AN INTERNSHIP REPORT ON CUSTOMER SERVICE

DEPARTMENT (CSD) OF
NIC ASIA Bank,
Sundarijal, Branch

Submitted By:

Pranish Manandhar

TU Roll No: 7818/20

TU Reg. No: 7-2-725-109-2020

The Times International College

Dillibazar, Kathmandu, Nepal

An Internship Report

Submitted To:

Anil Kafle

Faculty of Management

Tribhuvan University(TU)

Kathmandu

In partial fulfillment of the Requirements for the Degree of

Bachelor of Business Management

(BBM)

Kathmandu, Nepal

April, 2025
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DECLARATION

This is to certify that I have completed the internship report entitled “An Internship
Report on CSD of NIC ASIA Bank” under the guidance of Anil Kafle in partial
fulfillment of the requirements for the degree of Bachelor of Business Management at
Faculty of Management, Tribhuvan University. This is my original work, and I have not
submitted it earlier elsewhere.

Pranish Manandhar

Exam Roll No.: 7818/20

TU registration no: 7-2-725-109-2020

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INTERNSHIP CERTIFICATE
 iv

SUPERVISOR’S RECOMMENDATION

This is to certify that the internship report entitled “An Internship Report on CSD of NIC
ASIA Bank” is an academic work done by “Pranish Manandhar” submitted in the
partial fulfillment of the requirements for the degree of Bachelor of Business
Management at Faculty of Management, Tribhuvan University under my guidance and
supervision. To the best of my knowledge, the information presented by him/her in the
internship report has not been submitted earlier.

______________________
Signature of the Supervisor
Anil Kafle
The Times International College
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APPROVAL SHEET

This is to certify the Internship Report

Submitted By:

PRANISH MANANDHAR

Entitled
An Internship Report on CSD of NIC ASIA Bank

We certify that we have read this document and, in our opinion, it is satisfactory in scope
and quality area as an internship report in partial fulfillment for the undergraduate course,
Bachelors of Business Management (BBM) held at The Times International College
affiliated under Tribhuvan University (TU).

………………………………….. …………………………………..
Anil Kafle Kamal Raj Bhattarai
Supervisor Program Director

………………………………. ………………………………….
Daya Ram Neupane
Principal External Examiner
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ACKNOWLEDGEMENT

The internship opportunity I had with NIC ASIA Bank was a great chance for learning
and professional development. Therefore, I consider myself very lucky for having a
chance to meet so many wonderful people and professionals who led me through this
internship period.

First of all, I would like to thank Tribhuvan University and The Times International
College of Management for designing the course of internship. This program of eight
weeks has helped in understanding the organizational culture and practical implications of
studies at workplace.

I would like to extend my thanks to the staff of NIC ASIA Bank for the support and co-
operation extended to me. I perceive this opportunity as a big milestone in my career
development.

Then, I would like to express my deep sense of thanks and gratitude to Mr. Anil Kafle,
Internship Report Supervisor, for his guidance, valuable advice, continuous
encouragement, and motivational support that made this project possible and also to all
my friends who helped me in the final completion of this report.

Pranish Manandhar
2025
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EXECUTIVE SUMMARY

Internship is the special feature of BBM course. The students of BBM are required to
undergo internship program for a period of eight weeks, during the eighth semester. An
internee perform eight weeks of internship program at NIC ASIA Bank, Sundarijal
Branch. Here activities were focused specially to learn about activities of Customer
Service Department. The major objective is to acquire learning as well as working
experience and gain practical exposure in the real-life working situation. During
internship period, intern was placed at CSD of NIC ASIA Bank and got an opportunity to
learn various activities performed by those departments. The study is intended to portray
the learning of student from the 8 weeks intern program. This study can be highly
beneficial for other students who will be participating in the internship programs in
coming days.

After gaining academic knowledge and classroom experience for so many years this was
the first time that interne got to work in the real world. This work experience thought of a
short span has taught so many new things like relating theoretical knowledge with
practical one, promoting degree of self-confidence and self-dependence.

