Contents

Letter of Accredition……………………………………………………………………………....i
Acknowledgements………………………………………………………………………………..ii
List of Acronyms………………………………………………………………………………….iii
List of Tables and Figures………………………………………………………………………...iv
Executive Summary……………………………………………………………………………….v
CHAPTER ONE .............................................................................................................................. 1
INTRODUCTION ........................................................................................................................... 1
1.1 Background ............................................................................................................................ 1
1.2 Goals and objectives of internship ......................................................................................... 2
1.3 Methodology .......................................................................................................................... 2
1.3.1 Organization Selection .................................................................................................... 3
1.3.2 Placement ........................................................................................................................ 4
1.4 Roles performed during internship ........................................................................................ 4
CHAPTER TWO ............................................................................................................................. 6
INTRODUCTION OF COMMERCIAL BANKS ........................................................................... 6
2.1 Introduction to Commercial Banks ........................................................................................ 6
2.2 Commercial Bank in Nepal .................................................................................................... 7
2.3 Current performance of commercial banking industry .......................................................... 7
2.4 Challenges faced by commercial banks ................................................................................. 9
CHAPTER THREE ....................................................................................................................... 10
INTRODUCTION OF ORGANIZATION .................................................................................... 10
3.1 Introduction to Nepal SBI Bank .......................................................................................... 10
3.1.1 Organizational Objectives ................................................................................................. 10
3.2 Organizational Structure ...................................................................................................... 11
3.3 Board of Directors of NSBL ................................................................................................ 11
3.4 Management team of NSBL ................................................................................................ 11
3.5 Branches of NSBL ............................................................................................................... 11
3.6 Shareholding Structure: ....................................................................................................... 12
3.7 Technology Initiative by Nepal SBI Bank ........................................................................... 12
3.7.1 E-Corner ........................................................................................................................ 12
3.7.2 Core Banking Solution (CBS)....................................................................................... 12
 3.7.3 Card Products ................................................................................................................ 13
3.7.4 Internet Banking............................................................................................................ 13
3.7.5 Mobile Banking ............................................................................................................ 13
3.7.6 Information Systems Security ....................................................................................... 13
3.7.7 NSBL INTOUCH Outlet .............................................................................................. 14
3.7.8 Nepal SBI Digital Village ............................................................................................. 14
3.8 Banking Services provided by NSBL .................................................................................. 15
3.8.1 Deposit Schemes ........................................................................................................... 15
3.8.2 Loans and Advances ..................................................................................................... 16
3.8.3 Remittance .................................................................................................................... 16
3.9 Financial Performance of NSBL .......................................................................................... 17
3.10 Capital Structure ................................................................................................................ 17
3.11 SWOT Analysis ................................................................................................................. 18
CHAPTER FOUR.......................................................................................................................... 19
ANALYSIS OF ACTIVITIES PERFORMED .............................................................................. 19
4.1 Activities performed ............................................................................................................ 19
4.1.1 Activities performed in IT Department:........................................................................ 19
4.2 Problems identified and solved ............................................................................................ 20
4.3 Observed gaps ...................................................................................................................... 21
CHAPTER FIVE ........................................................................................................................... 22
CONCLUSION AND RECOMMENDATION ............................................................................. 22
5.1 Conclusion ........................................................................................................................... 22
5.2 Lessons Learnt ..................................................................................................................... 23
5.3 Recommendation to the organization .................................................................................. 24
REFERENCES: ............................................................................................................................. 25
ANNEX 1 ...................................................................................................................................... 26
ANNEX 2 ...................................................................................................................................... 27
ANNEX 3 ...................................................................................................................................... 28
ANNEX 4 ...................................................................................................................................... 28
ANNEX 5 ...................................................................................................................................... 29
 CHAPTER ONE
INTRODUCTION

1.1Background
The current business world or professional scenario in general has evolved rapidly and
becoming more complex due to advancement of science and technology. Our country
Nepal is also progressing at a comparable manner and the amount of jobs are increasing
but also is becoming more challenging. Simply depending on the knowledge obtained
through the classrooms doesn’t develop the student’s ability to tackle the real-world
situations and thus, the internship programs conducted by Pokhara University (P.U.) aims
to develop the students’ real-world awareness and provide them first-hand experience of
how things are conducted in the corporate world. In addition, it will help the students earn
credit and increased marketability for the permanent job search while learning more about
a specific field and applying classroom knowledge in a corporate environment.

Internship is a specific duration of work experience obtained by an individual by working

on organization(s) with the primary objective being obtaining a real-life job experience and
acquiring relevant knowledge and skills in the respective field that would prove to be vital
for career growth and overall personality development. The internship program also helps
to understand what corporate culture really is and identify how different the real scenarios
are in comparison to the knowledge and skills obtained in a classroom environment.
Moreover, internship programs enable the intern to enhance his/her interpersonal and
commutation skills that helps in boosting the overall confidence level.

The students of Master’s in Business Administration (MBA – evening) have been assigned
to eight weeks of internship on a particular institution in the seventh trimester of the
academic program. It has been assigned by the Management faculty of Pokhara University
(P.U.) as a partial fulfillment of the requirement for the degree of MBA evening. Students
are required to prepare individual internship reports at the end of the internship program as
per the prescribed format and deliver a presentation in the classroom providing a synopsis
of what they actually did during the eight-week internship.

1
I completed my internship at Nepal SBI Bank Ltd. And the primary reason for choosing
this bank for my internship is because it’s amongst the pioneers of banking industry in
Nepal with 25 years of experience and I had a keen interest in knowing how it worked and
carries out its day to day administration. It is also unique in the sense that it is a subsidiary
of State Bank of India, the largest bank in India with a 23% market share in assets and was
also ranked 217th in the Fortune Global 500 list of the world’s biggest corporations in 2017.
Hence, this report is prepared through all the real-life experiences obtained from the time
working as an intern in the bank.

