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CHAPTER I ORGANIZATION PROFILE

1.1 Introduction of Fewa Bikas Bank Limited

Fewa Bikas Bank Limited (FBBL) is a National Level Development Bank formed in 2072 B.S. After the successful merger of former Bishow Bikas Bank Limited and Fewa Finance Limited, a new National Level financially stronger “B” class bank was formed with name Fewa Bikas Bank Limited. It has been registered under Company Act 2063(B.S.) as a limited company with a mandate to operate as a Development Bank within the framework of Bank & Financial Institution Act 2063. The head and corporate office of the bank is situated at Chipledhunga, Pokhara, Kaski, Nepal. It is established with the aim of collecting idle sources of funds and lending it to productive sector by providing employment opportunity for overall economic development of the country through effortless reliable and quality banking services. Groups of successful entrepreneurs and professionals such as industrialists, academicians, businessmen, ex-servicemen, bankers, etc, are the promoters of FBBL.

Fewa Bikas Bank has 28 branches operating its services throughout the Central, Western and Eastern region of the country. In the midst of cutthroat competition FBBL provides top notch services whether it comes to financial needs or different product or services. It has total authorized capital of Rs. 1 Arab, issued capital Rs. 81.62 crores and paid up capital Rs. 81.20 crores. FBBL through its operation acts as a mediator between surplus units and deficit units to provide flow of funds that generates profits for self existence. Thus, it promotes the flow of money from those who have surplus to those who need.

1.2 Vision, Mission and Objectives of Fewa Bikas Bank

Vision

“To established by proving prompt, easy banking services”.

Mission

“To provide related people as in text of time, the prompt, easy, quality, security and reliable bank as their own bank”.

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Objectives

Providing quality or reliable financial services to general people.

To develop in industrial trade and agriculture sector.

To eradicate poverty by mobilizing skilled labour and capital.

To create productive and employment business.

To help in strengthen well improve of nations economic.

To provide easy and finance services by corporate investment.

1.3 Major Markets and Customers

Fewa Bikas Bank has 28 branches spreading over 13 districts of Central, Western and Eastern development region of the country. It has 7 branches in Kaski district including the head office. The major market of FBBL is Western Development Region. All the people who have financial needs are the target customers of FBBL. The major focus of FBBL is urban areas of Nepal. It has designed its product and services from minors to Old age people for providing its services. It has offers all banking services from its existing branches. Its aim is to extent its market coverage by adding new branches in new market.

FBBL has both corporate and individual as their customers. An individual can operate both single as well as joint account. Customers are facilitating to operate saving account for minor below age 16 years by their parents through Bal Balika Bachat Khata. Elderly people are also focused through different saving head for account operation such as Jestha Nagarik Bachat Khata. An organization can also operate different account under heading call account, saving account and current account. Individual linked with organization are the key operator of the account.

1.4 Products and Services

Fewa Bikas Bank is established with the aims of mobilizing idle resources in productive areas after collecting from different scattered sources. It has offered different types of banking products and services to the people to fulfill their financial needs. The different types of products and services are Deposit, Loan and Advances, Locker Service, ABBS Service, SMS banking, ATM Service and Bank Guarantee. They are explained below in detail:

1.4.1

Deposit

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Deposit is the collection/saving of funds from consumers. FBBL facilitate deposit of funds from any branches of FBBL for immediate credit to account as per bank’s rules and regulations. It offers four types of deposit services. They are

i. Current Account

Current account is used for operating loan and advance payment of transactions. It doesn’t provide interest to the consumers. The amount deposit in current account is used for reimbursement of loan schedules payment and exceeding amount can be withdraw as per requirement of the customers. Current account can be opened in the name of individual (single or joint) and corporate house or business or organization.

ii. Saving Accounts

Saving accounts are suitable for inculcating the habit of saving among customers. FBBL offers liquidity for money and also earns interest. The interest is calculated on daily basis but interests are posted on quarterly basis. It provides free cheque book and ATM card facility (with service charge for card) for maintaining saving accounts. Saving accounts can be opened both in local and foreign currencies. Saving account can be opened in the name of individual (single or joint), minors (Children below 16 years) and corporate house or business or not for organization. The types of saving account facilities and the interest rates are given below:

