GENERAL ACTIVITIES OF NIC ASIA

BANK LIMITED
(Thamel Branch)

AN INTERNSHIP REPORT

Submitted By:
Prashish Jaiswal
Symbol Number: 23111/18
TU Registration. No. 7-2-444-36-2018

Submitted to:
Office of the Dean
Faculty of Management
Tribhuvan University
Kathmandu

In partial fulfillment of the requirements for the degree of

Bachelor In Business Administration (BBA)

At the
Modern Nepal College
Tribhuvan University

Sorakhutte, Kathmandu
July 2023

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 DECLARATION FROM STUDENT

I hereby declare that the internship report entitled, “General Activities of NIC Asia
Bank Limited.” submitted to the Faculty of Management, Tribhuvan University,
Kathmandu is an original piece of work under the supervision of Rajesh Kumar
Neupane, faculty member of Modern Nepal college, Sorakhutte, Kathmandu and is
submitted in partial fulfillment of the requirement for the degree of Bachelors in
Business Administration (BBA). This internship report has not been submitted to any
other university or institution for the award of any degree or diploma.

……………...
Prashish Jaiswal
July, 2023

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INTERNSHIP COMPLETION LETTER

iii
 CERTIFICATE OF SUPERVISOR
This is to certify that the internship report entitled “General Activities of NIC Asia
Bank Limited” is an academic work done by “Prashish Jaiswal” submitted in the
partial fulfillment of the requirements for the degree of Bachelor of Business
Administration at faculty of management, Tribhuvan University under my guidance
and supervision. To the best of my knowledge, the information presented by his in the
internship report has not been submitted earlier.

...................................
Mr. Rajesh Kumar Neupane
July, 2023

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v
 ACKNOWLEDGEMENTS

The report entitled “General Activities of NIC Asia Bank Limited” is prepared for
the partial fulfillment of the requirement for the degree of Bachelors of Business
Administration offered by Tribhuvan University, on the basis of the activities
performed and experience gained during the internship period. I would like to express
my deep and sincere gratitude to Tribhuvan University, for providing great opportunity
to enhance my educational knowledge and build up skills of practical, working
conditions.
Firstly, I would like to express my sincere gratitude to my supervisor, Rajesh Kumar
Neupane for the guidance, constant supervision and clarification. Secondly, I am
extremely thankful to my college chief and college management for providing support
and other necessary documents during the internship program and report preparation.
I would like to evince my sincere appreciation to branch manager. In addition, I would
like to thank my supervisor Pranisha Gurung for her proper guidance, suggestion and
encouragement for directing intern to the right track despite of her busy schedule and
would like to thank Sharmila Shrestha and Manita Khatri for their kind co-operation
and support during internship period despite their busy schedule.
Finally, I would like to give sincere thanks to my parents, my teachers, friends and
seniors for making this study esteemed by providing consistent encouragement support
and congenial atmosphere to complete it.

Prashish Jaiswal
BBA 8th Semester
July, 2023

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 TABLE OF CONTENTS

Title Page……………………………………………………………………………. …………i

Declaration from Student ...............................................................................................ii
Internship Completion Letter ....................................................................................... iii
Certificate of Supervisor……………………………………………………………………...iv
Recommendation ............................................................................................................ v
Acknowledgements ....................................................................................................... vii
Table of Contents ......................................................................................................... vii
List of Tables .................................................................................................................. x
List of Figures ............................................................................................................... xi
List of Abbreviations ................................................................................................... xii
CHAPTER ONE
INTRODUCTION
1.1.Background of Study ........................................................................................... 1
1.2.Issues of the Report.............................................................................................. 2
1.3.Objectives of Study .............................................................................................. 2
1.4.Methodology ........................................................................................................ 3
1.4.1.Source of Data ............................................................................................... 3
1.4.2.Organization Selection .................................................................................. 4
1.4.3Placement ....................................................................................................... 4
1.4.4.Duration ........................................................................................................ 4
1.4.5.Activities ....................................................................................................... 5
1.5.Limitation of the Study ........................................................................................ 6
1.6Structure of the Report .......................................................................................... 6
CHAPTER TWO
INTRODUCTION TO BANKING INDUSTRY
2.1.Meaning of Bank ................................................................................................. 8
2.2.Origin of Bank ..................................................................................................... 8
2.3.Types of Banks in Nepal .................................................................................... 10
2.4.Evolution of Banking Industry .......................................................................... 10
2.5.Functions of Commercial Banking .................................................................... 12
2.6.Objectives of Banking ....................................................................................... 13

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 2.7.SWOT Analysis of the Industry......................................................................... 14
CHAPTER THREE
INTRODUCTION TO NIC ASIA BANK
3.1.Background of Nic Asia Bank Limited ............................................................. 18
3.2.VMGO (Vision, Mission, Goals and Objectives) of NIC Asia Bank Ltd ......... 19
3.3.NIC Asia Bank Ltd. Branches and Networks .................................................... 20
3.4.Organization Structure ....................................................................................... 21
3.4.1.Management Committee of the Bank ......................................................... 21
3.4.2.Board of Directors of NIC Asia Bank Ltd. ................................................. 22
3.5.Number of Employees ....................................................................................... 23
3.6.Product and Services Provided by NIC Asia Bank Ltd ..................................... 23
3.7.Financial performance ....................................................................................... 28
3.7.1.Balance sheet .............................................................................................. 28
3.7.2.Statement of Profit or Loss FY 2078/79 ..................................................... 30
3.7.3.Financial Indicators FY 2078/79 ................................................................ 31
3.8.Work Flow Process and Its Linkage with Other Departments .......................... 31
3.9.SWOT Analysis ................................................................................................. 32
CHAPTER FOUR
ANALYSIS OF ACTIVITIES UNDERTAKEN AND PROBLEM
SOLVED
4.1.Department and their Major Function ............................................................... 36
4.2.Activities Performed in the Organization .......................................................... 36
4.2.1.Activities performed in Customer Service Department (CSD) .................. 37
4.2.2.Activities Performed in Marketing Department ......................................... 38
4.3.Distribution of the Work .................................................................................... 38
4.4.Problem Solved .................................................................................................. 39
4.5.Intern’s Key Observation ................................................................................... 40
CHAPTER FIVE
CONCLUSION, LESSON LEARNT AND SUGGESTIONS
5.1.Summary ............................................................................................................ 41
5.2.Conclusions ........................................................................................................ 41
5.3.Lesson Learnt ..................................................................................................... 42
5.4Suggestions ......................................................................................................... 44

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 5.4.1.Suggestions to NIC Asia Bank LTd ............................................................ 44
5.4.2.Suggestions to the College/Univesity ......................................................... 44
References……………………………………………………………………………46
Appendices…………………………………………………………………………..a-b

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 LIST OF TABLES

Table 1: Placement and Duration of Internship ............................................................. 5

Table 2: Financial Institutions in Nepal ....................................................................... 10
Table 3: Branches of NIC Asia Bank in different Province ........................................ 20
Table 4: Management Committee of the Bank ............................................................ 22
Table 5: List of Board of Directors .............................................................................. 23
Table 6: Number of Employees ................................................................................... 23
Table 7: Balance sheet of FY 2077/78 and FY 2078/79 .............................................. 28
Table 8: Statement of Profit or Loss FY 2078/79 ........................................................ 30
Table 9: Financial Indicators FY 2078/79 ................................................................... 31

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 LIST OF FIGURES

Figure 1: Organization structure of the branch ............................................................ 21

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 LIST OF ABBREVIATIONS

ATM : Automated Teller Machine

BBA : Bachelors of Business Administration
BOD : Board of Directors
BL :Bank Limited
CEO : Chief Executive Officer
CRN :Customer Reference Number
CSD : Customer Service Department
CSR : Corporate Social Responsibility
DEMAT : Dematerialization
FOM :Faculty of Management
HRD : Human Resource Department
KYC : Know Your Customers
Ltd. : Limited
NEPSE : Nepal Stock Exchange
NLIC : Nepal Life Insurance Company
NRB : Nepal Rastra Bank
POS : Point of Sale
SWIFT : Society for Worldwide International Financial Transaction
TU : Tribhuvan University

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 CHAPTER ONE
INTRODUCTION

1.1. Background of Study

Bachelors of business administration (BBA) is the course is a four years 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 practical
exposure is provided by conducting different researches during the different semester
under different subject. The charm of BBA is increasing because it is accepted
worldwide as it cover the international standard of four years. Moreover, Students
studying this course are evaluated on the basis of grading system and it has a facility of
semester system which includes eight semester. A single semester is completed within
six months.
Internship program is an essential and mandatory part for graduation program in the
discipline of Bachelors of Business Administration (BBA). Internship in the final
semester provides the platform to the students to apply their theoretical knowledge in
the practical life. It is a medium to provide student with real time working experience
so that they acquire knowledge in a particularly oriented manner. It actually helps to
develop professional work habits, providing an understanding of corporate culture and
environment. Internship assists in improving the interpersonal and communication
skills required to sustain in the competitive business environment. It provide a platform
for gaining managerial and public relationship skills and to excellent means for gaining
work experiences.
The student of BBA under Tribhuvan University has to undergo the eight week
internship program for the partial fulfilment of the requirement for the degree of
bachelors of business administration (BBA). The report is based on the internship on
NIC Asia bank, Thamel branch. Internee have completed internship program from NIC
Asia bank, Thamel branch as per the need of BBA course from April 2, 2023 to June1,
2023under the supervision of experience manager Sharmila Shrestha.

