GENERAL BANKING PRACTICES OF NEPAL BANK

LIMITED, CITY OFFICE BRANCH, NEPALGUNJ

AN INTERNSHIP REPORT

BY

NABIN BISTA

TU SYMBOL NO: 19133/17

TU REGISTRATION NO: 7-2-55-309-2017

Submitted to

Faculty of Management, Tribhuvan University

In partial fulfillment of the requirement for the degree of

Bachelor of Business Administration

At the

Mahendra Multiple Campus, Nepalgunj

Tribhuvan University

Nepalgunj

July, 2022
 ACKNOWLEDGEMENTS

The internship report entitled “ General Banking Practices of Nepal Bank Limited City
Office Branch Nepalgunj” has been prepared in the partial fulfillment of the requirement
for the degree of Bachelor of Business Administration (BBA).

There are many supportive hands to be thanked who have helped me in different ways to
complete this research work. Although, it is impossible to acknowledge all those who
contributed to this study, some person need to be publicly acknowledged.

Firstly, I would like to thank Tribhuvan University for making internship as a part of
BBA program. Further I would like to express my special gratitude towards the Faculty
of Management team of BBA , Mahendra Multiple Campus and our Supervisor Mr.
Prakash Regmi for guiding me and cooperating greatly to complete the internship
program successfully.

Secondly, I would like to thank Nepal Bank Limited (NBL) Nepalgunj City Office
Branch for giving me an opportunity to pursue my internship & providing me chance to
gain knowledge about banking function. Finally, I would like to thank my family and
friends who directly or indirectly supported me in completing my internship report.

Finally, I would like to thank my family and friends who directly or indirectly supported
me in completing my internship report.

Nabin Bista

Exam Roll No: 119133/17

Date: July, 2022

v
 TABLE OF CONTENTS

Title page ………………………………………………………………………………………..….

Recommendation letter ……………………………………………………..…….......................

Approval Letter…………………………………………………………………………..…………

Internship completion letter…………………………….………………………………………..

Acknowledgement……………………………….………….……………………………………..v

Table of contents ……………………………….………….…...……………………………..…vi

List of tables …………………………………….………….………………….………………..…ix

List of figures ……………………………………..…………………………….………………….x

Abbreviations ……………………………………..…………………………….….…………...…xi

CPAPTER I

INTRODUCTION

1.1 Background of the study…………………………………………………..………....1

1.2 Objective of the study……………………………………………………...................2
1.3 Significance of the study……………………………………………………………..2
1.4 Methodology …………………………………………………………………………3
1.4.1 Organization Selection…………………………………………………………….3
1.4.2 Placement………………………………………………………………………….4
1.4.3 Duration…………………………………………………………………………...4
1.4.4 Nature and sources of Data…………………………………………..……………4
1.5 Activities Performed…………………………………………………….....................4
1.6 Limitation of the study……………………………………………...….…….............5

CHAPTER II

vi
INTRODUTION OF THE BANKING INDUSTRY

2.1 Meaning of the Bank…………………………………………………………………..6

2.2 Origin of the World Bank……………………………………………………………..7

2.3 Origin and Evolution of Banks in Nepal……………………………………..............8

2.4 Types of Bank under NRB…………………………………………….………………9

2.5 Types of Bank ...…………………………………………………..…………………10

2.6 Importance of Bank……………………………………………………………..……13

2.7 Opportunities and Challenges for Overall Banking Sectors…………………….…...13

CHAPTER III

INTRODUCTON OF ORGANIZATION

3.1 Introduction of Nepal Bank Limited ……………………………..………………...15

3.2 Vision, Mission, and Objective ……………………………..……………………...16

3.3 Bank slogan…………………………………………………………..….………..….17

3.4 Share ownership ………………………………………………….…………............17

3.5 Branches of NBL ………………………………………………………….………...18

3.6 Organization structure of Bank ………………………………………………...…..18

3.7 Products / services offered by NBL………………………………………..…….…..20

3.8 Capital Structure of NBL…………………………………………..………….……..27

CHAPTER IV

ANALYSIS OF ACTIVITIES DONE

4.1 Activities done in the organization…………………………..………………………28

vii
4.1.1 Customer Service Department (CSD)…………………………………...…………28

4.1.2 Customer Counseling……………………………………………..…………….….29

4.1.3 Account Opening……………………………………………………….………….29

4.1.4 Procedure of account opening …………………………………………….............32

4.1.5 Account Closing……………………………………………………………………33

4.2 Remittance Department………………………………………………….……….…34

4.3 Clearing Department……………………………………………………….…….…..35

4.4 Letter of Credit……………………………………………………….………………35

4.5 Problems faced during Internship……………………………….…………………...36

4.6 Intern's key observation………………………………………………………..…….36

CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1 Conclusion ………………………………………………………………………..…38

5.2 Lesson Learnt…………………………………………………………….………......39

5.2.1 Knowledge based learning…………………………………….………………...…39

5.2.2 Skill-based learning ……………………………………………...………………..39

5.2.3 Behavioral based learning………………………………………………….………40

5.3 Human resources relationship and Organization environment…….……………..….40

REFERENCES

ANNEXES

viii
 LIST OF TABLES

Table No Title Page No

1 Classification of banks under NRB……………..……..….10

2 Branches of NBL …………………………………..……….18

3 Capital structure of NBL …………..……………….………27

ix
 LIST OF FIGURES

Figure No Title Page No

1 Organizational structure of NBL ………………………..…..19

2 Organizational structure of NCO branch …………………....20

x
 ABBREVIATIONS

ABBS Any Branch Banking Service

APG Advance Payment Guarantee

NBL Nepal Bank Limited

ATM Automated Teller Machine

BBA Bachelor of Business Administration

BOD Board of Director

CEO Chief Executive Officer

CSD Customer Service Department

FOM Faculty of Management

KYC Know Your Customer

LTD Limited

NGO Non- Government Organization

NRB Nepal Rastra Bank

SMS Short message Service

SWOT Strength , Weakness, Opportunities and Threat

RO Regional Office

GSD General Service Department

OBC Outward Bills Collection

xi
 1

CHAPTER I

INTRODUCTION

1.1 Background of the Study

This report is prepared in partial fulfillment for the degree of Bachelor of Business
Administration (BBA) under the faculty of management. For the completion of BBA,
students are required to undergo comprehensive on-the-job Internship in the eight
semester.

