Beruflich Dokumente
Kultur Dokumente
OF
GLOBAL IME BANK LTD.
AN INTERNSHIP REPORT
Submitted To:
Office of Dean
Faculty of Business and Accountancy
Lincoln University College, Malaysia
Submitted By:
Deepina Rijal
LUC Registration No.: LC0003000098
Phoenix College of Management (PCM)
Kathmandu, Nepal
December, 2017
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APPROVAL LETTER
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CERTIFICATE FROM INDUSTRY
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DECLARATION
I declare that the internship report is submitted to Phoenix College of Management
affiliated to Lincoln University College which is my original work and done based on
learning during internship program for the partial fulfillment of the requirement of
Bachelor (Hons) in Business Administration (BBA). It is carried out under the guidance
of Mr. Sanjeev Pradhan and has not been submitted anywhere for the award of any other
degree or commercial purpose. In keeping with the ethical practice in reporting scientific
information, due acknowledgements have been made wherever the finding of others have
been cited.
Deepina Rijal
LUC Reg. No.:- LC0003000098
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ACKNOWLEDGEMENT
This internship report is submitted in partial fulfillment of the requirement of the degree
of Bachelor (Hons) in Business Administration (BBA) under the Faculty of Management,
Lincoln University College. The completion of this report was possible only because of
the co-operation and support of my colleagues, related faculty members, college
management and especially Global IME Bank’s staffs for being so kind and cooperative.
I am grateful to all the staffs of Global IME Bank, Sinamangal who gave their valuable
time in guiding me throughout the training period and helped me in preparing the final
report. . I express sincere gratitude to the internship supervisor Ms. Jyoti Bhandari
(Customer Service Department) for her cooperation and support, Ms. Kabita Phuyal
(Branch Manager) for providing me an opportunity, Ms. Richa Neupane (Operation In-
charge) who simply furnished supportive environment which truly motivated to learn
banking concepts My heartfelt thanks also go Mr. Sanjeev Pradhan, my advisor for
providing me with continuous support during the internship program and report writing.
I want to express great debt to all subject facilitator of BBA (Phoenix College of
Management) and also would like to appreciate and acknowledge my other faculty for
providing me an opportunity and also helping me in conducting a research and a field
work at ‘Global IME Bank’ as partial fulfillment of my BBA program. It was a great
educational as well as practical learning experience to conduct such research work.
Lastly, I would like to express my gratitude to all my friends for the direct indirect help,
cooperation, encouragement and contribution during the time of preparing this internship
report.
Sincerely
…………….
Deepina Rijal
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EXECUTIVE SUMMARY
The Bachelor (Hons) in Business Administration (BBA) program of Phoenix College of
Management affiliated to Lincoln University College; require students to undertake an
internship at the 8th semester. The internship report requires students to undergo the
internship program in an organization for a period of two months, which should provide
an opportunity to integrate and apply theory with management practice.
The internship program has the following objectives:
▪ To actively participate in real organization to gain an understanding of overall
mission, objectives and functioning of the organization.
▪ To integrate and apply theory with management practice and understand the
assignment given by the organization.
▪ To complete particular assignments provided by the organization and prepare a
detailed report on it, which is expected to be useful both for the organization and
for the college.
The internship was done in Customer Service Department at the branch office of Global
IME Bank Limited, Sinamangal. The involvement was for the period of two months.
Intern was supervised by Ms. Richa Neupane – Bank In-charge and Ms. Kabita Phuyal-
Branch Manager of GIBL.
This report on Global IME Bank Limited is the outcome of the completion of internship
at Sinamangal Branch. The main objective of the internship is to get the practical
exposures of the theories that we studied in the college. The study is based on the
knowledge gained in different department about their operating activities and procedures
during internship over there.
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TABLE OF CONTENTS
Cover Page i
Approval Letter ii
Declaration iv
Acknowledgements v
Executive Summary vi
List of Tables x
List of Figures xi
Abbreviations xii
CHAPTER ONE
INTRODUCTION………………………………………………………….1
1.1 Background……………………………………………………………………………2
1.2 Objective………………………………………………………………………………2
1.3 Methodology…………………………………………………………………………..3
1.3.1 Organization Selection………………………………………………………...…..3
1.3.2 Placement………………………………………………………………………….3
1.3.3 Duration………………………………………………………………………..….4
1.3.4 Activities……………………………………………………………………..……4
1.4 Limitation of the Study……………………………………………...............…….......5
CHAPTER TWO
INTRODUCTION OF BANKING INDUSTRY………………….……...6
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2.1 Introduction of Bank………………………………………………………………..…7
2.2 Evolution of Banking Industry.......................................................................................7
2.3 Development of Banking Industry in Nepal……………………………………..........8
2.3.1 Commercial Banks in Nepal……………………………………………………10
2.4 Present Scenerio………………………………………………………………..,,,,….13
2.5 Challenges and Opportunities of Banking Industry………………………………….15
2.5.1 Challenges………………………………………………………………..............15
2.5.2 Opportunities……………………………………………………………..............16
CHAPTER THREE
INTRODUCTION OF GLOBAL ime bank LIMITED………………...17
3.1 Profile of GIBL………………………………………………………………………18
3.2 Organization Mission and Objectives………………………………………………..19
3.2.1 Objectives ……………………………………………………………………….19
3.2.2 Mission………………………………………………………….………………..19
3.2.3 Vision………………………………………………………………………….....20
3.3 Products and Services ……………………………………………………..................20
3.4 Organization Design and Structure…………………………………..........................24
3.5 Present Scenerio…………………………………………………………..…….........25
3.6 Challenges and Opportunities of GIBL…………………………….………………...26
3.6.1 Challenges…………………………………………………………..……………26
3.6.2 Opportunities……………………………………………………………………..27