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Table 1.1 Saving Deposits Interest Rates (Source: www.fewabank.com.np) iii. Fixed Deposit Fixed deposit refers to

Table 1.1 Saving Deposits Interest Rates (Source: www.fewabank.com.np)

iii. Fixed Deposit Fixed deposit refers to a saving account or certificate of deposit that pays a fixed interest rate until the given maturity period. The amount deposit under fixed deposit cannot be withdraw prior to the maturity or if it is withdraw then interest is charged against customers as penalty for access. For fixed deposit a customer must open fixed deposit account apart from normal saving account. The interest rates vary with maturity of the deposit amount. The details of interest rates are given below for fixed deposit:

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Table 1.2 Fixed Deposits Interest Rates (Source: www.fewabank.com.np) iv. Call Account Call account refers to

Table 1.2 Fixed Deposits Interest Rates (Source: www.fewabank.com.np)

iv. Call Account

Call account refers to saving account that can be called any time. The amount can be deposited and withdrawn at calls. There is no provision of interest on this type of deposits.

1.4.2 Loan Schemes

Fewa Bikas Bank Limited provides various loans and advance facility to the customers. It is designed to provide fund credit services to entrepreneurs, businessmen, industrialists and individuals. There are overdraft, term, easy, housing, personal, hire purchase, auto, education, agriculture, foreign employee, gold, SME, real estate, deprived sector, loan against FDR and loan against share as different types of loan offered by FBBL. For loan schemes, customers need income details and collateral for security purposes as per the types and nature of the loan. The details of interest rates under different heading of loans are given below:

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Table 1.3 Loan Interest Rates (Source: www.fewabank.com.np) 1.4.3 Locker Service Fewa Bikas Bank Limited provides

Table 1.3 Loan Interest Rates (Source: www.fewabank.com.np)

1.4.3 Locker Service

Fewa Bikas Bank Limited provides locker facility to individual and institutional customers who prefer to safe deposit valuable ornaments as well as important documents to evade the probability of theft, burglary and fire. The Locker has been safest custody of the valuable goods with flexibility of time to store and take away when required. The cost details for locker services are given below

Security Deposit: Rs. 10000.00 (refundable)

Locker Size

Annual Cost (Rs.)

Small

2000.00

Medium

2500.00

Large

3000.00

Table 1.4 Annual Cost detail of locker service

(Source: www.fewabank.com.np)

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Notes:

Depositors above Rs. 10 lakhs will get 50% discount on annual locker fee with no security deposit.

Structured Saving Depositors will also get 25% discount on annual locker fee with no security deposit.

1.4.4 ABBS Service

All the branches of Fewa Bikas Bank Limited are interconnected and are capable to provide online, real-time transactions to its customers. Customers can make deposits and withdraw from any branches of FBBL by issuing cheques.

1.4.5 SMS Banking

SMS banking is the modern service of Fewa Bikas Bank Limited. It provides information and notification about transactions with FBBL of the customers through messaging to their mobile phone. It allows customers to access their account information at their convenience simply through mobile phone. Customers can get information about their account by sending message to 5152. The service is currently available for NTC users only and notification about transaction is given only for transaction above Rs. 25000. Customers are charged for this services and need to activate service by filling form from the account holding branch.

1.4.6 ATM Service

ATM card is the alternative to withdraw cash from teller machine. FBBL provides ATM debit card that can be used at any SCT network ATMs to withdraw cash and also for payment at POS terminals in shopping more convenient. With ATM cards customers can access their account 24 hours a day and enjoy greater convenience to facilitate banking and financial needs. There are 13 ATM Terminals of FBBL located over Nepal. A customer can withdraw minimum amount of Rs. 500 to maximum of Rs.16000 per transaction. Also, a customer is allow to withdraw maximum amount of Rs. 50000 per day and 20 times of transaction per day.

1.4.7 Bank Guarantee

A bank Guarantee allow customers to offer customers, supplier and third parties a guarantee of payment to secure or leasing agreements without tying up working

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capital or affecting your other business activities. FBBL provides bank guarantee service to its valued customers.

