Chapter 1 INTRODUCTION

1.1

BACKGROUND

Bachelor of Business Administration (BBA) is a dynamic and professional program, which includes internship training in 8th semester as prescribed by Tribhuvan University (TU). This report has been prepared for the partial fulfillment of the BBA course based on eight weeks internship training in the selected organization. This report provided us to analyze the practical implications of the theoretical aspects learned during BBA program and to gain a professional experience as an employee in a leading organization of Nepal. So, the internship is included in the curriculum. This report has been prepared on the basis of activities and observations got from the Customer Service Department (CSD) during the internship period. The report is concerned to the Customer service part of Bank of Asia Nepal (BOAN) as responsibility and work assigned by the staffs of BOAN for the period of internship in Customer Service Department (CSD). An internship is a work-related learning experience for individuals who wish to develop hands on work experience in a certain occupational field. Most internship is temporary assignments that last approximately three months up to a year. Moreover, an internship is a position which allows a student to gain professional experience in an occupational area they are considering. Typically the experience has a level of responsibility that allows a student to develop new skills in the field and offers the student training and supervision that facilitates learning.

1.2 OBJECTIVE OF THE STUDY The main objective of internship is to analyze the practical implication of the theoretical aspect learnt during BBA program. The other specific objectives of the reports are as flows: To develop managerial and interpersonal skills to tackle real life problems arising in the organization To acquire good work habit To acquire the practical knowledge of the things we have learned theoretically To fulfill the partial requirement i.e. equivalent to 6 credit hours of the BBA program To provide an overview of banking and BOAN in practical Understand the Scenario of customer service in the BOAN

1.3 METHODOLOGIES
1.3.1 Selection of organization BOAN is one of the Service organizations in our country. There are various issues and challenges regarding the Customer Service and the employees of BOAN, which was the right choice for me to learn the working environment and with the help of which I could prepare my report on Customer Service policies. I selected the bank as a place for internship because I have always considered it as a private sector financial institution with variety of activities and large customer base. 1.3.2 Placement Regarding the placement, I was sent to BOAN at Dillibazar branch. I was placed to Customer Service Departments of BOAN within 9 weeks; so that I could have overall knowledge of Customer service related activities in the bank. Within 9 weeks, I learned to be familiarized in a new environment and working procedures of CSD.

1.3.3 Duration The duration of internship was of 9 weeks started from 17 May 2010 and ended at 16 July 2010 that is the main basis of writing this report. The work done during this period provided the experience to find out many things about BOAN and its CSD especially. During 9 weeks spent on CSD for internship i.e. including marketing research I learned a lot about what activities to be conducted in detail to provide quality and efficient Customer service to compete in this competitive environment where many similar organizations are providing familiar kind of services for the same group of Customer. 1.3.4 Activities Performed During Internship

Internship program is the practical experience based on the classroom-oriented theoretical knowledge on the actual workplace. During the period of internship various activities and tasks assigned by the staffs of CSD were performed. The assigned activities and tasks of CSD are: Opening and closing the account of the customers by traditional method and recording them in finacle providing balance certificate and bank statement to the customers Issuing Cheque books and Debit cards to the customers. Providing i-touch service Providing excess to e- banking facility to the customers. Handling petty cash. Maintaining stationary and requisition. Use of photocopy and fax machines. Helped to increase the number of accounts through marketing of product of BOAN Dealing with various types of customer and receiving their suggestions and handling their complaints Helped the customer to fill the form of right share and recording them in excel. Maintaining the traditional filing system and also classifying the files as per the product of BOAN in systematic order. 1.3.5 Sources of Data and Information 3

PRIMARY SOURCES Survey conducted with the customers Interview conducted with Mr. Yug Basnet (Branch manager of Dillibazar) Interview conducted with Mr. Naresh Bhattarai (Head of Operation Of department) Interview with other staffs.

SECONDARY SOURCES Annual Report of Bank of Asia Nepal www.bankofasia.com.np (web site of the BOAN) Brochures and Pamphlets of Bank of Asia Nepal Application Forms for different Kinds of deposits

Chapter Two
4

ANALYSIS OF THE INDUSTRY

2.1 THE ORIGIN AND USE OF BANKS
The Word bank is derived from the Italian word banko signifying a bench, which was erected in the market-place, where it was customary to exchange money. The Lombard Jews were the first to practice this exchange business, the first bench having been established in Italy A.D. 808. Some authorities assert that the Lombard merchants commenced the business of money-dealing, employing bills of exchange as remittances, about the beginning of the thirteenth century. About the middle of the twelfth century it became evident, as the advantage of coined money was gradually acknowledged, that there must be some controlling power, some corporation which would undertake to keep the coins that were to bear the royal stamp upto a certain standard of value; as, independently of the sweating which invention may place to the credit of the ingenuity of the Lombard merchants- all coins will, by wear or abrasion, become thinner, and consequently less valuable; and it is of the last importance, not only for the credit of a country , but for the easier regulation of commercial transactions, that the metallic currency be kept as nearly as possible up to the legal standard. Much unnecessary trouble and annoyance has been caused formerly by negligence in this respect. The gradual merging of the business of a goldsmith into a bank appears to have been the way in which banking, as we now understand the term, was introduced into England; and it was not until long after the establishment of banks in other countries-for state purposes, the regulation of the coinage, etc. That any large or similar institution was introduced into England. It is only within the last twenty years that printed cheque has been in use in that establishment. First commercial bank was Bank of Venice which was established in 1157 in Italy.

2.2 NEED AND IMPORTANCE OF BANK

The importance of banks can be summarized in to following categories: 5

2.2.1 For Economic Development: Banks can contribute to a countrys economic development in the following ways: Capital formation, Encouragement to entrepreneurial innovations, Influencing economic activity, Implementation of monetary policy, Promotion of trade and Industry

2.2.2 For Mobilization of Funds Bank accepts the saving. Provide loan to other who will be able to utilize the amount properly. Remittance of fund To provide Loan at Lower rate Issue of Letter of credit Agency Activities Miscellaneous Services

2.3 EARNINGS BY BANK Banks basically earn through the gap between the interest rate charged and received by the bank. It charges interest rate of the money lended as loan and pays interest on the deposits. Figure1 explains this concept:

Fig.1. How banks earn. 2.3.1 Growth of the Earnings The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.