1.2 Goals and objectives of internship

The primary objective of this internship was to acquire as much knowledge as possible. As
I knew that an internship is an opportunity to learn which helps us put the theories we learnt
in the books into practice, I wanted to be able to indulge in every aspect of the work that I
was assigned to and help my seniors in the organization carry out their routine tasks. Since,
I was assigned to the I.T. Department of the bank, probably because of my Bachelors’
Degree in Information Technology, I had planned to achieve the following goals:

 To learn about the overall IT operations of Nepal SBI Bank Ltd. (NSBL).
 To acquire knowledge regarding different banking products and procedures.
 To develop effective communication and interpersonal skill.
 To understand how the corporate world performs and how customers are dealt with.
 To analyze the deviations between the theoretical knowledge obtained in the
classroom and the practical knowledge required to solve real world problems.
 To develop personal relationship with different professionals and enhance my
salability.

1.3 Methodology
The nature of the report is qualitative and quantitative, and the source is primary and
secondary. A systematic and scientific methodology always helps in collecting authentic,
accurate and reliable data. Thus, we must always consult with numerous channels such as
various people, booklets, news, newspaper and other source to gain correct data. This report
is maintained based on primary as well as secondary sources which are given below:

2
i. Primary data

Primary source of data is known as the data which are collected through observation and
direct contact. They are not derived from any other sources. The primary data are the
information collected during the internship period by the observation and involvement.
Most of the primary data are collected through the following sources:

 Day to day operation with staff of NSBL.

 Direct dealings with the customer queries in the bank.
 Personal involvements in the activities of bank.
 Observations of the bank and its environment.
 Daily activities during internship.

ii. Secondary data

The secondary data is one which has already been collected by a source other than present
investigator. Secondary data include both raw data and published summaries. It can be
written material such as; books, journal articles, newspapers as well as administrative and
public records. These types of data are collected through following ways:

 Annual report of Nepal SBI Bank Limited.

 Brochures and newsletters of Nepal SBI Bank Limited.
 Website of the bank.
 Different books and newspapers/billboards.
 TV and radio advertisement.
 Opinions of senior teachers and colleagues.

1.3.1 Organization Selection

It is always important to select the right organization for the internship. The nature of the
organization should provide a platform to the study area of an intern and hence, being an
MBA student, banking sector, especially a grade ‘A’ commercial bank would be of top
priority. It will not only allow me to learn various kinds of banking related subject matter
but also provide me a basis to get better jobs after completing my MBA degree.

3
Thus, Nepal SBI Bank Ltd. was selected to complete the internship program as it is one of
the leading commercial banks of Nepal and provides a well-built platform for my personal
career growth.

1.3.2 Placement
Throughout the eight-week internship program, I was placed in the ICT Department of the
bank at the Corporate Office of the bank, located at Kesharmahal, Kathmandu. The
department allowed me to experience real-life problem-solving scenarios related to
different hardware/software required in a bank.
Working in other department was not allowed and I specifically performed IT related tasks
as given by my supervisors. The supportive and friendly environment in the organization
helped me excel at my tasks and provided me immense opportunity to learn many new
things.
1.3.3 Duration of the internship
Duration of the internship has been defined for eight weeks as prescribed by Pokhara
University. I completed internship in Nepal SBI Bank Ltd. within these eight weeks and
performed various task as per the department.
Department ICT Deparment

Duration 8 weeks
Date 13 May 2018 – 7 July 2018
Work hours 9:30 AM – 5:00 PM
Supervisor Mr. Mithlesh Chaudhary (Senior IT Officer)

1.4 Roles performed during internship

Information Technology (IT) is the backbone of any organization, especially the banking
sector. It is an infrastructure without which banks cannot perform its core banking activities
and provide its services to the customers. Hence, it is quite important for all organization
to strengthen its IT support to provide excellent customer service, with timely and accurate
delivery of banking services.

The IT Department is responsible to facilitate the branches, regional offices and

departments to perform their activities as smoothly as possible. Maintaining the network

4
and link uptime, monitoring different hardware/software are some of the core functions of
the IT Department. Hence, I helped my seniors perform the following tasks in the
department:

 Handling queries of staffs and customers.

 Providing remote assistance to branch offices for different hardware/software.
 Handling issues related to Mobile Banking along with documentation and filing.
 Monitoring antivirus program to ensure all the workstations are fully protected.
 Reconciliation of mobile banking payments.
 Support for applications such as ECC/IPS, Prabhu Money Transfer, Western
Union, etc.

1.5 Limitations of the study

The duration of internship program is for eight weeks which is completely not enough to
learn every activity of the bank. Thus, time constraint is the main limitation of the study.
Other limitations are listed as follows:
 Despite using both primary and secondary sources of data, accuracy is still
compromised due to security issues of the bank. Most of the subject matter were
kept confidential as per the bank’s policy and hence, limited the ability to analyze
critical facts and issues.
 The obtained information was only limited to Nepal SBI Bank; information of other
banks was not possible.
 There was a huge gap between the requirement of practical knowledge and the
theoretical knowledge obtained in the classroom, limiting the ability to analyze and
dissect information.
 As I was only placed in the IT Department of the bank, it confined my area of study
with little to no exposure to the core banking activities.
 As I was only an intern, I wasn’t given complex task that could really enhance my
skillset. Most of the job were quite clerical and repetitive in nature that was
mundane and tedious.
 As the bank’s staffs were quite busy with their own works, they had very little time
to provide proper guidance

5
 CHAPTER TWO
INTRODUCTION OF COMMERCIAL BANKS

2.1 Introduction to Commercial Banks

In simple words, Banking can be defined as the business activity of accepting and
safeguarding money owned by other individuals and entities, and then lending out this
money to earn a profit. However, with the passage of time, the activities covered by
banking business have widened and now various other services are also offered by banks.
The banking services these days include issuance of cards, safe custody of valuable items,
ATM services and online transfer of funds.

