GENERAL BANKING PRACTICES OF NEPAL BANK

LIMITED, THIMI BRANCH, BHAKTAPUR

AN INTERNSHIP REPORT

BY
SUJANA KAFLE
Exam Roll No. 964/15
T.U. Reg No. 7-2-0032-0031-2015

An Internship Report Submitted to

Faculty of Management, Tribhuvan University
in the partial fulfillment of the requirements for the degree of
Bachelor of Business Management

at
Saraswati Multiple Campus
Tribhuvan University

Kathmandu
September, 2019

ii
iii
GENERAL BANKING PRACTICES OF NEPAL BANK
LIMITED, THIMI BRANCH, BHAKTAPUR

AN INTERNSHIP REPORT

BY
SUJANA KAFLE
Exam Roll No. 964/15
T.U. Reg No. 7-2-0032-0031-2015

An Internship Report Submitted to

Faculty of Management, Tribhuvan University
in the partial fulfillment of the requirements for the degree of
Bachelor of Business Management

at
Saraswati Multiple Campus
Tribhuvan University

Kathmandu
September, 2019

iv
 STUDENT’S DECLARATION
I hereby declare that the internship report entitled, GENERAL BANKING PRACTICES
OF NEPAL BANK LIMITED submitted to the Faculty of Management, Tribhuvan
University, Kathmandu is an original piece of work under the supervision of Kul Prasad
Pandey faculty member of Saraswati Multilple Campus, Lekhnathmarg, Kathmandu and
is submitted in partial fulfilment of the requirements for the award of the degree of
Bachelor of Business Management (BBM). This internship report has not been submitted
to any other university or institutions for the award of any degree or diploma.
.

-------------------
Sujana kafle
25-09-2019

ii
INTERNSHIP CERTIFICATE

iii
 APPROVAL SHEET
This is to certify that the Internship Report

Submitted By:
SUJANA KAFLE

GENERAL BANKING PRACTICES OF NEPAL BANK LIMITED

We certify that we have read this document and in my opinion, it is satisfactory in scope
and quality area as an internship report in partial fulfillment for the undergraduate course,
Bachelor of Business Management (BBM) held at Saraswati Multiple Campus,
Tribhuvan University.

………………. ………………… ………………….

Kul Prasad Pandey Narayan Prasad Aryal Dr.Golman Gurung

Supervisor Program Director Campus Chief

iv
 ACKNOWLEDGEMENT
The report entitled GENERAL BANKING PRACTICES OF NEPAL BANK LIMITED
is prepared for the partial fulfillment of the requirements for the degree of Bachelor of
Business Management offered by Tribhuvan University, on the basis of the activities
performed and experience gained during the internship period. I would like to express my
deep and sincere gratitude to Tribhuvan University, for providing great opportunity to
enhance my educational knowledge and build up skills of practical working conditions.

Firstly, I would like to express my sincere gratitude to my supervisor, Kul Prasad Pandey
for the guidance, constant supervision and clarification. Secondly, I am extremely
thankful to my campus chief Golman Gurung, director Narayan Prasad Aryal and the
college management for providing support and other necessary documents during the
internship program and report preparation.
I would like to evince my sincere appreciation to Nita Lamichhane, Branch Manager
Thimi branch. Also I would like to thank my supervisor Binod Shah for his proper
guidance, suggestion and encouragement for directing intern to the right track despite of
his busy schedule and would like to thanks Sharmila Adhikari, Karuna chhetri, Sony
Shrestha, Santosh Sharma, Deepa Paneru, Sujita Shrestha for their kind co-operation and
support during internship period despite of their busy schedule. Also I would like to
thanks the operation in charge Deepa Paneru for placing me in different department and
providing me proper guidance in the initial days of my intern.

Finally I would like to give sincere thanks to my parents, my teachers, friends and seniors
for making this study esteemed by providing consistent encouragement, support, and
congenial atmosphere to complete it.

Sujana Kafle

September, 2019

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 TABLE OF CONTENTS

TITLE PAGE………………………………………………………………………………………i

STUDENT’S DECLARATION ...................................................................................................... ii

INTERNSHIP CERTIFICATE ....................................................................................................... iii
APPROVAL SHEET ...................................................................................................................... iv
ACKNOWLEDGEMENT ............................................................................................................... v
LIST OF TABLES .......................................................................................................................... ix
LIST OF ABBREVIATIONS .......................................................................................................... x
CHAPTER I ..................................................................................................................................... 1
INTRODUCTION ........................................................................................................................... 1
1.1Background ............................................................................................................................. 1
1.2 Objectives .............................................................................................................................. 3
1.3 Methodology .......................................................................................................................... 3
1.3.1 Organization selection .................................................................................................... 4
1.3.2 Placement ........................................................................................................................ 4
1.3.3 Duration .......................................................................................................................... 4
CHAPTER II.................................................................................................................................... 6
INTRODUCTION OF THE BANKING INDUSTRY .................................................................... 6
2.1 Background ............................................................................................................................ 6
2.2 Evolution and growth of banking and financial institution in Nepal ..................................... 7
2.3 Classification of Banks .......................................................................................................... 8
2.3.1 Commercial Bank ............................................................................................................... 9
2.3.2 Development Bank.............................................................................................................. 9
2.3.3 Finance companies ............................................................................................................ 10
2.3.4 Micro Finance Financial Institution .................................................................................. 10
CHAPTER III ................................................................................................................................ 11
INTRODUCTION OF THE NEPAL BANK LIMITED ............................................................... 11
3.1 Background .......................................................................................................................... 11
3.2 Vision and mission of NBL ................................................................................................. 12

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 3.3 Objectives of NBL ............................................................................................................... 12
3.4 Core values of NBL ............................................................................................................. 12
3.5 Branches of NBL ................................................................................................................. 13
3.6 Organizational structure of NBL.......................................................................................... 13
3.7 Product and services provided by NBL ............................................................................... 13
3.7.1 Deposit .......................................................................................................................... 14
3.7.2 Loan/ Advances ............................................................................................................ 15
3.7.3 ATM/ Debit Card .......................................................................................................... 16
3.7.4 Remittance .................................................................................................................... 16
3.7.5 Mobile banking ............................................................................................................. 17
3.7.6 Internet banking ............................................................................................................ 17
3.7.7 Any Branch Banking Services (ABBS) ........................................................................ 17
3.7.8 ASBA service................................................................................................................ 17
CHAPTER IV ................................................................................................................................ 18
ANALYSIS OF ACTIVITIES PERFORMED .............................................................................. 18
4.1 Background .......................................................................................................................... 18
4.1.1 Customer service department ........................................................................................ 18
4.1.2 Cash department............................................................................................................ 23
4.1.3 Treasury department ..................................................................................................... 24
4.1.4 Pension Department ...................................................................................................... 25
4.1.5Clearing department ....................................................................................................... 25
CHAPTER V ................................................................................................................................. 27
CONCLUSION AND LESSON LEARNT ................................................................................... 27
5.1 Lesson learnt ........................................................................................................................ 27
5.1.1 Punctuality and timeliness ............................................................................................ 27
5.1.2 Networking and socialization........................................................................................ 28
5.1.3 Building competency .................................................................................................... 28
5.1.4 Self sufficiency ............................................................................................................. 28
5.1.5 Be patient ...................................................................................................................... 28
5.1.6 Difference between theory and practice........................................................................ 29
5.2 SWOT analysis .................................................................................................................... 29
5.2.1 Strength of NBL ............................................................................................................ 29

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 5.2.2 Weakness of NBL ......................................................................................................... 30
5.2.3 Opportunity of NBL ...................................................................................................... 30
5.2.4 Threat of NBL ............................................................................................................... 30
5.3 Conclusion ........................................................................................................................... 31
References