Fig 2. Growth of banks earnings 2.4 GLOBAL TREND The banking industry worldwide is being transformed. The global forces for change include technological innovation; the deregulation of financial services at the national level and opening-up to international competition; and - equally important - changes in corporate behavior, such as growing disintermediation and increased emphasis on shareholder value. In addition, recent banking crises in Asia and Latin America have accentuated these pressures. The banking industries in central Europe and Latin America have also been transformed as a result of privatizations of state-owned banks that had dominated their banking systems in the past. The implications of these developments were considered by a small group of senior central bankers at the BIS during a two-day meeting in December 2000. Key data on banking systems in the emerging and advanced economies confirm these trends. 2.4.1 Forces for Change This section provides an overview of some of the main forces shaping the banking industry in the emerging market economies in recent years. The approach followed is eclectic and no attempt is made to assign weights to the different forces for change that are identified. The reason for such an approach is simple: banking, like other economic activities, is in the midst of rapid - many would argue historic - structural change driven 8

by the development and application of new information technology (IT). Because the core area of this technology is information processing - which also lies at the heart of financial intermediation - and because the development and use of IT are bound to continue (regardless of the movement in new technology stock indices), it is still far too early to grasp where exactly the banking industry is headed. At least three other forces underlie recent changes in the emerging economies. Banking industry: domestic deregulation and external opening-up of financial sectors, changes in corporate behavior and banking crises. 2.4.1.1. Deregulation and Opening-up to Foreign Competition Banking in the emerging economies was traditionally a highly protected industry, living off good spreads achieved on regulated deposit and lending rates and pervasive restrictions on domestic and foreign entry. For many years, there was little pressure to disturb this cozy and wasteful world. However, global market and technology developments, macroeconomic pressures and banking crises in the 1990s have forced the banking industry and the regulators to change the old way of doing business, and to deregulate the banking industry at the national level and open up financial markets to foreign competition. As a result, borders between financial products, banks and non-bank financial institutions and the geographical locations of financial institutions have started to break down. These changes have significantly increased competitive pressures on banks in the emerging economies and have led to deep changes in the structure of the banking industry. 2.4.1.2 Technology According to conventional wisdom, new information technology is not at present likely to impinge much on the development of the banking industry in the emerging economies, which remain technologically behind the industrial countries. For example the low level of penetration in most emerging economies means that the internet is not seen as a threat to traditional banks. Given the signs of a possible bursting of the e-banking bubble in the United States and Europe, some have also argued that the issue of electronic banking may go away before the emerging markets need to worry about it. This conventional view can be challenged on several grounds. As noted above, the major issue about new 9

IT is its impact on the processing of information, which is the very essence of the banking business. Perhaps the most significant innovation has been the development of financial instruments such as derivatives that enable risk to be reallocated to the parties most willing and able to bear that risk, thereby inducing more investment in real assets and fostering the development of banking and financial markets in general. The use of such instruments is not the preserve of industrial countries; with their increasingly sophisticated IT applications, banks in the emerging economies use new financial instruments daily in their transactions. Likewise, the potential for rapid development of commercial banking functions offered by alternative delivery channels such as ATMs, debit cards, telephone, internet and electronic banking should not be underestimated. 2.4.1.3. Changes in Corporate Behavior The spread of information technology has affected the banking industry both directly, through IT applications in risk management and marketing of financial products, and indirectly, through its impact on corporate behavior and the development of financial markets, especially in the area of financing new capital investments. This impact is most clearly felt in the case of technology firms, which are more or less forced to turn to capital markets to finance their projects because banks are not prepared to deal with the high level of uncertainty associated with the development of new technologies. However, disintermediation is not limited to new economy firms; it is also beginning to be felt in the more traditional old economy sectors. Bonds outstanding (in domestic and international markets combined) have risen strongly in almost all emerging economies over the past few years, and are now more important than borrowing from domestic banks in some of them . Many large firms can now raise funds by issuing securities more cheaply than they can borrow from banks. Indeed, many large companies can borrow more cheaply in the capital markets than the banks themselves, given their better credit ratings. Non-bank funding sources are not open to all companies, in particular small and medium-sized firms. Another implication of these developments is that commercial banks in bank-centered financial systems can no longer maintain their traditional, close relationships with corporate customers. 2.5 ORIGIN OF BANKING IN NEPAL 10

Nepal's first commercial bank, the Nepal Bank Limited, was established in 1937. The government owned 51 percent of the shares in the bank and controlled its operations to a large extent. Nepal Bank Limited was headquartered in Kathmandu and had branches in other parts of the country. There were other government banking institutions. Rastriya Banijya Bank (National Commercial Bank), a state-owned commercial bank, was established in 1966. The Land Reform Savings Corporation was established in 1966 to deal with finances related to land reforms. There were two other specialized financial institutions. Nepal Industrial Development Corporation, a state-owned development finance organization headquartered in Kathmandu, was established in 1959 with United States assistance to offer financial and technical assistance to private industry. Although the government invested in the corporation, representatives from the private business sector also sat on the board of directors. The Co-operative Bank, which became the Agricultural Development Bank in 1967, was the main source of financing for small agribusinesses and cooperatives. Almost 75 percent of the bank was state-owned; 21 percent was owned by the Nepal Rastra Bank and 5 percent by cooperatives and private individuals. The Agricultural Development Bank also served as the government's implementing agency for small farmers' group development projects assisted by the Asian Development Bank and financed by the United Nations Development program. The Ministry of Finance reported in 1990 that the Agricultural Development Bank, which is vested with the leading role in agricultural loan investment, had granted loans to only 9 percent of the total number of farming families since 1965. Since the 1960s, both commercial and specialized banks have expanded. More businesses and households had better access to the credit market although the credit market had not expanded. Nepal Rastra Bank was created in 1956 as the central bank. Its function was to supervise commercial banks and to guide the basic monetary policy of the nation. Its major aims were to regulate the issue of paper money; secure countrywide circulation of Nepalese currency and achieve stability in its exchange rates; mobilize capital for economic development and for trade and industry growth; develop the banking system in the country, thereby ensuring the existence of banking facilities; and maintain the economic interests of the general public. Nepal Rastra Bank also was to oversee foreign exchange rates and foreign exchange reserves.

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Prior to the establishment of Nepal Rastra Bank, Kathmandu had little control over its foreign currency holdings. Indian rupees were the prevalent medium of exchange in most parts of the country. Nepalese currency was used mostly in the Kathmandu Valley and the surrounding hill areas. Beginning in the 1960s, the government made special efforts to use Nepalese currency inside the country as a medium of exchange. It was only after the signing of the 1960 Trade and Transit Treaty with India that Nepal had full access to foreign currencies other than the Indian rupee. Prior to the treaty, all foreign exchange earnings went to the Central Bank of India. As a result of the treaty, the government had to separate Indian currency (convertible currency because of free convertibility) from other currency. In the context of Nepal having adopted an open economy, an excessive level of liquidity will initially exert reassure on the balance of payments and foreign exchange reserve and subsequently cause adverse effects on the domestic price situation. Thus, it will be necessary to maintain a balanced monetary position to attain the economic growth rate envisaged in the plan. The sustainable economic growth can only be achieved if the monetary balance is maintained.