Internee developed sense of responsibility towards work. Internee also developed habit of
being regular and punctual. The internship program made realize the importance of the
time better and how to prioritize the work. Internee learnt how to serve customers in
polite manner to satisfy their needs. Internee came to know to be patient and well-
disciplined and serves customers with smile.
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TABLE OF CONTENTS
DECLARATION ii
INTERNSHIP CERTIFICATE..........................................................................................iii
SUPERVISOR’S RECOMMENDATION.........................................................................iv
APPROVAL SHEET...........................................................................................................v
ACKNOWLEDGEMENT..................................................................................................vi
EXECUTIVE SUMMARY...............................................................................................vii
TABLE OF CONTENTS.................................................................................................viii
LIST OF TABLES...............................................................................................................x
LIST OF FIGURES...........................................................................................................xi
ABBREVIATIONS...........................................................................................................xii
CHAPTER I.........................................................................................................................1
INTRODUCTION...............................................................................................................1
1.1 Background................................................................................................................1
1.2 Objectives..................................................................................................................1
1.3 Methodology..............................................................................................................2
1.4 Limitation of the Study..............................................................................................3
CHAPTER II........................................................................................................................5
INTRODUCTION OF BANKING INDUSTRY....................................................................5
2.1 Introduction of Banking Industry...........................................................................................5
2.2 Meaning and definitions of banks..........................................................................................6
2.3 Evolution and growth of banks in Nepal................................................................................7
2.4 Types of banks........................................................................................................................8
2.5 Introduction of Commercial Bank..........................................................................................8
CHAPTER III.....................................................................................................................11
INTRODUCTION OF THE NIC ASIA BANK...................................................................11
3.1 Background...........................................................................................................................11
3.2 Vision and Mission...............................................................................................................11
3.3 Objectives.............................................................................................................................11
3.4 Core Values of NIC ASIA....................................................................................................12
3.5 Product and Services............................................................................................................12
3.5.1 Deposit.........................................................................................................................................12
3.5.2 Loan Services...............................................................................................................................13
3.5.3 Other Services..............................................................................................................................13
3.6 NIC ASIA Management Team:............................................................................................15
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3.7 Organizational Structure:......................................................................................................15

............................................................................................................................................16
CHAPTER IV....................................................................................................................17
ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVING..............................17
4.1 Background...........................................................................................................................17
4.2 Activities Performed in Customer Service Department.......................................................17
4.2.1 Account Opening.........................................................................................................................17
4.2.2 Customer Counseling and Receiving Telephone Call.................................................................18
4.2.3 Issuance of Cheque Book.............................................................................................................18
4.2.4 Statement Print.............................................................................................................................18
4.2.5 Card Issuance...............................................................................................................................18
4.2.6 Online Deposit Voucher...............................................................................................................19
4.3 Problem solved.....................................................................................................................19
4.4 Observed Gaps......................................................................................................................20
CHAPTER IV....................................................................................................................21
CONCLUSION, LESSON LEARNT................................................................................21
5.1 Conclusion............................................................................................................................21
5.2 Lesson Learnt.......................................................................................................................22
REFERENCES..................................................................................................................23
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LIST OF TABLES

Table 1.1 Placement and Duration of Internship.................................................................3

Table 2.1 Types of bank along with their minimum paid up capital requirement and their

total numbers.......................................................................................................8
Table 3.1 NIC ASIA Management Team..........................................................................15
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LIST OF FIGURES

Figure 3. 1 Organizational Structure of NIC ASIA, Sundarijal Branch............................16

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ABBREVIATIONS

· ABBS: Any Branch Banking System

· ATM: Automated Teller Machine

· BAFIA: Bank and Financial Act

· BBM: Bachelor of Business Management

· CSD: Customer Service Department

· CV: Curriculum Vitae

· E-banking: Electronic Banking

· FD: Fixed Deposit

· FOM: Faculty of Management

· IPS: Interbank Payment System

· KTM: Kathmandu

· KYC: Know Your Customer

· NIDC: Nepal Industrial Development Corporation

· NRB: Nepal Rastra Bank

· RTGS: Real Time Gross Settlement System

· SMS: Short Messaging Service

· SWIFT: Society for Worldwide Interbank Financial Telecommunication

· TU: Tribhuvan University

· UK: United Kingdom

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CHAPTER I
INTRODUCTION

1.1 Background
The present world is a global business world. Depending on theoretical knowledge is not
enough now days. Having the ability to solve the problem is very important. Internship
programs are conducted for this purpose.

Tribhuvan University is the pioneer university in providing management education in

Nepal. This university is the oldest university in Nepal, since its establishment; it has
been providing excellent education to the students. Bachelor’s in business management
(BBM) program was introduced with an objective to develop socially responsive, creative
and producing middle level managerial professionals. This course is designed in such a
way that the students get to know a real business situation in this global business
environment.

The BBM program of TU is a 4 yrs course with 120 credits for the graduating students. It
provides specialized courses in finance and marketing. The internship program is placed
in such that the students have fresh experience of related specialization area. 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 real business
practices. This program also helps to know how the organization as a whole operates and
how communication takes place and activities are coordinated in the corporate world.

I accomplished this internship program at NIC ASIA Bank, Sundarijal Branch,

Kathmandu. The internship generally takes place for eight weeks where every student
should go to any industry relating to their specialized subject to practically imply
theoretical knowledge in the real workplace. The report is generated on the basis of the
experience of an eight weeks internship at NIC ASIA Bank.
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1.2 Objectives
The internship program is undertaken for the partial fulfillment of the requirements for
the degree of Bachelor’s in Business Management (BBM). The major objectives of this
report are as follows:
i. To apply theoretical knowledge practically on real working environment.
ii. To gain knowledge about communication and interpersonal skills.
iii. To know behavior of customer and employees in the bank.
iv. To know the operating procedure of different departments.