Although the course design is very much practical in all the semesters with field work,
report preparation and presentations, the internship at the last semester aims in providing
the students with real world experience as to how the jobs in the organizations are
performed, what are the issues the business firms need to address and many others. The
internship is to serve the purpose of acquainting the students with the practice of
knowledge of the discipline of an organization and helps the student to understand
corporate social responsibility, develop the corporate attitude and venture
entrepreneurship.

The internship program is a practical of all the subjects learned in the classroom. The
main objective of the internship is to help students understand the real working
environment as well as to apply the knowledge they have gained in the classroom into the
real business practices. The internship enables the students to be acquainted with the
practical aspect of the Nepalese business environment. The internship consists of
exchange of service for experience between the student & an organization. Students can
also use an internship to determine if they have an interest in a particular career, to create
a network of contracts, to acquire a recommendation letter add to their curriculum vitae,
or to gain school credit. Thus, the internship program can be regarded as a fruitful
opportunity for the students of BBA to be familiar with the corporate work environment
of Nepal.
 2

The report prepared consists of the internee’s work experience gained during the
internship in Nepal Bank Limited . The report is generated on the basis of the work done
and the careful study made by the internee on the sectors of Customer Service
Department (CSD).

1.2 Objective of the Study

The general objective of this program is to make students familiar with the working
environment and gain the practical experience in the related field. This further helps the
students to expose themselves to the real world of the external environment about
different aspects of management where they can apply their theoretical knowledge. The
main task of the internship program is to make a study on the banking operations process,
understand the services provided to its customers, and have complete knowledge and
functioning of the related departments. The specific objectives are:

 To apply theoretical knowledge in real working situations.

 To understand the working procedure of commercial banks in Nepal.
 To acquire sound knowledge about the banking rules and regulations.
 To know about the operating procedures of different departments of bank in general.
 To understand the opportunities and threats in commercial banking sector.

1.3 Significance of the study

Internship program helps to gain the practical experience from the actual work setting. It
helps to use theoretical knowledge in organization dealing which had been studied in
college classes. This program can be very useful for future because it makes to know
about what are the challenges and problems that a bank faces in managing their
customers, how customer relationship can be built , how to differentiate good customer
from bad and how to expand the market . Some of the significances of the internship
program are as follow
 3

 Develops ability to work in the particular work area of a bank.

 Improve the interpersonal skill of the student as a result of continuous interaction
with customers.

1.4 Methodology

This study for making this report is mostly descriptive in nature where the facts and
finding are prescribed in a systematic manner. The information required for the
preparation of report has been collected from observation of the activities that are
performed in the bank and personal interviews and consultation with the staffs involved
in different departments of the bank. The secondary data used in the report are obtained
from websites, brochures, annual report and books.

1.4.1 Organization Selection

Selection of organization for internship program is always crucial task. Being the student
of BBA, at the present scenario, among different field related with the financial sector
one of the major field is the banking sector so internee chose banking sector. I dropped
my curriculum vitae, citizenship and recommendation letter from collage at different
banks. In this process, Nepal Bank Limited, NCO branch Nepalgunj had accepted my
application and gave me the opportunity to get familiar with bank. The bank provided me
the great opportunity to work as the internee at NBL and gather experience about real
banking environment.

1.4.2 Placement
Regarding the placement, I was appointed to conduct my internship at the City Office for
the initial two months. During the internship period I was placed in different sections of
the bank so that I could have the overall knowledge of the banking operations.
 4

1.4.3 Duration
According to the Faculty of Management, the duration of internship period has been
defined for 45 working days. However, I did my internship for about 112 days. I started
the internship in the bank at 15th Asojh 2078. During this internship period, I was able to
learn about the bank’s culture, work environment and the working procedure of the
various departments of the bank.

1.4.4 Nature and Sources of Data

In this internship report, both the primary and secondary data have been used.

Primary source
 An interview with the bank personnel of NBL
 Day to day observations
 Instructions of supervisor
Secondary source:
 Annual report of NBL
 Brochures and other published documents
 Website of NBL.

1.5 Activities Performed

During internship, I performed various activities in different sections under the
supervision of the head of the department. In doing this I was able to gain in-depth
knowledge regarding the functioning of the various department of the bank that helped a
lot in grooming the interpersonal skills.
The departments visited was: Customer Service Department (CSD)
 Account operation (opening and closing)
 Process from printing cheques and statement and submitting to the final
customers
 Assisting customer to fill various forms (ATM ,account opening , account closing
, SMS banking ,e-banking , new signature card , new cheques , KYC )
 5

 Photo, signature card scanning, screening and entering in software.

 Forwarding customer to respective department as per the requirement of the
customers.

1.6 Limitation of the study

This study has been prepared on the basis of observations and experience gained during
internship period. It is confined only in the Retail banking, Human Resource Department
etc.
The following are the limitations of the study:

 The bank’s policy on keeping some matters confidential prevented from analyzing
different activities.
 This study may not be applicable to other organizations of similar nature.
 The time duration that has been provided was not sufficient to learn all the activities
held in the bank
 The bank staffs were preoccupied with their work so they had a little time to interact
with internee.
It does not give detail view of the overall functioning of the bank since most of the
information is collected through personal experience and observation.
 6

CHAPTER II

INTRODUCTION TO THE BANKING INDUSTRY

2.1 Meaning of Bank

The banking industry was once a simple and reliable business that took deposits from
investors at a lower interest rate and loaned it out to borrowers at a high rate. However,
technology and deregulation led to a revolution in the banking industry that saw it
transformed. Banks have become global industrial powerhouses that have created ever
created more complex products that use risk and securitization. Through technology,
development, banking services have become available 24 hours a day, 365 days in a year
through ATMs, online banking and in electronically enabled exchanges where everything
from stock to currency futures contracts can be traded.