The commercial banks are those banks collects and becomes a repository of the savings of
community and allocates those funds for productive use. They activate the idle money to
the different areas where further income can be generated. They supply the financial needs
of modern business by various means. Most of the banks in the world are found established
with a view to finance and help in prospering trade, industry and commerce. Thus,
commercial banks perform distinct functions like acceptance of deposits, advancing loan,
financial agents, etc.

FIG 2.1: Functions of Commercial Bank

6
2.2 Commercial Bank in Nepal
Banking and Finance has seen a meteoric rise in Nepal in recent years and is regarded as
one of the primary drivers of economy in the country which is dominated by high trade
deficit, illiteracy and poverty. As the level of savings and investment is generally low due
to poor economic condition, banking in Nepal has been facing a lot of problem accepting
deposits and making huge investments specially when there are more than 70 financial
institutions competing in the same limited space.

In Nepal, Nepal Rastra Bank is the central bank of Nepal. Nepal Rastra Bank, the governing
body of banking and financial institution has categorized the bank and financial institution
in four distinct categories. i.e. ‘A’ Class, ‘B’ Class, ‘C’ class and ‘D’ class institutions.
Commercial banks are categorized under ‘A’ class banks in Nepal and there are a total of
28 banks categorized under Class A. These categories of banks in Nepal differ according
to capital and service provided by them.

In today’s scenario, commercial banks are in the forefront of providing huge economic
boost in Nepal, where almost all 28 Grade A commercial banks make substantial profits
and creating many job opportunities in the country.

2.3 Current performance of commercial banking industry

The Fiscal Year (FY) 2074/2075 ended on 16th July 2018 but the commercial banks of the
country delayed their publication of financial reports due to which the investors faced
difficulty in decision making. However, after the financial reports has been published, and
it can easily be identified that Nabil Bank Limited was once again on top of the food chain,
as it managed to post the highest net profit of Rs. 4.05 arba, with Agriculture Development
Bank Limited (ADBL) on the second spot with net profit of Rs. 3.67 arba followed by
Nepal Investment Bank on third with 3.58 arba. The industry average net profit of the 27
commercial banks is Rs 1.81 arba. 11 commercial banks have net profit above the industry
average. Remaining all banks have net profit below the industry average. However, almost
all banks have posted profits higher than the fiscal year closing of the previous year. Thus,
the detail of the performance of all banks are provided in the table below:

7
Company Name Symbol Net
Profit/Loss
(in arba)
Nabil Bank Limited NABIL 4.05
Agricultural Development Bank Limited ADBL 3.67
Nepal Investment Bank Limited NIB 3.58
Nepal Bank Limited NBL 3.40 Above Industry
Everest Bank Limited EBL 2.54 Average
Himalayan Bank Limited HBL 2.47
Global IME Bank Limited GBIME 2.16
Standard Chartered Bank Nepal Limited SCB 2.07
Nepal SBI Bank Limited SBI 1.94
Prime Commercial Bank Limited PCBL 1.89
Siddhartha Bank Limited SBL 1.85
NMB Bank Limited NMB 1.81
Sanima Bank Limited SANIMA 1.69
Bank of Kathmandu BOK 1.55
Citizens Bank International Limited CZBIL 1.41
Sunrise Bank Limited SRBL 1.31
Machhapuchchhre Bank Limited MBL 1.21
NIC Asia Bank Limited NICA 1.19
Laxmi Bank Limited LBL 1.17
Prabhu Bank Limited PRVU 1.13 Below Industry

Nepal Bangladesh Bank Limited NBB 1.11 Average

Nepal Credit & Commercial Bank Limited NCCB 1.07

Mega Bank Limited MEGA 1.04
Kumari Bank Limited KBL 1.00
Janata Bank Nepal Limited JBNL 0.93
Century Commercial Bank Limited CCBL 0.88
Civil Bank Limited CBL 0.65
Industry Average AVG 1.78
Source:www.sharesansar.com

Table 2.1: Net Profit/Loss of Commercial Banks of Nepal for FY 74/75

8
2.4 Challenges faced by commercial banks
In a small economy like Nepal, the existing 28 commercial banks of the country faces many
challenges while carrying out its activities and achieving the targeted goals. Some of the
challenges faced by the commercial banks of Nepal are:

 Only limited people have access to banks. And as there is no compulsion for
transactions to go through banks, only the urban areas of the country have
convenient banking facilities readily available.

 Nepal still have frequent change in political parties and hence, numerous changes
are made in the financial world of the country. Due to this political instability along
with the sub-par economy, banks face immense difficulties in mobilizing money.

 There is high trade deficit and inflation in the country which results in numerous
financial problems. This has direct impact on the organizations such as banks,
which primarily depends on financial stability of the country.

 Nepal is a developing economy and all the available banks and financial institutions
competes in the same small space. Finding new markets is both opportunity and
challenge for banks.

 The growth of manufacturing industry is very slow. There are few sectors that seek
huge amount of loans from banks. Similarly, collecting deposits has also become a
major issue since Nepalese people invest on land, house or shares.

 Lack of trained manpower and non-specialized employees lowers organizational

efficiency.

 Lack of fruitful working environment from the government.

 Slow decision-making process due to different formalities imposed by the central

bank.

 Despite the rise of ebanking, mobile banking and other technology, banking in
Nepal is still primitive and lacks sophisticated banking instruments.

