AN INTERNSHIP REPORT

ON
CUSTOMER SERVICE DEPARTMENT
OF
CITIZENS BANK INTERNATIONAL LIMITED,
BIRATNAGAR BRANCH

Submitted by
Amrit Magar
Exam Roll number: 2292/18
TU registration number: 7-2-0003-0550-2018
Mahendra Morang Adarsha Multiple Campus

Submitted to
Office of the Dean
The faculty of management
Tribhuvan University
Kathmandu

In partial fulfillment of the requirements for the Degree of

Bachelor of Business Management (BBM)

Biratnagar, Nepal
August 2023
 STUDENT’S DECLARATION

I, hereby declare that the internship report entitled “AN INTERNSHIP REPORT
ON CUSTOMER SERVICE DEPARTMENT OF CITIZENS BANK
INTERNATIONAL LIMITED, BIRATNAGAR BRANCH” Submitted to the
faculty of management, Tribhuvan University, Kathmandu is an original piece of
work under the supervision and guidance of Mr. Ishwar Bhandari, faculty member of
MAHENDRA MORANG ADARSHA MULTIPLE CAMPUS, BIRATNAGAR, for
the degree of Bachelor of Business management (BBM).

-----------------

Amrit Magar

2292/18

August 2023

ii
 LETTER OF RECOMMENDATION

RECOMMENDATION LETTER
The Internship Report entitled “AN INTERNSHIP REPORT ON CUSTOMER
SERVICE DEPARTMENT OF CITIZENS BANK INTERNATIONAL
LIMITED, BIRATNAGAR” submitted by Amrit Magar of Mahendra Morang
Adarsha Multiple Campus, Biratnagar is prepared under my supervision as per the
procedure and format requirement laid by the Faculty of Management, Tribhuvan
University as partial fulfillment of the requirements for degree of Bachelor of
Business Management (BBM). I, therefore recommend the project work report for
evaluation.

Signature:

Name of Supervisor: ISHWAR BHANDARI

Date: August 2023

iii
 APPROVAL SHEET

APPROVAL SHEET
We have examined the internship report entitled “AN INTERNSHIP REPORT ON
CUSTOMER SERVICE DEPARTMENT OF CITIZENS BANK
INTERNATIONAL LIMITED” presented by [Link] Magar, a candidate for the
degree of Bachelors of Business Management (BBM) and conducted the internship
viva voce examination of the candidate. We hereby certify that the internship viva
voce is acceptable for the award of degree.

ISHWAR BHANDARI

(Supervisor’s signature)

( External Examiner’s signature)

MR. INDRA NARAYAN DEO

(Program Director’s signature)

Date: August 2023

iv
LETTER OF ORGNANIZATION

v
 ACKNOWLEDGEMENT

This entitled thesis “A study on financial performance of Citizens Bank International

Limited” has been prepared for the partial fulfillment of the requirement of Bachelor
of Business Management (BBM) under the faculty of management, Tribhuvan
University is based on research models involving the use of quantitative aspect of
investment practices.

I wish to extend my deep sense of gratitude to my thesis supervisor Ishwor Bhandari

of Mahendra Morang Adarsha Multiple Campus, who provided me valuable
guidelines, insightful comments, encouragement and generous treatment to complete
this report. Similarly, I also extremely indebtness to all the lecturers of Mahendra
Morang Adarsh Multiple Campus, who encourages me in my entire academic attempt.

I express my heartfelt gratitude to my parents and all my family members as well as

all friends and colleagues. Without their cordial cooperation this work could have
been very difficult for me.

vi
 TABLE OF CONTENTS

TITLE PAGE……………………………………………………………..i

STUDENT’S DECLERATION…………………………………………..ii
LETTER OF RECOMMENDATION………………………………...…iii
APPROVAL SHEET…………………………………………………….iv
LETTER FROM ORGANIZATON……………………………………...v
ACKNOWLEDGEMENTS…………………………………………….vi
TABLE OF CONTENTS………………………………………………vii
LIST OF TABLES…………………………………………………….....ix
LIST OF FIGURES……………………………………………………....x
ABBREVATIONS…………………………………………………….....xi
CHAPTER 1
INTRODUCTION……………………………………………………….1
1.1 Background of the study........................................................................1

1.2 Objectives of the study.........................................................................1

1.3 Limitations of the study……………………………............................2

1.4 Methodology of the study…………………………..............................2

1.4.1 Sources of data………………………………….....................3

1.4.2 Organization selection...............................................................3

1.4.3 Placement……………………………………………………3

1.4.4 Duration of Internship…………………………........................4

1.4.5 Activities performed……………………………......................4

CHAPTER 2
INTRODUCTION TO BANKING INDUSTRY………………………..8
2.1 History of Banking service…………………………….......................8

2.2 Evaluation of Banking in Nepal……………………………………….9

2.3 Role of Banking industry in economy……………...............................10

vii
CHAPTER 3
INTRODUCTION OF THE ORGANIZATION……………………….13
3.1 Introduction of CBIL. ………………………………........................13

3.2 Recent financial performace………………………...........................14

3.3 Organizations structure ………………………………......................15

3.4 Introduction of CBIL in Biratnagar ………..........................................16

3.5 Department of CBIL in Biratnagar…………………………………...16

3.5.1 Customer service department ………………………………..16

3.5.2 Credit department……………………………......................17

CHAPTER 4
ANALYSIS OF ACTIVITIES DONE/PROBLEM SOLVED…………22
4.1 Activities done/problem solved……………………………………....22

