FUNCTIONS OF CUSTOMER SERVICE DEPARTMENT

OF NABIL BANK LITIMED, MAITIDEVI BRANCH,

KATHMANDU

AN INTERNSHIP REPORT

BY
DEEPENDRA JOSHI
Exam Roll No. 938/15
T.U. Reg No. 7-2-0032-0007-2015

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

i
ii
FUNCTIONS OFCUSTOMER SERVICE DEPARTMENT
OF NABIL BANK LITIMED, MAITIDEVI BRANCH,
KATHMANDU

AN INTERNSHIP REPORT

BY
DEEPENDRA JOSHI
Exam Roll No. 938/15
T.U. Reg No. 7-2-0032-0007-2015

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

iii
 STUDENT’S DECLARATION
I hereby declare that the internship report entitled, FUNCTIONS OF CUSTOMER
SERVICE DEPARTMENT OF NABIL BANK LIMITED submitted to the Faculty of
Management, Tribhuvan University, Kathmandu is an original peace of work under the
supervision of Bikash Shrestha, 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.

-------------------
Deependra Joshi
26-09-2019

ii
INTERNSHIP CERTIFICATE

iii
.

APPROVAL SHEET

This is to certify that the Internship Report

Submitted By:
DEEPENDRA JOSHI

FUNCTIONS OF CUSTOMER SERVICE DEPARTMENT OF NABIL

BANK.LTD

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.

………………. ………………… ………………….

Bikash Shrestha Narayan Prasad Aryal Dr.Golman Gurung

Supervisor Program Director Campus Chief

iv
 ACKNOWLEDGEMENTS
The report entitled FUNCTIONS OF CUSTOMER SERVICE DEPARTMENT OF
NABIL 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, Bikash Shrestha,

for the guidance, constant supervision and clarification. Secondly, I am extremely
thankful to my campus chief Dr. Golman Gurung, program 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 Kapil K.C, Branch Manager Maitidevi
branch. In addition, I would like to thank my supervisor Anita Rayamajhi for her proper
guidance, suggestion and encouragement for directing intern to the right track despite of
her busy schedule and would like to thank Uttara Khatri, Smriti Pandey, Devendra
Bahadur Khadka, Rojita Maharjhan, Radha Malla for their kind co-operation and support
during internship period despite of their busy schedule. Also I would like to thanks the
then operation in charge Umesh Timilsina for placing me in customer service department
and CSD staff Smriti Timilsina for her 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.

Deependra Joshi

September, 2019

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 TABLE OF CONTENTS

TITLE PAGE ..................................................................................................................... ..i

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

INTERNSHIP CERTIFICATE .......................................................................................... iii

APPROVAL SHEET ......................................................................................................... iv

ACKNOWLEDGEMENTS ................................................................................................ v

TABLE OF CONTENTS ................................................................................................... vi

LIST OF TABLES .............................................................................................................. x

LIST OF ABBREVIATIONS ............................................................................................ xi

CHAPTER I ........................................................................................................................ 1

INTRODUCTION .............................................................................................................. 1

1.1 Background ............................................................................................................... 1

1.2 Objectives .................................................................................................................. 3

1.3 Methodology ............................................................................................................. 4

1.3.1 Organization selection ............................................................................................ 4

1.3.2 Placement............................................................................................................ 5

1.3.3 Duration .............................................................................................................. 6

1.3.4 Activities ............................................................................................................. 6

CHAPTER II ....................................................................................................................... 8

INTRODUCTION OF THE BANKING INDUSTRY ....................................................... 8

2.1 Background ............................................................................................................... 8

2.2 Meaning and definitions of banks ............................................................................. 9

2.3 Evolution and growth of banks in Nepal ................................................................. 10

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 2.4 Types of banks ........................................................................................................ 12

2.5 Introduction of commercial bank ............................................................................ 13

2.5.1 Functions of commercial bank ......................................................................... 14

CHAPTER III ................................................................................................................... 16

INTRODUCTION OF THE NABIL BANK LIMITED .................................................. 16

3.1 Background ............................................................................................................. 16

3.2 Vision and mission .................................................................................................. 17

3.3 Objectives ................................................................................................................ 17

3.4 Product and services ................................................................................................ 18

3.4.1 Corporate banking ............................................................................................ 18

3.4.2 Infrastructure and project financing ................................................................. 19

3.4.3 Retail lending .................................................................................................... 19

3.4.4 Deposit product and services ............................................................................ 21

3.4.5 Bancasurrance ................................................................................................... 24

3.4.6 Cards and e- banking ........................................................................................ 24

3.4.7 Remittance services .......................................................................................... 25

3.4.8 Other products and services ........................................................................ 26

3.5 Ownership structure ................................................................................................ 27

3.6 Organization structure ............................................................................................. 28

3.7 Financial highlights ............................................................................................ 29

CHAPTER IV ................................................................................................................... 30

ANALYSIS OF ACTIVITES PERFORMED .................................................................. 30

4.1 Background ............................................................................................................. 30

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 4.1.1 Account operation............................................................................................. 30

4.1.2 Handling customer queries and calls ................................................................ 32

4.1.3 Documentation and record keeping of the document ....................................... 32

4.1.4 Issuing and delivering cheque books, debit card and ebanking password ....... 32

4.1.5 Balance inquiry and bank statement dispatching ............................................. 33

4.1.6 Providing different forms and information along with filling up the forms ..... 34

4.1.7 Photocopy, scanning and updating the different form in WDMS .................... 34

4.2 Problem identified and solved ................................................................................. 34

4.2.1 Problem-related to the change of rules and regulations ................................... 34

4.2.2 Problems related to the malfunctioning of the ATM Machines ....................... 34

4.2.3 Problems related to the mistakes due to the error in the system....................... 35

4.2.4 Problems related to the nonfunctioning of various services ............................. 35

CHAPTER V .................................................................................................................... 36

CONCLUSION ................................................................................................................. 36

5.1 Lesson learnt ........................................................................................................... 36

5.1.1 Punctuality ........................................................................................................ 36

5.1.2 Sense of responsibility and accountability ....................................................... 36

5.1.3 Professionalism ................................................................................................. 37

5.1.4 Working skills................................................................................................... 37

5.1.5 Coordination and cooperation .......................................................................... 37

5.2 SWOT analysis ........................................................................................................ 37

5.2.1 Strength ............................................................................................................. 38

5.2.2 Weakness .......................................................................................................... 38

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 5.2.3 Opportunities .................................................................................................... 38

5.2.4 Threats .............................................................................................................. 39

5.3 Conclusion............................................................................................................... 39

References

Appendix

ix
 LIST OF TABLES
Table 1. 1 Placement and duration of internship ................................................................ 6

Table 2. 1 Types of bank along with their minimum paid up capital requirement and their
total numbers ..................................................................................................................... 12

Table 3. 1 Share ownership structure ................................................................................ 28

Table 3. 2 List of board members ..................................................................................... 29

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 LIST OF ABBREVIATIONS

% : Percentage

ASBA : Application Supported by Blocked Amount

ATM : Automated Teller Machine

BAFIA : Bank and Financial Instution Act

BBA : Bachelor of Business Administration

BBA-F : Bachelor of Business Administration in Finance

BBM : Bachelor of Business Management

BC : Before Christ

BHM : Bachelor of Hotel Management

BIM : Bachelor of Information Management

BPA : Bachelor of Public Administration

BTTM : Bachelor of Travel and Tourism Management

C-ASBA : Centralized Application Supported by Bank Account

CB : Corporate Banking

CD : Certificate of Deposit

CPC : Central Processing Centre

CRN : Client Registration Number

CSD : Customer Service Department

CV : Curriculum Vitae

EMI : Equated Monthly Installement

FDI : Foreign Direct Investment

FoM : Faculty of Management

HRD : Human Resource Department

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IPF : Infrastructure and Project Planning

KYC : Know Your Customer

MBA : Master of Business Administration

MBA- Master of Business Administration in Global Leadership

:
GLM Management

MBA-IT : Master of Buiness Administration in Information and Technology

MBM : Master of Business Management

MFC : Master in Finance and Control

MHM : Master of Hotel Management

MPA : Master in Public Administration

MTTM : Master of Travel and Tourism Management

NRB : Nepal Rastra Bank

OI : Operation Incharge

PoS : Point of Sale

SBUs : Strategic Business Units

SMC : Saraswati Multiple Campus

SWIFT : Society for Worldwide Interbank Financial Telecommunication

TU : Tribhuvan University

WDMS : Web Based Data Management System

xii
 CHAPTER I

INTRODUCTION
1.1 Background

Tribhuvan University (TU), which was established in 1959, is the first national institution
of higher education in Nepal. The university was established with the objectives to
prepare capable human resources required for the overall development of Nepal, to
impart standard higher education, to protect and develop national culture and tradition, to
involve in extensive, empirical and timely creation of knowledge and research in the
fields of arts, science, technology and vocation. The university is running four faculties
i.e., faculty of management, faculty of education, faculty of law and faculty of humanities
and social sciences. Besides this, university is also running five technical institutes i.e.,
institute of engineering, institute of forestry, institute of medicine, institute of agriculture
and animal science and institute of science and technology (Tribhuvan University, 2009).