2.6 COMMERCIAL BANKS

A commercial bank is a financial institution which collects saving from many persons and institutions and provides credit or loan facility to different industrial and commercial business. Commercial banking business consists of changing cash into hank deposit and bank deposit into cash, transferring bank institution to other, giving bank deposit in exchange for Cheque, Bills of exchange, government securities etc. Nepal Bank Limited established in 2013 BS is the first commercial bank in Nepal. Commercial banks perform various functions. Among them accepting various types of deposit is the main faction of commercial banks.

S.No 1 2 3 4 5 6

Name of Commercial Bank Nepal Bank Ltd Rastriya Banijiya Bank Nabil Bank Ltd. Nepal Investment Bank Ltd. Standard Chartered Bank Himalayan Bank Ltd

Date of Establishment 1937/11/15 1966/01/23 1984/07/16 1886/02/27 1987/01/30 1993/01/18

Head Office Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu 12

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Nepal SBI Bank Ltd. Nepal Bangladesh Bank Ltd. Everest Bank Ltd. Bank of Kathmandu Ltd NCC Bank Ltd Lumbini Bank Ltd. NIC Bank Ltd Machhapuchhre Bank Ltd. Kumari Bank Ltd. Laxmi Bank Ltd Siddhartha Bank Ltd. ADBL Global Bank Ltd. Citizens Bank Int Ltd. Prime Commercial Bank Ltd Sunrise Bank Ltd. Bank of Asia Ltd DCBL Bank Ltd. NMB Bank Ltd. KIST Bank Ltd JANTA Bank Nepal Ltd Mega Bank

1993/07/07 1993/06/05 1994/10/18 1995/03/12 1996/10/14 1998/07/17 1998/07/21 2000/10/03 2001/04/03 2002/04/03 2002/12/24 1968/10/19 2007/01/02 2007/06/21 2007/09/24 2007 2007 2001/02/01 2008/05 2009/05/07 2010 2010

Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Chitwan Morang Pokhara Kathmandu Birgung Kathmandu Kathmandu Parsa Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu Kathmandu

Table 1: Lists of Licensed Commercial Banks in Nepal (till 2010) CHAPTER 3

INTRODUCTION OF ORGANIZATION
3.1 INTRODUCTION OF BOAN
Bank of Asia Nepal Limited is the 22nd commercial bank of Nepal. It is incorporated under the companies Act 2063 as 'A' Class financial institution. It started its full-fledged commercial operations from 12th October 2007 from its registered office at Tripureshwor, Kathmandu. The bank has shown enormous growth in just 2 years and 11 months of time from its operation which is proved by its latest financial highlights as shown below: Brief highlights of the financial position of the Bank as of mid-July 2010 are as under: Deposits Figures in NPR Million 13

Deposit Loan and Advances Investments Operating profit before Provision Net Profit

12480 11107 2415 371 208

TABLE 2: Financial Highlight of BOAN BOAN provides a full range of commercial banking services through its outlets spread across the nation. Moreover, BOAN has a good name in the market for its highly personalized services to the customers. In an economy, driven by appetite for success BOAN is GROWING TOGETHER by creating, unique and new products and helping customer grow along with it. The bank is founded by very good entrepreneurs and it understands the need of growing economy. A team of seasoned banking and management professionals have dedicated themselves to establishing an institution determined to cater the needs of all, be it small or big. The bank believes that the customers aspirations are their benchmark and they will always be GROWING TOGETHER as their motto. BOAN is managed by a team of experienced bankers and professionals having proven track record, can offer what customers are looking for. BOAN is sure that customers choice of a bank will be guided among other things by its reliability and professionalism. BOA has 29 branches as of date. The branch has been established in some of the major cities of Nepal so as to reach almost every corner and maximum customers. Through its branch network, RBB has been contributing to Nepal's economic development by providing banking services throughout the country. The head office of the bank is located in Tripureshwor in Kathmandu. 3.2 CORPORATE, VISION AND MISSION OBJECTIVE OF BOAN 3.2.1 Vision Statement To be one of the preferred banks by growing together with all the stakeholders 3.2.2 Mission Statement 14

To deliver a wide range of prompt and quality services in order to consistently achieve sound performance through collaborative partnership at all levels, high standards of governance, optimization of information technology and effective network. 3.3 STRATEGIC OBJECTIVE OF BOAN To develop a customer oriented service culture with special emphasis on customer care and convenience To increase our market share by following a disciplined growth strategy To leverage our technology platform and open scalable systems to achieve costeffective operations, efficient MIS, improved delivery capability and high service standards 3.4 To develop innovative products and services that attracts our targeted customers and market segments To continue to develop products and services that reduces our cost of funds To maintain a high quality asset portfolio to achieve strong and sustainable returns and to continuously build shareholders value To explore new avenues for growth and profitability FOCUS

The main objective in the near term would be to protect revenue lines by providing solutions to the customers through value added and structured products at competitive pricing. The bank focuses on the following plans: The bank has a Vision It focuses on product quality and service excellence which has helped it garner the appreciation of national organizations It focuses on ensuring that their corporate responsibility aspirations are aligned with their business strategy It is maintaining good credit quality portfolio for tourism related industries It focuses on the Consumer Banking

15

The bank uses software developed by Infosys, India (Finacle) for the operation of all the major activities of BOAN. For immediate communication and problem solving among staffs in the inter branches as well the departments BOAN uses the facility of spark. Also branches of BOAN are inter-connected through Finacle and i-zone as a part of it where all the recent activities and news related to bank are updated daily.

3.5 CAPITAL STRUCTURE: The capital structures of BOAN consist of:

30% p rom otors g eneral p u b lic 70%

Fig 3: Capital structure 3.6 PRODUCT AND SERVICE PROVIDED BY BOAN 3.6.1 DEPOSIT PRODUCT 1. Dhanbarsa Fixed Deposit 2. Dhanbarsa Bachat Khata 3. BOA Samunnati Muddati 16

4. BOA shareholders Deposit 5. BOA Nari Shakti Bachat Khata 6. BOA 50+ 7. BOA Karmachari Bachat Khata 8. Current-Call Deposit 9. Fixed Deposit 10. Sulav Bachat 11. Sambridhi Bachat 12. Little star 1. Dhanbarsha Fixed Deposit:

This product is targeted to capture the deposit of both individuals as well as institutions saving by providing high interest and monthly interest payment. Minimum balance Time period Interest rate Rs.100000 1-3 years 12% monthly basis

TABLE 3: BOA Dhanbarsa Fixed Deposit Special Features 2. Free SMS/Internet Banking/ ABBS facility/50% discount on Locker Security Deposit Nepal telecom Mobile/ Landline bill payment facility BOA Dhana Barsa Bachat