Bank is a financial intermediary which creates the relationship with both the surplus units
and the deficit units to create the relationship with these units, bank offers various
financial products and the person who purchase that product will knowingly or
unknowingly becomes the relative of the bank. The major financial product that any
branch offers to the public are various deposits schemes and the loan schemes. The one
who are in need of money of fund purchases the deposits schemes.

Bank exists in the economy to perform the function of the intermediary. Banks
intermediates not only the surplus and deficit units but also perform various management
activity to create a balance in the economy. It should perform the size enter-mediation
because in general surplus units are large in number but they less amount of surplus funds
and the opposite scenario is of the deficit side. Similarly it should perform the maturity
and information inter-mediation as per the requirement. Basically, banks are those
financial institutions that offer the widest range of financial service.
 7

In the present context, bank had become the basic need of the human which performs not
only the basic financial activities but also performs the non – financial activities to ease
the human life.

“Bank is a financial institution which financial services that may be in the form of
accepting deposits, advancing loan, providing necessary technical advises, dealing over
foreign currencies remitting funds etc.”

-Nepal Rastra Bank Act 2002

“Bank is an institution which collects money from those who have it to spare and who are
saving it out of their income and lends out to those who require it.”

-C.W Crowther

“Bank is an establishment of the custody of money which it pays out on customer’s

order.” Concise Oxford Dictionary

So, Bank may be defined as financial intermediary between depositors and the credit
seekers. Bank is among the most important financial institutions in the economy and
essential business in thousands of local towns and cities. Bank plays different kinds of
roles like intermediary, underwriter, utility payers etc.

2.2 Origin of the word Bank

The word bank is derived from the Italian word 'Banco' which means a bench where the
jews in Lombardy having benches in the market place for the exchange of money and
bills. And then people around the world started to use different word for their convenient
like in French 'Banque', and German 'Bank'. A bank is a financial institution that accepts
deposits from the public and provides credit. Bank plays an important role in financial
market. Due to their importance in the financial stability of a country, banks are highly
regulated in most countries. Also, an institution established by law, which deals with
money and credit is called bank. It is an important institution in the economy and
 8

essential business in the thousands of cities. Banks are working as the credit creator,
money maker, currency exchanger, money transformer, and so on in the country.

2.3 Origin and Evolution of Bank in Nepal

The history of modern banking business in Nepal is not so long if we try to see the
history of banking of Nepal.

In 1877, during the period of the rule of King Ranodip, many economic and financial
reforms were carried out. One of the first banking institutions “Tejarat Ada” was
organized by the government in the Valley of Kathmandu.

The banking institution Tejarat Ada provided loans to the public, taking gold and silver
as a pledge. Government officials also had the right to receive loans from this
institution. Loans were paid from their salary. The introduction of this financial
institution was the first step in the development of the country’s banking system.

Because of the development of economic activities in Nepal the above institution could
not fulfill the need of people so Nepal Bank Limited was established. Nepal Bank
Limited was established by inauguration of King Tribhuvan Bir Bikram Shah Dev on
30th Kartik 1994 B.S. Nepal bank was established as a semi-government bank with the
authorized capital of Rs.10 million and the paid -up capital of Rs. 842 thousand. Until the
mid-1940s, only metallic coins were used as a medium of exchange.

Nepal Bank Ltd. remained the only financial institution of the country until the
foundation of Nepal Rastra Bank in 1956 A.D. Due to the absence of the central bank,
Nepal Bank has to play the role of the central bank and operate the function of the central
bank.

Hence, the Nepal Rastra Bank Act 1955 was formulated, which was approved by the
Nepal Government accordingly, the Nepal Rastra Bank was established in 1956 A.D. as
 9

the central bank of Nepal. Nepal Rastra Bank makes various guidelines for the banking
sector of the country.

Rastriya Banijya Bank was established in 1965 A.D. as the second commercial bank of
Nepal. The financial shapes for these two commercial banks have a tremendous impact
on the economy. Similarly the Agriculture Development Bank and Nepal Industrial
Development corporation was established 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 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 in mid July, 2022, there are 27 commercial banks, 17
development banks, 17 financial companies, 67 microcredit (Grameen) development
banks, and 15 saving and credit co-operation(licensed by Nepal Rastra Bank) are
established so far in Nepal. The bank with the largest network in Nepal is The Nepal
Bank Ltd. These commercial banks and financial institutions have played significant
roles in creating banking habit among the people, widening the area and business.

2.4 Classification of Bank under Nepal Rastra Bank (NRB)

Nepal Rastra
Bank

Finance Micro Credit

Commercial Development
Companies Institutions
Bank Cass A Bank Class B
Class C CLass D
 10

Financial sectors in Nepal have become one of the major contributors to the Nepalese
Economy. There has been a rapid growth in the financial Institution in the recent years.
The present scenario of Nepalese Financial Institutions Can be presented as:

Type of Financial Institution Class Number

Commercial Bank A 27

Development Bank B 17

Finance companies C 17

Micro Credit Development Banks D 67

Saving and Credit Cooperative NA 15

(Licensed by NR)

Infrastructure development Bank NA 1

Table 1: Classification of banks under NRB

2.5 Types of Bank

Since different banks are established with different purposes. Based on their purpose,
way of functioning and meeting customer's demands and choices, they are categorized
into various types. Broadly, the banks can be classified into following types:

 Central Bank
 Commercial Bank (Class A)
 Development Bank (Class B)
 Finance Companies (Class C)
 Micro credit Development Banks (class D)
 11

2.5.1Central Bank

A central bank is the "Bank of Bank", which is established with the objective to issue
currencies, look after the overall performance of other banks and financial institutions,
and aid government in formulating various policies. In every country, government has
full ownership on central bank. It doesn't focus on profit generation. It acts as a
regulatory body of the country's financial market through formulation and
implementation of monetary policy, and regular inspection and supervision. All the
income and expenses of the government is carried out through this bank. Nepal Rastra
Bank was established on 2013 B.S. as the central bank of Nepal.

2.5.2 Commercial Bank

The commercial bank is the oldest type of bank, which is established with the objective
of to earn profit. It collects deposits from general public as well as from the institutions
and disburses the collected deposits in the form of loan to agriculture, industry and
service sector as well as to the individuals. Nepal Bank Limited is the first commercial
bank of Nepal which was established in 1994 B.S. Currently, twenty seven commercial
banks are operating in the Nepalese financial market.