The Faculty of Management (FoM), Tribhuvan University has its ultimate objective of
educating students for professional pursuits in business, industry, and government. It is
further dedicated to enhancing the knowledge and understanding of business and public
administration. It has been running different programs in bachelor level, master level and
post graduate level under yearly and semester system. In bachelor level FoM is running
BBS in yearly system whereas in semester system it is running BBA, BIM, BBM, BPA,
BBA-F, BTTM and BHM. Likewise in master level in semester system FoM is running
MBA, MBM, MFC, MPA, MTTM, MHM, MBA-IT, MBA-GLM. Currently, FoM has
introduced MBS in semester system all over the nation (Colleges Nepal, 2015). All the
programs under FoM has its own specific objectives like to prepare middle and top level
professional managers capable of handling business in dynamic global, to produce
socially responsible and creative entrepreneurs capable of promoting business and
industry for the socio-economic development of Nepal, to conduct research and
management development programs for enhancing the knowledge and skill base of
academics and practicing managers, to innovate and promote management programs
catering to the various social and economic sectors of Nepal, to establish linkages with
leading universities and management institutes abroad and collaborate with them in

1
programs development and implementation, and to develop managers for public sector
with competency in public policy management (Tribhuvan University, 2009).

A college education will help a graduate into a profession by conferring a degree, which
demonstrates an academic proficiency in various theoretical and practical examples of
ways that a job might be performed. The education we get in college will provides us the
theoretical knowledge that helps us to grow in our professional life. An internship is a
period of work experience within an organization or company, usually undertaken by
university students or a recent graduate who is looking to gain relevant skills and
experience in a field. Internships can be full time or part time, paid or unpaid, and can last
from week to a year, depending on the department and company in question. In today’s
competitive market only having good degree is no longer enough. Thus, more and more
students look for additional experience to give them the edge when applying for graduate
positions. Internship will help gain invaluable professional experience as well as will help
the intern to grow their self-confidence and self-esteem.

Thus, the four year BBM program at Saraswati Multiple Campus (SMC), Kathmandu
affiliated to TU is one of the latest programs in FoM which was started in the year 2013
by giving affiliation to six colleges outside the valley. In 2014, TU provided affiliation to
two colleges inside the valley they were Nepal commerce Campus (NCC) and Saraswati
Multiple Campus (SMC). Now, in more than thirty plus college both private and public
are teaching BBM program. The program aims to provide students practical as well as
theoretical education to give professionalism to student so they can cope with the recent
trends of market as well as to suit the economic need of the country. To gain the practical
as well as real life situation education student are required to undergo through internship
program in eighth semester for the partial fulfillment of Bachelor of Business
Management degree which carries six credit hours out of one hundred twenty credit hours
of total BBM course. Students are compulsorily required to go through eight-week
internship period aiming to train and prepare students for future professional career
development, managerial functions, develop interpersonal relationship and
communication skills by putting them in real-life job situations happening in the
organization .

2
Internship also increases the likelihood of building professional networking contacts and
mentoring relationships. Internship help students become viable, experienced job
applicants when seeking employment after graduation. In fact, many employers
considering internship experience in the hiring process, and often look to their own
interns as the best potential candidates for full time positions. Internship program is a
feature of TU, BBM program that is compulsory to fulfill the partial requirement for the
degree of BBM, which provides the perfect platform for the students to utilize their
theoretical knowledge in real life situations. It is relatively short-term in nature with the
primary focus of getting on-the-job training. It helps them to observe study and explore
new facts and understand how an organization actually functions. In simple words, the
internship programmed is designed with opportunity of learning how to translate the
theoretical knowledge into wise actions through exposure to a real organizational
environment. Summing up, internship provides the students with the real life working
practices that theoretical part of BBM was not able to fulfill.

To fulfill these criteria, the intern of this report chooses to work with Nabil Bank, a first
joint venture bank in Nepal. The intern was much interested to learn about a service
industry. The intern especially chooses to learn about the emerging trend of banc
assurance services provided by the banks. Being a new service in Nepal, it is a topic not
studied before. The intern wanted to study about current service provided by Nabil,
whether the customers are satisfied or not. And what additional service would be valued
by the customers, and how can Nabil build an edge to capture the bancassurance service
market. After the completion of the internship, it is mandatory for the student to submit a
report based on the experience gained and knowledge of the institution. This report is
based on the internship done in Nabil Bank Limited at Maitidevi Branch, 8 week period
began from 23rd April, 2019 to 23rd June , 2019 .As an intern, it was a privilege to
perforce various activities in Customer Service Department (CSD) of NABIL Bank,
Maitidevi branch.

1.2 Objectives

The internship provides the opportunity for the practical exposure of theoretical
knowledge. The general objective of the internship program was to enable the students to

3
transform the academic knowledge learned for the years into the practical real life world.
Beside this internship program helps to provide the insights on the organization working
culture, its structure, and risk associated with it and how to deal with such complexity or
risk. In addition, it helped to developed report writing skills. Others objectives of
internship were as follows:

1. To explore in a real life working environment in banking industry;

2. To identify appropriate working procedure and interpersonal communication skills to
deal with customer;
3. To understand the corporate culture and banking system of Nepal that affect
customer;
4. To identify various products and services offered by the banks in Nepalese market

1.3 Methodology

This study has followed the descriptive method. The information is collected through
observation, interview and analyzed accordingly. Completion of the internship is a
combination of different types of activities. It starts from the selection of the organization
for the internship, performance of different kinds of activities and placement in different
parts of organization and at last collection of various primary and secondary data for the
preparation of the report. In terms of data collection, both primary as well as the
secondary sources had been used. Primary sources include observation of the working
environment, direct interaction with customers, interaction with staffs at different levels
of bank and personal experience and involvement in operations conducted and
information accessed. Secondary sources include annual report and brochure of NABIL
Bank Limited, website of the Nabil bank, publications, and journal.

1.3.1 Organization selection

The organization job fit and employee organization fit is always the basis for every
selection process. Selection of the organization for the internship program is always a
crucial task because success in the fulfillment of the objectives of the internship
completely depends on the type of the organization that has been selected. The intern
need to select organization, which could help them to learn various aspects in the

4
working environment, build up the confidence level, and develop the interpersonal skills.
As being BBM student and having specialization in entrepreneurship, it was crucial and
difficult task to select the sector in which intern can do internship. As Intern was more
interested in doing internship in a financial institutions and to select the best institutions
was too tough job. Then as bank was a good option to use intern theoretical knowledge
that intern have gained from different sources during three and half years of campus and
to broaden intern spectrum of knowledge about the banking, business and financial
sector. So, Intern selected NABIL Bank Limited for doing internship as it was first joint
venture bank and largest commercial bank in private sector which follows standard
business procedure and contains good organizational culture. Intern thought that it would
give an opportunity to realize theoretical knowledge into practical field.

In this competitive market only by our choice it's not easy to get interns in reputed
organization. College provided recommendation letter which intern dropped in the
Human resource department (HRD) of NABIL Bank Limited Head office at Beena
Marga, Teendhara, Durbar Marga, Kathmandu along with Curriculum Vitae (CV). After
screening CV by the authority of HRD, appointment letter is duly provided from the
corporate office suited at Durbar Marga, the intern was assigned at Nabil Bank Maitidevi
Branch for the duration of 8 weeks. So intern started working there from 23rd April 2019
to 23rd June 2019.

1.3.2 Placement

On 23rd April 2019 intern was placed in NABIL Maitidevi branch to start his internship.
There the intern met the then Operation In charge (OI) and as per his requirement intern
was placed in Customer Service Department (CSD) under the supervision of CSD head
Mrs. Anita Rayamajhi. Intern was required to handle all the activities of the department
under the guidance and supervision of CSD head. The intern was kept in CSD for whole
duration of the internship. In this department, intern got an opportunity to deal with the
customer in real environment. Intern learnt to open their account, check their balance,
issuing cheques and their banking transactions statement and other activities related to its
department. In addition, the other staffs were equally cooperative and helped to learn the
activities of the department.

5
1.3.3 Duration

The duration of internship has been defined for eight weeks or six credit hours of
working time at the organization by FoM, TU. Therefore, in order to fulfill this
requirement, internship was done for eight-week period from 10a.m. to 5 p.m. on each
working day except for Friday. Regarding Friday, the time of internship was 10 a.m. to 2
p.m. During the period of internship, intern worked the entire period in CSD and the bank
had monitored the activities and performance. This internship program has been very
fruitful for the intern to get real life experiences of the banking activities and was able to
develop his/her knowledge, build up his/her confidence level and develop interpersonal
and communication skills and it will definitely help in upcoming days. The eight weeks
of internship period as positioned in Maitidevi branch are as follows.

