An Internship Report

on

…………………………………………………..

Submitted by:

ANKESH KUMAR MISHRA

Exam Roll No: 5616/20
T.U. Registration No: 7.2.3.1739.2020

Submitted to:

Faculty of Management,
Tribhuvan University

in partial fulfillment of the requirement for the degree of

Bachelor of Business Management (BBM)

at the
Mahendra Morang Adarsha Multiple Campus
Tribhuvan University

Biratnagar, Morang
April, 2025

i
 Student Declaration

This is to declare that I have completed the internship report entitled “CUSTOMER
SERVICE DEPARTMENT OF EVEREST BANK LIMITED ITAHARI
BRANCH” under the guidance of Mr. Indra Narayan Deo in partial fulfillment of the
requirements for the degree Bachelor of Business Management` at the Faculty of
Management, Tribhuvan University. This is my original work which I have not
submitted earlier elsewhere.

Ankesh Kumar Mishra

MMAM Campus
Biratnagar, Morang
April, 2025

ii
Company’s Recommendation

iii
 Supervisor’s Recommendation

The internship report entitled “CUSTOMER SERVICE DEPARTMENT OF

EVEREST BANK LIMITED ITAHARI BRANCH” submitted by Ankesh Kumar
Mishra of Mahendra Morang Aadarsha Multiple Campus, Biratnagar is prepared
under my supervision as per the procedure and format requirements laid by the
Faculty of Management, Tribhuvan University, as partial fulfillment of the
requirements for the degree of Bachelor of Business Management (BBM). I, therefore,
recommend the project work report for evaluation.

----------------------------------
(Signature of the supervisor)

…………………
Supervisor
April, 2025

iv
 Phone No: 021-470916
TRIBHUVAN UNIVERSITY
Faculty of Management
Mahendra Morang Adarsh Multiple Campus
Biratnagar, Nepal
BBM Program

Ref No: Date: ……………

Endorsement

We hereby endorse the project work report entitled “CUSTOMER SERVICE

DEPARTMENT OF EVEREST BANK LIMITED ITAHARI BRANCH”
submitted by Ankesh Kumar Mishra of Mahendra Morang Adarsha Multiple
Campus, Biratnagar in partial fulfillment of the requirements for the degree of the
Bachelor of Business Management (BBM) for external evaluation.

Signature: ………………………… Signature: ………………………

Name: Dr. Bhavishya Kumar Mishra Name: Mr. Mohan Kumar shrestha
Chairman, Research Committee Program Director
April, 2025 April, 2025

email: info@mmamc.edu.np
Website: www.mmamc.edu.np, post Box No:65
v
 Acknowledgements

The internship report is prepared for the partial fulfillment of the requirement for the
degree of Bachelor of Business management offered by Tribhuwan University, based
on activities performed and experience gained during the internship period. It would
not have been possible without the generous support and assistance of many people.
Therefore, I would like to acknowledge my gratitude to each one of them. I would like
to express my sincere gratitude to the college administration for providing us with the
infrastructure and other resources needed for the accomplishment of this report.
Similarly, I would to express my deep sincere thanks to Mr. Indra Narayan Deo for
giving me the responsibility to prepare this report along with his guidance, valuable
advice, support, and inspiration. Heartfelt thank you so much for your favor and
support.

I would like to convey my gratitude to Shasank koirala, branch manager of Everest

Bank Limited-Itahari Branch, and all the staffs of the branch for the guidance favor,
and support during the work period. My special thanks to my supervisors in Bank
Sujan Dhakal and Heman Shah for proper guidance, direction, encouragement, and
suggestions despite their busy workload and busy schedule. My gratitude also extends
to my seniors, friends, interns whom I worked with and well-wishers for their support,
insightful feedback, understanding, and encouragement when needed in the
completion of this report. I would like to take accountability for any mistakes that may
have occurred in the report.

Sincerely,
Ankesh Kumar Mishra

vi
Table of Contents
Cover Page ……………………………………………………………………………i
Student’s Declaration ………………………………………………………………...ii
Company’s Recommendation ……………………………………………………….iii
Supervisor’s Recommendation ……………………………………………………...iv
Endorsement …………………………………………………………………………v
Acknowledgement …………………………………………………………………..vi
List of Tables.......................................................................................................................
List of Figure………………………………………………………………………..xii
Abbreviations....................................................................................................................
CHAPTER ONE................................................................................................................
1 INTRODUCTION
1.1 BACKGROUND…...…………………………………………………………1
1.2 OBJECTIVES OF THE INTERNSHIP......................................................................
1.3 METHODOLOGY.....................................................................................................
1.3.1 Organization Selection...............................................................................................
1.3.2 Placement..................................................................................................................
1.3.3 Duration.....................................................................................................................
1.3.4 Activities...................................................................................................................
1.4 LIMITATIONS.........................................................................................................
CHAPTER TWO
2. BRIEF INTRODUCTION OF THE INDUSTRY......................................................
2.1 The Context……………………………………………………………………..7
2.2 Present Situation........................................................................................................
2.2.1 Classification of BFIs and Its Minimum Paid-Up Capital in Nepal.........................
 Money Supply......................................................................................................
 Domestic Credit....................................................................................................
 Deposit Mobilization............................................................................................
 Credit Disbursement.............................................................................................
 Liquidity Management.........................................................................................

vii
 Inter-Bank Transaction.........................................................................................
 Interest Rate..........................................................................................................
 Financial Access...................................................................................................
 Capital Market......................................................................................................
2.3 Challenges and opportunities.....................................................................................
2.3.1 Challenges of Banking Industry................................................................................
● Liquidity Crunch……………..……………………………………………..16
 Threats from Shadow Banking.............................................................................
 Unfair Competition...............................................................................................
 Less Investment in priority Sector.......................................................................
 Political Pressure..................................................................................................
 Low Economic Growth Rate................................................................................
 Workforce Turnover.............................................................................................
 Lack of Sophisticated Modern Technology.........................................................
 Financial Literacy, Accession and Inclusion........................................................
 Investment in Unproductive Sectors....................................................................
 Lack of capital Expenditures................................................................................
2.3.2 Opportunities of Banking Industry............................................................................
 Increasing Investment Potential...........................................................................
 Adaptation of New Technology...........................................................................
 Economic Liberalization......................................................................................
 High Foreign remittances.....................................................................................
 Growth in Deposit and Loan Disbursement.........................................................
 Decreasing in Number of Banks..........................................................................
 Concept of Universal Banking.............................................................................
 Digital Banking Innovations................................................................................
 Rising Middle- Class Population..........................................................................
 Government Initiatives and Subsidies..................................................................
 Growing Real-Estate Market................................................................................
 Improved Banking Regulations............................................................................
CHAPTER THREE

viii
3 Brief Introduction of the Organization.........................................................................
3.1 The Context…………………………………………………………………….20
Vision..................................................................................................................................
Mission................................................................................................................................
Motto...................................................................................................................................
Strategic Focus of Everest Bank.........................................................................................
Joint venture partner with Punjab National Bank...............................................................
Customer Base....................................................................................................................
Network...............................................................................................................................
3.1.1 Awards and Achievements of Everest Bank.............................................................
3.1.2 Pioneering Achievement of Everest Bank................................................................
3.1.3 Organizational Structure of Everest Bank Limited...................................................
3.1.4 Board of Directors of Everest Bank Limited............................................................
3.1.5 Management Team of Everest Bank Limited...........................................................
3.1.6 Everest Bank Limited Itahari Branch........................................................................
3.1.7 Organizational Structure of EBL Itahari Branch......................................................
3.2 Present Situation of Everest Bank Limited..............................................................
3.2.1 Financial Situation of Everest Bank Limited...........................................................
(Source: 30th Annual Report FY 2023/24 AD, EBL)..........................................................
3.2.2 Product and Services Providing by EBL.................................................................
A.Major Deposit Products..................................................................................................
B.Major Fixed Deposit........................................................................................................
C.Major Loan Scheme........................................................................................................
D.Major Corporate Loan.....................................................................................................
E.Card & ATM Services.....................................................................................................
3.3 Challenges and Opportunities.......................................................................................
Strength……………………………………………………..………………………...35
Weaknesses:........................................................................................................................
Opportunities:......................................................................................................................
Threats:...............................................................................................................................

CHAPTER FOUR
4. ANALYSIS OF ACTIVITIES DONE/ PROBLEMS SOLVED...................................
4.1 Introduction of the Activities / Departments / Sections...............................................
4.2 Roles of the Intern and Fitting in the Organization......................................................
 Handle Customer Queries and Grievances...........................................................
 Account Opening..................................................................................................

ix
 Issuance of Cheque Book.....................................................................................
 Issuance of ATM Card.........................................................................................
 Distribution of Different Forms, Vouchers and Slips..........................................
 Providing Bank Balance Certificate & Statement................................................
 Responding to phone calls...................................................................................
 Making calls to the Customer...............................................................................
 Photocopy and Scanning of Documents...............................................................
 Filing and Documentation....................................................................................
 Account Closing......................................................................................
4.3 Experience in the Internship understanding of system, process and
Rationale……………………………………………………………………………...43
4.4 Emergence / Occurrence of Issues, problems or Challenges and how these
problems were solve/ addressed.........................................................................................
● Difficulties in use of Mobile Banking0……………..………………………..44
 Challenges created by NRB New Circulars...............................................
 Nature of Different Customers..................................................................
4.5 Observed Gaps..............................................................................................................
5 CONCLUSION/ LESSONS LEARNT.........................................................................
5.1 Inferences Drawn………...………………..……………………………………..46
5.2 Overall Experience, Learning, Knowledge Gained.....................................................