9
 CHAPTER THREE
INTRODUCTION OF ORGANIZATION

3.1 Introduction to Nepal SBI Bank

Amongst of the 28 grade ‘A’ commercial banks in Nepal, Nepal SBI Bank Ltd. is one of
the leading commercial bank in the country, providing a range of facilities to the general
public. Nepal SBI Bank Ltd. (NSBL) is a subsidiary of State Bank of India (SBI) having
55 percent of ownership. The local partner viz. Employee Provident Fund holds 15% equity
and General Public 30%. NSBL was established in July 1993 and has emerged as one of
the leading banks of Nepal, with 869 skilled and dedicated Nepalese employees working
in a total of 83 outlets, which includes 72 branches, 7 extension counters, 3 Regional
Offices and Corporate Office. With presence in 39 districts in Nepal, the Bank is providing
value added services to its customers through its wide network of 110 ATMs (including 2
Mobile ATMs and 4 CRMs), internet banking, mobile wallet, SMS banking, IRCTC Ticket
Online Booking facility, etc.

The mission of the bank is to provide High quality, reliable and innovative financial
solutions and its vision is to be the most preferred bank for a transforming Nepal.

3.1.1 Organizational Objectives

 To open branch offices in rural areas of the country as per the instruction from the
central bank – Nepal Rastra Bank and provide banking services in underdeveloped
sectors.
 To continue to research and develop new banking products and services that would
make banking in general more convenient.
 As banking is a service industry, providing unprecedented customer service has
always been a top priority for NSBL and help boost its market share in the
competitive space.
 To leverage the technology platform and open scalable systems to achieve cost-
effective operations, efficient MIS, improve delivery capability and high service
standards

10
  To provide financial intermediary services through institutional investments and
healthy competition by mobilizing capital scattered in the country.
 To generate employment opportunities and contribute to the economic growth.

3.2 Organizational Structure

The organization structure of NSBL is shown in annex 2. This figure clearly shows that the
functions of Nepal SBI Bank had been divided into different departments as per their
relationship and this departmentalization will enable the organization to run smoothly.

3.3 Board of Directors of NSBL

The Board of Directors (BOD) constitutes six members. They are is responsible for
formulation of vision, mission and objective of the organization. The current chairperson
of NSBL is Mr. Sujit Kumar Varma. The names of the current Board of Director are shown
in annex 3.
3.4 Management team of NSBL
The management team of NSBL consists of all the senior level managers, who supervise
their sub-ordinates and guide them to accomplish their task efficiently. Management team
constitutes of eight members. The top-level management team of NSBL is shown in annex
4.

3.5 Branches of NSBL

There is a total of 83 outlets, which includes 72 branches, 7 extension counters, 3 Regional
Offices and Corporate Office spread across 39 districts of Nepal to provide banking
services to the people of the country. The details of the branches, extension counters and
administrative office are shown in annex 5.

11
3.6 Shareholding Structure:
Employee's
Provident Fund
15%

State Bank of
India
General Public 55%
30%

Fig: 3.1: Shareholding structure of NSBL

3.7 Technology Initiative by Nepal SBI Bank

3.7.1 E-Corner
The bank has been providing services through number of alternative channels such as
ATM, E-Banking, Mobile banking, CDM, Kiosks etc. All these utilities combined creates
a unique experience for the customers of the bank wherein the customers will be able to
enjoy services offered by the bank without any manual intervention at any time preferred
by the customer.

The e- corner outlet at Durbarmarg Main Branch, Kesharmahal, provides easy and hassle
free, technology products such as Cash Deposit Machine (CDM), ATMs and Self-Service
Kiosk (SSK) etc. for NSBL customers.

3.7.2 Core Banking Solution (CBS)

Nepal SBI Bank Has been using the Finacle Core Banking Solution software which is a
real time 24X7 account processing platform which has a layered Service Oriented
Architecture (SOA), Straight through Processing capabilities and web enabled technology.
On this core platform are integrated various value-added services like SMS/Mobile

12
Banking and Internet Banking in addition to ATM cards which is superior in terms of
security features and speed of processing data.

3.7.3 Card Products

Nepal SBI Bank offers various Visa branded debit card services to its customers and
subsequently upgraded the security features over the time. ATM cum Debit Card, Bharat
Yatra Card, VishwaYatra Card are the debit card products offered by the Bank and are
VBV (Verified by Visa) enabled, an extra layer of security that helps to prevent
unauthorized use of the cards while online shopping. Currently, the VishwaYatra Card is
chip based card and the Bank has already started issuing chip based debit card to its valued
customer. The old cards have now been completely replaced by chip based cards.

3.7.4 Internet Banking

NSBL has been providing highly secured internet banking service to its valued customer.
Under the same service, it has offered facility of fund transfer, mini/detailed statement of
accounts, utility bill payments, payment of IRCTC Indian railway online ticket booking
etc. In order to develop awareness and encourage customers to use E-banking facility for
quick and hassle-free banking experience, the Bank in time to time launches E-banking
mobilization campaign.

3.7.5 Mobile Banking

The modern technology based banking product and services like Mobile/ SMS Banking
has already been made available to the valued customer. This service of the Bank allows
its customers to view account balance, inquiry of exchange rates, banking hours, check
mini statement, transaction alert, fund transfer, utility bill payment, etc. NSBL has recently
upgraded the mobile banking application adding even more features and an attractive user
interface to keep the customer more in touch with their financial world.

3.7.6 Information Systems Security

NSBL is having a comprehensive IT and Information Systems (IS) Security systems to
control the threat and risk associated with IT enabled services which address all the
concerns including maintenance of customers’ confidentiality, security and integrity of
data. Bank’s data center where the Bank’s CBS database resides (both Primary and Disaster
Recovery Site) has acquired the accreditation for the international standard for Information

13
Security Management Systems. All the Banking applications of the bank are highly secured
have built-in security features like access control, data encryption and transmission through
secured channels as per the requirement of the application. The threat of virus is minimized
by having a centralized antivirus solution. Adequate Firewalls and Intrusion Detection
Systems are in place to prevent unauthorized access.