Table 1. 1

Placement and duration of internship

Name of Department Weeks

Customer Service Department (CSD) 1-8 weeks

1.3.4 Activities

During the internship, Intern got the opportunity to perform different activities of the
department. The first 2-3 days intern spent gaining information from the staffs of
Maitidevi branch, and then after knowing that, intern spent in the information counter
where intern had serve the customers with various information. The major task in
customer service department was to cope with the customers that come with variety of
problems and queries. Intern was supposed to provide general banking information like
opening new account procedure, requirements, filing of various forms and help them to
fill up the different vouchers and forms

Since the limited access was given by the bank, intern was not given to operate the
system. So, mostly intern got the time to do clerical works like issuing checkbooks,
sorting files and checking debit cards. However intern got an opportunity to learn many
things by interacting with the customers and staffs too. The following were the works
performed in Nabil Bank during internship:-

6
1. Filling of account opening form, cheque books, and other necessary documents
2. Updating new account and Know Your Customer (KYC) document in Web Based
Data Management System (WDMS)
3. Photocopy and scanning the document
4. Handling telephone calls
5. Handling customer’s queries
6. Opening and closing of accounts
7. Entering the records in register
8. Distributing the cheque books and the Debit cards
9. Lockers information
10. Issuing of new cheques books to customer
11. Balance inquiry and bank statement dispatching
12. Providing and filling up Application Supported by Blocked Amount (ASBA) and
Centralized Application Supported by Bank Account (CASBA) registration form
13. Filling different types of forms.

7
 CHAPTER II

INTRODUCTION OF THE BANKING INDUSTRY

2.1 Background

The concept of banking is not a modern concept. The concept of banking was born when
the early people learned to exchange goods and commodities. The banks and banking
industry today are the result of evolution of banking since hundreds of years ago. It is
impossible to say exactly when banking properly began. However, evidence shows it may
have properly started around 8000 BC, although these were not banking in the way that
we see things now. It was more record keeping of trades that were being made (World
Bank, n.d). The word 'bank' is believed to be of Germanic origin, cognate with the French
word "banque" and the Italian word "banca", both meaning "bench", derived from the
practice of Jewish money changers who used to do business sitting on benches in the
market place.

In 12th century, banks were established in Greece which was doing the business of
receiving deposits and lending money. The bank of Venice founded in 1157 was the first
public banking institution. The Bank of Barcelona and the Bank of Geneva were
established in 1401 and 1407 respectively. The bankers of Lombardy, a district in North
Italy, settled in the locality which is now known as the Lombard Street in London and the
credit of planting the seed of modern banking in England goes to them. Public banks like
the Bank of Amsterdam was established in 1609 and these banks helped in the
development of trade and commerce. These banks began the settlement of mercantile
payments through cheques (Shodhganga.inflibnet, 2019).

The development of banking can also be credit to goldsmiths of England. At first,

deposits were made without interest, but when such deposits were lent profitably by the
goldsmiths, they started giving interest on the deposited money instead of charging any
fee for safeguarding the money. In 1694 the Bank of England was established with its
monopoly of issuing notes. In 1791 Bank of United States was established with provided
right to issue notes equivalent to it capital. Similarly, Bank De France was established in
1807 in France. The banking institutions are found to have been flourished in eighteenth

8
and nineteenth centuries in European and American countries. The banking institutions
are found to be developed with the development of industries which shows the
contribution of trade and industries in such progress. The development of banking cannot
be comprehended only by looking at a point of time. It is the result of experiences of
centuries and movement from one stage to another (Hameed, 2012).

Presently, banks are not only the deposits collecting and loan lending institutions but also
the institutions which helps its customers from various ways as per their convenience and
ability with full security. They had been developed as the essential service providing
institutions in this rushing world. The banks had started affecting the lifestyle of the
citizens as well as the economy of the country as well. The recent recession of 2008 is the
outcome of the inefficient banking practice and the world had to suffer much only
because of the inefficiency and negligence of a single banking sector. Hence, banking
had become an important element of the world economy in the present time.

2.2 Meaning and definitions of banks

A financial institution is a company engaged in the business of dealing with monetary

transactions, such as deposits, loans, investments, and currency exchange. A bank is a
financial institution licensed to receive deposits and make loans. In this way, a bank is a
sensitive sector of the industry because it plays with public money. A bank perform a
highly appreciable function in the economy by offering relatively safe, convenient, liquid
and accessible securities and the same time by accepting relatively risky, illiquid
inconvenient long time and large denomination securities offered by the borrower. Such
an intermediation encourages savings and entrepreneurship in the society by bringing
together and resolving fundamentally variant financing requirement of household,
business and governments (Shrestha, 2006).

Banks are financial institution that fund in the form of deposits, repayable on demand or
in short notice (KULLABS, 2014). Bank means a corporate body incorporated to carry
on banking and financial transactions (Nepal Banking Instution, 2018). A bank is an
institution, the principal function of which is collect the unutilized money of the people
and to lend it to others as per need (NRB Commercial Bank Limited (BD), 2013).From

9
the definition, it can be concluded that bank is the financial institutions that serves as a
financial intermediary, who bridges gap between the savers of the fund and users of the
fund. 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. . Banks intermediates not only the surplus and
deficit units but also perform various management activity to create a balance in the
economy.

2.3 Evolution and growth of banks in Nepal

The history of banking in Nepal may be described as a component of gradual and

ordinary evolution in the financial and economic sphere in the Nepalese life which is
different than rest of other world. Even now they are in evolutionary phase. The
establishment of 'Tejarath Adda' in 1980 can be convinced as the starting of credit
mobilization in the nation. However, this institution, although formally established, was
not allowed to take public deposit and provide credit to public – the fund had been
provided by the government for credit to their staff and landlords only. Therefore, it was
not a bank per se. Even the urban people in need of the financial support had to rely on
Shahus and landlords because of the limited activities of Tejarath Adda (Maskay &
Subedi, 2009).

The history of modern banking in Nepal dates back to the year 1937 with the
establishment of Nepal Bank Limited as the first commercial bank of Nepal. The total
deposits of Nepal Bank Limited for the first year was NRs. 17,02,025 where current
deposits was about NRs. 12,98,898 fixed was about NRs. 3,88,964 and saving was NRs.
14,163. Loan disbursed and outstanding at the end of the first year was NRs. 1,985,000.
From the very conception and its creation, Nepal Bank Ltd, was as joint venture between
the government and the private sector. Out of 2500 equity shares of NRs. 100 face value,
40% was subscribed by the government and the balanced i.e. 60% was offered for the
sale to private sector. There were only 10 shareholders when the bank first started (Nepal
Bank Limited, 2017). The first bank notes were issued in the year 1945 by the treasury

10
"Sadar Muluki Khana" and there notes were signed by " Khanjanchi" the head treasury
who also was high hindu priest. In the year 1955 Nepal Rastra Bank (NRB) act was
formulated for the better regulation of financial institution and in 1956 NRB was
established under the NRB act 1955 as "central bank of Nepal" with an objective of
supervising, protecting and directing the functions of commercial banking activities..
After the establishment of NRB the bank notes are issued by central bank with the
signature of governor of institution (Khalti.com). Another commercial bank fully owned
by the government, “Rastriya Banijya Bank (RBB)” was established in 1996, which made
it possible for the NRB to devote more attention to the important aspects of economic,
monetary and fiscal development. Industrial development center was set up in 1957.
Later it was converted into Nepal Industrial Development Corporation in 1960. As
agriculture was the basic occupation of neaplese people so to fiancé and promote
agricultural sector of nation Agricultural Development Bank (ADB) established in 1968.
To operate all commercial banks uniformly single act, “Commercial Bank Act 1975” was
enacted. In 1985, Nepal Government established five rural development banks under
control of NRB to promote rural sector business and to provide easy access to rural
people towards FI.

With the aim to provide quality-banking service, enhance the efficiency and healthy
competition, foreign investment and new technology in banking sector was introduced.
Nepal Arab Bank, the first joint venture bank of Nepal was established in 1984. The bank
was the outcome of joint venture with Dubai Bank Limited of United Arab Emirates. The
footstep of this bank was followed by Nepal Indosuez Bank a joint venture bank with a
Bank of Paris in 1986 and later other joint venture banks are established in Nepal. These
commercial banks have played a very significant role in creating banking habit among
the people, widening area, and business communities and the government in various
ways. In recent year Nepal Rastra Bank had opted merger, acquisition policy and
financial institutions have merged and become one from two, and even one from three
and many of financial institutions are in pipeline of merging. Although, banks and
financial institutions occupies more than 60% in Nepalese economy but the development
of banking sector in Nepal is not said as satisfactory because these financial sector have

11
target cities and populated areas only and not in rural areas. This is how modern banking
system is running in Nepal (Sahayogee, 2015).