Appendix

viii
 LIST OF TABLES

Table 1.1 Duration of activities at different departments…………………….….5

Table 2.1 Classification of bank and financial institution……………..…………9

Table 3.1 Total branches of NBL…………………………………………..……13

Table 3.2 Interest rate of fixed deposit …………………………………………14

ix
 LIST OF ABBREVIATIONS

% : Percentage

ABBS : Any Branch Banking System

ASBA : Application Supported by Blocked Amount

ATM : Automated Teller Machine

BBA : Bachelor in Business Administration

BBM : Bachelor in Business Management

BFD : Bank of First Deposit

BHM : Bachelor in Hotel Management

BIM : Bachelor in Information Management

BPA : Bachelor of Public Administration

BTTM : Bachelor of Travel and Tourism Management

CEO : Chief Executive Officer

CSD : Customer Service Department

DO : Deposit by other

ECC : Electronic Cheque Clearing

Fom : Faculty of Management

FPO : Follow on Public Offer

i.e : That is

IC : Indian Currency

IPO : Initial Public Offer

x
KYC : Know Your Customer

MBA : Master in Business Administration

MBM : Master in Business Management

MFC : Master of Finance and Control

MHM : Master in Hotel Management

MICR : Magnetic Ink Character Recognition

MOF : Ministry of Finance

Mphil : Master of Philosophy

MTTM : Master in Travel and Tourism Management

NBL : Nepal Bank Limited

NEPSE : Nepal Stock Exchange

NRB : Nepal Rastra Bank

PAN : Private Account Number

SWIFT : Society for Worldwide Interbank Financial Telecommunication Code

TAML : Trust Anti Money Laundering

TT : Telegraphic Transfer

TU : Tribhuvan University

WO : Withdrawal by other

xi
 CHAPTER I

INTRODUCTION
1.1 Background
Tribhuvan University is a pioneering institution of higher education in Nepal established
in 1959. It is the oldest and largest university in Nepal. The main objective of TU is to
produce skilled manpower essential for the overall development of the country. There are
four faculty at TU i.e faculty of management, faculty of humanities and social sciences,
faculty of education, and faculty of law and five institutes i.e institute of agriculture and
animal science, institute of forestry, institute of medicine, institute of engineering and
institute of science and technology. The university offers 115 courses for the technical
proficiency certificate level and Ph.D degrees in the technical institutes and faculties.
This university is established to encourage and promote research in arts, science, and
technology in the vocational field. Tribhuvan University is ranked among the 800-1000
best universities of the world according to Times Higher Education ranking 2019.The
university offers 2079 undergraduate and 2000 post graduate programs across a wide
range of disciplines. University has more than 600 affiliated colleges. (Tribhuvan
University, 2018)

The faculty of management (FoM) has its objective of educating the students to enhance
the knowledge of business, industry and government. It helps to produce socially
responsible and creative entrepreneurs capable of promoting business and industry that
help for the development of the country. Faculty of management has been running
different programs i.e BIM, BBA, BHM, BTTM, BBM, BPA, MBM, MBA, MTTM,
MHM, MFC, MPhil management, MPhil PA (Faculty of Management).TU provides wide
range of streams in the educational sector among which management education holds a
major position. It introduced BBM program in 2071 BS. BBM is newly launched 4 years,
8 semester course of Tribhuvan University Faculty of management. The program covers
120 credit hours. The BBM program is designed for aspiring business leaders and
managers of the future. It is designed to develop students competency, skills in creative
thinking, decision making, leadership, communication etc (Edusanjal).

1
Internship report is prepared in partial fulfillment of the degree of Bachelor in Business
Management under the faculty of management. So for the completion of BBM, students
are required to undergo comprehensive on the job internship in eighth semester.
Internship is typically a service experience related to a students major carrier goal. It
generally involves student working in a professionals setting under the supervision and
monitoring of practicing professionals that enhance the knowledge, skill and theoretical
practices of the students. Student internships provide opportunities for the students with
an opportunity to put into practice skills they have learned while in college in the
respective bank. It helps to develop the professional working habits and creates a
platform to creates differences in the work style. It gives a direction and provides
ideologies for the practical problems. It provide platform for the students to develop the
relevant skill, convert their theoretical knowledge into practical knowledge and help them
to become competent in their field.

Today is the age of experience, skill and competent in any sector. Skill is important to do
any financial functions such as investment decision, finance decision, dividend decision,
liquidity decision etc. in the bank and financial institutions. For doing any type of work,
they need skill, practical knowledge. So internship is the first step for the students to get
work experience, to understand the working environment that helps them to understand
the communication and operation procedures. Nepalese university campuses produce
thousand unskilled students per year who have neither knowledge nor skill about the
work environment. Students have only theoretical knowledge but donot have practical
knowledge. In such condition internship plays important role for developing working
experience among the students. Internship is a period of work experience undertaken by
graduate students who want to gain skills and practical knowledge.

So being the student of BBM in Saraswoti Multiple Campus the internee selected
different bank and financial institutions and got involved in two month internship
program. My internship was done in Nepal Bank Limited, Thimi branch. The internship
program was for forty eight days in which internee are placed in different departments
like customer service, cash, remittance, treasury etc.

2
1.2 Objectives

The internship is prepared in partial fulfillment of the degree of Bachelor in Business

Management (BBM). The main objective of this internship is to acquire the practical
experience in the bank or financial institutions, to develop professional work habits, to
provide an understanding of corporate cultures and see how project or work are handled
in different culture. In addition, it helps the students to manage time, risk and develop the
confidence level, performance level and competitive level. Internship always provides
guidelines to the student for doing any kind of work properly and effectively that help to
expand their knowledge and skill of any work.

The main objective of the internship is to get better understanding of overall banking
transactions and contribution of NBL in economic development of the country. Besides
these the other objectives of the internship can be listed below:

1. To relate internee theoretical knowledge with the real working environment,

2. To understand the customer dealing procedures, operation procedures in different
departments and know about the products and services offered by Nepal Bank
Limited.
3. To develop skills and techniques and increase the self confidence and knowledge by
involving in the situation and work environment that can be applicable to our career.

1.3 Methodology
Methodology is the process of collecting the information needed for preparing the report.
It is the description of the procedure followed while collecting the necessary data and
information needed for report preparation. This study has followed the descriptive
method. Basically the data had been collected by using both primary and secondary data
in order to complete the report. Observations of the working procedure, discussion with
the staff are the primary source of data. Information from websites of Nepal Bank
Limited, annual report, book, internet etc are the secondary sources used in collecting the
data.

3
1.3.1 Organization selection

As students were free to choose any organization as per their interest, so internee choose
banking and financial institutions as Nepal Bank Limited which is the first commercial
bank of Nepal. Internee was posted in thimi branch according to the requirement of
internee. It was great opportunity for internee to do internship in Nepal Bank Limited
because it has great history of struggle and success, there is better working and learning
environment. This bank offers intern to work in different department of the bank. This
bank let the internee to work as staffs due to which intern can increase their competency,
knowledge, skill etc. So I dropped all the document in Nepal Bank Limited, Thimi
branch. They called me to processed internship from 11th of Baisakh. Staff provide
internee support and guidelines due to which internee was able to learn about the working
procedures, work environment, culture etc.

1.3.2 Placement

The internee was placed in different departments of the bank: customer service
department, cash department, loan department, clearing, pension department, mobile
banking department. At first the internee was placed in customer service department
where internee learns to deal with customers, to understand the banking activities.
Likewise internee got opportunity to carry the activities of clearing, loan etc. In the case
of lack of staffs in some departments, internee was placed in required field where
internee got chance to perform the banking activities like deposit and withdraw of money,
cheque clearance, opening of new account in the computer, opening of loan account etc.
The supportive and friendly behavior of the staff helped the internee to complete the
internship period.

1.3.3 Duration

The internship period for BBM program is 48 days according to faculty of management.
However, the internee did her internship for about 55 days. During the period of
internship, the internee was placed in different department like customer service
department, cash department, loan department, pension, cheque clearing etc. The internee
has provided enough time to understand the functioning of the bank. The internee was

4
given access to use the pumori through which internee was able to learn the working
procedures in banks, build the confidence and interpersonal skills etc. In customer service
department, internee learns about: balance enquiry, scanning the signature, signature
verification, account opening, KYC update, TAML, cheque printing, statement printing
etc. In loan department, internee learns to open loan account against gold. In cash
department, internee learns to deposit and withdraw cash, maintaining daily cash book
etc. Internee also learns to renew the pension of the people, cheque clearing etc.