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE AND PROBLEM SLOVED…...29
4.1 Background…………………………………………………………………………..30
4.2 Introduction of the activities/ Department/ Section………………………………….30
4.3 Role of intern and fitting in the organization………………………………………...30
4.3.1 Opening of an account…………………………………………………………...31
4.3.2 Form filling………………………………………………………………………36
4.3.3 Document verification…………………………………………………………...36
4.3.4 Closing account…………………………………………………………..............37
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4.3.5 Preparation and distribution of cheque book……………………….....................38
4.3.6 Providing bank statement………………………………………………………..39
4.3.7 ATM card distribution…………………………………………………………….40
4.3.8 ATM card activation………………………………………………………………40
4.3.9 Documents uploading on bank server…………………………………………...40
4.3.10 Handling telephone calls……………………………………………………….40
4.3.11 Recording cheque book, debit card issue……………………………………....41
4.3.12 Calling existing customer to update kyc……………………………………….41
4.3.13 Customer counseling…………………………………………………………...41
4.3.14 Service counseling……………………………………………………………...41
4.3.15 Account reactivation…………………………………………………………....42
4.3.16 Provide balance certificate……………………………………………………..42
4.3.17 Balance check………………………………………………………………….42
4.4 Understanding of System, Processes and Rationale ………………………………...43
4.5 Problems, Challenges and How these Problems were Solved……………………….43
4.5.1 Problems Identification and Solved……………………………………………..44
4.6 Observation Gap……………………………………………………………………..46
CHAPTER FIVE
CONCLUSION /LESSON LEARNT……………………………………………….48
5.1Conclusion………………………………………………………………………...….49
5.2 Inference drawn/imtern’s key observation…………………………………………...49
5.3 Overall experience,learning,knowledge gained……………………………………...51
5.4Recommendations…………………………………………………………………….53
REFERENCES/BIBLOGRAPHY……………………………………….54
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LIST OF TABLES
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LIST OF FIGURES
xi
ABBREVIATIONS
A/C Account
ABBS Any Branch Banking Services
ATM Automated Teller Machine
BBA Bachelor of Business Administration
CDMA Code Division Multiple Access
CSD Credit Service Department
E-banking Electronic banking
EBEP Easy Buy Easy Pay
FD Fixed Deposit
GIBL Global IME Bank Ltd
GSM Global System for Mobile Communications
IME International Money Express
KYC Know Your Customer
Ltd Limited
LU Lincoln University
NRB Nepal Rastra Bank
PCM Phoenix College of management
Reg No Registration Number
xii
CHAPTER ONE
INTRODUCTION
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1.1 Background
An internship is a form of experiential learning that integrates knowledge and theory
learned in the class room with practical application. It is an opportunity to combine and
integrate theoretical knowledge into career related experience. Internship has crucial
importance for students as it provides exposure in the organizational environment and
also develops individual skill to understand how to handle work related problem. It also
helps to develop interpersonal skills and enable to work under immense pressure.
Phoenix College of management affiliated to Lincoln University College has set the
internship program as the partial fulfillment of Bachelor (Hons) in Business
Administration (BBA) in last semester where students involved as an intern in any
organization for 8 weeks and prepare a report based on their experience and involvement
in the real corporate business environment.
To fulfill the part of BBA program, the internship was carried out of CSD of GLOBAL
IME BANK. Customer service department is the department which deals with the
customer of the bank for the purpose of serving customer as a part of their service and it
involves various activities like opening an account to its closing, providing account
statements as per customer’s demand, issuing and distributing ATM cards etc. The basic
activities carried out at CSD are customer counseling, account operations and distribution
activities, making and issuing cheque books etc.
1.2 Objectives
The General objectives of this study are:
• To the partial fulfillment of the requirement for the award of degree of Bachelor
(Hons) in Business Administration (BBA)
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• To learn how to handle customer and tackle with their grievances in Customer
Service Department.
1.3 Methodology
For Eight weeks internship program, various process need to be followed in selecting
organization, providing them letter and receiving confirmation and getting out internship
work.
1.3.2 Placement
During the internship period the intern was placed under the Customer Service
Department at the Sinamangal Branch. Internee was required to handle all the activities
of the department under the guidance and supervision of the CSD staff and operation in
charge. The two months internship really helped intern to develop interpersonal skills.
The intern was able to learn the bank culture, work environment and working procedure
of Global IME Bank Ltd. Two months of time is not sufficient to gather overall
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knowledge of banking, but however these two months of internship had really been
knowledgeable and fruitful for the intern to gain at least brief understanding of it.
In GIBL, throughout internee internship period, the internee was placed in Sinamangal
Branch, Customer service department (CSD). It was under the supervision of Ms. Richa
Neupane (Operation in Charge).
Address Sinamangal
1.3.3 Duration
According to the university (LUC), students are required to do the internship for a
standard of duration of eight weeks. So internee worked at Global IME Bank Ltd for 8
weeks. Internee worked the entire period in a single department i.e. customer service
department. The duration of internship has been defined for minimum of eight weeks.
The internship was completed from 14th June 2017 to 16th August 2017 under the
supervision of Mrs. Richa Neupane operation in charge.
1.3.4 Activities
Internship program provides opportunity to learn and perform day to day business
activities done in bank. The activities performed are:
• Providing general information
• Opening account
• Closing account
• Reactivating accounts
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• Receiving request and dispatch of Cheque book
• Receiving request and dispatch of ATM cards
• Distribution of different forms
• Distribution of ATM cards and cheques.
• Filing Account opening, Account closing, and various applications forms in its
respective file.