2.4 Types of banks

After the restoration of democracy and liberalization of economy Nepal see the
significant change in the sector of FIs. Establishment of joint venture banks and private
banks is the major change that we see after liberalization of economy. The total number
of commercial banks including both governments owned joint venture and private banks
reached to the number of thirty three. When NRB adopted the policies of merger and
acquisition it is believed that number of banks will decrease significantly but that doesn't
happen and the number remains to twenty eight. To regulate and govern the financial
institutions an umbrella act "Banking and Financial Institutions Act (BAFIA) 2006" was
introduced. Later on this act was amended in 2017.The BAFIA act 2017 has been
categorized banks as A, B, C and D according to their paid up capital and the function
they perform. The BAFIA act 2017 has introduced the concept of infrastructure
development bank which is separate and not included in the above category. All the bank
and financial institutions are regulated by the central bank of Nepal. The different
category of banks according to BAFIA 2017 along with their minimum paid up capital
requirement as per circular of NRB in 2015 and number of banks as per mid April 2018
is as follows.
Table 2. 1

Types of bank along with their minimum paid up capital requirement and their
total numbers

Class List of banks in Nepal Minimum paid up capital requirement Total number
A Commercial Banks 8 billion 28
B Development Banks 500 million -2.5 billion 33
C Finance companies 400 million-800 million 25
D Micro Finance Financial Institutions 20 million -100 million 65

(Source: (Nepal Rastra Bank, 2015) and (Nepal Rastra Bank, 2018))

Commercial banks are those with the minimum capital of eight billion within mid July
2017 and functions as the institution for collecting deposits and granting loans.
Development banks are established to provide capital and technological assistance for the

12
development of infrastructure of the country with the capital of 2.5 billion at national
level. Finance companies provide loans to the risky customers whom commercial banks
find too risky to provide loan. They are the engineers of risk. They convert risk into
potential business opportunities. They have minimum capital requirements of eight
hundred million. Micro-finance companies are a source of financial services for
entrepreneurs and small businesses lacking access to banking and related services. They
provided the facility of micro credit to the needy and underprivileged group with or
without collateral. The minimum capital for national level micro finance is one hundred
million. Since the intern had completed the internship in one of the commercial bank of
Nepal, the analysis is specifically focused on the "A" class depository institutions i.e. the
Commercial Bank.

2.5 Introduction of commercial bank

The commercial bank is the oldest form of the bank. In general, bank means the
commercial bank. The bank, which performs all kinds of banking business and generally
finances trades and commerce, is called commercial bank. Commercial bank is a type of
financial institution that accepts deposits, offers current account services, and makes
business, personal and mortgage loans, and offers basic financial products like
certificates of deposit (CDs) and savings accounts to individuals and small businesses.
They make money by providing loans (such as mortgages, auto loans, business loans and
personal loans) and earning interest income from those loans (Investopedia). Commercial
banks perform all kinds of banking business. The primary function is to receive deposit
and lending to others. They mainly aim to direct the flow of idle funds to productive
sector to earn profit. The banks also undertake a wide variety of functions to assist their
customers by performing agency services and general utility services. In Nepal, after the
liberalization and privatization policy adopted the commercial banks started to bloom.
The bloom was seen not only in terms of their numbers and branches but also in the
number and variety of service provided by them. At present there are 28 Commercial
Bank in Nepal. There is a mandatory requirement of NRB for the commercial banks of
Nepal to keep a certain proportion of their reserves with NRB. In present context cash

13
reserve ratio (CRR) to be maintained by commercial banks is 4% (Nepal Rastra Bank,
2018).

2.5.1 Functions of commercial bank

The primary functions of every bank are accepting deposit from people and lend loans to
necessary people. But the functions of commercial banks are in broader scope, size and
magnitudes. Commercials banks are one of the major financial intermediaries whose
primary function is the transfer of monetary resources from the savers to users. The
transfer are made at certain prices and conditions governed by the broad policy
parameters stipulated by the central bank authority The functions of commercial banks
can be classified as primary and secondary function and utility function.

2.5.1.1 Primary functions

1. To accept various types of deposit like fixed deposit, saving deposit, call deposit and
current deposit

2. To provide loans and advances in different forms like cash, money at call, overdraft,
discounting bills of exchange, term loan etc.

2.5.1.2 Agency functions

1. To collect and clear cheque ,dividends and interest warrant

2. To make payment of rent, insurance premium etc

3. To deal in foreign exchange transactions

4. To purchase and sell securities

5. To act as trustee, attorney, correspondent and executor.

2.5.1.3 General utility functions

1. To provide safety locker facility to customers

2. To provide money transfer facility

14
3. To issue travelers cheque

4. To accept various bills for payments like phone bills, water bills, electricity bills etc

5. To provide merchant banking facility

6. To provide credit cards, debit cards, smart cards etc.

15
 CHAPTER III

INTRODUCTION OF THE NABIL BANK LIMITED

3.1 Background

The competitive business context of today is a challenge to corporate houses, especially

to banks and financial institutions because of their high sensitivity to internal as well as
external environment. Large numbers of banks and financial institutions is also a
challenge to stand out uniquely and to lead the industry rather than just survive. When
there are few banks from the government side which is not able to provide service to the
people properly. In this ground government decided to establish banks from private
sector. In July 1984 Nabil bank limited is established as the nation's first joint venture
bank with the objective of extending international standard modern banking services to
various sector of society. It was earlier known as Nepal Arab bank ltd. Pursuing its
objective, Nabil provides a full range of commercial banking services through its seventy
nine points of representation. In addition to this, Nabil has presence through over fifteen
hundred Nabil Remit agents throughout the nation. It has its head office located in Nabil
Centre, Durbar marg, which is also a premium location of the capital. The present Chief
Executive Officer of Nabil bank is Mr. Anil Keshary Shah.

Nabil is a milestone in the Nepalese banking industry that not only commenced private
sector banking but also helped to flourish the industry through the introduction of modern
technologies, innovative customer focused products and efficient processes. At that time,
the services provided by the government banks were primitive, inefficient and
cumbersome and thus customers were discouraged to avail the banking services. The
access to the traditional banking was limited to two commercial banks and two sectorial
development banks. Loans catering the specific needs of the business sector were not
offered; instead all loans were backed up by collateral (either land or building). At such
circumstances, Nabil supported both the retail and business clients. Reduction in service
delivery time, the growth of business sector through receivable financing and
hypothecation loan which proved to be a boom for the business community and to drive
the economy of the country.

16
As a reputed and one of the pioneer commercial bank of Nepal, Nabil bank is introducing
many innovative products and marketing concepts in the domestic banking sector,
represents a milestone in the banking history of Nepal as it started an era of modern
banking with customer satisfaction measured as a focal objective while doing business.
Operations of the bank including day-to-day operations and risk management are
managed by highly qualified and experienced management team. Bank is fully equipped
with modern technology which includes international standard banking software that
supports the E-channels and E-transactions. Nabil is determined in delivering excellence
to its stake holders in an array of avenues. Not just one parameter like profitability or
market share. It is reflected in its Brand Promise "Together Ahead". Bank has set
C.R.I.S.P i.e. Customer Focused, Result Oriented, Innovative, Synergistic and
Professional as its values, which it lives by in day to day operation of the bank's business
(Nabil Bank, n.d.).

3.2 Vision and mission

Nabil Banks vision is to be a bank for all across all geopolitical zones and socio
economic strata of the nation that can provide myriads of financial solutions and create
values for all our stakeholders, to stand in the community with economic and civic roles.
They are looking forward to emerging as a first rate bank across all strata of the nation.

Nabil is moving forward with a mission to be "1st choice of provider of complete

financial solutions" for all its stakeholders i.e. customer, shareholders, regulators,
communities and staff.

3.3 Objectives

The commercial banking industry has been posing through a across phases of transaction
right from its inception which is now operating with the liberalization of financial
policies but has given a way to some malfunction misused if fraudulent practices
deregulation in banking environment so as to capture the increased interest sensitivity of
depositors your bank at your service has become the stepping stone for the success of
bank. Thus to cope with the changing environment the important management objectives
of bank are:

17
1. To provide high quality services to its customers ;
2. To provide efficient and innovative services to customers;
3. To generate adequate resources for expansion and growth ;
4. To ensure optimum development of their human resources ;
5. To earn recognition as professional from the society ;
6. To promote the national economy, society and individual;
7. To provide innovative new technology to enhance and facilitate transactions along
with convenience and customer satisfaction ;
8. To invest capital in new areas in a productive manner;
9. To generate employment opportunity and facilitate career development plans for
employees

3.4 Product and services

Nabil has structured its delivery platform by constituting specific Strategic Business
Units (SBUs) to ensure single window customer dealing in specific product segments.
Most of the Bank’s product and service offerings are channeled through these SBUs for
effective and efficient delivery. All SBUs are equipped with the resources and expertise
required for driving business in their respective markets. Within respective markets the
SBUs undertake market research, product enhancement, delivery channel optimization,
relationship marketing and relationship management. The Bank’s product and services
are being offered through the following SBUs.