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1.2. Issues of the Report
The internee faced certain problems during internship days in NIC Asia Bank Limited.
The major problem in the bank for the internee in CSD and Marketing department was
the work know-how and workload problem. Being the internee in the bank ,internee
was expected to perform all the given activities at the prescribed hour. During the
internship, internee was assigned to work at CSD and marketing department where
internee needed to give various forms for account opening, new/renew Debit card,
dispute declaration, mobile banking etcetera and help the customers to fill those forms
if they didn’t understand any terms. Few problems that internee have faced during my
internship are as follows:
 During the peak hours (10:30 to 1:00) the flow of customers is too high so it is
difficult to handle customers.
 Time between 10:00 to 12:00 was very difficult for field visit to open bank
account because customer were busy in their own work.
 Difficult to open account of customer as they already have account in different
bank.
 While providing cardless banking services, customer some time directly deny
because they were in rush and some customer were unknown about the use of
mobile banking.
 The bank didn’t provide any identity card for internee, so it is very difficult to
assure that internee are working for the same bank. They didn’t trust internee
easily.
 During internship, internee need to attend both regular college studies and regular
banking work, the change in schedule of my regular activities it was difficult to
manage socializing activities as before.
 My supervisors sometimes forget that internee was new to the field.

1.3. Objectives of study

Each kind of study has its own objectives, without objectives, nothing could be
achieved. The main objective of the internship program is for the partial fulfilment of
bachelors of business administration (BBA) under Tribhuvan University. The objective
of this report is to understand the use of theoretical knowledge into practical
application. However, the specific objective of the internship are as follows.

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 To be familiar with real life working environment

To access interpersonal and communicative skills through interaction

To apply theoretical knowledge into practice

To examine the bank activities and function and to assess the strength and weakness

1.4. Methodology
This report is based on the internship. The data for the report is basically based from
primary and secondary sources.
1.4.1. Source of Data
a) Primary Sources
Primary data is the data collected for the first time. Primary data are the first hand data
which are not derived from any other sources. It is original in nature. Primary data was
collected from informal queries, direct observation, personal involvement and
interviews conducted with the concerned authority of the bank at the time of internship.
Methodology under primary data consist of:
 Observation of work 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.

b) Secondary Sources
Secondary data are the data that are already available. They are the second hand data
collected by someone else for different purpose. Secondary data are collected through
the following sources:
 NIC official website
 Annual financial report
 Newsletters
 Other published sources

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1.4.2. Organization Selection
Organization selection is the crucial part before conducting the internship program. The
internee need to select organization, which could help them to learn various aspects in
the working environment, build up the confidence and develop the interpersonal skills,
as being BBA student and having specialization in finance, it was crucial and difficult
task to select the sector in which intern can do internship. As intern was more interested
in doing internship in a financial institutions and to select the best institutions was too
tough job. The recommendation letter need to be drop in Banks and financial institution
and later on approval letter or message is sent by bank. So, internee selected NIC Asia
bank limited for doing internship as recommendation letter has been approved along
with it is on of the largest commercial bank in Nepal in private sector which follows
different business procedure and contains good organizational culture. Internee have
complete my internship from NIC Asia bank limited, Thamel branch. As per the
curriculum of the BBA eight semester, student had to undergo through the eight weeks
of internship.

1.4.3. Placement
The starting of the internship was with the familiarizing with the staffs and the
operational environment in the branch. The encouraging and cohesive environment
made the process of learning easier. The internee was kept in marketing as well
customer service and filing department for whole duration of the internship. In this
department internee got an opportunity to deal with the customer in real environment.
Internee learnt to customer interaction, open their account, check their balance, issuing
cheques and their banking transaction done through digital medium and other activities
related to its department. In addition, the others staffs were equally cooperative and
helped to learn the activities of the department.

1.4.4. Duration
The duration of the internship has been defined for the eight weeks or six credit hours
of working time at the organization by FOM, TU. Therefore in order to fulfill this
requirement internship was done for eight week period from 10 a.m. to 5:30 p.m. on
each working day except Friday. Regarding Friday the time of internship was 10 am
to 2:30pm. During the period of internship internee worked for some period in
marketing department and some period at CSD along with filling and the bank has

4
monitored the activities and performance. This internship program has been very
fruitful for the internee to get real life experience of the banking activities and was able
to develop his/her knowledge, build up his/her confidence level and develop
interpersonal and communication skills and it will definitely help in upcoming days.
Table 1: Placement and Duration of Internship

Name of department Time

Marketing department 10:00 AM to 3:00 PM
CSD and file management 3:00 PM to 5:30 PM

1.4.5. Activities
Various activities were performed during the internship program. The entire eight
weeks internship was done in marketing, CSD and file management. The major task
for marketing department was to cope with the customer that have face variety of
problem and queries. Internee was supposed to provide general banking information
like new opening account procedure, requirement, filing of various forms and give the
instruction how to used cardless transaction of money. Following activities are
performed under this department:
 Opening new account
 Opening DEMAT account form
 Opening and continuing FD account
 Photocopy and scanning the document
 Dealing with customer and assisting them for the problem they come up with
 I-serve and cheque clearance
 Providing forms to customer as per their needs and problems
 Issuing of cheque and debit card to customers
 Activates mobile banking services
 Ensuring and assisting the use of cardless banking service
 Assisting customer to use mobile banking services along with unblock mobile
banking.
 Filing the forms and document as per the bank’s filing system

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1.5. Limitation of the Study
Each and every study has curtained limitation. This report has been prepared on the
basis of observation, experiences of the internee, informal interview with the staff and
the secondary data available in the internet. It is conformed only in the few department
under limited time. The following are the limitations of the study:
 This study is mainly concentrated on activities done during internship period.
 Due to limited time, the study has been conducted quickly.
 Less interaction and guidance by the staffs to the intern due to their own rush.
 Because of rush, internee were confined to routine job of the bank and was not
able to acquire crucial information of the bank.
 This report is based on my individual experience, ideas and skills achieved during
the internship period rather than theoretical knowledge.
 This report cannot be generalized to entire banking industry since data is only
related to NIC Asia bank, Thamel branch.

1.6. Structure of the Report

The report consists of three major parts. They are:
Preliminary Part:
 Title Page
 Declaration from Student
 Internship Completion Letter
 Recommendation
 Acknowledgements
 Table of Contents
 List of Tables
 List of Figures
 List of Abbreviations
 Executive Summary
Body of Report:
Internship report consists five chapters:
 Chapter I Introduction
 Chapter II Introduction of the Industry
 Chapter III Brief Introduction of the Organization

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  Chapter IV Analysis of Activities Undertaken and Problem Solved
 Chapter V Conclusion, Lessons Learnt and Suggestions
Supplementary:
 References
 Appendices

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 CHAPTER TWO
INTRODUCTION TO BANKING INDUSTRY

2.1. Meaning of Bank

Bank can be defined as the financial intermediary between depositors and
entrepreneurs. The intermediation takes place when banks accept deposits from the
general public, corporate bodies, and private organizations and deploys those deposits
for profitable purpose in the form of loans and advances. Bank is financial service
institution, therefore in between this intermediation, the bank gets some earning.
According to Horrac White, “Bank is a manufacture of credit and machine so
facilitating exchange” ( www.nrb.org.np).
According to shorter oxford English dictionary, “A bank is an establishment for the
custody of money, received from or on behalf of each customer. Essential duty is to pay
their draft on each profit area from its use of the money left unemployed by them.”
By this definition, the bank can easily be defined as the custodian of deposits. The
transactions in the financial market heavily depend upon the banking system of the
country. Without the bank, it would be quite impossible for the industrialist and
entrepreneurs to go directly to the general public for getting their savings or
investments. So the simplest definition is that bank takes the saving of public by
providing them with certain rates of interest and loan it to needy customers charging
them the certain rate of interest and earns some profit. This is the broadest form of
banking but in this age banking is such big term. It does a lot more than deposits and
credits, remitting of money, letter of credit etcetera (Paudel et al., 141-142).

