EXPLORING CUSTOMER SERVICE DEPARTMENT

ON KUMARI BANK LIMITED.

Tinkune, Kathmandu

An Internship Report

Submitted by

Binod Waiba

PU Reg. No: 065-2-2-01230-2017

Symbol No: 270969

Kantipur Valley College

Submitted to

Faculty of Management

Office of Dean

Purbanchal University

Biratnagar, Nepal

In Partial Fulfilment of the Requirement for the Degree of Bachelor of Business

Administration

Kumaripati, Lalitpur

January, 2023
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DECLARATION

I hereby, declare that the internship reports entitled “An internship Report on
Customer Service Department of Kumari Bank Limited (KBL)” which is submitted to
Kantipur Valley College, Faculty of management, Purbanchal University is my
original work are inform of the partial fulfillment of the requirement for the degree of
Bachelor of Business Administration (BBA) under the supervision of Dr. Chetnath
Panta , faculty member.

……………………………….

Sincerely,

Binod Waiba

BBA 7th Semester

PU Reg No: 065-2-2-01230-2017

Symbol No: 270969

Kantipur Valley College

Kumaripati, Lalitpur

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ACNOWLEDGEMENTS

My sincere gratitude goes to the Faculty of Management Purbanchal

University for making internship as the part of BBA program.

This report will not have been completed without the support and guidance of
respected teacher Dr. Chet Nath Panta. I feel great respect towards him for guiding me
to prepare this report. During my internship, many people helped me to prepare this
report. It is an honor for me to be part of Kumari Bank Ltd Tinkune Branch. Thus, I
am very thankful to all the team of Kumari Bank Ltd of Tinkune Branch for their kind
support and cooperation.

I would like to show my gratitude to Ms. Shalimar Khanal coordinator. I am

also indebted to BBA team members, faculty members and college staffs of Kantipur
Valley College of Management for providing such valuable ideas opinion and
knowledge to make my report more structured and informational.

Last but not least, I would like to thank all respects teachers my friends, our
senior team and official team for their support and help.

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TABLE OF CONTENTS

TITLE PAGE
ORGANIZATIONAL APPROVAL LETTER
RECOMMENDATION LETTER
DECLARATION............................................................................................................i
ACNOWLEDGEMENTS..............................................................................................ii
TABLE OF CONTENTS..............................................................................................iii
LIST OF TABLES........................................................................................................vi
LISTS OF FIGURES...................................................................................................vii
ABBREVIATIONS....................................................................................................viii
EXECUTIVE SUMMARY...........................................................................................ix
CHAPTER 1...................................................................................................................1
INTRODUCTION..........................................................................................................1
Overview of the Organization....................................................................................1
Origin of Bank in Nepal.............................................................................................2
Evolution of the Organization....................................................................................3
Types of Bank in Nepal..............................................................................................3
Introductions of Kumari Bank Limited......................................................................6
Objectives of Kumari Bank Limited..........................................................................7
Corporate Value..........................................................................................................7
Capital structure..........................................................................................................8
Product and Services................................................................................................11
Product of Kumari Bank Limited.............................................................................11
Kumari Big Saving Khata........................................................................................11
Kumari Smart Bachat Khata.....................................................................................12
Kumari Savings........................................................................................................12
Loans........................................................................................................................13
Vehicle Loan............................................................................................................13
Home Loan...............................................................................................................13
Education Loan.........................................................................................................13
Consumer Product Financing...................................................................................14
Services of Kumari Bank Limited............................................................................14

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Kumari Internet Banking..........................................................................................14

Kumari SMS Banking..............................................................................................14
Inward Remittance....................................................................................................15
Any Branch Banking Service (ABBS).....................................................................15
ATM / Debit cards....................................................................................................15
Objective of Study....................................................................................................15
Methodology.............................................................................................................15
Primary Data Sources...............................................................................................16
Secondary Data Sources...........................................................................................16
Functions of the Concerned Departments................................................................16
Activities Performed in the Organization.................................................................17
Opening Account......................................................................................................17
Issuance of Cheque Book and ATM card.................................................................17
Filing Forms and Voucher........................................................................................18
Balance Inquiries......................................................................................................18
Providing Bank Balance Statement..........................................................................18
Verification...............................................................................................................18
Problem Encountered During Fulfilling Work Responsibilities..............................18
CHAPTER II................................................................................................................20
ANALYSIS AND REVIEW........................................................................................20
Analysis of the data collected on specific issues......................................................20
Critical Analysis of the Theoretical Concepts relating to Practical Experience in the
Department...............................................................................................................20
SWOT Analysis of Kumari Bank Limited...............................................................21
Strength of Kumari Bank limited.............................................................................22
Weakness of Kumari Banks Limited........................................................................22
Opportunities of Kumari Bank Limited...................................................................22
Threat of Kumari Bank.............................................................................................22
Analysis of collected data.........................................................................................23
Reaction of the Customer in Serviced Provided in the CSD....................................23
Response of the Bank Toward Customer Inquiry....................................................24
CHAPTER 3.................................................................................................................26
CONCLUSION AND RECOMMENDATION...........................................................26
Contribution of Internship in Knowledge Gain........................................................26

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General Comments and Suggestions........................................................................27

REFERENCES.............................................................................................................28
ANNEX-1....................................................................................................................29
JOURNAL....................................................................................................................31

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LIST OF TABLES

Table No 1 Establishment of Banking System in Nepal 2

Table No 2 List of Commercial Banks of Nepal 4

Table No 3 Interim Financial Statements of the FY 2077/78 9

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LISTS OF FIGURES

Figure 1.1 Organizational Structure 8

Figure 2.1 Reaction of the Customer in Serviced Provided in CSD 23
Figure 2.2 Reaction towards opening account in Kumari bank 24
Figure 2.3 Satisfied with Interest Rate Provided by Kumari Bank 24
Figure 2.4 Satisfied with Interest Rate Provided by Kumari Bank 25

