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CHAPTER I
INTRODUCTION
1.1 Background
As per the partial fulfillment of the course of study and requirement of Faculty of
Management (FOM) of Tribhuvan University (TU), students of Bachelors in Business
Administration need to perform internship in any organization for eight weeks and
prepare an individual report based on their internship achievements. BBA truly deals
with all management subjects as well as information technology background that
meets the basic idea of management and its link to information technology in the real
work situation. It is the root for the development of internship in any organization for
minimum of eight weeks, for partial fulfillment of Bachelors in Business
Administration (BBA) program.
Internship is the way of learning career, which aids the creativity and novelty within
its periphery. Internship permits students to be familiarize with the work place
culture, know the working pattern, working environment and show their skill they
acquired during their study period. Through, the provision of the internship, each
student’s interpersonal skills and communication skills are highly developed to
sustain freely in this competitive era. To cope with the changing environment
internship is a platform for gaining greater knowledge to perform effectively with
working experience. It also builds our confidence level to deal with people of different
nature and to work in different working environment.
Tribhuvan University has its ultimate objective of educating students for professional
pursuits in business, industry and government for building up their carrier for the
same. The program stimulates creative and critical thinking and helps in developing
interpersonal communication skills among the students in terms of business and public
administration.
Internship duration has been a wonderful experience and a medium through which
theoretical concepts can be boosted up into practical form by mixing with the real
working environment about how it functions, operates and what motivates employee
to perform well. Likewise, the internship report even allows students in obtaining
insights into various career opportunities through interaction, observation and work
experience in the organization. It also helps in developing competent, confident and
skilled professionalism in students which will strengthen student’s managerial,
entrepreneurial and leadership capabilities in today’s competitive globalized business
world and help in broad understanding of professionalism, integrity and business
responsiveness.
Thus it has become a platform to develop basic research and decision-making skills
and to undertake independent analysis and appraisal of different business situation. In
today global era of competition, every business has to face the competition and need
wide expertise to blend up their resources with the market opportunities, waving out
their challenges. And such internship program has really helped fresher to enter into
the global business network for their effective operation and issue management.
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And for fulfilling the partial requirements for the degree of BBA, Internee have
selected “Nabil Bank Limited” (Balaju Branch) as a host organization for internship
purpose, which is the first private joint venture Commercial Bank of Nepal.
This internship report is mainly focused on the customer services provided by Nabil
Bank Limited, Balaju. Since internee had completed internship from the Balaju
Branch, all the details related to the Customer Service Department are based on that
particular branch.
An internship links the student with the real working environment situation and offers
opportunities to apply theoretical knowledge and gain practical knowledge. The
objective of the internship is to learn the corporate culture of the banking industry.
The specific objectives of this study are:
1.3 Methodology
This study for making this report is mostly descriptive in nature where the facts and
findings are prescribed in a systematic manner. The information required for the
preparation of report has been collected from observation of the activities that are
performed in the bank and the personal interview and consultation with the staffs
involved in different departments of the bank. The secondary data are used in the
report are obtained from websites, brochures, annual report, and books.
As my selection of BBA course for the 8th semester was Finance so the selection of
the good organization was very important for my internship. Commercial banks are
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the appropriate organization where internee could tally theoretical knowledge into
practical implications. Thus, for selecting the organization, internee curriculum vitae,
citizenship and recommendation letter from college are dropped in the various Banks.
In this process, Nabil Bank Limited, Balaju branch has accepted internee application
for the internship and give the opportunity to get familiar with the bank.
1.3.2 Placement
Regarding the placement during the internship period, internee was placed in
Customer Service Department of Nabil Bank Ltd, Balaju Branch, banking Office. So
with the reasonable guidance of the employees of Nabil Bank Ltd internee started
internship in Customer Service Department. This eight weeks internship really helped
internee to develop managerial and interpersonal skills. Internee was able to learn the
bank culture, work environment and working procedure of Nabil Bank Ltd, Balaju
Branch.
The activities performed in the organization during the internship period are:
Customer Service Department
During this period of internship, due to the limited time duration of study by T.U, it
was difficult to gather information from all the departments of bank.
Here I have listed some of the limitations that have restricted the internship for broad
studies:
1. Due to limited time, it was not been possible to study all departments of bank
properly. Therefore, only one department have been selected as a sample for
the study that results in some kind of incomplete information and details on
the operation of the bank.