1.5 Organization Design and Structure

Organization Design and Structure refers to the hierarchy and the framework around which the group is organized, the underpinnings which keep the coalition functioning. It’s the operation manual of how the people within organization are put together for work. It provides the detail of structure and describes the authority, responsibility, duties and power of members along with leadership and decisions. Fewa Bikas Bank Limited has its own organization design & structure with Board of members at top of the hierarchy to other staffs at the bottom of hierarchy along with their specified responsibility, authority and duties. The detail of FBBL organization is given below

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Board of Directors (7)
Board of Directors (7)

Chief Executive Officer

(1)

Chief Account Officer(1)
Chief
Account
Officer(1)
Regional Director(3)
Regional
Director(3)
Chief Loan Officer (1)
Chief Loan
Officer (1)
HR Manager (1)
HR Manager
(1)
Asst. Manager (3)
Asst.
Manager (3)
Chief Loan Officer (1) HR Manager (1) Asst. Manager (3) Loan Officer Information Accountant Operation
Chief Loan Officer (1) HR Manager (1) Asst. Manager (3) Loan Officer Information Accountant Operation
Chief Loan Officer (1) HR Manager (1) Asst. Manager (3) Loan Officer Information Accountant Operation

Loan Officer

Information

Accountant

Operation

Microfinance

Technology

officer

Officer

Dept Officer

Officer

Technology officer Officer Dept Officer Officer Branch Manager (28) Front Office Back Office Customer

Branch Manager (28)

Officer Dept Officer Officer Branch Manager (28) Front Office Back Office Customer Teller Remittance
Front Office
Front Office
Back Office
Back Office
Customer Teller Remittance Credit System Service Dept. Dept. Dept. Dept. Dept
Customer
Teller
Remittance
Credit
System
Service
Dept.
Dept.
Dept.
Dept.
Dept

Fig1: Organization Structure of FBBL

1.6 Financial Structure

The major financial structures of Fewa Bikas Bank Limited are describe below:

Capital Structure of FBBL

Share Capital

Amount

Authorized Capital

Rs. 100,000,000

Issued Capital

Rs. 816,215,400

Paid up Capital

Rs. 816,215,400

Table 1.5 Share Capital details

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Deposit Structure of F BBL

Deposit Structure of F BBL Deposit Structure Current Deposit 1% Call Deposite 22% Saving Depsoit 40%
Deposit Structure Current Deposit 1% Call Deposite 22% Saving Depsoit 40% Fixed Deposit 37%
Deposit Structure
Current Deposit
1%
Call Deposite
22%
Saving Depsoit
40%
Fixed Deposit
37%

Fig 2: Deposit Structure of FBBL

Loan Structure of FBB L

Loan Structure Real Estate 8% Other Loan Personal Home 33% Loan 19% Deprived Loan 3%
Loan Structure
Real Estate
8%
Other Loan
Personal Home
33%
Loan
19%
Deprived Loan
3%
Agriculture
Loan
Hire Purchase
Ter m
1%
13%
Lo an
Overdraft loan
3
%
20%
Fig 3:Loan Structure of FBBL

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Income Structure of FBBL Income Structure Commission Other Incomes 7% & Discount 1% Interest Income
Income Structure of FBBL
Income Structure
Commission Other Incomes
7%
& Discount
1%
Interest Income
92%
Fig 4: Income Structure of FBBL Expense Structure of FBBL Expense Structure Other Operating Expenses
Fig 4: Income Structure of FBBL
Expense Structure of FBBL
Expense Structure
Other
Operating
Expenses
13%
Employee
Expenses
12%
Interest
Expenses
75%

Fig 5: Expense Structure of FBBL

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Total Deposit & Loan Structure for last five years 1000 937 900 811 800 700
Total Deposit & Loan Structure for last five years
1000
937
900
811
800
700
600
500
379
400
311
317
265
300
227
192
177 157
200
100
0 0
0
Year
2067/68
2068/69
2069/70
2070/71
2071/72
Total Deposite (in crores)
Total Loan (in crores)

Fig 6: Total Deposit& Loan Structure of FBBL

Operating Profit for last five years

Operating Profit 3500 Operating Profit, 3300 3000 2500 2000 1500 1000 500 0 Year 2067/68
Operating Profit
3500
Operating
Profit, 3300
3000
2500
2000
1500
1000
500
0
Year
2067/68
2068/69
6069/70
2070/71
2071/72
Amount in Lakh