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ABBREVIATIONS

ATM : Automatic Teller Machine

ABBS : Any Branch Banking Service

BBA : Bachelor of Business Administration

BM : Branch Manager

BOD : Board of Director

CEO : Chief Executive Officer

CSD : Customer Service Department

IME : International Money Exchange

KYC : Know Your Customer

KBL : Kumari Bank Limited

LC : Letter of Credit

PAN : Permanent Account Number

PU : Purbanchal University

SMS : Short Message Service

SWIFT. : Society of Worldwide Interbank Finance Telecommunication

VAT : Value Added Tax

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EXECUTIVE SUMMARY

This project has been conducted for the partial fulfillment of internship for the
degree of Bachelor of Business Administration (BBA) under Purbanchal University.
It is prepared on the basis of internship that I had gone through in Kumari Bank
Limited of Tinkune Branch, Kathmandu. This internship program has provided me
the chance to compare my theoretical knowledge of class works with the practical
business and helped me to acquire managing skills.

This report mainly covers the customer service department of KBL. Banking
service is for the customer so customer service department plays an important role for
day to day operation of bank. Main objectives of this report are to understand various
aspects of customer service. KBL reporting and do all operations of Customer Service
Department.

Overall, working as an internee in KBL was a very fruitful experience in CSD.

I have mentioned all the important information as far as possible. This report is
basically based on secondary data also it an outcome of various experience,
interaction and analysis during internship periods.

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CHAPTER 1

INTRODUCTION

Overview of the Organization

A bank is a depository financial institution which purchases money and sells
money for money. In other word, bank is a financial institution that deals with
monetary transactions established to safeguard people’s money, which is used to
provide loans and investment. The main function of bank is accepting deposits and
advancing loans. Bank collect scattered money from public in the form of deposit by
providing them certain percent of interest and distribution the accumulated fund to
other, who are need of money by charging certain percent of interest, which is usually
higher than the interest that it gives to the depositors. Bank can also be termed as an
intermediary, which bridges the gap between saves of fund and users of fund.
According to commercial Bank Act (2031 B.S), “A commercial bank refers to
such type so bank which operates currency exchange transaction, accepts deposits,
advance loans, performs dealing relating to commerce except the bank which been
specified for the cooperative, agricultural, industry of the similar other specific
objective”.

It is difficult to say exactly to say from where the term bank has been derived.
But it is assumed that the term “Bank” was originated from the Latin word ”Bancus”,
Italian word “Banca” and French word “Banque” which all mean “Bench”. In the
streets of major city Europe, moneylenders used benches for acceptances, payments
and exchange of valuables and coins. So, it can be said that the term bank was derived
from here. When moneylenders were unable to pay their liability the depositors used
to break their benches and the term “Bank Empty” is derived thereof.

Bank is a financial intermediary which creates the relationship with both the
surplus units and the deficit. To create the relationship with these units, bank offers
various financial products and the person who purchase the products knowingly or
unknowingly becomes the relative of the bank offers to the public are various

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deposited money or funds purchase the loan products as per their requirement and the
one who have excess finds purchase the deposits schemes.

Basically, banks are those financial institutions that offer the widest range of
financial services providing credit of financial function for the all types of business
firm in the economy. Commercial bank is thyme term used for a normal bank to
distinguish it from an investment bank. It raises fund by collecting deposits from
business and consumers. It also buys corporate bonds and government bonds. Its
primary liabilities are deposits and primary assets are loans and bonds.

Origin of Bank in Nepal

Pre-modern banking system is found during the reign of Rana Prime Minister,
Randip Singh in1880 A.D. towards the end of 14 th Tanka Dhari meaning money under
was the owners of the monitory during the period of Prime Minister Randip Singh
established Tejarath Adda. In 1983 state financial institute which supply credit or loan
against security. The establishment of banking system in the Nepal has been briefly

Table No: 1 Establishment of Banking System in Nepal

Date Growth of Banking System in Nepal

14th century Introduction of ‘Tankaddhari’
1938 B.S Establishments of ‘Tejarath Adda’
1994 B.S Establishments of Nepal Bank Limited
2013 B.S Establishment of Nepal Rastriya Bank
2016 B.S Conversation of Industrials Development
Centre in to Nepal Industrial
Development Corporation
2022 B.S Establishment of Rastriya Banjya Bank
2024 B.S Establishment of Agriculture Development Bank
2041 B.S Nabil Bank
2042 B.S Nepal Investment Bank
2043 B.S Standard Charted Bank
2049 B.S Himalayan Bank Limited

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Evolution of the Organization

In the context of Nepal, it is very difficult to trace the correct chorological
history of the Banking systems Nepal because there are no sufficient historical records
data about banking in Nepal.
Nepal Bank Limited is the first modern bank of Nepal is taken as the
milestone of modern banking of the country. Nepal Bank marks the beginning of new
era in the history of the modern banking in Nepal. This was established in 1937 A.D.
Nepal Bank is been inaugurated by king Tribhuvan Bir Bikram Shah Dev on 30 th
Kartik 1994 B.S. Nepal Bank was established as semi government bank. Until mid
1940s, only metallic coins were used as medium of exchange.

Nepal Bank Limited was as joint venture between the government and the
private sector. Out of 2500 equity shares of Nrs100 face value, 40% was subscribed
by the government and the balanced that 60% was offered for the sale to private
sectors. Nepal Bank Limited remained the only financial institution of the country
until the foundations of Nepal Rastra Bank. Due to the absence of the central bank
and operate the function of central bank. Hence, the Nepal Rastra Bank Act 1955 was
formulated, which was approved by Nepal Government accordingly, the Nepal Rastra
Bank was established in 1956 A.D as the central bank of Nepal. Nepal Rastra Bank
makes various guidelines for the banking sector of the country.