List of Tables

x
Table 1: Minimum paid – up capital, working areas and core capital, total capital fund
of BFIs in Nepal............................................................................................................12
Table 2: Number of BFIs and their Branches…………………………..
……………..13
Table 3: Financial Situation of Everest Bank Limited……………….……………….27
Table 4: Statement of Profit or Loss of Everest Bank Limited…….
…………..............29

xi
 List of Figures

Figure 1: Organizational Structure of EBL…………………………………..

………………...24
Figure 2: Board of Directors of EBL……………………………….………………………….25
Figure 3: Management Team of EBL……………………………………….………………...25
Figure 4: Organizational Structure of EBL, Itahari Branch……………………...…...26

xii
 Abbreviations

AI Accounting Information
CEO Chief Executive Officer
CG Company Goodwill
SWOT Strength, Weakness, Opportunity, and Threat

xiii
CHAPTER ONE

xiv
1. INTRODUCTION

1.1 BACKGROUND

Tribhuvan University, mostly referred to as TU, is a renowned academy that has been
providing quality education to students since 1959. The university is profoundly
named after one of the greatest kings in history, King Tribhuvan, and is one of the
oldest and largest universities in Nepal and is owned by the state. In the past, TU only
had its programs on constituent campuses. However, the growing number of students
and the increasing demand for quality education from the students led TU to affiliate
with private colleges and has been ranked as top 800-1000 universities in the world as
per the Times Higher Education World University ranking in 2021 with the various
faculties it has been providing. TU has provided undergraduate courses, postgraduate
courses, M. Phil, and PhD. Furthermore, the national university has four faculties
operated by the dean which are: the faculty of management, the faculty of the law, the
faculty of humanities and social science, and the faculty of education. The additional
five technical faculties provided by Tu are the Institution of Agriculture and Animal
Science (IAAS), the Institution of Engineering (IOE),the Institution of Forestry (IOF),
the Institute of Medicine (IOM), and the Institute of Science and Technology (IOST).
Among all these faculties offered by TU, one of the biggest grosses for TU is the
Faculty of Management (FOM). The design and syllabus of the Faculty of
Management provided by TU aims to provide better opportunities to a student in
various sectors as the course is designed in a way that a student can choose from their
field of interest can be an entrepreneur a banker or a digital creator for marketing, and
so on. Also, the course has an essence that the student pursuing the education can
match the professionalism in the global market as well. The various courses provided
by TU for undergraduates under the FOM are BBA, BBM, BBS, BIM, BTTM, BHM,
and BPA. Likewise, in postgraduate TU is running programs for further enhancement
of students which are MBA, MBM, MFC, MPA, MBS, MTTM, MHM, MBA-IT, and
MBA-GLM. All the above programs are run for 4 years and are of semester system
however, BBS is run year-wise.

working In this way, FOM aims to provide insight into the working mechanism that
goes into the real environment and what should be done to enhance the overall
productivity in an industry or in a home, the economy, and so on. Also, this program
was developed to enhance students’ critical thinking skills, leadership skills,

1
communication and networking, effective management, etc. Among other programs in
FOM, BBM is a newly launched program that is offered by TU which was started in
2013 by providing affiliation to six colleges outside the valley. However, in 2014 TU
affiliated two colleges inside the valley which are Nepal Commerce Campus (NCC),
and Saraswati Multiple Campus (SMC). Like the other programs under
undergraduates provided by TU, BBM is also a 4years course and is semester-wise.
The working hours for each subject are 48 hours. Similarly, the total credit hours are
120, where the business tool course is 36 credit hours, business foundation courses are
60 hours, focus area courses are of 15hours, and elective courses are of 9 hours. In
recent times many private and public colleges have been affiliated with TU to run the
BBM program. Therefore, the four-year BBM program at Trinity International
College, Dillibazar, Kathmandu-Nepal with affiliation to TU has been running this
program since 2018. The institution has been following the standard format listed by
TU. Like every college running the BBM program Mahendra Morang Aadarsh
Multiple Campus also has been following the standard format to take out its activity
for the goodwill of the students. As for the completion of this degree, the students
have required an 8-week internship in the last semester. An internship provides an
environment for professional learning experiences and gives students the field of study
in which they have an interest. The opportunity to have an internship as an academic
requirement in the BBM course has created a platform for the students to implement
theoretical knowledge in an organization. The whole course is designed in a way that
the student would have a choice while specializing in their field of study i.e., the
option of choosing among Entrepreneur, Marketing, Banking, and Insurance. The
course has provided the students with a wide variety of industries and organizations to
choose from according to their specialized course of study.
For the internship program, I have chosen Banking industry because to fulfillment my
interest of banking sector and I personally think that the course BBM is perfectly align
with the banking sectors. In banking all the professional activities are done which is
insightful for BBM student to learn work as professional. In the process of selecting of
bank, I choose Everest Bank Limited, Itahari Branch. In the few weeks of internship, I
have experienced insightful skill that enhances my communication skill, customer
handling technique, personality & attitude towards corporate work life. Currently, I
have been designated in Customer services Department (CSD). And also got chance to
work in
IPS, Clearing & Remittance (Back Office). Although it was great opportunity to work
as an intern in a reputed organization, A- class commercial bank i.e. Everest Bank
Limited. I hope after this internship, I will get job opportunity in a vibrant market
place and such reputed organization will recognize my potentiality. This internship
will be very helpful to determined career and to understand how growth takes place.
Interns are treated very well and co-operated by mentors at working place which
shows the organizational culture of an institution. Likewise, internship is going on and
gives expected output after completion.

2
The organization, where I am going to do an internship is Everest Bank Ltd. Itahari
Branch. And Itahari Branch is the 17th branch of EBL. Everest Bank Limited is the
joint venture partner of Panjab National Bank, India. Everest Bank Limited (EBL),
which serves over 14 lacs customers, is a reputable brand for expert and effective
banking services. Since its founding in 1994, the Bank has been one of the nation's top
banks, serving a wide range of societal groups with its services. The Bank, which
serves customers from all walks of life, has contributed to the corporate, agricultural,
and industrial development of the country. The bank has now total 39,167 delivery
channels with a network of 10,098 domestic branches, 2 International branches,
13,350 ATM‟s and 15,719 Business Correspondents. The Bank is having 2
International branches in Gift city, Ahmadabad and Dubai. The Bank has two overseas
subsidiaries viz. PNB International Ltd. London and Druk PNB Bank Ltd. Bhutan.
Bank has its representative offices in Myanmar and Bangladesh. As a joint-venture
partner (holding 20% equity), PNB has been providing top management support to
Everest Bank Limited under Technical Service Agreement. Through its extensive
network connected by the ABBS system, Everest Bank Limited (EBL) offers
customer-friendly services that allow revenue collection counters, and 4 extension
counters nationwide, the bank is incredibly effective and easily accessible to its clients
at any time. The Vision of EBL is “To be a Leading customers to conduct business
from any branch. With 129 branches, 167 ATMs, 32 Commercial Bank with Pan
Nepal presence and become a household name, providing wide range of financial
products and services under one roof.” And Mission of EBL is “Growth through
Banking for ALL.”

3
 1.2 OBJECTIVES OF THE INTERNSHIP

The primary objective of this internship is to fulfill the requirement for the degree of
Bachelor of Business Management. An internship in bank provides valuable insights
such all professional knowledge and skill to the students. So, objectives of internship
are as follow:

 To gain practical knowledge & Professional skills,

 To explore the career paths and future plan,
 To build the professional networks,
 To acquire corporate work environment,
 To Fill the Gap between Practice and Theory.

1.3 METHODOLOGY
This internship report is based on the observation and research methodology. The
observation method is very helpful to collect data because of the physical presence in
the working place and also helps to see how bank perform the task and how customer
react on their service. This observation technique helps to find out behavior of
customer, need and want of customer, problem of customer, banking knowledge etc.
Research is done for collect others financial data such as paid-up capital, annual report
etc of bank. This research is conducted through annual report of financial statement of
EBL, official website of NRB, official website of bank and so. Because of the
protocols, this kind of sensitive data are not provided by the organization directly. So,
intern should collect itself through various sources.
1.3.1 Organization Selection
Being a BBM student specializing Finance as a major subject, so doing internship in
A- class financial institution is always on top priority. The intern has chosen Everest
Bank Limited (EBL), Itahari Branch for the internship program because I have always
wanted to intern at EBL Bank, and it is listed as an A class commercial bank, even
though it is close to my home, making it easier for me to visit the bank as a student.
The selection of organization was not tough because the intern was listing some bank
previously and contact accordingly. During the selection process, I spoke with Mr.
Heman Shah, a staff member, who called me to collect the necessary paperwork and
helped me to reach an agreement between the bank and the intern. The intern was
told to bring a resume,

4
 letter of recommendation from the college, their academic records, their citizenship,
and other documentation. They need this paper in order to assess the intern's choices.