2. The report is prepared for an academic purpose only.
3. The report is confined only to customer service department.
4. The report is prepared based on the functions of only one branch, the working
process may differ in other branches.
5. During the preparation of the report no sophisticated method has been used.
6. The deep analysis and study could not be done due to time constraints, limited
data and knowledge to make the report.
7. To maintain the privacy of the bank, bankers do not provide detailed and
correct information on relevant topic.
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CHAPTER II
INTRODUCTION OF THE BANKING INDUSTRY
Definition of Bank
Bank is a financial intermediary accepting deposits and granting loans. In fact, a
modern bank performs variety of function that is difficult to precise and general
definition of a bank.
According to Prof. Kinly, “A bank is an establishment which makes to individuals
such advance of money as may be required and safely made, and to which individuals
entrust money when not required by them for use”.
According to C.R. Crowther, “A bank collects money from those who have it to spare
or who are saving it out of their incomes, and it lends this money to those who require
it”.
In 12th century there was silver coin called ‘Dam’. Later on in 14 th century
‘TANKADHARI’ one is that dealt with the lending money to the public. Its main
objective was to earn profit, so they used to charge high interest rate. To control
interest rate ‘TEJARATH ADDA’ was established in 19 th century. It provides loans
to the people working in government offices on the basis of the security and to public
on the basis of collateral they deposit. It charges only 5% interest rate per annum. It
only provides loans but does not accept deposit.
In 1980 B.S. Nepal could establish business with countries beyond India as well and
first modern bank Nepal Bank Limited was established in 1994 B.S. kartik 30th
according to the Nepal Bank Act 1993. Nepal Bank Limited was established with 51%
ownership of Nepal government and 49% of equity participation from private sector.
Later on in 2012 B.S. Nepal Rastra Bank was established with the objectives to
maintain the internal external stability. In 1996 A.D. government established another
bank named Rastriya Banijya Bank to make money transaction easy. Besides that,
establishment of Nepal Industrial and Development Corporation in 1959 A.D. and
Agriculture Bank in 1967 A.D. as well as other cooperative societies also started
contributing to the economy and banking tradition in Nepal grind lays Bank limited
established in 1986 A.D. There are other several commercial banks and in Nepal
commercial banks should be registered under Company Act or Commercial Bank Act
under section 12(a) to (w).
6. Employment
Payment Role: It carries out payments for goods and services on behalf of their
customers such as issuing checks, wiring funds, providing a conduit for electronic
payment and dispensing currency and coins.
Guarantor Role: Bank Stands behind their customer to pay off costumers debts when
those customers are unable to pay such an issuing letter of credit.
Agency Role: Bank acts as an agency on behalf of the customer to manage and protect
their property or issue and redeem their securities usually providing through the bank
trust department
Policy Role: It also serves as a conduit for the government policy in attempting to
regulate the growth of the economy and pursue social goals.
C Finance Companies 80 36
D Micro Finance 25 48
Source (www.nrb.org.np)
Banks are therefore, looking to develop innovative products and services to maintain
superior customer services levels while at same time remaining profitable. With the
number of market players in the rise, the competition has been obviously growing in
the banking industry. The most obvious effect of the rising competition can be seen
in the interest rates offered by the banks.
Banks are gradually shifting towards IT based solution to enhance service delivery in
order to address customer concerns. Most banks are embracing E banking and
provision of ATMs to reduce long queue in banking hall. In addition, some banks
have launched mobile phone banking services while facilities several account query
tools, including account balances, thereby minimizing the need for customers to visit
banks. This drive towards IT based solution will continue to gather momentum in the
future as banks will find it very difficult to survive in the ever growing competition
without some form of competitive advantages.
There are various current trends in banking that have made the competition intense
are:
1. Technological Advancement
2. Increasing Globalization
3. Regulatory Influences
4. Variety of services proliferation
5. Globalization Impact
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CHAPTER III
INTRODUCTION OF NABIL BANK LTD
3.1 INTRODUCTION
Nabil Bank Limited, the first joint venture bank of Nepal, was established on 12th
July 1984 and has since pursued its objective of catering world class banking
services to all sectors of Nepalese economy. It has its head office located at Nabil
center, Beena marg, Teendhara, Durbarmarg which is also a premium location of the
capital. Nabil provides a full range of commercial banking services through its 52
points of representation across country and all over 170 correspondent banks across
the globe. Out of 52 branches, 21 branches are situated inside Kathmandu valley
and 31 are outside the valley.