The interest rate of this product has positive relationship with the amount of the fund customer deposit in this account (i.e. higher the deposit amount higher will be the interest Amount Up to NPR 100,000/Above NPR 100,000/- to NPR 250,000/Above NPR 250,000- to NPR 500,000/Above NPR 500,000/- to NPR 1000,000/% P.A on Daily Basis 6.00% 6.50% 7.00% 7.50% 17

Above NPR 1000,000/- to NPR 2500,000/Above NPR 25,000,000/-to NPR 5000000/Above NPR 5000,000/-to NPR 10,000,000/Above NPR 10,000,000/ to NPR 20,000,000/Above NPR 20,000,000/Table 4: BOA Dhanbarsa Bachat

8.00% 8.50% 9.00% 9.50% 10.00%

General Features: The general features of BOA Dhanbarsha Bachat are as follows:Minimum Deposit: Rs. 5000 Special Features: The special features BOA Dhanbarsha Bachat of are as follows: 3. Interest will be calculated on a daily balance maintained in the a/c Free ATM Card (*free-1st year annual fee)/ NTC bill payment service Free SMS/Internet Banking/ inward remittance/ ABBS facility/ 50% discount on security deposit locker/ Unlimited withdrawal/deposit Cheque book on demand (10 leaves per cheque book) Account statements on demand BOA Samunnati Muddati:

This product is fixed deposit with modification on the previous fixed deposit product launched which target towards the customer group who prefer high interest and ready to sacrifice the facility of withdrawing money on demand. General Features: The general features of BOA Samunnati Muddati are as follows:Minimum Balance Interest Rate Maturity period NPR 100,000.00 10.25% 1 year TABLE 5: BOA Samunnati Muddati 18

Special Features: The special features BOA Samunnati Muddati of are as follows: 4. Free SMS/ internet banking/ Inter-banking transaction 50% discount on Locker Security Deposit BOA Shareholder's Account:

This product is intended for BOA shareholders and their family members. This product is designed for customer who owns the share in the bank. In order to open the account of the family member shareholders are required to produce their original BOA share certificate or allotment advice to the bank for verification along with self-declaration of family member relationship. General Features:The general features of BOA Shareholder's Account are as follows:Minimum Balance Interest Rate Interest Capitalization NPR 1,000.00 7% p.a. On Daily Balance Quarterly TABLE 6: BOA Shareholders Account Special Features: The special features of BOA Shareholder's Account are as follows: 5. On demand Cheque book/ account statement Free inward remittance/ Good For payment / ATM card/ SMS-internet banking Free ABBS facility/ Unlimited withdrawal-deposit BOA Nari Shakti Bachat Khata:

This product is targeted towards the female population of society. This product is one of the successful products of BOA as it was able to generate major retail deposit to the bank due to its high interest. General Features:The general features of BOA Nari Shakti Bachat Khata are as follows:-

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Minimum Balance Interest Rate Interest Capitalization

NPR 1,000.00 7% p.a. On Daily Balance Quarterly TABLE 7: BOA Nari Bachat

Special Features: The special features of BOA Nari Shakti Bachat Khata are as follows: 6. On demand cheque book/ demand account statement/ Unlimited withdrawaldeposit Free inward remittance/ SMS/internet banking/ ABBS facility Free ATM card and Unlimited withdrawal-deposit/ Good For payment BOA 50 +:

This product is targeted to the senior citizens who are of age 50 and above. All residential individuals in the age group of 5 years and above are eligible to open this account. In case of joint accounts, one of the applicant has to be a senior citizen and his/her age 50 and above. General Features: The general features of BOA 50 + are as follows:Minimum Balance Interest NPR 100,000.00 Option 1: 8.50% (Monthly Interest Capitalization) Option 2: 9.00% (Interest Payment at Maturity)

Eligibility:

50 ears and above TABLE 8: BOA 50+

7.

BOA Karmachari Bachat Khata:

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There are still a large number of Service- Holders in both government sectors but also in the private sector. It caters service to this section of people BOA Karmachari Bachat Khata. General Features:The general features of BOA Karmachari Bachat Khata are as follows:Minimum Balance Interest Rate Interest Capitalization NPR 1,000.00 5.5% p.a. On Daily Balance Quarterly

TABLE 9: BOA Karmachari Bachat khata Special Features:The special features of BOA Karmachari Bachat Khata are as follows: On demand Cheque book/ Account statement Free inward remittance/ ATM card/ Good for payment Free SMS/internet banking/ ABBS facility 25% discount on DD issuance/ 50% discount on security deposit locker

8. Current-Call Deposit: This product is focused towards providing additional benefit to the customer especially business client by providing return to their savings. Current account does not provide any interest and NRB directives restricts to open saving accounts for the company, Call account is introduced to provide the additional benefit to such clients by its unique feature. After business hour all the balance over minimum balance (i.e. NPR 10,000 in case BOAN) from current account will be automatically transferred to the call account and next working day again the same amount will be automatically transfer to the current account. Hence the customer will be able to earn the interest in current account by opening a call account. The features of Current-Call Account are as follows: Up to 7.50% 21

Any Branch Banking

9. Fixed Deposits: This product is targeted towards the customer group who prefer high interest and ready to sacrifice the facility of withdrawing money on demand. Further this product allows customer to diversify their portfolio to best suite their investment plan.

This deposit provide following interest rate according to the time period as given below: Time period 1 Months 3 Months 6 Months 1 Year - 2 Years Above 2 Years 5 Years Above 5 years Interest Rate 5.00% 6.00% 7.00% 8.00%-8.5% Upto 9% Negotiable TABLE 10: BOA Fixed Deposits

10.

Sulav Bachat:

This product is mainly targeted towards the general public where the minimum balance is not the limitation. The general features of Sulav Bachat are as follows:Minimum Balance Interest Rate Interest Capitalization: Zero 5.0% On Daily Balance Quarterly TABLE 11: Sulav Bachat

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Special Features: The special features of Sulav Bachat are as follows: On demand Cheque book/ Account Statement Free inward remittance/ ATM card/ SMS-internet Banking/ ABBS facility Unlimited withdrawal/deposit Appropriate for stock market investment

11. Sambridhi Bachat: This product is initially lunch to focus towards the interest sensitive customer and provides high interest rate for deposit amount above NPR 50000. General Feature:The general features of Sambridhi Bachat are as follows:Minimum Balance Interest Interest Capitalization Zero 6.0% p.a. On Daily Balance (Above NPR 50,000.00) Quarterly TABLE 12: Sambridhi Bachat Special Features: The special features of Sambridhi Bachat are as follows: On demand Cheque book/ account statement Free inward remittance/ ATM card/ SMS-internet Banking/ Good for payment/ABBS 25% discount on TC issuance / Unlimited withdrawal/deposit

12. Little Star: This product is targeted to the customer group with children by creating the need of savings for their children future. 23

