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CHAPTER ONE

INTRODUCTION
1.1 Background:
Nowadays, people are becoming more aware about the importance of education. Due
to this reason, many schools and colleges are emerging every day. Among the various
universities governing the colleges, Tribhuvan University (T.U.) is the largest and
oldest university of Nepal. With the increasing demand of the Management studies,
T.U. has gradually prepared an innovative course in order to originate the competent
professionals with the changing demands of corporate world since 2002 A.D. Among
different management courses of T.U., Bachelor in Business Administration (BBA) is
one of the best management courses.
Bachelor in Business Administration (BBA) is the semester wise academic program
for management students designed to provide comprehensive and practical education.
The charm of BBA is increasing because it is accepted world wide as it covers the
International standard of four years (one hundred and twenty credit hours).
As per the requirement of Faculty of Management (FOM) of Tribhuvan University,
students of BBA should perform internship in any organization for eight weeks, as a
partial fulfillment of program. The FOM, Tribhuvan University has its ultimate
objective of educating students for professional pursuits in business, industry and
government. It is further dedicated to contributing for increasing the knowledge and
understanding of business and public administration. Accordingly, FOM has been
developing networks with management institutes in the country and abroad to
exchange new knowledge, technology and methods for achieving higher level of
efficiency in management education. For a developing country like Nepal, it is more
meaningful to have commercial banks as lending financial institution to guide the
economy in a desired level.
With the view to achieve same objective, FOM has introduced BBA program. The
specific objectives of the BBA program are to:

Prepare students to take-up middle level managerial positions in the business


sector.

Develop students skill in object-oriented business management capable of


understanding and solving practical business problems creatively.

Provide professional management education with a blend of computer and


management information system courses.

Prepare students to proceed on to postgraduate level study in business


administration.

The teaching methodology of the program has focused on preparing us to face the
challenges emerging out of the changing business environment. In order to achieve
the aforementioned objectives, the teaching pedagogy of the program consisted case
studies, practical exercises, lab works, project works, field visits, etc. throughout the
program period and an internship for the period of eight weeks in an organization at
the end of final semester. An internship is an extensive program through which an
intern can learn the practical aspects of what is taught between the four walls of a
classroom. The BBA program has incorporated eight weeks internship program with a
view to develop students skill in object-oriented business management, capable of
understanding and solving real life business related problems. It provides practical
exposure and helps the student to understand corporate social responsibility, develop
corporate attitude and venture entrepreneurship.

1.2 Objectives of the Report


The BBA program sharpens business and management concepts and develops
technical capabilities, which will enable us to analyze and implement business
concepts in real world scenarios. So, one of the objectives of this study is to provide
us with an opportunity for learning as well as implementing the management
concepts learnt in classrooms in a real organization. One of the most essential criteria
for successfully completing the BBA program is to undergo an internship in an
organization for a minimum 8 weeks, study the relevant areas in the organization, and
prepare a report in the same. The fundamentals objectives of the internship report are
as follows:

To know whether various theoretical tools and techniques learnt in college can

be applied in the work place.


To gain in-depth knowledge about operation activities performed in the bank.
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To study and analyze the working system of various departments of the bank.
To know about the customers responses towards the services provided by the

bank.
To learn through observation and work experience in the organization to

enhance and develop managerial behavior and skills.


Mould the classroom theoretical discussions with practical experience to
develop the skills demanded by the financial market

1.3 Research Methodology:


This internship report is the in depth study of particular subject or topic backed by the
collection, compilation, presentation and interpretation of relevant data. In this report,
both primary and secondary sources of information are used. It helped to analyze the
findings in meeting the objectives of the study.
Sources of data:
The report would not be completed without the collection of data. For the report the
data are collected from primary source and secondary source. They are as follows:
Primary Data
Observation of working environment of bank.
Visited banks in order to associate with different aspects of the banks.
Met with the banking people and had direct contact with them for relevant
information.
Informal discussion and interaction with the staff of the bank.
Secondary Data
Annual report of Nepal Investment Bank Ltd.
Information from the official website of NIBL- www.nibl.com.np
Publications & Journals
Application form for different type of account opening
Browsers of the different types of account

Official website of Nepal Rastra Bank (NRB)- www.nrb.org.np

1.4 Organization Selection, Placement, Duration:


1.4.1 Organization Selection
Selection of organization for internship program is always a crucial task. Being the
student of BBA, most of the internee has selected the banking sector as their
destination, because banks are the key players in the financial market.
For the completion of the BBA program Internee had to select an organization that
would perfectly match the requirement as well as help him learn about real business
working environment. As a result, Internee select NIBL among other financial
institutions operating in Nepal with the help and suggestion of his teachers as well as
well wishers. Internee was placed at the Seepadole Branch of the bank for his
internship.
1.4.2

Placement

During internship period, Internee was placed at Seepadole Branch of NIBL. The sum of
period of internship was 8 weeks. During the period, internee was placed at customer service
department, marketing department and at back office. Internee was placed at CSD for the
period of 5 weeks, at marketing department for the period of 2 weeks and at back office 1
week. The following table shows the department of placement and respective supervisor of
the department:

Table 1.1: Placement


DEPARTMENT

SUPERVISORS

CUSTOMER SERVICE

Mandira Malla

MARKETING

Sachin Baidya

BACK OFFICE

Sushila Basel

The above table shows the placement of internee in Seepadole branch and also shows the
respective supervisors of concern department.

1.4.3

Duration

As per the course study of the Tribhuvan University, Faculty of Management for
BBA, the student of BBA 8th semester must do the internship of 8 weeks of working at
an organization. Internee got an opportunity to work in CSD, marketing department
and back office of seepadole branch of NIBL, from May 30, 2011 to July 25, 2011
which really helped him to develop managerial and interpersonal skills and at the
same time boost up his confidence level. These eight weeks has been very fruitful for
him to get insight of the banking activities of the organization. The duration of his
internship has been split into various departments as follows:
Table 1.2: Duration of Internship
WEEKS

CSD
MARKETING
BACK OFFICE

The above table shows the duration of internship at Seepadole Branch and duration of
internee works at certain department.