The bank’s customer base, business portfolio, geographic outreach and its efficiency
and profitability ratios amply reflect its successful operation over the last 33 years.
Bank is fully equipped with modern technology which includes ATMs, credit cards,
Internet banking system and Telebanking system. It operates on a world renowned
core banking software ‘Finacle’. Nabil has a large domestic network of 93 ATMs in
the Kathmandu and outside the valley. They issue EMV chip based card which
enhances the security of the card and card transactions of the customers by
manifolds. It is the only bank which is the principal agent of Western Union
international in Nepal. Western Union, Nabil Bank Ltd. and eSewa Pvt Ltd. have
launched mobile money transfer service to WU customers in Nepal.
Nabil Bank Ltd is moving forward with a mission to be “1st Choice Provider of
Complete Financial Solutions” for all its stakeholders, customers, shareholders,
regulators, communities and staff. Nabil Bank Ltd is determined in delivering
excellence to its stakeholders in an array of avenues, not just one parameter like
profitability or market share. Its Brand Promise was “Your Bank at your service”.
Recently, it has been changed to “Together Ahead” .The major activity of banks is
focused on the customer oriented. The major target of banks is to make customer
delighted and satisfied.
3.1.1 Products, Services and Facilities
Though Nabil Bank Limited is first joint venture bank of Nepal it has been the
innovator in introducing many new products. To illustrate, the bank has implemented
till the following products now:
Deposits
Like any other bank, Nabil Bank accepts deposit from individuals, business
organizations and other institutions. It offers the following product and services to its
customers.
Current Account
Current deposit is a type of non-interest bearing deposit in which customer can make
any number of deposits and withdrawals of demand to suit every business need. Nabil
Bank Ltd has tailor made current account which rightly meets the needs of today’s
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fast growing business enterprises. With advanced technological features all banking
needs are being taken care of. The customer can access to their account all branch of
Nabil Bank Ltd. The minimum balance required to open the current account in the
Nabil Bank Ltd is “Zero”. This account does not provide any interest to its customer.
Saving Account
Nabil Bank Ltd offers Normal Saving account facility to cater to the saving habits of
individuals and households. Initial deposit ranges depend upon the branch and its
level. The minimum amount needed for opening saving account in Nabil Bank Ltd is
Rs. “Zero”. In this type of account a depositor withdraws the deposit without any prior
information.
Types of Saving Account
• Normal Saving Account
• Women Saving Account
• Minor Account
• Jestha Nagarik Saving Account
Fixed Account
Fixed Deposit can be opened with a minimum balance. Interest is payable Quarterly.
Penal interest is levied on withdrawal of FD prior to maturity. Tax is deducted at
source from the interest on saving deposit as per the Income Tax Act, 2058(2001).
Nomination facility is available on FD. Strict confidentiality is assured on the
operation of FD. The tenure of FD is 3 months, 6 months, 9 months, 1 year, 2 years
and above 2 years. The parties eligible to open FD account are Individuals, Minors,
Trusts, Associations, Clubs, and Societies.
Personal Loans
Personal loans are provided to fulfill the personal needs of an individual. It is basically
provided against the land and building and other fixed properties of an individual.
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There are mainly two types of personal loans i.e. Personal Term Loan and Personal
Overdraft Loan.
Auto Loans
This loan is provided for purchase of new vehicles. Auto loans are provided for both
private and commercial use. The criterion for taking auto-loans is as follows.
• The loan is provided to Nepalese Citizens only.
• This is provided to any salaried and self-employed individuals and companies.
• The loan is provided to any salaried and self-employed individuals and
companies having regular and stable source of income.
• All borrowers and guarantors should not be enlisted in “Black List” of NRB.
• In case of individuals, the borrower must be at least 21years and should not
exceed 60 years at the time of maturity. The retirement age must be more than
the tenure of the loan.
• Years of work experience is needed for salaried individuals.
• The company / firm should be in operation since last three years.
• The person taking loan for the company / firm is to be authorized by the
company / firm as appropriate.
Home Loans
This loan is provided for purchase a plot of Land, purchase a plot of land and construct
a building on it, purchase of already built house, purchase of Bungalow constructed
by builders, developers, renovation, modification, extension of existing building and
construction of building on land already owned. The loan is provided to any
individuals who have regular and stable source of income. This loan can be given to
any salaried and self-employed individuals. The loan will be provided to Nepalese
Citizens only.