3.7.7 NSBL INTOUCH Outlet

In the era of Technological advancements, NSBL has been continuously taking steps to
upgrade the systems and processes and adopt world class technologies to facilitate banking
services to its customers in Nepal. One such initiative is the INTOUCH Outlet at Durbar
Marg, Kathmandu. The outlet not only provides Alternate channels to the customers for
banking but also helps in making paperless banking a reality. The outlet has a robot named
‘PARI’ who welcomes and greets customers visiting the outlet. PARI is the first robot to
be introduced in banking in Nepal.

3.7.8 Nepal SBI Digital Village

As part of the bank’s consistent effort towards financial inclusion and adopting
technological advancements for the banking in unbanked areas, Nepal SBI has rolled out a
new initiative “Nepal SBI Digital Village”. The project aims at transforming the selected
villages into cashless ecosystem by adopting safe, healthy and vibrant digital channels for
financial transactions. NSBL has launched similar initiative in Nepal and to begin with,
has identified a village “Jaharsing Pauwa” in Sankarapur Municipality, situated 20 KMs
north-east side of Kathmandu and launched the same accordingly amidst the program. The
village is inhabited by approximately 450 households with population of 2,200. Major
economic activities in the area are traditional farming and animal husbandry. The aim of
this initiatives is to ensure 100% financial inclusion with focus on migration to alternate
channels through PoS, ATMs, CDM/ CRM Mobile banking, Internet Banking which will
ultimately convert this village into a cash-less eco system. Further, to improve overall
living conditions of the people in the area credit linkages and coverage under deprived
sector has also been started and initiated.

14
3.8 Banking Services provided by NSBL
Nepal SBI Bank provides various banking services to its customers. Some of them are:

3.8.1 Deposit Schemes

The primary function of the bank is to accept deposits from the customers and provide
interest for their deposits. Nepal SBI Bank also provides a variety of deposit schemes for
its clients as per their requirement. Some of the important ones are:
 Nepal SBI Premium Savings Scheme
Savings account especially designed to take care of banking & savings
requirements of High Net worth Individuals customer. A minimum balance of Rs.
25,000.00 is necessary to be maintained and the customer gets free internet banking
services, free issuance of cheque book, unlimited deposit and withdrawal facility,
etc.
 NSBL Corporate Salary Package
Under this scheme, Corporate/MNC/Institutions/Establishments can open the
salary accounts of their employees for easy disbursement of salaries. Clients get
preferential interest rates on Fixed Deposits/RDs, waiver/concession in service
charges for ATM issuance, Locker facility, Mobile Banking, etc.
 NSBL Nari Bachat Khata
Savings account designed for Nepalese female above 16 years of age with an aim
to develop saving habits and to enhance self-determination among them. A
minimum of Rs. 500.00 is to be maintained in the account. Resident female above
16 years of age having citizenship certificate of Nepal are eligible for this scheme.
 Karnadhaar Bachat Khata
A special savings account designed for minor who is literate enough to read &
write, can sign uniformly. It is an opportunity to cultivate the savings habit from
childhood and become responsible to manage your spending, independently.
Account for children aged 10 years and above but below 18 years and a minimum
of Rs. 501.00 is to be maintained in the account.

15
3.8.2 Loans and Advances
Another service provided by NSBL is loan and advances to generate profit and assist the
economy. Types of loans are as follows:
 Corporate and Business Loans
The bank offers loans to large corporate and institutional customers including
public sector entities to meet funding requirements from service related to strategic
expansions, project finance etc.
 Convenient Loan (SME Loan)
This is a loan product designed to meet the needs of Small and Medium Sized
Enterprises in a very convenient manner to the borrowers.
 Mortgage and Mortgage Plus
Both represent personal credits given to individuals purely based on their income
level. It is the personal loan provided by NSBL.
 Other Retail Loans
Retails loans largely comprise of auto finance, home loan and credit for
consumer durables.
 Education Loan
Education loan is provided to Nepalese student for their better future. By fulfilling
necessary terms and condition, student can get maximum loan amount
Rs.40.00lacs.

3.8.3 Remittance
Following are the remittance services offered by NSBL:
 Nepal SBI Remit
This is an online inward international remittance service which offers a formal
channel for Nepali community residing abroad to send money to Nepal. Nepal SBI
Remit is a customer focused Money Transfer product enabled by state of art web-
based technology and is brought to you by Nepal SBI Bank Limited, a leading bank
of Nepal.

16
  Domestic Remittance Service
With a view to increase local remittance transaction for facilitating geographically
diversified customers with easy, convenient and safe money transfer service inside
Nepal, NSBL entered into arrangements with Prabhu Money Transfer Limited
(PMT) to facilitate delivery of local remittance to the beneficiaries residing in
various parts of the country in connection with the local remittance within Nepal.
 SBI Nepal Express Remit
Nepali migrant workers residing and working in India can remit money at minimal
charges from more than 15,000 branches of State Bank of India located in various
parts of India.
 WUMT’S/PMT’S Remittance
Customers can also receive remittance money sent from abroad via remittance
channels of Western Union & Prabhu Money Transfer at the branches of the bank.
 Real Time Gross Settlement Facility (RTGS)
It enables the customer to directly credit their or their beneficiaries’ bank
accounts within minutes in any of the more than 44,000 bank branches in India
which are on the NEFT banking platform.

3.9 Financial Performance of NSBL

According to the unaudited financial result published by the Bank, the Bank has posted a
net profit of Rs.1.94 billion in the fiscal year (FY) 2074/75 higher than Rs. 1.52 billion
recorded in 2073/74. It has been able to increase its deposits from Rs. 81.6 billion in the
FY 2073/74 to Rs. 84.2 billion in the FY 2074/75. While advances increased to a total of
Rs. 74.5 billion by the end of the reported year. However, NPL during the year 2074/75
increased to 0.20% from 0.10% of the last fiscal year.