1.3.2 Placement

For duration of two months, the intern is placed in the Customer Service Department
(CSD) of Everest Bank Ltd., Itahari branch, where intern is required to confront and
manage a variety of operational tasks associated with the bank's customer service
department. I am (intern) doing work in CSD under the direct supervision of CSD
officer of EBL Mr. Sujan Dhakal as well as Operation IN charge Mr. Dawa Lama.
Most interns were assigned to the CSD, a department that the bank chose to position
them in because, as new hires, they lacked the necessary skills and expertise of other
departments.

1.3.3 Duration

The internship duration for the BBM program sets by Mahendra Morang Aadarsha
Multiple Campus has been determined for minimum 8 weeks (2 months) which is
ultimately beneficial to the student to enhance skills and knowledge about related job.
This internship was started from 5th Jan 2025 and end when 2 months is completed. As
per our course of Bachelor of Business Management (BBM) 2 months internship is
necessary. In case of time of bank, bank is opened in 10 AM and close in 5 PM but all
staff including intern should reached in before 10 Am and its 9.45 AM. In a week
bank is closed on Saturday and in Friday bank is operated 10 AM to 3 AM. This all-
time schedule is needed to follow by intern as well.
1.3.4 Activities
As we know that bank is the busiest financial institution where many of the
transaction take place in a day. There are many departments i.e. Customer Service
Department, Teller, Back office, Credit Department and so on. There are many task to
perform, accordingly intern has got opportunities to do work in CSD. The activities
performed by intern are as follows:

 Receive telephones and respond customer queries,

 To provide basic information about accounting opening procedures,
 To assist in fill up different form such accounting opening form, KYC form, digital
banking activation form, cheque book requisition form, debit card requisition,
accounting closing form etc,

5
 To helps fill up voucher including deposit voucher, withdrawal voucher, IPS voucher
etc,
 Photocopy and scanning the documents such as citizenship, license, KYC form etc,
 Issuing cheque book, bank statement, embossed card as per the customers
requirement,
 Keep recording of the number of cheque printing and filing the all the documents
orderly and systematically,
 Helped to resolve technical issues of customers such as login of mobile banking
application, reset password, if issues are not solved by intern than give the information
about further official procedure to resolve,
 To helps some illiterate and old age customer in transaction process
 To learn operate Finacle software that bank use. All of the works are done by this
software.
 Handover debit & credit card, cheque book, bank statement to the customers and keep
record manually in register etc.
1.4 LIMITATIONS
This internship has purposed to gain some insightful knowledge and practical skills about
banking and its functions. But as an intern there could be some limitations and they
are listed below:

 Intern has limited time in bank. So, it is not possible to know overall function of bank
like professional.
 There is no access to sensitive customer information such as balances or transaction
history etc.
 There should be limited availability of annual reports, office records and other
published and unpublished sources of data.
 Intern is not allowed using system fully. So, it will be difficult to learn everything just
by seeing etc.
 This data or report might not meet the expectation of experts because intern got
limited information, limited learning period and lack of experiences report could not
be well.
 Intern is not allowed to do work all the department of bank. So, intern could not get
knowledge about core banking system.

6
2. BRIEF INTRODUCTION OF THE INDUSTRY
2.1 The Context
The banking industry is a set of firms, institutions, or groups that operate as banks and
offer people and businesses money to keep, invest, and store. Bank enables its clients
to open an account for investment or savings purposes. Banking is critical to a healthy
economy because of the financial support it offers businesses, families, and
individuals. They provide various resources which include loans to clients for business
startups, property purchases, or funding of education. There are various kinds of bank
such as investment bank, central bank, commercial bank, community bank, and retail
bank and so on. Large corporations and businesses often rely on investment firms to
help them manage their resources. These financial institutions support their clients by
approving and planning mergers and acquisitions and assisting other financial
institutions with capital-intensive transactions. Financial analysts often work in
investment banking to advise clients on investment options. The primary source of
liquid resources that all banking system entities depend on is central banks. The
majority of nations have a central bank that serves as the backbone of the country's
banking system. Commercial banks offer financial services to individuals and
businesses, with physical branches and employees managing withdrawals, deposits,
loans, and asset protection, while also helping companies secure business loans.
Community banks, typically smaller and serving local communities, offer
personalized service and establish ongoing relationships with customers, focusing on
their members and directing their services towards their members. Retail banks offer
financial services to the general public, focusing on individual customers rather than
businesses. They offer protection, deposits, credit options, personal loans, savings,
checking accounts, and real estate mortgage assistance. (Team, 2024)
According to the Crowther, “A bank is an institution which collects money from those
who have it to spare or who are saving it out their income and it lends this money to
those who required it.”
According to the World Bank, “Banks are financial institutions that fund in the form of
deposits, repayable on demand or in short notice.”
According to Nepal Rastra Bank Act 2058, “Bank is a financial institution, which
provides financial services that may be in the form of deposits, advancing loans,
providing necessary technical advice, dealing over foreign currencies, remitting funds
etc.”

7
The Bank and Financial Institution Act, 2073 (2017) defines a bank as a corporate body
that conducts baking & financial transaction.”
The term bank is derived from the Latin word „Bancus‟, Italian word „Banca‟ and
French word „Banque‟ which means „a bench‟ and Germany word „bank‟ which
means joint stock company. The history of banking begins when the first bank „Bank
of Venice‟ was established in Venice, Italy in 1157 to collect fund for wars by King
Monarak in his regime. The very first bank were probable the religious temples of the
ancient world where gold were stored. In the 14th century, Royal exchangers did
banking on the behind of king. Then, Goldsmith did the job of accepting money. The
started charging something taking care of the money and valuables. Money lender
becomes a banker who stated performing the two functions of modern banking
accepting deposit and advancing loans or credit facilities. The modern banking system
started Venice in 1187. Thereafter, other banks were started to open such as Bank of
Barcelona in 1401, Bank of Geneva in 1407, and Bank of Amsterdam in 1607, the
bank of Hamburg in 1619 were established. The „Bank of England‟, first English
bank was established in 1964 A.D. The bank of Hindustan was established in 1770
A.D and it is regarded as the first bank of India. But these banks were not established
according to the law. In 1833 A.D, Banking Act 1833 was introduced in the United
Kingdom which allows opening Joint Stock Company banks, with the expansion of
the commercial activities in the northern Europe, there sprang a number of private
banking houses in Europe and slowly spread throughout the world. In 1838 A.D New
York adopted the free Banking Act, which allowed anyone to engage in banking
business as long as they met certain legal specifications. (Pramesh, 2021)
In the context of Nepal, historical documents show that was some basic bank
operation in practice even in the ancient days. During the periods of 8th „Century
Gunakamdev‟ had borrowed money to reconstruct the Kantipur. „Nepal Sambat‟ was
introduced by Sankhadhar Shankwa; a merchant of Kantipur in 879 or 880 B.S. Nepal
had proven history of money and coins from period of Lichhavi as „Monnaka‟ the
coin issued by the King Mandev. The coins were used by „Mahendra Malla‟ during
Malla regime. And King Prithvi Narayan Shah established „Kausi Toshi Khana‟ as a
banking agency. After that, Tejarath Adda was established in 1933 B.S by Rana Prime
Minister Ranodeep Singh for distribution of loan to the people in security of gold and
other valuables. Government banking business was initiated in Nepal after
establishing of Nepal Bank Limited in 1994 Kartik 30 B.S with authorized capital 10

8
million with an objective of expanding banking service in the country. So, Nepal Bank
Limited is considered as the first bank of Nepal. Then, Nepal Rastra Bank as a central
bank was established in 2013-01-14 B.S under the Nepal Rastra Bank Act 2012. NRB
as a central bank has played a very important role for the development of banking
sector in the country and had substituted Indian currency by effectively circulating
Nepalese currency through different mechanism. Similarly, banking development
continued to advance, Industrial Development Center was established in 2013 B.S and
was converted into Nepal Industrial Development Corporation (INDP) in 2016 B.S.
For the integrated and speedy development of banking system in the country
government set up Rastriya Banijya Bank in 2022-10-10 B.S. and Agriculture
Development bank was set up in 2024-10-07 B.S to finance agriculture sector as well
Agro-based Industries within countries. Liberalization in banking industry was started
after 2040 B.S. Nepal Arab Bank Limited was established in 2041 B.S. Bank and
Financial Institution Act (BAFIA) 2063 was implemented in 2063-04-16 as umbrella
act of banking by replacing from ADBL act 2024, RBB or Commercial Bank act 2031
was enacted financial company act 2042, NIDC act 2046, Development bank act 2052
and it is as BAFIA 2073 (2074-01-01).
Banks are integral to economic development of a country. Bank collects money from
different individuals; businesses etc. and invest it on different development sectors
such as development of infrastructure, agricultural development, industry
development, enhance in technology approach, enhance habit of saving, circulation
and control of money and so on. For this entire bank do different activities likewise
credit creation, collection of deposit and provide interest on deposit, issue of bond and
debenture, funding in business etc. Like a country Nepal, banking industry plays an
important role to enhance economic condition and influence entrepreneurship. Bank
motivates to saving of money by proving interest which make directly positive impact
on people lifestyle. Now we can see every small financial transaction are done through
bank and for this the bank itself also takes initiatives to increase financial literacy
among the general public and to inform them about banking services and their
benefits. Simply, banking industry is the backbone of the country economy. It
generates employment opportunities through various ways. It promoting financial
stability as well as promoting of innovation etc.