1.5 Activities performed in the organization


During this internship period of eight weeks Internee have done various jobs in
various department personally. Internee was placed at CSD, Marketing department
and Back office.
1.5.1 Activities performed at CSD
Basically internee was placed in CSD throughout his internship period in seepadole
branch. He carried out all the functions of CSD. So the activities internee has to
performed in this department are as follows:
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1.
2.
3.
4.
5.

Interacting with customers and try to solve their queries.


Receiving cheque book requests and delivering the cheque book.
Arranging the cheque and cards on the basis of ascending order.
Helping customers fill up the different types of forms.
Close the accounts of customers as per request.

1.5.2 Activities performed at Marketing Department


Marketing department is mainly responsibility of finding ways to improve its products
and services in order to attract new customers as well as retain the existing ones. The
activities that Internee has to perform in this department are as follows:
1. Approaching to different prospects, individuals and corporate houses to inform
2.
3.
4.
5.

about different product of bank.


Persuading them to use different product of the bank.
Informing about new product of the bank.
Providing information about new changes and schemes of the bank.
Collecting feedbacks from existing and unsatisfied customer.

1.5.3 Activities performed at Back Office


Work done in back office are advance payment, forex, remittance, dealing clearing
cheques, making TC, draft, MC cheque , cheque deposit, etc. It also deals with the
purchase and sale of INR. And other activities performed are:
1. Remittance data entry
2. G-9 form fill up for fixed deposit
3. ATM Pin code release

1.6 Importance of internship


Internship is one of the essential parts required for the completion of BBA program. It
carries a weight equivalent to 6 credit hours. The importances of internship are
highlighted below:

It develops skills in the application of theory to practical work situations.

It allows a student to both make and develop professional contacts.

Students can have greater understanding of their strengths and weaknesses.

Students can refine their career goals.

It helps to widen public relation.


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To improve the quality of academic knowledge.

The theoretical knowledge is valueless without practical training, so internship is very


necessary.

1.7 Limitation of the Report


It is obvious that in everything there is some kind of limitations and this internship
report is also not an exception. So, it also has common limitations. The following are
the major limitations of my report:

The research study was conducted in a limited sphere of time.


It does not give detail view of overall functioning of the bank.
The study might not be able to fulfill the desire to know the details of the
prescribed department and its transactions due to confidentiality reasons and

policies of the bank.


The study is only confirmed to one financial institution, which is NIBL.

Finally, this report is prepared on the basis of available data, practical day to day
operations and information provided by the bank and its staffs.

CHAPTER TWO
AN INTRODUCTION TO BANKING INDUSTRY
2.1 Meaning of Bank
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Banking sector plays an important role in the economic development of the country.
The word Bank has been derived from the Italian word Banca which means a place
for keeping, lending and exchanging money. The bank is a financial institution, which
deals with money. It accepts deposits from individuals and organizations and grants
loans to them. It allows interest on the deposits made and charges interest on the loans
granted. Since, it accepts deposits and grants loans, it is regarded as the trader of
money. Further, it creates credit and supports for the formation of capital and hence it
is regarded as manufacturer of money.
The following are some of the main definitions given by different economists:
Bank is an organization established for the purpose of exchange money deposit
lending money and participation in transactions
-Commercial Bank Act of 2031 (Nepal)
Bank is an institution which collects money from those who have it to spare and who
are saving it out of their income and lends this money out to those who require it.
Crowther
By the above definition we can be clear that bank is the financial institution, which
accepts deposits from the public in different accounts and grants loans to individuals
and corporations against their securities. The major source of income for the bank is
the difference in interest rate on lending and deposit, interest rate spread, the lending
interest is higher than the deposit interest. So we can consider the financial institution
is the agent of the clients, which remits money, collects incomes and pays expenses on
behalf of them. It provides the wide variety of function on the behalf of the customer.

2.2 Origin of Bank


The banking is as old as authentic history. The word 'bank' is derived from the Latin
word 'bancus' which means bench. In the ancient time the Italian goldsmiths used to
sit on benches when they are in work of exchanging of money; trading of gold and
silver. The words of bench means Banck in German, Banca in Italian and
Banquee in French, from which it used as bank in English language.

The banking functions were in use even in the second millennium in Babylonia but
the deposits were not of money but of cattle, grain or crops and eventually precious
metals. Nevertheless, some of the basic concepts underlying in todays banking
system were present in the ancient arrangements. Deposits were accepted, loans were
made and borrowers paid interest to the lenders.
Similar type of banking arrangements could be found in ancient Egypt. These
arrangements stemmed from the requirement that grain harvests be stored in
centralized state warehouse, and the depositors could use written orders for the use of
certain quantity of grains as means of payment. Bankers and moneylenders operated
in India during the Vedic period. Those were the earliest form of banking. Banking
was organized as it passed through several developmental stages.
The history of modern banks starts from the establishment of the bank of Venice,
established in Venice, Italy in 1157 AD. Subsequently, Bank of Barcelona (1401) and
Bank of Geneva (1407), Bank of Amsterdam (1607) and bank of Hamburg (1619)
were established. The Bank of England, first English bank, was established in 1964
A.D. The bank of Hindustan established in 1770 A.D. is regarded as the first bank in
India. But these banks were not established according to the law. In 1833 A.D.,
Banking Act-1833 was introduced in United Kingdom which allowed opening Joint
stock company banks. With the expansion of the commercial activities in the northern
Europe, there sprang a number of private banking houses in Europe and slowly spread
throughout the world.