Business Loan
Loan and advance demanded & usages for the business purpose. Business it selves
are made from the cash flows of the concern business. Business loan are: Term loan,
working capital loan, Bridge gap loan, Infrastructure loan etc.
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Margin-Lending:
This loan is provided against the shares of the companies, which are listed in Nepal
Stock Exchange (NEPSE) and acceptable to the bank. Any individual, companies, and
firms can take this loan. But, all the borrowers should be Nepalese citizen. This loan
can be taken against the shares owned by any person or company.
Nabil Remit
Nabil Bank Ltd introduced 'Nabil Remit' - an online/internet based Remittance
Service for the purpose of facilitating to transfer the earnings of Nepalese and
Nepalese Expatriates in foreign countries with the help of available Nabil Bank Ltd
agents. Along with inward remittance from foreign countries, Nabil-remit is powered
by domestic money transfer facility through all of the bank's branches throughout the
country with very minimal charge.
E-Banking
Now Nabil Bank Ltd is just a click away. Customers can access their account in Nabil
Bank Limited on their desktop, from any place. Nabil Bank Ltd Internet Banking
provides wide coverage of services in order to facilitate valuable customers. Balance
check, cheque stop, cheque issue, statement print etc are some of the facilities under
this service.
Vision Statement
Nabil Bank Ltd holds of a vision “to become the bank of first choice” and to be a bank
for all across all geopolitical zones and socioeconomics strata of the nation that can
provide myriads of financial solutions and create values for all their stakeholder, to
stand in the community with their economic and civic role. Nabil Bank Ltd is based
on the respect, service, reward, opportunity, cooperation, support and safety for the
customers.
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Mission Statement
Nabil Bank Limited seeks to prove that Nabil Bank Ltd is driven by the spirit for
realizing those visionary aspirations. With that end in view, Nabil Bank Ltd work in
partnership with the stakeholders and the community at large. Nabil Bank Ltd
approaches to differentiate their products by reengineering them with the best
technologies and management philosophy in keeping in focus their customer’s
satisfaction over and above everything else at all times.
Values Statement
At Nabil Bank Limited, they surge to turn their services and products into economic
values for their treasured customers, taking care of their financial needs. Nabil Bank
Ltd fosters corporate governance, realizing the values their regulators always cherish
through financial disciplines. Besides, Bank has set C.R.I.S.P. (Customer Focused,
Result Oriented, Innovative, Synergistic and Professional) as its values, which it lives
by in day to day operation of the bank’s business.
Objectives
3 NIDC 10%
Total 100%
Source (www.nabilbank.com.np)
The above table shows the ownership structure of Nabil Bank Ltd which is shown on
the pie chart given below:
PERCENTAGE
N.B (International),Ltd,Ireland Nepalese public
NIDC Rastriya Beema Sansthan
Nepal Stock Exchange
0.33%
9.67%
10%
50%
30%
Total 52
Source (www.nabilbank.com.np)
Nabil Bank Ltd currently has most number of branches among all the commercial
banks. The total count of branches is 52 and Nabil Bank Ltd is also considering to
open other 16 branches across a country.
CHAPTER IV
ANALYSIS OF THE ACTIVITIES DONE AND
PROBLEM SOLVED
6. Balance inquiry
7. Delivery of Nabil-Net
8. Issuance of balance certificate
9. KYC update of customer
It is very important to know that a highly satisfied customer stays loyal longer, buys
more as the organization introduces new product, pays less attention to competing
brands and is less sensitive to price. Having a significant number of this kind of
customers is only possible through the efficient functioning of help desk department of
any organization. It would then not be inappropriate to say that this department is the
key to success of any organization.
12. Making regular contacts with customers to flow important messages such as:
• Pending information yet to be provided
• Issue of the services such as ATM card
• Maintaining good communication and coordination with the customers.
➢ Saving-Account
According to Commercial Bank Act (2031), “Saving Account is the deposit accounts
maintained with the bank and financial institutions with an objective of saving.” The
account, which has some features of current account as well as fixed deposit account,
is known as saving account. It is the account, which is usually opened by individuals in
which there is restriction in respect of the amount and number of withdrawals. A
moderate rate of interest is allowed to the accountholder, which is less than the fixed
deposit account.