9
2.2 Present Situation
In the context of global situation of banking industry, the current situation much better
than it was before. Although banking is the industry that generates the most profits
globally, the market is pessimistic about long-term value creation and gives the
industry the lowest price-to-book multiples. Digitalization takes place in banking
sectors. In the global economic landscape, the banking enterprise, as a pillar of the
financial system, plays a vital position in each economic stability and financial
protection because of adjustments in its scale and structure. Within the context of
monetary globalization, the banking industry wishes to beautify its move-border
financial service competencies and cope with the complexity of pass-border threat
control. Meanwhile, with the upgrading and transformation of business structure,
banks want to keep up with the fashion of commercial development and provide
monetary offerings that adapt to industrial upgrading. This article appears ahead to the
future improvement traits of the banking industry, inclusive of persevering with to
promote green and sustainable development, strengthening global cooperation,
deepening the application of monetary era, and enhancing regulatory structures. The
global economy and expanding budgetary markets have led to a continuous growth in
the money industry, resulting in increased resource amounts, improved resource
quality, and enhanced risk management capabilities. The United States and emerging
markets like China and South East Asia are expected to continue driving global
financial performance. Commercial banks' income has been growing at a CAGR of
0.8% over the past five years, with a projected increase to $2.8 trillion in 2023.
However, interest rates dropped in 2020 due to the COVID-19 pandemic. (Yidong,
2024)
Now technology takes place in everywhere that's why banking are also using advance
technology such AI, ML, digital currencies like bit coins, crypto currencies, digital
wallets and many more which makes banking more flexible and approachable to the
all sectors as well as general public. The concept of digital money is popular now all
over the world because it costs a lot to print paper money. It is significant to save
country resources which used in print of paper currencies. Now it is not necessary to
keep cash with us because bank provides card like ATM card, Debit card, Credit card,
World Traveler card where the currency is loaded as per customer's requirement such
as in USD or other country currencies. Furthermore, many multinational companies
like Apple, Google, Samsung, and Amazon etc. tie up with bank and develop own

10
online payment app like Apple Pay, Google Pay, Samsung Pay, Amazon Pay, Pay Pal,
We Chat, Walmart Pay and other more application. These all make flexible payments
system and make business more profitable. With these all strength the global banking
industry faces numerous challenges, including technological disruption, regulatory
compliance, geopolitical instability, and sustainability shift. These challenges may
threaten profitability and growth, but also present opportunities for innovation and
market growth. Banks' success depends on investing in virtual technology, embracing
sustainable finance, improving customer experience, and staying dynamic.
The present situation of banking in Nepal is considered better than it was before. Open
banking is currently being practiced in Nepal. A large number of banks and financial
institutions are operating their respective businesses. The Banking and Financial
Institution Act, 2073 is being implemented as an umbrella act to regulate
banks and financial Institutions operating in Nepal. It has divided Nepal's banks and
financial institution into 4 categories, namely A, B, C, D and has systematized the
banking system. This act has introduced the concept of an infrastructure development
bank that does not fall into any of the 4 categories mentioned. Nepal Rastra Bank is
functioning as the central bank of Nepal. According to the data published by NRB, the
number of banks and financial institutions has reached 107 as on mid-July 2024. All
these bank are licensed, regulated, inspected and supervised by NRB. The banking
sector in Nepal is becoming modern and service are providing in very conveniently
and flexible way. Banking industry services are shifted to information technology. In
today's era where smart electronic devices are widely used, it seems that Nepal's
banking services are also becoming smart. Nepalese, who were forced to walk for an
hours and stand in long lines to pay bills for water, electricity, telephone, internet etc.,
are now saving time and labor by paying bills with a few touches(clicks) from their
smartphone. Nepal Rastra Bank is currently issuing notes and coins in Nepal. The
printing and minting of notes and coins issued by NRB is done by foreign companies
that offer low rates by inviting global tenders and complying with the specified
conditions. The banknotes currently issued in Nepal are printed by various companies
in countries including China, England, Indonesia, Germany, France and others.
During the implementation phase of federalism, branches of commercial banks had
been expanded in 735 local levels out of 753 local levels by mid-Ashar 2076, and the
process of branch expansion is continuing in the remaining local levels. What can be
understood from this is that banking access is also expanding in rural areas of Nepal.

11
 This can certainly be expected to facilitate the economic level of the rural poor, which
will increase financial inclusion. After the completion of the establishment of
commercial bank branches at each local level, if the work of establishing at least one
branch/ sub-branch of a bank and financial institution in each ward of local level is
completed, financial access and inclusion will be further strengthened, and the Nepali
people will be able to avail themselves of banking services. Currently, the process of
granting licenses for the establishment of new banks and financial institutions is
closed. Since the number of banks and financial institutions makes it impossible to
operate regulation and supervision effectively, the Nepal Rastra Bank has closed the
process of granting licenses. Currently, this bank has been emphasizing mergers and
acquisitions to reduce the number of banks and financial institution. Having a small
number of excellent and strong banks and financial institutions is considered good for
the overall interest of the nation. (Sapkota Dipendra, 2076)
2.2.1 Classification of BFIs and Its Minimum Paid-Up Capital in Nepal
Bank and Financial Institutions Act (BAFIA) 2073, Section 37 has clearly stated, the
classification of BFIs in Nepal as „A‟ class as Commercial bank, „B‟ class as
Development bank, „C‟ class as Finance company and „D‟ class as Micro-Finance
company. As per such act, the NRB shall base on minimum paid up capital of the
BFIs transactions to be operated on by such BFIs, working areas of BFIs, issue license
to concerned BFIs accordingly. The following table shows the minimum paid – up
capital, working areas and core capital, total capital fund of BFIs in Nepal:

Table No: 1

Licensed Core Capital (%) Total Capital Min. Paid-up Capital (RS)
Institutions Fund (%) National Level State
Level
Class A 6 11 800 Cr -

Class B 5.5 11 250 Cr 120 Cr

Class C 5.5 11 80 Cr 50 Cr

Class D 4 8 60 Cr 2 Cr

(wholesale, 10 Cr Retail)

20 Arab
IDB - 11

(Source: www.nrb.org.np)

12
 Due to merger and acquisition, the number of banking and financial institution is
declined and this following table shows the latest update as mid – October 2024:

Table No 2: Number of BFIs and their Branches

Bank and Financial Institution No. of BFIs No. of Branches
Commercial Bank (A) 20 5062
Development Bank (B) 17 1137
Finance Company (C) 17 289
Micro-Finance Company (D) 52 5051
IDB 1 -
Total 107 11539

(Source: Nepal Rastra Bank as on Mid- Oct 2024, www.nrb.org.np)

The banking industry plays an important role in the modern economy. From past few
years whole world faced the economic crisis due to pandemic of COVID-19. It creates
economic downturn in many of the country all over the world. That’s why banking
sectors also suffered from these economic challenges. It hampers the mobilization of
money, deposit and credit creation and many more. Nepal is still facing the economic
challenges after COVID-19 because of lack of well planning, political instability etc.
here are mentioned the monetary situation of banking and financial institution as per
data published by NRB as on Mid-October 2024:
 Money Supply
Broad money (M2) increased 3.4% in the review period, compared to 3.0% in the
previous year, and y-o-y, it expanded 13.3% in mid-October 2024. Net foreign assets
(NFA) increased by 9.3%, from Rs. 101.66 billion to Rs. 184.99 billion after adjusting
foreign exchange valuation gain/loss. Reserve money increased by 4.5% in the review
period, compared to a 2.3% decrease in the previous year, and a yearly increase of
15.1% in mid-October 2024. (Nepal Rastra Bank, 2024)
 Domestic Credit
In the review period, domestic credit increased by 1.7% compared to the previous
year, reaching 6.1% on a y-o-y basis in mid-October 2024. However, the monetary
sector's net claims on government decreased by 3.3%, but increased by 4.4% on a y-o-
y basis in mid-October 2024. The private sector's claims on the monetary sector
increased by 2.8%, compared to a 2.7% increase in the previous year, and by 6.2% on
a y-o-y basis in mid-October 2024. (Nepal Rastra Bank, 2024)