General Features: The general features of Little Star are as follows:Minimum Balance Interest Rate Interest Capitalization Zero 6.0% p.a. On Daily Balance Quarterly TABLE 13: Little Star Special Features: The special features of Little Star are as follows: On demand Cheque book/ account statement Free inward remittance/ ABBS facility/ SMS/internet banking Unlimited withdrawal/deposit

3.6.2 SERVICE PROVIDED BY BOAN 1. I-touch- web based service:

It is also called internet banking. The customer can make the i-touch account for free after being the customer of BOAN. Itouch is our full-fledged Internet Banking application which allows our customers (account holders) to do the following banking activities through the Internet. Hence can see the account balance and do other kind of below mentioned activities: Special Features 2. NTC Post-Paid/Pre-Paid mobile bill payment Fund Transfer Balance Inquiry Full/Mini Statement Account Summary Cheque Stop Payment M-ALERT:

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This service is also provided by BOA for free. After taking this service the customer can make the balance enquiry through one SMS. Subscription to this service allows customers to receive SMS notifications to their mobile phone of debit and/or credit transactions in their account. 3. E-ALERT:

Subscription to this service allows customers to receive email notifications of debit and/or credit transactions in their account. It is an e-mail based service.

4.

Itouch - Mobile Banking:

Itouch is our full-fledged Mobile Banking application which allows our customers (account holders) to do the following banking activities through the SMS. 5. Funds Transfer to another account of the Bank NTC Prepaid Recharge NTC Post Paid Mobile Bill Payment Enquiry functions eSewa Services:

Bank has tied up with eSewa Payment Gateway to give eWallet services to the Customers and noncustomers. Anyone can sign up the services with eSewa online using their website and get the registered ID of eSewa. Now anyone who has account with the bank can load the amount into that ID and do the transactions such bill payments, online shopping, and do interbank fund transfer among member banks of eSewa. 6. Funds Transfer to another account of the Bank NTC Prepaid Recharge NTC Post Paid Mobile Bill Payment Enquiry functions Safety Lockers: 25

Safe deposit lockers are strong metal cabinet kept inside vault room of a bank with the purpose of renting for keeping their valuables. We have seven different sizes of Lockers, the charges depends on the size. 7. Debit Card:

BOA Easy Cash Card service is a third party services from Smart Choice Technologies P. Ltd. (SCT). Card can be used at various ATM and PoS locations under the network of SCT. There are more than 200 ATMs and 1000 PoS terminals and 1000 ATMs of Punjab National Bank in India where SCT debit cards are accepted. BOA Easy Cash Card is FREE and available instantly from all our branch locations. 8. BOA - Life Insurance:

BOAN also provides the service of life insurance of NLIC and the insurer can pay the premium through the branches of BOAN. Special Features 9. Any Life Insurance product of NLIC can be purchased from any of the branches. Easy Procedure. Renewal premiums can be paid automatically through account maintained Remittance and Travel Services

9.1 Foreign Currency Drafts: We issue/collect foreign currency draft for payments made to foreign parties in the following currencies - Indian Rupee (INR), US Dollar (USD), Pound Sterling (GBP), and the EURO (EUR) 9.2 SWIFT Transfers: SWIFT transfers are inter-bank transfers that can be used make payments to an account of a local or foreign beneficiary electronically. Customers (account holders) can receive 26

payments from foreign banks using our SWIFT facility. The 8-character swift code of our bank is BOALNPKA

3.7 SWOT ANALYSIS None of the organizations is perfect in each and every way. Here are some weaknesses and threats of the organization. It may have lots of strength to be proud of but besides with some weakness and threats as well. And the organization does not remain same forever there will be lots of opportunities in order to expand the transactions.

STRENGTH The Bank has introduced Sulav bachat khata which provide 5% interest in daily balance with the minimum balance zero. The bank provides any branch banking to make it easier for customer The bank provides services like itouch or internet banking as a special service The bank also provides fixed deposit Dhanbarsa with the interest of 12%

WEAKNESS The bank have very less number of ATM booths The bank does not provide credit card services

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OPPORTUNITIES A lot of people deposit their fund in this bank due to its skill in attracting people by adopting attractive policies like high interest rate and prompt services Staff can perform their work more efficiently with the help of computers. The environment of the bank is sound which helps to enhance its stall bar its better profitability. Due to the increasing demand of customer loan.

THREATS The economic condition of country is deteriorating. The increasing number of competitors in offering same product. Unstable regulations and policies of NRB

Chapter 4 ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED

My internship was set at the Bank of Asia Nepal Limited Dillibazar Branch. It recently came into operation. BOA Dillibazar had in total three departments namely CSD CASH REMITANCE CREDIT(Branch Manager)

4.1 Activities inside the Branch (CSD of BOAN Dillibazar Branch)

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I started my internship on 15th may 2010 to 16th July 2010.I worked as a part of the Customer Service Department of General Banking section of the bank for 7 weeks and also I was send for the marketing purpose for last 2 weeks. The name of the department itself suggests its own activity. This is customer oriented department, which mainly focus on providing services and facilities to the customers and potential customers of BOANL. In this section I worked under the Assistant Officer. In this department I was supposed to help my in-charge. My job was that to help the client by informing them about the products, which products give what types of facility, what papers they have to submit, how to fill the application form know their feedback . They did not give me serious types of work. They gave me only those types of work in which if I made fewer mistakes that could be corrected easily. It is the department, which provides day-to-day services to the customers. It opens new accounts and provides Cheque and maintains the opened account and performs various other functions. The activities and works done during the internship period were guided, and information regarding CSD work procedure and practices were provided by the staffs of CSD department. In this part of the bank, Following are the in brief list of activities that were assigned to me by the staffs during the period of internship in CSD: Opening and closing the account of the customers. Providing balance certificate and bank statement to the customers. Issuing Cheque books, Debit cards to the customers. Providing excess to e- banking facility to the customers. Maintaining stationery and petty cash register Fixed deposit opening. Interaction with customers about various products and schemes offered by the bank Handle the customer queries as effectively as possible Complaints of customer Convince customers to go for high deposit schemes. Convince them to open an account with certain minimum balance requirement rather than zero balance Filing and maintaining documents of the customers 29

As at the time of our internship the BOAN was offering right share so I had to help customer fill the form and requirement procedure and recording those forms.

4.2 IN DEPTH DESCRIPTION OF JOB PERFORMED 4.2.1 Account Opening This section opens accounts. Selection of customer is very important for the bank because banks success and failure largely depends on their customers. If customer is bad, they may create fraud and forgery by their account with bank and thus destroy goodwill of banks. So, this section takes extreme caution in selecting its customer base. In the customer service section, basically I learned to open the following types of accounts. 4.2.1.1 Savings Savings accounts are for individual savings and this account is necessary to open Deposit Pension Scheme (DPS), also required for ATM card holders also for issuing Cheque.

