ACTIVITIES PERFORMED AT CUSTOMER SERVICE DEPARTMENT IN NEPAL

INVESTMENT MEGA BANK LTD,

BIRATCHOWK BRANCH

By
Dilip Babu Giri
Exam Roll no: 24625/19
TU Registration no: 7-2-0214-0011-2019

An Internship Report Submitted to

Faculty of Management, Tribhuvan University
In Partial Fulfilment of the Requirements for the Degree of
Bachelor of Business Administration (BBA)

at the
Sukuna Multiple Campus
Tribhuvan University

Biratchowk
September, 2024
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DECLARATION

This is to certify that I have completed the Internship Report entitled “ACTIVITIES
PERFORMED AT CUSTOMER SERVICE DEPARTMENT IN NEPAL
INVESTMENT MEGA BANK LTD, BIRATCHOK BRANCH” under the guidance of
Bikram Thapa, faculty member in the department, in the partial fulfillment of requirements
for the degree of Bachelor of Business Administration, Tribhuvan University. This is to my
original work and I have not submitted it earlier elsewhere. I further declare that this project
report is a result of my own efforts and that it has not been submitted in part of or in full of to
any other Universities or Institution for the award of any degree.

…………………..
Dilip Babu Giri
September, 2024
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CERTIFICATION

This is to certify that the internship report “ACTIVITIES PERFORMED AT CUSTOMER

SERVICE DEPARTMENT IN NEPAL INVESTMENT MEGA BANK LTD,
BIRATCHOK BRANCH’’ is an academic done by Dilip Babu Giri submitted in the partial
fulfillment of the requirement for the degree of Bachelor of Business Administration at the
Faculty of Management, Tribhuvan University under my guidance and supervision. To the
best of my knowledge, the information presented by him in the internship report has not been
submitted earlier.

………………………….
Mr. Bikram Thapa
Supervisor
September, 2024
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INTERNSHIP CERTIFICATE ISSUED BY THE ORGANIZATION

 v

APPROVAL SHEET
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ACKNOWLEDGEMENTS

It is with great pleasure that I reflect on the opportunity to apply theoretical knowledge in a
practical setting through this internship. The successful completion of this report would not
have been possible without the contribution and support of many individuals, to whom I am
sincerely grateful.
First and foremost, I would like to extend my heartfelt thanks to Mr. Roshan Thakur, Branch
Manager of Nepal Investment Mega Bank Limited, Biratchowk Branch, for giving me the
chance to be part of the organization. I am also deeply grateful to my internship supervisor,
Ms. Anisha Ghimire, Operation In-charge, for her patient guidance, valuable advice, and
unwavering support. Her encouragement was instrumental throughout this process.
I would also like to express my appreciation to all the staff members at Nepal Investment
Mega Bank Limited for their constant cooperation and assistance. A special thank you goes
to Mr. Bikram Thapa for his continual guidance and inspiration, which were invaluable in
completing this report.
Furthermore, I am thankful to my faculty for offering this opportunity and aiding in the
research and fieldwork conducted at Nepal Investment Mega Bank Limited, as part of the
partial fulfillment of my BBA program at SMC Biratchowk. This experience has been a
rewarding blend of academic and practical learning.
Lastly, I am deeply appreciative of my parents for their continuous support and
encouragement throughout my internship. My sincere thanks also go to everyone who
contributed, directly or indirectly, to the successful completion of this internship report.
Thank You
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Table of Contents
DECLARATION.......................................................................................................................II
CERTIFICATION....................................................................................................................III
INTERNSHIP CERTIFICATE ISSUED BY THE ORGANIZATION...................................IV
APPROVAL SHEET.................................................................................................................V
ACKNOWLEDGEMENTS....................................................................................................VI
LIST OF TABLES....................................................................................................................X
LIST OF FIGURES.................................................................................................................XI
ABBREVIATIONS................................................................................................................XII
EXECUTIVE SUMMARY...................................................................................................XIII
CHAPTER I INTRODUCTION...............................................................................................1
Background of the study........................................................................................................1
Significance of the Study.......................................................................................................2
Methodology of the Study......................................................................................................2
Organization Selection....................................................................................................................3
Placement........................................................................................................................................3
Duration...........................................................................................................................................4
Data Collection......................................................................................................................4
Primary Data....................................................................................................................................4
Secondary Data................................................................................................................................5
Activities performed........................................................................................................................5
Limitation of the Study..........................................................................................................6
CHAPTER II INTRODUCTION OF THE BANKING INDUSTRY......................................7
Introduction of the Bank........................................................................................................7
History and Origin of Banking...............................................................................................8
Evolution of Banking Industry in Nepal................................................................................8
Classification of Banks........................................................................................................10
Financial Institution in Nepal...............................................................................................11
Introduction of Commercial Banks......................................................................................13
Function of Commercial Banks...........................................................................................14
Primary Function...........................................................................................................................14
Secondary Function.......................................................................................................................14
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Challenges and Opportunities..............................................................................................14

Challenges.....................................................................................................................................14
Opportunities.................................................................................................................................15
CHAPTER III BRIEF INTRODUCTION OF THE ORGANIZATION................................16
Introduction Nepal Investment Mega Bank.........................................................................16
Organization Mission, Vision and Values............................................................................17
Vision.............................................................................................................................................17
Mission..........................................................................................................................................17
Objectives......................................................................................................................................18
Board of Directors................................................................................................................18
Organization Structure of NIMB.........................................................................................19
Product and Services of Nepal Investment NIMB Limited.................................................19
Branch Profile......................................................................................................................26
Organization structure at Branch Level...............................................................................26
SWOT Analysis of NIMB....................................................................................................27
Strength.........................................................................................................................................27
Weakness.......................................................................................................................................28
Opportunities.................................................................................................................................28
Threats...........................................................................................................................................28
CHAPTER IV ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED............30
Background..........................................................................................................................30
Activities performed............................................................................................................30
Activities performed in the customer service department.............................................................30
Account Opening...........................................................................................................................31
Account Closing or Transfer an Account......................................................................................31
Issue Cheque on Demand..............................................................................................................32
Recording and Sending Document................................................................................................32
Scanning and Printing...................................................................................................................32
Heading and Making Phone Calls.................................................................................................32
Balance Checking..........................................................................................................................33
Filing and Documentation.............................................................................................................33
Signature Verification....................................................................................................................33
KYC Form Fill-up and Update......................................................................................................33
Maintaining Registers....................................................................................................................34
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Marketing of Different Services Provided by bank like Internet Banking and Mobile Banking..34
Problems Identified and Problem Solved.............................................................................34
Problems Identified.......................................................................................................................34
Problem Solved.............................................................................................................................36
CHAPTER V CONCLUSION AND LESSON LEARNT.....................................................37
Conclusion...........................................................................................................................37
Lesson Learnt.......................................................................................................................37
Recommendations................................................................................................................38
REFERENCES........................................................................................................................40
APPENDIX..............................................................................................................................41
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LIST OF TABLES

Table 1Duration of Internship Program.....................................................................................4

Table 2Classification Financial Institution in Nepal................................................................12
Table 3Board of Directors Nepal Investment Mega Bank.......................................................18
Table 4 Interest on Deposits.....................................................................................................20
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LIST OF FIGURES

Figure 1Classification of Bank under NRB.............................................................................11

Figure 2Organization Structure of NIMB, Biratchowk Branch..............................................19
Figure 3 Organization Hierarchy.............................................................................................27
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ABBREVIATIONS

ATM Automated Teller Machine

BBA Bachelor of Business Administration
C-ASBA Centralized Application Supported by Blocked Amount
CSL Clean Social Loan
CSD Customer Service Department
CV Curriculum Vitae
FCY Foreign Currency
IME International Money Express
KYC Know Your Customer
LC Letter of Credit
NIMB Nepal Investment Mega Bank
NRB Nepal Rastra Bank
SMC Sukuna Multiple Campus
SWOT Strengths, Weaknesses, Opportunities, Threats
TU Tribhuvan University
WTO World Trade Organization
 xiii