1.3 Methodology
Methodology refers to the various sequential steps adopted in study. It is followed by
using primary and secondary data, information from research work and report
preparation. Various data were collected by observation, making inquiries with concerned
staffs, quantitative data collected from past records and self-involvement.

1.3.1 Organization Selection

As a student of BBM, having specialization in finance, the best option is to choose
banking sector where intern could convert their theoretical knowledge into practical one. I
choose NIC ASIA Bank due to its nature of business, reputation, the co-operative culture
of staff members. NIC ASIA is a bank having a strong presence in the market and
providing as excellent banking service to the customers. The college provided a
recommendation letter along with Curriculum Vitae(CV) and photos were presented at
the head office of the (NIC ASIA). I approached the bank and I was called to join the
bank from 17th Dec 2024.

1.3.2 Placement in the Organization

During eight weeks of internship at NIC ASIA Bank, my intern was placed in customer
service department of bank under the supervision of Mrs. Bandana Kunwar. Intern was
placed in Customer Service Department so that intern could have the overall knowledge
of the banking operations. They treated the intern as an employee of the bank rather than
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an intern. The intern learned how to open accounts, check account balances, issue
cheques, get bank statements and do other tasks related to the department.

1.3.3 Duration of Internship

The duration of internship period has been defined for minimum 8 weeks by Faculty of
Management. As per the requirement, the internship was carried out from 2024/12/17 to
2025/02/17 in Customer Service Department of NIC ASIA Bank, Sundarijal. Thus, the
internship was completed for eight weeks, Sunday through Thursday, from 10:30 a.m. to
5 p.m., in order to meet this requirement. Regarding Friday, internship hours were from
10:30 a.m. to 2:00 p.m.
Table 1.1 Placement and Duration of Internship

Name of Department Weeks

Customer Service Department 1-8 Weeks

1.3.4 Activities Performed

Intern was assigned to perform the bank’s day to day activities in regular working hours
and spend eight weeks. The intern had performed following activities during the entire
internship period:
i. Balance checking and signature verification
ii. Opening the new accounts
iii. Advising customer about KYC form and their queries
iv. Entering the records in register
v. KYC update of customers.
vi. Customer Account’s statement printing
vii. Distributing the cheque books and the Debit cards
viii. To provide form and assist in filling them like Account Opening form (personal
account, joint account, fixed deposit account), KYC Form, ATM Application
Form
ix. Performing the other task like photocopying, scanning, stamping, register
maintaining of (account opening, closing, cheques, SMS and internet banking,
remittance form)
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1.4 Limitation of the Study

The internship opportunity provided by the bank was a great achievement but there were
few limitations which restricted the study and they are as follows:
I. Lack of adequate time to learn, complete and detailed work in just eight weeks.
II. The bank's policy on keeping some matters confidential prevented us from
analyzing different activities.
III. The placement was done only in the customer service department, government
transaction and clearing department. Thus, this report doesn’t represent the whole
activity of the bank.
IV. The information was mainly obtained from discussion and interaction made with
staffs in the bank.
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CHAPTER II
INTRODUCTION OF BANKING
INDUSTRY

2.1 Introduction of Banking Industry

A bank is a financial intermediary that accepts deposits and channels those deposits into
lending activities, either directly by loaning or indirectly through capital market. It deals
with money and credit. It accepts deposit from the public and makes the funds available
to those who needs and helps in the remittance of money from one place to another. In
other words, banks collect the surplus funds from savers who are widely scattered. The
money so collected is channelized to the people who need it. The benefit that the surplus
unit gets by depositing their access fund in the bank and the charge that the deficit unit
pays for using the fund of the bank are both expressed in percentage and that rate is
known as the interest rate. The difference between the lending interest rate and borrowing
interest rate is called interest spread and this spread is the major source of income of any
bank.
The definition given by different authors:

According to G. Crowther(1995), “A bank collects money from those who have it to

spare or who are saving it out of their incomes, and it lend this money to those who
require it.”

According to the Oxford English Dictionary, “Bank is an establishment for the custody of
money received from or on behalf of its customers its essential duty is to pay their draft
on it, its profit arises from its use of the money left unemployed by them.”
According to Nepal Rastra Bank Act (2002), “Bank is a financial institution, which
provides financial services that may be in the form of accepting deposits, advancing loan,
providing necessary technical advices, dealing over foreign currencies, remitting funds,
etc.”

According to BAFIA (2063) “Bank means a corporate body incorporated to carry on

financial transactions as referred by law.”
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From the above definition it can be concluded that banks help in money growth and
capital formation. They are reservoirs of resources for economic growth and development
of the nation. They help in building the infrastructure, boosting the agriculture, setting up
industries and aid to industries capacity of the nation and boost the pace of economic
growth.