2.5.3 Development Bank

The bank which is established for the development of different sectors like industrial,
agricultural, infrastructural etc. by imitating the modern system and methodology through
financial, technical and administrative assistance is known as development
bank. Development banks in Nepal are playing vital roles for the development of
economy status of Nepal. Nepal has many nationalized and private banking. There are 17
development banks in Nepal.
 12

2.5.4 Finance Companies

The history of financial institutions is not very old. When banking sector started carrying
out current activities of finance company, large number of finance companies was
established and they expanded at a rapid pace in the developed countries, UK and USA in
1960. In the context of Nepal, there were few insurance companies and Karmachari
Sanchaya Kosh working as non-banking financial institution before enactment of Finance
Company Act, 2042. Need of Finance Company Act was felt because unauthorized sector
was collecting savings from the common public in the name of Upahar and Dhukuti
programmes. People showed great interest and enthusiasm in these programmes but they
were cheated by most of the organizers of these programmes. Considering peoples’
interest in such programmes, benefit of mobilizing such savings in productive sector,
banking sectors’ inability to carry out capital market activities and to meet consumers’
need for credit, government felt the need of finance companies and introduced Finance
Company Act, 2042. However, no finance company set up till 2049 because the act came
into being only in 2049 with some amendments. At Present there are 17 Finance
companies in Nepal.

2.5.5 Micro Credit Development Banks

Nepal is a land locked developing country. Many people (38%) of Nepal are under
poverty region .Most of the poor people lives in rural areas and have little opportunity.
Micro finance (Micro Credit Development Bank) could help poor people who do not
have any collateral, but a willingness to work and a desire to do some
business activities from which He/ She will acquire employment as well as income. At
present there are 67 Micro Credit Development Bank in Nepal.
 13

2.6 Importance of Bank

 Bank pool the scattered deposit across the country and then channel it in
productive use.
 Bank deposit is withdrawal by cheque, hence, it constitute an important part of the
total volume supply.
 Sound banking system helps in flourishing healthy commercial and industrial
activities of every country.
 Bank transfer fund within and outside the country without any risk.
 Bank provides letter of credit and guarantee facilities which contributed in
boosting international trade to great extent.
 Money lender and usurers charge heavy interest rates and cheat people, but bank
being a large entity , can be considered free from such exploitations.
 Bank provides lockers for safekeeping of valuable documents and precious
articles in rent.
 Bank provides various card services, which has eliminates the difficulties and risk
of caring money.

2.7 Opportunities and Challenges for Overall Banking Sector

In this present era of globalization financial institution like commercial banks possess a
lot of opportunities that could make it prosperous along with the various threats to be
eliminated. The global opportunities and challenges have direct influential characteristic
for the banking industry. Therefore it becomes a prime concern to view the overall
market opportunities and threats for each banking industry. The following opportunities
and threats could be listed out:
 14

Opportunities

 People changing perception toward different financial institution.

 Increasing habit of saving and spending through modern technology.
 New opportunities sector for investment.
 New options for saving and ideas revolving in market.
 Favorable environment related to eliminated political hindrances and barriers.
 Technological advancement and up gradation.
 Dynamic needs and technological advancement.
 Habit of saving and investment through much electronic use.
 Advancement in people's perception and attitudes for saving.

Challenges

 New NRB policies.

 Legal and constraints restriction.
 Maintaining of more paid up capital.
 Merging situation.
 People changing preferences.
 Customers striving for new and best service quality.
 Employee management and professional consultation.
 15

CHAPTER III

INTRODUCTION OF ORGANIZATION

3.1 Introduction of Nepal Bank Limited

Nepal Bank Limited (NBL) was established in 1994 B. S. Kartik 30. It was established
before the establishment of Nepal Rastra Bank. The role of the bank has been praised as
the first bank in the country to promote and develop industrialization, trade expansion,
the arrangement of import-export and development of Nepalese economy. This bank,
which started banking business from Kathmandu Juddhha road, has opened its branches
in the cities, business centers. And in the remote areas of the country, providing a
banking service from about 218 branches.

Nepal Bank Limited is a commercial bank which obtained ‘A’ class from Nepal Rastra
Bank. Nepal Bank Limited is the first bank established in Nepal. It has been established
in joint logistics of 60 % Nepal government and 40% private sector.
The Nepal Bank was inaugurated by King Tribhuwan institutionalizing banking services
in Nepal. Until the bank was established, all monetary trades were performed from
private dealers and business centers. The bank was started with 12 employees.

At that time, the concept of formal banking was trusted by very few and the very few
were justified by the new concept. The number of equitable shares was not easy, it was
difficult to operate the deposit. As a result, the bank had issued Rs. 25,00,000 of entitled
shares. Only 8,42,000 was able to raise.

Since the establishment of Nepal Bank Limited, it is the joint investment bank of the
government and private sector. At the beginning of its operations, only 10 shareholders
were present. The authorized capital was Rs.10 million during the establishment of a
government-owned bank, the issuance was Rs.25 lakhs and the paid capital was 8 lakh 42
thousand rupees. The current bank’s paid up capital has been Rs.12 billion.
 16

For the convenience of customers, ATM machines have been installed. And the bank
plans to increase the number of branches and ATM machines in the coming days.
Similarly, the bank has also provided save deposit vaults, trade finance, SMS banking,
ABBS, internet service. In the current fiscal year, the bank has planned to open new
branches.

3.2 Vision, Mission and Objective

Nepal Bank Limited, The first bank of Nepal was established in November 15, 1937 A.D
(Kartik30, 1994). It was formed under the principle of Joint venture (Joint venture
between govt. & general public). NBL's authorized capital was Rs.10 million & issued
capital Rs.2.5 million of which paid-up capital was Rs.842 thousand with 10
shareholders. The bank has been providing banking through its branch offices in the
different geographical locations of the country.