• Keeping records of Cheque Clearing and Return on Cheque Clearing on its
respective Register
• Handling phone calls
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CHAPTER TWO
INTRODUCTION OF BANKING INDUSTRY
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2.1 Introduction of Bank
A bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital markets.
It provides a great variety of financial service. The bank hold money on behalf of
customers, which is payable on demand, by withdrawal. Banks use the money they hold
to finance loans, which they make to businesses and individuals to pay for operations,
mortgages, education expenses, and any number of other things. Due to their importance
in the financial stability of a country, banks are highly regulated in most countries. Most
nations have institutionalized a system known as fractional reserve banking under which
banks hold liquid assets equal to only a portion of their current liabilities. In addition to
other regulations intended to ensure liquidity, banks are generally subject to minimum
capital requirements based on an international set of capital standards, known as the
Basel Accords.
As per NRB Act 2002- “Bank is a financial institution, which provides financial services
that may be in the form of accepting deposits, advancing loan, providing necessary
technical advices, dealing over foreign currencies, remitting funds, etc.
Banking sector plays an important role in the economy development of the country.
Commercials banks are one of the vital aspects of this sector, which deals in the process
of channelizing the available resources in the needed sectors. It is the intermediary
between the deficit and surplus sector of financial resources.
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centers of money lending transaction. Indeed the traces of “rudimentary banking” were
founded in the Chaldean, Egyptian and Phoenician history. The development of banking
in ancient Rome roughly followed the Greek pattern. Bank suffered oblivion after the fall
of the Roman Empire after the death of Emperor Justinian in 565 A.D. and it was not
until the revival of trade and commerce in the middle Ages that the lessons of finance
were learnt a different from the beginning. Money lending in the middle ages was,
however, largely confined to the Jews since the Christians were forbidden by the Canon
law to indulge the sinful act of lending money to others on interest. However, as the hold
of the Church loosened with the development of trade and commerce about the thirteen
century Christians also took to the lucrative business of money lending, thereby entering
keen competition with the Jews who had previously monopolized the business. As a
public enterprise, banking made its first beginning around the middle of the twelfth
century in Italy and the bank of Venice, founded in 1157 was the first the public banking
institution. Following it were established the bank of Barcelona and the bank of Genoa in
1401 and 1407 respectively. The bank of Venice and the Bank of Genoa continued to
operate until the end of eighteen century. With the expansion of commercial activities in
Northern Europe there sprang up a number of private banking houses in Europe and
slowly it spread throughout the world. In Nepal, modern banking starts with the
establishment of Nepal Bank Limited
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A year after its formation, the Udyog Parisad formulated the company act and the "Nepal
Bank Act” in 1937 A.D. which established the Nepal Bank Ltd. with the technical
cooperation of the Imperial Bank of India, as the first commercial bank of Nepal. In
1956, the Nepal Rastriya Bank act was formulated and Nepal Rastra Bank was
established as a central bank on April 26, 1956. The NRB focused mainly on eliminating
dual currency system prevalent in Nepalese market. NRB tried to decrease circulation of
the Indian currency, replacing it with the Nepalese currency in various transactions of
trade and commerce. There were other government banking institutions. Rastriya
Banijaya Bank (National Commercial Bank) a state-owned commercial bank was
established in 1966.
In the mid-1980s, three foreign commercial banks opened branches in Nepal. The Nepal
Arab Bank (now Nepal Bank) was co-owned by the Emirates Bank International Limited
(Dubai), the Nepalese government, and the Nepalese public. The Nepal Indosuez Bank
(now Nepal Investment Bank) Nepal Grindlays Bank (now Standard Chartered Bank
Nepal) was co-owned by a British firm called Grindlays Bank. Now there are many
banks and financial companies in the country. There are
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2.3.1 Commercial Banks in Nepal
The Commercial bank is the oldest form of bank. In general, bank that performs all kinds
of banking business and generally finances and commerce is called commercial bank. It
occupies quite an important place in the framework of every economy. Commercial
banks deal with activities of trade, commerce, industry and agriculture that seek regular
financial and other help from banks for growing. The main objective of commercial bank
is to mobilize idle resources in productive use after collecting them from scattered
sources. They accept deposits from the public and use the money to help the community
by making loans to individuals, Organizations, governments and business. Commercial
banks, acquire funds from one group of surplus spending units and making these funds
available to other deficit units facilitating the effective mobilization of resources, which
in turn leads to sound economic growth of the country.
The main aim of a commercial bank is to earn profit like any other business entity. It
lends a certain percentage of the cash lying in deposits on higher interest rate than it pays
on such deposits. The difference of interest on deposits received and loans advanced are
the main source of its income. Commercial banks represent the most important financial
intermediary when measured by the total assets. In modern times, commercial banks are
concentrated in their activities of fulfilling the financial need of their customer. Thus
commercial banks are simply a business firm engaged in financial intermediation as well
as perform additional functions under strict supervision and control of the central bank.
In the context of Nepal the first Commercial bank, “Nepal Bank Limited” was established
in 1937 A.D. and the second “Rastriya Banijya Bank” was established in 1966 A.D.
Nepal has opened its door to foreign commercial banks in the kingdom almost a decade
back. As the country followed economic liberalization, there was massive entrance of
foreign banks in Nepal. Consequently, Nepal Arab Bank was established in1985 A.D.
similarly the Nepal Indosuez Bank was established as a joint venture between Nepal and
France in1986 A.D. the legitimate entry of foreign commercial banks with full-fledged
banking functions led to rapid growth of banking system. After 1990 economic
liberalization policy obtained by the government. In Nepal there are operating 28-
commercial banks, which in shown table below:
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Table No. 2.3.1(a) List of Commercial Banks of Nepal
S.N. Name of the bank Year of
Establishment
(A.D.)