Types of Bank in Nepal

Banks are classified into various categories based on the function they
perform. In Nepal, basically banks are used as synonyms for commercial bank only.
However, central bank, commercial banks and development banks represent the
diversity6 of banking business in the country.

 Central bank
Nepal Rastra Bank was established in 1956 A.D as the central bank of
Nepal. The central bank is established for control of economic conditions of
the country under the ownership and control by government. It has reserve the
monopoly right of issues and disclosed of coins and currency. It holds the top
position in the banking sector and to reserve the rights to issuing notes, and
managing cash and credit system, controlling foreign exchange and

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formulating banking policy for all the banking sectors. Therefore it’s also
called as a bank of the bank.

 Commercial Banks
Commercial banks are class ‘A’ types financial institutions. Nepal
bank limited is the first commercial in Nepal. Commercial bank performs all
kinds of the banking business. Commercial bank is the major sector of
upgrading country economy. It is the oldest form of bank defined as “A”
commercial bank is the one which exchange money, accents deposits, grant
loans and performs commercial function and which is not a bank meant for
cooperative function and which is not a bank meant for cooperative,
agriculture, industries or for such purpose” according to the commercial bank
Act. In general, bank that performs all kinds of banking business and generally
finances trade and commerce is called commercial bank.

Table 2 List of Commercial Banks of Nepal

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S.N Name of Banks

1. Nepal Bank Limited
2. Rastriya Banijya Bank Limited
3. Nabil Bank Limited
4. Nepal Investment Bank
5. Standard Chartered Bank Nepal Limited
6. Himalayan Bank Limited
7. Nepal SBL Bank Limited
8. Nepal Bangladesh Bank Limited
9. Everest Bank Limited
10. Bank of Kathmandu Limited
11. Nepal Credit and Commerce Bank Limited
12. NIC Asia Bank Limited
13. Machhapuchre Bank Limited
14. Kumari Bank Limited
15. Laxmi Bank Limited
16. Siddhartha Bank Limited
17. Agricultural Development Bank Limited
18. Global IME Bank Limited
19. Citizen Bank International Limited
20. Prime Commercial Bank Limited
21. Sunrise Bank Limited
22. NMB Bank Limited
23. Prabhu Bank Limited
24. Mega Bank Limited
25. Civil Bank Limited
26. Century Commercial Bank Limited
27. Sanima Bank Limited
Source: Nepal Rastra Bank

 Development Banks
Development banks are ‘B’ class financial intuitions. On the basis of
geographical coverage and activities level. Development banks are established

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to provide capital and technological assistance for the development of

infrastructure of the country.

 Finance Companies
Finance companies are ‘C’ class financial institutions. These
companies provide loans to the risky customers whom commercial banks find
to provide loan. They are the engineers of risk and convert risk into potential
business opportunities.

 Micro Credit Development Companies

Micro credit development banks are ‘D’ class financial institutions.
Micro finance companies are a source of financial service for entrepreneurs
and small business lacking access to banking related services.

Introductions of Kumari Bank Limited

Kumari bank limited, came into existence as the fifteenth commercial bank of
Nepal by starting its banking operations from Chaitra 21, 2057 B.S. (April 03, 2001)
with an objectives of providing competitive and modern banking services in the
Nepalese financial market
Kumari bank limited has been providing wide range of modern banking
services through different points of representation located in various urban and semi
urban parts of the country. The bank is pioneer in providing some the latest services
like E-Banking and SMS Banking services in Nepal. The bank always focus on the
building sound technology driven trainee system to cater the changing needs of the
customers to enhances high comfort and value.

Kumari bank limited has been offering both domestic and international visa
debit card and credit card accessible in the entire VISA connected ATM in Nepal and
India providing extra services to the customers. Beside with this, the KBL has also
been offering most modern mobile banking, viber banking, QR payment and online
banking services.

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Kumari bank limited (KBL) with a slogan of “SABAI KA LAGI SADHAI

KA LAGI” expands its services. It has been operating its business in many places of
Nepal since twenty years. Its major market is viewed to be every nook and corner of
the country so it is extending further more branches in the various cities in the near
future. The various branches recently in operation by the branch managers are:
provide customers friendly service through its branch network and all its branches are
connected through Anywhere Branch Banking System (ABBS), which enables
customers for operational transaction from any branches.

Kumari Bank has begun a joint transaction after a successful acquisition of

Deva Bikas Bank from Asad 28, 2077. The event to mark the joint transaction was
held in Kumari Bank head office, Tangal that was jointly inaugurated by chairman of
Kumari Bank Mr. Amir Pratap JB Rana, and then chairman of Deva Bikas Bank Mr.
Bajra Gurung. The newly revamped bank will now have its presence with Rs 124 arba
in deposit collection gigure, Rs 112 arba as credit disbursement, Rs 12.52 arba in
paid-up value, 201 branches and extension counters, 138 ATM booths, as per media
statement.

Objectives of Kumari Bank Limited

The objectives are to be consistent sustainable performance over the long term
period. It aspires to be the primary bank for the customers, catering all of their
banking requirements. The bank has committed to continuously strive realizing its
objectives by leading the leading the bank in every front:
 Its main objective is to achieve its goal by satisfying its customer’s needs and
wants.
 Bringing innovations and customization to meet customer need and to hold
quality.
 Provide secured future for its internal employees.
 Attractive return to its investors.
 To make life long relationship with client and achieve profitability through
customers-oriented service

Vision Statement

“SABAI KA LAGI SADHAI KA LAGI”

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Mission Statement

Mission is to deliver innovative products and service to customers use these

innovative products to achieve financial inclusion and do so by exemplifying good
corporate governance, proactive risk management practice and superior corporate
social responsibility.

Corporate Value
Corporate values server as the basic principle, which set foundation to achieve
sustainable development. Adoption of these values helps in protecting, sustaining and
enhancing human and financial capital of the bank for the future.

