue of the customer and lack of sufficient staff in the customer
service department and also problem in mobile banking service. The customer complain
concerning card even the status of the card is alright in the system the card does not found.
Customers have to wait for more than one month for getting ATM card from the date of request.
 17

CHAPTER TWO

ANALYSIS AND REVIEW

Analysis of the Activities Performed

After submitting collage recommendation letter at NBL, P.I.E Branch, I got an
opportunity of two months of internship program. I worked at CSD under the Guidance of CSD
supervisor. My report is based on CSD department.

Analysis of the Data Collection on any Specific Issues of Services Provided in the CSD
The CSD means the front desk of any organization that enables face to face interaction with
the customers who visits the organization. During my data collection procedure, while customers
were about services offered by the bank most of them were even have complaints regarding lack
of staffs. Similarly, many of them were annoyed to fill KYC form.

Table 2: Analysis of the service of NBL

NBL Service In percent

Satisfied 35%

Neutral 40%

Dissatisfied 25%
 18

Figure 1: Service of NBL

25%
35%
Satisfied
Neutral
Dissatisfied

40%

As can be seen in the above table and figure, the service of the bank was 25% of the customer
were satisfied with the service, whereas the 35% of the customer were neutral and 40% of the
customer were dissatisfied with the bank.
Table 3: Analysis of drawback of NBL

Drawback Percent

High interest rate 30%

Lengthy procedure 25%

Client service 45%

 19

Figure 2: Drawback of NBL

30%
High interest rate
45% Lengthy Procedure
Client Service

25%

As can be seen in the above table and figure, the high interest rate of the bank was
30% where the lengthy procedure was 25%. Similarly, the client service to 45% of the customers
was a drawback to the bank.

Table 4: Switching to another banks

Customer Percent

Yes 12%

No 71%

Not decided 17%

 20

Figure 3: Switching to another bank

17% 12%

Yes
No
Not dicided

71%

As can be seen in the above table and figure, the 12%of the customer said yes where
71%of the customer said no and 17%of the customer said not decided about switching to another
banks.

Table 5: Satisfied with ATMs & Mobile banking

Customer Percent

Satisfied 50%

Neutral 30%

Dissatisfied 20%
 21

Figure 4: Satisfied with ATMs & Mobile Banking

2%

37%
Satisfied
Netural
Dissatisfied

61%

As can been seen in the above table and figure, the 61% of the customer are satisfied
where as 37% of the were natural and 2% of the customer were dissatisfied with the service of
ATMs and mobile banking.

Critical Analysis of the Theoretical Concepts Relating to Practical Experiences in the

Department
Knowledge gained from the academic courses seemed to be totally different in
practice. While working as an intern at NBL knowledge gained from the academic courses
seemed to be totally different in practice. Although there is a huge gap between theory and
practice, the concept of the theory is essential in the workplace.

During the data collection interest rates in comparison to other bank and so more
customers are attracted toward this bank to maintain their account to do transactions. I also found
that some customers are also dissatisfied with NBL due to the late service when mass customer
has arrived.
 22

Behavioral Management Theory

Behavioral management theory is a management concept that study how productivity in an
organization can be improve by concentrating on the things that motivate the workflow. The
theory is also referred to as the human relation movement because it seeks to understand human
behavior at work.

Communication theory
Communication is the exchanging of information by speaking, writing or using some other
medium. It gives an explain of the basic process individuals go through in other to gain
information and knowledge about other people.

According to Stephen (2009),”Understanding Communication Theory is an invaluable

resources for undergraduate instruction. An organized, rigorous and accessible communication
text, it is and excellent blend of conceptual and pragmatic discussion. It will enhance the learning
space for both student and instructor.”

Organizational Behavior Theory

Organizational behavior is a field of study that investigates the impact that individuals, groups
and structure have one behavior within organizations for the purpose of applying such
knowledge toward improving and organization’s effectiveness.
According to Shane &Von ” organizational Behavior is the study of what people think, feel
and do in and around organizations. It is recognized and adopted by the new generation.”

Knowledge Gained from the Work Assigned

Internship was conducted in NBL, PIE branch, Lalitpur. During the period in NBL, I got an
opportunity to learn a lot about the banking sector and its various aspects. Prior to this
experiences the knowledge of banking was limited to books only. But through internship I got a
practical acquaintance of the bank and the corporate culture, particularly NBL. At NBL, the
intern was cooperatively guided by all the staffs that helped in acquiring the in-depth banking
knowledge.