Table 1.1
Duration of activities at different departments
Week
Department 1 2 3 4 5 6 7 8
customer service department
Loan department
Cash department
Clearing department
Pension department

5
 CHAPTER II

INTRODUCTION OF THE BANKING INDUSTRY

2.1 Background
The term bank is derived from the latin word Bancus, French word Banque and Italian
word Banka which means a bench for keeping, lending and exchanging of money in the
market by money changer (Aryal, 2019). Banking means any financial institution that
accepts various deposits and then advances loan to the people. It is a financial institution
that provides banking and financial services like deposit, credit, bank guarantee,
remittance foreign exchange, ABBS, cheque clearing, letter of credit etc. These
institution deals with the money i.e. accept the deposit and provide long term and short
term loan to the needy people. Banking are highly regulated in world because of its
financial stability. It is considered as safe place for depositing the money. Baking is
commercial institutions that aim to achieve profit. Bank take the money from customers
as deposit and then use these deposits to provide variety of loan like short term loan,
mortgage loan, long term loan etc. It provides necessary liquidity for promoting the
stability of the financial sectors. It raises the fund from public, corporate body and private
organization and utilize those funds in productive sectors and distribute the accumulated
fund to others who are in need of money by charging certain interest rate. Bank help to
develop sound, effective and safe payment system that help for the development of the
banking system.

In the past periods, private individual themselves act as the bank as they lend money to
the people against some security. So the first bank i.e Bank of Venice was established in
1157 in Italy to finance the monarch in the war. Originally it was not a bank in the real
sense being simply an office for the transfer of public debt. Then bank of Barcelona and
Bank of Genoa was established in 1401 and 1407 respectively. The bank of Amsterdam
was established in 1609 to meet the need of the merchants which accepts all type of
metal, gold on deposits. Then the beginning of England Banking led to the growth of
private bank. In 1694, the first central bank i.e Bank of England was established. So
Banking institutions have then changed the content to the further extent. They have
developed the system and operations for the satisfaction of the individual wants. After

6
1640, modern banking started. The growth of the banks started after the introduction of
Banking Act 1833 in UK as it allowed to open joint stock company banks. In 1770, the
Bank of Hindustan was established which was the first bank of India. In this way banking
system extended in the world. (Smirti Chand)

Bank is any financial intermediaries that traded money, accept deposit, facilitates the
transmission of remittances from one place to another place, provide variety of loan
facility, facilitates for collection and payments of credit instruments etc. without bank it
would be quite impossible for the industrialist and entrepreneurs to go directly to general
public for getting their savings and investments. So banks operate by borrowing the fund
from people in the form of deposit and then use those deposit to provide loan by charging
certain interest rates. So, bank play important role for the development of economy.

2.2 Evolution and growth of banking and financial institution in Nepal

The concept of banking system arises in Nepal, where the rich people used to provide
money to the common people against collateral like land, gold etc. by charging some
interest rate. So landlord, goldsmiths were the ancient bankers.At the end of eighth
century, GunakamDev had borrowed money to rebuild the Kathmandu valley. Our king
Mandev and Gunakamdev established Manank and Ginak mudra respectively. In 879
A.D, Shankhadhar introduced Nepal sambat after paying all the outstanding debts of the
people in the country. During the malla regime, there was an evidence of professional
money lenders and bankers in 11th century. In (1877-1885) Prime Minister Ranodip
established Tejarath Addaha in Kathmandu for supplying credit to the people against
collateral at5% interest rate which was the first financial institution of the country. This
was the government financial institution. In (1901-1929), Chandra Shumsher extended
Tejarath to other part of the country (Evolution and Growth of Banking in Nepal, 2009).
This institution did not accept deposit. TaksarBivag was also established in 1989.

The modern banking system started through the establishment of Nepal Bank Limited
(NBL) in 1937 A.D, with the objective to develop the trade and industry with 51%
ownership of the Government and 49% equity participation from the public. Nepal Bank
Limited is the first commercial bank of Nepal that is established to serve the people and
to extend the banking system in the country. The landlords, sahukars and money lenders

7
were exploiting the farmers. So NBL was established to abolish this informal banking
system and form the systematic banking system in the country. NBL played both the role
of central bank and commercial bank until the establishment of Nepal Rastra Bank. Then
Nepal Rastra Bank was established in 26thapril 1956 under the Nepal Rastra Bank Act
1955 to regulate the monetary system, to supervise the commercial bank of the country. It
helps for the promotion of economic development of the country through the
development of banking and financial system in the country. Nepal Industrial
Development Corporation was established in 1956 A.D to provide the capital to the
industrial sector. This helps to promote the industry in the country. Then another
commercial bank, Agriculture Development Bank was established in 1968 with the
objective to promote agricultural sector by providing loan facility to the farmers. Rastriya
Banijya Bank was established in 1965. This was wholly owned commercial bank.
Likewise different corporations and banks were established like deposit and credit
guarantee corporation, foreign bank, rural self reliance fund etc. after the declaration of
free economy and privatization policy, the first joint venture bank as Nepal Arab Bank
Ltd was established in 1984. Nowadays the bank is known as Nabil Bank. Today various
banks working as modern banking system are established like Himalayan bank, standard
Chartered bank, Everest bank, Bank of Kathmandu, Nic Asia Bank etc. These banks are
providing different services like ATM, E-Banking, Mobile Banking, Debit Card, Credit
Card and many other services that help to conduct operate the activities more effectively
(Banking in Nepal:A History of Banking System in Nepal).

2.3 Classification of Banks

Different types of Banks are established to fulfill the increasing need of people. So NRB
classified the financial institutions into different class on the basis of paid up capital.
NRB formulate various policies and guidelines to promote the banks (Nepal Rastra Bank,
2018).

8
 Table 2.1
Classification of bank and financial institution licensed by NRB as of 2018

Types of bank Class Number

Commercial Bank A 28
Development Bank B 33
Finance Companies C 25
Micro Finance Financial Institutions D 65
(source: www.nrb.org.np)

2.3.1 Commercial Bank

Commercial banks are class A financial institutions. These bank accept deposit and
provide loan to the people, industry, factory and traders to earn profit. The main function
of commercial bank is accepting deposit, advancing loan, letter of credit, bank guarantee,
remittance etc. Commercial bank is a profit oriented financial institution. These banks
provide different banking facility like internet banking, mobile banking, credit card
facility etc. these bank also provide credit facility for hire purchase, hypothecation,
leasing and service business. The main objective of this bank is to maximize profit.
According to Nepal Rasta Bank, there are altogether 28 commercial bank. Commercial
banks have the low equity capital and there is no limitation in taking deposit in taking.
These bank play important role for the development of the economy. Nepal Bank Limited
is the first commercial bank of Nepal established in 1937. It is established to serve the
people and extend the banking service in the country. RastriyaBanijya Bank is the second
commercial bank established in 1965. There are various other commercial bank like
Everest Bank, Nepal SBI bank, Himalayan Bank, NIC Asia etc. that are providing
different banking services like internet banking, mobile banking, ATM, etc to the people
and helping for the development of the economy. Total number of commercial banks
with its name are shown in appendix 1.

2.3.2 Development Bank

Development bank are B class financial institution that provide long term loan to the
related sectors specially for the development activities. The nature of development bank
may differ according to the economy. so these bank donot focus to earn profit. It focus on

9
the development of the economy. These type of bank donot accept deposit but provide
loan for the development of agriculture, industry. It supply credit in lump-sum basis
against the security of the movable or immovable property. It also issue and accept letter
of credit, as prescribed by NRB. Dealing in foreign exchange, providing overdraft,
mobilizing the capital through shares, debenture, bond or other financial instruments as
prescribed by NRB are the functions of Development Bank. There are 33 development
banks that contribute for development of the agriculture sector, industrial sector and
whole economy. There are various Development Bank like Narayani Development Bank,
Karnali Bikash Bank, Miteri Development Bank, Corporate Development Bank etc that
are contributing for the development of agriculture, industry, and other in the country.