EXECUTIVE SUMMARY

Nepal Investment Mega Bank Limited is a national-level commercial bank operating with an
"A class" license from Nepal Rastra Bank. With a focus on addressing the financial needs of
both the general public and the country’s economy, the bank has established itself as a trusted
financial institution, serving a broad segment of society with customer needs at its core.
This internship report, titled "ACTIVITIES PERFORMED AT CUSTOMER
SERVICE DEPARTMENT IN NEPAL INVESTMENT MEGA BANK LTD,
BIRATCHOWK BRANCH" has been prepared as part of the partial fulfillment of the BBA
8th Semester project report. The report highlights the value of the internship program,
helping students understand real-world practices before entering the job market. The primary
objectives of the internship are to bridge the gap between theoretical learning and practical
application, gain exposure to professional environments, and study the full range of services
offered by the organization.
During my internship at Nepal Investment Mega Bank Limited, Biratchowk Branch, I
gained hands-on experience, particularly in the Customer Service Department (CSD). My
tasks included preparing cheques, account statements, and overdraft statements, among other
duties. These responsibilities allowed me to apply the theoretical knowledge acquired in
college to real-life situations, providing essential insights into professional banking practices.
As BBA students must compete in a challenging job market, internships like this serve as a
vital step toward career development, offering practical exposure and experience that prepare
us for future challenges.
 CHAPTER I
INTRODUCTION

Background of the study

Tribhuvan University is the largest and oldest university in Nepal. It is the pioneer
university in providing management education and since its establishment. It provides a wide
range of streams in the educational sector among which management education holds a major
position. It introduced the BBA program in the year 2001/02 with an objective of producing
middle-level managerial professionals. Bachelor in Business Administration (BBA) is the
undergraduate level program of Tribhuvan University (T.U.). It is a four-year course with 120
credit hours comprehensive bachelor degree program. The program is committed to
imparting the students with practical knowledge.
As per the requirement of Faculty of Management (FOM) of Tribhuvan University,
students of Bachelors in Business Administration (BBA) should perform the internship in any
organization for eight weeks. Simply this study is used for the partial fulfillment of BBA
course affiliated to T.U. The FOM, Tribhuvan University has its ultimate objective of
educating students for professional pursuits in business, industry and government. Although
the course design is very much practical in all the semesters with field work, report
preparation and presentations, the internship at the last semester aims in providing the
students with real world experience as to how the jobs in the organizations are performed,
what are the issues the business firms need to address and many others. The internship is to
serve the purpose of acquainting the students with the practice of knowledge of the discipline
of an organization and helps the student to understand corporate social responsibility, develop
the corporate attitude and venture entrepreneurship.
The BBA program has incorporated eight weeks internship program with a view to
developing students’ skill in object-oriented business management, capable of understanding
and solving real-life business-related problems. So, being the student of BBA, this is a report
on the CSD of NIMBL as one of the leading Commercial Bank of Nepal and since I had
completed my internship from the Biratchowk branch, all the details related to the Customer
Service is based on that branch.
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Objectives of the Study

The main objective of the study is to gain valuable and practical insights of general
banking of Nepal Investment Bank Limited. The specific objectives are:
i To determine the range of product and service offered by NIMB
ii To explain the tasks performed in the customer service department (CSD) at NIMB
iii To outline the challenges faced during the internship along with their solutions.

Significance of the Study

Internships are an essential part of gaining real-world experience and enhancing

knowledge and skills in a specific field, which is why they are a key component of the BBA
curriculum. They allow students to apply their theoretical knowledge in practical settings,
providing the opportunity to work in a professional environment and acquire new skills.
While interns are not typically required to take on major responsibilities or make critical
decisions like regular employees, and often may not receive payment, the experience offers
valuable networking opportunities.
Internships also help boost professional confidence and allow students to bridge the
gap between classroom learning and real-world practice. By gaining practical skills, students
can strengthen their resumes, making them more attractive to potential employers. It also aids
in career exploration, enabling interns to experience different roles and identify the paths
they may want to pursue in the future. Ultimately, internships are crucial for BBA students
not only for academic completion but also for meeting short-term staffing needs of
organizations and providing a potential pipeline of future employees for the company.

Methodology of the Study

Research methodology is a systematic approach to solving research problems,

ensuring that the research process is structured, reliable, and valid. In this report, the
methodology has been designed to provide a clear understanding of the operations carried out
at Nepal Investment Mega Bank Limited (NIMB). It aims to present an analysis of the bank,
the activities performed during the internship, and offer conclusions and recommendations
for the bank's improvement.
 3

The methodology section is outlined as follows: -

Organization Selection

Selecting the right organization for an internship is a critical and often challenging
task. Nepal Investment Mega Bank (NIMB) was chosen for its dedication to delivering
exceptional banking services and its important role in Nepal’s financial sector. The selection
of an organization should align with the student’s area of specialization. As a marketing
student, I needed to choose an institution that would enhance my understanding of marketing
strategies within the financial industry. Since commercial banks engage in various marketing
activities to promote their products and services, they provide an ideal setting for marketing
students to gain practical insights. Therefore, NIMB emerged as the best option for my
internship.
To apply for the internship, I submitted several documents, including a
recommendation letter from my college, my C.V., a handwritten application, a copy of my
Plus Two aggregate certificate, and my citizenship certificate, to the branch manager. I also
went through a brief interview process. After successfully completing these steps, I was
appointed to begin my internship at NIMB’s Biratchowk Branch from June 9, 2024, to
August 2, 2024.

Placement

During the internship, the intern was assigned to the Customer Service Department
(CSD) at the Biratchowk Branch. This placement was particularly beneficial, as it provided
the opportunity for direct interaction with customers. The internship began with
anintroduction to the staff and familiarization with the branch’s operational environment. The
supportive and cohesive atmosphere made the learning process smooth and enjoyable. The
staff members at the Biratchowk branch were friendly and highly cooperative, which helped
the intern gain valuable insights into the organizational culture, work environment, and
operational procedures, all under the guidance of experienced team members.

Duration
 4

In accordance with the Tribhuvan University BBA curriculum, interns are required to
complete an eight-week internship period in a workplace setting. The intern’s internship at
Nepal Investment Mega Bank Ltd. took place from June 9, 2024, to August 2, 2024. The
working hours were from 9:30 AM to 5:30 PM, except on Fridays, when the hours were from
9:30 AM to 2:00 PM. This internship proved to be highly beneficial, providing the intern
with valuable real-life experience in the banking sector and a deeper understanding of the
organization's daily operations.
Table 1
Duration of Internship Program

S.N Departments Weeks

. 1st 2nd 3rd 4th 5th 6th 7th 8th
1. Customer Service * * * * * * * *
Department
Source: Field Survey, 2024
Table 1.1 shows that the entire time was spent on learning and observing the works done in
the Customer Service Department.

Data Collection

This report work is based on primary as well as secondary data and the nature of the
data is quantitative. Information required to prepare this report is collected from primary and
secondary sources.

Primary Data

Primary sources are the first-hand source of gathering information. They are collected
in the workplace. Methodology under primary source consists of:
 Discussions with officials of NIMBL.
 Face to Face interaction with customers.
 Observation during the internship.
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Secondary Data

Secondary sources are the second-hand source of gathering information. Secondary

source of collecting information consists of:
 Annual report of NIMBL.
 Brochure, books and published articles of the bank.
 Bank’s website www.nimb.com
 Internship report of previous year students.

