An Internship Report

on
Letter of Credit at
Grand Bank Nepal
Limited

Prepared by:

Sandeep Tuladhar
MBAe Spring 2012
Roll No. 12220109

PU Registration No: 2012-2-57-0050

Date: October 11, 2014

INTRODUCTION
Internship Details

Company:

Grand Bank Limited

Address: Kamaladi, Kathandu

Department: International Trade Department (LC Department)
Supervisor:

Mr. Amit Singh Basnet (Deputy Manager, HOD)

Working Duration: June 29 2014 -August 29 2014

Work Hour:

10:00am to 5:30pm (7.5 hours a day)

Objective of Internship
To understand the overall functioning of the bank in the International trade/
LC department.

To develop interpersonal skills and problem handling techniques.

To prepare to groom oneself for working in a professional setting in near

future by understanding the organizational culture.

To conduct a research for enriching the learning experiences obtained during

the internship program aimed to understand about letter of credit.

To apply the theories learned through rigorous classroom exercise in

professional settings.

International Trade / LC
Department
GrandBank Nepal Limited has been facilitating Trade Financing

activities with the commencement of commercial activities as 'A'

class Nepal Rastra Bank licensed Bank from 25th May 2008.

Grand BankNepaloffers import facilities such as establishment of

Letter of Credit, Refinancing of goods under import through various

lines of credit facilities, Trust Receipt Loan and other short term loan.

Grand BankNepal also offers import facilities such Advising of

Export Letter of Credit, Export Financing and Packing credit.

Letter Of Credit
A letter of credit is a document issued assuring payment to a
seller of goods or services provided certain documents have
been presented to the bank.

The letter of credit serves as a guarantee to the seller that it will

be paid regardless of whether the buyer ultimately fails to pay.

Letter of Credit is abbreviated as an LC and often is referred to

as a documentary credit

Activities Performed In LC
Department

LC issuance
LC amendment
NRB reporting
Scrutinizing documents
Follow ups
Document releasing
Document settlement
Trust receipt loan
DAP Settlement
TR Settlements

Learning from activities

LC Issuance, amendments and follow ups regarding the matter.

Scrutinizing import letter of credit documents.

Understanding of UCP (Uniform Custom Practice)

Reporting L/c issuance/amends/payments to nepal rastra bank and respective

customs office.
Settlement of letter of credit, t/r loans and dap.
Understanding of Organizational Culture.
Understanding of the overall functioning of the bank in the International trade/
LC department.

Program Workplace Relationship

International Business: Study topics such as import and export, letter of

credit, incoterms etc. that was taught in International business were all relevant
in workflow at LC department.

Human Resource Management: Human resource management (HRM) taught

me that people are not just the resources to an organization. They are the assets
to the organization and this was observed in Grand Bank Nepal Limited.

Organizational Behavior: Organizational Behavior (OB) taught me how people,

individuals and group act in an organization. OB helped me in learning the
overall culture of GBNL and their norms, value, organizational politics and
working environment.

Program Workplace Relationship

Managerial Communication: Managerial communication helped

me understand importance of proper communication in an
organization. And helped me deal with different types and level of
people working in an organization during my internship period.

Management Information System: . Management information

system are typically computer systems used for managing. Things
that were taught in MIS were mostly relevant in GBNL.

Conclusion
Better understanding of Letter of credit and international
trade.

Understanding of the overall banking activities.

Understanding of Organizational culture.
Work ethics and Confidence.

THANK YOU