3.10 Capital Structure

Nepal SBI Bank has an Authorized Capital of Rs. 10 billion @ Rs 100 per share, issued
capital of Rs. 8.04 billion @ Rs 100 per share and Paid Up Capital of Rs. 8.04 billion @
Rs 100 per share.

17
 3.11 SWOT Analysis
The word SWOT stands for Strength, Weakness, Opportunity and Threats. It is done to
understand the external and internal environment of an organization. The major findings
from the SWOT analysis of Nepal SBI Bank are as follows:

Strengths
 Subsidiary of the largest bank of India provides high
level of brand value and recognition across Nepal.
 Easy fund transfer and use of ATMs in India has been a
boon to local businessmen.
 Use of advanced technology and the management’s
orientation towards spending in research of those
technologies.
 Relatively young staffs provide high energy levels and
tech savvy mentality.
 Solid financial reserves.
Weakness
 The number of staffs in the branch offices is relatively
less in comparison to the business volume. This creates
immense pressure on staffs, decreasing their morale.
 The customer service section is not performing well in
terms of resolving customer complaints.
 Heavily dependent on SBI in the decision-making
process often causing delays and missed opportunities.
 Lackluster marketing strategies and campaigns.
 The corporate office of the bank lacks adequate space
for the staffs and the parking facility is mediocre at best.

Opportunities
 Nepal is developing and requires banking facilities more
than ever, which could be capitalized hugely by NSBL
through proper marketing and reliable services.
 Innovate new products and services in conjunction with
SBI that offers more convenient banking between India
and Nepal.
 Broadening the geographic reach and provide services
in places where no one else has been.
 Creating more engaging and effective contents for social
media marketing.
 Attract new customers through different banking
services and schemes.
Table 3.1: SWOT Analysis of NSBL
Threats
 Increasing competition from domestic banks and
financial institutions.
 Lack of synergy between the parent and subsidiary
company to leads to uncoordinated sales efforts.
 Frequent changes in the government and the subsequent
change in the financial policy of the country.
 Employees in the banking sector switch banks
frequently, seeking career growth which increases
employee turnover.
 Rapid change in technology makes it difficult to change
accordingly and if the pace of adaptation is slow, many
customers’ switches banks for better service.

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 CHAPTER FOUR
ANALYSIS OF ACTIVITIES PERFORMED

4.1 Activities performed

Over the course of the internship, I was assigned with different tasks in the IT Department.
I learned a lot by assisting the operational activities of the staffs in the department and since
there were many projects in the pipeline, I was able to provide a significant help to the core
IT team in making those projects come into existence. Thus, the overall operational
responsibility was provided to me as the staffs of the department focused on their projects.

In the process, I was able to gain various knowledge regarding IT in general and how it
worked inside a commercial bank. It was a wonderful opportunity for me to get this kind
of knowledge as most interns are placed in either Customer Service or Remittance
Department of the bank. An overview of the various activities performed are:

4.1.1 Activities performed in IT Department:

Almost all companies, large or small, have an Information Technology -- or IT --

department that handles all the technological issues that arise. It enables the users to
perform their tasks efficiently, productively and securely.

 Support to the corporate and various branch offices regarding their frequently
occurring IT issues such as printer sharing, files and folders sharing, software
installation, hardware management, etc.
 Handling phone calls and customer queries regarding mobile banking. As mobile
banking system was being upgraded, I was able to learn lot of things regarding data
migration and software’s User Acceptance Testing (UAT).
 Website maintenance and content management as per the requirement of various
departments. Usually, the contents are provided by the departments and we would
place it in the website as per the stated instructions.

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  Assist the senior IT officials in the backup and maintenance process of the bank’s
core database and help replicate them in the backup servers at Disaster Recovery
Site in Bhairahawa Branch.
 Overseeing the system runs smoothly and error free, for which the Trend Micro
antivirus was being placed, replacing the old McAfee Antivirus. As the task was to
be carried on over 800 workstations manually, I was able to help the IT officers in
the task to a substantial level.
 Reconciliation of mobile banking disputes relation to mobile topups and bill
payments. There can be many instances when the payments made by the customers
would fail but their accounts would be debited. Hence, those transactions needed
to be reversed to keep the accounts settled.
 Documentation and filing duties as per assigned by the supervisor.

4.2 Problems identified and solved

 Dealing with various natures of problems related to computer hardware/software
they may arise unexpectedly.
 Identifying the solution to various issues though internet research and experts
advise. This provided an immense opportunity to learn and obtain a widespread
computer knowledge.
 Coordinating with officials in India to resolve various networking related issues.
This was particularly important as more of the core IT activities were highly
dependent on the Information System of State Bank of India.
 Explain the customers about how mobile banking operates and the settings they
need to have on their phone to make it operational. As the IT department looked
solely over the mobile banking, handling mobile banking issues was one of the top
most priority.
 Providing various information to NSBL staffs regarding the changes taking place
in the IT infrastructure of the bank. As IT is dynamic and Nepal SBI Bank was
introducing a lot of restructuring in IT realm, it was quite important to guide all the
staffs through different changes in software and the methods of using it.
 Proper documenting and filing, which was haphazard in the department.

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4.3 Observed gaps
The entire internship program provided a wonderful opportunity for me to learn many new
things in the field of Information Technology. Despite having a bachelor’s Degree in
Information Technology, I was amazed when I realized how differently a bank’s IT
functions and the theoretical knowledge proved to be very little help when the knowledge
and skill was to be applied in the real-life scenario.