Activities performed

During the internship period, intern got an opportunity to perform various types of
activities of Department. Besides this intern also got opportunity to learn about handling
people and tackling with real work situations. 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, filling
of various forms and help them to fill up the different vouchers and forms. Since the limited
access was given by the bank to the intern. So, mostly intern got the time to do clerical works
like issuing checkbooks, sorting files and checking debit cards. The activities performed in
Siddhartha Bank Limited during Internship are;

i. Opening/ Closing of Bank Account.

ii. Printing of cheque and Issuing of cheque.
iii. Helping customers in filling up voucher’s deposits and different forms.
iv. KYC updating.
v. Relationship maintenance.
vi. Dealing with the customers’ complaints.
vii. Handling customer’s queries.
viii. Scanning the document.
ix. Balance inquiry and bank statement dispatching.
x. Distributing ATM cards.
xi. Handling telephone calls, Filing and record keeping.
 6

Limitation of the Study

Since the internship period comprised only of eight weeks the information gather may
alter thereafter. There were some restrictions to study the entire process as per bank’s rule for
interns. The following are limitations of the study:
i. The bank's policy on maintaining confidentiality for certain matters prevented a
thorough analysis of various activities.
ii. The internship period was limited to only eight weeks, making it impossible to
conduct an in-depth study of all the activities across all departments.
iii. Since the internship was conducted in a single organization, a cross-sectional analysis
and comparative study of different organizations within the industry were not
possible.
iv. The report focused solely on the activities of the Customer Service Department
(CSD) of the Biratchowk branch and not the entire organization as a whole.
v. The report was based on the intern's personal understanding of the bank’s operations
during the internship period.
 CHAPTER II
INTRODUCTION OF THE BANKING INDUSTRY

Introduction of the Bank

Bank is a financial institution which deals with money. Bank can be defined as the
financial intermediary between depositors and entrepreneurs. The intermediation takes place
when banks accept deposits from the general public, corporate bodies, and private
organizations and deploys those deposits for profitable determination in the form of loans and
advances.
The bank pays certain amount of money as interest, on the money they have
borrowed. Similarly, they charge interest on the money lent. Interest is always calculated in
certain rate percent per annum. The rate of interest on loans advanced is always greater than
that on deposits. The difference between the two rates is the bank’s margin of income.
Different definitions of bank given by various acts are as follow:
“A commercial bank refers to such type of banks which deals in money exchange,
accepting deposits, advancing loans and commercial transactions except specific banking
related to cooperative agriculture and industry and other objectives.”
-Nepal Commercial Banking Act 2031 B.S.
“Bank or financial institution" means a bank or financial institution which has
obtained a license pursuant to the Act for carrying on banking or financial transaction.”
-BAFIA ACT
Bank is a financial institution which provides financial services that may be in the
form of accepting deposits, advancing loan, providing necessary technical advises, dealing
over foreign currencies, remitting funds etc.”
-Nepal Rasta Bank Act 2002
According to the definitions above, a bank is a financial institution that accepts public
deposits and provides loans to people and corporations in exchange for their securities. It
performs a wide range of services that benefit individuals, businesses, and the general public.
Bank is an institution which collects idle money temporarily form the public and lends to
other people as per need.
 8

History and Origin of Banking

The concept of banking is not a modern development; it began to take shape soon
after humans invented money. While money simplified human life, it also introduced
complexities that early humans needed to address. To manage these challenges, the concept
of banking emerged. Initially, informal banking activities were carried out by moneylenders
and property owners, but over time, these practices became formalized, leading to the
establishment of banks as institutions.
The term "bank" is believed to have originated from the Italian word "Banco," the
Latin "Bancus," and the French "Banque," all meaning "bench," where early bankers would
manage money and keep records. The Jews of Lombardy were thought to be among the first
bankers, conducting their business on benches in marketplaces. If they failed to meet their
financial obligations, their benches were broken, giving rise to the term "bankrupt."
The world's first known bank, the Bank of Venice, was established in 1157 A.D. In
England, banking originated in the 17th century with London goldsmiths who began
accepting deposits from merchants for safekeeping. Public banking first emerged in Italy
with the founding of the Bank of Venice. Following this, two other early banks—the Bank of
Barcelona (1401) and the Bank of Geneva (1407)—were established.
A significant development in banking history occurred in 1694 A.D. with the
founding of the Bank of England, marking the beginning of modern banking. Despite various
challenges, the banking sector has persisted over the centuries and continues to be a vital part
of human life today.
In the present day, banks are no longer limited to collecting deposits and lending
loans. They offer a range of services to help customers manage their financial needs securely
and conveniently, evolving into essential service providers in the fast-paced modern world.
Consequently, banking has become a crucial component of the global economy.

Evolution of Banking Industry in Nepal

The history of banking in Nepal can be seen as a gradual evolution within the
country's financial and economic system. Banking activities, such as lending and borrowing,
have existed since the Vedic period (200 to 1400 B.C.). Historical records show that King
 9

Gunkam Dev borrowed money to rebuild the Kathmandu Valley in the 8th century. Similarly,
Shankhadhar, a merchant in Kantipur, initiated the Nepal Sambat calendar in 880 A.D. after
clearing the nation's debts, indicating the presence of debt services in ancient Nepal.
However, formalized banking in Nepal began during the Rana regime under Prime
Minister Ranodip Singh (1877-1885 B.S.) with the establishment of "Tejarath Adda." This
institution provided loans but did not accept deposits, leaving the financial needs of ordinary
citizens largely unmet. The gap was filled with the establishment of Nepal Bank Limited in
1937 A.D. (30th Kartik 1994 B.S.), marking the start of modern banking in Nepal. This bank
aimed to replace the older, informal system and foster trade and industry in the country.
The establishment of Nepal Rastra Bank (NRB), the nation's central bank, in 1956
A.D. (14th Baisakh 2013 B.S.) under the Nepal Rastra Bank Act of 2012, was another
significant milestone. NRB's primary objective was to regulate the country's monetary policy
and supervise the banking sector. However, the creation of Rastriya Banijya Bank in 1965
A.D. (2022 B.S.), as a government-owned commercial bank, addressed additional needs in
sectors where profit was not the primary motive.
The banking sector further expanded with the founding of specialized institutions like
the Industrial Development Bank in 2013 B.S. (later converted into Nepal Industrial
Development Corporation) and the Agriculture Development Bank in 2024 B.S. It was not
until 1984 A.D. that private banks were allowed to operate with a license. This led to the
emergence of joint venture commercial banks, including Nepal Arab Bank Ltd. (now NABIL
Bank), Nepal Indosuez Bank Ltd., and Nepal Grindlays Bank Ltd. (now Standard Chartered
Bank).
NABIL Bank, established in 2041 B.S., was the first foreign bank in Nepal, marking a
new era of modern banking with foreign investment and technology. Other foreign banks
followed, including Nepal Indosuez Bank Ltd. and Nepal Grindlays Bank, further shaping
the banking landscape.
Today, Nepal boasts a diverse banking sector with 27 commercial banks, over 90
development banks, microfinance institutions, and cooperatives. International banks are also
allowed to operate in Nepal under World Trade Organization (WTO) commitments, further
integrating Nepal into the global banking system. Since the restoration of democracy in
 10

Nepal, economic reforms have led to rapid growth in the banking industry, offering a wide
range of services and innovations to meet the evolving needs of the market.