2.3.3 Finance companies

Finance companies are the C class financial institution whose main objective is to
provide credit facility other than hypothecation credit, supplying of the credit facility
against security or in lump sum basis. At present there are 25 financial institutions
prescribed by NRB in 2018. It utilize the saving of the people and provide them financial
services. This type of institution help for the development of the innovation,
establishment of the business etc by providing credit facility to the people. Some of the
Financial Company are Nepal Finance Limited, Goodwill Finance Limited, Pokhara
Finance Limited etc are providing financial service to the common people.

2.3.4 Micro Finance Financial Institution

Micro Finance Financial Institution are the D class financial institution. As most of the
people of Nepal is under poverty line. So micro finance financial institution helps the
poor people by providing them credit facility without collateral. These institutions help
the poor people to establish their own business and reduce the poverty in the country.
There are 65 micro finance financial institutions as prescribed by NRB in 2018. There are
many D class financial institutions like Nepal Grameen Bikash Bank Limited, Nirdhan
Utthan Bank Limited, Sana Kishan Vikas Bank etc that are helping to uplift the living
standard of people. These institutions are playing important role in eliminating poverty
system from the country.

10
 CHAPTER III

INTRODUCTION OF THE NEPAL BANK LIMITED

3.1 Background
Nepal bank limited is the first bank of Nepal established in 1937 under the joint venture
between government and general public. King Tribhuvan inaugurated Nepal Bank
Limited in 1937. After its establishment, formal banking system started. The bank is
licensed by NRB as A class commercial bank. NBL is the oldest, biggest and most
trusted bank in Nepal. This bank was established with the main objective of increasing
the economic progress in the country by providing banking services to the people of the
country. The authorized capital of NBL was Rs. 10 million and issued capital Rs 2.5
million. The paid up capital was Rs 842 thousand with 10 shareholders. NBL has
contributed for flourishing industrial, commercial, and financial sector of the country. So
NBL is regarded as modern and strong financial institution of the Nepalese economy.

Before the establishment of NBL, The landlords, sahukars and money lenders were
exploiting the farmers. So NBL was established to abolish this informal banking system
and form the systematic banking system in the country.NBL played both the role of
central bank and commercial bank until the establishment of Nepal Rastra Bank. At that
time very few people understood in this formal bank concept. The deposit for the first
year was Rs. 1702025 where current deposit was Rs.12,98,898, fixed deposit was Rs.
3,88,964 and saving was Rs. 14,163. Loan disbursed was Rs. 19,85,000. So it was more
difficult to mobilize the deposit and it was difficult to rise the equity shares. At first
equity share floated worth 25,00,000 and rise 842000. NBL has been providing various
type of banking services like remittance, ASBA, ECC, cash deposit, cash withdraw,
taking loan against gold or other security through its 163 branch office in different
geographical locations of the country. There are 2129 staffs according to the report of 23
may, 2019. In the past the work is based on paper and ledger system. But now the work is
computerized and there are 163 branch under single computer network as of june 7, 2019.
The Board of Directors of Nepal Bank Limited is Mr. Basudev Adhikari. The
representation is made from Ministry of Finance. So Ministry of Finance appointed 5
members.

11
3.2 Vision and mission of NBL
Nepal Bank Limited holds a vision to become a Pioneer Bank with customer service
excellence. This bank has a vision to become leading bank of the country providing
premium products and services to the customers. It ensure attractive and substantial
returns to the stakeholders of the bank.

The missions of Nepal Bank Limited are listed below:

1. Building trusted and united customer relationship,

2. Ensuring superior quality customer service,
3. Service access to all,
4. Technology driven SMART banking service.

3.3 Objectives of NBL

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

2. Focus on increasing the customer base and market share,

3. Maximize the potential/efficiency of banks staff,

4. Focus on minimizing the risk associated with the business,

5. Focus on providing the world class business solution,

6. Focus on increasing the sustainable profit.

3.4 Core values of NBL

1. Honesty, transparency, integrity and ethics,

2. Respect to customers and respect to fellow associates,

3. Learning and knowledge sharing,

4. Teamwork, ownership and accountability,

5. Contribute to society and environment (Nepal Bank Limited, 2019).

12
3.5 Branches of NBL
Nepal Bank Limited has 163 branches operating in the country. The head office of NBL
is located in Newroad, Kathmandu. The number of branches based on proviences is
shown below.

Table 3.1
Total branches of NBL

Province wise branches No of branches

Province 1 30
Province 2 30
Province 3 44
Province 4 20
Province 5 25
Province 6 7
Province 7 7
(source: www.nbl.com.np)

3.6 Organizational structure of NBL

The bank is under the control of Nepal Rastra Bank. Nepal Rastra Bank has appointed a
five members management committee. This management committee performs at the
Board of Directors of the bank. Chief Executive Officer (CEO) is under the Board of
Director (BOD) followed by General Manager (GM), Deputy Manager (DGM) and then
other departments. The BODs of NBL is chaired by Mr. Janardhan Sharma Acharya,
representative from MOF and two member is professional director appointed by MOF
and two members are elected from the public shareholders. Organizational structure of
NBL is shown in appendix 3.

3.7 Product and services provided by NBL

Today banks are offering different type of services to stay competitive and attract the
customers. So Nepal bank limited offer different type of services to assist the customers
in managing the finances that include saving account, loan, ATM, mobile banking etc.
the other services provided by NBL are explained below.

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3.7.1 Deposit

The major function of this Bank is to accept deposit. The bank allows for opening three
types of accounts to accept the deposit of their customers. They are explained below.

3.7.1.1 Saving account

Saving account is the type of account that allows the people to deposit the money and
provide certain interest rate. It helps to meet short term need of the people. NBL is
providing the saving facility to the people so that common people can save for future
security. Interest and initial deposit is dependent upon the types of saving account and
interest is credited to their account. People can withdraw the amount at any time. It
provides certain interest, security to their deposit, ATM facility, mobile banking etc. so it
is more beneficiary. The current interest rate of normal saving is 6.50%. There are
different types of saving account which are shown in appendix 2.

3.7.1.2 Fixed Account

Fixed deposit is a type of deposit that provide highest interest rate than other saving to the
investor. Documents required are completed account opening form, photocopy of account
holders citizenship, 2 password size photo. Fixed deposit can be opened with minimum
cash balance of Rs.25000 where interest is payable quarterly. The current interest rate of
fixed deposit for institution is 8.50% and for individual 9.25%. The interest rate of fixed
deposit are shown in following table.

Table 3.2
Interest rate of fixed deposit

Deposit period Individual Interest rate (%) Institutional interest rate (%)
3 month 9.25 8.5
6 month 9.25 8.5
1 year 9.25 8.5
Above 1 year up to 2 years 9.25 8.5
Above 2 years up to 5 years 9 8

(Source:www.nbl.com.np)

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3.7.1.3 Current Account
Current account is non interest bearing account. Mostly customers open this account who
need money more frequently. The minimum balance of this account is Rs.1000. Mainly
this account is opened by proprietorship firm, partnership firm, companies, businessman.
The documents required to open this account differs according to the nature of account.
For single, it require citizenship photocopy of accountholders, 2 password size photo and
photocopy of citizenship of the nominee. For firm, it require certificate of registration, tax
paid certificate, PAN certificate, 1 citizenship photocopy and 2 password size photo of
account holders.

3.7.2 Loan/ Advances

There are various type of loans provided by NBL through its branches. The interest on
loan are shown in appendix 4. They are as follows.

3.7.2.1 Auto Loan

This loan is provided for the purchase of new or old vehicles. The loan is provided to the
Nepalese Citizen who have regular source of income. The criteria for taking this loan are:
the borrowers must be at least 21 years and should not exceed 60 years. Document
needed for this loan are password size photo, photocopy of citizenship certificate,
photocopy of valid driving license, registration certificate and photocopy of TAX/PAN
certificate.