2.3 History of Banking Sector in Nepal


Nepal being a developing country, its banking history is not so long. According to
historical records, Our King Mandev and Gunakamdev established Manank and
Ginak mudra respectively. Gunakdev borrowed money to rebuild Kathmandu in 723
AD. A merchant named Sankhadhar paid all the debts of people and established Nepal
Sambat for the remembrance of that occasion in 80 AD. Likewise Jaysthiti Malla
classified the people in four classes and 36 castes by their occupation. One of those
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caste who were involved in money lending business at that time named as TankaDhari during the primeministership of Rannodip Singh.Likewise, Tejarath Adda was
established as the first financial institution of the country. At the beginning only
government staffs were allowed to take loans at 5 % interest rates and latter on public
were also allowed to take loan at the same interest rate against the gold and silver
securities. Taksar Bivag was also established since 1989. Our oldest bank is Nepal
Bank Ltd. established in 1994 BS. 30th Kartik. After that so many banks were
established. Nepal Rastra Bank was established in the year 2012 as a central bank of
the country. Rastriya Banijya Bank, another commercial bank was established in
2022. Only after 2041 B.S, Nepal government allowed joint venture banks to operate
in the country.
Then came board of joint venture public limited commercial banks in the country. At
present the banking sector is more liberalised and there are various types of bank
working in the modern banking system. All financial institution are regulated by
NRB. The list of Banks and Non-bank Financial Institutions licensed by NRB at
present are presented in the following table:
Table 2.1: List of Banks and Non-bank Financial Institutions
As of Mid-July 2011 (Licensed by NRB)
S.N

Organizations

Number

Commercial Bank

31

Development Bank

87

Finance Companies

79

Micro credit development Bank

21

Saving and Credit Co-operatives(Licensed by NRB)

16

Non Government Organization(NGO) (Licensed by NRB)

38

2.4 Classification of Banks


When a single bank performs multiple tasks, the efficiency and effectiveness of the
work becomes weak. Hence different banks are established for different purposes.
Basically, the banks have been categorized in various types in accordance with the
bank's ultimate purpose, customer's demands and choices, and overall economic
development of nation. Broadly, the banks can be classified into following types:

Central Bank
Commercial Bank
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Industrial Bank
Agricultural Development Bank
Rural Development Bank
Saving Bank
Exchange Bank
Universal Bank

2.5 Commercial Banks in Nepal


Commercial banks are the major component in the financial system. A commercial
bank is a business organisation, which deals in money by lending and borrowing
money, in which it makes profit. It raises its resources through borrowing from the
public in the form of deposit and lends this to business firm. Its lending rate of
interest is greater than its deposit rate. This difference in lending and borrowing rates
enables it to make profit. Basic source of funds for commercial banks are capital and
reserved retained profit. It performs several functions as various types of deposit
facilities like current, saving and fixed deposit; safety of public money, remittance of
money, letter of credit, loans, locker facility, foreign exchange, serving as an agent of
its clients etc.
Commercial Bank Act 2031 states- A commercial bank is the bank which exchanges
money, accepts deposits, grant loans, and perform banking function.
2.5.1 Functions of commercial bank
The main function of commercial bank simply is to borrow to lend. Besides, there
are other functions which have been developed according to need of the society as

Accepting deposits

Advancing loans

Discounting bills of exchange

Transfer of money

Miscellaneous functions

List of commercial banks of Nepal: See Annex I

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CHAPTER THREE
INTRODUCTION OF AN ORGANIZATION
3.1 AN OVERVIEW OF NIBL
Nepal Investment Bank Limited (NIBL), previously Nepal Indosuez Bank Ltd. Was
established in 1986 as a joint venture between Nepalese and French partners. The
French partner (holding 50%of the capital of NIBL) was credit Agricole Indosuez. A
subsidiary of one of the largest banking groups in the world. The bank started its
banking services from Magh 6, 2042 after registration in the company act, 2021 and
Nepal Banijya bank act 2031 on 6 th Magh 2042 B.S. With the collaboration of foreign
technology and investment the bank is established to provide the banking service in
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different parts of the country. There was a contract made between Rastriya Banijya
Bank, Rastriya Bema Sansthan and foreign investor credit Agricole Indosuez from
France. In the contract it was stated that for the 10 years from the starting of the bank,
Credit Agricole Indosuez would handle by the management. With the decision of
Credit Agricole Indosuez to divest a group of companies of bankers, professionals,
industrialists and businessmen, on April 2002 acquired the 50% shareholding of
Credit Agricole Indosuez in Nepal Indosuez Bank Ltd.
The name of the bank subsequently changed to Nepal Investment Bank Ltd. upon
approval of banks annual general meeting. NIBL, is managed by the team of
experienced bankers and professional having proven track record. So, it can offer
customers what they are looking for. The choice of the bank will be guided among
others by its reliability and professionalism. The fact of professionalism is reflected
by the fact that the Banker of London-based Financial Times Group has awarded
NIBL with THE BANK OF THE YEAR 2003. Besides, NIBL won the same award
in the year 2005,2008 and 2010 as well. NIBL was selected for this honor amongst the
Nepali banks for meeting the benchmark criteria set by The Banker. The award is
based on growth and performance of capital, assets, and return on equity and
management quality. The prestigious award is the first occasion that a 100% Nepali
managed bank has won. The reliability of the bank is reflected by its operation in the
field. It is established to provide the banking service in different parts of the country.
Customer satisfaction is the paramount driver at NIBL.NIBL provides 365 days
banking services.
NIBL, at present is a Company listed on the Nepal Stock Exchange. But its shares are
held by different parties. The shareholdings of the bank at present are as follows:

A group of companies holding 50% of the Capital.

Rastriya Banijya Bank holding 15% of the Capital.

Rastriya Beema Sansthan holding 15% of the Capital.

The general public holding 20% of the Capital.


Fig 3.1: NIBLs shareholding structure

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NIBLs shareholding structure

Organized Institution
20%

Rastriya Banijya Bank


50%

15%

Rastriya Beema Sansthan


General Public

15%

The above chart shows the shareholding structure of NIBL.


3.1.1 Vision
Our Vision is to be the most preferred provider of Financial Services in Nepal
3.1.2 Mission statement
To be the leading Nepali bank, delivering world class service through the blending of
state-of-the-art technology and visionary management in partnership with competent
and committed staff,to achieve sound financial health with sustainable value addition
to all our stakeholders.