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19 Prime Bank Limited 2007
B&FI’s 1980 1985 1990 1995 2000 2005 2006 2010 2012 August
2016
Commercial 2 3 5 10 13 17 18 30 32 28
Banks
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Growing trend of commercial banks
35
32
30
30 28
25
18
No. of Bank
20
17
15 13
10
10
5
5 3
2
0
1980 1985 1990 1995 2000 2005 2006 2010 2012 2016 Year
The table and figure below shows the trend in which the commercial banks of Nepal have
been grown since last two decades. As per the Figure 2.3.1 and Table 2.3.1(b) above the
number of commercial banks shown in 2012 was at the peak point. Later on NRB pass
the policy to maintain 8 Arab Authorized capitals because of which the commercials
banks have to merge with one another to build the required capital. So, from 2013 Bank
and Financial Institutions go on merger and acquisition process to meet the standard
criteria of authorized capital regulated by NRB which slightly decrease the number of
commercials banks in Nepal that tend to bend the curve below.
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rupees. Total deposits and loans of all commercial banks of Nepal is 2,093 billion rupees
and 1,736 billion rupees, respectively (as of mid-July 2017). Out of the total loan of
1,736 billion rupees, local currency loan is 1,710 billion rupees.
The Central Bank of Nepal is shrinking the number of banks and financial institutions
(BFIs) and insisting on the BFIs to merge and for acquisition. Small development banks
and financial institutions either go for mergers or are being taken over by commercial
banks. No new license is being issued to banks and financial institutions by the central
bank.
Mega investments, no doubt, call for huge amount of funds. Funds can be arranged either
from local banks and financial institutions or through international markets. The appetite
of existing commercials banks and other financial institutions is limited to medium and
small projects, except for some consortium financing. Borrowing from international
market is subject to many factors like interest rates risk, credit risk, market rate risk,
foreign exchange risk, country risk etc. But it does not mean that local borrowing is not
subject to these factors.
The Banks and Financial Institution Act (BAFIA), 2074 (2017) opens establishment of
Infrastructure Development Banks (IDB) though it is reluctant to issue new licenses to
commercial banks and other financial institutions. Section 107 of the same Act provides
that the central bank can formulate the policy with respect to Infrastructure Development
Banks.
As per the Licensing Policy, a minimum paid up capital of IDB has to be 20 billion
rupees. If IDB is established from local investment only, and promoters group shall hold
a minimum 51% of the shares and 30% shares would be allocated to the public. If IDB is
established with foreign investment, foreign investors can own 20% to 85% of the shares
but it has to allocate at least 15% shares to the public. If foreign shareholding is 20% or
more but less than 50%, the public shall be allocated, at least, 30% of shares. Local
promoters group cannot invest in shares using capital borrowed from any bank or
financial institution. Due to NRB rules and regulation regarding paid up capital and other
requirements many banks are merging with another bank who are competitive in market.
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2.5 Challenges and Opportunities of Banking Industry
2.5.1 Challenges
• Intense Competition
With the representation of 28 commercial banks with their several branches spread all
around the country, the banking sector today is under the pressure of intense competition.
Customer’s change in taste, preferences and want for innovative products and services
has further acted as a catalyst.
• Liquidity Crisis
Improving the worsening liquidity crisis that is directly affecting the operation of banks is
a major challenge for the banking sector in the current scenario. Higher loan investment
compared to the deposit and the policy that requires declaration of the source of fund
exceeding Rs one million contributed to liquidity crisis.
• Political Instability
As the country’s political situation is unstable, the investors are reluctant to invest in new
projects. Due to political instability economic development is not able to foster, as a
result, investor back off for making huge investment as they assume the loss will
overshadow their amount of profit.
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policy states, 10 billion is to be raised as capital by all commercial banks very risky for a
new entrants to carry out their transactions.
2.5.2 Opportunities
• Emerging Nation
Nepal is one of the developing countries among all other countries. There are various
projects that have been undertaken to develop the economy of the country. Among the
various other sources, bank loans are the major source of investment.
• Merger
A tough competition has been going on in banking industry. Hence, banks need to
strengthen and increase capital to compete in the market. Mergers strengthen the bank
and bring economies of scales. Mergers lead to synergy effect and helps in cost saving of
banks.
• Technology
Almost all banks have e-banking and mobile banking facilities. The customers of bank
have an easy access to their bank account and its services sitting anywhere they want.
Most banks have their own mobile apps for security concerns. Customers are notified
regarding changes to their account.
• Remittance
The number of migrant population for employment is rapidly increasing. Among those
migrants most of them are unskilled. Appropriate products should be designed to target
this growing migrant population.
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CHAPTER THREE
INTRODUCTION OF GLOBAL IME BANK LTD
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3.1 Profile of GIBL
Global IME Bank Ltd. (GIBL) emerged after successful merger of Global Bank Ltd (an
“A” class commercial bank), IME Financial Institution (a “C” class finance company)
and Lord Buddha Finance Ltd. (a “C” class finance company) in year 2012. Two more
development banks (Social Development Bank and Gulmi Bikas Bank) merged with
Global IME Bank Ltd in year 2013. Later, in the year 2014, Global IME Bank made
another merger with Commerz and Trust Bank Nepal Ltd. (an “A” class commercial
bank).
For the day to day operations, the bank has been using the world renowned FINACLE
software that provides real time access to customer database across all branches and
corporate locations of the bank. This state of the art customer database has also been
linked to a Management Information System that provides easy reach to all possible
database information for balanced and informed decision making.