3.7.2.2 Home loan

This type of loan is provided for the purchase of land or building of for the construction
or modification of the existing building. This loan is provided to the salaried or self
employed person. The maximum loan amount is Rs. 5000000 and minimum loan amount
is Rs. 400000. The loan is provided to that land or building that fall under the municipal
area.

3.7.2.3 Personal term loan

This type of loan is provided against the land or building to fulfill personal need of the
people. There are mainly two types of personal loan: personal term loan and personal

15
overdraft loan. The minimum loan amount provided by NBL is Rs. 500000 and
maximum Rs.5000000. the document needed for borrowing this loan are personal
identification documents like citizenship certificate, password size photo, proof of
income related documents, land or building related document, legal document like
memorandum and article of association.

3.7.2.4 Margin lending

Margin lending is the type of loan which is provided against the shares of the companies
listed in NEPSE. Any individual, firm can take this loan but the borrowers should be
Nepalese citizens. The document required for this loan are original share certificate, letter
of consent from borrowers to the concerned company for the lien over shares in favor of
NBL and filled loan application form etc.

3.7.3 ATM/ Debit Card

Nepal Bank Limited has introduced Visa Debit Card by joining hand with Nepal
Investment Bank Ltd to provide ATM service. NBL debit card allows the customers to
access the ATM network of different location. This allows the cardholders for the enquiry
of the balance, to withdrawal the cash. There are 60 ATM outlets of NBL in the country
and visa debit cards with PIN are issued to the customers to enable 24 hour ATM facility.
This service allows the customers to withdraw the cash even when the bank is closed. So
ATM is more convenient as it allows the customer to withdraw the cash whenever they
required from ATM machine without visiting bank. This save the time of customers.

3.7.4 Remittance
NBL is the oldest bank. So, NBL has largest network of branches in the country. The
fund transferred through NBL is reliable, faster and cheaper. Through the system of
SWIFT, TT and Mail Transfer, western Union Money Transfer Service the remitter can
remit or transfer the fund in Nepal very easily and quickly. Through SWIFT, the remitter
can transfer the money in Nepal or other country by mentioning this banks SWIFT
identity and beneficiary detail. This service helps tourists and other to transfer the fund to
Nepal whenever required.

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3.7.5 Mobile banking
NBL provides mobile Banking service to the customers that provide the available balance
of the accountholders. Now banking services also provides the extra services to their
customers like new product information, cash deposit and withdrawal message, pension
information, alert and notification like loan repayment, transaction alerts, information
services like ATM, product and service etc. The registration fee of Mobile Banking is Rs.
250. It must be renew every year.

3.7.6 Internet banking

NBL is providing internet banking to facilitate the customers. Customers can easily
access to their account in Nepal Bank Limited from their desktop. This service include
balance check, cheque stop, cheque issue, statement print etc. for getting internet
banking, the form should be filled and submitted to the required branch. Then user id and
password will be mailed to the account holder.

3.7.7 Any Branch Banking Services (ABBS)

There are 159 NBL branches that are providing ABBS services to the customers. The
customers can access their account from any online NBL branch. Customers can
withdraw and deposit in their account of closed branch from the branch having evening
counter and extended banking facility. Cash transfer is limitless and this service is charge
less.

3.7.8 ASBA service

NBL also provide Application Supported by Blocked Amount (ASBA) to the customers.
This service started since February 2017. This service is provided to make the share
application process more easier and faster. The amount of Rs. 25 is charged to the
customers. The customers having account in NBL can apply for IPO/FPO share by filling
the C-ASBA application form. The customers can also register to mero share service of
CDSC by providing bank account number and Demat account number through which
they can apply for share from any location through internet.

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 CHAPTER IV

ANALYSIS OF ACTIVITIES PERFORMED

4.1 Background
During eight weeks of internship period, the internee was assigned in different
department. The department head assigned us the work and help us to complete our task.
In NBL, initially internee worked in customer service department for two weeks where
Internee was assigned for enquiry of the balance, handle the customers queries, printing
and issuing of the cheque. In customer service department, internee was given full
responsibility to perform every work of the department due to the shortage of staff. So
there internee performed the work like printing and issuing the statement, helping the
customers to fill the form like account opening form, deposit voucher, cheque, and
providing necessary information to the customers. Then internee was transfer to loan
department for two weeks. There internee learn to deposit and withdrawal the cash
through one entry transaction (i.e DO to deposit cash and WO to withdrawal cash),
sorting of the cash and bundling the cash, assist the teller at the time of large transaction,
counting the cash and balancing the teller i.e verifying the system transaction totals and
cash on hand are in balance at the end of each day. After working one week in cash
internee was assigned to work in loan department. There internee was assigned to open
the gold loan account, to make a call for paying the interest and principle amount of gold
loan. The internee was also assigned to provide IC to the people. After the period of two
week, internee was shifted to pension department where internee was assigned to renewal
the pension of the pension holders. So that was the enough time for the internee to learn
the banking transaction. NBL was the best bank as this bank offers the internee to work
in different department through the support of the staffs.

4.1.1 Customer service department

Customer service department is the department where customers are provided the
required information, delivered the products and services to the customer. It is the front
desk of any organization. This department is one of the important department as it need to
deal with customers more than any other department in the bank. This is the place to
make early impression to the customer. So the image and reputation of the bank depends

18
upon the service provided by this department because it is the place where customer first
get the service. There are many activities performed in this department like balance
enquiry, cheque book issuance, statement issuance, account opening, reactivation of
dormant account, helping the customers to fill the form etc. Activities done by internee at
CSD department are described below.

4.1.1.1 Account opening

Any interested customer who want to open an account in NBL is firstly inquired about
the type of account that customer wants to open. Then customers are provided the
account opening form and they are required to fill that form. After the form is filled, the
form is certified by the internee and submitted to the CSD head for final approval. So
after the final approval, internee opens an account in the bank on the name of respective
customers. There they should first opened screening ID and KYC ID from TAML. Then
only account is opened in the system i.e pumori. The signature card is scanned in the
system for its signature and accountholder verification. Then the customers are provided
the account number and required to deposit at least minimum amount according to the
types of account. If customers want to get ATM service, mobile banking services then
customers are required to fill the form with password size photo and one copy of
citizenship certificate and submit it to the customer service department for its approval
for getting ATM form the bank. The basic requirement for opening new account is
described below.

4.1.1.1.1 Personal account

Personal account means account of single person. For opening personal account
customers should fill the form and submit to the customer service department with
required document. The document required are: one copy of citizenship of account
holder, two password size photo, electricity or water bill or voters card. For nominee
declaration, one copy of citizenship of nominee is needed. The minimum deposit amount
differs according to the type of account like for saving they should deposit Rs.500, for
current account they should deposit Rs.1000. But pension account, samriddha Nepal
Abhiyan Bachat Khata, social security saving, salary saving are opened at zero balance.

19
4.1.1.1.2 Proprietorship account

A business firm registered in the name of person is known as sole proprietorship firm.
For opening proprietorship account, document required are: registration certificate, PAN
certificate, citizenship certificate, two password size photo and latest tax paid certificate.
So the basic requirement for opening this account is to fill the application form and
submit to the concerned department along with required document for opening new
account.

4.1.1.1.3 Partnership account

Partnership firm are the firm registered in the name of more than one individual. The
document required for opening this account are: letter of partnership duly signed by all
partners, certified copy of partnership registration, PAN certificate, tax paid certificate
and citizenship copy of both partners. Then they should fill the form and submit along
with the mentioned document for opening new account. After that account number is
provided and they should deposit Rs.1000 as minimum balance.

4.1.1.2 Balance enquiry

Many people come for balance enquiry in the bank. They provide their account number
or their account name to the internee and internee provide the information of their
balance to the respective account holders. In the case of absence of accountholders, the
detail or balance of accountholder is not disclosed as per the rule of bank. But if they
bring application letter with signature of accountholder and if the signature matches then
the information regarding the balance is provided to them. NBL have facility to provide
the information of balance of any branch of NBL.