During internship period, I had learnt a lot of aspects other than the banking such as to
socialize with the people, to deal with the senior staff, and to deal with intern colleagues so as to
 23

make the working environment good and friendlier. I also learnt that the behavioral issues are
most important inside the organization. I found that the customers are valuable assets of the bank
and they feel satisfied when they are behaved properly. Their queries are needed to be answered
in a friendly and proper way so as to please and retain them in the organization.

Some of the Nepalese citizens are still unable to fill up the account opening form and they
are even unable to fill up the deposit voucher. Due to this reason customers hesitate to enter the
bank. So, in the context of Nepalese banking sector customer’s banking habit, knowledge level
and literacy level is poor; so it should be improved. For this CSD can play a role to make them
well known about banking activities to some extent.

Lessons learnt in CSD are as follows:

 Since, Customer Service Department directly interacts with customer, employee’s

positive attitude and attention toward customer is must.
 Behavior of employees with customer determines the bank’s ability to retain existing
customer.
 Filling, updating and verifying different customer documents.
 Learnt how to open or close an account and other several services provided by Customer
Service Department.
 Suggested customers regarding the selection of type of account favorable for them.
 By working at CSD, the intern has learnt how to tackle with customer’s queries and
problems patiently and develop the communication skills.

SWOT Analysis of NBL

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieve that objective. The SWOT analysis classified are as
below:
 24

Internal Analysis
The internal analysis is a comprehensive evaluation of the internal environments potential
strengths and weaknesses. Factors should be evaluated across the organization in areas such as
company image, organizational structure, operating efficiency, access to natural resources,
financial resources, exclusive contracts etc.

External Analysis
An opportunity is the chance to introduce a new product, services or project that can
generate superior returns. Opportunities can arise when changes occur in the external
environment. Government support to the bank for the works. Changes in the external
environment may be related to customers, competitors, market trends, etc.

Strength of NBL
When I asked about the strength of NBL to the BM, she said NBL is one of the pioneer
banks in the country. It has satisfied the customers through the services. It has covered large area
of the country economy. It has large network branch. Though the manager was confident about
the satisfaction of the customer but I didn’t find it true as many customers were complaining and
were dissatisfied.

Weakness of NBL
According to the BM, “Pumori is the only banking software used. Other advanced
software has not been able to be explored. ATMs are inadequate in some area.” Through the
manager I too believe that these sectors are must be improved to strengthen NBL features.

Opportunities of NBL
As per the BM, “NBL has largest reach to its customers with its large network frequently. It
has safe deposit vault.” As per my view, being government bank its big opportunity is high
probability of getting the best skilled human resources. And have to increase remittance service.

Threats of NBL
Some of the threats to NBL experienced by BM are high competition due to large number of
private banks, adaptation of modern technology, quick service oriented customer and so on.
Another I found that the private banks give more interest than the government bank.
 25

CHAPTER THREE

CONCLUSIONS AND RECOMMENDATIONS

Contribution of Internship in Knowledge Gain

An internship report is prepared on the basis internship performed at NBL, P.I.E Branch
with a view to know the practical knowledge of banking sector. An internship period was fruitful
experience and knowledge regarding getting acquainted with the real life scenario of banking
environment. It has developed some of confidence and commitment.

The valuable lessons learned apart from the basis activities of concerned department that
the intern worked are as following:

 Developed the interpersonal, managerial and entrepreneurial skill.

 Learned about importance of time and punctuality.
 Use different equipment such as printer, scanner and cheque printing machine.
 Procedures in filing the files and indexing.
 Dealing with the customer problem
 Learnt how to use Pumori software for performing different transaction in the bank.