3.2 Strategic objectives of NIBL

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 pen scalable systems to achieve costeffective operations, efficient MIS, improved delivery capability and high
service standards
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To develop innovative products and services that attracts our targeted


customers and market segments

To continue to develop products and services that reduce our cost of funds

To maintain a high quality assets portfolio to achieve strong and sustainable


returns and to continuously build shareholders value

To explore new avenues for growth and profitability

3.3 Board of Directors


The board of directors of NIBL consists of 7 directors.
Board of Directors of NIBL: See Annex II

3.4 Organization Structure of the Bank


Organization structure is the specified path through which the formal command of
authority and responsibility flows.
Organization structure of NIBL: See Annex III

3.5 Products and Services offered by NIBL


NIBL has been able to maintain its image of being the technology leader in the
banking sector by adopting new technologies from the very beginning of its operation.
NIBL is never back in providing the best products and services to meet the
requirement of its customers be that the existing ones or potential customers.
Moreover, it has always been the innovator in introducing many of the products and
services. Customers satisfaction is the paramount driver at NIBL.
3.5.1 Products of NIBL
Broadly speaking there are two types of products of a normal commercial banks. They
are deposits and credit. Under these two categories NIBL also provides various kinds
of products. They are categorized below:
Deposits:

Saving A/C
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There are different types of saving a/c offered by NIBL. The interest rate of different
a/c varies which is presented in the following table:
Table 3.2: Deposit Interest Rates
Saving Accounts
Savings
Ezee Savings
Saving Bonanza

% per annum
4.50 - 6.00
5.00
6.50

The above table shows the interest rates of different saving a/c.
Different saving a/c offered by NIBL are as described below:

Normal Saving Account


Saving Account is thie type of a/c which encourages the customer in saving. The
customers generally open this account for earning. In case of NIBL Seepadole branch
the A/C needs to have the minimum balance of Rs. 2500. The interest rate in this
account is 4.5 % per annum calculated each 3 month. The features of this a/c are as
follows:

Unlimited deposits and withdrawls

Free eBanking

VISA Electron Debit Card valid in Nepal and India

Any Branch Banking Service (ABBS)

Cheque book facility

Social Deposit Account


The Social Deposit Account is NIBLs contribution to help achieve a better Nepal.
The Social Deposit Account permits any INGO/NGO account holder to claim a share

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in the profits of the account. NIBL invite all such organization to join hands with bank
in this noble cause. Eligibility for opening this a/c are:

All INGO/NGO who is registered with Social Welfare Council (SWC)


INGO/NGO engaged in non-profitable social work or charitable activities.
Maintain an annual average balance of USD 10,000 or NPR equivalent.

E Zee Saving Account


This is the type of saving account which provides 5% interest on daily balance. The
minimum balance of this account is NPR 50,000.The feature of this account are:

Waiver of key deposit fee for lockers

Special health package at National Reference Laboratory (NRL)

Privilege Lounge

Unlimited deposits and Withdrawals

Free eBanking

Free issuance of VISA Electron Debit Card valid in Nepal and India

Free Any Branch Banking Service (ABBS)

Accidental Insurance

Cheque book facility

Afnai Bachat Khata


This is a type of personal a/c which can be open with minimum balance of Rs
1.This a/c has 4.5% interest on daily balance. The feature of this a/c are follows:

Visa electron debit card @ NPR 250.00 per annum, valid in Nepal and India

Free eBanking facility


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Free ABBS within Kathmandu valley

No maintenance charge

Keta Keti Bachat Khata


This is a a/c specially designed for the children. This a/c offer 4.5% inerest p.a. on
daily balance. This a/c doesnot required any minimum balance. The feature of this
a/c are as follows:

Visa electron debit card @ NPR 250.00 per annum, valid in Nepal and India

Discount Privilege card

Free eBanking facility-pay school fees online

ABBS facility

No maintenance charge

Free birthday cake for the account holder (minor)

NPR 100 contribution from the bank as soon as the account is opened.

Saving Bonanza
This is a saving a/c which require minimum balance of NPR 100,000 to open .This
a/c offer interest of 6.5% p.a. on daily balance. The feature of this a/c are as
follows:

Privilege Lounge

Waiver of key deposit for lockers

Free ABBS/ eBanking/ Visa Debit Card

Unlimited deposits / withdrawals

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Free Utility Payment for Nepal Telecom Pre-Paid Recharge, Post Paid/PSTN
Bills, Schools. ISPs, Cable networks, Insurance & Yeti Air eTicket

Accidental Insurance

Lotus Saving

Minimum balance of NPR 1, 000/-

Visa electron debit card @ NPR 250.00 per annum, valid in Nepal and India

Free eBanking facility

ABBS facility

No maintenance charge

EZee Student Account


This is the a/c specially initiated for the student level clients. The a/c should have
the minimum balance of Rs. 2,000. This a/c has the interest rate of 4.5% per
annum. The feature of this a/c are:

Visa electron debit card @ NPR 250.00 per annum valid in Nepal and India

Free eBanking facility

ABBS facility

50% waiver on TC issuance

50% waiver on Draft

Parivar Bachat Khata


This is a a/c designed for family. It require minimum balance of NPR 2500. The
feature of this a/c are as follows:

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Minimum opening balance Rs 2500/-

Maturity period, Maximum of 3 years

Minimum monthly deposit Rs 500/-

Minors receive cakes on their birthday

Parents/guardian is to have an account with NIBL and from their account the
money will be transferred to this account through Standing Instruction.

Personnel Accidental Insurance upto RS 50000/-

Free ABBS

eBanking service

Free Standing Instruction service

Fixed Deposit A/C


Fixed Deposit A/C is also termed as Term Deposit. In fixed deposit account, the
customers keep their amount for some fixed period of time. This A/C is maintained
by the customers who have cash in hand and is not interested in investing in any
other field. The interest in this A/C varies with the time duration.