4.1.1.3 Issue of cheque or statement

Cheque Books are issued on opening of new account or on use or the loss of previously
issued cheque. For the issuance of cheque, firstly the account holder or the concerned
party should filled the demand slip of the cheque. After the slip is signed by Assistant
Manager of the bank the cheque is printed. After the cheque book becomes ready for
delivery, it should be entry in the cheque book register mentioning account name,
account number, account type and accountholders signature for the proof of its receipt.

20
Then cheque book is stamped and demand slip is signed by Assistant Manager. In case of
loss of cheque book or demand slip, cheque requisition form is filled and Rs. 250 is
charged then cheque book is issued.

Any account holder who wants to have bank statement print are requested to fill up bank
account statement request form mentioning account name, account number, starting and
ending date from which the statement is requested and submit it. In case of individual.
internee verifies account name, account number and signature and then provides the
respective bank statement print to the accountholders. In case of institution, internee
verify stamp and generate statement. If the accountholder is from other nearest branch
then certain fee is charged for printing the statement.

4.1.1.4 Reactivation of dormant account

Usually the account will be on dormancy if the account holder did not do any transaction
over a period of six month. Any customers who wish to reactivate their account must
filled the reactivation form, KYC form and submit to the Assistant Manager for the
verification along with one password size photo and one copy of citizenship for the
signature. The internee removes the dormancy through feature maintenance from pumori.
Then Assistant Manager approve that reactivation of account and accountholder must
deposit or withdrawal the certain amount for their account.

In case the account is from different department, customers should properly filled the
form and submit it along with required document. The internees verifies the signature and
mail it to the concerned department.

4.1.1.5 Cheque inventory

Sometime the printed cheque is not approved or saved. So in such case internee are
allowed to check whether cheque number is saved /approved or not from inventory. For
it they should go to cheque inventory, enter the account number and check whether
cheque number is valid or not. Then they should go to MICR cheque and print in rough
paper with that cheque number then save and approve the cheque number.

21
4.1.1.6 Helping the customers to fill the form
There are different types of customers in NBL. Some are old some are illiterate .so they
face problem in filling the different form like account opening form, reactivation of
dormant form, KYC form, ATM, Mobile banking form. For this type of customers
internee instruct them to fill the form or internee themself fill the form.

4.1.1.7 Handling the customers queries

Different queries of different customers should be handled in effective way so that

customers gets satisfactory solution to their queries. While dealing with customers first
we need to listen the customers queries patiently. Then we should provide the appropriate
information or solution as per the customers need in a polite way. If internee doesnot
have information to the related queries then they should ask to other staffs and provide
the information to the customers.

4.1.1.8 Signature change

If any customer is willing to change the signature, a form called specimen signature card
is given to fill it and submit along with application form to the staff for verification. Then
the signature card is scanned from the system.

4.1.1.9 Coding, scanning and filing

Coding and filing is one of the important task of the help customer service department
staffs. Before scanning of the document like account opening document, signature card
change document, it should be coded in form and coding register book. Those documents
should be properly scanned by showing code, mobile number, account holder detail. So
that it would be easy to search the file for closing of account, change of account holder
and other. Then the form is scanned in the pumori from image system. After scanning
document or form the internee is responsible to file the form properly. There are different
files for filing different documents. Account opening form, closing form ,signature card
change form, mobile banking form, ATM request form are filed in separate file.

22
4.1.1.10 KYC update
KYC is the process of verifying the identity of its clients and assessing potential risks of
illegal intentions for the business relationship. This is the mandatory form every customer
of the bank need to fill. So internee is responsible to provide the information to fill the
KYC in time and help them to fill the KYC. Individual accountholder should bring one
copy of citizenship and one photo and submit with the filled form. Corporate
accountholder should bring copy of firm registration, VAT/PAN certificate, latest tax
paid certificate, citizenship and one photo. Then internee is responsible to update KYC.
Internee should update KYC, TAML and Pumori.

4.1.1.10.1 KYC update procedure

1.The accountholder is requested to fill the KYC form with signature specimen card that
include detail like account name, account number, signature, photo, address, phone
number and other personal detail o f the customers. The customers need to submit the
documents like one copy of citizenship certificate, two photos,

2. Accountholder submit the filled form to the internee for the purpose of checking it.
Then customers submit that form to the Assistant Manager for the signature in the form,

3. After getting verification, internee updates the KYC in both pumori and TAML. while
updating KYC from Pumori, internee should go to client code system and add client
number and update KYC. In TAML internee should go to Google chrome, TAML, and
insert customer ID. Then all the detail of the customers should be filled and updated,

4. The CSD official sign the KYC form by writing updated in the top of the form and
submit for filing for future references.

4.1.2 Cash department

Cash department is one of the important department of the bank as it deals with the
inflow and outflow of the cash. Internee was placed in cash department for teller
balancing .This can be done by inserting cheque balance and deposit voucher balance one
by one in teller voucher of the teller staffs. Then they should check the total balance of
the cheque and deposit voucher with the system entry voucher done by teller staffs from
transaction list. If the balance is equal with the system balance then it inflow and outflow

23
of the cash is correct. This is done at the last hour to balance the cash. If the balance is
not equal then it is necessary to find out the error by comparing the balance and number
of physical cheque with posting balance before 4:30 pm. The internee was also allowed
to deposit cash of the people during the crowd of Ashad. For it first of all go to one entry
trasaction and enter DO or DS for deposit. Then insert account number of the
accountholders then click enter. Then detail of the account number is showed then inserts
other detail like name and phone number and post it. In this way cash is deposited.

4.1.3 Treasury department

IN NBL, gold loan account is opened in treasury department. So internee was allowed to
open new gold loan account. The code of gold loan account is 39. For gold loan account,
it is compulsory to have saving account of the customers in the concerned department.
The document required to open new gold loan account is one copy of citizenship and they
should filled the form properly mentioning their family detail. Clients get the loan
according to the weight of the gold. Then the form is verified by the Treasury staff and
internee is allowed to open the gold loan account. For opening gold loan account, they
should go to loan registry and enter 39 which is the code of gold loan. Then they should
insert client code and open new account by mentioning detail of client, amount. Then the
new account form is provided to the Assistant Manager for checking detail, signature and
its approval for disbursement of loan. Then the cash should be disbursed and allow the
customers to withdrawal the cash from it. They should pay the interest and insurance
charge annually.

In this department the currency was also exchanged. Indian currency was provided with
low charge. For 10000 IC, they charge Rs.15 as commission. Internee was responsible to
exchange the Nepali currency. The client should fill the IC record book with phone
number they should fill the form and submit it along with citizenship certificate. Then
they are provided the amount as prescribed by them. As per the rule of the bank, one
person can get Rs.10000 IC. Before one week of maturity they are not provided IC.
Customers who wish to get IC for the purpose of treatment must bring the application
letter from the hospital and they are provided IC as per their requirement.

24
4.1.4 Pension Department
NBL distribute monthly pension to the retired government officers through its 163
branches of Nepal. During the pension time, the flow of people increases. So internee
was placed in pension department to support the staff. The pension is either provided to
the accountholders or to the nominee in case of pension holder’s death. There internee
was allowed to renewal the pension. For it, the pensioner must fill the renew form and
submit it to the concerned department along with their pension book. Then the internee
put stamp and date on that book and return it to the pensioner.

4.1.4.1 Pension renewal procedure

1. Every pension holder should renew their pension on every six months. At the time of
pension renewal intern provides them pension renewal form and account holder fill all
the required information i.e patta number, name, date, account number and signature.
Intern.ee are responsible to renewal the pension account. The following are the process to
renewal the pension.

1. Go to intranet ,pension management information system and Click government

pension and pensioner information

2. Enter patta number of yellow pension book into pension application system and it
provides the detail of accountholder like account holders name, user id, last renewal
date.
3. Then information will be updated and renewed and the amount should be credited to
the account holders account through multiple transactions entry.