4.2 Activities performed in CSD………………………………………...22

4.3 Activities performed in credit department……………………………..23

4.4 Analysis of activities performed...........................................................23

CHAPTER 5
CONCLUSION AND LESSON LEARNT…………………………….26
5.1 Conclusion…...................................................................................26

5.2 Lesson learnt…................................................................................27

5.3 Recommendation...............................................................................28

REFERENCE
APPENDICES
APPENDIX 1
APPENDIX 2

viii
 LIST OF TABLES

Table 1: Duration Of Intern’s Work In CSD…………………………….4

Table 2: Present Status Of Financial Institution In Nepal………………...14

Table 3: Consumer Loan & Other Production..........................................20

Table 4: Management Term Of CBIL.....................................................30

Table 5: Branches Of CBIL…………………………………………...31

ix
 LIST OF FIGURES

3.3 Organization’s Structure…………………………….……………….15

x
 ABBREVATIONS

A/C Account

AGM Assistant General Manager

CBIL Citizens Bank International Limited

BBM Bachelors of Business Management

ATM Automated Teller Machine

BFIs Bank and Financial Institutions

BODs Board of Directors

CAD Credit Administration Department

CEO Chief Executive Manager

BM Branch Manager

CSD Customer Service Department

DMAT Dematerialization

FOM Faculty of Management

GM General Manager

KYC Know your Customer

MR Mister

MRS Mistress

NRB Nepal Rastriya Bank

TU Tribhuvan University

xi
 1

CHAPTER 1
INTRODUCTION

1.1 Background of the study

Project study is an essential and mandatory part for graduation program in the
discipline of Bachelors of Business Management (BBM). BBM is a four year program
of management that is aimed at producing a capable middle level manager, who is
self-motivated and capable to deliver his/her knowledge at the workplace. The
internship in the final (8th) semester of the program gives the way to practice situation
and to learn the art of conducting study and presenting its findings in a scientifically
and systematic manner.
This report has been prepared in partial fulfillment of the requirement for the degree
of Bachelors in Business Management (BBM) at Mahendra Morang Adarsha Multiple
Campus, one of the leading institutions of Tribhuvan University. The present report
has been prepared on the basis of experience obtained throughout the internship
period. Primary source of this report preparation is the observation and personal
experience in course of the involvement in the banking activities in the Biratnagar
branch of Citizens Bank International Limited (CBIL), as an intern.
The major part of this internship was spent in the Customer Service Department
(CSD) of Biratnagar branch and rest time in the other departments such as teller
department. Customer service is the front desk of any organization where the
organization makes first contact with the client and make sure the activities designed
to satisfy the customers actually worked out or not. Teller department, on the other
hand, is the department that customer deposits funds, withdraw cash, or conduct other
financial transactions.

1.2 Objectives of the study

The main objective of this internship program is to get a practical insight into the real-
life activities of the financial institutions such as banks and be prepared for the
Practical work experience in the future by gaining practical knowledge and ideas
about the banking operations from Nepalese perspective. The main objectives are:
 3

 To make analysis of the practical implementation of the theoretical knowledge

gained through the classroom study.

 To be familiar with the various aspect of the banking firm and develop an
understanding about the actual activities of the banks.
 To analyze the banking process of operations.
 To enhance the communication, interpersonal and public relation skill through
direct interaction with the customer.

1.3 Limitations of the study

It was a great opportunity to be an intern in the bank. The knowledge gained during
the course of internship was a rare feat. However the internship had some limitations.
The main limitations of internship are listed below:
 Due to lack of time, study of each and every activities of the bank in depth was
not possible.
 Due to privacy policy maintained in an organization, unavailability of information
created a problem.
 Interns were not allowed to use the system and entered the cash premises.
 The prime source of information for report preparation was the informal
questioning with the CSD head and the observation of the activities as well as the
active involvement in the activities allowed to the interns.

1.4 Methodology of the study

This report for the internship is based on the information and data gathered from the
primary and secondary sources as mentioned below. This report tries to present an
analysis of the organization (CBIL) along with the introduction of the banking
industry, the bank itself and the activities performed in the bank as an intern as well as
the conclusions and recommendations to the bank.
The methodology is presented as follow:

1.4.1 Sources of data

Primary sources of data
 4

 Observation of working environment.

 Direct interface with the walk-in customers.
 Interaction with the staffs at different level of the bank.
 Involvement in the activities in the bank within the limit of access
allowed to the intern as under the supervision of the supervisor.
Secondary source
 Annual General Report of CBIL.
 Information and data from the website of the bank
([Link]) and from the intranet of the bank (Pumori
plus IV).
 Publications and journals.

1.4.2 Organization selection

Internship was completed from the Citizens Bank International Ltd
(CBIL). It is an established bank with the history of more than 5 successful years with
a group of experienced, dynamic and committed team. Biratnagar branch of the bank
was the branch where the internship was completed, the selection of which was
primarily due to the proximity of the branch from the place of residence. CBIL is a
bank having a strong presence in the market and providing an excellent banking
service to the customers.