2.2. Origin of Bank

The word bank has been derived from Italian word banco. In the ancient time in the
French language it is called the bank, in The English language it is called the bank. In
Italian word, banco means bench. The evolution of banking industry had started a long
time back in ancient times. There was the reference to the activity of money changers
in the temple of Jerusalem in the New Testament. In ancient Greece, the famous temples
Delphi and Olympia served as great depositories for people surplus funds and these
were the centers of money lending transactions. Indeed, the traces of rudimentary

8
banking were found in the Chaldean, Egyptian and Phoenician history. The
development of banking in the ancient Rome roughly followed the Greek pattern.
Banking suffered oblivion after the fall of the roman empire after the death of emperor
Justinian in 565 AD and it was not until the revival of trade and commerce in the middle
ages that the lesson of finance was learnt a new from the beginning. Money lending in
the middle ages was however largely confined to the Jews since the Christians were
forbidden by the cannon law to indulge in the sinful act of lending money to others on
interest. However as the hold of church loosened with the development of trade and
commerce about the 13th century Christian also took to the lucrative business of money
lending thereby entering into keen competition with the Jews hither monopolized the
business (Paudel et al., 142-143).

As a public enterprise banking made its forced beginning around the middle of the 12th
century in Italy and the Bank of Venice founded in 1157 was the first public banking
institution. Following it were the bank of Barcelona and the Bank of Genoa in 1401 and
1407 respectively. The latter two continued to operate until the 18th 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

9
2.3 Types of Banks in Nepal
The banking system along with the number of financial institutions is rapidly
increasing. The list of the financial institutions in Nepal with the latest information of
Nepal Rastra Bank on Md-January, 2023 as of:

Table 2: Financial Institutions in Nepal

S.No. List of Bank and Financial institutions Total No.
1 Commercial Bank 20
2 Development Bank 17
3 finance Companies 17
4 Micro finance financial institutions 63
5 infrastructure Development Bank 1

6 Total 119
(Source: www.nrb.org.np)

2.4 Evolution of Banking Industry

The history of banking in Nepal dates bank to the year 1937 AD with the establishment
of Nepal Bank Limited as the first Commercial bank in Nepal. It was established as a
semi-government bank with METALLIC COINS worth Rs 10 million as the authorized
capital. Banknotes in Nepal weren’t introduced up until the mid-1940s. It was in the
year 1945 that the earliest banknotes were issued by the treasury “Sadar Muluki
Khana”. These notes were signed by a “Khajanchi”, the head of the treasury who also
was a high Hindu Priest (Gautam et al., 2008:97-98).
Later in the year 1955, the Nepal Rastra Bank Act was formulated for a better banking
system and Nepal Rastra Bank was established in 1956 as the Central Bank of Nepal
accordingly. After this date, the banknotes were issued by the Central Bank with the
signatures of the governors of the institution. Till the 1980s, the banking sector was
wholly owned by the government, with Agriculture Development Bank, Rastriya
Banijya Bank, NBL, and NRB being the pillars of a financial institution in Nepal. 1984
saw the start of the private banking industry with the establishment of Nabil Bank and
the introduction of foreign banks such as the Nepal Arab Bank, Nepal Indosuez Bank,
and Nepal Grindlays. The banking sector in Nepal has faced many hurdles and

10
hindrances. It has undergone various political conflicts and instability. But today, it
stands more liberalized and modernized. There are various types of banks working in
the modern banking system in Nepal. As per the list issued by NRB as of Mid-Jan 2023,
the modern banking sector includes 26 Commercial Banks, 17 Development Banks, 17
Finance Companies, and 65 Micro Credit Development Banks
(www.sharesansar.com).
Cash Machines
The growth in the banking sector has drastically changed the paying habits of people.
It wasn’t long ago when people only dealt with hard cash. Queuing in banks to withdraw
the smallest amount of money also wasn’t unusual. But today, more and more Nepali
people find it convenient to carry plastic money in their wallets instead of hard cash. If
we look back into the banking history of Nepal, the first credit card in Nepal was
introduced by Nabil Bank in 1990, and the first ATM was introduced by the Himalayan
Bank in 1995. However, it couldn’t take a swift leap into people’s behavior. Although
ATM was introduced, it wasn’t in an adequate amount at the time. But now, there are
more than 9 ATMs per one thousand adults in Nepal, belonging to different banks in
various regions of the country. Furthermore, vendors have started using electronic
funds transfer at point of sale (POS) machine, enabling customers to electronically
transfer funds. And Nepali people definitely have developed a culture of using cash
machines without a moment’s thought (Paudel et al., 142-143).
Mobile and Internet Banking in Nepal
The history of banking in Nepal has taken a swift jump with the implementation of
mobile banking and internet banking. The technological evolution has further enabled
people to better utilize banking services. In the case of Nepal, Kumari Bank was the
initiator of internet banking. It started its e-banking services in 2002. And soon was
accompanied by Laxmi Bank with its mobile (SMS) banking in 2004. The easy
accessibility of the internet has greatly fostered e-banking. Hard cash was replaced by
bank-issued cheques. But in recent history, credit/debit cards, e-banking, and mobile
banking have come to the emergence and slowly has been replacing the hassle of
carrying cash and cheque at all. Picturing the development of mobile banking, internet
banking, and digital payments in Nepal, NRB has issued a revised directive on payment
systems in 2019 (Paudel et al., 142-143).

11
2.5. Functions of Commercial Banking
The major functions of the banks can be listed as below: (Mittal, 2003).
1. Primary functions of commercial banks
The primary functions of the banks are as follows:
a. Accepting Deposits:
Commercial banks accept various types of deposits from the public especially from its
clients. It includes saving account deposits, recurring account deposits, fixed deposits,
etc. These deposits are payable after a certain time period.

b. Making Advances:
The commercial banks provide loans and advance of various forms. It includes an
overdraft facility, cash credit, bill discounting, etc. they also give demand and term
loans to all types of clients against proper security.

c. Credit Creation:
It is the most significant function of the commercial banks. While sanctioning a loan to
a customer, a bank does not provide cash to the borrower, instead it opens a deposit
account from where the borrower can withdraw. In other words, while sanctioning a
loan a bank automatically creates deposits.

2. Secondary Functions of Commercial Banks

The secondary functions of the banks are as follows:

a. Agency Function
• To collect and clear cheque, dividends and interest warrant.
• To make payments of rent, insurance premium etc.
• To deal in foreign exchange transactions
• To purchase and sell securities.
• To act as trusty, attorney, correspondent and executor.
• To accept tax proceeds and tax returns.
b. General Utility Function
• To provide a safety locker facility to its customers.
• To provide money transfer facility.
• To issue traveler’s cheque.
• To accept various bills of payment e.g. phone bill, etc. (Mittal, 2003).

12
2.6. Objectives of Banking
Banking is a business activity which involves accepting money from public in the form
of deposits and lending it as loans for earning profit. Banking institutions mainly serves
the purpose of safeguarding people’s money or fulfilling their fund requirements by
providing them loan facilities (Gitman and L.J, 2001: 100).
So, the major objectives of the banking industry are:

a) To safeguard the deposits:

Bank serves the main purpose of accepting deposits from public and safeguarding it. It
guarantees the safety of funds to customers for depositing their money in their accounts.

b) To provide loans:
It advances loan to customers at both short-term and long-term basis as per their needs.
Bank provides loans out of the deposit that they receive and charges interest on the
amount from customers.

c) To encourage savings:
Banking institutions have an efficient role in encouraging saving habits among people.
It motivates people for saving and depositing their earnings in bank accounts by paying
them a fixed rate of interest on their deposited amount regularly.

d) To help in capital formation:

Banking accelerates the capital formation rate within the country. It extends credit to
various sectors of the economy from time to time which helps in uninterrupted
continuation of all growth and development activities. Different industries and
businesses approach banks for fulfilling their financial needs.

e) To enhance the living standards of people:

It assists the people in improving their quality of life by providing them credit. Bank
enables customers in purchasing high quality and costly goods on credit basis or hire
purchase system (Gitman and L.J, 2001: 100).

13
2.7. SWOT Analysis of the Industry
The banking industry is one of the oldest industries still around today. It’s come a long
way from the old bartering and exchange system. Financial institution or a bank takes
deposits from the general public and makes loans while creating a demand for
the deposit at the same time. Either the bank or the capital market performs the
activities of lending loans and capita (Mittal, 2003).
The banking industry plays a significant role in the financial growth and stability of any
country or economy. That’s why governments regularize financial institutions and lay
down a legal infrastructure for banks. In fact, it’s mandatory for banks in many
countries to maintain as much current liquid assets equal to their current liabilities. And
it still has a long way to go. Even though most banks now offer online services so you
can use do most of what you need from home, this industry is still lagging behind. It’s
not meeting consumer demands or using updated IT infrastructure.
There are many positives associated with the banking industry though, as this SWOT
analysis of the banking industry will explain. Here internee discusses the strengths,
weaknesses, opportunities, and threats related to the banking industry (Mittal, 2003).