4.1.5Clearing department
Electronic Cheque Clearing (ECC) is an image based system where original paper cheque
is converted into an image for electronic processing of the financial transactions between
participating member of the bank and financial institution. The internee was also placed
in cheque clearing department for assisting the concerned staff of the clearing staff. There
internee got chance for cheque clearance. Firstly the internee was allowed to observe the
process of clearing for one week .then only internee was allow for cheque clearing under
the assistance of Mrs. Sreejana khanal. For cheque clearance there are two method i.e

25
either express or regular service. If the clearing is express then it should be done before
12 PM.

4.1.5.1 Process of cheque clearing

1. First the cheque is collected from the customers. Then the staffs of the department
check the thing like date of the cheque, account payee cheque, account name and account
number, signature etc. The cheque should be stamped properly.

2. From explorer click to ECC and input the cheque in the system through ECC scanner.
The staff should fill the remaining detail like BFD account, batch amount of voucher,
cheque number. Then cheque is scanned, saved and uploaded in the system.

3. The detail of the cheque is inserted through edit and fill the detail of the cheque like
cheque number, amount of the cheque, date and save it in the system and send for
approval.

4. The report is generated in the system like cheque rejected, presented. The staff check
the detail and and if everything is right the amount of the cheque is deposited in the
respective account.

5. In the case of rejection of the cheque, customers are called for taking the cheque and
certain fee is charged for it.

26
 CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1 Lesson learnt
Internship is the implication of the the theoretical knowledge as well as practical
knowledge to map actual situation of the workplace. It assist students to understand the
real working situation of the organization. The internee was placed in different
department from which internee learnt about the real working life, working procedure of
the bank, to cope with the real working environment. The two month period has been
valuable and helpful period in learning and developing interpersonal skills, analytical and
technical skills. Internship was an opportunity to get a practical exposure to the working
environment. This bank is the platform to show ability to perform the task, the
importance of time management. During the period of internship the internee were
guided by the staffs for performing the task. The internee was assigned in CSD, cash
department, loan department and pension department where intern learnt real life working
experiences which are explained below;

5.1.1 Punctuality and timeliness

As punctuality means to complete the assigned task within the time. So internship in
NBL taught me to be present in office time, to complete the assigned work in given
period of time. It was difficult to manage time as internee had to wake up early in the
morning to go to college, had lunch and be there at work exactly at 10 AM which was
challenging as late attendance and performance of the work is often seen as disrespect. So
internee must be present at 10 AM. Internee must do the assigned work as fast as
possible. During first hour, customer service department is pack. So it was the great
challenge to the internee to reduce the number of customers by solving their queries,
enquiring their balance, printing and issuing the cheque, statement as fast as possible,
helping the customers to fill the various type of form. In cash department the internee
must do teller balancing within specific time at the end of the day. They also have to find
out the error by comparing the balance and number of physical cheque with posting
balance before 4:30 PM. Through this internee learnt to perform the assigned task within
time. So punctuality is the main important thing that internee learnt in NBL. This

27
schedule help me to manage time and decide what to do and how to do the work within
specified time.

5.1.2 Networking and socialization

In bank internee had to interact with staffs, customers that help to establish network.
Internee learnt to be socialize with professional, customers, and staffs that would be
helpful to perform the task properly. Internee learned to communicate properly in polite
manner with the people by improving interpersonal skills. This helps to maintain good
relationship between client and bank. The more socialized internee became the more will
be the positive response from customers, staffs that lead to get positive result through the
increase of efficiency and effectiveness.

5.1.3 Building competency

During the period of internship, internee was assigned to work in different department.
Internee communication and interpersonal skill was developed while working in CSD as
they had to deal with the customers, solve their queries. The competency of using the
software was developed.

5.1.4 Self sufficiency

In NBL due to the lack of staff, internee had to perform all the task themself. Staffs had
to depend on internee to get job done in time. During the period of internship there were
three intern who were working as much as the staffs. From that internee learnt to became
self sufficiency. Internee was able to build capacity to perform the banking work without
staff assistance. Internee was able to build confidence to do the work properly, deal with
customers, open new account like saving, current etc.

5.1.5 Be patient
Every internee should be patient and calm leaving their tension, angriness, frustrations at
home. Internee should change their behavior and attitude according to the task. Internee
should talk to the customers in friendly and polite way and solve the queries of the
customers. Behaving with the staff in polite way and responding to them properly is the
key point to bring positive result. Whatever the situation arises, internee should be calm
is the main thing that internee learnt.

28
5.1.6 Difference between theory and practice
It’s hard for new graduates to start working because the thing that we learnt in our college
is totally different from practical work. It is not applied in real working life. So this
internship had helped me to understand the differences of theoretical and practical
implication. This internship had prepared me to work in bank with full confidence,
develop interpersonal skills etc.

5.2 SWOT analysis

SWOT analysis is the process to analyze strength, weakness, opportunities and threats
involved in a project or business organization. It involve identification of internal and
external factor that are favorable and unfavorable to achieve the objective of any business
organization. The SWOT analysis classifies the internal aspects of the company as
strength or weakness and the external situational factors as opportunities or threats.
Strengths can serve as a foundation for building a competitive advantage and weakness
may hinder it. Factors in the area like company image, organizational structure, financial
resources etc. are the internal factors that should be evaluated properly. An opportunity is
the chance to introduce a new product or service that can generate superior returns. The
strength, weakness, opportunities and threat of Nepal Bank Limited are explained below.

5.2.1 Strength of NBL

1. Strives towards enhancing customers satisfaction by providing professional quality
banking services with integrity through continuous improvement in the services and
processes,

2. NBL is the first, oldest and successful bank among the commercial banks that build
trust among the customers towards the bank,

3. NBL’s employees are dedicated and committed towards their work. They work up to
late hour and try not to keep the work pending.

4. Use of advanced technology, introduction of Electronic delivery channels like ATM,

mobile banking, internet banking etc that helps to increase the speed of delivery of
service to the customers,

29
5. Friendly working environment that enhance team work. This lead to perform the work
in effective and efficient way,

6. Wide geographical coverage with the establishment of 163 branches in all part of the
country.

5.2.2 Weakness of NBL

1. There is lack of adequate staffs that cause overload of work to the existing staffs or
pending of the work increases in Thimi branch,

2. There is the lack of facilities like enough chair, fan facility to the customers as well as
staffs that increase dissatisfaction among the staffs and customers,

3. There is frequent technology problem like system breakdown, lack of computers, and
available computers are not working properly that hamper for the delivery of service in
time and increase dissatisfaction of the customers,

4. There is lack of coordination between the staffs of cash and loan department.

5.2.3 Opportunity of NBL

1. Expansion of branch network across the country is the main opportunity of the bank.
There are 163 branches in the different part of the country which are providing banking
services to the people like deposit, loan that help to uplift the living standard of the
people that help for the development of country too,

2. NBL facilitate for technology innovation like ATM, mobile banking, internet banking
etc. that will increase the flow of customers. As customers always want that service
which are convenient and quicker to use. So by expanding ATM and other service it will
increase the flow of customers.

5.2.4 Threat of NBL

1. There is high competition in the market due to the establishment of many financial
institutions. It divides the customers by providing better service to the customers.

30
Customers want better service so they choose those financial institution that provide
better and quicker services,

2. Threat of substitute product is also the major threat NBL. There are various number of
financial institutions that are providing better service and facilities. They are offering
same product,

3. The rules and regulation of the bank and financial institution changes frequently by the
government. As laws and regulations govern the bank and protect from financial risk and
frauds. So frequent change in rules, policies may hinder the work efficiency.

5.3 Conclusion
Nepal Bank Limited begins the history of formal banking in the country and has been
contributing for the development of nation. NBL is the oldest and leading commercial
bank of Nepal providing the different services through its 163 branches. NBL provides
not only financial products but also focus on customer satisfaction by providing efficient
and diversified services through improved technology. NBL is playing important role in
facilitating its customers and building trust of the individual. Currently NBL has
increased its services like internet banking and many other innovative product and
services that contribute for consumer satisfaction. It has been providing different type of
loan facility with low interest rate to the common people that contribute for the
development of society and nation.