Classification of Banks

After the restoration of democracy in Nepal, the banking sector experienced

significant growth and development. The government's economic and financial reforms
played a crucial role in increasing the number of banks and diversifying the services they
offer. To ensure effective regulation and control, the Nepal Rastra Bank (NRB) introduced a
classification system for depository financial institutions, based on minimum paid-up capital
requirements and the nature of their functions.
The Bank and Financial Institution Act 2063 (B.F.I. Act) categorized financial
institutions into four classes:
i. Class 'A': These are Commercial Banks, the largest and most significant financial
institutions, which provide a full range of banking services such as accepting
deposits, offering loans, and managing payment systems. They are required to have
the highest minimum paid-up capital among all financial institutions.
ii. Class 'B': This class includes Development Banks, which focus on providing financial
services to promote the development of specific sectors such as agriculture, industry,
and infrastructure. They operate on a smaller scale than commercial banks but are
essential for regional economic growth.
iii. Class 'C': These are Finance Companies, which perform limited banking services
compared to Class A and B institutions. They provide credit services, accept fixed and
saving deposits, and offer personal and business loans but typically focus on smaller-
scale financial activities.
iv. Class 'D': This category includes Microfinance Institutions and Cooperatives, which
provide financial services to underserved populations, particularly in rural areas.
Their primary role is to promote financial inclusion by offering small loans, savings
facilities, and other services to low-income individuals and communities.
This classification system has helped maintain stability in the banking sector,
enabling Nepal Rastra Bank to regulate and oversee financial institutions based on their size,
functions, and capital requirements.
 11

Figure 1
Classification of Bank under NRB

Financial Institution in Nepal

The financial sector in Nepal has evolved significantly over recent years, emerging as
a key contributor to the country's economy. The rapid growth in financial institutions has
reshaped the financial landscape. Here’s a snapshot of the current scenario in Nepalese
financial institutions:
i. Commercial Banks: Nepal hosts 27 commercial banks that provide a comprehensive
range of financial services including deposits, loans, and payment systems. They play
a crucial role in the economic development by supporting various sectors with their
extensive service networks and financial products.
ii. Development Banks: There are several development banks that focus on promoting
sector-specific growth such as agriculture, infrastructure, and small and medium
enterprises (SMEs). They are vital for regional development and play a role in
providing financial services that are not covered by commercial banks.
iii. Finance Companies: These institutions, while fewer in number compared to banks
and development banks, offer specialized financial services including consumer
loans, leasing, and factoring. They serve niche markets and contribute to the
diversification of financial services.
iv. Microfinance Institutions: Microfinance institutions have expanded significantly,
focusing on providing financial services to low-income individuals and small
businesses, particularly in rural areas. They are essential for promoting financial
inclusion and supporting the underserved segments of society.
 12

v. Cooperatives: Numerous cooperatives operate across Nepal, offering financial

services such as savings and loans to their members. They play a significant role in
promoting community-based financial solutions and are integral to the rural economy.
Foreign Banks: International banks have established a presence in Nepal, enhancing
competition and introducing advanced banking practices. They offer specialized
services and contribute to the global integration of Nepal’s financial sector.
vi. Regulatory Framework: The Nepal Rastra Bank (NRB) oversees and regulates all
financial institutions, ensuring stability, compliance, and effective operation. The
regulatory framework includes stringent requirements for capital adequacy, risk
management, and operational practices.
vii. Technological Advancements: There has been a notable increase in the adoption of
technology in the financial sector. Digital banking, online transactions, and mobile
banking services have become widespread, improving accessibility and convenience
for consumers.
viii. Economic Impact: The financial sector’s growth has positively impacted various
sectors of the economy, including trade, industry, and infrastructure development.
Financial institutions have facilitated investment, promoted economic activities, and
supported overall economic growth.
Overall, the financial sector in Nepal continues to grow and diversify, contributing
significantly to the national economy and improving the financial services landscape for
individuals and businesses alike.
Table 2
Classification Financial Institution in Nepal

Components Minimum Paid up Capital

Commercial Banks 8000 million
Development Banks (national level) 2500 million
Development Banks (4-10 district) 1200 million
Development Banks (1-3 district) 500 million
Finance Companies (national level) 800 million
Finance Companies (operating at least in districts) 800 million
Finance Companies (operating in maximum 3 districts) 400 million
 13

Micro Finance Companies (national level) 100 million

Micro Finance Companies (Operating in certain 60 million
Development region)
Micro Finance Companies (Operating in maximum 3 20 million
districts)
Micro Finance Company (Operating in maximum 3 districts) 10 million
Source: Annual Report of NRB, 2023

Introduction of Commercial Banks

Commercial banks are central to the financial system, acting as key financial
intermediaries. Their role involves pooling the dispersed savings of the community and
channeling these funds into productive use, thereby generating profit. They accept deposits
from individuals and organizations and provide loans to various entities, including
individuals, businesses, and governments. By facilitating the movement of funds from
surplus units to deficit units, commercial banks contribute to the effective mobilization of
resources, which supports economic growth.
Commercial banks are the largest group of financial institutions by asset size. Their
primary goal is to earn a profit, similar to other business entities. They do this by lending a
portion of their deposited funds at a higher interest rate than what they pay on those deposits.
The difference between the interest rates on loans and deposits constitutes their main source
of income. Besides their core banking functions, commercial banks operate under the strict
supervision and regulation of the central bank to ensure financial stability and compliance
(Peter, 2000).
In Nepal, Nepal Bank Limited holds the distinction of being the first commercial
bank, established in 1994 B.S. (1937 A.D.). It was followed by Rastriya Banijya Bank, which
began operations in 2022 B.S. (1965 A.D.). With the onset of economic liberalization in
Nepal, the country opened up to foreign commercial banks nearly a decade ago. This led to
the establishment of foreign banks in Nepal, starting with Nepal Arab Bank in 1985 A.D.,
and Nepal Indosuez Bank in 1986 A.D., which marked a significant step in integrating
foreign banking practices with Nepal's financial sector (Kandel and Khatiwada, 2072).
.
 14

Function of Commercial Banks

Primary Function

The primary function of a commercial bank include:

 Accepting deposit
 Advancing loan
 Discounting bill of exchange
 Transfer of money

Secondary Function

The secondary function of a commercial bank includes:

 Issuing letters of credit, traveler's cheques, circular notes etc.
 Understanding safe custody of valuables, important document and securities by
providing safe deposit vaults or lockers
 Transferring money from one place to another and from one branch to another branch
of the bank
 Standing guarantee on behalf of its customers, for making payments for purchase of
goods, machinery, vehicles etc.
 Collecting and supplying business information
Providing reports on the credit worthiness of customers

Challenges and Opportunities

The challenges and opportunities of Banking sectors in Nepal are as follows:

Challenges

Some challenges of Banking sectors in Nepal includes:

i. High competition among banks in Nepal.

ii. Globalization and increasing mergers and acquisition.
iii. Burning global issues of money laundering and terrorist financing.
 15

iv. Risk of cyber fraud, security issues and other arising issues of internet.

Opportunities

Some of opportunities of Banking sectors in Nepal includes:

i. Opportunities to explore into the rural markets via innovative products such as
mobile banking etc.
ii. Advancement in technology has developed new ways and tools of performing the
banking activities that has led to the customer convenience.
iii. Peoples changing perception towards different financial institutions iv. Invest in
new sectors and projects.
 CHAPTER III
BRIEF INTRODUCTION OF THE ORGANIZATION