2.2 Meaning and definitions of banks

The term bank is derived from the Latin word ‘Bancus’, Italian word ‘Banca’ and French
word ‘Banque’ all of which mean ‘Bench’. At ancient times there used to be some money
lenders who sat in the bench for keeping, lending, and exchanging of money in the market
place. That was the origin of commercial bank. Commercial bank origin can hence be
traced back to the early times of human history. As early as 2000 BC some people had
developed a system of banking in Babylonia. In ancient Greece and Rome, the practice of
granting credit was widely prevalent. At the same time, some rich people used to practice
storing of precious metals and coins at safe places and loaning out money for public and
private purposes on interest.

The bank of Venice, established in Venice, Italy in 1157 A.D. is supposed to be the first
ancient bank. Subsequently, Bank of Barcelona (1401) and Bank of Geneva (1407), Bank
of Amsterdam (1607) and the bank of Hamburg (1619) were established. The ‘Bank of
England’, first English bank, was established in 1964 A.D. After the establishment of this
first English Bank, banking sector had experienced various ups and downs but still they
persisted and because of that persistence they are now able to exist in this 21st century
world as one of the essential element of human life.

Modern banking has three ancestors. They are merchants, goldsmiths and moneylenders
(G. Crowther). It was the ‘merchant banker’ who first evolved the system of banking by
trading in commodities than money. The next stage in the growth of banking was the
goldsmith. The business of goldsmith was such that he had to take special precautions
against theft of gold and jewellery. The next step in the development of banking arouse
when the goldsmith became the money lender. The goldsmith found that on an average
the withdrawals of coins were much less than the deposits with him. So he started
advancing the coins on loan by charging interest . In this way the system of fraction
 7

reserve banking was born. Thus goldsmiths become a banker. They started to perform the
two major functions of a bank:
➢ Receiving the deposits.
➢ Advancing loan

2.3 Evolution and growth of banks in Nepal

Banking service is the oldest service industry in Nepal. It has gone through the various
stages of evolution and development since the Vedic times (200 to 1400 B.C.). Even now
the financial system is still in the evolutionary phase. During the time of King Prithvi
Narayan Shah, “Kausi Toshi Khana” was established as banking agency. During the
Tenure of Prime Minister Ranoddip Singh, “Tejarath Adda” was established in 1933B.S.
(1876A.D.) was the first steps toward the institutional development of banking in Nepal.
Tejarath provide credit loan to the people at 5% rate of interest against security of gold,
silver and ornaments. Later Tejarath was replaced by the first commercial bank, Nepal
Bank Limited was established 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. 892 thousand. Until mid-1940s, only metallic coins were used as medium of
exchange. So the Nepal Government (His Majesty Government on that time) felt the need
of separate institution or body to issue national currencies and promote financial
organization in the country.

Then Nepal Rastra Bank was established on 14 th Baishak 2013 B.S. as the central bank
under Nepal Rastra Bank Act 2012 B.S. Nepal Rastra Bank makes various guidelines for
the banking sector of the country. It gathers savings from all over the country and
provides liquidity for industry and trade. In 2013B.S. Industrial Development Bank was
established to promote the industrialization in Nepal, which was later converted into
Nepal Industrial Development Corporation (NIDC) in 2016B.S.

Rastriya Banijya Bank was established in 2022B.S. as the second commercial bank of
Nepal. The financial shapes for these two commercial banks have a tremendous impact on
the economy. That is the reason why these banks still exist in spite of their bad position.
As the agriculture is the basic occupation of major Nepalese, the development of this
sector plays in the prime role in the economy. So, separate Agricultural Development
Bank was established in 2024B.S. This is the first institution in agricultural financing.
 8

The banking industry took a major turn in the year 2041 B.S when the government
allowed for the foreign investment in the banking sector. Nabil Bank is the first joint
venture bank as Nepal Arab Bank and the introduction of other foreign banks such as
Nepal Indosuez Bank and Nepal Grindlays.

2.4 Types of banks

A modern banking system demands different types of banking services. So to fulfill all
the functions demanded by the customers, different types of banks emerges in the banking
industry specializing in different functional areas and with different purposes. For the
purpose of regulation and controlled NRB had divided the depository financial
institutions into four classes as class A, Class B, Class C and Class D on the basis of
minimum paid up capital requirement and functions. This classification is unique feature
of Nepalese banking industry only and there is no such classification globally. Different
classes are classified on the basis of capital requirement for their establishment.
Table 2.1 Types of bank along with their minimum paid up capital requirement and
their total numbers

BFIs Class Total National Level

Commercial Bank A 20 8 billion

Development Bank B 17 2.5 billion

Finance Company C 17 800 million

Microfinance Company D 52 100 million

Source : [Link]

Since the interne had completed the internship in one of the commercial bank of Nepal,
the analysis is specifically focused on the “A” category depository institution that is the
Commercial Bank.