Strengths of Banking Industry

 Online Banking: Digital or internet banking is the latest and most modern form
of banking in the financial industry. It allows people to avail themselves of various
services like transferring funds, paying bills, depositing money, or applying for a
credit card without even visiting the bank. If you want something more, only then
do you have to visit the bank. The pandemic of covid-19, social distancing, and
worldwide lockdown have amplified the usage of digital banking. People used to
consider internet banking as something an additional feature of the bank.
 Financial Support: Whenever there’s an economic, financial, or climate crisis,
either the government or the people are in desperate need have help. It’s the
banking industry that provides those insurances, loans, investment, or capital
support so that they could get back on their feet again.
 Economic Growth: The banking industry and the country’s economic growth go
side by side. It helps the country in many ways like processing transactions,
fostering trade, creating employment opportunities, decreasing poverty, and
stabilizing the financial institution.

14
  Oldest Industry: The banking industry is one of the world’s oldest industries.
However, it may have gone through various names like the exchange or barter
system, and then it has evolved over time to take the most modern of banking that
we see today. It provides people with savings, investments, bonds, or loan options
so that they could achieve their goals.

Weaknesses of Banking Industry

The weaknesses of the banking industry include the following:
 No Global Coordination: As we know that there’s a close link between the
banking industry and the country’s economy, and they work in collaboration. But
we don’t see the same coordination at the global level. For instance, Europe has
approximately 50% of the world’s total market share. In case of an economic
recession just like the pandemic of covid-19, many regional governments in
different parts of the world are facing difficulties.
 Old technology leads to vulnerabilities: Many banks still use outdated IT
infrastructure to host online services. For instance, some banking websites don’t
use case sensitive passwords or allow customers to put special characters in
passwords. This makes passwords extremely weak and easy for hackers to brute-
force into your accounts. Considering it holds your life savings, most customers
expect their banks to follow updated policies, regulations, and infrastructure to
keep their information protected. And yet, it’s taking the banking industry too
long to keep up with technological advancements. Because of that, many banks
suffer from digital vulnerabilities and potential security bugs.
 No access to rural areas: Rural regions don’t have access to banking services.
Part of this is because of conflicts between government objectives and banking
objectives. Another reason for the lack of access is because providing services to
rural areas can be more trouble than it’s worth financially.

Opportunities of Banking Industry

The banking industries have many opportunities within the industry and for consumers:
 Offering More Services: The banking industry should keep in mind the currently
growing trends and development of the customer market. Now, the customers
market want more, and a simple mobile application isn’t sufficient for them. Most

15
 importantly, banks should remember that the needs and demands of customers’
markets vary from geography to geography and customer to customer. The needs
of a student, businessman and a family person are different. Banks would lose
customers if they overlook their demands. Some competitive bank would take
their place by offering more features.
 Market Expansion: As we know that banks only offer services in the urban
populated areas. It presents a great opportunity for banks to offer small-scale
services in the villages to capture the rural customers’ market.

Threats of Banking Industry

Just like any other industry, the banking industry also has its fair share of threats
 Security Issues: The security breach and cyber-attack have become very
common in the financial industry and many people have become the victim of
hackings. For instance, many people usually connect online invoicing company
account with their local bank accounts. If there’s a security breach in the server
of the online company, then it would compromise the privacy information of
users’ local bank accounts.
 Economic Recession: The pandemic of covid-19 has made millions of people
unemployed worldwide. Now, many people are using their savings to meet their
expenses. It has put the deposit of the banking industry in great jeopardy. It would
ultimately impact the profitability of the company.
 Data breaches: With banks offering more online options, it also increases the
risk for data breaches. People give other websites like invoicing companies’
access to their bank to receive and transfer money. If these companies have a
breach, it gives hackers access to personal bank accounts. Although there is
nothing banks can do for breaches on other websites they can make sure their own
is heavily protected against hackers.
 Competitors: The banking industry has become very competitive in recent years.
Many new banks are niche-focused and offering services in one category like
agriculture band, commercial bank, saving bank, insurance bank, etc. They pose
a severe threat to traditional banks because they specialize only in one category.
However, many young people prefer those banks that offer them more tech
features, better internet or digital banking, convenience, and a more secure and

16
speedy system. Therefore, the banking industry should follow the growing trends
(Mittal, 2003).

17
 CHAPTER THREE
INTRODUCTION TO NIC ASIA BANK

3.1. Background of Nic Asia Bank Limited

Background of NIC Asia Bank Limited NIC Asia Bank was established after merger of
NIC Bank and Bank of Asia Nepal on 2013. Despite the cut-throat competition in the
Nepalese banking sector, NIC Asia Bank has been able to maintain a lead in the banking
activities. It goes with the slogan “Bank Pani Sathi Pani”.
NIC ASIA Bank has been established through NIC Bank which was established on
21st July 1998. The Bank was rechristened as NIC ASIA Bank after the merger of NIC
Bank with Bank of Asia Nepal on 30th June 2013. This was a historic merger in the
annals of Nepalese financial landscape as the first of its kind merger between two
successful commercial banks in the country. Today, NIC ASIA has established itself as
one of the most successful commercial banks of Nepal. It has its branches in most parts
of the county.
During the post-merger integration phase, NIC ASIA managed the transition very
smoothly receiving accolades from the regulators as well as the stakeholders, paving
the way for other mergers and consolidation in the Nepalese financial sector. After the
merger, NIC ASIA was recognized as” Bank of the Year 2013-Nepal” by The Banker,
Financial Times, UK. This is the second time that the Bank was recognized with this
prestigious award, the previous occasion being in 2007.
NIC ASIA Bank is now, one of the largest private sector commercial banks in the
country in terms of capital base, balance-sheet size, number of branches, ATM network
and customer base. The Bank has 120 branches and 4 extensions and 78 ATMs across
Nepal with a network covering all major financial centers of the country. The Bank
strongly believes in Meritocracy, Transparency, Professionalism, Team spirit and
Service Excellence. These core values are internalized by all functions within the Bank
and are reflected in all actions the Bank takes during the course of its business. The
bank has currently completed its 24 years of service on 21st May 2021. Living up to
the expectations and aspirations of the customers and other stakeholders of being
innovative, NIC Asia Bank has introduced several products and services such as mobile
banking, internet banking, ATM cards, credit cards, International Travel visa card,

18
payment of school fees and college fees etc. NIC Asia Bank has many correspondent
arrangements with major international banks all over the world that facilitate trade
finance, bank-originated personal funds transfers and interbank funds transfer via
SWIFT. In a bid to promote remittance business, NIC Asia Bank works with CG money
remit, Prabhu Money Transfer, Express Money Services Limited, Instant Cash Global
Money Transfer, Ez Remit and International Money Express.
As a responsible corporate citizen of the country, the Bank has been involved in
contributing to the society in various ways as a part of its Corporate Social
Responsibility (CSR). In order to promote and focus on CSR activities the Bank has
established a charitable foundation called NIC Asia Foundation. The Bank has
committed to pledge 0.5% of its net profit every year to the NIC Asia Foundation for
promoting various CSR related activities.
In the past, the NIC Asia Foundation has carried out various activities including, but
not limited to, distributing disaster relief packages to the victims of various disasters,
contributing to the Prime Minister Relief Fund, organizing health camps, organizing
blood donation camps, providing support to old age homes and orphanages, providing
scholarships to the needy students, etc.