1.4.3 Placement
The starting of the internship was with the familiarizing of the intern
with the staffs and the operational environment in the branch. The encouraging and
cohesive environment made the process of learning easier. During the eight weeks of
internship, intern was mostly placed in Customer Service Department (CSD).
However, the opportunity of gaining knowledge about the operational process and
other activities of various departments, mostly the credit Department, within the
branch was also provided in the bank.

Table number 1:
Weeks spent in different department
 5

Weeks
Name of department 1st 2nd 3rd 4th 5th 6th 7th 8th
Customer service * * * * * *
Teller & Credit * *
Source: field survey, 2012

1.4.4 Duration of internship

The duration of the internship as defined by the Tribhuvan University
(TU) was of eight weeks. In accordance with the defined duration the internship lasted
from 11.04.2023 to 07.06.2023 for the period of at least 7 weeks.
Despite of the time limitation, much knowledge has been obtained, a lot has been
learned and confidence has developed a lot. The way of communication with people
and customer relationship skill has been developed. Intern was placed at customer
service department (CSD) most of the time and in the credit department with the
placement to the other departments time and again.

1.4.5 Activities performed

The 7th week of internship was very important as per the activities
performed. Every activities of the CSD were performed as a part of the CSD
department in the Biratnagar branch of CBIL.I was placed basically in the CSD. Here
I performed some of the activities under the supervision of my supervisor due the
sensitivity of the issue and other activities performed in the department during the
period of internship.

Activities performed in Customer Service Department (CSD)

 Account opening
Assist customers in the opening of accounts and open accounts through the ‘pumori’
after receiving of all documents essential for the opening of accounts. The access to
the system was, of course, under the supervision of the staffs.

 Cheque printing
 6

Printing the cheques and issue it as well as keeping the records of the cheques issued
in the register maintained for the purpose after getting the signature of the customers.
The customer was asked to fill up the cheque requisition form( in case of cheques to
be issued for the very first time) or the cheque slip in the cheque book (for the new
cheque book to the customers to whom the cheques were issued previously).

 Account closing
Customer was first encouraged not to close their accounts. On their request the CSD
staff would close the account. As an intern I had the following tasks done:
* Provide customers the account closing form and help them fill up the form
* After the inter-department ticket was given to the customer, take the form to the
branch manager for approval.

 Handling Telephone calls

Telephone calls were handled to:
 entertain the queries of the customers
 give information to the customers about the maturity of the FD account, the
arrival of visa cards
 transfer the incoming calls to the respective departments

 Scanning and photocopy

The activity of making the photocopy of the documents such as the citizenship
certificate of the customers, the FD receipt and the other documents as asked by the
staffs of the bank was performed during the internship period.
The account opening forms of the customers (signatures of the accountholders and
their photos) and other documents were scanned during the period
.
 Filing and record keeping
Proper filing of the things like cheque requisition form, ATM acknowledge form,
account opening form etc.
Updating of the account opening register for the new accounts opened and getting the
signature of the authority on the register was the job done.
 Report preparation
 7

At the end of the day the following reports were prepared:

 report regarding the opening of the accounts
 report regarding the number of visa cards issued

This report prepared was checked and verified by the authorities concerned.
 Relationship maintenance
Maintaining good customer relationship was another motto in the CSD. As an intern
it was always kept in mind that none of the activities done should affect the existing
relationship between the bank and customers. As an intern the focus was on the
walk-in customers as well as the existing customers because they the walk-in
customers were the potential customers of the bank who would make the word-of-
mouth advertisement of the bank and the existing customers are the assets of the
bank.
 Dealing with the customers’ complaints
Along with the supervisor of the CSD I was also involved in dealing with the
grievances of the customers. The major grievance was related to the ATM machine.
Customers made the following types of complaints:
 After they punched the amount and pin code in the ATM machine they
received the withdrawal slip but not the amount withdrawn.
 They couldn’t withdraw their money because the notice of ‘transaction failure’
was repeatedly displaced probably due to the network problem.
 The letters on the display board of the branch wasn’t properly visible to the
customer.
 Assistance in various service delivery
The CSD staff was helped in the delivery of the utility services to the customers.
Assistance was regarding the providing the information about the service to the
customer and helping the CSD staff deliver the services.

 Miscellaneous activities
Several other miscellaneous activities were performed during the period of
internship. The activities performed in the CSD may be listed as follows:
 8

 Provide customer with balance certificates, statements, customer advices as

per the rules and regulation of the bank.
 Provide debit cards
 Arrange for the SMS banking and internet banking
 Market and promote the product of the bank and convince the clients.
 Maintain good relationship with customers
 Writing the applications as instructed by the supervisor on behalf of the
customers.