The bank has been able to achieve excellent diversification of its assets. The bank has
diversified interests in hydro power, manufacturing, textiles, services industry, aviation,
exports, trading and microfinance projects, just to mention a few. The flawless
performance of the bank in these last years has elevated it to a premier status in the
industry. The bank has been handling government transactions and is officially among
one of the few commercial banks trusted by the Government in handing Government
revenue transactions of various offices. The bank has been able to earn the trust and
confidence of the public, which is reflected in the large and ever expanding customer
base with more than 550,000 numbers of accounts in deposit base and above 16,000 in
credit. Through all this the bank has been able to truly achieve its vision of being “The
Bank for all.” Even with all this success, the bank remains internally focused towards
manpower development, product innovation and process innovation etc., to have a strong
and solid foundation, which are ongoing and continuous improvement initiatives
undertaken by the management and staff alike.
GIBL has been conferred with “The Bank of the Year Award 2014” for Nepal by the
Bankers Magazine (Publication of the Financial Times, UK) and “Best Internet Bank
2016- Nepal” by International Finance Magazine, London. It has been appointed as
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handling bank unit of CREF (Central Renewable Energy Fund) under AEPC (Alternative
Energy Promotion Center). GIBL has been the first ever bank selected for such purpose
by AEPC.
3.2.2 Mission
To win respectable market share through customer focused quality products and services,
innovative business solutions and technology driven banking thereby enhancing the
growth and profitability of the bank so as to ensure the optimum benefit to all stake
holders at all times.
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3.2.3 Vision
The bank shares a common vision of “The Bank for All” amongst its Promoters,
Directors, Management Team and Staff in commitment to providing the highest standard
of services for customers from all regions and societies.
A. Saving Deposits
There are number of saving accounts as per the customers’ requirements. Different types
of saving account are targeted for different customers and of different requirement. Types
of saving accounts are as follows:
Table No. 3.3(a) Interest Rates on Deposits
4.50% 500,001/- to
1000,000/-
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4. Balbalika Bachat 3.50% 1,000/-
B. Fixed deposits
Global IME Bank Ltd has introduced several schemes of Fixed Deposits in order to cater
the needs of valued depositors. It offers attractive rates of varied maturities ranging from
three months to two years. This type of deposit usually offers the highest interest rate.
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C. Traffic Voucher:
Another major market Global IME Bank is of Traffic voucher The bank provides
transaction for traffic fines number of people come to pay the fine through traffic voucher
daily around 90-100 people come in bank on average to pay the fines it is very
convenient as it is hassle free.
• Transaction
a. Fund Transfer
b. Credit Card Payment
c. Shopping
d. Landline Bill Payment
e. Postpaid Bill Payment
f. Recharge
i) NTC GSM Prepaid
ii) NTC CDMA Prepaid
iii) E-Sewa Account
• Request
a. Card Stop
b. Cheque Stop
c. Statement
d. Cheque Book
e. Pin Change
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f. Help
• General Enquiry
a. Online Account Balance
b. Last Five Transactions
c. Banking Hour
d. Exchange Rate
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person to travel to the telephone company’s office and wait in line for several minutes,
sometimes even an hour with this service Bank’s customers can pay telephone bills
directly from their home or office through use of online banking and mobile banking
services. Currently, Global IME Bank has agreement with Nepal telecom (NT) so that
customers can easily pay their NT telephone bills online or by using mobile phones. In
addition the banks customers can also pay their NT telephone bills by using Global IME
Bank branch. All modes of utility bill payment are free of cost.
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The branch where the intern was assigned, internship was divided majorly in two
departments. One was the customer service and cash department. Another was the loan
department. The lower floor of the office included the Customer Service Department as
well as cash department which was under the supervision of Mrs Richa Neupane
(operation in-charge) and under interim supervision of Ms. Jyoti Bhandari, all the
customer queries
and problems were solved regarding their day to day problems. The overall loan
transaction was supervised by the Loan Manager Mr. Rajan Dangol.
BRANCH
MANAGER
Kabita Phuyal
LOAN OPERATIONS
MANAGER MANAGER
Rajan Dangol Richa Neupane
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Global IME Bank Ltd in year 2013. Later, in the year 2014, Global IME Bank made
another merger with Commerz and Trust Bank Nepal Ltd. (an “A” class commercial
bank).
During 2015-16, Global IME Bank Limited acquired Pacific Development Bank Limited
(a "B" Class Development Bank) and Reliable Development Bank Limited (a "B" Class
Development Bank).
The bank was established with the largest capital base at the time with paid up capital of
NPR 1.0 billion. The paid up capital of the bank has since been increased to NPR 8.08
billion. At present the bank's shares are publicly traded as an 'A' category company in the
Nepal Stock Exchange.
Along with the use of renowned software” Finnacle” that provides real time access to
customer database across all branches and corporate locations of the bank. this state of
the art customer database has also been linked to a Management Information System that
provides easy reach to all possible database information for balanced and informed
decision making. Recent enhancement includes, A disaster recovery system (DRS) of the
Bank has also been established in the Western Region of Nepal (200 kms west of
Kathmandu).
The present situation includes development and enhancement of various products and
services in order to satisfy customer like Global IME Bank on viber facilities, Global
Remit, SME loan approval within 3 days for developing and promoting small and
medium scale business.
Also Global IME Bank is expanding its branches widely all over the country including
remote areas, at present it has 108 branches all over the country.
• Interest rate based competition among various Banks and financial institution due
to high liquidity crunch gives a strong challenge for GIBL to compete with a
market interest rate.
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• Uncertainty due to the fluctuation in the rules and regulations.
• Political instability in Nepal causes a challenge for GIBL to perform its daily
activities in smooth manner.
• Changes in NRB’s policies affect the internal policies of BOKL that ultimately
affect predetermine earning strategies.