2.5 Introduction of Commercial Bank

A commercial bank is a type of bank that provides services such as accepting deposits,
making business loans, and offering basic investment products that is operated as a
business for profit. They have the widest range of activities and they provide a large
amount of the money supply. They perform several functions as various types of deposit
 9

facilities like the current, saving and fixed deposit; safety of public money, remittance of
money, letter of credit, loans, locker facility, foreign exchange, serving as an agent of its
clients etc.

Commercial bank is a profit-oriented organization that gives a certain rate of interest to

the depositors and take certain rate of interest from debtors. According to the Commercial
Bank Act 2031 B.S., “A commercial bank means a bank which operates relating to
commerce expect the banks which have been specified for the co-operative, agricultural,
industry of similar other specific objective.” Nepal Bank Limited is the first commercial
bank of Nepal which was established on 30th Kartik 1994 B.S. It is a semi government
bank. The main function of the commercial bank simply is “to borrow, to lend”. Besides,
there are other functions which have been developed according to the needs of the society
as;

i. Accepting deposit
It is the primary function of the commercial banks. They accept deposits with or

without interest. They refund such deposit on due demand of their customer from
counter or any other means of payment like ATM, Electronic transfer etc.

ii. Providing loan

This is another fundamental function of commercial banks where they provide
loan
to individuals based on various rules, regulations, direction and policies
prescribed
by the NRB. A bank supply credit to individuals on different purposive headings
like Home Loans, Auto Loans, Business Loans, Term loan etc.

iii. Capital mobilization

Commercial banks shall mobilize capital through shares, debentures, bond or
other financial institutions within the limit prescribed by NRB.

iv. Dealing with foreign exchange

Commercial banks can also deal with international trade. They can buy and sell the

foreign currencies subject to law in force. They can transact with foreign banks in
 10

foreign currencies. There may exist risk of foreign exchange rate fluctuation
however banks managing and holding the foreign currencies properly shall make a
good profit out of it.

v. Acting as agent
Banks shall act as an agent of the Rastra Bank on the conditions prescribed by the
Rastra Bank and carrying on governmental and other transactions on behalf of the
Government of Nepal.

vi. Arranging deposit vault

Commercial banks have separate fully insured fireproof safe deposit vault for
keeping the cash, gold, slivers, shares and debentures and other legal securities.

vii. Transfer of money

Banks act as a bridge to move money from one account to another, locally or
internationally. Banks helps customer to send money safely and quickly through
cheques, demand drafts, online transfer (RTGS, IPS).

viii. Providing information

Banks help customers stay informed to manage their money better and make smart
financial decisions. It provides information regarding new financial products and
use of banking service.

ix. Remittance of fund

Banks make it easy and safe for people to send and receive money, even across
countries. People who live long distance can easily send money through
remittance like wire transfer.
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CHAPTER III
INTRODUCTION OF THE NIC ASIA
BANK

3.1 Background

NIC ASIA Bank has its antecedents in 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 the
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 in Nepal.

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 360 branches, 117 extension counters, 42 branchless
banking, and 670 ATMs across Nepal with a network covering all major financial centers
of the country.
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3.2 Vision and Mission

Vision
To ensure the creation of optimum values for all the stakeholders.
Mission
To be a bank of 1st choice for all the stakeholders.

3.3 Objectives
I. Focus on providing innovative financial services.
II. Increase in capital base of the Bank by meeting the minimum capital requirement.
III. Business growth and increase in market share.
IV. Enhance operational efficiency.
V. Sustainable increase in profits.
VI. Focus on empowerment of deprived class.

3.4 Core Values of NIC ASIA

· Meritocracy
· Transparency
· Professionalism
· Team Spirit
· Service Excellence

3.5 Product and Services

Product of the organization refers to the goods and services that the organization is
facilitating to the customers. They are created by firms and are consume by the ultimate
customers. NIC ASIA Bank is providing several products and services to be a leading
organization in today’s overheated market. The overall products and services are
classified as follows:

3.5.1 Deposit
A deposit is the act of placing cash (or cash equivalents) with some entity, most
commonly with a financial institution such as a bank. Deposits are the raw material for
bank loan and thus represent the ultimate source of bank profits and growth. They accept
deposits in different headings and in different schemes. The different types of deposit are:
 13

Saving Account
Saving Accounts are suitable for inculcating the habit of saving among customers. The
interest is calculated in daily basis and compounded in quarterly basis. Customers get
cheque books and Visa card for maintaining saving account in NIC ASIA Bank. Saving
accounts can be opened in the name of Individuals (single or jointly), Minors (children
aged below 18 years) and other non-profit organizations. NIC ASIA Bank offers several
types of saving schemes:
· Sathi Bachat Khata
· Sarbashrestha Remittance Bachat Khata
· Sarbashrestha Sunya Maujat Khata

Current Account
The depositors of such account can withdraw and deposit money when-ever they desire.
Since banks have to keep the deposited amount of such accounts in cash always, they
carry either no interest or very low rate of interest. These deposits are called as Demand
Deposits because these can be demanded or withdrawn by the depositors at any time they
want. These accounts are generally opened by business firm.