 Team work
 Driven
 Initiative
 Professional
 High ethical stand

Figure 1. Organizational Design and structure

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Branch
Manager

Operation
Incharge

Customer Cash Security

Service Remittance Credit Departme
Counter Department
Department nt

This is organizational structure of Kumari Bank Limited; Branch manager is head of

the organization. He/she supervises the employee and takes major decision. Credit
head deals with the loan customer and do documentation. The ready files are signed
by credit head office and branch manager and to the head office for the approval.
Operational department includes Customer Service Department (CSD), Teller
Department and Remittance Department. CSD department help customer to deposit
and withdraw cash from bank. Operation head control and supervises CSD
Department, Teller Department and Remittance Department. All the staff works with
cooperation helping each other

Capital structure
Capital structures describe the limitation of the limitation of banking activities.
The past of capital structure may be authorized capital, issue capital and paid-up
capital. Both debt and equity can be found on the balance sheet. Company assets, also
listed on the balance sheet, are purchased with debt or equity. Capital structure can be
a mixture of a company's long-term debt, short-term debt, common stock, and
preferred stock. A company's proportion of short-term debt versus long-term debt is
considered when analyzing its capital structure.

When analysts refer to capital structure, they are most likely referring to a
firm's debt-to-equity, (D/E) ratio, which provides insight into how risky a company's

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borrowing practices are. Usually, a company that is heavily financed by debt has a
more aggressive capital structure and therefore poses a greater risk to investors. This
risk, however, may be the primary source of the firm's growth. .

Equity allows outside investors to take partial ownership of the company.

Equity is more expensive than debt, especially when interest rates are low. However,
unlike debt, equity does not need to be paid back. This is a benefit to the company in
the case of declining earnings. On the other hand, equity represents a claim by the
owner on the future earnings of the company.

Table: 3

Interim Financial Statements of the FY 2077/78

Condensed Consolidated Statement of Financial Position

As at Second Quarter (13th January 2021) of the Fiscal Year 2020/21

Group Bank
This Quarter Immediate This Quarter Immediate
Particulars
Ending Previous year Ending Previous Year
ending Ending
Assets
Cash and Cash 11,716,214,021 9,167,710,010 11,692,283,882 9,154,311,217
Equivalents
Due from Nepal Rastra 6,197,835,818 5,821,520,113 6,197,835,818 5,821,520,113
Bank
Placement with Bank 221,480,796 852,447,642 221,480,796 852,447,642
and Financial
Institutions
Derivative Financial 8,292,189,784 7,416,210,368 8,292,189,782 7,416,210,368
Instruments
Other Trading Assets - - - -
Loans and Advances to 5,229,059,914 3,796,212,739 5,229,059,914 3,796,212,739
BFIs
Loans and Advances to 112,738,986,819 110,717,259,568 110,717,259,568
114,738,986,815
Customers

Investment Securities 18,996,039,398 12,948,889,348 18,806,312,615 12,757,707,848

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Current Tax Assets 9,241,383 329,120,837 9,234,895 328,287,861

Investment in
- - 220,000,000 220,000,000
Subsidiaries
Investment in Associates 314,440,546 260,684,660 155,017,596 130,063,901
Investment Property 73,354,698 60,348,333 73,354,698 60,348,333
Property and Equipment 1,300,589,343 1,389,062,111 1,290,683,400 1,383,658,862
Goodwill and Intangible 218,477,906 207,853,560 217,577,487 206,831,581
Assets
Deferred Tax Assets - 9,891,409 - 10,001,698
Other Assets 815,177,257 486,967,994 810,086,395 486,767,824
Total Assets 168,123,087,679 153,464,178,692 167,954,104,094 153,341,629,610

Liabilities
Due to Bank and 9,525,228,745 7,452,226,327 9,651,520,934 7,475,893,656
Financial Institutions
Due to Nepal Rastra 4,447,768,799 225,355,404 4,447,768,799 225,355,404
Bank
Derivative Financial 8,155,013,932 7,369,687,548 8,155,013,932 7,369,687,548
Instruments
Deposits from customer 122,728,828,089 116,547,033,196 122,728,828,089 116,547,033,196
Borrowings - - - -
Current Tax Liabilities - - - -
Provisions - - - -
Deferred Tax Liabilities 23,334,642 - 23,224,353 -
Other Liabilities 1,923,028,127 1,465,176,738 1,797,234,593 1,460,369,865
Debt Securities Issued 2,995,273,996 2,995,116,270 2,995,273,996 2,995,116,270
Subordinated Liabilities - - - -
Total Liabilities 149,798,476,329 136,054,595,483 149,798,864,696 136,073,455,939
Equity
Share Capital 13,878,474,836 12,520,049,469 13,878,474,836 12,520,049,469
Share Premium 88,804,041 571,628,069 88,804,041 571,628,069
Retained Earning 853,369,405 1,457,834,507 685,115,166 1,317,542,681
Reserves 3,503,963,068 2,860,071,164 3,502,845,355 2,858,953,451
Total Liabilities 149,798,476,329 136,054,595,483 149,798,864,696 136,073,455,939

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Equity
Share capital 13,878,474,836 12,520,049,469 13,878,474,836 12,520,049,469
Share Premium 88,804,041 571,628,069 88,804,041 571,628,069
Retained Earnings 853,369,405 1,457,834,507 685,115,166 1,317,542,681
Reserves 3,503,963,068 2,860,071,164 3,502,845,355 2,858,953,451
Total Equity 18,324,611,350 17,409,583,208 18,155,239,398 17,268,173,670
Attributable to Equity
Holders
Non-controlling Interest - - - -
Total Equity 18,324,611,350 17,405,583,208 18,155,239,398 17,268,173,670
Total Liabilities and 168,123,087,679 153,464,178,692 167,954,104,094 153,341,629,610
Equity
Source Kumari Bank Limited

Product and Services

As a pioneer in introducing many innovative products and marketing concepts
in the domestic banking sector. It represents a milestone in the banking history of
Nepal with customer satisfaction considered as focus objectives while doing business.