• Stiff competition in financial market.
3.6.2 Opportunities
• Due to its huge capital and wide network gain by merger, GIBL has possibility to
provide banking services to all.
• Largest reach to the customers with its largest network.
• Certified as a Class 'A' institution, it is able to expand its product portfolio.
• Geographic expansion of the bank by extending branches
• Liberalization in private sector in Nepal empowers GIBL to boost up its economic
activities.
• Use of advance FINACLE system reduces the extra reporting activities, which
saves the time as well as cost that encourages the continuous profit in near future.
• Highly skillful staffs of GIBL are another internal strength that aid to grab
opportunities by uplifting its efficiency and effectiveness in operation.
• Adoption of advance technology builds an opportunity to be one of the best
commercial bank.
• GIBL main focus is toward customer service which makes its more competitive
and creates opportunities in marketplace.
• GIBL is a highly trusted bank with a large number of prime customers and loyal
customers can easily catch market opportunities by satisfying its customers.
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CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE/PROBLEM
SOLVED
4.1 Background
As an organization has numerous departments, GIBL also has various departments and
the activities are performed respectively according to their nature and function. During
internship period I the internee got an opportunity to work in the Customer Service
Department of GIBL, (Sinamangal Branch).
The following activities of Customer Service department were performed by the intern:
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3. Documents and form is verified, details of customer are entered into the system
using software 'Finnacle'. This generates the account number, which provides a
unique identity to the customer.
4. The customer is given the account number and he/she can deposit the amount at
cash counter on the given account number.
5. Customers will be provided the cheque book and ATM card on request. Customer
needs to come the following day in order to collect cheque books. In case of ATM
cards, customer needs to come after 10-15 days.
6. Moreover, the customer can enjoy other facilities of the bank like Mobile Banking
facility, Internet Banking facility, Bank Statement on demand, balance certificate
on demand etc. To obtain each of these facilities, a separate form is required to be
filled.
7. Specimen Signature and photo of account holder is scanned and linked to
customer's account entered into the system. The documents are then approved by
Branch Manager and filed in an individual file and forwarded to the cabinet for
storing.
In case of Foreign National intern collect following document for account open:
▪ Certified true copy of Passport
▪ Documents which is certified from concerned Embassy
▪ Certified True copy of valid Visa
▪ All documents of personal account for all the joint parties.
In the case of the illiterate, intern obtain thumb impression in the specimen card.
Moreover, the customer is required to furnish photograph as well. No checkbook is
issued and the account holder is required to visit the bank in person for withdrawal.
Terms and conditions should be explained.
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Fill up and submit Reject in case
Account Opening Form requirements are not
at CSD fulfilled
Entry of customer
details into database
using 'finnacle'
❖ Corporate Account
Corporate accounts are the company account. The required minimum balance of global
IME bank is RS 5000 Opening Corporate Account. There are 4 types of corporate
account and documents required for these accounts are as follows:
▪ Proprietorship Account
▪ Partnership Account
▪ Corporate Account
▪ Account of Institutions/Association/Societies
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▪ PAN Certificate
▪ Citizenship Certificate/Passport
Partnership Account: A business firm registered in the name of more than one
individual is known as a partnership firm. The proportion of the share of benefit and loss
among the partners is mentioned in the partnership deed.
Role of Intern: Intern asks and collects various documents to open partnership accounts,
which are listed below.
▪ Registration Certificate
▪ Citizenship Certificate/Passport (of partners)
▪ PAN Certificate
▪ Registered Partnership Deed
Corporate Account: Companies can be both private limited and public limited. They
are called limited because their members are limited to the number of shares they hold in
the company.
Role of Intern: Intern asks and collects various documents to open corporate accounts,
which are listed below.
▪ Registration Certificate
▪ Citizenship Certificate/Passport of Authorized Signatories
▪ PAN Certificate
▪ Memorandum and Articles of Association
▪ Board Resolution
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▪ PAN Certificate (if applicable)
▪ Constitution and By-Laws
▪ Citizenship/Passport of Authorized Signatories
Intern follows below points, while opening corporate account:
▪ Legal status of the account holder should be examined to open accounts and
Original documents should be checked and a certified copy should be retained.
▪ Any blank space in the “instruction” and “specimen card” column should be
crossed.
▪ An account number is to be assigned and deposit to be accepted in the deposit slip
(voucher) and a copy to be returned to the account holder.
In fixed account, customer keeps their amount into the bank for fixed period of time and
the interest rate of fixed deposit account is usually high GIBL interest rate for FD during
my internship was 12% per annum. FD is for some specific period of time like for 3
months,6 months, year as per customer choice. Interest income is paid on regular interval
and repayment of principal amount is done at maturity. Customer can withdraw the
accrued interest whenever he/she likes. A Fixed Deposit (FD) is opened after a customer
agrees on the interest rate provided and period of deposit with the bank. In case of FD
account, just an application form is to be filled out as the account holder must normally
have any account maintained with the bank. Bank issues a Fixed Deposit Receipt as a
proof of having accepted fixed deposit.
As an intern, the internee helped in opening fixed deposit accounts.
1. Fixed Account is opened similarly as the saving account. For opening a Fixed
Account, customers are required to open a saving account as well if they don't
have account at the bank.
2. Once the customer deposit the amount, the customer's Fixed Account is credited
by the amount deposited and it is linked with saving account by cash department.
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3. FD account is opened by inputting all details like amount of deposit, number of
years/months, interest rate, name of depositor, date of opening etc.
4. Upon authorizing of the transaction by the Branch Manager, FD receipt is
generated with all of the above mentioned details and handed over to the
customer.