13
 Deposit Mobilization
Banks and Financial Institutions (BFIs) experienced a 2.6% increase in deposits in the
review period, with a yearly growth of 12.8% in mid-October 2024, compared to the
previous year's 2.8% increase. In mid-October 2024, demand, saving, and fixed
deposits accounted for 5.4%, 32.7%, and 54.8% of total deposits, compared to 6.7%,
26.7%, and 60.2% a year ago. The share of institutional deposits in total deposit of
BFIs stood at 35.8 percent in mid-October 2024. Such a share was 36.0 percent a year
ago. (Nepal Rastra Bank, 2024)
 Credit Disbursement
The private sector credit from BFIs increased by 2.5% in the review period compared
to the previous year's increase of 2.3%. The y-o-y credit to the private sector from
BFIs increased by 6.0% in mid-October 2024, the shares of private sector credit from
BFIs to non-financial corporations and households increased by 64.0% and 36.9%,
respectively, private sector credit from commercial banks, development banks, and
finance companies also increased by 2.5%, 2.4%, and 3.9%, respectively. Out of the
total outstanding credit of BFIs, 13.4% is against the collateral of current assets, while
65.8% is against land and building. The outstanding loans of BFIs to various sectors
increased, with the agricultural sector decreasing by 0.4%. During the review period,
BFIs extended term loans by 2.7%, margin nature loans by 17.5%, trust receipt loans
by 17.4%, hire purchase loans by 0.7%, cash credit loans by 1.9%, and real estate
loans by 1.5%. (Nepal Rastra Bank, 2024)
 Liquidity Management
The National Reserve Bank (NRB) absorbed a total liquidity of Rs.7833.40 billion in
the review period, including Rs.590.55 billion through deposit collection auction and
Rs.7242.85 billion through the Standing Deposit Facility (SDF). In the previous year,
the NRB injected Rs.363.45 billion net amount of liquidity through various open
market instruments. The NRB also injected Rs.196.79 billion through the net purchase
of USD 1.47 billion from the foreign exchange market, and Rs.166.54 billion through
the net purchase of USD 1.26 billion. The NRB also purchased Indian currency
equivalent to Rs.115.66 billion through the sale of USD 822.0 million. (Nepal Rastra
Bank, 2024)

14
 Inter-Bank Transaction
The review period saw BFIs' inter-bank transactions totaling Rs.402.45 billion, with
commercial banks accounting for Rs.371.25 billion and other financial institutions
accounting for Rs.31.20 billion. This is higher than the previous year's transactions of
Rs.1494.08 billion, with commercial banks accounting for Rs.1309.73 billion and
other financial institutions accounting for Rs.184.35 billion. (Nepal Rastra Bank,
2024)
 Interest Rate

In the third month of 2024/25, the weighted average 91-days treasury bills rate
remained at 2.96 percent, up from 4.94 percent a year ago. The weighted average
inter-bank rate among BFIs increased from 2.26 percent to 3.0 percent. The average
base rates of commercial banks, development banks, and finance companies stood at
7.29 percent, 9.13 percent, and 10.35 percent, respectively, compared to 9.94 percent,
12.30 percent, and 13.65 percent a year ago. The weighted average deposit rates of
commercial banks, development banks, and finance companies were 5.24 percent,
5.94 percent, and 7.21 percent in the review month, respectively. These rates were
higher than the corresponding rates a year ago, at 7.90 percent, 9.36 percent, and
10.19 percent. The weighted average lending rate was also higher, at 9.33 percent,
10.63 percent, and 11.86 percent, compared to 12.11 percent, 13.91 percent, and
14.61 percent in the previous month. (Nepal Rastra Bank, 2024)
 Financial Access
The total number of BFIs licensed by NRB remained 107 in mid-October 2024. As of
mid-October 2024, 20 commercial banks, 17 development banks, 17 finance
companies, 52 microfinance financial institutions and 1 infrastructure development
bank are in operation. The number of BFIs branches remained 11,539 in mid-October
2024 compared to 11,530 in mid-July 2024. (Nepal Rastra Bank, 2024)
 Capital Market
The NEPSE index increased to 2742.89 in mid-October 2024 from 1864.62 in mid-
October 2023, with a stock market capitalization of Rs.4361.45 billion. The number of
companies listed at NEPSE reached 267, with 129 being Bank and Financial
Institutions, insurance companies, 91 hydropower companies, 22 manufacturing and
processing industries, 7 hotels, 7 investment companies, 4 trading companies, and 7
others. In mid-October 2024, BFIs and insurance companies held a 59.2% share in

15
 stock market capitalization, followed by hydropower companies at 14.7%, investment
companies at 7.9%, manufacturing and processing industries at 5.6%, hotels at 2.8%,
trading companies at 0.5%, and other companies at 9.3%. The paid-up value of 8.39
billion shares at NEPSE was Rs.832.09 billion. During FY 2024/25, securities worth
Rs.5.15 billion were listed, including bonus shares, right shares, and FPOs. The
Securities Board of Nepal approved a total public issuance of Rs.4.76 billion in the
review period. (Nepal Rastra Bank, 2024)
2.3 Challenges and opportunities
With the changing of time, consumer behavior, globalization, trend and technology
etc., banking industry faces the numerous challenges and also enjoying the
opportunities.
2.3.1 Challenges of Banking Industry
 Liquidity Crunch
A time when cash resources are in short supply and demand is high. During a liquidity
crunch, businesses and consumers are charged high interest rates on loans which are
more difficult to obtain also known as liquidity crisis and credit crunch. There are
some causes of liquidity crunch in Nepalese Banking Sector such as low capital
expenditures, institutional inefficiency, imbalance between imports and exports,
shadow banking etc.
 Threats from Shadow Banking
Non-banking institutions are conducted financial activities that operate outside the
scope of traditional banking, which cause the liquidity mismatch and overflow of
money in the market and also effect in the interest rates that provides by bank and
financial institutions to the general public.
 Unfair Competition
Competition is considered healthy but even though some unfair competition might
arises in banking sectors also. This occurs when banks start to provide undue
advantages to some institutions over others. It challenges the regulatory system of
banking industry.
 Less Investment in priority Sector
Banks provide loan on different headings in different interest rate which is best
practice to influence businesses in a country but misused of this facility is creating
challenges to loan sanction.

16
 Political Pressure
Political pressure significantly affects the banking sectors in Nepal; creating
challenges diminish its stability, efficiency and ability to operate sound financial
principle. For e.g. banks may face pressure to approve loan to politically connected
person without proper document, collateral or credit worthiness.
 Low Economic Growth Rate
Economic growth determines the income of people when economic growth is low
people cannot be able to do deposit or due to low disposable income liquidity flow
also decrease. By this banking activities also affected.
 Workforce Turnover
Due to the merger and acquisition, brain drain, shift into the foreign employment
banking sector faces the challenges of workforce turnover. High competition, lengthy
recruitment process, low growth in career, work under pressure etc. also causes of
workforce turnover.
 Lack of Sophisticated Modern Technology
Nepal is still lacking to adapt modern technology because of lack of resources,
traditional work method, and skilled techno-friendly manpower etc., It mostly seems
at the government bank where outdated or old software are used, this cannot work
properly and waste of time of both customer and banks.
 Financial Literacy, Accession and Inclusion
A lack of awareness about financial services and products among the public,
especially in underserved areas, hampers financial inclusion and limits economic
development. In the context of Nepal, rural areas are still under the lack of financial
services. Rural people are unaware about banking working mechanism and its
facilities.
 Investment in Unproductive Sectors
Lending to sectors with low growth potential or returns leads to inefficiencies and
poor financial performance. In Nepal, after lending loan invest in plotting of land and
etc. which cannot generate revenue or employment opportunities.
 Lack of capital Expenditures
Insufficient investments in technology and infrastructure limit banks‟ ability to
modernize and complete effectively. Delays in development, lack of proper financial
planning, evasion of tax etc. are the cause of lack of capital expenditures.

17
2.3.2 Opportunities of Banking Industry
Along with the challenges, banking sector is also enjoying opportunities.
Changing of consumer behavior, business model, trend and technology, regulatory
system, globalization etc., create an opportunities in banking industry. Here are some
opportunities are mentioned:
 Increasing Investment Potential
Emerging rural banking systems and untapped rural areas hold huge potential as well
rising economic activities offer banks opportunities to invest in diverse sectors.
 Adaptation of New Technology
Advancements in digital banking improve efficiency. For e.g. Core Banking System,
scan and pay system through QR scanner, using different digital wallet like E-Sewa,
Khalti, Fone pay and mobile banking. Along with payment through card such debit
card, credit card, ATM card, card swipe and so on. This all increased focus on
cashless transaction accelerates innovation.
 Economic Liberalization
Liberalization policies encourage foreign investments and private-public partnerships
(PPP). Nepal has many commercial banks that are joint venture with international
bank such as Everest Bank Ltd. With Punjab National Bank, India, Nepal SBI Bank
with SBI bank, India etc.
 High Foreign remittances
From Nepal, around 7 lakh people are in abroad for foreign employment. Saudi
Arabia, United Arab Emirates (UAE), Malaysia, Qatar are the main destination for
foreign employment from Nepal. And remittance is a major contributor to liquidity in
the banking system.
 Growth in Deposit and Loan Disbursement
Bank is became a trustworthy institution of Nepal. Growing public trust in banks
results in higher deposit collection and credit distribution. Trend of fixed deposit,
lending loan etc. also help in growth in deposit and loan disbursement.
 Decreasing in Number of Banks
Consolidation through merger and acquisitions reduces unhealthy competition
between banks. As well help to increase capital and services.