Fixed Account
A fixed account also known as time account. These are the deposits which are deposited
for a definite period of time. These deposits cannot be withdrawn before the expiry of the
stipulated time. Banks pay higher interest rate on fixed account.

3.5.2 Loan Services

Loans are the most profitable assets of the banks. NIC ASIA Bank also provides variety
of credits to the customer. The amounts of loan, the amount of interest, the repayment
date, qualification of loan recipient to merit the loan, the credit analysis are all variable.
Different kinds of credit facility by NIC ASIA Bank are as follows:

Business Loan
The business loan provides finance to support or expand the existing business and also to
start up the new business. NIC ASIA Bank provides full range of banking solution to
meet the financing needs. Business loan can be further classified as funded loan
(overdraft loan, term loan, hire purchase loan etc.) and non-funded loan (letter of credit,
bank guarantee, bid bond etc).
 14

Retail Loan
NIC ASIA provides the retail loan to meet the personal needs of the customers or
individual. It includes housing loan, vehicle loan, apartment loan, educational loan,
agriculture loan and many others.

3.5.3 Other Services

 ATM and Debit Card Service
The branch provides the ATM facility to its account holders. Bank has launched Debit
Card Service for all branches within Kathmandu valley and the service has been
extending to other branches out of Kathmandu valley. Visa debit cards with PIN
(Personal Identification Number) are issued to customers to enable 24-hour ATM facility.
The basic function of ATM is drawing cash, dispensing cash enquiring balance in the
accounts, and printing of statement.

 SMS Banking and E-banking

SMS Banking and E-banking service is another facility provided by the branch to its
customers. Under this arrangement customer can know the balance of their account
through SMS without human assistance. E-banking that has made balance and statement
enquiry possible from homes. With just the click of the mouse the customers can track
their account from anywhere in the world. All branch offices from within and outside
KTM valley are providing this service. NIC ASIA Bank has provided a new service in
mobile banking from where we can withdraw money from ATM machine without ATM
card and also we can fill up online deposit voucher.

 Any Branch Banking Service (ABBS)

NIC ASIA Bank has been providing ABBS to all branches across the country to help the
customers get the amount from anywhere and any place within Nepal. Through this
service a customer can easily deposit and withdraw his/her money, print cheque book and
can get all the service for any branch.

 Remittance
A remittance is a transfer of money, often by a foreign worker to an individual in their
home country. NIC ASIA Bank has operated online web based remittance system, where
by money can be sent to Nepal from Worldwide. Remittance can be made to any part of
the world by way of SWIFT Transfer instantly in addition to the conventional facilities
 15

like demand drafts, Travelers’ cheques etc.

 Locker Service
Locker Facility is the service provided by the bank to the customer for the protection of
their valuable things as jewelry and their important documents. There are different
lockers according to the size. Every size of locker has its own cost.

 Clearing Service
Clearing service is for the customers who receive the cheque of other bank. If the
customer receives the cheque of Nabil bank and want to deposit that amount in their own
account of NIC ASIA, then that cheque will goes clearing. If there is any mistake in that
cheque then it will be return back to the customer or can again represent for process.

3.6 NIC ASIA Management Team:

Some management teams of NIC ASIA are:

Table 3.1 NIC ASIA Management Team

Roshan Kumar Neupane Chief Executive Officer Management

Santosh Kumar Rathi Deputy CEO Management

Rajesh Rawal Chief of Performance Management

Assurance Ecosystem
Dipendra Sharma Head Compliance Management
Jayendra Rawal Chief Credit Officer Management

Ranjan Khadka Strategic Resource Management

Penetration Ecosystem
Arjun Raj Khaniya Chief Experience Management
Assurance Ecosystem
Source: [Link]

3.7 Organizational Structure:

A bank is a large and complex organization that need a proper structure to function
efficiently. A banks structure is like a pyramid decision flow from the top leaders down to
branches and staff. It shows how different people and departments are arranged to
manage work. It ensures smooth communication, better management and quick decision-
making.
 16

The Board member choose the CEO of the bank. The executive power is vested in the
CEO. CEO is the highest ranking officer corporate or administrator in charge of the total
management of the bank. Organization Structure of Sundarijal is shown in the below
figure:

Figure 3. 1 Organizational Structure of NIC ASIA, Sundarijal Branch

Branch Manager

Operation Incharge (OI)

Teller CSD Relationship

Manager (RM)
 17

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE
AND PROBLEM SOLVING

4.1 Background

During the internship period, I was mainly involved on Customer Service Department.
All the experience and knowledge gained in the 8 weeks of my internship is explained in
this chapter.
Customer service is the bank's most important department. It offers a wide range of
services offered by banks. Customer service is the front desk of any organization. This is
the customer's first point of contact with the bank. This section ties all other sections
together. This section is perfect for those completely new to the banking industry. As the
saying goes, "first impressions are last impressions", if a central registry fails to do good
business, it will create a bad impression on new and existing customers, resulting in them
switching to other banks.