As internship is the first step of learning experience at work environment after studying
the theoretical knowledge in college. Intern at NBL was involved in different department
like customer service department, cash department, loan department etc. and gather the
practical experience about functioning of those department. Internee observed and did
different types of activities that aid in the development of interpersonal skill,
communication skill and build competency that broadened internee knowledge,
perception regarding the work, confidence etc. to perform in real working environment.
NBL was the platform to develop their skill as it provide access to use Pumori. Working
in CSD made to be familiarized with the different kind of work, let internee deal with the
customers crowd. Internee got the experience of handling the cash, aware of critical

31
aspects of making payment, counting cash, shorting cash, finding errors etc. so this
experience will be beneficial in the present time as well as future while working in real
life.

32
References

Aryal, L. P. (2019). Nepal Rastra Bank Exam Preparation Book. Kathmandu: Himalaya
Prakashan Pvt.Ltd.

Banking in Nepal:A History of Banking System in Nepal. (n.d.). about us: Banking in
Nepal: A History of Banking System in Nepal. Retrieved 07 19, 2019, from
Banking in Nepal website: http://www.imnepal.com

Edusanjal. (n.d.). Edusanjal. Retrieved from Edusanjal / course website:

http://www.edusanjal.com

Evolution and Growth of Banking in Nepal. (2009, 09 01). Evolution of Banking Sector
in Nepal. Retrieved 07 19, 2019, from Evolution of Banking Sector in Nepal:
http://sarojtiwari.blogspot.com

Faculty of Management. (n.d.). About us:Faculty of Management. Retrieved 06 19, 2019,

from Tribhuvan University Website: http://www.fomecd.edu.np

Nepal Bank Limited. (2019). About us: Nepal Bank Limited. Retrieved 07 20, 2019, from
Nepal Bank Limited website: http://www.Nepalbank.com.np

Nepal Rastra Bank. (2018, 07 01). Nepal Rastra Bank. Retrieved from Nepal Rastra Bank
website: http://www.nrb.org.np

Smirti Chand. (n.d.). Banking: The Evolution, Origin and Growth of Banking

TIMES HIGER EDUCATION(THE). (2019, 04 10). TRIBHUVAN UNIVERSITY.

Retrieved 2019, from http://www.times higher education.com

Tribhuvan University. (2018). about us:Tribhuvan University. Retrieved from Tribhuvan

University Web Site: http://www.Tribhuvan University.com

33
 Appendix 1

List of A class Commercial Banks

S.No Name operation date(A.D) paid up capital(crore)

1 Nepal Bank Limited 15/11/1937 804.27
2 Agriculture Development Bank Ltd 21/01/1968 1393.79
3 Nabil Bank Ltd 12/07/1984 804.32
4 Nepal Investment Bank Ltd 09/03/1986 1064.56
5 Standard Chartered Bank Nepal Limited 28/02/1987 801.14
6 Himalayan Bank Ltd 18/01/1993 811.45
7 Nepal SBI Bank Ltd 07/07/1993 804.69
8 Nepal Bangladesh Bank Ltd 06/06/1994 808.81
9 Everest Bank Ltd 18/10/1994 810.69
10 Kumari Bank Ltd 03/04/2001 596.95
11 Laxmi Bank Ltd 03/04/2002 822.17
12 Citizens Bank International Ltd 20/04/2007 803.32
13 Prime Commercial Bank Ltd 24/09/2007 803.33
14 Sunrise Bank Ltd 10/12/2007 815.26
15 Century Commercial Bank Ltd 10/03/2011 806.34
16 Sanima Bank Ltd 15/02/2012 800.13
17 Machhapuchhre Bank Ltd 09/07/2012 805.57
18 NIC Asia Bank Ltd 30/06/2013 803.11
19 Global IME Bank Ltd 09/04/2014 888.84
20 NMB Bank Ltd 18/10/2015 646.18
21 Prabhu Bank Ltd 02/12/2016 800.13
22 Siddhartha Bank Ltd 21/07/2016 846.44
23 Bank of Kathmandu Ltd 14/07/2016 624.54
24 Civil Bank Ltd 17/10/2016 725.93
25 Nepal Credit and Commerce Bank Ltd 01/01/2017 467.91
26 Janata Bank Nepal Ltd 07/04/2017 800.08
27 Rastriya Banijya Bank Limited 02/05/2018 900.48
28 Mega Bank Nepal Ltd 13/05/2018 928.68
(source:www.nrb.org.np/2018)

(Note: from below Machhapuchhre bank, all the date of bank are listed after merger)

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 Appendix 2

Types of saving account with interest rate

Deposit type Interest rate (%)

Normal saving 6.5
NBL diamond saving 6.5
Women special saving 6.5
Yuva bachat khata 6.5
Santati saving account 6.5
NBL staff pension saving 6.5
Remittance saving account 6.5
Investors Saving account 6.5
Senior citizen special saving 6.5
Professionals saving 6.5
Social security saving account 6.5
Pension payment saving account 6.5
NBL special saving 6.5
Earthquake relief fund account 6.5
NBL staff salary saving 6.5
Salary saving account 6.5
Nari samman bachat khata 6.5
Sambandha bachat khata 6.5
Nagarik batchat khata 6.5
Samriddha Nepal abhiyan bachat khata 6.5
(Source: www.nbl.com.np)

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 Appendix 3
Organization structure of NBL

Management Committee

Audit committee

Management
Committee Secretariat Chief Executive Inspection and Internal
Officer Audit

General Manager General Manager

D.G.M D.G.M D.G.M D.G.M D.G.M

Accounts Credit HR IT/MIS KBO

Management

Branch
Corporate Legal Marketing
Management
Planning Cell

Management
Support
Central
Finance

(Source: www.nbl.com.np)

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 Appendix 4

Types of loan and interest rate

S.No Loan Type Interest Rate(%)

1 Gold and Silver Loan BR+4.16
2 Industrial Term Loan BR+2.55 TO BR +3.16
3 Real Estate-Housing plan term loan BR+ 3.19 to BR+ 3.80
4 Real Estate-Commercial Complex BR+ 2.19 to BR+2.80
5 Hypothecation BR+3.05 TO BR+ 3.66
6 Overdraft BR+ 3.05 to BR+ 3.66
7 Pledge Loan BR+ 3.05 to BR+3.66
8 Mortgage Working Capital BR+ 4.05 to BR+ 4.66
9 Mortgage Term Loan BR+4.05 to BR+ 4.66
10 Sajilo Byabasaya Karja BR+ 3.19
11 Agriculture Loan BR+ 2.00
12 Loan against first class bank guaranee BR+ 1.55 to BR+ 2.16
13 Loan against FD receipt Coupon Rate+ 2.00
14 Hire Purchase Loan BR+ 3.55 to BR+ 4.16
15 Sahuliyatpurna Karja BR+ 2.00
16 Private vehicle 5 years term BR+ 2.55 to BR+ 3.16
17 Private vehicle 7 years term BR+ 3.55 to BR+ 4.16
18 Private vehicle business use 5 years term BR+ 3.55 to BR+4.16
19 Commercial Vehicle 3-5 years term BR+ 3.55 to BR+ 4.16
20 NBL Professional Auto Loan BR+1.55 to BR+ 2.16
21 Home Loan 5 years term BR+ 1.55 to BR+ 2.16
22 Home Loan 10 years term BR+ 2.19 to BR+ 2.80
23 Personal Overdraft- Professional BR+3.55 to BR+ 4.16
24 Education Loan- 5 years term BR+1.05 to BR+ 1.66
25 Margin Lending up to 10 million BR+ 4.05 to BR+5.02
26 Margin Lending -10 million above up to 50 million BR+ 3.55 to BR+ 4.52
27 NBL Professional Overdraft Loan BR+ 3.19 to BR+4.16
28 NBL professional Term Loan BR+1.69 to BR+ 2.66

Note (Interest rates are effective from shrawan 17, 2076)

(Base Rate(BR) as of Ashad end 2076: 7.98%)

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38