Table 3.3: Interest Rate according to Maturity period

Fixed Deposit
Prime (%)
1 month
6.00
3 months
6.50
6 months
7.00
1 year
7.50
2 years
8.00
Above 2 years
8.50
Special Deposit Account
10.00
NIBL Special Fixed Deposit
11.00
20

Others (%)
5.50
6.00
6.50
7.00
7.50
8.00
9.00
10.50

Special Bulk Fixed Deposit Account

11.50

11.00

The above table shows the interest rate of fixed deposit a/c which varies according to the
maturity period.

Current A/C
Current A/C also termed as the Demand Deposit is maintained by the customers who
requires the money frequently. The balance in this A/C is non productive for the bank
since, it cannot be utilized. So, the bank does not provide interest in this A/C. Current
a/c in NIBL is mostly maintained by business enterprises. The minimum balance to be
maintained in this a/c is Rs.5, 000.
Credits:
A contractual agreement which a borrower receives something of value now and agrees to
repay the lenders at some later date. Any time when an individual finances something with a
loan (such as an automobile or a house), they are using credit in that situation. The various
loan provided by NIBL are as follows:

Home Loan
Vehicle Loan
Education Loan
Loan against gold and silver
Bank overdraft

There are other types of products too which the bank provides. They are as follows:

Visa debit cards


Credit cards
Travelers checks

3.5.2 Services of NIBL


Like every other commercial bank NIBL do provide services keeping the customers
needs and wants in mind. These are the existing services provided by NIBL:

365 Days Banking


E-banking
Any Branch Banking Service (ABBS)
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Tele Banking Services


Statement request
Cheque pad request
Remittance
Trade finance
Utility payment
Lockers
Automated Teller Machine (ATM)

3.6 Branches of NIBL


NIBL is never back in providing the best products and services to meet the
requirement of its customers be that the existing ones or potential customers.
Knowing the need of the market and the convenience of the customers it has opened
several branches all across the country. The bank extended its operation to Seepadole,
Birgunj, Banepa, Pulchowk and Jeetpur during the period of French partnership. Rests
of the branches were established after the management was totally handed over to
Nepalese partners. NIBL has 41 branches in various part of the nation.
NIBL branch address: See Annex IV

3.7 ATM of NIBL


At present the bank has 67 automated teller machine (ATM) locations providing
services to its customers in different parts of the country. The customers of NIBL can
withdrawal minimum of Rs.100 per transaction. In the same way customers can
withdrawal maximum of Rs 40,000 per transaction up to Rs. 100000 per day. The
ATM of NIBL are Open 24 hours a day, 7 days a week and 365 days a year. Services
provided by NIBL through ATM are:

Cash withdrawal
Fast Cash
Statement request
Cheque pad request
Mini Statement
Balance Inquiry
Utility payment
Pin Change
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Fund transfer

NIBL has 67 ATM in different part of the country which accepts VISA and VISA
ELECTRON cards.
ATM locations of NIBL: See Annex: V

3.8 Branch Profile


3.8.1 Introduction to NIBL, Seepadole
Nepal Investment Bank Ltd. extended its transaction by establishing its first branch at
Thimi in the year 1992. The bank extended its operation to Birgunj, Banepa,
Pulchowk and Jeetpur during the period of French partnership. The other branches of
bank were established only after the total management of bank was handed over to
Nepalese partners. NIBL, Thimi continued its operation till the year 2002. But since it
is not performing to its full capacity and felt very low market there, its was shifted to
Seepadole, Bhaktapur in the year 2003 after the management was handed over to the
Nepalese team. So, NIBL, Seepadole was established in the year 2003.
At present, it is performing to its maximum covering the total area of Bhaktapur.
NIBL, Seepadole also follows all the norms of Nepal Investment Bank Ltd. NIBL,
Seepadole is providing all the services to the people of the area. It provides the more
facility than other banks and it has extended its office hours. It operates from 9:30
A.M. to 7:00 P.M. on Sunday to Thursday. On Friday it will be opened till 3:30 P.M.
and on Saturday and other public holidays it is open from 10:00 A.M. to 1:00 P.M.
The departments of Seepadole branch are as follows:
Table 3.4: Department of Seepadole Branch
S.N
1
2
3
4
5
6

Department
Operation Department
Cash Department
Retail Marketing Dept.
Credit Dept.
Back Office
Customer Service Dept.

Head
Bidur Thapa
Nina Dhaubanjar
Sachin Baidya
Sulav Dhoj Khand Thakuri
Sushila Basel
Mandira Malla

Organization structure of Seepadole Branch: See annex VI


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3.8.2 Target of NIBL, Seepadole

To facilitate the business people of Bhaktapur by providing each possible


banking facility.

To provide continuous banking facility with 365 days service.

To be the Best and the Number One Bank in Bhaktapur.

To provide banking education to people of Bhaktapur and encourage saving.

To update Bhaktapur with the banking technologies; ATM; Lockers etc.

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE
AND PROBLEM SOLVED
As an organization has several departments, NIBL has also various departments and
the activities are performed respectively according to their nature and function.
During internship period internee got an opportunity to work on various department of
NIBL, but this report basically focuses on the CSD of NIBL Seepadole Branch.

4.1 Customer Service Department


Customer service is the front desk of any organization. It is the place where customers
make first contact with the bank. The image and reputation of the bank depend upon
the effective functioning of this department. Customer service is the process by which
an organization delivers its products and services to the customers. The staff deployed
in CSD should have fair knowledge of banking so that they may be able to answer any
questions raised by the customers. Attracting the potential customers and retaining

24

the existing customers are intended by CSD. Hence, all the activities of CSD are
directed towards customer satisfaction
Superior customer service is the service that exceeds the expectation of the customer
and will make the business stand out from competitors. To be effective and efficient,
customer service must be consistently good in every part of the organization. In order
to build superior customer service into your business, you need to develop a business
vision that reflects your commitment to good customer service and let your customer
know about it by incorporating customer service strategies into your business and
marketing plan.
One thing that is to be kept in mind is the finding new customer is much more
expensive than retaining existing one. Customer service is more than just keeping
customer happy. But it is about revenue, because a lost customer means loss of
revenue and incurred expenses in making new customer and unhappy customer can
damage the image and reputation of the business as a whole.