3.4.1 Corporate banking

Corporate Banking (CB) is a one window banking designed for catering the entire gamut
of financial services to large corporate. CB offers entire banking services required for
corporate establishments such as manufacturing and processing industries, export and
import trading, real estate development, hotels, agro production, service industries and
others. CB offers capital investment in the form of multi-year term loan, working capital
in the form of overdraft and structured time loans, trade transactions in the form of letter
of credit, bank guarantees, import loans, pre shipment / post-shipment loans, bills and
documentary negotiation / collection / advising and open account arrangements.

18
3.4.2 Infrastructure and project financing

Infrastructure and Project Financing (IPF) is an one window banking designed for
catering to large capital intensive projects such as hydropower generation, power
transmission lines, telecommunication infrastructures, cement manufacturing, civil
aviation, and others. While IPF offers all the products as CB SBU, it additionally caters
to large funding requirements of mega-projects through loan syndication and banking
consortium, high value import LC and loans denominated in foreign currency against raw
materials, imported machinery, airplanes, etc. The department also facilitates the projects
having Foreign Direct Investment (FDI) in infrastructure sector by providing the service
of Agent Bank on behalf of the foreign lenders and the company.

3.4.3 Retail lending

Nabil Bank believes customers need different types of loan products to suit their
requirements at different stages of life. Nabil also believe that the journey to loans should
be hassle-free and without any bumps. Be it for purchase of a house or for meeting social
obligations, Nabil bring customized bank Loans at competitive interest rates. Retail
lending products are offered across all branch offices and customers can visit any branch
to meet their funding requirements. Within the retail lending segment, the Bank offers a
range of products and regularly introduces various attractive schemes within those
products.

3.4.3.1 Nabil housing

Nabil Home Loans are flexible as well as affordable as it offers the most competitive
interest rates. Financing is available for purchase of land, building construction,
furnishing, refurbishment and purchase of individual homes and apartments.

3.4.3.2 Nabil properties

This product offers clients with a simple option to obtain credit against mortgage of a
residential or commercial property. Clients have the access to credit towards funding
their social obligations like marriages, travelling, education, equity infusion in
businesses, etc.

19
3.4.3.3 Nabil auto

This product is for financing of motor vehicles for private and commercial use. Clients
can avail easy financing for purchase of cars, van, jeeps, taxi, trucks, bus, etc. either for
personal use or use by offices such as schools, hotels, hospitals, transport operators, small
businesses, among others. The bank has also entered into agreement with major
automobile dealers to support low interest offerings and fast processing to clients.

3.4.3.4 Nabil sikshya

Nabil Bank brings Nabil Sikshya for financing higher education to aspiring Nepali
students choosing foreign universities and colleges as their next study destinations.
Specially packaged study loans cover funding for tuition, accommodation, travel and
insurance required for the full course period. Nabil has promoted its education loan as a
social initiate within a financially feasible framework. Nabil is the largest caterer of
education loan in Nepal and is among the most preferred bank by the Australian High
Commission for loan facility because Nabil Bank has been highly accredited by the
Australian Academic Institutions.

3.4.3.4 Nabil share loan

Nabil Share Loan is an easy loan provided against the pledge of demats shares in the
form of either overdraft or demand loan facility.

3.4.3.5 Nabil personal loan

An exclusive product targeted to those who have maintained staff payroll account with us
is non-collateral EMI and overdraft based loan which is in consonance with NRB
Directives. This loan facility can also be availed by existing mortgage-based loan
customers.

3.4.3.6 Personal overdraft

This product offers overdraft limit to clients against mortgage of land and building within
the threshold of regulatory framework. This is a quick solution to our customer’s
immediate and contingent funding requirements. Loan processes are simplified and

20
expedited coupled with features of convenient payback facilities tied with revolving
credit line.

The interest rate on retail lending applicable during internship period is shown in
appendix one.

3.4.4 Deposit product and services

Nabil offers different types of deposit products to its customer. The account holder has
the right to withdraw deposited funds, as set forth in the terms and conditions governing
the account agreement. Deposit products and services of bank are:

3.4.4.1 Saving account

3.4.4.1.1 Nabil premium nari bachat

Premium nari bachat is our new deposit scheme with special discounts on locker facility,
attractive remittance features, special discounts on Visa Electron Debit and Credit card
and attractive discounts on e-channel facility.

3.4.4.1.2 Nabil sahuliyat khata

This product is specially designed account for unbanked population for financial
inclusion to meet the objective of Government of Nepal to have bank account for all
citizens of Nepal. People of such area will get NPR 100 from bank if they open the
account.

3.4.4.1.3 Bal bachat

Bal bachat is a saving account that grows with customers child and teaches them savings
habit. Nabil offers a savings account designed specifically for children below the age of
sixteen. Bal bachat is perfect if customers want a safe and easy way to start savings for
their child.

21
3.4.4.1.4 Bachat yojana

Bachat yojana a premium saving account provides an enriched version of saving account
that consists of various concessions and add-ons. It is a saving account designed for
customers having high end earnings and yet to avail savings account features.

3.4.4.1.5 Jestha bachat

Jestha Bachat is a savings deposit product primarily meant for the senior citizens of the
country. It can be opened without minimum balance requirement and offers host of
waivers/ discounts on facilities like Good for Payment, Stop Payment, Safe Deposit
Locker, etc.

3.4.4.1.6 Nari bachat

Nari Bachat, a specially designed deposit product for female customers. There is no
provision of maintaining minimum balance to open account under this scheme. The
account holders are offered with a customized Visa Electron Debit Card and with this
Nabil is the first Bank ever to have crafted a special Visa Electron Debit card for women.
This product is suitable for ladies from various walks of life.

3.4.4.1.7 Share khata

Share Khata- designed for general public who invest in securities of various companies
listed on Nepal Stock Exchange. The Share Khata is designed to integrate with the Demat
(Dematerialized) account of the customer maintained with Nabil Investment Banking
(NI).

3.4.4.1.8 General savings

Nabil bank offers saving accounts that have been designed to take care of customers
banking and savings requirements. For customer, bank is always at your fingertips with
mobile banking, internet banking, and probably the largest ATMs networks throughout
the nations.

22
3.4.4.1.9 Student's saving

Student Savings”, a savings deposit product meant for students pursuing higher studies.
The product bears special features like discount on issuance of Bank Drafts, hassle free
online registration for TOEFL, IELTS and GMAT.

3.4.4.1.10 Lok bachat

Lok bachat account is an account to get started with for all basic banking services.
Simplicity at its best- Lok Bachat account it offer a specially designed savings account to
enable people belonging to low income group…an account that provides perfect solution
in an easy hassle free manner.

3.4.4.1.11 Nabil premium payroll savings

Nabil Premium Payroll is the exclusive scheme designed specifically to provide the
complete banking solution to employees catering financial, investment and lifestyle
needs.

The interest rate on saving account applicable during internship period is shown in
appendix two.

3.4.4.2 Current account

Current/ Checking account designed to address individual day to day requirements.

Current account deals largely with liquid deposits, this nature of account allows for
withdrawal of funds and cheques being written against the balance and does not limit the
number of transactions in a day.

3.4.4.3 Premium account

It includes two types of account:

3.4.4.3.1 Fixed deposit account

Nabil's wide range of fixed deposit schemes provide individuals greater earning along
with the benefit of credit facility up to ninety percentageof their fixed deposit to meet
their short term financial needs. Put money away for fixed terms and get assured of the

23
attractive return on money. Nabil offers wide range of fixed deposit scheme that gives
customers a good return on their hard earned money with strong sense of security.

3.4.4.3.2 Call account

It is the combination of current and saving accounts features, with interest in addition.
Nabil offers call deposit account which is basically a demand deposit account with wide
array of benefits; earning interest and facility of unlimited withdrawals and deposits
being the essence of this account.

The interest rate on fixed deposit applicable during internship period is shown in
appendix three.

3.4.4.4 Safe deposit locker

It is designed to safeguard customer valuables. Safe deposit lockers offer individual

shelter and security of your valuables. A safe deposit locker at Nabil Bank is a solution to
individual concern. Nabil offer customer access to safe deposit lockers at maximum
locations.

3.4.5 Bancasurrance

Bancassurance is one of the newly conceptualized products. The Bank offers insurance
service to clients for coverage of both property and life under agency relationships with
major insurers in Nepal. Credit clients can conveniently choose a policy for risk coverage
on properties pledged to bank. Likewise all clients can choose to select from a range of
different life insurance policies as per their requirement and investment plans. This
arrangement between the Bank and insurance companies to sell insurance products to the
Bank’s customers brings mutual benefits to insurer, Bank and the clients at the same
time.