Some of the gaps observed are as follows:

 The IT department oversees the entire networking between the corporate office all
its widespread branch offices. Hence, the complex networking skills required to
make the system up and running was quite new to me.
 The core banking system, i.e. ‘Finacle’ used in Nepal SBI Bank was not studied in
the MBA and knowledge of such banking software was non-existent. It was also
found that Finacle version 10 which the bank was using provides a complete
banking solution and very few other commercial banks in Nepal uses it.
 Knowledge gained by students in classroom regarding computer or banking is not
applicable enough. Real world situations are quite different, and the theoretical
knowledge does not provide much help to solve them.
 The bank has some degree of favoritism and nepotism in practice. It was found that
some people were never transferred to rural areas whilst the others never made it to
within valley branches despite being born and raised in Kathmandu. This is one
aspect that wasn’t learned in the classroom.
 The bank is not very proactive towards marketing their products and services and
taking advantage of being first mover. It recently upgraded its existing mobile
banking system but, other banks had already upgraded to the system quite a while
ago. And hence, they are catching up with Nepal SBI Bank in terms of net profits.
This shows that even large organizations need a good marketing strategy to remain
relevant in their field.
 The eight-week time period of the internship is not sufficient to learn a lot from the
organization. Supervisors at the bank were reluctant to teach as they thought it was
not worth it as I would only stay for 2 months.

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 CHAPTER FIVE
CONCLUSION AND RECOMMENDATION

5.1 Conclusion
The students of Masters in Business Administration of Pokhara University were assigned
to perform a total of 8 weeks internship on a particular organization and prepare a detailed
internship report in the basis of experiences obtained during the course of the internship
period for the partial fulfillment of the requirement of the Master’s degree. The main
objective of the internship program is to familiarize students with a particular organization,
learn about its operations and how it conducts its business in the real-world scenario. It
provides an insight regarding the probable issues that might occur in an organization and
the ways those issues can be tackled. Most importantly, internship allows the students to
combine theoretical knowledge and skills acquired in the classroom situation with the real-
life events of the organization.
Nepal SBI Bank was chosen to conduct the internship on, as it is one of the largest
commercial banks in Nepal. Furthermore, it is a subsidiary of the largest bank in India –
State Bank of India (SBI) which owns 55% of Nepal SBI Bank Limited (NSBL). The
remaining is sheared with Employee Provident Fund that holds 15% equity and the rest
30% is owned by public. Hence, it has technological and financial ties with SBI, which
made it different from rest of the commercial banks in the country. It has a total of 83
outlets, which includes 72 branches, 7 extension counters, 3 Regional Offices and
Corporate Office.
I completed my internship from the ICT department, Corporate Office, Kesharmahal with
a total duration of two months. During my time at the department, I used different strategies
and techniques to study the organizational activities. Both qualitative and quantitative
characteristics can be found in the report with primary and secondary data providing the
source of information. The primary data are collected through the interaction with the staffs
of the bank, handling customer queries performing various tasks assigned by the
supervisors, whereas, the secondary data are collected mainly from the bank’s website and
the published annual report.

22
From the collected data and experiences, the following conclusion can be drawn:
 Nepal SBI Bank operates as a Grade ‘A’ commercial bank in Nepal and uses
Finacle as its core banking solution.
 The primary selling point of Nepal SBI Bank is its brand value, being tied to State
Bank of India, India’s largest bank with a 23% market share in assets.
 The overall IT of the bank is segregated into three different department, namely
Management Information Systems (MIS) Department, Alternate Banking Channels
Department and the Information Communication and Technology (ICT)
Department.
 Being involved with the ICT department for 2 months, I encountered many
technical problems that usually arise within a bank on a regular basis.
 Academic knowledge provides the theoretical skills but limits the students’ ability
to solve real world issues, which internship helps to provide.
 The ICT department has a total of 6 dedicated staffs working to enhance the
efficiency and effectiveness of the staffs and the bank in general. All of them were
quite friendly and comfortable to work with.

5.2 Lessons Learnt

During my 2 months period with Nepal SBI Bank Limited, I have learned many valuable
lessons. Some of the most important ones are as follows:

 Make efforts to blend the theoretical knowledge and practical skills to solve the
organizational issues.
 Familiarize myself with the corporate culture and understand how a commercial
bank operates.
 Understood that IT is a complex task and a two-month period would only helped
me understand the basic of its functions.
 It is quite important to socialize with the staffs to increase the overall knowledge
base. It is also necessary to be accessible and help others whenever possible.

23
  As banking is a service industry, customers are the key to organizational success.
Hence, it is always necessary to focus on their satisfaction.
 Showing patience and humbleness while dealing with customers and staffs alike.
 Realizing that there are many things to learn. Thus, learning is a never-ending
process and the more we are able to learn, the more knowledgeable and wiser we
become.

5.3 Recommendation to the organization

 The technology world is developing rapidly customers are becoming more tech-
aware these days. Hence, NSBL should be able to deliver latest tech-based services
to its customers to remain competitive in the banking world of Nepal.
 The mobile banking facility of the bank must incorporate payment systems like e-
Sewa, Kahlti, to provide convenient payment facilities to the customers.
 The existing ebanking application is quite difficult to use. Thus, the bank must
redesign the interface and layout of the application to make it more user-friendly.
 It was observed that the end-user workstations in many branch offices were in a
sorry state. This caused the staffs to be irritated with the PCs and disturbed the
natural process of doing work.
 It was a common hearing that branches didn’t have enough staff to cater to the
increasing customer base of the bank. They often had to work long hours without
getting any over-time payments. Hence, the Human Resources department must
either employee enough staffs or make provision for overtime to keep its employee
motivated and prevent their personal lives from getting affected.
 The bank should be more aggressive towards their marketing activities, which is
currently found to be lackluster. It should aggressively market towards both city
dwellers and villagers alike to increase the overall customer base.
 The bank must please their shareholders by having consistent and fruitful dividend
payout ratio.
 Merger and acquisition in the banking scenario is increasing and banks are
becoming stronger. So, Nepal SBI Bank must be competent enough to fend off the
competition.
24
 REFERENCES:

Manandhar, K.D & Pokhrel Shiva Bhakta (2012). “Marketing Financial Services”.
Kathmandu: Buddha Academic Publishers and Distributors.