4.2 Responsibilities of CSD of NIBL

Disseminating information related to various banking products and services

that are available to satisfy needs of customers.


Manage the various forms and vouchers such as different new account
opening forms, closing forms, scheme change forms etc.

Telephone Handling

Maintaining the record of total number of the cheque requisition issued by the

customers and preparing the cheque book.


Making the photocopy of all necessary identification, documents as per the

type of the account being open and verify with the original one.
Providing the bank statement to the customers to see their transactions being
taken place.

4.3 Major functions to be performed in CSD:

25

As described, the CSD is responsible to provide detailed information about the


product and services of the bank to meet customer need and to make banking
more convenient. The staff in the CSD must be capable enough to cope with every
environment and at the same time needs to have good communication and
interpersonal skills to build a good public relation. The major activities performed
in the CSD are shown below:
M
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ie
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tin
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iv
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o
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Fig 4.1: Chart showing major function of CSD


4.3.1 Customer counseling and handling
This is one of the most important functions of CSD. This department is concerned
with counseling with the customers that can be both new or regular clients concerning
their queries and confusions about the product or services provided by the banks to
the customers. Basically Internee is placed at CSD for customer counseling and
handling at Seepadole Branch.
4.3.1.a Product counseling
This department is responsible for providing the detailed information to its customers
regarding the prevailing products as well as informs the products going to be launched
in a days come. Internee is actively involved in product counseling during his
internship. The products that are provided in the Seepadole branch are divided into
two main headings. They are:
26

A) Deposits
Providing information regarding deposits is one of the ways of counseling the
customers. Moreover, handling the customers with care is also equally important.
There are various kinds of product provided by Seepadole branch. Various kinds of
deposit facility available at Seepadole branch are as follows:
1. Saving account
E-zee saving
E-zee students
Pariwar bachat
Normal savings
Lotus savings
Afnai bachat khata
Keta keti bachat khata
Saving bonanza
2. Fixed account
3. Current account
4. Call deposit
B) Credits
A contractual agreement which a borrower receives something of value now and
agrees to repay the lenders at some later date. Any time when an individual finances
something with a loan (such as an automobile or a house), they are using credit in that
situation. Also credit refers to the borrowing capacity of an individual of company.
The various loan provided by the seepadole branch are:
Home Loan
Vehicle Loan
Bank overdraft

4.3.1.b Service counseling


CSD is responsible in providing information about various services provided by the
bank to the customer. For that purpose internee is used.
Various forms of services provided by the Seepadole branch are listed below:

365 Days Banking


E-banking
Any Branch Banking Service (ABBS)
Tele Banking Services
Statement request
Cheque pad request
27

Remittance
Trade finance
Utility payment
Lockers
Automated Teller Machine (ATM)
College and school payment
Evening counter

4.3.2 Accounts operation


The second function of CSD as mentioned in the figure above is accounts operation.
In the accounts operation mainly two major functions are done. They are:
4.3.2.a Accounts opening
Accounts opening simply refer to open account by any individual, or by any company.
There are 15 to 20 accounts opening per day in Seepadole branch. The range may be
increased as per duration of schemes provided. Internee is mainly busy in opening a/c
of individual.
Process of opening new account
The process followed by Seepadole branch to open an account is listed below:
1. The customer is provided an account opening form to fill up.
2. The customer must bring the copy of their citizenship, photos and
should have an introducer.
3. After the form is filled, given to the CSD department.
4. The staffs of CSD make the entry of the account holder in the system
used i.e. Finacle.
5. After the entering it is verified by the head of CSD department, the
account is assign to the account holder.
6. Then the account holder is asked to deposit the money as per the type
of account he/she has opened.
7. At last after he/she deposit the money in their account the holder is
then the member of the bank.

28

Only by the mentioning the steps may not be understandable to every customer or
others. So by the following figure the process of account opening can be more clearly
understood to everyone.

Fill
New Customer

Application
Form

Provides to

Staffs of CSD
department

Reject

Makes

No
Verified by
Head of
CSD
department
Yes
Accept

29

System (Finacle)

Open a new account

Fig 4.2: Diagrammatic presentation of account opening process at NIBL (Seepadole Branch)

Document required while opening an account


As we know there are different types of account provided to customer by NIBL. So as
per the types of account the document is needed. The document required to open
different types of account is mentioned below:
A. Individual A/C
1. Personal NPR Account (For Nepalese Citizen)

Certified True copy of Identification Document viz Citizenship, Passport,


Driving License, NG/N Official IDs

Two Photographs of Account Holder.

Discharge relating to instruction by fax.

Introduction by existing account holder.

2. Joint NPR Account (For Nepalese Citizen)

Certified True copy of Identification Document viz Citizenship, Passport,


Driving License, NG/N Official IDs

Two Photographs of Account Holder.

Discharge relating to instruction by fax.

Introduction by existing account holder.


30

3. Personal NPR Account (For Indian Citizen)

Certified True copy of Identification Document viz Citizenship, Passport or


Registration Certificate from Indian Embassy.

Two Photographs of Account Holder.

Discharge relating to instruction by fax.

Introduction by existing account holder.

4. Personal NPR and FC Account (For Foreign National)

Certified True copy of Passport

Certified True copy of Valid Visa other than Tourist Visa and Entry Stamp.

Two Photographs of Account Holder.

Discharge relating to instruction by fax.

Introduction by existing account holder.

5. Joint NPR Account (For Foreign National)

Certified True copy of Passport

Certified True copy of Valid Visa other than Tourist Visa and Entry Stamp

Two Photographs of Account Holder.

Discharge relating to instruction by fax.

Introduction by existing account holder.

B. Business A/C
1. NPR Account of Company (Registered in Nepal)

Certified true copy of renewed Company Registration Certificate.


31

Certified true copy of renewed Income Tax or VAT Registration Certificate.