CHAPTER 2
INTRODUCTION TO BANKING INDUSTRY
 9

2.1 History of Banking Service

Right from the time mankind realized the necessity of living an organized life, it has
always searched for new ways to gain security of its life and property. The history of
banking dates back to the time when the first prototypes banks of merchants of the
ancient world (Assyria and Babylonia currently Iraq), at around 2000 B.C., made
grain loans to farmers and traders who carried goods between cities. The development
of banking spread through Europe also and a number of innovations took place in
Amsterdam in the 16th century and in London in 17th century. During the 20th century,
developments in the telecommunications and computing caused major changes to the
banks operation. The world banking industry witnessed further changes in the
operational style, service demanded and the innovations in service delivery.
The first bank to be established was The Bank of Venice in 1157 A.D in the city of
Venice, as an improvement to the chamber of loans, an institution looking after the
management of debt in the city. The Medici Bank that was set up in Italy in 1397, the
bank of Barcelona in 1401 and the bank of Genoa in 1407 were some of the major
notable banks to be established following the bank of Venice. The bank of Venice and
the bank of Genoa continued to operate until the end of the eighteenth century.
The Bank of England in 1694, the Bank of Scotland in 1695, and the bank of North
America in 1782, the bank of France in 1800 were the other major establishments in
the history of world banking industry and the introduction of banking act in 1833 A.D
in the united kingdom, the growth of the bank accelerated as bank could be
established in the form of a joint stock company.
Historically, the primary purpose of a bank was to provide loans to trading
companies. Banks provided funds to allow business to purchase inventory, and
collected those funds back with interest when the goods were sold.

2.2 Evolution of Banking in Nepal

 10

Banking industry is one of the oldest service industry in Nepal involved in lending
and borrowing activities that has gone through various stages of evolution and
development since the Vedic times (200 to 1400 B.C). Towards the end of 8th century,
Gunkam Dev had borrowed money to rebuild the Kathmandu valley. Similarly
introduction of the Nepal Sambat by Shankadhar, a Sundra merchant of the Kantipur
in 1880 A.D; after having paid the full outstanding debts in the country also gives
evidence of the debt service existing in Nepal from the ancient times.
However the history of modern and formalized banking practice started from the time
of Rana Prime Minister Ranoddip Singh (1877B.S-1885 B.S) who established the
“Tejarath Adda” to overcome the drawback of the ancient way of banking. However,
the Tejarath Adda did not accept deposits from the public due to which the financial
needs of common people were largely unfulfilled. Hence the need of the financial
institution was for performing the borrowing and lending facility was felt.
Later on, in the year 1937 (30th Kartik,1994 B.S.), Nepal Bank Limited was
established for the purpose of commencing a financial institution that can fulfill the
void of banking institution in Nepal. With this Nepal the modern banking era started
in Nepal. Nepal Bank Ltd came into being in 1937 A.D as the first commercial bank
in Nepal under the Nepal bank act 1936 A.D replacing the older system of banking
with the motive to develop the trade and industry in the country. Having a primary
objective to create an institution for issuing currency and ending the dual currency
system prevailing at that time Nepal Rastriya Bank (NRB) was established in 1956
(14th Baisakh 2013) under the Nepal Rastriya Bank Act 1955. It is the central Bank of
Nepal responsible for formulating monetary policy and the regulation of the banking
industry of Nepal.
However, as the central bank, Nepal Rastriya Bank had its own limitations and as a
commercial Bank, it was logical for Nepal Bank Ltd to go to unprofitable sectors. So
to catch up with these problems, the government established Rastriya Banijya Bank in
2022 BS (1965 A.D), under Banijya Bank Act 1965 [Link] a fully state owned
commercial bank. The establishment of industrial development bank (converted into
Nepal Industrial Development Corporation 1959 A.D) in 1957, Agriculture
Development Bank in 1968 were the other major developments in the history of
Nepalese banking industry.
Only after 1984, private banks were allowed to operate with a license. With the
introduction of licensing policy a number of joint venture commercial banks came
 11

into existence. The first of those kinds are Nepal Arab Bank Ltd, Nepal Indosuez
Bank Ltd and Nepal Grind Lays Bank Ltd.
With the aim to provide quality banking service, enhance the efficiency and healthy
competition, foreign investment and new technology in banking was introduced.
Nabil Bank is the first foreign bank to be established in 2041 B.S in Nepal. Initially,
50% of shares were owned by United Arab Emirates Bank, 20% by the financial
institutions and remaining, 30% shares are owned by the general public.
Then Nepal Indosuez Bank Limited was established as a second foreign bank in 2042
B.S. In this bank, 50% share is held by Banque Indosuez, France, 15% share by
Rastriya Banijya Bank, 15% by Rastriya Beema Sansthan and 20% by the general
public. It was established with the authorized capital of Rs 120 million, issued of Rs
60 million and paid up capital of Rs 30 million. Another bank i.e, Nepal Grindlays
Bank (now standard chartered bank) was established as the third foreign bank in 2043
B.S. In this bank also 50% share is held by ANZ Bank of Australia, 35% is held by
Nepal Bank Limited and remaining 15% share held by the general public.
There are 32 commercial banks, over 75 development banks and several finance
companies, micro-finance institutions as well as cooperatives performing limited
banking activities. The banking institutions in Nepal offer modern facilities and some
of the international banks have tie-up with some of the commercial banks and other
financial institutions of Nepal. International banks can also open their branches in
Nepal under the commitment made by Nepal in the world trade organization (WTO)
to cater to the needs of foreign travelers. The banks in Nepal offer money exchange
value of almost all foreign currencies as well as profitable credit card facilities for
foreign travelers.