3.4.6 Cards and e- banking

Nabil Bank is the pioneer in introducing credit cards in Nepal. Nabil bank has been one
of the principal members of Visa Worldwide Inc. and MasterCard Worldwide Inc. since
early 1990s and also associated with Union Pay International Co. Ltd. and Smart Choice

24
Technologies (P) Ltd. Nabil has the widest range of services in cards, which includes
issuance of Visa and MasterCard brands of cards whereas on the acquiring side it honors
Visa, MasterCard, China Union Pay (CUP), Smart Choice Technology (SCT) brands of
payment cards as a mode of payment. The Bank has employed with state-of-the art
technology to provide online banking services, mobile banking services, credit, debit and
pre-paid cards under Visa and MasterCard brands to the accountholders and non-
accountholders.

Nabil Visa (Debit Card), Nabil Visa Local (Credit Card) and Nabil MasterCard Local
(Credit Card) are accepted at over 2.8 million merchant outlets and over two lakh fifteen
thousand ATMs in Nepal and India. Nabil Visa (Debit Card) can be availed and used
without any hassle of limits, interests, late payment fees and other penalties. Nabil also
offers International Dollar Cards like Nabil MasterCard International Credit Card
(Regular) and Nabil Visa International (Pre-paid) under Visa brand, which are accepted
over millions of merchant outlets and ATMs worldwide. Nabil has recently updated its
technology to provide updated electronic banking services to its customers. Some more e-
banking products of Nabil Bank are Nabil installment, Nabil Esecure, Mobile commerce,
Nabil net, ATM, Nabil viber banking, Electronic Payment Gate way (EPG).

3.4.7 Remittance services

Keeping in mind the need to bring back the hard earned money by the Nepalese working
abroad, Nabil bank provides remittance services to its customers at cheapest rates. It uses
its large international network and domestic branches to transfer money, financing
foreign trade and other needs.

3.4.7.1 Western union

Western Union provides fast, reliable and convenient ways to transfer money. Through
Western Union, the customers can receive the fund through more than five lakh Western
Union Agent locations in more than two countries and territories. One does not need to
have an account with Nabil Bank to receive fund.

25
3.4.7.2 Nabil remit

Nabil Bank also renders domestic remittance services for money transfers within Nepal.
NABILREMIT is a web based online money transfer system introduced by Nabil Bank
Ltd. to ease the fund transfer from one place of the country to the other. NABILREMIT
has one of the largest networks with more than fifteen hundred locations across the nation
to render domestic remittance services to its valued customers.

3.4.7.3 Drafts and swift transfers

The Bank issues demand drafts and executes fund transfer instructions for transfer of
funds across the globe using the platform provided by SWIFT. The Bank has wide
correspondent banking arrangement with international banks in order to execute fund transfer
requests from clients so as to facilitate individual fund transfer requirements, international
trade transactions and treasury operation of bilateral and multilateral agencies. The SWIFT
code for Nabil bank is NARBNPKA.

3.4.7.3 Foreign inward remittances

Nabil Bank has established remittance relationships with a number of exchange houses,
remittance companies and banks in Qatar, UAE, Kuwait, Saudi Arabia, India, South
Korea, Australia and Japan for rendering foreign inward remittance services.

3.4.8 Other products and services

3.4.8.1 Any Branch Banking Service (ABBS)

The Bank has capitalized on its technology resources to offer uninterrupted transactions
across a wide network of its branch offices, ATM network and PoS machine network. The
objective is to ensure that Nabil’s products and services are easily accessible to its customer
irrespective of their location. Clients can benefit from hassle free transaction banking
services from each and every branch offices irrespective of the branch where they opened an
account.

3.4.8.2 Extended Banking (EB) services

Nabil has offered “365 Days Banking Service” and “Extended Banking Service” from
selected branches to cater to the banking needs of customers who do not have time to

26
visit a branch during regular banking hours. Teendhara and Lalitpur (Kupondole)
branches in Kathmandu valley provides “365 Days Banking Service” and “Extended
Banking Service” while many more branches across the country provides “Extended
Banking Service”.

3.4.8.3 Bullion operations

Nabil is a wholesale importer if gold on consignment basis and has developed a credible
name on the domestic bullion supply chain. The Bank offers bullion import services to
merchants as well as licensed financial institutions.

3.4.8.4 Nabil treasury

The Bank’s treasury offers complete solution for foreign currency transaction
requirement of its customers. The Bank is well equipped with real time transaction
window for transacting in global financial markets. Extensive network of correspondent
banking arrangements worldwide support clients requirement of transactions with foreign
counterparties, be it for individual requirements, trade transactions or for treasury
operations of bi-lateral and multi-lateral foreign agencies. The Bank undertakes all forex
transactions as permitted by the regulation, competitive spot and forward currency
exchange rates and non-deliverable forward contracts for licensed financial institutions.

3.4.8.5 Electronic online account opening form

Customers can open an account in desired branch by filling up an online account form.
Our basic motto towards launching this feature is to give new dimension to online
banking and conventional account opening approach.

Nabil bank is committed to provide banking services of highest possible standards that
suits the customer requirements as well as the market needs.

3.5 Ownership structure

Ownership structure refers to the composition of the owner’s capital in the share capital.
The ownership structure of Nabil bank is as follows.

27
 Table 3. 1

Share ownership structure

Particulars % of holding
NB International limited 50.00
General Public 30.00
Rastriya Beema Company 9.67
Nepal stock exchange 0.33
Others 10.00

(Source: (Nabil Bank, 2018) )

Here in table 3.1, it is seen that the shares are owned by local owners and foreign owner
(NB International Limited), both having fifty percent ownership. Among local
ownership, 9.67 percent of shares is owned by Rastriya Beema Sansthan, general public
holds 30 percent, 0.33 percent of share is hold by Nepal stock exchange and others hold
10 percent of total shares. Others include promoter's shares divested by NIDC, which is
free traded at NEPSE.

3.6 Organization structure

Proper management of work responsibility and work division to motivate and encourage
healthy and competitive work ethics is found in Nabil Bank. The functions of the bank
are divided into different departments headed by department heads. The service of the
bank is expanded all over the country with seventy nine branches and with one hundred
thirty two ATMS, each branch headed by branch manager.

The Board of Director lies at the top of the governance of the bank. There are seven
members in the board including the chairman. All the board members are non-executive
directors and thus they do not take part in day to day management decisions. Boards of
directors are from diverse background and possess specialization and expertise in various
fields and thus bring about an external perspective on company affairs and provide
constructive suggestions to the Chief Executive Officer (CEO). Individual directors
exercise their authority in the board meetings and the board acts in the collective interests
of the shareholders. The Board decides on corporate and business strategies, approves
capital and operational plan and consistently monitors and reviews the management's

28
performance so as to ensure that the actual performances are in tandem with the annual
and long-term targets. The list of members of Board of Director is as follows.
Table 3. 2

List of board members

S.N Name of Directors Represented class Position in board

1 Mr. Shambhu Prasad Poudyal Represents Group “C” Shareholders Chairman
2 Mr. Nirvana Chaudhary Represents Group “A” Shareholders Board Member
3 Mr. Pratap Kumar Pathak Independent / Professional Director Board Member
4 Mr. Virender Paul Dan Represents Group “A” Shareholders Board Member
5 Mr. Dayaram Gopal Agrawal Represents Group “C” Shareholders Board Member
6 Mr. Upendra Prasad Poudyal Represents Group “A” Shareholders Board Member
7 Mr. Malay Mukherjee Represents Group “A” Shareholders Board Member

(Source: (Nabil Bank, 2018) )

In the table 3.2 "A" class represent to the shareholder which are in relation to fifty
percentage interest of NB international ltd. Similarly, "B"class represent to the
shareholder which are in relation to thirty percentage interest of public shareholders and
independent / professional directors are those which represent the independent group.

3.7 Financial highlights

The strength of every organization is shown by the financial highlights of the

organization. The performance of the organization depends upon how much the
organization is financially healthy. As per the 2018 annual report of Nabil bank total
operating income is 8.24 billion whereas net profit after tax is 3.98 billion. The total
deposit of bank remains 136 billion in 2018. Similarly gross loans and advances is 112
billion in 2018. The total asset of the bank is 161 billion and shareholders fund is 20.59
billion in 2018. The average return on assets is 2.61 % in 2018. Similarly return on equity
is 20.94 % in2018. Capital to deposit ratio and capital adequacy ratio remains 82.66%
and 13.00 % in 2018. The position of non-performing loan to total loan is 0.55%.
Earnings per share and dividend per share is 34.00% and 49.51% in 2018. The last
closing price of share in 2018 is NPR 921. The total market capitalization remains 60.88
billion in 2018 (Nabil Bank, 2018) .