5. The bank keeps a copy of this receipt received by the applicant.
Upon maturity of the FD, the FD account is automatically closed by the system and
principal amount and interest earned is transferred to the saving account after deduction
of taxes.
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4.3.4 Closing account
If the customer wants, he/she can close his/her bank account and terminate all the
transactions with the bank. The account closing process can be completed within a couple
of hours or even in couple of minutes depending upon the availability of all the
authorized personnel required, at their respective desk. Account is closed when a
customer moves away to another country or city; moves to another bank for better
interest rates and better services or for some other valid reasons. The internee not only
perform account opening function but also performed account closing function, internee
helped in closing the account of desired customers who wants to close their account in
GIBL.
1. The account holder fills an Account Closing Request Form and hands it over to
the CSD that verifies the customer's signature or photo and takes back the
remaining cheque leaves and ATM card.
2. The Account Closing Form is then forwarded to back office to make sure that
customer has no remaining obligation to the bank.
3. After the approval for closure is obtained from the back office, the account is
closed.
4. The remaining amount in the customer's account is paid back to the customer.
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Submit account closing form with
remaining cheque leaves and
ATM card
Account closed
3. Unused cheque leaves and ATM card are received from the customers and tattered.
5. To the extent possible, authorized signatory should be asked to visit the bank in
personal.
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Old customer can request for the cheque book as per their requirement by filling up the
cheque request slip specifying account holder's name, account number, signature and
number of cheque leaves required. Account holder can send others on his/her behalf for
receiving the cheque book.
In urgent cases, cheque book is prepared instantly otherwise customer needs to come the
following day to collect cheque book. Once the cheque is printed, the cheque book is
made. Cheque details are recorded manually in the register, which includes details like
account holder's name, account number, cheque number, printed date and issued date.
Once the customer signs in that register, they are provided with the cheque book.
The internee prepare the cheque by tearing the printed cheque and make it a book by
stapling and writing the name of accountholder and accout number in cheque book, along
with making cheques internee maintain the record of cheque issued by registering in
cheque issuance register and also provided the cheque book to the customer by
maintaining records along with their verified signature, date, accountholder’s name and
account number.
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4.3.7 ATM Card Distribution
The customer of GIBL can enjoy the ATM facilities at cost of Rs. 1000 which is the
charge up to 3 years. Through ATM card, customer can withdraw their cash without
entering into bank premises from any ATM terminal. ATM cards are sent by NPN
network to the head office and then forwarded to the respective branches. Customer
needs to wait for 10-15 days.
Customer is required to sign the ATM Acknowledgment Form. His/her signature and
face both are verified through “FINNACLE”. Then, a customer is provided with his/her
ATM card after he/she signs in the ATM register. Intern was involved in making ATM
letters and distributing ATM card. The previous ATM cards were replaced by new EMV
chips ATM card during the internship period of intern and the intern arranged almost 500
new ATM cards and their PIN number slips alphabetically and distributed to the
respective customer by calling them through telephone, maintained the record of ATM
card number, accountholders name and date in card issue book and provided card to
accountholder
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passed to other department and rest were handled by self by answering those calls and
answering their queries.
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4.3.15 Account reactivation
If customers do not use their account in regular basis then account will bock
automatically for safety of the customer. As per the GIBL policy the concern Account
Holder should use minimum once in six months to maintain their account active. The
Intern helped filling up the Application of Dormant form, the KYC form along with
signature card that requires two photos and citizenship of particular account holder.
Intern also facilitates to verify the signature of particular account holder and reactive the
dormant account by using FINACLE system of bank.
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4.4 Understanding of System, Processes and Rationale
During the internship period of 2 months, the intern was place in the customer service
department where the internee got change to gain the practical knowledge about how that
department is handled in GIBL.
Mrs. Jyoti Bhandari supervisor taught and guided the internee about how to record the
important information while issuing and distributing cheques, ATM cards, how to help
customers by filling form, by providing information, by checking balance and in overall
how to perform activities of CSD and how to handle customers. later all verification
needed activities was verified by the supervisor.
The experiences during the internship were so amazing and fruitful in the process of
learning and understanding about GIBL system and process.
• In the initial phase of learning during internship intern did various kinds of
mistakes unknowingly in which the supervisor helped in every possible way.
• Using the ‘Finnacle’ software for the first time was not so easy but along with the
supervision intern got a chance to use the software.
• Bank perform every activities and transaction according to its system and
understanding its system of operation in every task was a great challenge for the
intern, coping with GIBL structure, procedure and culture was a great experience
of learning for the intern in which intern tried best to learn and perform the task
effectively and efficiently.
• Distribution of cheques, ATM cards etc are done with specific procedure by
maintain records and signature verification and verification is done by comparing
the customer signature with that upload at system.
• Every activity in CSD requires carefulness in regarding system and process of
activities.
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The main challenges for the GIBL are high competitive market. There are many
commercial banks in Nepal which are competitive having high brand value in market.
Numerous problems were arise in GIBL and they were addressed by bank staff including
the intern among them some are mentioned below:
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• Problem regarding incomplete documents and information.
Many customers come to open an account without complete documents promising
to bring it later on. This creates difficulty in document filing. Moreover,
customers who come for closing their account do not bring their ATM card and
remaining cheque leaves. Unless the necessary documents are brought by the
customers, bank cannot proceed further.
In such case the intern helped by politely asking to fulfill all the necessary
formalities to customers.
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of system occur due to error in system and also due to mistake by bank staffs,
these errors makes the customer dissatisfied and hence the dissatisfied customer
arrives at the CSD.
These kinds of problems are to be handled by intern along with the CSD officer
by filling form and by following the procedure; those accounts which were
debited mistakenly are credited.