4.2 Activities Performed in Customer Service Department

CSD perform different activities in the bank. It is the one to handle the customer at first
after their entrance in the bank. Hence, most interns are placed in Customer Service
Department. The various activities performed while working in customer service
department are as follows:

4.2.1 Account Opening

Account opening is another activity mostly performs in CSD. NIC Asia
Bank has offered different types of account with different features such
as current account, saving account and fixed account. Customer can
open single account, joint account and company account according to
the different scheme provide by bank like Sarbashrestha Sunya Maujat
 18

khata, Sathi Bachat Khata etc. There are different forms available to be
filled up according to type’s account you want to open which will be
assist by intern.
Requirement for opening personal account
Original citizenship/passport /driving license/ voter card
Two photo of account opening person and nominee

4.2.2 Customer Counseling and Receiving Telephone Call

As customer service department is directly related with the interaction
with the customers. So, Customer Service Department is also called the
front desk of the bank. Every customer visits the desk in order to the
get the information about the bank and its product. Interns provide the
necessary information and features which are provided to them. They
help customer to solve their query and problem.
Another activity perform in the CSD is to receive calls. Customer can
ask their query through the phone calls. While receiving phone call,
intern must be polite and gentle. They should provide the information
as per customer question.

4.2.3 Issuance of Cheque Book

A cheque is the usual method of withdrawing money from an account with a banker. The
customer has to fill up the cheque request slip to get another cheque book. Then the
cheque book is printed and it is recorded in cheque issuance book where the account
holder must sign it to collect the cheque. The number of leaves depends upon the demand
of the customer after the first issuance looking at the leaves used from the previous
cheque book. No charge is taken for issuance cheque book.

4.2.4 Statement Print

Bank statement contains the financial transaction of the customer’s
account. All the debit and credit balances, tax charges, interest are
shown in the bank statement. On the demand of the customers, the
bank statement for required period of time is provided. It is normally
 19

provided up to 6 month or 1year statement to the account holder or

the agent.

4.2.5 Card Issuance

ATM Card is the advance mode of payment which almost has replaced
the cheque. It is an easy way for the customer to withdraw the money
without visiting the bank premises. At present NIC ASIA bank is
providing instant ATM cards to their customers. For getting the card
service one must be the account holders. NIC ASIA bank has provided
free of charge for 1 year for new customer. It is valid for 5 years.

4.2.6 Online Deposit Voucher

Another mostly perform task in csd is filling online deposit voucher. NIC
ASIA bank has brought online deposit voucher where customer does
not have to fill up physical voucher for their deposit. They can simply
fill up through online where the code is generating and they just have
to give it to teller where all the information will be automatically
generating which will be fast and convenient. They can also deposit
through their mobile banking where they only have to fill up how much
money they want to deposit.

4.3 Problem solved

While working in NIC ASIA Bank as an intern for eight weeks, I got great
opportunity to gain practical knowledge. We all know that,
the internship program is a great opportunity for us to learn about real
world working scenario. But it is not an easy task as we think it would
be. The internee had to deal with different problems and solve their
problem as far as possible.

 Incorrect Information
Sometime customers provide the incorrect or incomplete information
which create problem while processing in the system. At that time,
intern contact to the account holder about the incomplete information
 20

and tried to get information through phone or otherwise asked them to

visit the bank.

 Unaware About Rules

Customers were unaware about the bank rules and regulation. While
opening account, customer did not bring the original citizenship or
photo. During closing time, customers entered into the bank and
demanded their works to be done. So the intern had to make them
clear about the rules of the bank. Intern tried their best to manage the
rush of customers and get their job done as fast as possible.

 Lack of Knowledge
Customers lack the knowledge about filling up the various forms like
account opening, remittance form, KYC form, dispute form and so on.
Interns help customers to fill up these forms and provide knowledge
about how to fill up the form. The old customers were given more
priority for service.

 ATM and Mobile Banking Handling

Most of the customer doesn’t know how to use atm and mobile
banking. So, intern helps them to use mobile banking and teach them
about different function (mobile recharge, cardless, statement, apply
share, fixed deposit and so on). Similarly, those customers who do not
know how to use atm is taught by intern by showing them process in
atm machine.