18
 Concept of Universal Banking
Enhanced financial literacy and inclusions, particularly in underserved areas, expand
banking outreach. Concepts of joint venture with international financial institution
also expand banking outreach globally in flexible way.
 Digital Banking Innovations
Improved access through mobile and internet banking and transaction to a cashless
economy aligns with global trends. Increasing in digital wallets and digital coins like
Pay Pal, Apple Pay, Bit coins, Crypto currency etc. are example of digital banking
innovation.
 Rising Middle- Class Population
A growing middle-class creates demand for financial products like housing loans,
personal loans and credit cards. It is help to upgrading of lifestyle of people.
 Government Initiatives and Subsidies
Policies promoting agriculture, startups and small-scale industries provide banks with
avenues for focused lending. For this government make different policy on interest
rate, collateral policy and so on.
 Growing Real-Estate Market
An increasing real estate market creates demand for home loans, construction
financing, and property-related services. Nepal is on the way of development and for
infrastructure huge investment is needed. Bank provides a loan as overdraft,
concessional loan etc. with different interest rate.
 Improved Banking Regulations
Modernized regulatory frameworks support risk management, better governance and
confidence building among investors. In Nepal, NRB implements the latest act to
protect banking from risk. KYC (Know Your Customer), AML (Anti-Money
Laundering), Banking Offences etc. are the emerging concept of Nepalese banking
sectors that minimize the risk of terrorist activities, black money market etc.

19
3. Brief Introduction of the Organization
3.1 The Context
Everest Bank Limited is the joint venture partner of Panjab National Bank, India.
Everest Bank Limited (EBL), which serves over 14 lacs customers, is a reputable
brand for expert and effective banking services. Since its founding in 1994, the Bank
has been one of the nation's top banks, serving a wide range of societal groups with its
services. The Bank, which serves customers from all walks of life, has contributed to
the corporate, agricultural, and industrial development of the country. The bank has
now total 39,167 delivery channels with a network of 10,098 domestic branches, 2
International branches, 13,350 ATM’s and 15,719 Business Correspondents. The
Bank is having 2 International branches in Gift city, Ahmadabad and Dubai. The Bank
has two overseas subsidiaries viz. PNB International Ltd. London and Druk PNB
Bank Ltd. Bhutan. Bank has its representative offices in Myanmar and Bangladesh. As
a joint-venture partner (holding 20% equity), PNB has been providing top
management support to Everest Bank Limited under Technical Service Agreement.
Through its extensive network connected by the ABBS system, Everest Bank Limited
(EBL) offers customer-friendly services that allow customers to conduct business
from any branch. With 129 branches, 167 ATMs, 32 revenue collection counters, and
4 extension counters nationwide, the bank is incredibly effective and easily accessible
to its clients at any time.
Vision
The vision of Everest Bank is “to be a leading commercial bank with pan Nepal
presence and becomes a household name, providing wide range of financial products
and services under one roof.”
Mission
The mission of Everest Bank is “growth through banking for all.”
Motto
The mottos of Everest Bank are “Consistent in term of performance & growth,Strong
in term of system and performance and Dependable in terms of return to all
stakeholders.”

Strategic Focus of Everest Bank

The bank has set itself the following broad goals:
 Mobilize deposits through current, savings, term & call deposit accounts and other
instruments

20
 Grants loans & advances with special trust on productive as well as the retail segment,
 Provide treasury services following best international practices,
 Facilitate cross border payment services so as to strengthen remittance inflow,
 Provide custody service
 Provide cash management services and other financial planning services,
 Provide any other businesses that NRB prescribes from time to time.
Everest Bank Limited is a joint venture with Punjab National Bank, India and is a
consistently growing commercial bank of Nepal. The bank has been rendering
professionalized and efficient banking services to various segment of the society
through its widest domestic network and many correspondents across the globe.
Deriving strength from joint-venture partner, it has been steadily growing in size and
operation and has established itself as one of the leading private sector bank of the
country. The bank has recorded commendable performance with consistent growth in
net-worth and profit having one of the lowest non-performing assets in the industry.
The bank is a symbol of consistency, strength and dependability in the Nepalese
Banking Industry. The shareholding pattern of Everest Bank is 39.19% by loan
promoters, 40.83% by public shareholders and 20.03% by Punjab National Bank,
India. (Everest Bank Limited)
Joint venture partner with Punjab National Bank
Punjab National Bank (PNB), joint venture partner (holding 20.03% equity) is one of
the largest public sector banks in India with global gross business at Rs. 23.53 lacs
crore. With its presence virtually in all important centers in India, PNB offers a wide
range of banking services which include corporation and personal banking, industrial
finance, agricultural finance, financing of trade and international banking. Currently
bank has total 55,881 delivery channels with a network of 10,136 domestic branches,
2 international branches, 12,131 ATMs and 33,614 Business correspondents spread all
across the India. As a joint- venture partner, PNB has been providing top management
support to EBL under technical service agreement.
Customer Base
Everest Bank is one the banks with largest customer bases of more than 14.5 lakh
satisfied customers. With clients from all walks of life, the bank has helped the nation
to develop corporately, agriculturally and industrially.

21
 Network
Everest Bank provides customer-friendly services through its widest network all
connected through core banking solution, which enables customers for operational
transactions from any branches. The bank has 128 branches, 7 province offices, 166
ATMs, 32 Revenue collection counters, 4 extension counters and more than 9000
payout agents across the country making it a very efficient and accessible bank for its
customers, anytime, anywhere. Handling Revenue Accounts of Government
Owning to its strong credibility, Everest bank has been authorized to collect revenue
of Nepal Government through its 32 revenue collection counter spread across the
country. It is the only private sector commercial bank handling all kinds of accounts of
Nepal Government and having special counter inside Singh durbar. Everest bank is
responsible for collecting more than 50% of the total government revenue of our
country. (Everest Bank Limited , 2024)
3.1.1 Awards and Achievements of Everest Bank
 The bank was conferred with the “Best Managed Commercial Bank” by NEWBIZ
BUSINESS Award 2019.
 The bank was declared 2nd Best Managed Commercial Bank by Abhiyan National
daily in 2018
 KAROBAR national daily adjudged Everest bank as Number 2 bank under CAMELS
rating in 2018.
 The bank was conferred with the “Best managed Commercial Bank” by ASIAN
PAINT NEWBIX Award 2013.
 The bank was acknowledged as the “Highest Tax Payer among Commercial Banks”
by Nepal Government for FY 2066/69.
 The bank was adjudged as “Number 1 Bank” under CAMELS rating conducted by
KAROBAR national daily in 2012.
 The bank was conferred with “Bank of the Year 2006, Nepal” by the Banker, a
publication of Financial Times, London.
 The bank was bestowed with the “NICCI Excellence Award” by Nepal India Chamber
of Commerce for its spectacular performance under finance sector. (Everest Bank
Limited, 2024)

22
3.1.2 Pioneering Achievement of Everest Bank
These are the pioneering achievement of Everest Bank Limited:
 Recognizing the value of offering a complete range of services, the bank pioneered in
extending various customer friendly products such as Home Loan, Education Loan,
Vehicle Loan, Professional Loan etc.
 Everest Bank is one of the first banks to introduce Any Branch Banking System
(ABBS) in Nepal.
 Everest Bank has introduced Mobile Vehicle Banking Service (Bank on wheel) to
serve the segment deprived of proper banking facilities through its Birtamod Branch,
which is the first of its kind.
 Everest Bank has introduced branchless banking system first time in Nepal to cover
unbanked sector of Nepalese society through biometric machine.
 Everest Bank is first bank that launched e-ticketing system in Nepal using which
customers can buy tickets (Airline, Movie etc.) through internet.
 Everest Bank is the first bank to introduced online payment of NTC Mobile/ PSTN/
ADSL bill or from the counter as well.
 Everest Bank is the first bank to introduce agro- specialized branch “KRISHI
UDHYAM BIKASH SAKHA” at Rajbiraj.
 Everest Bank has introduced Cash Deposit Kisok for the first time in Nepal through
which the customers can deposit cash conveniently.
 Everest Bank introduced “FREEDOM saving account” which allows a minor to
operate their account independently which is the first of its kind in Nepal.
 Reckoning the importance of digitization in banking system, the bank has established
E-lobby at its Head office premises.

23
3.1.3 Organizational Structure of Everest Bank Limited

(Source: www.everestbankltd.com) Figure No 1: Organizational Structure of EBL

24
3.1.4 Board of Directors of Everest Bank Limited

Dr. Bal Gopal Baidhya

Chairman

Kiran Krishna Shrestha - Rakesh Grover- Director [

Director [promoter] Punjab National Bank,
India]

Navin Bhakta Shrestha - Urmila Shrestha - Dr. Tarak Bahadur

Director [Public Share Director [Public K.C. - Independent
Holders] Shareholders] Director

(Source: www.everestbankltd.com) Figure No 3: Board of Directors of EBL

3.1.5 Management Team of Everest Bank Limited

Sudesh
Khalig
Chief Executive
Officer

Keshab Raj Vijay Kumar Ashutosh

paudel Sharma Sharma
Dy. Chief
DGM- Corporate executive DGM- Operation
Officer

Santosh Bishnu
Kumar Prasad
Bhattarai Gyawali
AGM- Retail & SME
AGM- Corporation

(Source: www.everestbankltd.com) Figure No 4: Management Team of EBL

3.1.6 Everest Bank Limited Itahari Branch
As the seventeenth branch, the Everest Bank Limited was established in September
18, 2005 at Itahari. It seems like successful branch in Itahari because Itahari is
commercial place and growing economic activities help in growth of bank. Bank has
numerous customers at here. It provides all facilities to the customers such as deposit

25
and withdrawal, credit facilities, clearance and etc.