General Comments and Suggestions for the Company

By working as an intern at Nepal Bank Limited and observing its working environment and
procedures some areas of improvement has been identified. Therefore, the following measures
are recommended to the bank enhancing its performance:

 Customer satisfaction is the most important thing for an organization but NBL was
neglecting this part. Staffs were not much focused on satisfying customers and many
customers have to return from the bank being unhappy. Some were dissatisfied with the
time taken to render services and some with the behavior and attitude of staffs. Thus,
taking this into consideration NBL should focus more on providing quick and satisfactory
services to the customers.
 26

 It was also seen that the customer had to wait for longer period of time in the cash
counters due to limited counters with which the customers were dissatisfied. Therefore,
NBL should also try to increase number of cash counters that minimize the waiting time
of the customer.
 The ATM machine of NBL should be placed in each branch of NBL to attract more
customers towards the bank.
 NBL can successfully compete with other banks, if it adopts efficient marketing strategy
to attract more customers.
 At certain times staffs in some department are not available and task of the particular
department becomes completely mismanaged. So, proper management of staff and task is
essential in NBL. If some staff is absent another staff must be arranged accordingly.
 NBL should arrange for alternative network in the branch, if the one network fail other
can be used so that customer service would not be affected.
.
 27

REFERENCES

Kent, R.P. (1996).Money and Banking. Holt, Rinehart & Winston

Kothari, C.R. (2004). Research methodology. New Age International publishers.

Nepal Bank Limited (2022/2023). Annual Report. Author.

Shane, MC & Glinow, V. (2003).Organization Behavior. Tata McGraw-Hill

Stephen, W.(2009). Communication Theory. SAGE Publication.

 28

JOURNAL

Day 1
19, December 2019 was my first day as intern in Nepal Bank Limited situated in Patan
Industrial Estate (PIE). I was very nervous about my internship. But at the same time I was
felling happy because my closeted friend and me were going for the same branch for the
internship.

As I arrived in the bank everyone was doing their work. Then me and my friend went to the
BM room then BM of PIE branch helped us to know about bank, how they work there. After that
BM introduce us to the Rupa Maharjan, employee of Nepal Bank Limited. She was going to help
us for our intern. The first day was very busy for us because the bank was full of crowed due to
distribution of pension. My first day was full of stress because we were not prepared about the
work. After we finished our work at 5PM we went back home.

Day 3
At 10AM we went to the bank for our intern. First I do my attendance then I start our work as
customer department. Then Rupa ma’am teach me how to do TAML. There were lots of pending
work, ma’am give me to update KYC in TAML. At the same time I was also felling KYC form,
distributing cheque, collecting demand slipped, providing form for the customer which they
demand. Customer also demand to print their document for KYC form. Rupa ma’am also teach
me to check balance of the customers in Pumori.

Day 6
As my day in Nepal Bank Limited was going smoothly. I did my work, TAML and balance
enquiry. Today ma’am teach me how to remove dormant from account. But most of the time I
was busy in filling the form of the customer. Many customer of Nepal Bank Limited have not fill
the KYC form. So I tell them to fill the form and summited to us. Most of the customer used to
be angry about the KYC form. Then I have to convince them why you need to fill the KYC form.
 29

Day 9
As always I do my work as always. Many customer know about me and give their feedback
about my work. Ma’am teach me how to print statement, cheques. At same day ma’am also teach
me to scan signature of the customer. I also learn about the Fixed Deposit. How pension renew in
the system.

Day 12
As always I do my work. Today ma’am teach me to filling the documents of the customers
according to the date. I also learn about account opening and closing in Pumori.

Last day
At last day of my intern I was felling happy and sad to, because it was my last day in the
bank. Every staffs of the bank was very much helpful and became
 30

ANNEX I
QUESTIONNAIRE

Please answer the following questions by choosing a predefine answer:

Name: Age:

Occupation: Gender: M/F

1) How are you with the service of NBL?

a) Satisfied

b) Neutral

c) Dissatisfied

2) What do you think is the drawback of NBL?

a) High interest rate

b) Lengthy procedure

c) Client service

3) What method do you use to interact with your customer?

a) Customer service survey

b) Open meeting

c) Advisory board

4) What improvement according to you should be initiated by the bank?

a) Customer relationship
 31

b) Human resources management

c) Technology

5) Are you satisfied with ATMs and mobile banking service?

a) Satisfied

b) Neutral

c) Dissatisfied

6) Are you thinking of switching to another banks?

a) Yes

b) No

c) Not decided

7) Do you have any suggestion for NBL?

………………………………………………………………………………………………………
………………………………………………………………………………………

Thank you very much for taking the time to participate in this survey. Your feedback is valued
and very much appreciated.