Product of Kumari Bank Limited

Kumari Big Saving Khata

Kumari big saving khata as the name suggests, provides higher rates of
interest amongst the saving category product and additional banking benefits. It is the
premium saving account which provides higher rate or return and value-added
banking service to the saving account holders.
Account opening
 Minimum balance of NPR 10,000/-

Key benefits

 Privileged service
 Account statement free
 VISA debit card valid in Nepal and India
 Mobile banking facility/SMS alert notification
 Cheque book free (upon request)

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Kumari Smart Bachat Khata

Kumari smart bachat khata offers account opening facility at zero balance. We
believe in providing banking access to all. Hence, this is a very suitable account for
everyone. Besides to open account in zero balance, the accountholders are offered
various banking facility

Account opening
 Minimum balance zero

Features

 Unlimited withdraw
 Account statement free
 VISA debit card valid in Nepal and India
 Internet banking facility
 Locker facility

Kumari Savings
Kumari savings account is a special account that beholds the corporate name
after “Living Goddess Kumari”. The customers can avail various added banking
service in this account.
Account opening
 Minimum balance of NPR 5,000 or above

Features

 Internet banking
 Special consideration in consumers loan processing fee
 Monthly statement
 VISA debit card valid in Nepal and India

50 plus Savings
As the name suggests, this saving account is targeted to all the individuals of
50 years and above. Interest rate is calculated on daily balance and provided on
quarterly basis. There are attractive features associated with this account like 25%
discount on locker. ATM card/debit internet banking systems etc.

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Account opening
 Minimum balance NPR 1,000/-
Features
 Quarterly interest payable
 Internet/mobile banking facility
 25% discount on locker charge
 No restrictions on deposit or withdraw
 VISA debit card valid in Nepal and India

Loans
The needs for financial various short terms and long term venture of both
corporate and retail clients has been fulfillment by the bank with its large loan product
portfolio. The various kinds of loan provided by the bank are:

Vehicle Loan
KBL finance up to 80% of the vehicles that is new or will be less than7 years
old at the time of final maturity of the loans. KBL need is proof of income and/or
reference/guarantee from customer employer/individual acceptable to us.

Depending on customer income and the car customer choose to buy can
availed of at a very competitive rate of interest. Repayments are calculated on an
Equal Monthly Installment (EMI) basis that goes easy on customer monthly budget.

Home Loan
KBL finance up to 60% of the cost of the purchase / construction / renovation
of lands or house within municipal boundaries. All KBL need is proof of customer
income and/or reference, guarantee from customer employer or individual acceptable
to KBL.

Education Loan
KBL finance up to 60% of the cost tuition and admission. All KBL need is
proof customer income and/or reference from customer employer/individual
acceptable to KBL. Property being mortgaged should be located within municipal
boundaries and must have a motor able access. Monthly net saving in case of self-
employees / Salaried Employees.

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Consumer Product Financing

KBL help finance a range of consumer durables and household equipments
like televisions, furniture, personal computer, music systems, air conditioner,
microwave ovens, refrigerator, washing machine, etc.

Services of Kumari Bank Limited

“Need centered product are the KBL product” is basic business philosophy.
The bank has been continuously identifying customer changing needs and
preferences, designing and offering need centered augmented product and service that
has met or even exceeded customer’s expectation. The innovation products of the
bank has not only added extra value and provided high level of satisfaction to
customer but also produced desire on customer to be associated with the bank’s future
innovation/ the bank perceives product differentiation and service excellence as an
opportunity to prove superior to competitors and has been successful in the past and is
the source of inspiration to go ahead.
 Cash withdrawal
 Mini transaction report
 Mini statement prints
 Balance enquiry

Kumari Internet Banking

The first ever commercial bank in the country to provide “Internet Banking
Service” to its customer. This service has allowed the bank to streamline the service it
offers to customers. It allows customers the flexibility to take control of banking
activities via the internet. Further it has enables core customers to transact with us
from any corner of the world and made their job simpler.

Kumari SMS Banking

Kumari bank is the first bank in the history of Nepal to start a mobile banking
service. The bank has facilitated this service to customer with a crucial role of
responding to their inquiries and transactional information via SMS messaging.
Annual service charge for Kumari mobile banking Rs 250 year per account/mobile
number. The services will be renewed automatically every year.

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Inward Remittance
Remittance is one of the major generating services of the banks. Remittance
services of the bank are beneficial both to the business and personal customers as it
make the transfer of money income. It covers large percentage of its national income.
It facilitates the sending and receiving funds to various places

Any Branch Banking Service (ABBS)

Kumari bank has Any Branch Banking System to facilitate its customer to have
easy transactions. As KBL, for the solutions of endless long procedure, rush hour
traffic, long queues, risk of carrying huge sum of money to the bank, wanted to take
out money from customers account but to make the service more reliable bank
introduced, convenient service.

ATM / Debit cards

KBL Debit card allows holders to withdraw cash, inquire balance and make
payment through a wide network. ATMs are merchant outlets of VISA in Nepal and
India.

Objective of Study
The objectives of the internship are as follows:
 To analyze the basic services provided to customers by the customer service
department help desk.
 To analyze the perceptions of the customers regarding the service offered by
customer service department.
 To develop skills and technique directly applicable to the careers.
 To provide the suggestions and recommendations to the organization.

Methodology
A method is set of procedures and techniques for gathering and analyzing
data. It deals with the research is conducted. While conducting research we need
methodology to collect data for inference and interpretation. Methodology is the
systematic, theoretical analysis is of the methods applied to a field of study. It
encompasses concepts such as paradigm, theoretical model, phase and quantitative or
qualitative techniques.
I have chosen primary as well as secondary sources of methodology for the
data collection and completion of the internship reports.