Introduction Nepal Investment Mega Bank

Nepal Investment Bank Limited (NIBL), initially established in 1986 as a joint

venture between Nepalese and French partners, was originally named Nepal Indosuez Bank
Ltd. Crédit Agricole Indosuez, a subsidiary of one of the largest banking groups in the world,
held 50% of the capital.
In 2002, a group of Nepalese companies, including bankers, professionals,
industrialists, and businessmen, acquired Crédit Agricole Indosuez's stake, and the bank was
renamed Nepal Investment Bank Ltd. (NIBL).
After 36 successful years, NIBL entered a new phase in line with Nepal Rastra Bank’s
policy to consolidate the number of commercial banks in the country. On June 10th, 2022,
NIBL signed a Memorandum of Understanding (MOU) with Mega Bank Nepal Ltd. to
merge.
Mega Bank Nepal Ltd., which began operations on July 23rd, 2010, and had a paid-
up capital of NPR 16.122 billion, officially merged with NIBL on January 11th, 2023. The
new entity, Nepal Investment Mega Bank Ltd. (NIMB), aims to provide exemplary banking
services and make a significant contribution to Nepal’s financial sector.
Following the establishment of the joint entity, the total paid-up capital of NIMB has
reached RS 34.12 billion, total capital Rs58 billion and total assets of Rs 4 trillion 71 billion,
similarly the banks total deposit has reached Rs360.2 billion while the total disbursed loan
amount has reached Rs 329 billion. Nepal Investment mega bank has become one of the
leading commercial bank in the country by providing services to a total of 3 million
customers worth 329.06 billion. It is one of the premier Financial Institution of Nepal
consistently living it's Service Pledge to conduct business by continually creating mutually
beneficial relationship with all its stakeholders; Customers, Shareholders, Regulators,
Communities and Staff. The Bank realizes that its success is directly correlated with the pace
at which it fosters its relationship with its stakeholders, so that in every step of its journey,
both parties benefit, succeed and grow together.
 17

“Learn, Save, Earn” is the slogan which drives the Mega Team in furthering banking
services with excellence.
Similarly, after the merger, the number of branches of the bank has increased to 273,
extension counters have increased to 65, branches banking services have increased to 77, and
ATM network has increased to 266. In the near future, the bank has promised to expand its
branch network to cover all 77 districts of the country and ensure access to finance for every
Nepali. Mega Bank offers a wide range of Banking Products and financial services to the
Corporates, Mid-Corporates, SMEs, Consumers and Micro Customers through a variety of
delivery channels.
The Bank is committed to delivering the highest level of professional financial
services with a personal touch, not only to those who are already within the formal banking
arena but also those who till date, have been outside it. Nepal Investment Mega Bank is
committed to providing financial solutions to not just the top middle or bottom of the
Pyramid, but to strive towards providing financial solutions and economic linkages to the
'Entire Economic Pyramid'.
Through this program, the Bank provides small size loans and mobilizes small saving
amongst entrepreneurs and low-income groups and seeks to provide other Banking products
and services that fit their requirements. Bank’s Micro Banking Corporate slogan states:
"Financial Inclusion for Economic Empowerment”.

Organization Mission, Vision and Values

Vision

To be the most preferred Financial Service Provider in Nepal.

Mission

We aspire to be the leading Nepali Bank, delivering world-class services through a

blend of state-of-the-art technology and visionary management in partnership with competent
and committed staff, ensuring the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance to achieve sound financial health with
sustainable value addition to all our stakeholders.
 18

Objectives

a) To develop a customer-oriented service culture with special emphasis on customer

care and convenience.
b) To increase our market share by following a disciplined growth strategy.
c) To leverage our technology platform and pen scalable systems to achieve cost-
effective operations, efficient MIS, improved delivery capability and high service
standards.
d) To develop innovative products and services that attracts our targeted customers and
market segments.
e) To continue to develop products and services that reduce our cost of funds.
f) To maintain a high-quality asset portfolio to achieve strong and sustainable returns
and to continuously build shareholders’ value.
g) To explore new avenues for growth and profitability.

Board of Directors

The Board of Directors is the apex body of the bank, responsible for formulating
policies, strategies, and providing guidance to the management. It consists of seven members,
including four ex officio members: the Governor (who serves as the Chairman), the Secretary
of the Ministry of Finance, and two Deputy Governors. Additionally, the Board includes
three other directors, each appointed for their expertise in economics, monetary policy,
banking, finance, or commercial laws.
The management committee of Nepal Investment Mega Bank in current scenario are
given below:
Table 3
Board of Directors Nepal Investment Mega Bank

Board of Directors Designation

Mr. Prithivi Bahadur Pandey Chairman
Mr. Prajanaya Rajbhandary Director
Mr. Gopal Khanal Director
Mr. Madan Kumar Acharya Director
 19

Mr. Mukti Ram Pandey Director

Mr. Kabi Kumar Tibrewala Director
Ms. Manju Basnet Independent Director

Organization Structure of NIMB

Organization Structure is a system used to define a hierarchy within an organization.

It identifies each job, its function and where it reports to within the organizations.
Organization structure defines how job tasks are formally divided, grouped and coordinated.
Organization structure aims to proper coordination among the various resource and
technologies for the effective functioning of the organization.
The Branch Manager has close and direct supervision to all departments in order to
achieve economic of scale by placing people with common skills and orientation into
common units. The organization structure of NIMB, Biratchowk Branch is shown as follows:
Figure 2
Organization Structure of NIMB, Biratchowk Branch

Product and Services of Nepal Investment NIMB Limited

NIMB has offered different types of products to the general public as well as big
corporate houses and big businesses. The wide range of product is injected in the market in
order to provide diversified products to the consumers.
 20

Deposit Products
NIMB offers the customers a convenience of networked branches/ATMs and facility
of Any Branch Banking Services. The bank gives unlimited saving and withdrawal facility in
the deposit products. The interest rates are calculated on daily basis and kept quarterly on
the customer’s account. The various Deposit Schemes offered by the bank area wide range
of deposit products that caters requirement for customers.
Table 4
Interest on Deposits

S.N. Deposit Types Rates (%) Per Annum

A. Saving Deposit 7.25
1. Prithivi Remittance Account 7.25
2. JananiJanmabhumiSavings Account 7.25
3. NIMBGreenFutureSavingsAccount 5.25
4. AfnaiBachatKhata 5.25
5. EZEEStudent(ESA) 5.25
6. Keta KetiBachatKhata 5.25
7. LotusSavingsAccount 5.25
8. PariwarBachatKhata 5.25
9. KarmachariBachatKhata 5.25
10. EZEESavings 5.25
11. Surakshya BachatKhata 5.25
12. LockerAccount 5.25
13. SavingsBonanza 5.25
14. SavingBranchless Banking 5.25
15. SocialSecurityAccount 5.25
16. Online Savings Account 5.25
17. AccesstoFinanceProgram 5.25
18. CorporateSavingAccount 5.25
19. RetirementFundAccount 5.25
20. CorporateBenefitSavingsAccount 5.25
21. ProfessionalKarmachariBachatKhata 5.25
 21

22. Maya BachatKhata 5.25

23. ShrijansilNariBachatKhata 5.25
24. SwabhimanBachatKhara 5.25
25. TripleBenefitPlusSavingsAccount 5.25
26. ChhorikoSurakshyaBachatKhata 5.25
27. EkSeEkSavingsAccount 5.25
28. PrabardhakBachatKhata 5.25
29. ShareholderSavings Account 5.25
30. FCY USDSavingsAccount 5.25
31. FCY Others Savings Account 1.5
32. JananiJanmabhumiSavings Account-USD 5.75
(NRNAccount)
33. JananiJanmabhumiSavings Account-Others 1.5
(NRNAccount)
34. CallAccount(NPR) 2.625
35. CallAccount(USD) 2.87
36. CallAccount(FCY Other) 0.75
B. Final Deposit
1. IndividualDeposit 9.99
2. RemittanceFixedDeposit 10.99
3. InstitutionalDeposit(IncludingBidding) 7.99
4. GajjabChhaFixedDeposit Fixed Deposit to be 6 times
(Compoundinginterestonquarterlybasis) in 19.5 years
5. GajjabChhaFixedDeposit Fixed Deposit to be 5 times
(Compoundinginterestonquarterlybasis) in 17.5 years
6. GajjabChhaFixedDeposit Fixed Deposit to be 4 times
(Compoundinginterestonquarterlybasis) in 15.5 years
7. GajjabChhaFixedDeposit Fixed Deposit to be 3 times
(Compoundinginterestonquarterlybasis) in 11.5 years
8. GajjabChhaFixedDeposit Fixed Deposit to be 2 times
 22