Fig 7: Operating Profit of FBBL

1.7 Organization Performance

Fewa Bikas Bank Limited has been recently formed after successful merger of Bishwo Bikas Bank and Fewa Finance Limited. It is on starting phase of being class “B” national level development bank. But their past history shows that they have good financial position as well as market share in Western Development region. After mergering, the share capital has increased by 21.90%, and increase in net profit by 26.62%. the earning per share was increased to 21.87 per share. It provides all the

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banking services provided by other development banks of Nepal. It has operated special Gold/Silver loan department to facilitate customer with service of loan against gold and silver. It has introduced SMS banking, locker service, bank guarantee, ABBS and ATM service beside the core banking services.

FBBL is bridging the flow of funds from surplus unit to deficit unit for investment in different sectors of business, tourism, hydropower, real estates, agriculture, industries, etc. It is creating its own core value of banking among the customers through its services. The overall performance of FBBL is being good after merger as their market coverage has increased with increased branch number and facility. Therefore, although it is in starting phase of banking as Class B bank, they have proved themselves as best banking service provider while operating individually.

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CHAPTER II JOB PROFILE AND ACTIVITIES PERFORMED

2.1 Activities Performed in the Organization

Fewa Bikas Bank Ltd provides its banking services through operating from various departments such as Customer Service Department (CSD), Teller Department, Credit Department, Gold & Loan Department and Remittance Department. All these departments perform their services in coordination and as a whole contribute overall performance of the bank.

During my internship period, I was posted in Customer Service and Remittance Department. So, I worked within these two departments from the front desk. In Dulegaunda branch of Fewa Bikas Bank Ltd, the front desk provides the services of both CSD and Remittance Department. My internship period was passed in learning skills and activities to be performed in these departments. The details of activities performed in each department are given below:

2.1.1 Customer Service Department

CSD is the service desk where customers get contact to get general information about product & services of bank, their accounts and others. It is the point to provide help to customers through different activities. It provide the services of account opening/closing, ATM service operation, SMS service operation, account maintenance and information about interest rates on different account headings. It further provides the services of filling up deposit voucher, issuing and filling up cheques, provide the statement of customer transactions and fixed deposit services.

The following activities are performed within this department:

Opening and maintaining record of new accounts

Providing information about account product and services of the bank

Issuing a Cheque book to customers

Making approval of Cheque from Managers desk

Providing information regarding interest rates

Filling up deposit vouchers and cheques of customers

Providing information about the account balance

Processing for ATM service operation to existing and new customers

Processing for SMS service operation to existing and new customers

Issuing ATM cards and processing for ATM renewal

Providing account statement of banking transactions

Keeping record of Opening/closing of account, Cheque issuances, ATM issuances and Statement issuances in respective

Handling telephone calls and enquiries of customers

Solving problems related to accounts, ATM and Cheques

Closing of accounts

2.1.2 Remittance Department

This department is responsible for payment processing of received remit and transfer processing of sending money within and outside the country. This department provides the services of transferring and receiving funds through web remit such as IME, Prabhu Money Transfer, Reliable Remit, Western Union, City Express, Himal Remit, Nabil Remit, Prithivi Express, Money Gram and more.

The activities performed in this department are given below:

Preparing schedules and journals for outward remittance

Checking the secret keys brought by customers for remitted money

Collecting and verifying required information of the customer through citizenship/License/Passport

Processing the payment/transfering through web form filling

Printing the processed data and verifying it for payment/collection of amount from Teller department

Keeping record of remitted transactions on registers

Filing of remitted and customer documents

After working in the front desk for CSD and Remittance department, I have experienced the real banking activities which build up confidence in dealing and handling customers that has developed good interpersonal skill, patience, emotion handling and relationship with customers. The basic learning after working in front desk are:

Filling up the form of new bank account

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Making new account entry in the system