4.2.1.2 Current Current accounts are basically for companies, but sometimes this account can be open individually for huge amount of money [basically for the valued customers]. The account opening officer mainly performs the following tasks. At first she requests the customer, which account he/she/they wish to open. Then she describes the procedures to open the account. If the customer meets up with the requirements, then the account opening officer opens an account with the help of the Banks computerized system. 4.2.1.3 Fixed A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled

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over for another term. Generally speaking, the longer the term the better the yield on the money. Firstly the Types of Accounts i had to open and maintain in the BOA Dillibazar Branch were as follows:

SAVING ACCOUNTS MAINTAINED Name of Account Sulav Bachat Characters Generally can be opened by all Requires no minimum balance with maximum interest Generally for infants or childrens with minimum balance zero Unlimited withdrawal and deposit

Little star

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Dhanbarsa Khata

Bachat

Encourage people to bring out money stored at homes provides

BOA Account BOA Nari Bachat BOA Bachat Payroll Account Karmachari Shareholders

Requires minimum balance and the interest rise as the amount of deposit rises. Only the Shareholders of BOAN can open this particular account With a minimum balance of rs.1000 it provides 7% interest Specially designed to cater all the women in Nepal Also provides 7% interest with minimum balance of 1000 Generally for all the working professional as well as their family members Provides 5.5% interest with minimum balance of Rs.1000 Employees of organization or institution can produce the product

With the minimum balance of Rs.1000 it provides 7% of interest rate

TABLE 14: Saving Accounts Maintained

Current and Call Accounts Current Account

Generally opened by businessmen or client No interest is provided for deposited amount For daily withdrawal or deposit Special account for the clients who have opened current account in BOAN and wants on the amount. Requires minimum balance of Rs.10,000 and provides return of 7.5% TABLE 15: Current and Call Account Maintained 32

Call Account

Fixed Account
Dhanbarsa Fixed Deposit Can be opened by both individual and institutions that have idle money with them and wish to receive high interest rate. Provides higher rate of interest i.e. 12% in minimum balance of Rs.100000 calculated on per day balance. TABLE 16: Fixed Accounts Maintained

Following is an explanation of the regular steps involved in opening a New account in BOANL

4.3 ACCOUNT OPENING PROCESS:

Step 1
Asking the prospective customer what type of account is desired to be opened and providing him/her/they the particular account form

Step 2

The form is filled up by the applicant himself / herself Two copies of passport size photographs from individual are necessary Applicants must submit required documents i.e. citizenship certificate (in case of little star the birth certificate of the child and citizen of the

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nominee) Application must sign specimen signature sheet and give mandate necessary and also mention the nominee compulsorily As per the KYC rule of central bank the page of form full of the information about the customer must be filled Introducers signature and accounts number must be verified The application form is accepted and verified whether the form is correctly filled and all required information about the client is received or not Minimum BOAN Bank balance is deposited (zero balance in case of Sulav Bachat, Nari Bachat and Little Star) Account is opened using a software called FINACLE and the account number is given to the customer TABLE 17: Account Opening Process if

Step 3 Step 4 Step 5

Deal the customer Customer Ask what he/she wants according to their need/ tell about the rules and regulation

Check the form and paper submitted by the customer

After providing all inputs it gives us the account number and customer Id

Give computer input of used purpose) the necessary (finacle for is this fields

Take the authorized Scan the signature for further use Update the form person signature and file the form 34

Give the account number to account holder and the account opening is completed

Fig 4: Steps of account opening are explained in the following chart

Special Caution on the documents from the Account opener of the following types Partnership Firm Partnership deed must be taken Mandate from the partners is essential indicating who will operate the account Signature must be done by both partners

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Company Account

Identification and Passport size photo of authorized signatories Firm registration certificate Latest / renewed tax/pan certificate Obtain MOA and AOA Board resolution to open account in BOA and authority to borrow from the bank. Resolution should clearly state the authorized persons name who will operate the account

Other account

Signature of all the BOD members Normal procedure as described above to follow Constitution/ by law as per the nature of business to be obtained

Account opened by Illiterate person

Satisfy the acceptability of the customer Obtain both right and left hand thumb print on the signature card instead of the signature Special instruction should be noted in such accounts that the person opening the account is an illiterate person

For every withdrawal the account holder him/herself must be present at the bank counters and affix thumb print on withdrawal slip

TABLE 18: Documents required while opening such accounts

4.4 PREPARING AND ISSUING THE CHEQUE BOOK: After opening an A/c, the client first need the deposit slip and then needs the Cheque book. A new customer comes to collect the Cheque Book and it is verified whether they are the same person who signed the requisition form or not while opening the account. The old clients give a requisition for a Cheque book. The requisition is one kind of document for the bank. Preparing and issuing Cheque book for new account holder 36

The account holders sign is taken in requisition for Cheque The requisition of whole day is at the end of the day first recorded in the Cheque delivery register The other requisition is filled with the name, date and a/c number at the back and name and account number is written in the cover page. The number of the Cheque to be issued (From and to), name of the a/c holder and date is written in Cheque book After this the Cheque is verified with the in charge of cash department The detail is then entered in Finacle and Cheque is printed in CSD At last requisition is placed in the middle in case of Cheque required for next time and the cover is attached to it by writing the name and account number at front.

And when the account holder comes to receive the Cheque and signs the requisition the sign done the day before is verified If the sign matches the holder signs in Cheque delivery register and the Cheque is delivered for new customer.

In case of old requisition, after getting the requisition The officer verifies the signature from the Finacle Then verifies the previous Cheque book records- if it is active or encashed, how many leaves the client needs and entry is done in the Cheque register book Seal the A/c number on the leaves of the Cheque book Write the A/c holders name and the Cheque book number on the requisition page Write Cheque book number on the old requisition page Then take the A/c holders or the authorized bearers signature in the registers book and deliver the Cheque book to the A/c holder (same as above) After that, the officer gives posting of the Cheque book; else the A/c holder cannot place the Cheque in the cash. They post in Finacle after verifying of Cheque by in charge of cash department. Fig 5: Steps of Cheque issuing are explained in the following chart 37

Requisition for Cheque book

Verify signature of the account holder

Verify previous Cheque book from the system record

Check the form and paper submitted by the customer

Seal the account number on the pages

Give the entry in the register book

Take signature of the a/c holder in the requisition and the delivery book and deliver the Cheque

Post the delivery of the Cheque in the system AND DELIVERY TO CUSTOMER 4.5 ATM CARD REGISTRY The CSD of BOANL provides the ATM card to the customer for free with no charges in the beginning. The process of providing the ATM is: The customer of BOAN comes for ATM A customer is given to fill the form requesting for ATM After complete filling of the form, the form is then submitted to the CSD officer they verify the signature of the customer 38