29
 CHAPTER IV

ANALYSIS OF ACTIVITES PERFORMED

4.1 Background

In a bank there are several departments each with their own functions. Every department
is equally important for operation of day to day activities. Having several departments the
intern was placed to CSD as per their requirement. CSD is the most important department
in the bank as customer first contact in this department for their queries. Nabil bank as
pioneer in banking product and services is regarded as the best in matter of customer
services, to hold grievances and to answer customer queries in a most effective manner.
Every customer who visits bank don't come to open the account at first, they want to
know about the product and services offered by the bank. During customer visits its CSD
staff responsibility to tell, convince and encourage the customer to buy their product and
services by telling them about the product and services and procedures that they have to
follow to get the desirable product and services. Many customers feel difficult to follow
the lengthy procedure and they go in search of alternative one and to stop from it, its CSD
staff responsibility to make them easy while availing their product and services. The
success of any bank depends upon how fast their customer service is and how CSD staff
speak with customer. Today, many banks have made the slogan serve and speak customer
with smiley face and make your customer happy. Likewise Nabil has slogan your bank at
your service. The primary objectives of CSD are to disseminate the information, listen
and handle customer grievances and build customer relationship. The major activities
performed at CSD are as follow.

4.1.1 Account operation

The intern was assigned to assist the CSD staff in the process of account operation. In
account operation account opening, sole transfer and closing activities are done.

4.1.1.1 Account opening

Any types of account whether savings or current, corporate or individual or joint account
are opened. For opening different types of account different types of document are
needed which customer has to submit. In Nabil bank for opening personal account,
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account opening form is provided to customer which he or she has to fill him/ herself, if
s/he is uneducated CSD member assist them to fill the forms. While opening account one
should bring original citizenship along with supporting document like voting card, pan
card, passport or utility bills and one passport size photo also. Customer has to deposit
minimum of rupees five hundred if s/he want other services like debit card service,
mobile banking service etc. In account opening form one should do same signature in
every pages and in term and condition which s/he has done specimen signature. After
filling the form by customer CSD staff views the form and enters it in the WDMS and
form is forwarded to manager or OI for approval. Then Central Processing Centre (CPC)
opens the account within a day or on vary next day. The account number is messaged in
the registered mobile of customer. Then the account opening form is send to CPC for
signature captured as all the system inside valley are centralized.

For opening corporate account, company registration document is necessary. Along with
company registration document, minute related to opening of account, memorandum of
association, articles of association, citizenship and photos of all the members who have
ownership title is needed. Corporate account opening process document differs from type
of company that it is.

4.1.1.2 Sole transfer

Sole transfer is the activity in which account holder transfer its account from one branch
to another branch that is nearest to him or her for easy operation. For transferring sole of
account, account holder has to submit the application to respective branch in which it
wants to transfer its account by mentioning the reason of transferring sole and branch
staff forward application to respective branch to start the process of transfer.

4.1.1.3 Account closing

Account closing is another activity of CSD. For closing account, account holder have to
fill account closing form along with application by requesting for closing all the services
that s/he is using. S/he has to return back the cheque book and debit card to bank. After
application is received by the bank, bank issues circular to its all department asking does
accountholder has any liability towards banks and not to perform any activities from that

31
account from vary day. On receiving no objection from all department account closing
process starts and branch request CPC to close the account.

4.1.2 Handling customer queries and calls

Customers are the main target of any firm. Success of any firm depends upon how they
handle their customer queries. Customers of different age, sex, perception and from
different background visit the bank. All customers cannot be treated as one so handling
customer is major function of CSD staff. Sometime mystery customer also visits the bank
and asks different queries like of general customer for evaluating the staff performance
and branch performance. Mystery customer cannot be identified by the CSD staff as bank
select one customer or its staff and tell him/her to ask different queries. Likewise handing
calls is another important task of CSD staff. Handling calls is the activities of receiving
and calling customers via telephone and transferring phone calls to the respected
departments. Handling telephone calls is to be performed by the staff of customer service
department in a polite, respectful manner and tactfully. Customer may inquiry for balance
and other queries.

4.1.3 Documentation and record keeping of the document

Documentation and record keeping of different forms is another task at CSD.

Documentation of different forms like statement request forms, debit card request forms,
cheques request form etc is the task at CSD. Likewise record keeping of delivered debit
card, cheques book, withdrawal slip, locker visitor and record keeping of outgoing items
is another task. Documentation and record keeping should be done carefully as one
mistake on this can create a problem as there is no back up record for this. Outgoing
register should be maintained carefully as it has all record of send items and it works as
proof of send if concerned person doesn't receive goods.

4.1.4 Issuing and delivering cheque books, debit card and ebanking password

Cheques are issued after the request of customer. For issuing cheque finacle and micr
web is used. Cheques are split through finacle by using different command like isia, ichb.
And in micr there are two part checker and maker, checker checks the cheques if it is

32
issued rightly or not and sends it to maker and maker prints the print. While printing
cheques if mistake is done then that cheques should be destroyed. Printed cheques are
then binding and entered in cheques book register. While delivering cheque book account
holder should be presented, incase if account holder cant present in such case
identification document is kept of person referred by account holder and signature of
receiver is kept in cheque requisition and in cheque book register and delivered date is
also written in cheque book register.

Debit card are issued on request of account holder by taking certain charges as per bank
rule. Cards are sending by card division to respective branch from where it has been
requested. While delivering debit card account holder should present in bank. With debit
card pin are also issued which should be changed by customer when they use the card.
Card and pin are always sending on two person custody in branch because of its risk and
sensitivity.

eBanking password are issued by internet banking department on request of customer.

ebanking password are then send to branch by internet banking department, the password
is provided to account holder only by taking signature on register and in
acknowledgement receipt. The acknowledge receipt is again forwarded to ebanking
department for activation of password.

4.1.5 Balance inquiry and bank statement dispatching

Customer visit bank for inquiring the balance in his/ her account or in the account of
person who have issued the cheque so, that s/he can make confirmation of sufficient
balance availability for presenting the cheque. While telling the balance of account holder
also CSD staff makes confirmation is that real account holder or not by checking
signature, asking contact number, family details etc. Account holder sometime requires
bank statement also which is issued by the CSD staff. The bank statement is provided of
last six months only as per the rule of bank. If customer wants statement of more than six
month per page ten rupees is charged during the period of my internship.

33
4.1.6 Providing different forms and information along with filling up the forms

Expect account opening form different types of forms are provided to the customer.
CASBA form is provided for customer for CRN registration and ASBA form is provided
to customer for filling up initial public offering, right shares, mutual fund and other types
of shares. Meroshare form is provided to one who wants meroshare account. Internet
banking forms, Nabil Smart forms, debit card, reissuance of pin, signature card and form
for signature change, locker opening forms, account activation from, Know Your
Customer (KYC) forms etc are provided through CSD. If person do not know how to fill
form CSD staff assists to fill the form.

4.1.7 Photocopy, scanning and updating the different form in WDMS

Photocopy of original document is necessary in different work of bank so CSD staff take
copy of document him/herself. Scanning of document is another important work in CSD.
Various documents are scanned for backup purposes and to mail in respective
department. At first scanning of account opening document is also necessary to upload it
in WDMS. Later on CPC replaced this system. Scanning of signature change document
and KYC is also necessary to upload it in WDMS. Signature card should not be folded as
it affects the specimen signature.

4.2 Problem identified and solved

CSD and problems are not- detachable terms. One of the main functions of CSD is to
solve the problems. During the internship period, the following problems were solved.

4.2.1 Problem-related to the change of rules and regulations

The rules related to the operation of the banks, the interest rates, the charges are revised
time to time to cope with the dynamic environment but the customers don’t easily accept
the change. Hence the CSD staff should inform the customer about the change, its need
and relevance to the organization which is really a hard and tedious job to perform.

4.2.2 Problems related to the malfunctioning of the ATM Machines

Another problem that the CSD staff should face daily is to manage the angry customer
who had to face problems due to malfunctioning of the ATM machine. The CSD officer

34
clarifies the actual scenario and apologizes if it is due to the fault of the machine
otherwise pointed out the fault of the customer.

4.2.3 Problems related to the mistakes due to the error in the system

Sometimes due to various reasons, the customer’s account would be debited twice for the
same charge or something similar to this occurs. Also, sometimes the ATM Machine
doesn’t provide the cash but the account is debited. This and other these kinds of system
errors makes the customer dissatisfied and hence the dissatisfied customer arrives at the
CSD and this kind of problems are to be handled by the CSD officer.

4.2.4 Problems related to the nonfunctioning of various services

The CSD staff should face difficult situation due to the malfunctioning of the SMS
services as well as the ebanking services. Customers do not know how to reset their
device when they forgot pin or password after requesting bank to reset it. So, CSD staffs
have to solve that problem by seeing the device themselves or by telling to the concerned
department.

35
 CHAPTER V

CONCLUSION
5.1 Lesson learnt

Practical knowledge is different from theoretical knowledge. The internship was an

opportunity to learn several things that matter in corporate life as well as in general life.
Working in real life situation practically is not as simple as we think of. It requires high
dedication, commitment, and discipline. This internship program had helped to transform
in the positive way. Many things related to bank and banking was learnt by watching,
listening and doing. An opportunity to learn and do new things practically in the work
place at Nabil was a great experience. Daily tasks like dealing with customers,
performing activities, communicating with bank staffs and higher-level officials and
handling equipment made realize different things that matter in providing quality service
and maintaining a good working environment in an organization. Some major learning's
and understandings acquired from the internship program are as follows.

