CHAPTER :ONE

ORGANIZATION PROFILE
1.1 Introduction
Nepal Bank Limited, the first bank of Nepal was established on November 15,1937 A.D. His
Majesty King Tribhuvan inaugurated this bank on Kartik 30, 1994 B.S. as per the need of
regulating transactions like borrowing, lending, investments and savings. This marked the
beginning of an era of formal banking in Nepal. Nepal bank Limited was formed under the
principle of joint venture between government and general public. NBLs authorized capital was
Rs.10 million 2 & issued capital Rs.2.5 million of which paid up capital was Rs.842 thousand.

The total deposits for the first year was NRs. 17,02,025 where current deposits was about NRs.
12,98,898 fixed was about NRs. 3,88,964 and saving was NRs. 14,163. Loan disbursed and
outstanding at the end of the first year was NRs. 1,985,000. From the very conception and its
creation, Nepal Bank Ltd, was as joint venture between the government and the private sector.
Out of 2500 equity shares of NRs. 100 face value, 40% was subscribed by the government and
the balanced i.e. 60% was offered for the sale to private sector. There were only 10 shareholders
when the bank first started. At present, the bank is operating through 112 branches with 2381
staffs in order to serve people.

1.2 Mission, Vision and Objectives:

1.2.1 Mission statement
Nepal Bank Limited seeks to provide an environment within which the bank can bring unique
financial value and services to all the customers.it will be sound institution where depositors
continue to have faith in the security of their funds and receive reasonable returns; borrowers are
assured of appropriate credit5 facilities at reasonable prices; other service-seekers receive prompt
and attentive services at reasonable cost; employees are paid adequate compensation with

professional career growth opportunities and stockholders receive satisfactory return for their
investment.

1.2.2 Vision Statement

Vision of NBL is
"To remain the leading financial institutions of the country"

1.2.3 Objectives
Nepal bank limited has the following objectives:

Continue to maintain leading shares of banking sector with a significant presence in all
major geographical areas in the countries

Provide competitive and customer oriented banking service to all customers through
competent and professional staffs

Focus on increasing the sustainable profit

Focus on minimizing the risk associated with the business

Focus on building the positive net worth and minimum capital requirement over the
coming five years

Focus on increasing the customer base and market share

Reclaim leadership within the national financial community

Focus on building the positive net worth and meeting minimum capital requirements

Focus on providing the world class business solutions

1.3 Major Markets & Customer:

According to NBL has its services speared over 68 districts of the country. The bank in its
leading strategy have given the special priority sector loans to low income group and deprived
sector. Under the same program, the bank has given loan to productive program loan foe women,
women small loan project , Government Gas Project etc. beside this Nepal bank limited has its
shares investment in National Insurance Cooperation , Nepal Oil Cooperation , Loan Security
Cooperation , Agriculture Project , Citizen Investment Funds , 5 regional banks etc. the

companies whose shares are eligible for marginal leading includes companies that are listed in
NEPSE like commercial banks (Nabil bank limited, Nepal Investment Bank ltd, Everest Bank
LTD) manufacturing processing companies (Bottlers Nepal Ltd , Unilever Nepal Ltd, Arun
valley hydropower Company Ltd.) Hotels (Soatee Hotels Ltd.), hydropower (Butwal Power
Company Ltd.), finance companies (yeti finance company Ltd., Annapurna Finance co. Ltd), and
Telecommunication Company.

1.4 Products and services

Products and services of NBL

Deposits

Loans

Remittance

Other services

1.4.1Deposits
Every bank has a primary task of collecting money from the depositor and pays reasonable
interest plus provides them a safe custody for their hard earned money. NBL currently has
following types of account for customers:
a. Current account:
The bank on these deposit generally pay no interest, since thanks have to maintain high liquidity
to meet the customers demand. Generally firms and daily operating originations deposit these
deposits. In NBL the minimum balance to be maintained while opening current account is rupee
3000.
b. Fixed account:
The rate of interest on these deposits vary with the period for which the money is deposited. The
current prevailing rate of interest offered by NBL on fixed deposits is;
Interest rate is for 1 year fixed deposit is 4.75% and for three and above 5%.

c. Saving account:
The current prevailing rate of interest offered by NBL on saving deposit is 2% and minimum
balance required to be maintained while opening and saving deposit for NBL is for male rupees
3000 and for female and students Rs. 500 only.
d. Other account:
Sahuliyat Bachat Khata
Under this saving product, employees can open saving account with minimum balance of rupees
500. To open the account employee need to submit the reference letter from working
organization along with other documents that need to open a general saving account.
Mahila Bachat Khata:
Mahila Bachat Khata is a new deposit account for women. Under this saving account women can
open saving account with minimum balance of rupees 500. To open the account women needs to
submit the documents that need to open a general account.