3.2. VMGO (Vision, Mission, Goals and Objectives) of NIC Asia

Bank Ltd
The vision, mission and objectives of NIC Asia Bank Ltd. are as follows:
Vision
 To ensure the creation of optimum values for all the stakeholders.
Mission/Goals
 To become a leading bank in Nepal by providing complete financial solutions
to our customers, superior value to our shareholders and promising growth
opportunities to our employees.
 To be a Bank of 1st choice for all the stakeholders.
Objectives
 Focus on providing innovative financial services.
 Sustainable increase in profits.
 Become the first choice of customers

19
3.3. NIC Asia Bank Ltd. Branches and Networks
NIC Asia Bank is now, one of the largest private sector commercial bank in the country
in terms of capital base, balance-sheet size, number of branches, ATM network and
customer base. The Bank has 360 branches, 108 extensions counters, 81 branchless
banking service and more than 473 ATMs across Nepal. The number of branches in
different region is illustrated in the table below:

Table 3: Branches of NIC Asia Bank in different Province

S.No Province No. of Branches
1 Province 1 61
2 Province 2 52
3 Province 3 119
4 Province 4 32
5 Province 5 65
6 Province 6 10
7 Province 7 21
(Source: www.nicasiabank.com)

20
3.4. Organization Structure
The organization structure of NIC Asia Bank Ltd. Thamel Branch is as follows:

Branch Manager

Credit Department Operation Department

Head Credit in Charge Operation in Charge

Guarantees issuance CSD

T.T (Telegraphic Clearing
Transfer) Cash Counters
preparation Remittance
Letter of credit Foreign money
Loan Exchange

Figure 1: Organization Structure of the Branch

3.4.1. Management Committee of the Bank

The Bank is run by professionals having sound experience and exposure in commercial
banking in Nepal as well as in international markets. The “Management Committee” of
the Bank comprises of the following senior staff members:

21
Table 4: Management Committee of the Bank

Name Title
Mr. Roshan Kumar Neupane CEO
Mr Jayandra Rawal Assistant Chief Executive Officer
Mr. Sudhir Pandey Assistant Chief Executive Officer
Mr. Bishal Sigdel Chief Strategy and Business Process Re-
engineering
Mr. Rajesh Rawal Chief Centralized Support Department

Mr. Prakash Baral Chief Corporate Loans & Project Financing

Mr. Rupesh Luitel Chief Financial Officier

Mr. Deepen Karki Head Legal & Corporate Affairs/Company

Secretary
Mr. Arjun Khaniya Head Deposit and Transaction Banking

Mr. Dipak Dhakal Head Internal Audit

Mr. Laxman Chalise Head Retail Loans

Mr. Dipendra Bahadur Head Credit Approval

Rajbhandari
Mr. Prakash Chandra Head SME
Adhikari
(Source: Annual report of NIC Asia Bank 2020/2021)

3.4.2. Board of Directors of NIC Asia Bank Ltd.

NIC Asia Bank is managed by a team of professional Board of Directors (BOD). The
Board of Directors consists of brilliant personalities assigned with various designations.
The name list of BOD’s along with their designation are:

22
Table 5: List of Board of Directors
S. No. Name Title
1. Mr. Tulsi Ram Agrawal Chairman
2. Mr. Trilok Chand Agrawal Director
3. Mr. Nikunj Agrawal Director
4. Mr. Ramchandra Sanghai Director
5. Mr. Ganesh Man Director
6. Mr. Binod Kumar Pyakurel Director
(Source: www.nicasiabank.com)

3.5. Number of Employees

The total number of employees in NIC of employees in NIC Asia is around 3000+ in
all the branches of Nepal. The total number of employees in Thamel Branch is as
follow:
Table 6: Number of Employees
Position of Employees Number
Branch Manager 1
Experience Manager 1
Loan Officer 4
Teller 2
CSD 1
Marketing 1
Security Guard 1
Cook 1
(Source: www.nicasiabank.com)

3.6. Product and Services Provided by NIC Asia Bank Ltd

NIC Asia Bank Ltd. offers a wide variety of products and services, catering to wide
range of customers from individuals, to mid-market local corporate to multinationals
and large public-sector companies, as well as embassies, aid agencies, airlines, hotels
and government corporations.
NIC Asia Bank’s policy is to extend quality services to its customer as properly as
possible. Personalized services are provided to all clients. To extend more efficient
services to its customer, NIC Asia Bank Ltd. has adopted innovated and latest banking
technology. NIC Asia Bank tailors the facilities extended to its clients, taking into

23
account their need and requirement, besides the normal services, NIC Asia Bank Ltd
has been providing the following services to their customers:

3.6.1. Deposit
Deposit is the money kept by the customers in the bank with some interest to be received
in near future. NIC Asia Bank Ltd offers a wide array of deposits schemes in both local
and foreign currencies to help the customer earn competitive interest rates in order to
maximize returns on investment. Some of the deposits schemes are as follows:
 Current account
 Fixed Deposit account
 Saving account: There are many types of saving account at NIC Asia Bank. All
saving accounts can be opened by filling account opening form and the
documents required are 2 passport size photos and certificate of citizenship. The
types of saving account are:
 Happy Saving
 Sarbashrestha Sunya Mudjat Btchat Khata
 Sammunati Bachat Khata
 Little Star
 Swabhalambi Nari
 Samajik Surakshya
 Share Subida Bachat Khata (SSBK)
 Payroll Account
 Special Saving account
 Nari Shakti
 Remit Account
 Krishak account
 Sulav Khata
 Samrakhchakh Khata
 Senior Privilege account

3.6.2. Loans and Advances

NIC Asia Bank Ltd. also provides credit on competitive terms by way of term loans as
well for financing working capital needs of all kinds of productive and income

24
generating activities. Regarding Consumer Lending Schemes, it has following major
schemes:
 Direct Housing Loan
 Auto Loan
 Education Loan
 Professional Loan Scheme
 Loan Against Mortgage
 Loan Against Share
 Home Equity Loan
 Gold Loan

3.6.3. Trade Finance Facilities

To assist its trading customers, NIC Asia Bank Ltd. offers Letter of Credit(LC) and
bank guarantee facilities. Customers can place their LC application or bank guarantee
application in any branch of NIC Asia Bank. The fees/charges are reasonable amongst
the commercial banks of Nepal. The customers enjoy wide correspondent network of
NIC Asia Bank in addition to attractive rates.

3.6.4. Remittance
The bank also provides remittance service and facilities of transferring fund through
online computer system. This special feature helps the tourists and especially the
Nepalese workers abroad to transfer funds to Nepal as and when required. The receiver
can get the transferred amount upon the completion of a simple form requirement
without any hassles and within no time. Remittance service is provided through draft,
swift and telegraphic transfer, mail transfer, fax transfer etc. The product is monitored
and serviced by Remittance Department of NIC Asia Bank dedicated to deliver fast and
reliable services to the customers.

3.6.5. Card Services

NIC Asia Bank Ltd. provides various card facilities to the customers who can withdraw
cash as well as purchase goods and services from several merchants. Customers use
these cards at any ATM terminal of NIC Asia Bank Ltd. networks as well as any Point

25
of Sale (POS) machines. The bank provides ATM card services, credit card services,
international card services to its customers.
ATM service is open to customers 24 hours a day, 7 days a week and 365 days a year.
The cards are prepared in the card center which is located at Tripureshwor. International
cards are also provided to customers going abroad. They need to show various
documents like valid ticket, passport, visa etc. The ATM facility is free for customers
in the 1st year and rs.550 renewal charge is required per year from 2nd year of service.

3.6.6. Mobile Banking

NIC Asia Bank provides mobile banking that gives convenient mechanism and quick
access to banking services for the customers of NIC Asia Bank from their mobile
devices. The system is a SMS based which can be used by both Nepal Telecom as well
Ncell telecommunication subscribers. The mobile banking customer can keep an eye
on their financial transactions as well as carry out secure financial transaction from
anywhere, anytime. This has made it easier for people as they don’t need to visit bank
for small purposes.
The main features of the Mobile Banking services are Balance Enquiries, Last
Transactions details, Transactions alerts, e-recharges/bill payments/top up to utilities
like NTC prepaid/postpaid/landline/ADSL, NCELL prepaid/postpaid, inter branch
funds transfer, etc. The mobile banking facility is free for customers in the 1st year and
Rs.300 renewal charge is required per year from 2nd year of service.

3.6.7. Internet Banking

NIC Asia Bank also provides internet banking service also known as iTouch Banking.
By using iTouch Banking customers can make inquiry for the balance, can get mini
statements, can transfer fund between account by using the electronic means and mobile
by the password displayed by the device. The customers can also use their DEMAT
account through internet banking. They can get DEMAT statements through internet
banking. Customers can make payment of electricity, phone, home internet etc. through
eSewa with the use of internet banking. The internet banking facility is free for
customers in the 1st year and rs.250 renewal charge is required per year from 2nd year
of service.

26
3.6.8. DEMAT Account
Demat stands for Dematerialization which is a process of converting physical shares
(securities) into electronic form. An investor or a person having shares of various
companies listed in Nepal Stock Exchange (NEPSE), are required to dematerialize their
physical shares by opening a Demat account. Customers has the facility of DEMAT
account in NIC Asia Bank Ltd. To open DEMAT account the customers need to have
a saving account. The DEMAT account id free for 1st year and rs.150 per year renewal
charge required after 1st year. The customers need a Demat account to purchase shares.
The shares get deposited I the Demat account of customers.

3.6.9. Safe Locker Facility

Looking at the various needs and wants of the customers, NIC Asia Bank offers locker
facilities of various sizes as per the customers preference and convenience of location.
Customers availing of this facility enjoy not only peace of mind in terms of security of
their valuable belongings but also one of the most attractive rates and ease of location.

3.6.10. Foreign Exchange Facilities

The bank provides facilities for financing the export and import business, exchange
(sale and purchase) of foreign currencies, forward exchange contracts, etc. For
exchanging foreign currencies customers need to have a valid passport, air ticket and
visa card and other needed documents.