Corporate Vision:

"Pioneer Bank with customer service excellence"

Mission Statement: BEST

Building trusted and united customer relationship

Ensuring superior quality customer service

Service access to all

Technology driven SMART banking service

 17

Core Values

 Honesty, transparency, integrity and ethics

 Respect to customers and respect to fellow associates
 Learning and knowledge sharing
 Teamwork, ownership and accountability
 Contribute to society and environment

Objectives

Nepal Bank Limited has the following objectives:

 Focus on building the positive net worth and meeting minimum capital
requirement over the coming five years.

 Focus on increasing the customer base and market share.

 Maximize the potential/efficiency of bank's staff.

 Focus on minimizing the risk associated with the business.

 Focus on providing the world class business solutions.

 Focus on increasing the sustainable profit or “Achieving secured and sustainable

growth by delivering Robust, Ethical and Responsible (RER) banking service”

3.3 Bank slogan

"we started banking in Nepal, still we are leading way''

3.4 Share ownership

The share ownership in Nepal Bank Limited (NBL) is government and private sector was
60% and 40% respectively.
 18

3.5 Branches of NBL

Province wise Branches No of Branches
Province 1 38
Province2 35
province 3 59
Province 4 28
province 5 34
Province 6 12
Province 7 12

Total no. of Branches 218

Table 2: Branches of NBL

source: [Link]

3.6 Organization structure of NBL

The bank is under control of NRB has appointed a five members management committee.
This management committee performs as the Board of Directors of the bank. Chief
executive officer is under the Board of Directors (BOD) followed by General Managers
(GM), Deputy General (DGM) and then other departments.
 19

Figure 1: Organization Structure of NBL

 20

Organizational structure of Major department of NBL at Nepalgunj city

office, Newroad

NBL City Office braches has well-defined organizational structure with more than 15
staffs. It also includes 1 extension counter near to Bheri hospital. Other than department
shown below, bank has various other departments. The organizational structure of major
departments of NBL at City Office is shown in the figure below.

Branch Manager

Asst. Branch Manager

Operation Department Credit / Loan Department GSD

Remittance Cash CSD

Figure2: Structure of NBL in Nepalgunj city office

3.7 Products / services offered by NBL

NBL like all other commercial banks who is never back in providing the best products
and services to meet requirement of its customer that the existing ones or potential
customers. It generates its revenue mainly from its credit creation ability and finances its
 21

creation from deposit. Thus, mainly the products can be categorized into two major
heading deposits and loans. However, there are other various product/services of NBL
that has enabled it to retain its customer for more than eighty years. NBL is not just
business, it’s the facility for the citizen belonging to every corner of the country and in
even in the entire globe. Remittance, utility payment service, SMS banking, ABBS all
from an array from consumer oriented service that are aiding for NBL corporate image
and untrammeled consumer loyality.

Products and Services

Loans (Advances) dRemittance sDeposits ssOther Service

Export/ Import finance NBL Web Remit Saving Safe Deposit

Vault
Business Term Loan NBL Remittance Product Fixed Trade Finance
Working Capital Loan Inward Remittance Current Mobile Banking
special SME Loans Outward Remittance Recurring Deposit ABBS
Deprived Sectors Loan Employee Welfare a/c ATM/Debit
Card
Agriculture Loan Call deposit
Retail Loan NBL Trust Fund
Other loan FCY Saving

NBL products are briefly described below:

3.7.1 Deposits

NBL offers a wide range of deposit products that cater the requirement. Namely:
 22

Saving Deposits

Saving account are opened for those people who wants to save the money . There are
various type of saving account offered by the NBL , which are described below :

Normal Saving

All the customer who wants to open saving account, this account is opened. Customer of
any age group can open this account. In this customer can get ATM card free for the first
year and from the second year annual charge is required for its renew.

Women special Saving A/c

This account is specially opened for the women .In this account 25% discount is given for
safe deposit Vault and ATM card is free for the first year and annual charge is required
from second year to renew it.

Yuva Saving A/C

This account is opened with in the age group between 18to30. In this account there is
facility of mobile banking and ATM card which is free for the first year and annual
charge is required from second year to renew it.

Santati saving account

This account is opened below the age group of 18. In this free standing instruction facility
to debit parents account is there .There is the facility of mobile banking and ATM card
where it is free for the first year and renew charge is required from second year.
According to the banking act all the necessary document is required to open this account.
 23

Remittance Saving Account

People who go for foreign employment open this account. To open this account all the
process is same as normal account but it require document like work permit letter or visa
along with passport photo copy of a person who is going foreign country. It doesn't
charge money while sending money from other country. There is the facility of mobile
banking and ATM card where it is free for the first year and renew charge is required
from second year.

Senior Citizen Special Saving Account

People above 60 years can open this account. There is the facility of ATM card where it
is free for the first year and renew charge is required from second year.

Professional Saving Account

This account is opened for professional or employed people like nijamati karmachari,
police, army, teacher, private companies employee doctor, engineer and so on. There is
the facility of ATM card where it is free for the first year and renew charge is required
from second year.

Pension Payment saving Account

This account is opened for those people who are retired from the government offices.
This account is renewed every 6 months and person should be himself / herself available
in the bank. In this account Pension amount only can be debited but we cannot save
money in this account. There is the facility of ATM card where it is free for the first year
and renew charge is required from second year.
 24

Investor's Saving account

Nepalese Citizen having a share of any organization can open this account. Certificate
share of any organization or ownership of share as well as the normal document of
DMAT statement is required .Minimum Balance not required. Free Account Statement is
provided. Free NBL Mobile banking first year .Free Internet Banking first year. Debit
Card is Free for first year.

NBL Special saving Account

Nepalese Citizen 18 years and above can open this account. Minimum Balance of NPR
50000 is required. Free Account Statement is provided. Free NBL Mobile banking first
year. Free Internet Banking first year. Visa Electron Debit Card Free for first year .

Fixed Deposit Account

Costumer who have account in NBL can open the Fixed deposit account. Fixed Deposit
can be opened with a minimum balance of NRs. 25000. Time period for FD started from
3 months to 6 months, 1 year and so on. Penal interest is levied on withdrawal of FD
prior to maturity. Interest is payable quaterly. Tax is deducted at source from the interest
on saving deposit as per the Income Tax Act, 2058(2001). Nomination facility is
available. Strict confidentiality is assured.