2.3 Role of Banking Industry in Economy

Banking industry is the backbone of an economy. It is the intermediary mechanism
that is primarily responsible for the transfer of the surplus funds from the surplus
generating units in the economy to the deficit facing units. Generally, the surplus
generating units are the units such as households and individuals that generate small
amount of saving. The deficit facing units, however, are the units such as businesses,
institutions and the government which have a huge appetite for funds. There comes
the role of banking industry as an intermediary.
 12

The banking industry then accumulates the small savings of the individuals and
households, transforms the savings into a huge amount of saving and transfer the
amount to the units in the economy that are in need of the fund. This role of
intermediary is the key to the movement of funds in the economy. The chain of
earning, saving and spending, investing and again earning and saving is the key to the
growth of the economy.
The roles performed by the banking industry in an economy can be presented as
follows:
1) Credit Generation
Banking system and the financial institutions play very significant role in
catering the credit needs of the overall society. It generates credit to the credit
deficit units of the economy through the funds that comes to the banking
mechanism. The credit thus generated is used in the productive activities in the
economy. Thus, the generation of credit is most efficiently performed by the
banking industry that helps in the growth of the economy as a whole.
2) Fund Mobilization
Without the presence of an intermediary mechanism like the banking industry
the funds available to a unit of the economy remains immobilized. The
transfer of this to be stagnant fund is another major role played by the banking
industry.
3) Credit Availability
Banking system makes credit available to the needy unit of the economy so as
to aid various needs of the business sector, the government and individuals.
This availability helps in the movement and growth of the economy. It is also
very vital in making the funds available for the development of infrastructures
in the economy.
4) Investment Opportunity Generation
Banking industry is a very potential investment opportunity as well as a very
strong aid to the other available investment opportunities in the economy.
From the risk free investment asset like warrants an individual and the
institutional investor gets the opportunity to generate income from their
resources.
5) Availing access to the resources
 13

The opportunity to get access to the financial resource like the funds is possible with
ease only due to the banking industry and its mechanism. People get access to the
financial resource through the banking system and its mechanism.

CHAPTER 3
Introduction of the organization
 14

3.1 Introduction of Citizens Bank International Ltd

Citizens Bank International Limited (CBIL) was established on June 21, 2007 and
commenced is commercial operation from 20th April, 2007. The head office of the
bank is located at Rangeli Road, Biratnagar. It is an “A” level financial institution as
licenced by the Nepal Rastriya Bank (NRB) as well as a public limited company
established under company act 2056. It is promoted by eminent personalities/Business
and industrial house and reputed individuals having high social standings. It is
managed by a team of experienced bankers and professionals. With the increasing
level of liberalization, privatization and globalization in this sector the commercial
bank such as “Citizens Bank International Limited”, are established to aid the
economic growth and development of this nation. Today’s bank plays a vital role for
the economic development of the country.
Vision
“ To be the leading bank known for its service excellence in the region.”
Mission
To be a trustworthy partner for the progress of individuals and institutions by
designing, producing and delivering the best financial solutions.
Corporate values
The bank will constantly strive to inculcate in its services five corporate values as
follows:
 customer focus
We are committed to meet the financial needs of our customers and exceed
their expectations through innovative solutions.
 Service excellence
We promise to deliver customer centered products and services par excellence.
 Human resource
We employ bright, honest, helpful and pleasant people. We nurture and
empower them to achieve their full potential.
 Corporate governance
 15

We believe in being accountable, conducting business ethically and

maintaining transparency.
 Social responsibility
We are committed to take social initiatives for the development of the nation.
3.2 Financial description of CBIL
Authorized capital: NRs 5,000 million
Paid-up capital: NPR 2101.84 million

3.2 Recent financial performance

Table no.1

S.N Particulars 4th Quarter(F/Y)

1 Earnings per share Rs 10.61

2 Price-Earnings Ratio(P/E Ratio) Rs 21.68
3 Liquidity Ratio Rs 29.12
4 Net worth per share Rs 116.89

Table No.2
Unaudited financial results (Quarterly)
Ratios (%) 4th Quarter(2078) 3rd Quarter(2079)
Capital fund to RWA 15.58% 16.33%
Non-performing Loan (NPL) to total 2.01% 3.10%
loan
Total loan loss provision to total NPL 99.71% 75.28%
Cost of funds 7.74% 8.62%
Credit and capital to deposit ratio 74.40% 78.44%
(Source: Karobar National Daily)

3.3 ORGANIZATION’S STRUCTURE

Branch
Manager
 16

(Source: [Link])

3.4 Introduction of CBIL in Biratnagar branch

The Biratnagar branch of Citizens Bank started its operation from 22nd June 2018. At
the time of establishment there were 8 staffs in the branch and at present the number
 17

of staffs has reached to 15 at present. The deposit in the branch has reached up to
Rs.50crores approximately and the loan portfolio of the branch has reached up to
[Link] branch recently made the profit of nearly Rs.30 lakhs in the past
fiscal year. At present Mr. Bishal Dahal is the branch manager and Mr. Sadhnan
Gupta is the assistant manager of Biratnagar branch of citizens Bank Ltd.

The branch has a team of dedicated employees with a great level of cooperation
among them. The branch has been awarded as the best branch of the year also. With a
good growth rate of progress in terms of loan portfolio and deposit it has also
maintained good relationship with the customers.

3.5 Departments of CBIL in Biratnagar

3.5.1 Customer Service Department (CSD)

Customer service is a series of activities designed to enhance the level of customer

satisfaction that is, the feeling that a product or service has met the customer
expectation and the customer service department (CSD) means the front desk of any
organization that enables face to face interaction with the customers who visits the
organization. For any organization it is the very place which makes an early
impression to the clients. The image and the reputation of the bank depend upon
effective functioning of this department. The competence and attitude of the sales
staff, complaints handling, customer dealings and after sales service are all areas that
affect customer’s perception of the company and also their loyalty to company. If they
are unprofessional or make rude remarks about or to customers, customer’s perception
of the organization will suffer even though the employee is not on duty. It is the first
place where the customers first get the service.