Certified true copy of Memorandum and Articles.

Certified true copy of board resolution for opening and operation of account.

Certified list of present Board of Directors.

Copy of Certificate of Commencement of Business, in case of Public Ltd.


Company.

Request Letter to open the A/C.

Discharge relating to instruction by fax.

Certified True copy of Identification Document viz Citizenship, Passport,


Driving License, NG/N Official IDs of Account Operators.

Two Photographs each, of Account Operators.

Introduction by existing account holder.

2. Account of Clubs, Societies and Associations (NPR)

Certified true copy of Registration Certificate.

Certified true copy of by-laws.

Copy of resolutions to open and operate the account.

Request Letter to open the A/C.

List of office bearers.

Affiliation Certificate with the social welfare council or other council


concerned.

32

Discharge relating to instruction by fax.

Certified True copy of Identification Document viz Citizenship, Passport,


Driving License, NG/N Official IDs of Account Operators.

Two Photographs each, of Account Operators.

Introduction by existing account holder.

3. Proprietorship Account (NPR)

Certified true copy of renewed Registration Certificate.

Certified true copy of renewed Income Tax or VAT Registration Certificate.

Request Letter to open the A/C.

Discharge relating to instruction by fax.

Certified True copy of Identification Document viz Citizenship, Passport,


Driving License, NG/N Official ID of Proprietor.

Two Photographs of Account holder.

Power of Attorney, If Yes

Power of Attorney form duly filled up and signed.

Certified True copy of Identification Document viz Citizenship, Passport,


Driving License, NG/N Official ID of Power of Attorney Holder

Two Photographs of Power of Attorney Holder

Introduction by existing account holder.

4. Account of Partnership (NPR)

33

Certified true copy of renewed Registration Certificate.

Certified true copy of renewed Income Tax or VAT Registration Certificate.

Certified true copy of Partnership deed (agreement).

Request Letter to open the A/C signed by all partners mentioning opening and
operation of account.

Discharge relating to instruction by fax.

Certified True copy of Identification Document viz Citizenship, Passport,


Driving License, NG/N Official ID of Account Operators.

Two Photographs each, of Account Operators.

Introduction by existing account holder.

4.3.2.b Account Closing:


Account closing is the important task to be done under account operation. As the
account is opened, it is being closed also due to various reasons. But the maximum
reason customer close their account was going outside of the country for long
duration. The charge for account closing within the six months opening is Rs. 1000
whereas Rs. 500 is charged after six months. Internee fill up the form of a/c close
asking reason of closing the a/c.
Procedure to close the account:
1. The customer is ask the reasons for closing the account and tries to
convince not to close by explaining the benefits of the account and the
charges taken for closing the account.
2. If the customer willing to close the account must fill up the account
closing form specifying the reason.

34

3. After submission of the form to CSD it is confirmed from various


department that the customer is not enjoying any sort of facility from
the bank at present.
4. The client is then asked to return all his account related belonging like
ATM card and the cheque book.
5. Then finally the account of the applicant is closed with certain charges.
Points to ensure while closing the account:

Account closing request has been signed by the authorized signatory.


Any due to/from the customer has been set off.
Unused cheque leaves and ATM card are received from the customers and

shredded.
Reason for account closing is received.
To the extent possible, authorized signatory should be asked to visit the bank
in personal.

Instead of closing the account, a customer can also shift his/her account. NIBL has
provision of shifting between different types of saving account. The customers can
change the scheme from lower minimum balance to higher minimum balance account
but if they want to change the scheme from higher minimum balance to lower
minimum balance then certain charge should be given to bank. The charge of scheme
change from higher minimum balance to lower minimum balance is lower than that of
closing the account i.e. Rs 300.

4.3.3 Distribution activities:


Most over there is staffs over the bank to distribute the cards or any other to the
customers. But if there is internee then the internee do the work. Internee distributes
the various requested documents and services to the clients. It reflects the genuine
operational efficiency of the CSD. Various documents that can get from this
department on request are:
4.3.3.a Account statement
Account statement refers to checking the status of customers account. Everyday
around numerous customers come for the request for account statement to know their
35

status of the account. The bank provides the statement only to the account holder after
they fill up the form and submitted to CSD. After the statement is provided to the
customer, the form is kept in the statement issue file in CSD which is done by
internee.

4.3.3.b Cheque book distribution


Clients, holding the minimum balance of Rs. 2500 can only issue the cheque book in
the Seepadole branch. Everyday customers requesting for the cheque book visits the
bank. The client has to fill up the cheque request slip available in CSD if he/ she is
requesting for the first time otherwise the cheque request slip attached in the previous
cheque book should be fill up. If cheque request slip is lost then client has to pay Rs.
300 charge for taking cheque book. The collection period of the cheque book from
CSD is 90 days. If client do not collect the cheque book within 90 days then Rs. 250
charges is taken by the bank. Every day the concerned information regarding the
distribution of cheque book is recorded in the cheque issue book which is done by
internee.
4.3.3.c ATM card distribution
Except for the fixed and call deposit the customer holding other account is provided
with an ATM card. They can use this card in various ATM counters all over the
country to withdraw cash and even for other activities like balance inquiry, pin
change, NTC prepaid recharge etc. While issuing ATM card the concerned person
must come to receive it and his/her signature is verified by the CSD staff. After
issuing card internee record it in ATM issue book.

4.4 Other activities done in CSD of NIBL Seepadole branch


4.4.1 Handling Telephone Calls
CSD department is one of the busy departments of the bank. Telephone calls never
stop ringing, as the responsible staff those calls has to be received and dealt according
to its necessity. But when staff is busy internee receives the call and important calls
36

are passed to other department and rest should be handled by self by answering those
calls and providing them solution.
4.4.2 Providing balance statement
Balance statement shows complete transaction of a customer of deposits, withdrawals
and final balance. These are confidential information so statements are provided only
to the account holders, in case of any organizations letter mentioning about providing
balance statement along with companys stamp are must. Internee helps in providing
balance statement to the customer in the supervision of seniors. Customers can
produce their balance statements from any branches of NIBL.
4.4.3 Recording Cheque book issue, debit card issue
In bank there are various books maintained which may be related to cheque book
issue, debit card issue, for birthday cake etc. These books are filled up by internee for
future reference of the activities. It is the duty of the internee to record the cheque
book issue and debit card issue everyday.