Printing Cheques and Statements of banking transactions

Account enquiry in the system

Process of remitting money through web

Filling up the forms in web for remittance

2.2 Problems Solved

During my intern at Fewa Bikas Bank Limited, I was posted to Customer Service Department and Remittance Department that provide service through front desk. Customer service department has key role of handling customers and their problems. Customers comes with problem of account related problem such as cheque writing mistakes, ATM card lost, ATM pin lost/forget, Dormant account, cheque lost, wrong secret pin number of remittance, ATM transaction error and other transaction related problems. Customer Service department is responsible to handle these problems. Being intern I was supposed to assist CSD officer to solve these problems. I was supposed to write new cheques, correcting the mistakes on cheques, making signature of customers and giving instruction of handling cheques. For ATM related problem, I was supposed to fill up forms for new ATM card, new pin number and helping customers to change pin number of customers through ATM Machine. For remittance related problems, helping customer to take and give correct secret number from remitter. I was supposed to fill up form for dormant account and make customer verification. I was supposed to help CSD officer to reduce burden and solve customer problems for delivery of quality service to the customers

2.3 Intern’s Key Observation

My internship period was a key opportunity to learn and observe all the banking activities. It was an opportunity to observe how we need to dealt with people to satisfy their need with our services. The important observation was related to behavior required to behave with customers through sincerity in work, respect to other, working under organization policy and remain in discipline for ethical corporate behaviour. Some of the key observations are:

Role of different department in overall organization performance.

Employee behavior and customer response and reaction towards employee action.

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Customer handling as service encounter affects the perception toward bank and fulfilling their financial needs with proper financial services.

Customer satisfaction and loyalty toward banking services.

Employee motivation and their commitment toward achieving organization goals.

Key factors of organization success like employee behaviour, customer satisfaction, delivering quality services, etc.

Understanding the difference between the class room theoretical learning and the real working experiences.

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CHAPTER III

LESSONS LEARNT AND FEEDBACK

3.1 Key Skills and Attitudes Learnt

My internship of eight weeks period was really a good opportunity to learn a lot of skills. It has provided the difference of theoretical knowledge and the real life working environment. I was able to materialize my theoretical knowledge in the real working environment. It has provided me different experiences of working in real environment and opportunity of learning different skills. The experiences of working in a team help me to understand how an organization can be handled by corporation and coordination of the team members. I understand the essential to be peace, hard working, patience, cool, innovative and adaptability are for successful handling of customers and their problems. I also understand the importance of technical skills, interpersonal skills, communication skill, logical skill and diagnostic skill in performing jobs and interacting with customers. The key skills and attitudes that I learned during my intern are:

Interpersonal and Communication Skills:

To work inside an organization, interpersonal and communication skill is must, employee need to communicate with each other and with customers for delivery of services and complete the tasks. So, during my internship I was able to learn such skill about how to communicate with customers and coworkers.

Technical Skills:

I have learned how to use the system software of FBBL i.e. Pumori IV. The process of preparing cheque preparing stacks of transaction and recording files.

To work in a team in order to accomplish task through coordination and cooperation.

Coordination and cooperation between departments for better organization performance.

Customer satisfaction and retention through delivery of quality services is essential for organization success.

Employee performance, patience, behavior and their motivation factors affect overall organization performance.

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3.2

Feedback to the Organization

Based on my working experience in FBBL and its financial activities, I would like to provide the following feedback:

There is intense competition for providing similar service in banking sectors of Nepal, FBBL should make much more effort to bring new ideas, schemes, plans, latest technology, skilled personnel and excellent management team.

FBBL should focus on service encounter and customer expectation from bank and employees as service encounter that moment of truth that determine customer level of satisfaction to the employee reaction and behaviors towards customers.

FBBL should adapt latest technology for delivery of fast and reliable quality services to its customers. The current technology and software are outdated and should use proper security software for the customer databases.

FBBL should add more facilities to its existing services like online banking transactions, sms banking should be extended through more telecommunication network.

FBBL should focus on proper promotion of the bank through advertising campaign, publicity and public relation.

FBBL should focus on Corporate Social Responsibility activities.

FBBl should focus on employee development program and motivation programs.

FBBL should increase its market coverage through adding new branches to new market.

3.3

Feedback to the College/University

I would like to provide following feedback to the college.

The college needs to supervise the student during the internship period by visiting the organization.

College should make association with organizations that allow students for internship and provide opportunity to gain real working experiences.

Student should be provided proper guidance and instruction for internship program relating to types of organization to choose.

The college should provide flexible schedule for students to go for internship program.

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