(Compoundinginterestonquarterlybasis) in 7.5 years

9. RecurringFixedDepositfor 12Months 9.99
10. RecurringFixedDepositfor 33Months 8.99
11. Child Education Plan – 10 years (Recurring 8
Compounding Fixed Deposit)
12. Personal Goal Plan – 12 years (Recurring 7.75
Compounding Fixe Deposit)
13. Retirement Plan -15 years (Recurring Compounding 7.5
Fixed Deposit)
14. FCY Fixed Deposit Account (USD) 7.25
15. FCY Fixed Deposit Account (USD) 2.5
Source: Annual Report of NIMB, 2024
Loan and Advances
Banks are expected to support their local communities with an adequate supply of
credit or loan for all legitimate business and consumer financial needs. In such regard the
various loans and advances provided by NIMB are:
Home Loan
NIMB Home Loan offers attractive product features and easy loan processing. This
product provides you with a complete financial solution for your dream home from
purchasing land and building, construction, extension/renovation of existing building or
Apartment/Colony housing financing, and a SWAP of existing home loan for other BFIs.
Education Loan
NIMB Education Loan has been designed for students who aim for higher studies.
This product allows Nepalese students accepted for enrollment in registered colleges,
Universities or institutions to apply for a loan, to finance their higher education abroad and in
Nepal. The Bank offers this service to students intending to pursue Under Graduation,
Graduation, Post-Graduation Degrees/Diplomas, Doctorate, Engineering, Management,
Information Technology, Chartered Accountancy and Finance, Pilot training, Nursing
Courses etc.
Loan Against Shares
 23

NIMB’s Loan against Shares aids customers in meeting personal financial

requirements to helping them in various investments. Customers or firms and companies can
use this service to invest in shares. The service is also available for individual’s holding
shares of listed companies.
Hire Purchase Loan
NIMB Hire Purchase is the loan facility to finance vehicle for natural person or
Nepali Firms/Companies for income generation/ business purpose.

Clean Social Loan

Clean Social Loan (CSL) is non- asset-based lending. This scheme is designed to
cater salaried/ professional individual to provide financial assistance to meet their personal/
social financial obligation.
Loan against Fixed Deposit
Loan Against Fixed Deposit is provided to fixed deposit holders to meet their short-
term financial requirement by pledging their fixed deposit receipts.
Loan against Gold and Silver
NIMB offers Loan against Gold and Silver to its customers. Nepali citizens above the
age of 21 years can avail to this service provided by NIMB at affordable rates.
Auto Loan
NIMB Auto loan has been designed to meet the need for an individual’s perfect
vehicle. This product helps you to realize the dream by offering the ultimate solution to fit
your financial needs so that you get the care you deserve. NIMB's Auto Loan is fast, easy,
and absolutely hassle-free.
Personal Loan
NIMB Personal Loan has been designed to give a stress free, secure and stable future
to its customers. This product helps Individuals looking for personal investments, creation of
assets, or those in need of immediate financial expenses such as medical, education,
renovation, etc.
Remittance
Remittance refers to the act of transferring or sending certain amount of money by
one party to the other. Nepal Investment Mega Bank Nepal Limited Offers both domestic and
 24

international Remittance Facilities. With the remittance, facilities NIMB help people for
sending and receiving money to/from different places. NIMB generally receive money from
many of the foreign nation. It allows sending money within any area of Nepal by charging
certain charge. NIMB accepts fund from different remits like IME money transfer, Prithivi
Remit Himal remit, city express, western union, Prabhu Money Gram, e-Sewa, Siddhartha
etc.
NIMB Smart
The NIMB Smart is Omni-channel based mobile banking solution strategically
designed with intuitive user navigation for both on App and Web. The NIMB Smart includes
additional features that facilitates the host of innovative solutions on the palm of user’s hand
enhancing the overall customer experience through self-service and assisted customer touch
points.
It is a unified digital banking solution that empowers our customers with the services
of mobile banking, internet banking and digital payments; all in one place delivered right
through their mobile phone. Customers can now literally bank at their fingertips and discover
quick, simple and convenient ways to get complete control over their accounts through their
mobile.
Corporate Banking
Corporate Banking reflects NIMB's strengths in providing corporate clients in Nepal
a wide array of commercial, transactional and electronic banking products.NIMB offers a full
range of client-focused corporate banking services, including Business loan, ME loan
Subsidized Loan, Trade Loan, Trade Services, Microfinance and other non-funded facilities
such as remittance, guarantee etc.
Corporate Lending
NIMB Corporate Lending is solely targeted to meet the requirements of corporate
entities of Nepalese market. Corporate lending includes both funded and non-funded
facilities as per the requirement of corporate entities. Some of the products offered are
Overdraft, Demand Loan, Term Loan, Project Finance and so on. The credit facilities
exceeding NPR.30millions falls under corporate lending.
Finance
 25

Trade finance represents the financial instruments and products that are used by
companies to facilitate international trade and commerce. Trade finance makes it possible
and easier for importers and exporters to transact business through trade. For this letter of
credit and bank guarantee plays the crucial role. A Letter of Credit (LC) is trade-based
facility offered by the bank for assisting local as well as international trade. Bank has been
expanding its list of corresponding banks to facilitate international trade business (hyperlink
List of corresponding banks). If the debtor fails to settle a debt, the bank will cover it in bank
guarantee.
Electronic Banking
We are pleased to introduce our new e-Banking service, which allows you to avail
online banking transactions from any part of the world. With the change in the technology,
Nepal Investment Bank Ltd, more than ever, felt the need for banking convenience for their
clients. You can now access and have full control over your accounts 24 hours 7 days a week.
We welcome you to our website. Please Visit our Featured pages, Advantages page and FAQs
page for further information regarding the available facilities. You can even Download the
form online and apply for this facility. This facility is secure. The transaction facility is made
more secure through the use of NIMBL one Time Password (OTP) facility (NPR 200 annual
charge).
Other Services
 Cards/Service
 Credit Card
 Travel Card
 Online Transaction through ACS
 Payment Gateway
 NIMB Virtual Prepaid International Card
 ATM/PO Withdrawal Limit Details
 ECOM services
 Point of Sale
 Card Discount
 Debir Card Discount
 Debit Card
 26

 E-Service
 Thaili Digital Paisa Online Payments Premier Banking
 Enterprise eBanking Login
 Mobile Banking

Branch Profile

The NIMB Biratchowk branch is situated on the eastern side of Biratchowk near
Gorkha Department Store. The branch manager acts as the head of the bank. Each
department is run by the department in charge. At present there are 8 employees working in
NIMB, Itahari. Out of them 5 are male, 3 are female. NIMB Biratchowk branch is managed
by branch manager Mr. Roshan Kumar Thakur. NIMB Biratchowk branch has extension
counter situated at Dangihat chowk near Bal Jagat Secondary Boarding School consists of 2
employees.