Objectives of the Customer Service Department

 18

The prime objective of the department is to provide competent and effective service to
the customers. Along with that the other major objectives of the department are as
follows:

 Disseminating information
 Listening and handling customers grievances
 Building good customer relationship

3.5.2 Credit Department

a) Corporate Banking
I. Funded Facilities

Overdraft loan

➢ Fixed term loan

Personal loan

➢ Loan against fixed deposit

Loan against counter guarantee

II. Non-funded Facilities

Letter of credit

➢ Bid Bond

➢ Performance Bond

Advance payment Guarantee

b) Retail banking
i. Hire purchase loan
ii. House loan
 19

CBIL has been introducing innovative products to fulfill the needs of the various
segments of borrowers. The Bank primarily focuses on corporate [Link] auto
loan schemes and home loan scheme have been well received by the market.

Trade and Credit Operation:-

In this department L/C transaction takes Place, where Company or

organization buys their equipment through L/C department. This department
also plays a vital for the customer to make available their goods. In this
department L/C transaction take place and loan transaction take place such
as auto loan, home loan, educational, margin loan etc in this department after
the approval of loan then this department does the rest of thing after the
approval of loan whereas L/C transaction take place from the beginning to the
end of the transaction in this department. Due to the new bank they have kept
both of the department in same department. In this department first step of
loan transaction take place. In this department auto loan, home loan,
educational loan, margin loan etc take place. In this department they verified
whether to passed the loan or not to the customer. In this department bank
staff evaluate the property and earning income as per the bank rules and
regulation. Marketing play a vital role in bank, in any organization, or in any
company without marketing it is impossible to face the competition in the
present situation of the market. Marketing helps to grow and extend the
business.

Cash Department

This department is related to cash, cheque and draft .mostly they related
with cash transaction. The deposit and withdraw of cash is done in this
department & the clearing of cheque is also done through this department. The
main function of clearing department:

Outward bills for collection (OBC)

OBCs are those bills which came from different client of different banks for
collection. The clearing officer collect the OBCs from dispatch at morning and
enter them into the OBC register after entering he make two vouchers- one
 20

contra voucher and one simple credit voucher. After this, he enters these
OBCs into the computer and logs them for clearing in clearing house in NRB.
At the end of the day, the OBCs come back from NRB. The OBCs which are
realized the officer in register write realized in front of it and which are return
he write return in front of it. The bills which are cleared the officer give credit
to their account and the bills which are return due to any reason are sent back
to the branch where it came from and the owner of the cheques are informed
about their bounced cheque.

Remittance Department

This department helps to exchange the foreign currency with Nepalese currency. This
department also helps to make travel cheque those who travel outside the Nepal. The
transactions performed by this department are fax transfer, performing pay order, money
transfer through Western Union & City Express and it had network problem time to time &
another is balance problem.

CBIL products at Glance

Deposit products
The bank has introduced various products recognizing the various categories of
customers and their needs. The customers are served through 33 branches and ATM
outlets at major places as well asthrough any Point of Sales (POS) accepting the Visa
Debit Card offered by the bank. Various deposit products of the bank are as follows:

Citizens Super Savings Account(CSSA) Citizens Euro Saving

Citizens Sharedhani Bachat Khata (CSBK) Citizens GBP Saving
Senior Citizens Savings Citizens Fixed Deposit
Citizens Matribhui Bachat Citizens Call Deposit (NPR)
Citizens Mahila Bachat Citizens Current Deposit
Citizens Muna Bachat Citizens Rastrasewak Saving
Citizens Recurring Deposit Citizens Bidhyarthi Bachat
Citizens Zero Balance Account Citizens Special savings
Citizens Saving Citizens Mofasal Saving
Citizens Dollar Saving
 21

Loans and Advances

Corporate Loan

 Term loan
 Working capital/short term loan
 Overdraft
 Trust receipt loan
 Export financing
 Consortium financing
 Other loan

Consumer Loan and other products

❖ Citizens equipment loan ❖ Other loans

❖ Citizens home loan ❖ Citizens SME loan
❖ Citizens auto loan ❖ Citizens margin lending
❖ Citizens education loan ❖ Loan against first class bank
guarantee
❖ Citizens mortgage loan ❖ Loan against government bond
❖ Citizens equipment loan ❖ Loan against fixed deposit receipt
❖ ❖ NPR loan against FCY(foreign
currency)
❖ FD receipt
❖ ❖ Loan against fixed deposit receipt
of other banks
❖ ❖ Citizens gold loan
(Source: [Link])
 22

Other products and services/facilities

❖ Citizens debit card(visa card ❖ Cheque payment and deposit

network) acceptance through network of
various other financial institutions
❖ ATM counter service ❖ Unlimited withdrawal(except in
evening counter) and deposit
❖ Locker facility ❖ Trade operations
❖ 365 days banking facility ❖ Domestic and overseas remittance
facility
❖ Evening counter facility ❖ INR remittance facility
❖ ABBS facility ❖ Foreign currency drafts
❖ Internet banking facility ❖ Traveler’s cheque
❖ SMS banking facility ❖ Clean bill/ cheque purchase
❖ Nepal Telecom prepaid and post- ❖ Documentary draft
paid bill payment
❖ Nepal Telecom PSTN and ADSL
bill payment
❖ Cheque book and ATM facility
❖ SWIFT service facility
(Source: [Link])
 23