Features of Nabil Bank Ltd’s Saving Account:
2. Identification of Proprietors
3. Audit Report
4. Copy of citizenship or passport of proprietors
Procedure for account opening in Nabil Bank Ltd
1. Received duly completed account opening form along with signature card. The
signature card should be signed by the customer in front of the bank officials.
2. Check the application form being filled by the customer and see whether all the
required information are being properly filled up or not.
3. Verify photocopies of documents with original one and attest it with the form.
4. The hard copy information is being converted into soft copy by entering all the
information in the banking software WDMS.
5. Higher-level staffs approve the accounts opened.
6. Scanning the account opening form and other documents of customer and
uploading these scanned file in WDMS.
7. Customers are then provided with the cash / cheque deposit slip for depositing
cash in their newly opened account.
8. After all the necessary entries are made, checklist as per the type of account
opened is attached with the form.
9. At last the form is forwarded to the back office kamladi branch.
2. On receipt of request, the staff in help desk department verifies the signature
over the request.
3. The staff should inform the supervisor about the closing of an account.
4. For the closure of individual account and sole proprietorship account, the
account holder should visit bank himself / herself. Similarly, in case of joint
account all the account holders should be present.
5. For the closure of accounts following documents should be returned to the bank:
• All the unused cheques should be returned
• The ATM card should also be returned (if received)
1. Settlement of the balance after deducting all the required charges. Ensure that
no balance is left in the customer’s account.
2. Close the account in the banking system.
3. The account closing form with all the documents are to be filed in the account-
closing file.
4. The returned cheques should be punched making them void.
5. The returned ATM card should be destroyed and blocked.
6. The account closing form is forwarded to the back office kamladi branch.
2. If account holder is unable to present in a bank then agent must have the
signature of an account holder in the balance certificate form.
3. Agent must come up with his/her valid ID to collect balance certificate
4. Approval of supervisors and their signature is required in the balance certificate
printed on the bank’s letter head.
5. Copy of balance certificate is made and attach it with the requisition form of
balance certificate along with the copy of ID of an agent.
6. At last Balance certificate is hand over to the customer after doing their
signature in the register.
Most of the problems of customers faced by the bank was due to the wrong information
provided by the other customer or due to the incomplete information. So, the main job
of the CSD officer is to handle those case either by providing right information on by
complete information.
One of the major problems that CSD officer has to deal with is the non-functioning of
various banking services. Sometimes the system that Nabil Bank Ltd operates its
banking operation doesn’t work, and it would take half an hour or more to run the
system normally. During that period, all the customer used to came and complain to
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CSD department. And it was the responsibility of CSD officer to convince the customer
in a good way.
• Problems related to the service provided and mistakes done by the other employees
Sometimes, other employee commit mistakes and make the customer dissatisfied. In
that particular situation, it is the responsibility of the CSD officer to make the correction
rightly on time, and should able to create good image in the mind of customer.
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CHAPTER V
CONCLUSION AND LESSON LEARNT
5.1 Conclusions
The internship program is very fruitful for the development of students. During whole
period of internship and the preparation of this report the internee learnt a lot about the
banking sector and banking operation. From internship, the students are exposed to real
world of commerce and able to gain broad knowledge and experience with different
departments as well as working principles of commercial Banks. The student working
in the respective organization and the respective department should not only sit and
watch but also perform the task by himself/herself.
With the increasing number of Nepalese people working outside the country, the
demand for remittance service has been increasing. Nabil Bank Ltd has been leading
bank in remittance service as it has a large network of branches around the country.
Apart from this, Nabil Bank Ltd has established correspondence and agency
relationship with various institutions in remittance sector. Nabil Bank Ltd has been
using modern technologies for providing remittance service to its valued customers like
SWIFT, Drafts, TT and Mail transfer, etc. The remittance service of Nabil Bank Ltd
has been assumed to be secure as it uses secret key for inward and outward remittances.
Help Desk Department is one of the most important departments of any bank as it is the
place of first contact for most of the customers of the bank. It is the desk where
customers are provided the required information. The main functions of this department
is account opening, account closing, cheque printing and issuing, providing bank
statement on request and providing customers with the required information on bank’s
products and services. All the necessary documents required during opening an account
can be known through this department.
Nabil Bank Ltd has focused in improvements of the information technology, venturing
into new areas of banking activities and has laid greater stress in improving the quality
of manpower. The bank has also emphasizes to remain competitive in fast changing
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environment Nabil Bank Ltd promises to deliver customer centered products and
services par excellence with the customer care and full satisfaction.