Introduction, (n.d.). Retrieved from: https://nepalsbi.com.np/content/introduction.cfm

Nepal SBI Bank 24th Annual Report FY 2073-74 (2016-2017). Retrieved from:
https://nepalsbi.com.np/assets/upload/files/24th%20Annual%20Report%20in%20English%20(P
DF).pdf

The commercial banking industry and the individual commercial banks: Does the bank of your
choice lie above or below the industry average? NFRS and non-NFRS, (n.d.). Retrieved from:
https://www.sharesansar.com/newsdetail/the-commercial-banking-industry-and-the-
individual-commercial-banks-does-the-bank-of-your-choice-lie-above-or-below-the-
industry-average-nfrs-and-non-nfrs

25
 ANNEX 1
Company Name Symbol Operation Date (A.D.) Head Office
Nabil Bank Limited NABIL 1984/07/16 Kathmandu
Agricultural Development Bank Limited ADBL 1968/01/02 Kathmandu
Nepal Investment Bank Limited NIB 1986/02/27 Kathmandu
Nepal Bank Limited NBL 1937/11/15 Kathmandu
Everest Bank Limited EBL 1994/10/18 Kathmandu
Himalayan Bank Limited HBL 1993/01/18 Kathmandu
Global IME Bank Limited GBIME 2007/01/02 Birgunj, Parsa
Standard Chartered Bank Nepal Limited SCB 1987/01/30 Kathmandu
Nepal SBI Bank Limited SBI 1993/07/07 Kathmandu
Prime Commercial Bank Limited PCBL 2007/9/24 Kathmandu
Siddhartha Bank Limited SBL 2002/12/24 Kathmandu
NMB Bank Limited NMB 1996/11/26 Kathmandu
Sanima Bank Limited SANIMA 2012/02/16 Kathmandu
Bank of Kathmandu BOK 1995/03/12 Kathmandu
Citizens Bank International Limited CZBIL 2007/6/21 Kathmandu
Sunrise Bank Limited SRBL 2007/10/12 Kathmandu
Machhapuchchhre Bank Limited MBL 2000/10/03 Pokhara
NIC Asia Bank Limited NICA 2007/10/12 Kathmandu
Laxmi Bank Limited LBL 2002/04/03 Birgunj, Parsa
Prabhu Bank Limited PRVU 2003/02/21 Kathmandu
Nepal Bangladesh Bank Limited NBB 1994/06/05 Kathmandu
Nepal Credit & Commercial Bank Limited NCCB 1996/10/14 Rupendehi
Mega Bank Limited MEGA 2010 Kathmandu
Kumari Bank Limited KBL 2001/04/03 Kathmandu
Janata Bank Nepal Limited JBNL 2010/04/28 Kathmandu
Century Commercial Bank Limited CCBL 2011/03/10 Kathmandu
Civil Bank Limited CBL 2010/11/26 Kathmandu
Rastriya Banijya Bank RBB 1966/01/23 Kathmandu

26
 ANNEX 2

FIG: Organizational Structure of Nepal SBI Bank

27
 ANNEX 3
Mr. Sujit Kumar Varma
Chairman

Mr. R.S. Ramesh Mr. Deepak Rauniar

Director Director

Mr. Keshav Raj Acharya Mr. Bala Krishna Shrestha

Professional Expert Director
Director

Mr. Anukool Bhatnagar

Managing Director (CEO)

ANNEX 4
Mr. Anukool Bhatnagar
Managing Director

Mr. Subhakanta Kanungo

Chief Operating Officer

Mr. Priya Ranjan Mr. Chhapi Raj Pant Mr. Dev Raj Adhikari
Chief Finance Officer Chief Risk Officer Chief Credit Officer

Mr. Sushil Kumar Sharma Mr. Umesh Bahadur Karki Mr. Jeeban Babu Subedi
Regional Manager Regional Manager Regional Manager
Kathmandu Biratnagar Nepalgunj

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 ANNEX 5
Kathmandu Valley Branches (18 branches, 3 ext. counters, 2 Administrative Office)

Bhaisepati Bhaktapur Boudha

Commercial Branch Dallu Durbar Marg Main Branch
Gaushala Gongabu Gwarko
Kalanki Kuleshwor Maharajgunj
New Baneshwor New Road Patan, Jawalakhel
Sinamangal Teku Thamel
Embassy of India Ext. Counter Pashupatinath Ext. Counter Indian Visa Service Centre
Nepal SBI Intouch, Durbarmarg Regional Office, Kathmandu Corporate Office, Kesharmahal

Eastern Region Branches (16 branches, 1 ext. counter, 1 administrative office)

Bardibas Bargacchi Biratnagar

Birtamod Chandranigahapur Damak
Dharan Ilam Itahari
Lahan Madhumalla Mirchaiya
Myanglung Phidim Pension Paying Office, Dharan
Regional Office, Biratnagar Rajbiraj Bhojpur

Central Region (ex. Kathmandu Valley) Branches (12 branches, 1 ext. counter)

Abu Khaireni Banepa Battar

Birgunj CGI Ext. Counter, Birgunj Damauli
Hetauda Hakimchowk Janakpur
Narayangarh Rampur Ratnanagar
Simara

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Western Region Branches (16 branches, 2 ext. counters)

Baglung Besisahar Birauta

Bhairahawa Butwal Chandrauta
Gulmi Kawasoti Manigram
Manipal Extension Counter, Pokhara Palpa Parasi
Pension Paying Office, Pokhara Pokhara Sandhikharka
Shishuwa Srijana Chowk Waling

Mid-Western Region Branches (4 branches, 1 administrative office)

Dang Nepalgunj Surkhet

Kohalpur Regional Office, Nepalgunj

Far-Western Region Branches (3 branches)

Dhangadi Mahendranagar Tikapur

30