26
3.1.7 Organizational Structure of EBL Itahari Branch

Branch Manager
[Shashank Koirala]

Operation Incharge Credit Incharge

[Dawa Lama] [Dinesh
Back Office
Adhikari]
CSD [Sujan Asst. Gaurav Asst. Suraj Jr. Asst.
Dhakal- Teller] [Heman Shah- Jr
Asst] Gyawali Shrestha Aayush
Acharya
Tax Revenue Cash Counter Messenger Office Attendent
Department [Roshan [Pawan Dahal- [Shyam Kumar [Bhagawati Giri
Chaudhary- Teller] Asst] Rai] Dahal]

(Source: EBL, Itahari BrFigure No 4: Organizational Structure of EBL, Itahari Branch

3.2 Present Situation of Everest Bank Limited
In 2024, Everest Bank Limited (EBL) achieved notable progress in its business
practices and performance, enhancing its standing as one of Nepal's top financial
institutions. In the first quarter of FY 2081/82, the bank reported a net profit of NPR
1.12 billion, a 44.44% increase over the same time in the previous fiscal year,
demonstrating its excellent financial growth. This impressive performance and its
suggested dividend of 15.53% for FY 2080–2081 demonstrate its dedication to
providing value to shareholders. By launching its 130 th at Phidim and 131st at
Phungling branches in Koshi Province, EBL has expanded its operating reach even
further, bringing its overall network across the country to 131 branches. It can now
offer easily accessible financial services throughout Nepal thanks to this development.
(everestbankltd.com)
Additionally, EBL has tax revenue office at Singh Durbar which is connected with
government of Nepal and helps to collection of tax. As well as EBL has made
customer satisfaction a top priority by forming strategic alliances with well-known
companies like the Radisson Hotel Kathmandu, Alfa Health Care, and Hotel Sarowar,
which provide its cardholders and staff with exceptional perks and discounts. The
bank's commitment to offering value beyond standard banking services is
demonstrated by these partnerships. EBL has been at the forefront of technological
innovation, introducing cross-border QR payments through Alipay+ in collaboration

27
 with Nepal Clearing House Limited to facilitate smooth digital transactions for its
clients. These changes, together with the bank's emphasis on technical innovation,
financial expansion, and improved customer service, show how proactive it is in
responding to its customers' changing requirements and bolster its competitive
advantage in Nepal's banking sector. (everestbankltd.com)
Everest Bank Limited (EBL), which provides a variety of financial services,
encourages financial inclusion, and backs infrastructure projects, is a major
contributor to Nepal's economic development. It provides SMEs, startups, and big
businesses with customized loans that promote company expansion, employment
development, and the creation of national income. Additionally, EBL promotes rural
development by lending money for agriculture, which increases the agrarian economy
and productivity. Local economies are boosted by its remittance services, which
guarantee that money reaches families.
3.2.1 Financial Situation of Everest Bank Limited
Table No: 3
Statement of Financial Position
As on 31th Ashadh 2081 (15 July 2024) (Fig in NPR)

Assets Note 31 Ashadh 2081 31 Ashadh 2080

Cash and Cash Equivalent 4.1 8,370,599,472 15,378, 247,980
Due from Nepal Rastra Bank 4.2 40,768,261,011 13,933,794,413
Placement with Bank & Financial
Institution 4.3 6,482, 025,000 5,980,975,000
Derivative financial instruments 4.4 1,664,092,583 598,447,598
Other Trading Assets 4.5 - -
Loan & advances to BFIs 4.6 7,652,663,431 8,076,881,203
Loan & advances to customers 4.7 178,215,398,721 159,479,294,513
Investment Securities 4.8 44,143,619,543 40,201,725,289
Current tax assets 4.9 517,746,655 520,852,132
Investment in subsidiaries 4.10 - -
Investment in associates 4.11 836,283,158 727,809,952
Investment property 4.12 522, 293,275 -
Property & Equipment 4.13 3,891,474,615 3,619,402,714

28
Goodwill & Intangible assets 4.1425,380,760 24,949,153
Deferred tax assets 4.15- -
Other assets 4.162,653,862,223 2, 146, 560, 30
Total Assets 295,743,700,448 250,688,940,248
Liabilities Note 31 Ashadh 2081 31 Ashadh 2080
Due to Bank & Financial 4.17 1,071,804,697 1,219,273,691
Institutions
Due to Nepal Rastra Bank 4.18 - 23,767,053
Derivative financial instrument 4.19 1,630,408,398 646,044,705

Deposits from customers 4.20 232,316,604,842 198,007,807,066

Borrowing 4.21 2,349,196,262 2,664,217,161
Current Tax Liabilities 4.9 - -
Provisions 4.22 - -
Deferred tax liabilities 4.15 125,808,363 173,207,361
Other liabilities 4.23 26,841,481,149 18,979,340,953
Debt Securities 4.24 3,603,613,000 3,603,613,000
Subordinated Liabilities 4.25 - -

Total Liabilities 267,938,916,710 225,317,270,989

Equity
Share Capital 4.26 11,767,903,880 10,698,094,436
Share Premium 238,468,884 238,469,884
Retained Earnings 3,302,368,763 4,110,487,506
Reserves 4.27 12,496,041,211 10,324,617,435
Total Equity Attributes to 27,804,783,738 25,371,669,260
Equity holders
Non- Controlling Interest - -
Total Equity 27,804,783,738 25,371,669,260
Total Liabilities & Equity 295,743,700,448 250,688,940,248
Contingent Liabilities & 4.28 99,722,501,114 79,570,208,933
Commitment 236.28 237.16
Net assets value per share

(Source: 30th Annual Report FY 2023/24 AD, EBL)

29
 Table No: 4
Statement of Profit or Loss
For the Year Ended 31 Ashadh 2081 (15 July 2024) (Fig in NPR)

Note 31 Ashadh 2081 31 Ashadh 2080

Interest Income 4.29 22,547,387,207 22,400,611,241
Interest Expense 4.30 14,899,061,720 14,988,171,055
Net Interest Income 7,648,325,487 7,412,440,186
Fee and Commission income 4.31 1,638,316,134 1,34,521,410
Fee and commission expense 4.32 295,238,165 271,927,310
Net Fee and Commission 1,343,077,969 1,075,594,100
Net Interest, Fee and Commission 8,991,403,456 8,488,034,286
Income
Net trading income 4.33 353,739,528 182,784,199
Other operating income 4.34 160,337,285 94,188,165
Total operating income 9,505,480,270 8,765,006,650
Impairment charge/ (reversal) for
loans and other losses
Net operating income 9,223,076,387 7,993,646,146
Operating Expense
Personal expenses 4.36 2,410,513,670 2,129,930,956
Other operating expenses 4.37 817,116,746 736,668,961
Depreciation & Amortization 4.38 332,374,868 309,475,169

Operating Profit 5,663,071,103 4,817,571,059

Non-operating income 4.39 - -
Non- operating expenses 4.40 494,175 1,286,183
Profit Before Income Tax 5,662,576,928 4,816,284,876
Income tax expenses 4.41
Current Tax Expenses 1,945,126,787 1,447,574,533
Deferred Tax Expenses (Income) 14,225,054 6,594,905
Profit for the period 3,703,225,086 3,362,115,439
Profit attributable to:
Equity holders of the bank 3,703,225,086 3,362,115,439

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 Non- controlling interest -
Profit for the period 3,703,225,086
3,362,115,439
Earnings per share
Basic earnings per share Diluted Earnings per 31.47 31.43
share 31.47 31.43
(Source: 30th Annual Report FY 2023/24 AD,
EBL)

3.2.2 Product and Services Providing by EBL

EBL aims to provide the comprehensive range of flexible and innovative products and
services to satisfy customer needs and wants as well as influence the customer towards
deposit, saving, startup of new business, education, agricultural development, and
infrastructure etc. It always keeps in mind what customer really want to adopt and
how can provide all necessity in approachable way. That’s why EBL has more 14
lakhs satisfied customers in its 30 years of journey. The major products and services
that an offer by EBL has categorized as following:
A. Major Deposit Products
1. Naari Bachat Khata
With the objective to encourage the small savings of women from household and
professions EBL introduced Naari Bachat Khata, where the customer can make small
saving and get higher rate of interest. The features of this account are:
 Highly attractive interest rate
 Issuance and renewable of Debit Card at NRP 50
 Issuance of free cheque book
 Pay bill registration facility
 25% discount on annual locker rent (small locker only)
 i-Banking (Internet Banking) service facility
2. Freedom Saving Account
This unique deposit product has been introduced with an objective to inculcate saving
habits in the minors (who are in the age between 10 to 16 years) and help them in
becoming responsible by allowing them to operate this account independently. A
special savings scheme for minors, who have attained 10 years of age but not crossed
16 years, can open this saving account in their own name singly. No cheque book will
be issued to this