Current Account

This account can be opened by sole proprietorship, companies , Partnership , co-

operatives , joint –venture and other institutions. Minimum balance of NPR.1000 only
required to deposit. No restriction on deposit or withdrawal of any amount. Easy
 25

operation through NBL online platforms like NBL Internet Banking, NBL Smart Mobile
Banking, Connect IPS etc.

Recurring Deposit Account

This account can only be opened by the natural person. This account is almost same as
fixed deposit, here the customer has to deposit certain amount monthly above Rs.1000.
the interest rate is same as fixed deposit . The time period is above 6 months to 10 year
.The interest rate will be same while opening this account if there is any fluctuations in
interest rate.

3.7.2 Loans/Advances

NBL offers a wide range of tailor-made funded and non-funded credit facilities to suit
funding requirements. Namely:

 Corporate Loans
 Retail/Consumer Loan

3.7.3 Remittance

 NBL web remit

 NBL remittance products
 Inward remittance
 Outward remittance

3.7.4 Other Services

 26

Mobile Banking

NBL Smart Mobile Banking provides convenient mechanism and quick access to
banking services for Nepal Bank customers from their mobile devices. The popular
services are balance inquiries, recent transaction details, e-recharges and bill payment to
utilities like Ncell, NTC, ADSL, NTC Landline, NTC postpaid mobile phone bills.

NBL Smart Features

 Account Information
 Account Statement-30 days
 Fund Transfer
 Alerts & Notifications
 Payments
 Information Services

ATM /Debit Card

Nepal Bank Limited has introduced its NBL VISA Debit Card by joining the hands with
Nepal Investment Bank Ltd (NIBL).
The VISA Debit Card of Nepal Bank allows its customers to access a vast network of
ATMs located in various points in Kathmandu and other major cities within Nepal
displaying the VISA logo on it.
NBL VISA Domestic Debit Card is also accepted in all VISA accepting ATMs in Nepal
and India Only. NBL VISA International Debit Card is accepted in VISA accepting
ATMs all over the world. Where as credit card are provided to the loyal customer only.

Safe Deposit Vault

"The Best Protection For your most Important Valuables"

Your valuables are safely stored in another location other than your home or business,
 27

the SAFEST PROTECTION from fire and theft. Nepal Bank Limited offer you safe
deposit vault to store items that would cause you to say "if I lose this, I'm in deep
trouble." This means important papers like insurance policies, family records such as
birth certificates, deeds, titles, mortgages, leases, contracts, bonds, certificates of deposit.

ABBS

Nepal bank is proud to announce that all 218 branches are enabled for ABB service. This
service is free of charge to our valuable customer. In this banking service, our customer
having account with NBL can access their account from any online NBL's branch.

3.8 Capital Structure of NBL

NBL was formed under principle of joint venture (Joint venture between government and
general public). Currently its capital structure consists of 51% government ownership,
49% public ownership . NBL’s authorized capital was Rs.15 billion and paid-up capital
was above Rs12 billion as shown in table below:

Particulars Percentage
Current year (Rs.)(2022)

Authorized Capital 15,000,000,000

Nepal Government 6,444,746,896 51%

Public Shareholder 6,192,011,728 49%

Paid –Up capital 12,636,758,624 100%

Table 3: Capital structure of NBL

 28

CHAPTER IV

ANALYSIS OF ACTIVITIES PERFORMED

As prescribed by the faculty of management, Mahendra Multiple Campus, the duration of

internship has been set 45 days. Most of the time internship period has been spent in
customer service department and also have been placed in pension and remittance
department.

4.1 Activities Performed in the Organization

4.1.1 Customer Service Department

For any banks are valuable assets .Keeping this in mind, NBL tries to give best to its
customers. This department is the sensitive part of a bank as it interacts directly with the
customers. People come for various enquiries about banks, its new services. Thus it
should be efficient, clean and effectively handled by the employees of the bank. This
department creates an impression of the bank towards its customers, better services, they
will come for the services again and we are a part of the bank. Here the internee carried
out the following activities:

 Counseling the customers.

 Interacting and communicating with existing and new clients.
 Opening of new account for the new clients.
 Making of cheque book and issue of cheque book to existing and new clients.
 Printing of financial statement for clients.
 Scanning of account holders photos and signatures.
 Checking account holders customer balance.
 Checking account holders photos and signatures.
 29

 Handling telephones.
 KYC update.
 TrustAML Update.
 Filling the forms for account opening of new clients.
 Filling the deposit voucher and cheque of the clients.

4.1.2 Customer counseling:

As we know that a bank performs well when their customers are satisfied. So, in this
department an internee tries provided by the bank to its new and existing customers. They
try to solve enquiries, questions and doubts the customers are having.

 Understanding the need of customer and determining the purpose of the visit.
 Forwarding the customer to the concerned department as per their need.
 Providing suggestion about the suitable deposit product for the customer.
 Making the suggestion about the suitable customer inform the benefits and
services available.
 Informing the customers about the minimum balance required and service
charge.
 Counseling about the various services provides by the banks and convincing
about the utility of such services.

4.1.3 Account opening

There are various kind of account opening facilities given by the bank like, saving a/c ,
current a/c, Women special saving a/c, Yuba Bachat Khata , Pension a/c, fixed saving,
diamond saving, Fixed a/c etc. and so on.

Here, an internee helps the customer by explaining about the types of services they need
like various types of service they need like various types of account opening facility,
 30

advantage behind the particulars account and encouraging them to take the mobile
banking and ATM service and fill up their forms who are unable to do so.

 Personal account

• Passport size photo 3

• Photocopy of citizenship/passport

• For KYC they should bring: voting id/ Laalpurja/ water or electricity bill/
driving id/ college id etc.