3.6.11. Interbranch Activities

The customers can get statements, ATM cards, mobile banking, internet banking,
cheque books from any branches they feel convenient. It depends on the customer from
which branch they want to do banking activities. The customers can request the bank
staffs to send of deliver their ATM cards to the branch where they feel near and
convenient.

3.6.12. Bank assurance

NIC Asia Bank Ltd. provides insurance facility to its customers. The insurance facility
is life insurance and non-life insurance. It is associated with MetLife and NLIC (Nepal
Life Insurance Company). NIC ASIA Bank Bank assurance and give customers an

27
opportunity to take care of uncertainties risk associated and also financial needs, which
is the most important in life. The bank provides insurance facility in attractive rates.

3.7. Financial performance

Financial performance is a subjective measure of how well a firm can use assets from
its primary mode of business and generate revenues. The term is also used as a general
measure of a firm's overall financial health over a given period. The bank’s financial
performance can be shown in the tables below.
3.7.1. Balance sheet

Table 7: Balance sheet of FY 2077/78 and FY 2078/79

Particulars FY 2078/79
Assets
Cash and Cash Equivalent 35,798,494,367
Due from Nepal Rastra Bank 17,854,280,963
Placement with Bank and Financial Institutions -
Derivative Financial Instruments 4,412,984,320
Other Trading Assets 9,500,000
Loan and Advances to BFls 12,162,798,541
Loans and Advances to Customers 264,337,120,518
Investment Securities 29,399,961,148
Current tax Sets -
Investment in subsidiaries 1,264,500,000
Investment in Associates -
Investment Property 1,243,229,172
Property and Equipment 3,009,129,302
Goodwill and Intangible Assets 83,889,401
Deferred Tax Assets -
Other Assets 4,949,404,721
Total Assets 374,525,292,453
Liabilities
Due to Bank and Financial institutions 34,364,751,208
Due to Nepal Rastra Bank 19,476,075,205

28
Derivative Financial Instruments 4,442,760,000
Deposits from Customers 278,281,334,865
Borrowing -
Current Tax Liabilities 207,054,736
Provisions -
Deferred Tax Liabilities 406,733,240
Other Liabilities 4,599,909,573
Debt Securities Issued 10,786,568,152
Subordinated Liabilities -
Total Liabilities 352,565,186,979
Equity
Share Capital 11,564,005,366
Share Premium -
Retained Earnings 2,148,029,220
Reserves 8,248,070,888
Total Equity Attributable to Equity Holders 21,960,105,474
Non-Controlling Interest -
Total Equity 21,960,105,474
Total Liabilities and Equity 374,525,292,453

29
3.7.2. Statement of Profit or Loss FY 2078/79

Table 8: Statement of Profit or Loss FY 2078/79

Particulars FY 2078/79
Interest income 7,302,001,467
Interest expense 4,519,510,086
Net interest income 2,782,491,381
Fee and commission income 557,701,224
Fee and commission expense 97,261,819
Net fee and commission income 460,439,405
Net interest, fee and commission income 3,242,930,786
Net trading income 72,304,448
Other operating income 201,102,144
Total operating income 3,516,337,378
Impairment charge/ (reversal) for loans and other losses 397,013,510
Net operating income 3,119,323,868
Operating expense
Personnel expenses 959,235,392
Other operating expenses 383,439,070
Depreciation & Amortization 100,915,303
Operating Profit 1,675,734,102
Non-operating income 10,968,272
Non-operating expense -
Profit before income tax 1,686,702,374
Income tax expense
Current Tax 506,010,712
Deferred Tax -
Profit/(loss) for the period 1,180,691,662

30
3.7.3. Financial Indicators FY 2078/79

Table 9: Financial Indicators FY 2078/79

Particulars FY 2077/78
Ratios as per NRB Directive
Capital fund to RWA 12.23%
Non-performing loan (NPL) to total loan 0.49%
Total loan loss provision to Total NPL 341.8%
Cost of Funds 5.75%
Credit to Deposit (CD) Ratio 85.32%
Base Rate 7.48%
Interest Rate Spread
4.08%
Quality service
3.8. Work Flow Process and Its Linkage with Other Departments
The work flow was basically from the top level to lower level. The commands and
directions were given from the Manger to other level employees in the organization.
First of all, the customers would come up to the CSD to fulfill their queries and issues.
The CSD would solve the problem under its authority. If the problem wouldn't be solved
in the CSD, the supervisor would go to the manager or assistant manager and try to
solve the problem. Similarly, the manager would call the supervisor to get things done
or inquire about the information regarding the work under her guidance. The CSD is
the center of the bank and it is linked with almost all other parts of the bank. The linkage
can be shown as below:

1.CSD and Cheque Department:

The customers first go to CSD to open their account. After opening the account with
all the necessary information, the signature card would be uploaded in the system. Then
the customer would go to the cheque department to get their cheque books issued. The
CSD was responsible to open the account and generate account number which would
then be used to print the cheque book.

31
2.CSD and Cash Department
Sometimes the customers who come to withdraw their money though cheque couldn't
withdraw their money because their signature wouldn't match with that of the system.
In such case, the tellers would request the customer to look at their signature in CSD.
Then the CSD would show the signature upon the necessary verification. Similarly, the
customers who were unable to fill deposit forms or fill the cheque would come to CSD
to get help.

3.CSD and Loan Department:

The person or institution who liked to take loan from the bank had to open an account
first. So, the CSD would open a loan account upon the request of the Loan Managers
with all the necessary information.

4.CSD and Administration Department:

The CSD and Administration Department were also linked with each other. The
Administration Department mainly looked after the pension accounts and shares. All
the information from CSD were taken for smooth operation of the department.

5.CSD and Marketing Department:

The CSD and Administration Department were also linked with each other. The
primary motive of marketing department is to attract customer to open account on their
bank and CSD department helps to open bank account of customer.

3.9. SWOT Analysis

SWOT is an acronym used to describe the particular strength, weakness, opportunity
and threats and is strategic factors for a specific company. SWOT analysis should not
only result in the identification of corporation ‘s distinctive competency-the particular
capabilities and resources that firm poses and the superior way in which that are used
but also in the identification of opportunities that the firm is not currently able to take
advantage of due to lack of appropriate resources.
Strength and weakness are related to the internal environment of the organization while
threat and opportunities are related to the external environment. The components of
internal environment viz. organizational strategy, culture, structure, labor unions,
organizational activities shows the strength and weakness of that organization and these

32
components are in hand of organization’s control to some extent. Similarly, the
components of external environment that affects the organization are physical
environment, economic environment, political/legal environment, technological
environment, global business environment, trade union environment etc. (somewhat
referred as PEST). The factors are not in the hand of organization’s control and there is
no way to change the organization as per external environment to huge extent.
With the SWOT analysis it becomes easy for management to know if a particular
activity is cost effective in comparison with competitors or competitive to its rivals in
terms of product differentiation. Thus, managers use information derived from SWOT
analysis to develop specific and effective strategies. Effective strategies are ones that
exploit external opportunities and organization strengths neutralize environment threats
and protect or overcome organizational weakness.

3.9.1. Strengths
The services like e-banking, e-services, mobile recharge, reliable services, diversified
branches, services in the rural areas are the major strength in the competitive scenario.
Similarly, highly dignified members in the BOD and public trust towards bank are also
the strength to the bank. Some other strength aspects of the bank are:
 Joint venture partner with Bank of Asia
 First- class infrastructure and advanced technology
 Goodwill
 Quality service
 Pioneer of online banking
 Effective inter-departmental communication
 Involvement in off-balance sheet activities.
 Proper strategic planning and preparation.
 Branches at suitable places.

3.9.2. Weakness
In the course of operation, each and every organization has some weakness. The major
indicator to measure the weakness of any organization is the level of customer
satisfaction and dissatisfaction. The major weakness of NIC ASIA is the proper
maintenance of CSD (help desk) and major complains are linked with the CSD. As
there is the proverb that: “First impression is the last impression” but NIC ASIA is

33
unable to maintain that. The structure as well as the furniture is too traditional. But the
bank is in continuous improvement. Some other weaknesses are pointed as below:
 Slow processing of documents due to which sometimes customers are disappointed.
 The bank has less number of cash counters
 It takes long time to provide the ATM to their customers similarly the technical
failure of the ATM system is another heating problem
 Insufficient marketing
 Dissatisfied customer
 Complaints of technical errors

3.9.3. Opportunities
Our country Nepal is a developing country and is in the pace of developing. About only
25-30% people are touched with banking activities. Rest 70% people are the source of
opportunities to the banks to bring them in touch. NIC ASIA only covers less than 40
districts of our country. So the opportunities for this bank are unlimited but it just relies
on how to manage and diversify that opportunity. Higher public trust towards bank acts
as the precious stone for the progress of the bank. Other opportunities of the bank are
as follows:
 Capturing the market by taking advantage of weak competition.
 Increasing demand of consumer loan.
 Service provided through the Branchless Banking System where the bank has not
been reached. This unique feature has attracted the customers too.
 Unity among the employee is the good sign of organization as in the modern
environment HR are taken as the sharp weapon for competitive advantages.
 Retaining customers and providing quality assurance.
 New investment opportunity.
 Growing international trade.
 Introduction of innovative products, services and programs.
 Installation of updated technology.