The Atm card is issued to the customer and is send to cash department to take the PIN number

4.6 BOOKS MAINTAINED The CSD of BOAN Dillibazar Branch maintain different recording books namely: Books Stationery Book Cheque Book Register Purpose It keeps all the record of the stationery purchased, received form the head office etc. Cheque delivered in the entire day is registered in this book with the sign taken of Atm Card Register Accounts Register the respective account holder. The ATM card issued along with their number is recorded in this Book The separate register for each product account is maintained and updated daily in register as well as in excel. TABLE 19: Books Maintained

4.7 CUSTOMER HANDLING Customer handling is the main basic function of the customer service department. Most of the impression about the bank is derived from this particular department by the behavior of the staffs and the information the prospective customer gets from here. Even difficult customers can be turned into satisfied clients with good Customer Service Management. Therefore the in charge of CSD must be very cautious as to not irritate the customer and properly give him/her all the ideas which will help them to open an account and to develop good idea about the Bank and also must welcome all the

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complaints and suggestion by the customer. The things that must be kept in mind while handling customer The queries of the customers Consult with customers about their need of product or service needs or their wants. Helping them with which account will be suitable for them to cater their needs Investigate what products and services the customer will need even if they may not know what they need. Probing as to what they want and present what they feel they may need dependent on their needs and wants Receive the call and answer the customer as soon as possible Must keep connection with the customers through mail, phone or e-mail. The frequency may vary but every customer should receive a 'touch' at least once a month or so Role as middle liaison between the main organization and the customer Listening to their problems related to the banks products and services Treat every complaint seriously, and every complaint as a valued customer with an important and significant concern Apologize for the inconvenience the customer feels. This recognizes and acknowledges the customer's feelings and concerns without admitting fault or assigning blame in anyway Know your customers. Keep all the important detail about the customers so that can also be used at the time of customers anniversaries, or birthdays is great. Simple cards or gifts can do amazing things and make the customer feel important even when they are not taking any other service etc. Use polite language and tone and always remember to say appreciative words as Thank you and visit again. Appreciate customers. 4.8 ACTIVITIES LEARNED BY ME: I learned to operate the photocopy machine and fax machine Learned a little bit about finacle

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As the BOA was issuing right share at the time of my internship period I got to help the customer with filling the form and other important detail also entering the detail of right share into excel

Also updating the accounts opened in excel Learned to scan the photos and documents in Finacle

4.9 RESEARCH DURING MY MARKETING PERIOD As I was sent for marketing for the last two weeks of my internship period in BOAN Dillibazar Branch. During the marketing period I informed the possible local customer about the product and make few questionnaire and done the finding about what different people in different profession search in the product and service 4.9.1 Research Design This study mainly involves use of primary data such as interviews and market research. Such data and information has been processed through various processes like tabulating, calculating and research have been interpreted in the form of diagram for a clear view.

4.9.2 NATURE OF DATA COLLECTED Qualitative data (Internal Information) 1. Primary

Unstructured interview with the executive of BOAN Branch manager Mr. Yug Basnet In charge Mr. Naresh Bhattarai 41

2.

Secondary Internal circular of BOAN regarding various policies

Quantitative data (External Information) 1. 2. Primary Questionnaires with existing and possible customer Secondary Financial report and annual reports of BOAN

4.9.3 Sample I took a sample size of 50 respondents as it was a limited time period and limited area. 4.9.4 Presentation and Analysis of Data It is done to make the data understandable and simple.

DATA ANALYSIS AND INTERPRETATION S.no 1 2 3 4 Target group Business man Housewifes Students Service worker Total No of respondents 15 15 15 15 60

TABLE 20: Data Analysis and Interpretation

Factors that is considered by the Businessman while opting for a service from the bank 42

3% 5% 12%

B usinessm an
40% BANK COMMISSION CUSTOMER SERVICE INTEREST RATE

20%

LOCATION RELIABILITY ATM 30%

Fig 6: Factors considered by Businessman while opening account SOURCE: Interview with general public through questionnaire (see annex 4)

Arey ou satisfied withthe serv ice

will you switch the service

25% YES no 75% 80%

20% YES no

Fig 7: Satisfied or will switch the service? Factors to be considered by the HOUSEWIFE while Opening an Account

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H OUS EWIF E
0% 5% 10% 10% BUSINESS COMMISSION CUSTOMER SERVICE INTEREST RATE 25% LOCATION 50% RELIABILITY ATM

Fig 8: Factors considered by Housewife while opening account SOURCE: Interview with general public through questionnaires (see annex 4)

Areyou satisfied with the service

Will you switchthe service

15% YES no 85% 60% 40% YES NO

Fig 9: Satisfied or will switch?

Factors Considered by Serviceman while Opening an Account 44

S ERVICE MAN
20% 0% 10%

BANK COMMISSION CUSTOMER SERVICE INTEREST RATE

5% 40% 25%

LOCATION RELIABILITY ATM

Fig 10: Factors considered by Serviceman while opening account SOURCE: Interview with general public (see annex 4)

Areyou satisfied with the service

40% 60%

YES no

Fig 11: Satisfied or will switch the service?

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S TUDENT
5% 25% 20% BANK COMMISSION CUSTOMER SERVICE INTEREST RATE 5% 10% 35% LOCATION RELIABILITY ATM

Fig 12: Factors considered by Student while opening account SOURCE: Interview with general public (see annex 4)

Areyou satisfied with the service

will you switch the service

30% YES no 70% yes no

Fig 13: Satisfied or will switch the service?

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Reasonsfor not switchingthebank

CLOSING CHARGE TIME CONSUMING LOYALTY CREDIBILITY

Fig 14: Reasons for these people to not switch the bank SOURCE: Interview with general public through questionnaire (see annex 4)

4.10 FINDING AND INTERPRETATION OF RESEARCH

From the above research and finding I came to know the factors in choosing different product by people of different lifestyles. 4.10.1 FINDING We can see from above pie chart that the Businessman gives less priority to the ATM but more priority to the banking commission, customer service and interest rate. Whereas the housewifes and the service person gives very less or zero priority to the business commission. Housewifes gives more priority to the interest offered and the location as well as to the customer service. The service person also gives maximum priority to the interest rate and then to location and lastly to ATM.