 Corporate Account

• Complete account opening firm, Passport size photos of signatories

• Company stamp

• Certificate of incorporation

• Tax registration certificate(PAN)

• Board resolution

• Memorandum of articles of association

The activities involved in account opening are highlighted below:

 Providing the account opening form along with the signature specimen card
 Verifying details in the account opening form by verbal queries with customer
 Cross matching details and forwarding the document for approval from the
supervisor.
 Opening the account in the system using ‘PUMORI’
 Requesting the customer to deposit the amount by filing up the deposit slip
 Photo and signature card scanning and entering into the software.
 And finally TAML Update
 31

Requirement to Open New Account

Customers are required to fulfill some basic requirement before they open their account.
Those requirements are mentioned below:

For Personal Account:

 Personal Identification ( Citizenship Certificate and 3 copies of photography)

 Nominee Declaration (If Any)
 Photocopy of receipt of payment bill of electricity or telephone or water or
voting ID or driving id , college id.

For Partnership Account

 Letter of Partnership duly signed by all partners

 Copy of the Partnership duly signed by all partners
 Copy of the Partnership Agreement
 Certified copy of Partnership Registration

Account of Corporate Bodies, Copy of:

 Memorandum and Articles of Association of the Company

 Resolution of Board of Directors to open and operate an account
 List of directors duly singed respective directors with home address and phone
numbers
 Certificate of commerce of commencement of business
 Certificate of PAN

For Minors

Guardianship to be verified with related documents:

Nominee Form

 Photocopy of citizenship and photo of the nominee

 32

 Signature of the nominee

 Personal Identification ( Citizenship Certificate)

For Clubs/Societies and Association

 Copy of Registration Certificate

 Copy of By- laws
 Copy of resolution to Open and operate the account
 List of members

For Partnership Account

 Certificate of Partnership Registration

 Copy of Partnership Deed, if any

For Proprietorship Account

 Registration Certificate
 Identification of Proprietors
 Pan number Certificate

4.1.4 Procedure of Account Opening

Whether it is the current account or saving account, it has followed certain procedure.
The procedures of both the accounts are moreover similar.

 Filling up of account opening form with the specimen/signature card and

KYC form.
 Verification of the form by checking whether each attribute required is
properly filled or not
 In the case of the current account, attributes are the name of the firm or
individual, PAN/VAT no, minute, the stamp of the firm, etc.
 33

 In the case of saving account, attributes are the name of the individual,
citizenship no or license no etc.
 Verification of the form and the documents by the senior authority.
 Type all the information into customer information DB and we get client
code.
 Obtain the account number starting with (004)
 Generation of the account number by the system
 Communication of account number to the customers
 Filling deposit slip of balance required
 Record in the ledger book with required details
 And enter the all information in Trust AML.

4.1.5 Account Closing

The activities involved in account closing are described below:

 Asking the customer about the reason for closing account and convincing the
customer not to close account as far possible by suggesting the alternative services
available
 If the customer as far as possible by suggesting the alternative services available
 If the customer is willing to close his account, then providing the account closing
form and getting it cleared form all the department ‘without any objection’
 Informing the customer about the charge levied
 Collecting the belonging-related to account i.e cheque book, ATM card, pass book if
any
 Finally, the account is closed by handling the cash to the customer after debiting the
account closing charge.
 34

4.1.6 Statement printing and issuance

Statement includes the information like day to day transaction amount, balance, interest
charge etc. it is free of cost. It is a frequent and regular activity done in the bank with the
help of software given by the authority. Statement issuing is done in the concerned bank
only where an account holder has opened an account. For that customer should provide
their related account number.

4.1.7 Balance inquiry, scanning and photocopy

An internee was also allowed to check the balance asked by the customer under the
supervisor’s authority. An internee also learned to scan the forms before keeping the
records of new account holder or filing them along with some other important documents.
Similarly, photo copy was to be done frequently in the department, to provide ease to the
customer. Internee also learned how to contact with the customers through telephone.

4.2 Remittance Department

Remittance can be defined as the transfer of money from one place to another that may be
from bank to bank or from country to country. The department of remittance deals with
the management of the remitted money, which is sent by the migrant workers from
abroad or within the country as well. Nepal Bank receives remittance through swift code.
NBL is the pioneer in the field of retail money transfer business with over 11years of
customized services delivery experience in the field. It has the largest network covering
all major cities, towns and villages of the country and is capable of paying at more than
200 locations across Nepal. The bank enjoys the strategic with the lending remittance
companies like express Money, Money Gram, I-Pay, Western remittance, Prabhu , IME
etc. In this department, the internee learned the following task:

a) Observed remittance payment by using remittance transaction Id.

b) Observed in preparing demand draft and fund transfer.
 35

c) Learned to keep records of various drafts.

4.3 Clearing Department

In this department customers bring checks of different bank and they fill a voucher to
credit their account by the amount specified in the check and by debiting the amount in
the check of the specific bank. After receiving different checks they are given the specific
OBC number and recorded in the register and later they are recorded in the computers
.This is send to the Nepal Clearing House, it receives its check and then prepare debiting
and crediting the amount and the balance of different banks on the basis of advice. If the
checks are dishonored then they are returned to the NBL by 3:00 PM in the evening of
same day. It is done in two way i.e by Express and Normal session.

4.4 Letter of credit

Letter of Credit means a party of a country wants to do trade with the other party or
organization of the other country and they cannot trust each other that one party will pay
the amount for the goods and the other party will send the appropriate goods after
receiving the advance payment for the goods. So both the parties contact the Banks of
their own country and both the Banks guarantee for their party. Beneficiary party sends
the Performa invoice to the applicant party and by taking the invoice the applicant goes to
the Bank and on behalf of the invoice the Bank opens the L/C for the applicant party. L/C
can be opened of Import or of Export by the company.L/C can be opened under Limit or
can be opened by paying the 100% amount mentioned in the Performa Invoice to the
Bank. After opening L/C the insurance of the goods should be done and the insurance can
be done by the applicant or by the beneficiary under mutual understanding of both
parties. So NBL provide the facility of Letter of credit to its customer.
 36

4.5 Problem Faced During Internship

While carrying out the task assigned by the supervisor, the internee faced different types
of problems. They are as follows:

 Some of the customer disagrees to accept the charges for account closing and
make argument on this matter for long time. So, it becomes difficult to convince
them about the bank’s charges.
 Though the instructions and required documents are clearly explained in the
account opening form, even then customers ask those for time to time and
reasons for extra documents that are already sated in back side of the form. So, it
is tough to give them each and every guideline on filling different types of form
as well.
 The accountholder’s relatives ask for the cheque book without bringing the letter
of authority and citizenship with accountholder’s valid signature and account
number.
 When the customers lost their cheque book and request for new one, in this case it
is difficult to find out all the used and unused cheque, valid signature and account
number from their record on the computer carefully.
 Failure to remember the reference number on the remittance services such as
Money gram or Express money or Cash instant as the customer presented the
form of different reference number.
 Sometime customers come to take the money but bank unable to give the payment
due to delay of information in the bank website.