Organization structure at Branch Level

Nepal Investment Mega Bank has flat and horizontal organizational structure in
different department. Each plays an effective role in day-to-day operation and decision
making easy and effective. Each department is well planned to perform several department's
works. Basically, there are two department in NIMB Biratchowk Branch) credit department
and operation department. Within the operation department, four are three sections such as
teller (cash), customer service, remittance and clearing, marketing. And within the credit
department there are two department, loan department and recovery department.
 27

Figure 3
Organization Hierarchy

SWOT Analysis of NIMB

SWOT Analysis is used to evaluate the Strengths, Weaknesses, Opportunities and

Threats involved in a project or in a business venture. It involves specifying the objective of
the business venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieving that objective. SWOT analysis of NIMB reveals
various strengths, weakness it needs to work on and the opportunities that it can grab and
threats present in the environment that it has to focus on and eliminate. The SWOT analysis
of NIMB is as follows:

Strength

a) Strong goodwill, brand name and company image at national level

b) Increasing public interest and confidence to transact in government ownership banks
 28

c) Qualified, Energetic and experienced staffs

d) Friendly environment to work
e) Good relationship between customer and employee.
f) Good quality service.
g) Wide geographic coverage with maximum branches all over the nation

Weakness

a) There is a huge queue in the bank; a smaller number of tellers /cashiers.

b) Inadequate number of ATM’s
c) Inadequate number of staffs resulting in work overload
d) Less promotional activities
e) Bank’s layout is not too catchy and seems messy during critical time
f) Lack of adequate resources (i.e. technical resources to perform task easier and faster)

Opportunities

a) Improving socio-economic scenario of the local public

b) Opportunity for the expansion through e -commerce development.
c) Rate of increasing consumer loan demands.
d) Improving banking technology and services.
e) Favorable customer attitude
f) Utilizing existing company resources.
g) Invest in new sectors and projects

Threats

a) Increased competition in the market in the deposit and loan sectors.

b) Discouraging nation’s political scenario/political instability.
c) Competition from some commercial and foreign banks.
d) Decrease of share price in the market.
e) Changes in the banking technology.
29
 CHAPTER IV
ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED

Background

Working as an intern provides an excellent opportunity to learn in-depth about

banking operations. It allowed me to observe the actual operations of the bank, exposing me
to the real world of banking business. At first, it seemed quite difficult as I was confronted
with several complications that I had never face before. However, in the latter portion of my
internship, I couldn’t say the same. Because I was actually enjoying the tasks that I had to
complete, and furthermore, I noticed myself developing new insights into the banking
industry. During eight weeks of the internship period, the intern was assigned to customer
service department. The placement in this department provided the exposure and
understanding of various services and procedures of the bank and its relationship with
customers. So, I can undoubtedly say that NIMB is one of the best banks to work as an
intern as this bank offers the intern to work in different departments through the support of
the staff.

Activities performed

During the internship at NIMB, Birtchowk Branch Office, I worked at Customer

Service Department. The opportunity to work under these departments was fruitful as I got an
overview of the entire major task undertaken at the respective department even in a short
span of time. The analysis of the activities performed in these departments where I was
engaged are given below:

Activities performed in the customer service department

The customer service department also known as the first desk is one of the most
important and busiest departments for every organization. CSD answers customers queries
and attempts to resolve customers complaints and tries to sell new services to them and
interacting with customers through face-to-face meetings, telephone, mail, fax, and email. In
addition to resolving customers complaints and answering their questions, the customer
 31

service department also takes suggestions from customers who have new ideas that may
improve the image of a company and attract new customers. Considering the importance of
CSD NIMB has given a major focus on this department. The Customer Service Department
at Birtchowk Branch deals with account opening and closing, balance certificate issue,
preparation and issuance of cheque book, providing e-banking facility, issuance of debit
cards, providing statement etc. And following are the major activities that I performed while
working as an intern in CSD:

Account Opening

Account opening is the first phase that makes contact between banks and customer.
The main responsibility of the internee in CSD was to open an account of the customers to
increase the customers and their transactions with the bank. Here, the internee provided
information about various types of accounts available with the required rate of interest. The
required documents and photos had to be submitted by the customers and the form was filled.
Internee helped to fill the form where customers had confusion. The form and documents was
attached and submitted to CSD head madam for further processing. After generation of
account number, it is registered in separate file and signature of the customer is taken. As a
intern I have perform both the duties in NIMB.

Account Closing or Transfer an Account

Sometimes customers have to close their account or to transfer it to another branch.

As an intern we have to provide the necessary information and form to the customer for
closing or transfer an account. Simply account closing form should be filled by the account
holder and submitted to CSD along with unused chequebooks and debit cards. The account
closing form includes account number, account holders name and reason for closing an
account. After receiving the documents from customer intern had to put cancellation stamp
on those cheque slips and register it into different register. Then the documents are
transferred to concerned department and authority and then account get closed. After the
account is closed, the customer had to submit his cheque book and ATM card as well.
 32

Issue Cheque on Demand

After opening an account customer is provided cheque book according to the account
types and rules and regulation of the bank so that customer can with draw money as they
needed. If their cheque slips are finished, they want new cheque book. Customers in CSD
came along with their demand slip along with their finished cheque book. Intern had to print
the cheque slip daily and make sure that the account number of the customer and cheque
requisition slip are same. Intern has to issue the cheque and enter it in the register.

Recording and Sending Document

In the bank there are numerous documents to be handled which are important nature.
During my internship, Internee was only given right to handle documents that are outgoing of
nature. In this regard, records of different account opening document, application for account
closing are recorded in a register book which are checked and signed by staff of both sending
and receiving departments. Sometimes has to handle outgoing documents of other
department by handing it over courier employee at their arrival and making them sign on the
record keeping register. This is very sensitive work because a simple mistake can turn to
blunder if the documents are very important.

Scanning and Printing

While filling up forms online, internee is required to scan various documents as per
requirement. Various documents such as citizenship, licensee, birth certificate, minute of
corporations, registration certificate had to be printed by the internee.

Heading and Making Phone Calls

Many of the customers who can’t come to the bank physically make a call for various
inquires. So, the intern had to receive all those calls and answer to the queries and problems
of the customers. The intern had to speak in polite and clear language. The customers were
called by the bank through call to take their new ATM card and for the submission of
required left documents. The incoming calls are generally made for the balance inquiry,
getting information on account opening, account closing, knowing about banking products
 33

and many other query calls and the calls made for particular employee is transferred to their
respective department. Sometimes outgoing call has to be made if in case of any information
is missed while opening an account, maturity of time deposit.

Balance Checking

Balance Checking is one of the important functions performed by the CSD employee.
Most of the customers frequently ask for their balance in account. So, intern had to check the
balance of account by entering the account number in the respective search heading of the
software. Intern doesn’t have any permission to tell amount in the account other than the
account holder.

Filing and Documentation

Filing and documentation are very important task. The entire paper work has to be
done simultaneously to the computer work. Different files are maintained for filing different
documents. The account holders’ form, their signature cards, and their request slip all are
filed in separate files. The void cheques are also filed. The paperwork of remittance service
of different money transfer agencies is filled differently. The authorized letter received by the
CSD is also filed. Demat, C-ASBA form are also filed and maintained in a system.

Signature Verification

Intern had to check and verify the signature in different forms of the bank and also
had to check the signature on the cheque on the request of customer. Intern deals with
verification of account before opening it. Intern verified the signature before issuing check on
demand, debit cards. Intern had only given the permission to view signature for actual
account holder when they forget their signature.

KYC Form Fill-up and Update

Know your customer (KYC) in the financial sense describe the process by which a
bank checks the identity, background and other aspects of the source of wealth potential and
existing customer. KYC is a term used for customer identification process. It involves
making reasonable efforts to determine true identity and beneficial ownership of accounts,
 34

source of funds, the nature of customer’s business, reasonableness of operation in the account
in relation to the customer’s business, etc. which in turn helps the banks to manage their risks
prudently. The objective of KYC guidelines is to prevent banks being used, intentionally or
unintentionally by criminal elements for money laundering, KYC has two components:
Identity and Address.
While identity remains the same, the address may change and hence the banks are
required to periodically update their records. KYC update is the recent activity that is carried
out in all the bank as instructed by NRB. So, as per the instruction the intern helped
customers to fill up the KYC form at concerned bank.