34
3.9.4. Threats
Regular updating and ever changing technology come up with threat. Likewise, lack of
investment opportunities, unstable political situation, decreasing flow of remittance
because of hundis are other threats for bank. However, the current liquidity crisis, rising
in value of dollars, illegal markets are also acting as major threats. Similarly,
cooperatives etc. has been challenges for the banks because they provides the loan with
weak collateral and low interest and take deposits providing high interest. Below points
oversees more about threats:
 Entrance of international banks
 Unstable socio-economic and political conditions of the country, decreasing
attractiveness of new investment
 There is rise in number of financial institutions leading to cut-throat competition in
the domestic banking sector.
 Political instability
 Changing customer preferences
 Changing technology
 Intense competitors
 Lack of investment opportunities in market.

35
 CHAPTER FOUR
ANALYSIS OF ACTIVITIES UNDERTAKEN AND
PROBLEM SOLVED

4.1. Department and their Major Function

4.1.1. Marketing Department
 Sale the product
 Promote the product
 Attract customer towards the product
4.1.2. Customer Service Department
 Account Opening
 Updating KYC
 Receiving telephone and sending mails
 Providing necessary information
 Reporting daily activities to top level
 Handling customer queries

4.2. Activities Performed in the Organization

The internship program is designed by Tribhuvan University for the partial fulfillment
of the Degree of Bachelors in Business Administration. Internship is simply the applied
form of knowledge. It is relatively short in nature with the primary focus on getting
some on the job training and taking what’s learned in the classroom and applying it to
the real world. Internship helps in making decisions and increase skill from organizing,
leading and working in team to innovative thinking. Being a part of NIC Asia Bank
Limited for 8 weeks as an internee was a great opportunity to learn about the banking
practices. Internee was placed at customer service department CSD, marketing
department and file management, Thamel, Kathmandu.

36
4.2.1. Activities performed in Customer Service Department (CSD)
It involves a systematic and continuous process that has to be carried out by the internee.
In each task, the internee has to be very careful and responsible as the task is related to
customer problems. The duties and activities performed at customer service department
during the internship at NIC Asia Bank Limited are explained below:
1.Attending the customers
Customers come to CSD to solve any queries. Internee welcomed those customers and
greeted them. Customers were made comfortable so that they can easily open up with
their query.
2.Provide general information
Customer service department deals with providing information to its customers.
Internee provided information about account opening procedure, remittance, debit card,
different deposits etc. and other information as asked by the customers.
3.Account opening
NIC Asia Bank has offered different types of account with different features such as
current account, saving account and fixed account. Firstly, intern needed to know what
type account the customer wants to open. Account may be opened by individuals, sole
proprietorship firm as well as partnership firms.
Requirement for opening personal account
a) Photocopy of citizenship or passport of account opening person and nominee
b) Photo of account opening person and nominee
c) Location map
d) General information of account holder
4.Fill the cheque requisition form and distributing cheque on hand
Internee has to first fill up the form of cheque requisition at the time of opening account.
If customer wants cheque on hand, internee handover them on their own responsibility
with permission of supervisors.
5.Distribution of various forms and vouchers
Different kinds of forms were also distributed such as account opening forms, journal
vouchers, cheque requisition, debit card form, deposit vouchers as asked by the
customers.

37
6.Filling of forms and vouchers
Internee also fills different forms and vouchers if asked by customers such as new
account opening forms, share forms, vouchers, demand slips, ATM forms etc.
7.Issuing of debit card
First of all internee inform customers to take their debit card. When customers came,
debit card was distributed after verifying their signature.
8.Record keeping
Internee made record about the account close, DEMAT, CRN, application of mobile
banking, cheque, statement and so on.
9.Photocopying and scanning
Internee are assigned to photocopy the different documents of bank and customer which
are required for normal course of banking transaction. Internee need to verify if any
photocopy of documents are provided by customers with the original one and need to
put the stamp stating verified with the originals. Intern are asked to scan the forms and
send to head office as per finance staff instructions. Internee are also asked to scan other
credit department documents and mail to respective staff as per their instructions.
10.I-serve
Internee are assigned to do digital cash and cheque deposit of customer by using mobile
banking as well as internet browser. For this customer need to provide detail like
account name, account number, amount to be deposited, purpose of deposit and their
phone number.

4.2.2. Activities Performed in Marketing Department

1. Cardless banking
Internee are assigned to make customer aware about the cardless banking transaction
and insure to use the product facilitated by bank.
2. Account opening
Internee are assigned to open account visiting their residential area or their working
place.

4.3. Distribution of the Work

The activities of the CSD are handeled by 1 supervisor and two internee respectively.
Not more than 4 persons can stay in the CSD. Hence the supervisor looks after the

38
mobile banking issues and other major issues and also supervises the interns. The
internee is directly accountable to the supervisor. The activities of the marketing
department is handled by 1 supervisor and 2 interns and they would mostly try to bring
new customers to the bank.

4.4. Problem Identified And Solved

In any kind of business, customers are very important but lots of customer means lots
of problems. They have different queries and different people have different behavior
which is the most difficult part of handle. During the earlier period of my internship
internee was confused and scared to communicate but eventually learned how to deal
with customer. The staffs and regular customers were very welcoming due to which
internee was able to perform my task as they were like a family. Problem solved during
the period are as follows.
 Help bank to meet their target on opening personal as well as corporate account.
 Helped the customers fill up various forms like account opening forms, ATM
form and account closing applications.
 Handling the customers inquires patiently and efficiently.
 Some customers were not able to read and write. These types of customers were
helped by filling the account opening application form and by providing the
necessary information regarding the account opening procedure as well as by
filling the deposit voucher and the cheque.
 Help bank to meet their target on ensuring customer to use cardless banking
transaction.
 Reporting feedback from customer to bring necessary change in banking service,
which may be helpful in improving banking performance.
 Convincing customers to open demat account and gave them information about
investing in shares so that they may earn profit.
 Motivating customer to use product of this bank by giving information about new
and necessary features of the bank compare to other bank which may be helpful
in improving banking performance.

39
4.5. Intern’s Key Observation
The internship period in NIC ASIA Bank was quite satisfactory. During the period of
internship, the internee got the opportunity to understand, identify and solve some of
the problems faced by the bank. Internee got the chance to meet best staffs and interact
with them. All the staffs made the internee feel like a part of NIC ASIA family. Some
of the crucial things that the internee observed in NIC ASIA of Thamel branch are as
follows:
 The customer service desk was spacious and enough to have the CSD staffs.
 A large number of customers visited the bank to open the accounts every day.
 To know about daily transaction carried out.
 They used the finnacle software but the customers had to wait for a long time as
the system failure occurred sometimes.
 The real working environment is quite different from what we used to learn in
the classroom.
 The staffs of NIC ASIA Bank are very helpful and cooperative.
 The staffs here dedicated their valuable time even though a little to teach the
internee.
 Customer service desk lacks employees as compared to the flow of customer.
 Bank was able to attract huge customer base with different attractive schemes
attached to every products of the bank.
 There is slow response from head office in sending ATM cards and other similar
response related with remittance and others that the branch office has to deal.
 The internee found huge number of big files all over the place. The drawers and
cabinets built to store files and documents were full and the documents were even
stored on the top of shelves, under the tables, over the working spaces etc..
 There was lack of adequate follow ups with the customer regarding matters such
as informing them to collect cheque books, and others.
 Staff at cash department seemed to work in coordinated way so that any mistake
are not committed.

40
 CHAPTER FIVE
CONCLUSION, LESSON LEARNT AND SUGGESTIONS

5.1. Summary
The internship report is prepared as per the requirement of Tribhuvan University, BBA
Eight Semester. This report is designed according to the knowledge gained on field
based experiences. The main aim of the eight weeks internship program is to provide
the internee an opportunity to implement their theoretical knowledge into practical
situation. Out of various area or sectors of the economy, the internee choose banking
sector, specifically customer service department and marketing department of NIC Asia
Bank Limited, Thamel branch. Among the various business firms, banking plays an
important role in the economy by providing capital to economy through its various
functions like deposits and credits.
The main focus of this report is to explain about the experiences gained by the internee
throughout the internship period. To prepare the report primary as well as secondary
data are collected and the duration of the internee in the departments are also shown.
The major activities performed by the internee and the problems that were faced during
the period along with the solutions are explained in this report. A brief introduction to
the banking industry, its objectives and functions are given in this report. The intern’s
key observations, problems, solutions and feedback to the university as well as the
organization are the major highlights of this report.
During the internship, the internee learned skills and attitudes that are required in the
working environment. The internship help gained the working insights of the place and
how different departments are linked to each other. It was a very fruitful experience for
the internee and it has helped the internee gain the first step toward the future career.