5.1.1 Punctuality

Time is a valuable thing which helps an individual and an organization to grow when
used wisely. Punctuality is necessary in an organization to successfully achieve the set
goals on time. Similarly, serving valued customers on time makes customers satisfied and
creates a positive impression. Punctuality and time management is equally important also
for an individual to achieve his/her goals. At Nabil either intern or staff everyone has to
reach office at 9.30 am in office dress for staffs and in formal dress for interns.

5.1.2 Sense of responsibility and accountability

Responsibilities are set to each and every employee on the basis of their position and jobs
they have to perform. Employees must understand the things they are responsible and act
accordingly to fulfill them. Similarly, they also should have sense of accountability for
the jobs they are responsible for. These are things that help in effective and responsible
working environment. At Nabil intern are also assigned some tasks under the supervision
of staffs for which they have to be responsible and accountable.

36
5.1.3 Professionalism

The way of presenting oneself and behaving with others is a way of creating impression
of oneself on others. One's skill of communication, speech, body gestures, attire,
punctuality and compliance somewhat reflect how professional he/she is at his/her job.
Therefore, one must maintain professionalism while performing jobs to create positive
impression of one and to win trust of others.

5.1.4 Working skills

One of the most important things in an organization is work related skills or working
skills. Those with good working skills can take the organization to higher level and in
return can get rewards and personal achievements. Therefore, working skills are
important for both, organizational goals and personal goals.

5.1.5 Coordination and cooperation

In every work place coordination and cooperation is necessary. The success of any
organization depends upon how much they have coordination and cooperation. At Nabil
intern gained knowledge to coordinate the activities of different department for the
achievement of ultimate goal. In Nabil not only inside branch but there is coordination
between all branches as other branch staffs used to help another branch if they ask. Staffs
of branch used to say Nabil is a learning centre here everyone coordinate and cooperate
each other to go ahead together for the success.

These are the learning's and understandings acquired from the internship at Nabil Bank
Limited, Maitidevi Branch, which have broadened the knowledge and provided fruitful
experience. The exposure to real corporate life groomed various skills like interpersonal
skills, problem solving skills and work-related skills which will obviously help in future
career and life.

5.2 SWOT analysis

SWOT analysis is used to describe the strengths, weaknesses, opportunities and threats of
an organization. These four components are the extended version of the acronym SWOT.
Environmental scanning is done through SWOT analysis to identify the internal and

37
external factors that affect the present and shape the future of an organization. Here
SWOT analysis of Nabil bank Maitidevi branch and internship program of TU has been
explained.

5.2.1 Strength

Internship program helps students to get practical knowledge that they have learned
during three and half year of their bachelor level education. Internship program has
helped student to gain experience about the real life situation.

Nabil bank Maitidevi branch is located in the prime location. Fast, reliable and quick
service from the branch has lead to high customer satisfaction. Staff participation in
decision making and motivational training has motivated staffs to perform better.

5.2.2 Weakness

The duration of internship program is short. When student gets familiar with day to day
operation activities and started to do work own their own, their internship period came to
end. Due to this student are unable to show their performance and they only get short
insight of organization working environment. Another thing is that student doesn't get
paid during the internship program which demotivates student to work.

At Nabil bank Maitidevi branch lack of space and no chair for waiting customer is one of
the major problems. Customer has to stand in queue for the long period of time as branch
has high customer flow. Less number of staff is another problem in the branch. In the
informal talk with staffs they said from the day when branch started number of staff has
been same.

5.2.3 Opportunities

Internship program has opened the wide opportunities to the students. Students get
knowledge of real working life during the period of their education which prepares
students to sell themselves easily in the market. Internship program has opened
opportunities to organization also; they can select the employees from the intern also as
per their requirement.

38
For Nabil bank Maitidevi branch it has various opportunities as Maitidevi has been the
prime location for every business. With proper marketing they can get many personal and
corporate accounts. As Maitidevi is central location for most of the students Nabil bank
can be place for student loan also.

5.2.4 Threats

Internship program has been threats for the university now days. One question always
arises in mind can all student can intern in the period specified by the university as most
universities student came to market for internship at the same time. Another question is
that in what type of organization student should do the internship, and is internship
program effective.

Nabil bank Maitidevi branch has more threats from the market perspective as many
commercial bank branches lies there competition is high. One mistake in delivering
service can lead customer to swipe there account on another branch.

5.3 Conclusion

Practical knowledge and skill is more essential in each and every field. The internship
was a precious experience in learning new things and for personal development. The
internship is academic curriculum based on practical work experience in a particular field
of study that enhances student learning. It provides great strength for the student's future
career. The lessons learnt in classrooms and from other sources were observed and
implemented personally and related work environment of bank was experienced directly.
Internship program not only provides an opportunity to get exposure to the real working
environment but also helps to develop interpersonal skills and gaining knowledge on
different aspects of finance, accounting and other topics.

Nabil Bank Limited believes in serving valued customers through quality and
advancement of its services nationwide. Introduction of many innovative products and
marketing concept in the domestic banking sector by the bank is a milestone in banking
history of Nepal. With a value of giving back to the community, the bank follows CSR
activities and values honesty, integrity and ethics creating opportunities, both social and

39
economic, for the country. The opportunity to complete internship at such a reputed bank
of Nepal was really a valuable and unforgettable experience where there were several
opportunities to learn and grow. The internship made it possible to learn about the bank
and about banking institutions in general. Especially, the services provided by the CSD
and the activities that are performed there in came to the knowledge. In customer service
department, the intern had worked for eight weeks. It is the place where most of the
interns were placed for a longer period of time. The reason is there comes more people
for their various purpose like account open, getting their debit card and cheque book,
giving requisition slip for the new cheque book, renewal of debit card and fixed deposits,
for bank statement and e-banking, etc. During internship what intern observed is, to work
at CSD they must be very fast in working and well informed about the product and
services of the bank similarly must have good communication and interpersonal skills as
people of different nature arrive there. Some people don’t want to wait for a minute; they
want quick service, some want to get service first. So to manage all the issue we must
have good communication skill and interpersonal skill.

While concluding this report, the intern is intensely satisfied with the internship and its
outcome. The bank features cordial working environment which makes jobs easier to
perform since there always are other employees who are ready to support and help
whenever needed. The bank incorporates family-like environment where the presence of
empathy among the employees helps them to understand one another's situation and
provide suggestions on banking as well as personal matters. Giving value to customers,
the bank aims at providing complete financial solutions to its customers and be at the top
of this. The bank's culture is to receive the customers warmly, listen what they have to
say and help them in possible ways. The bank is determined in delivering the best to the
stakeholders in every possible aspect and believes in mutual growth, which is reflected in
its brand promise “Together Ahead". This experience will not only be beneficial today
but also in the future also when the intern should work in the real life. The experience of
internship was incredible which boosted the confidence level and enhanced inter-personal
communication skills of the intern. It developed interaction skills and shaped up
personality too.

40
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Nepal Rastra Bank. (2018, April). List of banks and financial institutions (Licensed by
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42
 Appendix 1

Interest rate for retail lending during internship period

S.N Retail loan heads Interest rate

1 Housing (Residential)
Prime 3.00-5.00
Others 4.50-5.00
2 Mortgage
Prime 3.50-5.00
Others (Residential) 3.75-5.00
Others (Commercial) 4.75-5.00
3 Auto
Private: Prime 3.25-5.00
Private: Others 3.75-5.00
Commercial 4.00-5.00
Tractor Loan 5.25-6.00
4 Education 3.50-5.00
5 Personal Overdraft 4.50-5.50
6 Corporate Employees Loan Upto 3
7 Supplementary/ Other Retail Loan 2.00-5.00
8 Nabil Personal Loan/OD for Employees 4.75-6.00

(Source: (Nabil Bank, n.d))

43
 Appendix 2

Interest rate for saving accounts during internship period

Saving deposits % per annum

Bal Bachat 3.75
Student Savings 3.75
Jestha Bachat 3.75
Lok Bachat 3.75
Nari Bachat 3.75
General Savings 3.75
Remittance Savings 3.75
Share Khata 3.75
Nabil Sahuliyat Khata 3.75
Corporate Staff Savings 4.00
Salary Savings 4.50
Bachat Yojana 4.75
Super Savings 5.25
Employee Savings 5.25
Premium Nari Bachat 5.25
Premium Payroll Savings 5.75
Shareholders Savings 5.25

(Source: (Nabil Bank, n.d.))

44
 Appendix 3

Interest rate of fixed deposit during internship period

S.N Fixed %per annum

1 3 Months to below 6 Months
Personal 7.00
2 6 Months and above
Personal 9.25
3 3 Months and above
Institutional 8.5
Institutional (Renewal) 8.6
4 Cumulative Fixed Deposit (1 Year)
Personal 8

(Source: (Nabil Bank, n.d))

45