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Primary Data Sources

The primary data sources which were used in the internship program
were the observation, interview taken to the customer and practical work
experience in the bank. From the observation method different working
activities conducted in the department were observed. The observation method
includes understanding of different activities as their daily work procedure.
The basic activities that are involved in the way of dealing with customers,
employees’ relationship and the working environmental condition of
organizations. The main source of primary data was through practical work
which I was assigned to their daily work. The staff members of the bank also
helped me to collect information as they guided me throughout the working
period. Data such as questionnaires, observation, interviewing, mission, future
planning were collected primary through staff of the bank.

Secondary Data Sources

Published data and the data collected in the past for future reference or
record purpose as termed as internship reports, websites of KBL, are thee
secondary source of the data collection for my reports.
i. Internal source
 Annual report of the bank
 Performance report

ii. External source

 Official website
 Books
 Past internship reports.

Functions of the Concerned Departments

During the 8 weeks of internship period, as being intern in Kumari Bank I was
placed in Customer Service Department. Customer Service is the ability to provide a
service or product in the way that it has been promised. Every bank has a separate
CSD for providing effective service to the customer. The CSD was constituted to
providing proper focus to the entire range of customer service-related activities of
banks. In CSD all the instruction, information and grievance of customers are
collected and try to solve the problem and grievance of the customer. CSD is
constituted in order to bring together all activities relating to customer service in bank.

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CSD is the department where all the service of customer is performed. This
department helps the customer if necessary.
In CSD I have handled all the activities of customer services. I have first
watch and learn the activities which I had to perform in the bank. I had first learned to
open different types of account and helped customer to open the account then I entry
the transaction in the computer. I had photocopied the document as necessary. I had
prepared the cheque for the customer and also registered in the registered in the
register bank. I had printed the bank account statement I helped customer to open the
ATM card form and also worked in the distribution of ATM card. I had also handled
the customer query handling, filing, indexing and form making.

Activities Performed in the Organization

In KBL, I worked in CSD department. As a service oriented company the
major responsibilities KBL are given better service to the clients promptly on their
demand. I was mainly given the responsibility of service related issues under the
supervision of respective officers. In the period of my internship I helped the
organization by sharing the workload of the respective office. The working
environment was very comfortable to work in with friendly staffs which made the
work easier. The major gives to me are as follows:

Opening Account
The first thing I had known was about the criteria of opening the account of
new customer. The responsibility of the customer service starts with opening of new
account of the new customer informing them about the facilities available in the
organization. I learnt about the documents required to open a new account. By
opening an account bank bridge its customer to avail the facilities provided by the
bank.

Issuance of Cheque Book and ATM card

The cheque book and ATM had its own respective register which was required
to be mentioned along with the signature of the signature of the customer in the
register. Before printing the cheque book, requisition should be completed containing
title of account type, account number, number of leaves to be printed and signature of
the Account holder. Signature of the holder is verified on the requisition. In case of

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account holder’s inability to collect cheque behalf only by signing on the requisition
but it is not same in case of ATM. The account holder must present to collect it.

Filing Forms and Voucher

In the times of account opening, some customers are unable to fill it. At that
time, I helped those customers for fill up the form and voucher after getting
information from them.

Balance Inquiries
Kumari bank facilities for customer balance check facilities through CSD. It
only provides respective account holders about balance in their account. If account
holder unable to come then representation can know balance with application written
by account holder with his/her signature, if signature is matched information about
balance will be provided.

Providing Bank Balance Statement

Bank balance statement is a statement that provides information about the
account deposit or issued (transaction). Kumari Bank has providing account statement
as per customer request. It provided as weekly, monthly and quarterly basis.

Verification
Customer Service Department performs verification function. It is very
different account before opening, signature of customer is verify at the time of issuing
new cheque, issuing debit card, payment of amount and so on.

Problem Encountered During Fulfilling Work Responsibilities

While carrying out the task assigned by the supervisor, I had to face the different
types of problem. Some of them are
 It was very difficult to make clients understand about which form is to be
filled and how as per their requirement.
 Some of the customers disagrees to accept the charges for cheques book lost
issue and make argument on this matter for long time. So, it was difficult to
convince them about the rules and regulations.

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 The customers need to go through the long process to get a single things done
so it made them aggressive and sometimes I had to face anger from many of
them.
 The system would go down due to various IT problems and load shedding
problems causing clients to be impatience and outrageous.
 The printers were not timely attended which caused problems in printing
statements and cheques and ultimately customers were unhappy with our
services

CHAPTER TWO

ANALYSIS AND REVIEW

Analysis of the Data Collected on Specific Issues

As an internee, it was indeed a great opportunity to know about the banking
activities. The internship period was very fruitful which shows the face of real life job

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experience. I felt it to be quite effective to enter in the world of banking institutions.

The internship period has taught me how KBL can implement the theoretical
knowledge in our practical life. KBL learnt interpersonal skill, communicational skill
and technical skill that helped me to build my knowledge in a broad ways. The
interpersonal skills helped me to interact with the various types of customers and their
various problems. The negotiation skills also got increased developing the softness
and being more formal while communicating with the people or clients.

Critical Analysis of the Theoretical Concepts Relating to Practical Experience in

the Department
Theory without practice and practice without any theoretical knowledge is
useless. For an organization to be effective and efficient there must be equilibrium in
between theories and practice. While working as an intern in KBL, I saw most of the
theories were less practiced in the organization. Keeping reference to my internship, I
could point out various gaps was found between my theoretical academic education
and practical knowledge which gained while doing internship.
The Theory of Human Side of Enterprises

American social psychologist, Douglas McGregor, introduced X and Y

theories in his book, “The Human Side of Enterprise,” where he concluded that two
different styles of management are guided by their perceptions of team member
motivations. Managers who assume employees are apathetic or dislike their work use
theory X, which is authoritarian. Theory Y is used by managers who believe
employees are responsible, committed and self-motivated. This is a participative
management style that gives rise to a more collaborative work environment, whereas
theory X leads to micromanaging.