5.2. Conclusions
Commercial Bank in Nepal could be viable only if they could provide maximum
qualitative services to the customer of the bank who is the main source of income for
the banks. Without the customers, no bank can fulfill its objectives. To maintain the
standard of the bank it should always look for measure to adapt to changes to a better
level.

41
This report has been prepared as the partial fulfillment of eighth semester of BBA under
TU. NIC Asia Bank Ltd. proved to be a strong mainstay for building up professional
career. In pursuit of fulfilling the requirement, the internee had worked under the
supervision of the experienced personnel in the Thamel branch of NIC Asia Bank Ltd.
for eight regular weeks which had been a very fruitful learning experience for the
internee. The internship program provided the internee the opportunity to learn about
the banking sector and scrutinize its operations in various sectors. Prior to this
experience, the intern’s knowledge about banking was limited to only books.
The internship gave internee the perfect opening to plant acquaintance in the
appropriate field. It helped internee to apply the year’s long theoretical lessons into
practical area. Further, in past 8 weeks, internee learned to work under pressure and
broadened knowledge, vision, ability and confidence to perform in real working
upbringing. There was good communication and healthy relationship in between the
different levels of staffs. It was a great chance to gain practical knowledge of banking
sector. Beside this, the supervisors were extremely helpful in guiding on the internship
program.

The internship program has provided the insight of the practical knowledge and the
ability to deal with the real world. It provided an opportunity to merge theoretical
knowledge into the practical works. It also offered insight to know how real
organization function. What pressure an employee would feel and not to forget learning
customers, remittance and ability of the employees to handle various types of customers
with varied needs, demands, and temperament. During internship, internee found the
customers are the greatest assists of any bank.
5.3. Lesson Learnt
The eight weeks of internship in NIC Asia Bank Ltd. was worthwhile and had
memorable experience. The exposure which the internee got from the internship was
truly precious for the internee who contributed a lot to expand her knowledge on general
banking; familiarized the internee with the working environment, organization
structure, norms, culture that enhanced the internee interpersonal skills, tie management
and developed some sort of confidence in the internee.

A person cannot be competitive enough without acquiring knowledge in both

theoretical and practical aspect and getting exposer in practical fields. The main
objective of the internship program is to provide the student a platform and foundation

42
for starting their career in the field which they have done specialization. Practical
knowledge is more important than theoretical knowledge in a sense that once people
enter into real work setting, diverse situation, novel problems, difficulties and
challenges arises which makes the person more dynamic and enthusiastic. So, being an
internee in one of the leading commercial bank i.e. NIC Asia Bank Ltd. has contributed
a lot in polishing the personality a well as career of the internee. The valuable lessons
that the internee learnt during the internship period are as follows:
 The internee learnt to deal with the customers and solve their queries to make
their banking experience convenient and easy.
 Learnt how to prepare & issue cheque books and fixed deposit receipt.
 Learnt to use the office equipment like photocopy, faxes, cheque writer, printer
etc.
 Maintenance of Proper filing system of bank’s customer’s information files.
 Gained knowledge about general banking practices and corporate culture.
 Learned to be self-confidence to deal with the customers and make them feel
comfortable in every way.
 Erudite to make effective communication skill for quick and efficient service.
 Understanding about different types of stamps that were in use. They were so
called crossed stamp, bank’s stamp, endorse stamp and paid stamp.
 Become familiar with the use of Finnacle Software that helped a lot in
maintaining the proper balance in the overall activities of the bank.
 The internee learnt about the organization environment.
 Learnt about dealing with people from different backgrounds.
 Learnt how to work in group dynamism.
 Learnt how to work in team and individually while performing the assigned tasks.
 The internee learnt how various activities in the bank are carried out according to
process and need.
 Learnt the process to deliver balance statement, balance certificate, ATM cards,
cheque books etc.
 The internee learnt to work in system that helped in understanding the importance
of each activity in the system.

43
5.4. Suggestions
5.4.1. Suggestions to NIC Asia Bank
From the 8 weeks of internship, various strength and weakness of the organization are
analyzed. From the analysis, following Feedbacks can be given to bring the
improvement in the organization. They are:
 The customers who want to seek for the information are not given satisfactory
services. So, the bank should interact with the customers in the way to satisfy
them.
 Too many internee should not be placed in one department which may lead to
mixing up of works and consequently the co-workers are not satisfied with the
works of internee.
 Proper training must be provided to the staff in a regular basis to use the banking
software effectively.
 Communication between the employees is very important in each and every
organization. So, the inter department communication should be induced and
encouraged.
 The employees are not found motivated towards their work. So, it’s necessary to
motivate them to be more productive and customer service.
 The bank should also show some responsibilities towards the society, by
organizing different social program, sponsoring and promoting educational and
health program.

5.4.2. Suggestions to the College/University

Working at NIC ASIA Bank was beneficial in term of building professional network
that will be helpful for internee professional life and career path. It was learning
experience where we got chance to develop new skill and enhance both practical and
conceptual knowledge. Getting an opportunity to work in the NIC ASIA Bank has
provided a strong foundation and knowledge related to report preparation. On the basis
of above experience some feedback to college are as follows:
 The college should organize a workshop with the authorized person from various
institutions before the starting of the internee.
 Regular and proper assessment of the internee student should be made to ensure
that the students are serious and regular.

44
 The time given for the internship should be more so that the students get more
practical knowledge.
 The college should encourage the banks and other institutions to provide the
internee with tasks which makes them more challenging and more competitive.
 Timely feedback about the internee should be taken from the supervisor to know
about the progress report and their job status.
 There must be proper communication between organization and the college.
 The internship program should be taken as a very serious matter as it will create
the chances of placement in the organization.
 Internship period should be extend more than about six months or also the last
semester should be wholly given to the internship only because just three months
is not sufficient for practical experience.

45
 REFERENCES
Goddard, W., & Melville, S. (2004). Research methodology: An introduction. Juta
and Company Ltd.

Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age

International.

Shrestha, M.K & Bhandari, D.B. (2008), Financial Market and Institutions
Kathmandu Asmita Publications
Resa, 2011, Business organization and office management. Kathmandu, Asmita
Publications
Gautam, R.R. Thapa, k. (2008). Capital Structure Management. Kathmandu: Asmita
Books Publishers and Distributers.
Gitman, L.J. (2001). Principle of Management. New Delhi: Pearson Education Asia.
Mittal, S.N. (2003). Cost Accounting and Financial Management. New Delhi: Shree
Mahavir Books Depot.
Paudel, R.B. (2016). Business organization and office management. Kathmandu:
Asmita Books Publishers and Distributers

Websites:

https://www.sharesansar.com/
https://www.sharesansar.com/company/nica
https://www.nicasiabank.com/reports
http://www.nrb.org.np
Annual Report 2078/2079

46
 APPENDICES

Appendix-1

Particulars FY 2078/79
Assets
Cash and Cash Equivalent 35,798,494,367
Due from Nepal Rastra Bank 17,854,280,963
Placement with Bank and Financial Institutions -
Derivative Financial Instruments 4,412,984,320
Other Trading Assets 9,500,000
Loan and Advances to B/Fls 12,162,798,541
Loans and Advances to Customers 264,337,120,518
Investment Securities 29,399,961,148
Current tax Sets -
Investment in subsidiaries 1,264,500,000
Investment in Associates -
Investment Property 1,243,229,172
Property and Equipment 3,009,129,302
Goodwill and Intangible Assets 83,889,401
Deferred Tax Assets -
Other Assets 4,949,404,721
Total Assets 374,525,292,453
Liabilities
Due to Bank and Financial institutions 34,364,751,208
Due to Nepal Rastra Bank 19,476,075,205
Derivative Financial Instruments 4,442,760,000
Deposits from Customers 278,281,334,865
Borrowing -
Current Tax Liabilities 207,054,736
Provisions -
Deferred Tax Liabilities 406,733,240
Other Liabilities 4,599,909,573

a
Debt Securities Issued 10,786,568,152
Subordinated Liabilities -
Total Liabilities 352,565,186,979
Equity
Share Capital 11,564,005,366
Share Premium -
Retained Earnings 2,148,029,220
Reserves 8,248,070,888
Total Equity Attributable to Equity Holders 21,960,105,474
Non-Controlling Interest -
Total Equity 21,960,105,474
Total Liabilities and Equity 374,525,292,453