CHAPTER 4
ANALYSIS OF ACTIVITIES DONE/PROBLEM SOLVED

4.1 Activities done / Problems Solved

The involvement as an intern in the CBIL, in Biratnagar branch, was very

fruitful from the aspect of gaining the practical exposure to the banking industry
as well as to the corporate world. Facing the various situations in the branch
helped me develop a new insight of the works performed in the banking
industry. The analysis of the activities performed in the various departments in
which I gotinvolved is given below:

4.2 Activities performed in Customer Service Department

(CSD)

CSD is the front desk of an organization. When any customer visits the
institution then the first impression of the institution is given by the customer
service department. As the name suggests this department is primarily
involved in providing services to the customers from answering the queries of
the customer to delivering the service of account opening and other auxiliary
services.

The image and the reputation of bank depend upon effective functioning of
this department. The competence and attitude of the sales staff, complaints
handling, customer dealings, and after sales service are all areas that affect
customers‟ perception of the company and also their loyalty to company.
It is the first place where the customers first get the service.

I was placed basically in the CSD. Here I performed some of the activities
under the supervision of my supervisor due the sensitivity of the issue and
other activities on my own. Following are the activities performed in the
department during the period of internship:
 Account opening
 Cheque printing
 24

 Account closing
 Handling telephone calls
 Scanning and photocopy
 Filing and record keeping
 Report preparation
 Relationship maintenance
 Dealing with the customer’s complaints
 Assist in various service delivery
 Miscellaneous activities

4.3 Activities in the Credit Department

 Writing the security documents such as Mortgage Deed, Loan Deed

and Promissory Noteunder the supervision of ARO (Assistant
Relationship Officer).
 Observing the activities in the Land Revenue Office while visiting
the office with the ARO.
 Scanning of the various documents in the Credit Department as
instructed by the Credit Officer of the branch.

4.4 Analysis of activities performed

The activities performed in the branch were all new for this intern. Having the
enthusiasmto learn about the activities performed in the bank and participate in
the activities performed a lot was learned and many experiences were gained.
The performing of these banking activities was never an easy task though the
learning of the activities and the performance was made easy due to the
effective teaching and training by the supervisor.
The analysis of the activities presented by this intern as given below is based
on the experience gained during the performance of the activities and the
observations made during the period of performance.

The analysis of the activities performed in the CSD is given as follows:

 25

The task of dealing with the various natured people is indeed a very difficult
task. There are various types of customers to be dealt in. some customers are
very well mannered and co-operate with the persons in the CSD. They are
easy to be dealt with. While some other are of irritating nature and it seems
that they are intentionally in mood to show such behavior. The employees in
the CSD need to be very patient in dealing with such variety of customers.
Same rule applied to the interns performing their job in the department.
Regarding the activities performed as an intern the tasks of CSD seemed to be
repetitive in nature. Though at the beginning these activities seemed
interesting things start to become boring as time passes by. Many small things
are to be kept in mind along with the confidentiality of information of the
customers. So, at the beginning interns get confused easily and get track of the
activities as they perform their task for some period of time.
Regarding the complaints of the customers it seems to say a thing
compulsorily. Some of the complaints made by customers occur due to the
fault of the system. For example, the complaint regarding the ATM machines
result due to the technical failure. Another example is the wrong calculation of
period of FD maturity for the interest to be provided to the customers.
So, in conclusion, it can be said that the activities in the CSD are simple yet
challenging and repetitive yet sensitive. These activities deserve proper
attention of the employees along with the satisfaction of demanding nature of
the customers.

The analysis of the activities in the Credit Department is given as follows:

These activities are more complex than the activities in the Customer Service
Department. The intern find less tasks to be performed in the department by
themselves as they need enough of the time to know the technical and legal
aspects of the tasks and its sensitivity.
This intern had the opportunity to observe the activities in the department and
participate in someof them.
The activities in this department demand the intern to have some basic
knowledge about the legal terminologies and concepts as well as some of the
rules and regulations. The legality, sensitivity and gravity of the activities as
 26

well as the security documents demand extra care from the side of the
concerned authority of the department.
 27

CHAPTER 5
CONCLUSION AND LESSONS LEARNT

5.1 Conclusion
This period of internship in Citizens Bank was a very fruitful experience.
From this internship, the knowledge about the working environment, the
banking activities was gained and on-the-job experience of bank was realized
which shall prove to be a great experience. Due to the interaction different
people, variety of skills gained and the involvement in the activities of
different departments of a commercial bank the experience gained would be
very helpful for future career development.
The study refers to the Customer service Departments (CSD) that
deals directly with the customer’s enquiries, handling complaints
and service distribution. CBIL is able to maintain strong
relationship with its customer through various customer oriented
products and services. A large part of this success is also attributed
to the maintenance of relationship with the customer and other
corporate houses and financial institutions. CSD has been major
source of attracting customers to the bank. The politeness of the
employee at CSD while handling the queries and complaints, the
way of receiving deposits by the tellers and the instant delivery if
service plays great role of importance in winning the heart of
customer and drive them to be loyal to the bank and their services.
On these 8 weeks of internship, an overview of the working
procedure of the banking system of Nepal was understood. Having
gone through the systems of the bank, operation of system to some
extent was understood. The theoretical knowledge gained about the
customer relation was actually implemented in the practical banking
settings. Internship has worked over the development of
communication and interpersonal skill of the intern. Interaction
with different level officers of the bank and informal discussions
succeeded in improving the knowledge about the banking scenario
 28

and different banking terms enhancing the decision making and

problem solving skill.