1.4.2 Loan
NBL provides different kinds of loan facilities to its customers. NBL provides consumer as well
as corporate and gold Loans.
a. Corporate loans
b. Consumer Loans(Auto, Home loan, Gold loans)

1.4.3 Remittance:
NBL provides a wide range of remittance facilities to the remitters not only within the country,
but throughout the world wide. The wide network of branches of Nepal bank Ltd can take care of
the needs of the remitters to receive the funds from outwards as well as to transfer the funds
anywhere the world. NBL Facilitates inwards and outwards remittance nquickly and most
efficiently at the minimum of cost.

1.4.4 Other services

Other services of the bank are:
a. SMS Banking Service:
Nepal bank Ltd presents SMS (short message service) banking service to its valuable customers.
Bank is providing the service from branches selected. In SMS Banking service, customers can
get their account information easily by sending SMS to 1994. NBL SMS banking service have
following characteristics:
I.

Secure transaction with pin code

II.

Last three transactions with current balance

III.

Instant balance information

IV.

Pin code changing facility

V.

Account stop facility

VI.

Request to cheque book print

VII.

Request account statement

VIII.

Latest exchange rate of currency

b. Any Branch Banking Service (ABBS):

Nepal bank have largest ABBS network with many branches throughout the country. In this
banking service our customer having account with NBL can access their account from any NBL
branches which are online or within the network with central node. In ABBS facilities customer
can deposit, withdrew, and remit money from any branches, which are connected with central
node. In ABBS facility customer can deposit, withdraw and remit money from any one branch.
ABBS service is available in following branches:

Kathmandu Region

28

Biratnagar Region

28

Birgunj Region

19

Pokhara Region

21

Nepalgunj Region

16

Total no of Branches* 118

Source :www.nepalbank.com.np
c.

NBL ATM/Debit Card:

NBL bank has introduced its ever waited NBL debit card by joining the hands with smart choice
technologies (SCT), the first company in Nepal to provide network ATMs. NBL debit card of
Nepal bank allows its customers to access a vast network of ATMs located in various points in
Kathmandu and other major cities within Nepal displaying the SCT logo on it. Functions of NBL
ATMs are as follows:

Fast cash

Cash withdrawal

Balance inquiry

Pin change

1.5 Organizational Design Structure:

The bank is under the control the control of central bank of Nepal Rastra Bank (NRB). NRB has
appointed a five members management committee. Since Nepal Bank ltd is semi government
bank, its board of directors is appointed by the government. Under the NBL act of 1994 BS
before the establishment of Nepal Rastra Bank, its board directors organized all the rules and
regulations of bank as well as management functions. The organizational structure is presented in
figure:

ORGANISATIONAL STRUCTURE OF NEPAL BANK LIMITED

1.5 Financial Structure

1.5.1 Capital Structure
Particulars

Amount

Authorised capital

1,000,000.000

Issued Capital

5,00,000,000

Paid up Capital

380,382,600

1.5.2 Share Ownership

The table below depicts the share ownership of NBL; major Ownership of the bank is in the
hands of the local people. Shareholding patterns of the different parties in the bank's share capital
is shown in the table:
S.N

Ownership

Percent

Government of Nepal

40.49

'A' class Institution

4.92

NRB Licensed Financial Institution

3.42

Other institutions

0.52

General Public

49.94

Others

0.71

Total

100
*source;www,nepalbank.com.np

Sales

Govt. Of Nepal
A class fin.institutions
NRB licensed Fin. Inst.
other institutions
General public
others

CHAPTER: TWO
JOB PROFILE AND ACTIVITIES PERFORMED
2.1 Activities performed in the organization
During the two months internship at NBL I was placed in different departments under the
supervision of the staff of each department to understand and know the working environment of
the bank. The following are the departments in which I was placed and worked under the
supervision of departments staffs:

2.1.1 Customer service Department (CSD):

CSD is one of the important departments because it deals with the customers who are valuable to
the firm. CSD focus on the good relationship with the client as there aim is to attract new
customer. The different functions of this department includes new account opening and closing
account, providing bank statement on request, distributing ATM cards, cheque printing and
providing, clearing , transfer, draft, good for payment, issue off balance certificate and providing
customers with the require information of banks products and services.
Major activities performed at CSD:

Dealing with customers

Opening and closing account

Provide form for ATM card

Account transfers

Cheque book issue

Signature scanning

Issue of bank statement

Information provide to all customers

Distribution of Briddha Bhatta

2.1.1.1 Account Opening:

Account opening is the initial step in deposit. It is one of the most frequent activities done in
CSD department. Accounts can be open under various schemes provided by the bank. For
opening account, customers are required to fill up:
Signature card
Account opening form
Know your customer (KYC) form
Document to be include for Account Opening :
The documents needed for the account opening varies from one account to another account. For
individual needs less documents but a corporate organization needs more document and
formalities for different accounts.
For current account
This account is especially used by corporations. It consists of:
A) Limited Company Account:
Complete account form
Certificate in corporation
Tax registration certification (PAN NO)
Article of association
Copy of identification of companies
Evidence registered/ operating address
Document evidence residential address of signatories and director and beneficial owners

 PP sized photographs of signatories

B) Partnership account
Fill up the form
Registration certification
Partnership deed
Copy of citizenship card
Document evidencing residential address of all partners, directors and owners and PP size
photos
For Saving Account
Basic requirement for opening personal account

Citizenship certificate

Two PP size photos

Any of the following document to be submit with KYC form

Utility bill of electricity/ water / telephone
Voters ID
Driving license
Certificate of local authority
Land owners certificate

Basic needs for opening joint account

A filled application form with authorize signature of the a parties

All documents required for individual account are required for all joint parties

In case of change of signature the information must be provided to bank

2.1.1.2 Cheque Printing:

One of the most important functions of CSD is issuing cheque book. Customers can present the
cheque demand slip and cheque book is issued for them. If they lose their cheque demand slip or
cheque book, the penalty amount is charged from theirs account.
Process:
Cheque book is issued directly after account opening to new customer. For existing customers
they must have to fill up the cheque demand slip mentioning he leaves of cheque required along
with their name and signature. Identity and signature of customers is verified by CSD in charge.
Then number of leaves of cheque and cheque number are entered. Then cheque is printed and is
signed by CSD in charge.
2.1.1.3 Statement Printing:
Generally, a six monthly statement will be sent to that customers can see their transaction
movements. But request are made , statement is printed as per their need.
2.1.1.4Account Closing:
If Customers want to close his /her account they have to filled closing form. Along with form
customer should be returned back cheque, ATM and other documents which related to closing
account. As per the rule of bank, curtained balanced is deducted as closing charge and remaining
amount is refund to the customers.

2.1.2 Remittance Department:

A remittance is a simple transfer of money normally sent from one country to another often to be
paid in different currency usually sent through the agency of a bank and also from one place to
another within same country. NBL provides a wide range of remittance facilities to the remitters

not only within the country but throught the globe. In this department how the money is
transferred from one place to another place was learnt. The functions of remittance are as
follows:
1) Making necessary entry for inward and outward remittance
2) Processing of salary account posting
3) Ensuring proper filing of all the document and letters and maintaining registers
4) Informing customer about the incoming remittance credit in their account
5) Preparing Debit/Credit advice as per customers request
6) Posting the transactions in the bank software
7) Transfer the funds from one account to another on the customer request
8) Purchasing and collection of Travellers cheque and foreign currency cheque
9) Cross checking the daily transaction list of the staffs
10) Providing quick and efficient services

2.1.3 Pension Department:

Giving pensions to different sectors people is task of bank in this department. NBL provides to
different retired people of different sectors are; Nepal Army Civil Servant Teachers NBL
Employees.
Process learnt on Pension Department:

Entry of pension is done in separate pension software and is the part of newton
Software

Different Product Codes are typed like 1010 for civil servants, 1020 for teachers,
1030 for defense military and 1040 for NBL emloyees

Each people have their unique patta no.that is entered to the system that displays
data relating to the employee like their name, post, pension amount,tax amount
etc is shown,

Patta should be renewed in every 6 months so that monthly payment can be

transferred to the pension a/c of the employees

T.U pension holders are given a voucher signed by the department head after
verifying the patta andcash department pays the cash to them

2.2 Problem Solved:

Deposit of careful attention in work, some errors may occur while working. These errors need to
be rectified as quickly as possible. Some of the problems that were solved in CSD and other
departments are:
i.

Problems in cheque issued:

Sometimes cheque number could be mistaken while entering. This leads to problem in cheque
encashment and cheque are returned back. So the cheque number should be rectified.
ii.

Mistakes in customer information:

While registering the customer information in the system, some error may occur in the personal
information of the customer. In this case customers are verified and necessary to document like
citizenship card is demanded and such mistakes are rectified.
iii.

Alternating customer signature:

Sometimes it may be difficult for customers to do the same signature as they had done while
opening the account. This may lead to cheque dishonor so customer may request their alternate
the signature of their account.
iv.

Problem due to change in policies :

The rule and policies of bank changes with the change in instructions provided by regulatory
authorities. Customers may be confused about these changes. So customers are regularly updated
about the changes in policies of bank.