4.4 Observed Gaps

During my internship period, I observe certain gap. Being the internee
in the bank I was expected to perform all the given activities at the
prescribed hour. During the internship, I was assigned to work at CSD
where I need to give various forms for account opening, new/renew
Debit card, dispute declaration, mobile banking etc and help the
 21

customers to fill those forms if they didn’t understand any terms. Few
gaps that I have observed during my internship are as follows:
· The intern discovered a significant discrepancy between the theoretical knowledge
acquired through academic studies and the practical skills and experience required
in a real world.
· There is only one staff in CSD and interns are not allowed to use
the software so there is always queue of customer in front of CSD
Desk.
· Customers often did not receive the exact services as promised, due to technical
issues such as ATM malfunction and system crash.
· During the peak hours (10:30 to 1:00) the flow of customers is
too high so it is difficult to handle customers.

CHAPTER FIVE
CONCLUSION, LESSON LEARNT

5.1 Conclusion

An internship is a period of work experience offered by an organization for

a limited period of time. Internship plays an important role in matching
the knowledge gained from theoretical perspective of education with
the practical exposure at workplace. It also provides an opportunity to
learn about the activities of the bank and its corporate culture. Within a
short span of time an internee learned so many things like dedication,
 22

commitment to meet targets, interpersonal and communication skills

etc. which will certainly help in coming days.

During eight weeks’ internship period, I got to know the real life
experience of the bank. I got to explore the theoretical knowledge into
the real working environment. I learnt a lot about the banking sector
and banking operations, about NIC ASIA Bank. This report had made to
know about various kinds of information/service offered to customers
by NIC ASIA Bank. At NIC ASIA Bank, the intern was cooperatively
guided by all the staffs that helped in acquiring the in-depth banking
knowledge. As an intern I was assigned in departments for various
tasks like customer department. I got the chance to socialize with
people and found that people of NIC ASIA Bank are highly committed to
serve the customers and deal with their issues. The bank is always
focused on maintaining long term relationship with the customer and
retaining them by providing better services.

The intern’s knowledge about banking was limited to books only. But
through internship, the intern got a practical acquaintance of the bank
and the corporate culture. Internship is a golden opportunity for the
student to learn in country like ours where people hardly get an access
to practical field while studying. Internship had helped intern to
develop the interpersonal skill, communication, time management, and
ability to work under pressure, computer and technical skills, to know
about how to handle the customer and how to work in team.

5.2 Lesson Learnt

The most important lesson that I learnt during the internship period is
how to perform various tasks in an organization. The internship
program with NIC ASIA Bank was delightful experience. The eight
weeks long internship at NIC ASIA Bank did not only gave an
 23

opportunity to learn about the basic activities of the various

departments but also helped to shape personality and character to
greater extend.
The following are the major lessons learnt during internship period:
 Learned about the communication skill which helped to
communicate effectively.
 Learned about the behavior that the customers show during
banking activities.
 Learned to maintain good relationship with customer.
 Handling the work pressure developed while working in the bank
 Learned to work in team and friendly environment with other
employees.
 Learned the importance of time management.
 Dealing with various types of customer has improved mass facing
ability.
 Increase the confidence level to communicate and coordinate
with stranger.
 Became more socialize while dealing and interacting with many
people.
 Gained basic knowledge on operating software of NIC ASIA Bank
like opening account, cheque printing, statement printing, scan
signature and so on
 Learned about the procedure of distribution of ATM cards,
balance enquiries and account statement.
 24

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BAFIA Act. (2063). Banks and Financial Institution Act. Nepal Rastra
Bank

Chand, S. (2014). Banking: The Evolution, Origin and Growth of

Banking. Retrieved from:[Link]
evolution-origin-and-growth-of-banking/10998

Crowther, G. (1995). Oxford Dictionary of National Biography. New

York. Oxford University Press
KC, S. (n.d). Retrieved from
[Link]

NIC ASIA BANK LTD. (2016). NIC ASIA BANK LTD. Retrieved from NIC
ASIA BANK LTD: [Link]

NIC ASIA BANK LTD. (2016). NIC ASIA BANK LTD. Retrieved from NIC
ASIA BANK LTD: [Link]

NRB Act. (2002). Nepal Rastra Bank Act. Retrieved July 21, 2019

Oxford English dictionary (n.d.). Oxford Dictionary of National

Biography. New York: Oxford University Press.

Thapa, K. (2019). Banking Law and Regulations. Kathmandu: Khanal

Publications Pvt. Ltd.

Thapa, K. (2017). Commercial Bank Operation. Kathmandu: Khanal

Publications Pvt. Ltd

Thapa, K. (2019). Treasury Management. Kathmandu: Khanal

Publication Pvt. Ltd.
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