4.6 Intern’s Key Observation

During our working period we came to know the following things through our
observation:

 Transforming the academic bookish knowledge into the practical knowledge and to
understand how to concepts and theories are applied in the real working environment.
 Learning professional attitude and learning the value of time.
 37

 Courtesy that we have to maintain during the work time.

 The way we have to deal with consumer and the patience to deal with the aggressive
customer.
 The difficult situation that we have to face during the working.
 The team work that is needed in order to accomplish the task.
 Cooperation and mutual understanding to each other.
 38

CHAPTER V

CONCLUION AND LESSION LEARNT

5.1 Conclusion

NBL begins the history of formal banking in the country and has been contributing in
national development. During the eighty five years of functioning NBL has gone through
various ups and downs, it has always contributed in the national growth with its activities.
NBL services reach the extreme of the country to facilities its customer and build the
trust of individual and business houses for the commercial banking industry. NBL
facilities and product prove themselves to be commendable from the above analysis. The
financial position explained its profitability and market coverage which is appreciable for
a bank with the history of some disastrous years. The recovery of the bank in term of its
financial position. Its adaptation to technological advancement and customer trust that the
bank has enormous opportunity and new height to achieve.

Intern at NBL experienced a great deal of corporate cultures in a friendly environment.

Intern was involved in various departments gather practical experience about the
functioning of those departments and the bank as a whole. This internship favored to get
the practical acquaintance of the bank and overall operation system. Learning under those
experienced heads made the internee’s work easy and internee was able to develop and
represent as a member of the bank rather than just an intern.

Intern observed the various activities done at CSD that aid in the development of
internee’s interpersonal and communication skills. Placement at various departments
made to be familiarized with overall activities; risk associated with the activities and the
matter that needed a close monitoring in those departments. Working here made the
intern experienced the pressure during the time of handling cash and dealing the
customers crowd; also made the internee aware about the critical aspects of making
payment, counting cash, checking authorized signature etc. experience has completed the
 39

knowledge of overall banking operation as intern analyzed the financial position of the
branch, its income-expenses and observed the activities of auditors and the information
desired for auditing.

While concluding this report, the internee is intensely satisfied with the internship and its
outcome. This experience will not only be beneficial today but also when the internee
should work in the real life.

5.2 Lessons Learnt

The duration of internship lasted for around 112 days and during the course of the
internship there were various lessons that intern was able to learn. This internship was a
great opportunity for an intern to face real-life work scenarios after four years in the
classroom, and is must be said that it was a great learning experience. Some of the learnt
during this time at NBL could be summarized as follows:

5.2.1 Knowledge Based Learning

 Learnt the process of opening and closing account, issuing cheques, issuing bank
statement dealing with customers at CSD
 Learnt the function of remittance department and the process of carrying out various
remittance products like web remit, draft, scheduling etc.
 Learnt about the importance of CSD in the bank and its various activities i.e cheque
printing and distribution, dealing with customers etc.
 Learnt and experience the risk associated with handling PUMORI at the CSD and
understood the degree of patience and concentration need while working in the teller.

5.2.2 Skill-Based Learning

 Learnt how to operate banking system, i.e PUMORI

 40

 Learnt the overall banking operation in various departments like, CSD, Remittance
Department.
 Learnt to use theoretical knowledge in practical working environment.
 Learnt how to use printer, Cheque printer , scanning machine etc.

5.2.3 Behavioral Based Learning

 Learnt to handle customer visiting in the banks with different temperament, moods
and queries.
 Learnt the importance of time management and developed interpersonal and
communication skills.
 Learnt the importance of correlation among the various banking operation for the
overall profitability of the bank.

After the preparation of this report and experience gathered during the internship,
internee has been able to understand the banking operation to some extent. Lessons learnt
during internship period will be of great help while the internee starts his/ her career in
the financial sectors of any economy.

5.3 Human Resources Relationship and Organizational Environment

There is cooperation and coordination between the employees within each department .
There is friendly environment among the staffs and the supervisors. There is two way
communication, staffs are free to give the suggestions and advices .There is no hierarchy
within the department, each department work as a team. The environment is very friendly
and I felt comfortable working there. They never let me feel that I was just an intern
which helped me to make good relationship and great bonding with them.
 REFERENCE

Avadhani, V. A. (2009). Treasury Management In India, Himalayan Publishing Houns.

Capital Restructuring Plan: Current Capital Structure (September 2009). Karobar
National Daily.

Hamal, P. (2015). Customer Service Department Civil Bank Limited. Unpublished BBA
Internship Report, Faculty of Management, JMC, TU

Kandel & Katiwada. (2072). RastriyaBanijya Bank Junior Assitant Guide, Pinacle
Publication, Pvt. Ltd.

Manandhar, K.D. & Pokhrel, S.B. (2009). Marketing Financial [Link]:

Asmita Books Publishers & Distributors (P) Ltd.
Peter. S. (1999). Commercial Bank Management, McGraw-Hill

Singh, H.B. (2007). Banking and Insurance (Revised fourth edition). Kathmandu: Asmita
Publication.

Singh, H.B. (2009). Banking and Insurance (Reused and update). Kathmandu: Asmita
Publication.
Websites:
[Link]

[Link]

[Link]

[Link]
 ANNEXES

AnnexI: Organizational structure of NBL at Nepalgunj city office branch

Branch Manager

Assistant Branch Manager

Operational Loan GSD

department Department Department

Cash Remittance CSD

Annex II: Branches of Nepal Bank Limited

Provinces wise branches Number of branches

Province 1 38
Province 2 35
Province 3 59
Province 4 28
Province 5 34
Province 6 12
Province 7 12
Total 218