4.4.4 Handling Photocopy machine


To open different a/c photocopy of citizenship are required and sometime to issue
cheque book also ids photocopy may be needed. So, for that internee is send to do
photocopy of necessary document.
4.4.5 Preparation of Cheque
Cheques are just like paper cash. Customer who has finished cheque books can ask
for another by filling up the cheque request slip. Then new cheque book is prepared
by internee. Internee also goes to the senior staffs department for authorized
signature in cheque book. After that customer has to sign in cheque issue book then
internee provide cheque book to the customer taking permission of staff.
4.4.6 Providing Information to the Customers
CSD aims to help the customer in every possible way, by listening to their grievances,
providing information on account balances, issuing ATM cards, feature of account etc.
37

Internee provides information about various products and services to the customers.
Thus in a sense, Customer Service, is an information desk which provides information
to the customers.
4.4.7 Fill up the cash/cheque deposit voucher
It is not necessary that all customer of bank are educated. Many uneducated people
are also the customer of bank who doesnt know to fill up the cash/cheque voucher.
So to fill up that voucher they search for internee service. Most of time internee is
busy in filling up the cash/cheque deposit voucher.
4.4.8 Issue of Debit card
For getting new debit card customer has to fill up a form and has to pay Rs 250. After
arriving the debit card from card department of NIBL, CSD issue it to the concern
customer after verifying properly.
4.4.8.1 Responsibilities Assigned and Discharged in Card Processing:
Creating a card and making it available to customers consisted of a stepwise process.
The internee got an opportunity to observe each step thoroughly and take active
participation in those steps. The different responsibilities that the internee had
undertaken during the internship related to card issue are as follows:
i) Receiving, Recording and filing Application forms of debit card
The account holders who want to have the debit card fill up the application form in
CSD. For the recording of these forms Finacle is used by the staff. After that the data
input to Finacle are verified by concern authority. These forms are send to card center.
Internee helps the customer to fill up the form of debit card.
ii) Scanning
Scanning is the only job which is not done by the staffs but done by interns. Scanning
of the photographs and signature in the form is necessary since these are to be
embossed in the Debit card. While providing the card, verification is done by looking
at the photo and the signature in the card.
iii) Providing cards and pin code to customers

38

Internee searches the card in the boxes as ordered by senior as per the serial number
given to the card. Then internee record issue of card in card issue book and provided
cards and pin code to the customers.
4.5 Felt/observed gap:
Knowledge gained from the academic courses seemed to be totally difference in
practice. Although there is huge gap between theory and practice, concept of theory is
essential in the workplace. Literature is the base to perform any task in the working
environment. Socio-Cultural factors, interpersonal relationship seems to be simple in
theory but in the practice maintaining interpersonal relationship and mixing with
society is crucial task. Dealing with various kinds of customers effectively can be
sharpen through the practice. Depth knowledge from book about customer
relationship cannot be as effective as that in practice.

CHAPTER FIVE

CONCLUSION AND LESSON LEARNT

5.1 Conclusion
Even though Nepal is one of the least developed countries in the world, banking
business is rapidly developing. Banking sector plays an important role in
commencement and development of industry. Therefore there is growing need for the
development of the financial institutions in the country which may be fulfilled by
banks. Nepalese financial system, basically banking business, has broadened in
number and diversified in modern financial instrument
NIBL has customized its services according to the needs and wants of the customers.
Majority of the customers are satisfied with the services provided by NIBL. The
major reason behind it was cooperative and responsive staff.
39

From above analysis it is clear that NIBL is one of the well established and leading
commercial bank of Nepal which aims to serve its valued customers through quality
and advancement of its services throughout the nation. The bank is widely providing
its financial services through largely extended network. During internship period,
Intern got an opportunity to gain an in depth knowledge of the banking sector and
scrutinize its various aspects. Internship favored him to get the practical acquaintance
of the bank and its overall operation system. Intern observed the functional activities
of CSD and understood the corporate culture. Prior to internship, him knowledge was
limited within the books. At NIBL Intern was fully guided by all the staff in acquiring
the practical knowledge. It not only provided him the experience of functional
activities but also to let him know about the informal organizational relationships. The
internship added sense of responsibility to him while performing any task. The
experience of internship was incredible which boosted his confidence level and
enhanced his inter-personal communication skills. It developed interaction skills and
shaped up his personality too.
Therefore, intern is very much pleased to conclude that NIBL is one of the best banks
with friendly environment and excellent customer service.

5.2 LESSON LEARNT


The duration of internship lasted for around two months and during the course of the
internship there were various lessons that intern was able to learn. This internship was
a great opportunity for intern to face real-life work scenarios after four years in the
classroom; and it must be said that it was a great learning experience for him. Some of
the Lessons intern learnt during his time as an intern at Nepal Investment Bank
Limited could be summarized as follows:

Learn basic activities and operations of CSD and its role in overall functioning

of a bank.
Learn to use theoretical knowledge into practical working environment.
Learn to deal with various type of customers.

Learn the importance of the time management and the need of the
communication skills.

Learn the culture of bank.

40

Learn to use various office equipments like photocopy machine, scanner,

stapler, printer, cheque writer etc.


Learn various procedures involved in the opening and closing of the different

accounts.
Learn the importance of inter-personal communication skills in professional

life.
Learn the procedures of filing and indexing of different document.
Learn working system of various other departments of the bank.

Learn authority and responsibility relationship among the various managerial


and subordinate level in the hierarchy of the commercial banks.

Learn the activities related in issuing cheque, issuing ATM cards, phone
handling etc.

Gained basic knowledge on operating Finacle Software.

Learn that one should not only know to attract a customer but also should be
able to retain them.

41