While working as an internee in Kumari Bank, I got the opportunities to

closely observe the working environment of the various departments. I found that
environment of the bank is operated on the basis of the Theory X and Y where our
manager used Theory X by supervising or controlling them because that the
employees have little or no ambition, avoid responsibilities, are individual goal
oriented and unmotivated and disrelish working. Whereas, he used Theory Y as he
believes that his employees are utmost valuable assists, managing the internal
working of the organization.

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Also, the manager of Kumari bank said that the relation between the staff
member is the main reason for the productivity and efficient performance of the bank.

System Theory

System theory is developed by Ludwig Von Bertalanffy (1901-1972). This

theory is a system composed of interacting elements that are affected by their
environment. Because of this interaction the system as whole can evolve and self
regulate. When this system is applied to business expert shorten general system theory
to just system theory. In actual fact system theory is more a perspective than a fully
formed practice. System theory encourages you to realize that your business is system
and is governed by the same laws and behaviors that effect ever other biological
organization.

As per my observation, the system of Nepal Rastra Bank is followed by the

Kumari Bank on regarding the interest rate, rules and regulations, policy. Where the
environment are focused on the perspective of friendly behavior than the respective
position of the staff members

SWOT Analysis of Kumari Bank Limited

SWOT analysis is a strategic planning method used to evaluate the Strength,
Weakness, Opportunities and Threats in a business venture. It identifies internal and
external factors that are favorable and unfavorable to achieve those objectives. The
SWOT analysis classifies the internal aspect of the company as strengths or weakness
and the external situational factors as opportunities or threats.

Strength of Kumari Bank limited

When I asked about the strength of Kumari Bank to the bank manager of
Tinkune Branch, he said “Kumari Bank Ltd is a joint venture with Dev Bikash
Bank. It has satisfied group of customers through advance service. It has first
class infrastructure and advanced technology, Goodwill, quality services, facility
of any branches system, pioneer of online banking, effective interdepartmental
communication and proper strategic planning and preparation.”
In my observation, I found that the bank has advance technology and proper
planning and good performance.

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Weakness of Kumari Banks Limited

Regarding weakness of the bank, the bank manager “Commencement of new
technology is still in process. Its weakness is lack of sufficient ATM in and outside
valley insufficient marketing and availability of limited cards service”.
In my observation, I found that the weakness of the bank is problems in ATM
services due to the problem of Networking. Delay in providing service to the
customer due to the lack of space in CSD an lack of cash counter.

Opportunities of Kumari Bank Limited

As per the manager of the bank, “It’s opportunities available in the bank is
new investment opportunities growing international trade, introduction of
innovation program and installation of update technologies.”
In my observation, in found that there is opportunities of increasing
customer due to marketing and updating new technology.

Threat of Kumari Bank

Some of the threats to Kumari Bank Ltd experienced by bank manager are,
“High competition due to large number of banks, political instability, changing
customer preferences, changing technology, intense competition and lack of
investment opportunities on the market”.

In my observation, I found that the market is competitive and everyone wants

to get position in the banking sector by providing facilities and based on the
customer demand.

Analysis of collected data

Reaction of the Customer in Serviced Provided in the CSD

The CSD of KBL is the only department, which is always in hustle due to the
accumulation of more than one task in the very one department. When customers
were asked about the services delivered by the CSD, they asked about the service

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delivered by the CSD, they mostly complained about the unmanaged token system,
which made them wait for longer time.

stronglt disagree
10%

Strongly agree
30%

disagree
20%

un decided
20%
Agree
20%

Figure:2.1 Reaction to the Customer in Serviced Provided in the CSD

The above pie chart figure shows the reaction of customer towards the service
provided by the CSD where, 30% only strongly agree, 20 % agree and 10% strongly
disagree with with the service of Kumari Bank

Response of the Bank Toward Customer Inquiry

Banks are established with the aim of provides better service to the customer.
Banks should have the knowledge about the handling and response to the inquiry.

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strongly dis-agree
10%

Disagree Strongly agree

10% 40%

Undecided
20%

Agree
20%
Figure: 2.2 Response of the Bank Toward Customer Inquiry

The above figure shows the response of the banking towards customer inquiry.
40% of customers are satisfied with the performance of the bankers. Upon my query
and view of the customer a banker are friendly and performs better in handling
customer and quick responses on the inquiry of the customers. Problem of networking
sometimes they have to wait.

Reaction Towards Opening Account in Kumari Bank

strongly dis-agree
2%

Disagree
3%

Undecided
5%
Strongly agree
70%

Agree
20%

Figure: 2.3 Reaction Towards Opening Account in Kumari Bank

The above pie chart illustrates the satisfaction of customers towards the account
opening in kumari bank where, 70% are strongly satisfied or agree with it and 20%
only agreed, likewise 5% are undecided, where 3% strongly disagree about it.

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Satisfied with Interest Rate Provided by Kumari Bank

strongly dis-agree
Disagree 5%
5%
Undecided
10%

Strongly agree
60%
Agree
20%

figure: 2.4 Satisfied with Interest Rate Provided by Kumari Bank

The above pie chart illustrate that the interest rate provided by the
kumari bank is satisfactory with the customer by the survey conducted
between them. Where 60% are highly satisfied with the interest rate provided
and 10 % are undecided and 5% disagree about it.