5.2 Lessons Learnt

The involvement of the intern in the activities of Customer service
Departments (CSD) provided a lot of knowledge about the banking system,
its working system and communication and inter-personal skills to deal with
customers, senior employees and co-workers. The study helped the Intern to
draw the outline about the working activity of Customer service Departments
(CSD) andother departments as well.
From the internship the intern gained the following lessons:

 For any organization customers are the crucial part that determines the success
or failure of the institution. Satisfied customers are the reason for any

successful organization.
 The working process of dealing with customers while providing service
and handling complaints and queries should be satisfactory enough to
retain the existing customers and attract new ones. Customers are ready to
be linked to the branch if they get satisfactory service.

 Time management skill and its importance were learnt. One has to deal
with numbers of customer at once, so everyone should be equally
treated.
 Role of communication and inter-personal skill while handling the
customer is very crucial in CSD to motivate the customers and
maintain healthy relationship with them.
 The employees in the CSD give first impression to the customers. So,
they should have a good level of self-confidence while dealing the
customer along with the skill to deal with them properly.
 Patience is the key to handle the customers. One has to be calm in any
kind of situations while dealing to the customer.
 Behavioral issues should be considered
 29

Co-operation is the symbol of bank being customer-friendly. So the person at the

CSD should be as much helpful as she can be to make positive impact of the bank.

Proper documentation is helpful for the smooth flow of work as well as a good and
efficient means of reference in case of to the past cases and activities.

 The intern learned to use the photocopy machine and scanner to copy
and scan the documentsas the process of documentation in the bank.
 The intern was also familiar to actual job stress.

5.3 Recommendations
The initial period of internship was spent in getting habituated to the
environment of the Customer Service Department.
On the basis of experience gained and observation made while working as
intern, following are therecommendations to the bank:

The ATM terminals placed in the various places has frequently created
problems to the customers while withdrawing their money. Customers‟
complaints are very often related to the ATM machines. This should be
considered seriously enough as it might negative impact on the goodwill of
the branch as well as of the [Link] the customers receive notice (through
SMS) about the transactions of withdrawal and deposit they do not receive the
account number on which the transaction was carried out. If a customer has
multiple accounts then s/he finds it difficult to identify the account from
which the transaction [Link] should give its customers the notification
regarding the changes in interest rates of deposits and loan rates to the
customers in their cell phones through the service similar to SMS banking. It is
found that many customers are surprised to find the interest rates changed as the
current means of information delivery seems less effective. The space in the
Cash department and CSD does not seem to be sufficient enough for the staffs
to perform their duties effectively and efficiently. As the branch has occupied
two flats the rearrangement of office layout must be [Link] branch
should consider the arrangement of parking space seriously as the customers
are facing the parking problem. Since the road extension is coming to the end
the arrangement of such parking space will be permanent.
 30

REFERENCE

Avinash Final Report(2015). Internship Report. Customer Service Department of

Citizens Bank International Limited, Biratnagar.

Bank: [Link]

C.B. (2021).Sixth Annual report (Fiscal year 2078/79) Biratnagar: Citizens Bank
International Limited.

Citizens Bank International Limited.(2023).Citizens Bank Internatioal Limited.

Retrieved from Citizens Bank International

Limited: [Link]

List of BFIS. (2023). Retrieved from Nepal Rastriya

Unaduited Financial Results (Quaterly) (2012, August8).Karobar National Daily

(2021, May 15). Retrieved from [Link]//[Link]/wiki/Bank.

 31

APPENDICES
Appendix 1

Management Team of CBIL

Name Designation/Department
Pradeep Sedai Regional Manager
Bhawani Chapagain CEO at Sirjana Finance
Bishal Dahal Branch Manager
Sadhnan Gupta Assistant Branch Manager
Prajwal Shrestha Marketing Head
Laxman Bhandari Loan Department
Pujan Badal Operation Incharge
Alisha Shrestha Marketing
Sarada Adhikari CSD
Puja Ghimire CSD
(Source: [Link])
 32

Appendix 2
Branches of CBIL

Serial no. Branches

1 Kamaladi
2 Biratnagar
3 New road
4 Kumaripati
5 Koteshwor
6 Bouddha
7 Birgunj
8 Pokhara
9 Nepalgunj
10 Narayanghat
11 Butwal
12 Dhangadhi
13 Birtamode
14 Kalanki
15 Thahiti
16 Nayabazar
17 Maitidevi
18 Beni
19 Ghorahi
20 Gaighat
21 Kirtipur
22 Narayn Gopal chowk
23 Mahendranagar
24 Kapan
25 Pathlaiya
26 Madhyapur Thimi
27 Humla
28 Charikot
29 Itahari
30 Bhaktapur
31 Janakpur
32 patandhoka
33 surkhet

Source: ([Link])