Maintaining Registers

CSD department needs to maintain different registers for record keeping of daily
activities done in its department. Cheque delivers, ATM deliver, Balance Certificate and
Bank Statement delivery register, etc. should be maintained on the basis of which audit
checks whether the bank has maintained proper records or not at the end of financial year
along with authorized signature of a/c holder and signature of officer who have verified the
signature and proper date should be mentioned.

Marketing of Different Services Provided by bank like Internet Banking and Mobile
Banking

In this modern world customer also like to use modern technology facilities provided
by bank like internet banking and mobile banking. So, they need to be updated about such
facilities and should be well known about taking advantages from such facilities. So, internee
used to provide knowledge and information about such facilities to its customers.

Problems Identified and Problem Solved

Problems Identified

During the internship period, intern had identified few problems in CSD. The
problems encounters are shown as follows:
Problems and Solutions Related to Opening of New Account
 35

a) If an individual lacks their original citizenship, consent from a higher authority is

necessary.
b) Customers who forget to bring required documents, such as photographs, need to
provide them when collecting their cheque book.
c) Interns assist illiterate visitors with completing forms when needed.
d) Interns help customers who find it difficult to fill out forms by guiding them through
the process.
Problems and Solutions Related to Issuance of ATM
a) If there is an error in the account holder's name on the ATM letter, a new letter is
promptly printed, approved, and issued to the customer.
b) Interns help customers withdraw money using their ATM cards, use ATM machines,
and retrieve cards that get stuck in the ATM. If there are insufficient funds in the
account, customers are advised to deposit the required amount to complete their
transaction.
c) When new customers make mistakes during ATM transactions, interns have the
opportunity to demonstrate the correct procedures for using ATMs.

Problem and Solution Related to Issuance of Cheque Book

a) When customers require a cheque book urgently, a cheque is printed and provided to
them immediately with high-level authorization.
b) Interns review all cheques and vouchers filled by customers, inform them of any
missing information, and assist in making the necessary corrections.

Workload Problem
a) During the internship, it was observed that many customers were dissatisfied due to
long waiting times, which were a result of workload problems caused by an
insufficient number of employees in the Customer Service Department (CSD).
b) The software at NIMB experienced frequent malfunctions, leading to long wait times
for customers and issues with system crashes.
 36

Problem Solved

Intern had solved some problems during the internship period in CSD and they are as
follows:
a) Assisted customers in filling out forms when they were confused.
b) Provided descriptions of different account types and their features.
c) Helped locate lost documents.
d) Communicated any problems encountered during customer interactions to the
authorized person for resolution.
 CHAPTER V
CONCLUSION AND LESSON LEARNT

Conclusion

During the internship, the internee had the opportunity to work in the Customer
Service Department (CSD), gaining experience in a variety of tasks. The internee handled
customer queries, printed cheque books and account statements, opened and closed customer
accounts, and filled out forms related to mobile banking, ATM cards, and KYC. They
assisted customers with filling out deposit vouchers and cheques, ensured proper recording
and filing of forms and accounts at the end of each day, and guided unfamiliar customers to
the correct locations within the bank.
The internship provided valuable exposure to the banking environment and culture,
familiarizing the internee with the bank's systems and software and real-life work situations.
They developed skills in handling different types of customers, managing work pressure and
crowds, and communicating effectively and politely. Observing staff behavior towards
customers and colleagues also helped improve their communication and interpersonal skills.
The internee noted that there are differences between theoretical knowledge gained in
class and real-life situations. While textbook concepts such as account types, guarantees,
shares, and computer skills are applicable, real-life work exposes one to additional challenges
such as organizational pressure during peak hours and diverse customer behaviors.
Integrating theoretical knowledge with practical experience will aid the internee in
navigating future work challenges effectively.

Lesson Learnt

The internship period at Nepal Investment Mega Bank (NIMB) provided the internee
with a wide range of practical skills and valuable lessons. Over the eight weeks, the internee
gained hands-on experience and knowledge that contributed to their professional
development. Key lessons, skills, and attitudes learned include:
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I. Effective communication enhances interpersonal skills and fosters positive

relationships. This necessitates a constructive attitude, respect for colleagues, and
thoughtfulness towards supervisors.
II. I gained insights into the critical functions of the Customer Service Department
(CSD), which include opening and closing accounts, printing and delivering checks,
and interacting with clients.
III. I learned the importance of efficient time management. Treating all customers fairly is
crucial, especially when juggling multiple clients. The CSD prioritizes
communication and interpersonal skills to engage customers and build positive
relationships.
IV. Patience is essential when dealing with clients. Remaining calm during customer
interactions is vital, irrespective of the situation. A cooperative approach indicates
that the bank values its clients, and CSD staff should aim to be as helpful as possible
to create a positive impression.
V. Acquired technical skills in using photocopiers and scanners for the bank
documentation process.
VI. I also faced the realities and pressures associated with real-world job responsibilities.
VII. Gained a basic understanding of the bank software system.

Recommendations

Recommendations suggest ways for organizations to refine policies or develop new

strategies for enhanced performance. Here are my suggestions for improving the profitability

Nepal Investment Mega Bank (NIMB) should regularly facilitate knowledge sharing by organizing
seminars or workshops for customers every two to four months.
i To boost profits, NIMB should actively work towards opening new branches in both
urban and rural areas whenever possible.
ii To enhance cash flow, NIMB should prioritize improving its profitability.
iii NIMB must remain flexible to adapt to changes effectively.
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iv To promote investment in profitable sectors, the bank should offer a wider range of
loan products.
v Increasing customer engagement can be achieved by promoting financial literacy
through educational programs.
vi The bank’s financial performance and customer relations can be improved through
attractive schemes and targeted marketing initiatives aimed at specific customer
groups.

REFERENCES
 40

(2023). Annual Report. Nepal Rastra Bank.

Chen. (2022). Bank Capital Requirements: Basel Accords. Retrieved from
https://www.investopedia.com/terms/b/basel_i.asp
Gautam. (2017). Customer Service Department in Commercial Banks,. Nepal Rastra Bank.
History of World Banking . (2024, 09 12). Retrieved from http://www.worldbank.com
Kandel, K. (2072). Commercial Banks in Nepal. Journal of Banking and Finance, 45-56.
NIMB. (2024, 09 14). Annual Report. Retrieved from http://www.megabanknepal.com
NIMB. (2024, 09 14). Background of NIMB. Retrieved from http://www.megabanknepal.com
SIngh. (2017). A Brief History of Banking.
Thapa. (2019). Evolution of Banking Industry in Nepal. Journal of Nepalese Financial
Institutions, 23-34.
Thapa. (2019). Nepal Rastra Bank: A Pioneer in Nepal's Financial Sector, Financial Insights.
78-85.
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APPENDIX

Base Rate and Interest Rate Spread 2081

Period Base Rate (%) Interest Spread (%)

Baisakh 7.98 4.00

Jestha 8.26 4.00
Ashar 8.03 3.99

Shrawa 7.82 3.98

n

Base Rate and Interest Rate Spread 2080

Period Base Rate (%) Interest Spread (%)

Quarter 9.57 5.10

1
Quarter 9.98 4.64
2
Quarter 9.40 4.46
3
Quarter 8.52 3.99
4

Fixed Deposit Rates

S.N. Fixed Deposit Rates % Per Annum
1 Individual – 3 months to 6 months 4.75
2 Individual – Above 6 months to 1 years 5.50
3 Individual – Above 1 year to 2 years 6.00
4 Individual – Above 2 years 6.50
5 Remittance Fixed Deposit 1 year 6.50
6 Remittance Fixes Deposit – Above 1 year to 2 years 7.00
7 Institutional Deposit – Above 2 years 7.50
 42

8 Institutional Deposit – 6 months to 1 year 4.50

9 Institutional Deposit – Above 1 years to 2 years 5.00
10 Institutional Deposit 5.00