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CHAPTER THREE

CONCLUSION AND RECOMMENDATION

Contribution of Internship in Knowledge Gain

During my tenure of 8 weeks as an intern at Kumari Bank Limited, I got the
opportunity to dissolve myself into the banking working environment. It was a great
learning experience that I got to know about different working environment that
occurs into the real life situation. I got the opportunity to apply theoretical knowledge
into the practical field.
As an internee in the developed bank of the country. I was able to build up the
confidence level that is a must while interacting with various people in and outside the
banking environment. Furthermore, I learned the basic strategies of dealing with
clients and handling their queries. Also during peak hours, I learned to stay calm, and
tactful. I become familiar with banking environment and also able to cultivate the
positivity with different work exposure. Beside, handling customers complaints,
carrying out responsibilities given by the in charging, being punctual are some of the
knowledge acquired from this internship also helped a lot to enhanced the knowledge
regarding the banking system, interpersonal skill, human behavior, personality,
important of maintain the personal relation and learn how to deal with various types
of customers. Some of the skills that I learnt during my internship period are listed
below:

 Implication of theoretical knowledge into practical life.

 Learnt how to open and close an account.
 Knowledge about organization environment and work culture
 By working at CSD, the intern has learnt how to tackle with customer’s
queries and problems patiently and develop communication skill.

I was successful enough to achieve my internship objective that was planned. During
my internship, I was able to understand the corporate environment through managerial
perspective, being able to corporate and comprehended the true concept of working
with people in team.

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General Comments and Suggestions

It was great experience to do the internship in Kumari Bank Limited. The
staffs were very friendly and cooperative. This internship provide positive
environment. Internship program is really integrative for the students of BBA so that
the students would be able to select right job in future. Through internee learned a lot
from internship but on the mean time internee has also faced many obstacles during
the internship period. Hence, the following are recommendations.
 Although there is token system in CSD of Kumari Bank it is not managed
properly. It should be managed in effective way.
 A customer is the main priority of the banks so the complaints of the customer
should be promptly responded.
 Area of Customer Service Department (CSD) is narrow, it create problems in
providing service to the customer. So, make wide area of CSD.
 During the internship most of the customer’s complaint about the ATM
facilities as well as the SMS banking, KBL should try to improve in these
sectors well.
 There is not much enough space for customers to wait in busy season although
having the token system. So, open area should be chosen.
 All the bank should be properly trained in using the banking software
 Try to do better in giving service like instant ATM cards etc. it will be better if
bank follows as new network that will also be used outside the country.

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REFERENCES

Bertalanffy, V. L. (2011). The history and status of general system theory.

http://www.jstor.org/stable/255139
Kumari Bank Limited. (2077/2078). Annual report. Author.
McGregor, D. (1960). The human side of enterprise. McGraw-Hill.

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ANNEX-1

Questionnaire for Survey

For Customers

Dear Sir/Madam,

I am a student of BBA, studying in Kantipur Valley Collage, Purbanchal University

and I am conducting a survey for data analysis part of my internship report on
Customer Service Department of Kumari Bank Limited. Please answer to the
following questions as accurately as possible. I would be grateful if you could spare
few precious minutes to participate in it. Your response will be kept confidential and
will be used for the purpose of this research only.

Use tick mark to choose your answer.

1.Are you satisfied with the customer service provided by kumari bank in CSD?
[ ] Strongly Agree
[ ] Agree
[ ] Undecided
[ ] Disagree
[ ] Strongly Disagree

2. Are you satified with the bank response toward the customer inquiry?
[ ] Strongly Agree
[ ] Agree
[ ] Undecided
[ ] Disagree
[ ] Strongly Disagree
[ ] Strongly Disagree

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3. Is Opening Account Easy in Kumari Bank?

[ ] Strongly Agree
[ ] Agree
[ ] Undecided
[ ] Disagree
[ ] Strongly Disagree
[ ] Strongly Disagree

4. Are you satisfied with the interest rate provided by the Kumrari Bank?
[ ] Strongly Agree
[ ] Agree
[ ] Undecided
[ ] Disagree
[ ] Strongly Disagree
[ ] Strongly Disagree

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JOURNAL

Day 1
On the first day of my internship, I was quite nervous but also felt excited
because it was the first work experience in my life. I was also too afraid because that
was first day of my internship and I did not know environment and staff of the bank
that day I thought how I would work with the staff and I did not know what my work
was. So, I reached bank at 9:45am. When I went to the bank, firstly I met to the
operation in charge, she introduced me in the office as an internee, and she told one of
her bank staff to teach me about how work is done at CSD department. There was no
internee at the bank so I was little nervous but the staff member of KBL signed up of
CSD, showed me how to open saving account, issue of cheque, and fill up deposit slip
as well as other common task performed on CSD. In that day, I just saw how they
work. I exit at 5 PM from the Bank.

Days 10
Days have passed quickly, engaging on daily basis of tasks on customer
service department made me so busy. I reached at 9:45am into the bank and greeted
all staff of the bank. As usual day we started the work they helped me keep record in
the file and gave information of all work and responsibilities that I perform as intern
in the bank. Till this date I have met variety of customer with different age. Some
customer were polite and happy about service of CSD but some customer were short
tempered and beyond limit they just yell even when staff are doing their best.
Practical theory is not enough to deal customer regarding their perception and
attitude.

Day 20
As usual I reached bank at 9:45, up to this day I was familiar how everything
functions and operates. For me, it was a great learning experience, it made me realize
that I had to be tactful and quick so that all the information the customer wanted to
know were being delivered to them as fast as possible. I did not all things that in have
been doing as daily routine like opening account, distribution of cheque, issuing bank
statement, distribution of ATM cards dealing with customers and so on.

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Day 30
It was the final day as an internee at KBL. I feel good environment and got
opportunities learned about the banking system, rules and regulation. My performance
of activities was much better than previous days. I did all work which was given by
staff of CSD department. They helped me to perform the activities and fulfilled my
responsibilities. I feel comfortable with them and I asked when I was confused and
did not know about that work. They made me suitable environment and gave
information. At last day of my internship in charge of CSD gave me the letter of
internship.

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