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Students seem to give more priority to the interest rate and ATM as well. Their third priority happens to be the customer service of the bank. They also give a very little priority to the banks commission. It seems the entire above person will switch the bank if got the better opportunity but there are these various factors that are stopping them to do so. They are: credibility of the bank, closing charge, time consuming and loyalty toward the bank. 4.10.2 INTERPRETATION As it is seen that all sector of people want more interest rate the bank should provide more interest in saving deposits and also keep providing free ATM along with the other ATM facilities. It must open the ATM booths on main areas that are accessible. As student seem to be very less interested in the location therefore the bank should target the youth segment by offering more better product schemes. The collection of money from door to door seems better option to increase the housewives. Also the businessman and the households do not seem they will change the service and are fully satisfied with the bank. Whereas the students and the service man wants to change but couldnt change because of the time consuming, closing charge, and loyalty toward the bank 4.11 ANALYSIS AND FINDINGS ABOUT BOAN 1. Good Image:

BOAN has the benefit of having better reputation and image because of continuously providing better service and products to the people. People feel lesser risk for investing their money with the bank. The bank has proved itself in these three years of operation. 2. World Class Services:

The bank is providing its customers world class and excellent services. This is the main reason for the growth of the bank. 3. Coordination: 48

There is a very good coordination between the staffs of the BOA Dillibazar Branch that increase the performance of this branch and also provides officials with the opportunity to communicate discuss and deals with different situations as they arise. 4. Employee Behavior:

The employees of BOAN are very committed to their work. They are very hard working and punctual but some of them have problems with the environment of the bank and they feel that the branch environment is not very encouraging The performance of BOAN it is considered that the whole bank is contributing a lot towards the industrial development and capital formation in the country. As it is exhibited from the data regarding the banks financial performance that the bank is sharing major banking business of the country. Further the policies and schemes as are introduced and carried on by the bank are of great source of help in industrial and trading growth. So far as my own observations are considered I have also learnt some disciplinary wrong practices on the part of staff of the branches. 1. No Quality in Attitude:

The attitude of the bankers with all of their customers is not the same; they pay more attention and good service to some of the customers and neglect a major portion of them. Some of the customers approach to the bank officials and get their work done before others; it is not a good practice. 2. No Proper Guidance:

There are many customers who dont know how to fill Cheque, pay-in-slip, application form, etc. They waste a lot of time of the bank and some of the staffs are not very cooperative in this area.

4.12 PROBLEM SOLVED IN BOANL

During the period of internship, the tasks and activities performed under the customer service department has been analyzed. Also as it was a recently opened branch and not 49

with many departments many problems were faced. Following problems regarding this department were solved: When the staffs of Customer Service Department (CSD) were on leave, it was an opportunity to handle the tasks of the concerned staff from which the other staffs of CSD were benefited. The staffs of CSD specifically utilized their full time concentrating on their own job. In this way, internship training was proved fruitful and commendable. The part of absent staff's activities like handling frequent customers, helping them to open new account and providing different services to the customers were done in CSD. The books maintained had many problems like some of the stationery brought and used was not recorded and purchased and used so it was solved by correcting. During the account opening many signatures were left undone that was solved by me by taking them to the customer if possible or by calling the customer. As I was local to the area many map that had to be made in KYC section was helped by me. During my short period of marketing i suggested the existence of the bank which was unknown to many possible customers.

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CHAPTER 5 CONCLUSION, LESSON LEARNED AND RECOMMENDATION

5.1 CONCLUSION
As per the requirement of the course of study of BBA 8th semester I have completed my internship form BOAN, Dillibazar Branch, Kathmandu. By far the BBA has given me the needed theoretical knowledge but this internship provided me to understand how the real world works and gain real life experiences. It helped me to enhance my interpersonal as well as the communication skill. The basic objective of this report is to convey the learning of internship of BOAN. This report is mainly focused on CSD practices of BOAN. Knowledge and information related to Customer service was gained during the period of internship. Ultimate things that have been known during the internship period of CSD are summarized as below: 1. During the period of internship in Customer Service Department (CSD), countless customers seem to appear to open the new account called Sulav Bachat Khata with zero balance also the fixed deposit account called dhanbarsa muddhati 51

khata providing higher interest of 12%. BOAN becomes success to attract the customers by introducing these accounts. 2. It was so difficult to handle the several customers at once. The Staffs of CSD are very hard working and can perform their job precisely. Also the guards were trained to manage the rush of customers and keep them in line. 3. The Staffs of BOAN at Dillibazar Branch are satisfied with their job and work as they are frequently confronted with various challenging works and the upper level employee was always ready to help the lower level staffs on various works. 4. The bank is well equipped with the well experienced manpower, with exceptional capabilities and insight as they were provided training earlier in KFA institute. 5. Being operated for shorter time period( i.e. Dillibazar branch came into operation from baisakh 13th) the Dillibazar branch of BOAN was soon popular in the local area of operation and was able to gain the confidence of people with good marketing as well as the new and unique products. 6. The bank came up with various modifications in regular services like Debit cards by providing them for free for a year which helped to increase the number of customer taking those service and also brought other innovative services like paying the telephone bills through mobile, NTC balance transfer to mobile, purchase of yeti airline ticket and i-touch service etc. 7. The BOAN Dillibazar Branch is located in center area of Kathmandu which made the customer know about the location but it became inconvenient for the customers as it was one way location and lacked parking area. 8. As the bank has been operated for only about three years it is not able to convince large group of people. 5.2 LESSON LEARNED I got to learn different things while working as an intern in BOAN. Some of the major things I got to learned were: I got to learn about the different product and service of the BOAN and functions the departments performed I learned to respect each other and value peoples ideas Learned about Taking pride in your work and your company 52

Learned to do different work Learned to listen to our clients, customers and to each other Positive organizational behavior Positive communication skills Dealing with the customers Learned team work and time management Learned to Follow the rules and creating self-ethics for own success Motivation and self-motivational techniques Fact based decision making Learned creating quality and customer satisfaction while exceeding the organizations expectations Commitment, loyalty and hard work are the key learnings of our time I have spent working with Bank Of Asia Nepal Ltd

5.3 SUGGESTION As the BOAN Dillibazar branch was started some time before it is making various efforts to sustain and build in the local area and have succeeded much on that but also I would like to recommend in certain specific area I think it should improve. The recommended area of improvement might be explained as below: 1. A more clear guidelines and a standard format of tasks and responsibility should be defined so that it leaves no space of ambiguity for the employee. 2. The standards and clear cut policy should be applied in all conditions and to all customers without exceptions so that the standard of the bank remains vivid. 3. Technology enhancement should be made so that services such as e-banking, tele-banking etc. are more prompt and efficient. 4. Higher preference should be given to the customers complaints, which helps in reducing customers complaints in the market. 5. A proper parking area must be allocated as the building is located in the main road with no space. 6. Additional ATM booths must be kept in many main cities of Nepal as well as many main places of Kathmandu. 53

7. The branch as only been operated for a short time lacks many departments like credit department, loan department etc. so the bank must increase various department and service provided to increase the number of customers. 8. More marketing activities must be undertaken in order to aware the possible customers about the existence of the branch.

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