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CHAPTER FIVE
CONCLUSION/LESSON LEARNT
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5.1 Conclusion
Global IME Bank is one of the leading commercial banks in Nepal which aspires to
position itself as a progressive, cost-effective and customer friendly institution thereby
providing comprehensive financial and related services to customers. This 2 months
internship period has been a fruitful experience for the present as well as for the future.
A thought that, besides books and knowledge of the syllabic books, there are a lot of
things to be known, understood and learnt. It was really great opportunity to get to know
new kinds of people, new kinds of experiences, new kind of environment and a
completely new atmosphere around us. It was learning by opportunity and had been
successful to make a change within myself.
Being an intern wouldn’t have been much interesting without the support of the Global
friendly staffs. The internship has worked over the development of communication and
interpersonal skill of the internee. The internee has also learnt that the behavioral issues
are the most important inside the organization culture and the customers are satisfied
when they are behaved properly. The study refers to the CSD that deals directly with the
customer’s enquiries, handling complaints and service distribution.
While concluding this report, the intern is intensely satisfied with the internship and its
outcome. The internee got the life-time memorial experience. Also the internee got to
realize that the customer satisfaction is the first and foremost aspect of any of any
organization (i.e. Banks referring to this report) and the CSD involves all those activities
that serve in satisfaction of the customers. Hence, the bank must analyze such factors to
gain success in the future by fulfilling the customer’s needs and demands. The Internee is
much delighted and feels honored to have got chance to complete internship in such a
reputed bank and hope this will prove to be advantageous for my career.
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• The bank has altogether 108 branches inside and outside the valley. From the
starting date it is able to deliver the quality and best services with latest
technology providing various banking services i.e. ATM, E-banking, etc. to retain
its customers.
• Within this short time period the bank has introduced variety of products in order
to attract large pool of customers and is still updating new products.
• The organization structure is simple. All employees are skilled and motivated.
There is a good organizational culture and cooperative working environment.
• Analyzing the customer by their occupation, service holders accounts highest
followed by students and business persons.
• In regards to demand of new services, majority of customers demanded quick
response and problem solving at GIBL.
• Maximum number of people rated high interest rate (saving) for using GIBL
services while compare to other services.
• From this research, several issues are found which needs to be emphasized for
GIBL’s greater success. Most of the information was gained from the formation
of the structure interview as well as the internal database of GIBL. In regard to the
CSD survey as an assignment, we had been taken into consideration for the
feedback of both internal and external customers for the greater accuracy.
• To achieve its mission of establishing itself as one of the potential national
development banks, GIBL should meet the customers’ expectation at any cost and
delight them always.
• GIBL with its various products and services with new technology, quality
manpower and resources, full dedication towards customers. Quick and reliable
services for inward and outward remittance correspondence with different foreign
banks and money transfer agency. The bank is able to achieve its goals and
objectives.
• Together with that, the CSD could work on the minor flaws that it has and work
on it to make itself as good as the other departments of the bank. The CSD is a
very important department which gives an impression to the outsiders about the
bank, so it needs to be good in order to attract and retain.
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5.3 Overall experience, learning, knowledge gained
The intern found this bank is the organization of effective management, well trained,
experienced and competent officials, establishing with the aim of being the leading bank
known for its excellent service. The bank is achieving high and progressive market value
in its customer share. But the bank has some problems in executing its strategies and
extending in their product line since there is frequent change in rules and regulations,
foreign remittance, competition in the market is increasing.
Working in real life (Bank) is not an easy task. It requires high dedication, commitment,
and discipline as a single carelessness hampers the overall performance of the
organization. The intern is also able to grasp various new knowledge as well as the
practical implications of theoretical knowledge after the two months internship exposure.
During the period of internship at GLOBAL IME Bank, the interne was cooperatively
guided by all the staffs for gaining in-depth banking knowledge. The learning
environment of GLOBAL IME Bank was pleasant and outstanding. Therefore, the major
lessons that are learned during internship are:
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• Relationship building:
Customer relationship must be retained by bank. This relationship was strongly
built by interacting with the customers. Friendly terms were maintained so that
attachment to developed with the staffs and bank as well. The art to maintain
relationship with customer was learnt by internee by effectively handling
customer with politeness and responsiveness.
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• Knowledge about the organizational environment and work
culture
The interns have been able to gain experience and knowledge about the
organizational environment and work culture of GIBL. Coping with the
organization environment and culture is must in order to understand it and to
perform in it during internship intern got familiar with GIBL environment and
culture.
5.4 Recommendations
The study drew some recommendations to improve the present situation of Global IME
Bank Limited. After detail analysis some suggestions have been recommended on the
basis of major finding to improve the bank.
• The practice of even friendlier working environment that results in goal
achievement.
• Need to deal with different types of customer with heterogeneous needs and
desire.
• These days even the small financial institution offer the traditional banking
services. So to become competitive in such market bank must focus on the latest
technologies in banking services.
• It would be better if GIBL provide information about career opportunities for the
youngsters by vacancies and internship etc. It will help students to their career
development and also increase the positive image of the bank.
• The process of taking customer’s feedback and responses will help the bank to
fulfill the gap between service provider (bank) and the customer expectation. So
GIBL must focus on customer’s viewpoint in order to satisfy the needs of the
customer.
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REFERENCE/BIBLIOGRAPHY
Books
Cornett, Marcia Millon and Saunders, Anthony (2007). Financial Markets and
Institutions:
Kolb, Robert W. and Rodriguez, Rich ardo J. (1996). Financial markets and Institutions.
Websites
http://www.globalimebank.com/global-ime-bank-profile.html
http://www.globalimebank.com/assets/upload/downloads/GIBL_Interest_Rate.pdf
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