2.3 Intern's Key Observations

Internship was a great experience for interns like us. The knowledge gained in the theoretical
course was relevant and useful in the context of job or function. The internship report has given
practical exposure to the students regarding the functioning of an organization by understanding
the challenges in the real bussiness environment nand learning to deal with management
problems through various managerial skills as well as it has given a general nsight of overall
banking opreations by exposing the corporate culture and implementing the knowledge that has
been learnt and also analyzing the skills that has been acquired. Many things and gaps were
witnessed while working at NBL as an Intern. Some of them are listed below;

The intern was only allowed to perform the clercial task despite the fact that BBA aims to
develop mid level managerial abilities,

In theories, banks are required to abide by regulations imposed by governing bodies but
the organization, in some aspects, doesnt seem to follow the rules as perscribed,

In theories, the intern has learned that the company like banks are free from favourism
and nepotism but these things still prevail in the company

CHAPTER:THREE
LESSION LEARNT AND FEEDBACK

3.1 Lession Learnt

Internship was conducted on Nepal Bank, Chabahil branch. Nepal Bank Ltd.is the pioneer bank
of modern banking. Internship in NBL allowed the intern to learn about real work environment
and complete the tasks given smoothly with cooperative staffs and in charge. Co-operations from
staffs made the learning of intern easier and helped to get treatment as the staff of bank.
During the period of two months I was assigned with the customer service department. During
internship I have learnt a lot of other aspects other than the banking as to socialize with the
people, to deal with the senior staffs, and to deal with the intern colleague so as to make the
working environment friendlier. I have also learnt that behavioral issues are most important
inside the organization. Customer feel satisfied when they are behaved properly.
Before internship, the knowledge of intern was only limited to the assumptions and theories of
book. But, internship allowed the intern to learn whole a lot of things practically. This was the
first experience of the outside the world of the books.
This part consist the overall activities learnt during and after the internship in Nepal Bank. NBL
has provided lots of opportunities to learn at the beginning of internees carrier. As listed and
described in previous chapter internee learnt by observing and doing activities be that handling
the document of filling or dealing with the customers. Internee got an opportunity to know in
depth of the account department, customer service department, administration etc.
Important lesions that internee was learnt are:

Learnt the process of opening account, closing account, issuing cheque and statement at
CSD

Learnt the general banking transaction procedure of CSD

Learnt proper way of filling up cheque and vouchers

Learnt about general banking practices and corporate culture

Understood the importance of good communication skills, proper manner, knowledge

about work culture & organizational environment

Learnt to use Newton system install by NBL

Learnt about photocopy machine, scanner, cash counter machine etc.

Social exposure of dealing capacity with various types of customers from different
background

Behavioral issues are most important inside the organization. Customers feel satisfied
when they are behaved properly. Misbehavior and delay in providing service adversely
affect the organizational image.

3.2 Feedback to Organization:

During the 77 years of functions, NBL has gone through various ups and downs; however, it has
always contributed in the national growth. The activities done and services provided by NBL are
commendable. The recovery of the bank in terms of its financial positions, its adaptation to
technological advancement and customer trust shows that the bank has enormous opportunities
new heights to achieve in future. Throughtout my internship what I was observed as the bank
needs some advancement in many aspects. Some of the feedback I would like to include;

Website should be updated timely.

The bank should be more focused on enriching its Human Resource Management;
emphasis should be given on quality of workforce rather than quantity.

Bank should not only focus on growth but also effective cost cutting strategy should be
implemented in order to decrease the cost income ratio.

The remuneration for employees must be increased so as to attract qualified and capable
employees.

The infrastructure of bank must be enriched to make a good impression on the mind of
public and enable employees to provide better service.

The bank should be more de-centralized.

The bank has to seriously consider humongous number of branches it has and make big
decision such as closing down unprofitable branches.

Job rotation should be done.

Investment in IT has to be increased in order to enhance its overall banking operations.

Lastly, I want to conclude that Nepal bank is brilliant in terms of their services deposit with
some pros and cons with the issue related to customer satisfaction. Nepal Bank is one of the
most promising banks today and have an opportunity to increase their market share by
improving their customers satisfaction by overcoming their weakness and doing their best to
retain quality services.

3.3 Feedback to the University/College

The internship period was really a challenging task presented for the BBA 6th sem students by
pokhara university. The compulsory internship was very much knowledgeable and challenging
subject. It has not only helped in learning the procedure but also to enrich and maintain a better
reputation infront of the organization. Besides there are some points I think university and
colleges should be aware and rethink on:

It will be better if University placed the internship in 8th semester,

University has to mention the particular organization, that the students have to go,

During internship period, staffs from university or college should check the activities of
the student

College should properly superise the students during the internship period,

College should manage the organizations to the student for internship

College can provide an effective program as guidence for students before going to the
organization,