31
 account holder; however the minor is allowed to withdraw money from his/her
account using ATM card or though withdrawal slip.
3. Everest Special Saving
This scheme is designed to satisfy the need of different customer groups having
expectations of wide range of facilities along with highly attractive interest rate.
Features of the account are as follows:
 Medical (Hospitalization) Insurance of Rs. 100 lac.
 Accidental Death Insurance of Rs. 5.00 lac.
 Free ATM Card (Issuance)
 Free DMAT Ac opening charge
 50% dis on rent of small size locker (one time)
 50% dis on issuance of credit card (one time)
4. Hatemalo Saving Accounts
The main objective of this deposit account is to bring the people in rural areas into the
banking arena. So as join hands to the people residing in places other than
metropolitan and sub-metropolitan cities 50% of minimum deposit is contributed by
the bank itself. This deposit account is mainly focused on individual residing in places
other than Metropolitan and Sub-Metropolitan cities. Features of the account are:
 Highly attractive interest rate
 Free issuance of Debit Card (One Time)
 Free Internet and SMS banking
5. Matri-Bhumi Saving Account
In order to cater to the need of Nepalese migrant workers living and working abroad,
Everest Bank launched new saving scheme with key objective to mobilize regular
saving from Nepalese migrant workers & motivate to develop the saving habit. With
no requirement of minimum balance this account has been launched in order to target
Nepalese migrant workers residing abroad. Features of the account are:
 Highly attractive interest rate
 Medical (Hospitalization) Issuance of Rs. 1.00 lac.
 Accidental Death Insurance of Rs. 5.00 Lac.
 Free ATM Card (Issuance)
 Free mobile banking

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  Free DMAT AC opening charge
 50% dis on rent of small size locker (one time)
 50% dis on issuance of credit card (one time)
6. EBL Corporate Salary Account
In order to cater to the need of payroll management of the profit making business
organization bank has launched saving scheme with key objective to mobilize salary
accounts from public/ private institutions. Features of the account are:
 Highly attractive interest rate
 Free SMS banking
 Free ATM Card (Issuance)
 50% discount on credit card charge issuance
 Free DMAT AC opening charge
 Accidental Death Insurance of Rs. 5.00 lac
 50% discount on issuance of credit card (one time)
 One-month advance salary (Max Limit- Rs. 100,000)
7. Everest Maxi Saving Account
The Everest Maxi Saving Account continues to stand out as a premium financial
product designed to cater to the diverse needs of the valued customers, including
individuals, businessmen, and professionals, self-employed individuals and
housewives. This year, Everest Maxi Saving Account has proven to be a cornerstone
of financial excellence and customer satisfied.
B. Major Fixed Deposit
1. Everest Pizza Deposit
This scheme has been launched with an objective to mobilize small & medium sized
deposits from individuals/ institutions intended to have liquidity feature with
flexibility in long-term investment. Further, it also caters to the needs of persons/
entities want to have higher returns than a regular savings account with varying level
of liquidity. The main feature of this product is flexibility. It allows withdrawal (up to
50% of original deposits, in multiple of Rs. 10,000.00 not more than 5 times) even
before the maturity, without any penal charge. The interest on such premature
withdrawal will be deposit has remained with the bank. Depositors may borrow up to
90% of their deposit at interest rate of 2% above the deposit rate.

33
2. Everest Unfixed Fixed Deposit Account
Unfixed Fixed deposit scheme allows benefits of the higher rate of interest with
allowing the facility of simultaneous overdraft against 90% of the deposits. Customers
get a cheque along with the fixed deposit receipts and they can use their money while
earning interest on it. The scheme is suited for all categories of depositors like
individuals, sole prop. Firm, Thrusts and Limited companies who wish to invest their
temporary surpluses in Fixed Deposits, thereby earning higher rate of interest as well
as withdraw or repay the amount in between depending upon their needs.
C. Major Loan Scheme
1. Home Loan
Everest bank aims to fulfill the dream of its customers to own a house by providing
home loan in an attractive interest rate.
2. Vehicle Loan
Owning a vehicle has been made easier and convenient with Everest vehicle loan.
Everest bank aids to purchase car/ van/ jeep/ multi utility vehicles/ Sports utility
vehicle (non- commercial purpose only) for individual and business concerns at an
attractive interest rate with repayment up to 7 years.
3. Education Loan
Everest bank provides loan facilities to help students to achieve their ambition to
pursue higher education in Nepal as well as abroad. Everest education loan covers
admission fee, books and stationery, instruments required for the course undertaken by
the borrowing scholar, monthly fees/ tuition fees, examination fees, caution deposit/
building fund/refundable deposit supported by institution bills/receipts etc.
4. Flexi Loan
Everest bank provides loans to the individuals/ business enterprises for meeting their
business and / or personal needs in the form of overdraft or term loan against the
mortgage of immovable property for maximum of 10 years. Limit for the loans shall
be determined according to the mode of repayment and net disposable income up to
the maximum of 35- 40 times.
5. Agricultural Loan
Loan for undertaking various agricultural activities for production (credit required for
raising crops, short term credit for allied agricultural activities) investment and other
activities as define by NRB to meet the credit and consumption requirement of the
farmers.

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6. SME Loans
Small and medium enterprises are backbone of any developing economy. They are
considered as important engine room for creation of employment and enhancement of
economic growth. With an aim to promote SME development in country, Everest
Bank Ltd Provides SME loan up to Rs. 10.00 crore with an attractive interest rate.
D. Major Corporate Loan
1. Working Capital Finance
The bank provides working capital finance to trading firms, industries and other
business entities by assessing current assets and liabilities. The business can draw up
to the limit determined by the drawing power which is appraised on a regular basis.
2. Project Finance and Infrastructure Finance
Bank provides fund based and non-funded base credit facilities for new project as well
as expansion, diversification, and modernization of existing projects in infrastructure
and non- infrastructure sectors.
3. Trade Finance
Through an extensive globe network that aid domestic and international transaction,
the bank facilities export and import in local and foreign market through offering
facilities like LCs. SWIFT transfer and Guarantees etc. the bank also offers Trust
Receipt, Pre- shipment & post shipment loans as a part of import/ export finance.
4. Consortium Finance
EBL has been arranging financial closure for capital intensive projects like
Hydropower, Manufacturing industries, Hospital, Airlines, and Hotels etc.
E. Card & ATM Services
Bank has maintained a network of ATM machine driven by bank’s own EBL. Switch
solution and the ATMs are Located in diversified locations. Beside of services of cash
withdrawal, balance inquiry, account statement and PIN change, EBL is providing
specific to EBL cardholders through its ATM terminals. EBL cardholders can
generate own PIN number through “GREEN PIN” option available in ATM screen.
EBL cardholders can draw cash without using physical card by using “CARDLESS
WITHDRAWAL” option available in ATM screen. Any eSewa wallet users can
withdraw cash from any EBL ATM which is new in the industry. Bank is accepting
global international networks in its ATMs. The card & ATM providing by EBL are:
 Debit Card

35
 Credit Card
 World Travel Card
 E-Com Dollar (Physical/ Virtual) Card

3.3 Challenges and Opportunities

In the context of Nepal, banking sector is facing numerous challenges such as
unpredictable political action, economic downturn, low investment in potential sector,
less approach of banking service in rural area, lack of financial literacy, and pandemic
like COVID-19 etc. leads to Nepalese banking sector into problem. Major challenges
of banking sector is adopt technology and friendly to its user because major portion of
customers are unaware and non-friendly with technological products and services that
provided by financial institution.
Besides that Nepalese banking sector is enjoying the opportunities as well. Globalization
in trade and commerce banking plays very crucial roles in circulation of finance.
Nepal is growing phase in case of development and bank is the profounding financial
institution that can invest money in huge quantity. Nevertheless technological
advancement provides more fruitful gain in this sector. Different cards like debit and
credit, dollar card, ATM and internet banking etc., make more convenient to financial
transaction which make less time consuming so customers are attracting in banking
transaction. Banking sectors have huge opportunities; they are collaborating with
different small and large business as their payment partner. In sum banking sector is
crucial for well growth of economy.

As the same, Everest Bank Limited is also facing and enjoying various challenges and
opportunities as well. This SWOT analysis presents the current situation of EBL:

Strengthens:
 Strong Brand Reputation: Everest Bank has a well-established reputation for
reliability and quality service in the Nepalese banking sector.
 Collaboration with Punjab National Bank (PNB): Its partnership with PNB (holding a
20% stake) provides technical expertise and international banking experience.
 Wide Network: With branches across Nepal, the bank has a strong physical presence,
providing access to urban and rural customers alike.

36
 Diverse Product Portfolio: EBL offers various banking services, including retail
banking, corporate banking, SME financing, and remittance services, catering to a
wide audience.
 Strong Financial Performance: Consistent profitability, stable asset quality, and a high
capital adequacy ratio reflect financial stability.

Weaknesses:
 Limited Global Reach: Despite its association with PNB, the bank’s global reach is
relatively modest compared to larger international banks.
 Dependency on Traditional Banking: A significant portion of the bank’s business is
reliant on conventional banking methods, leaving it vulnerable to digital disruptors.
 Concentration Risk: High dependency on remittance income and specific sectors can
pose risks during economic downturns.
 Slower Technological Adaptation: Compared to fintech companies and global banks,
EBL’s pace of adopting advanced banking technology is slower.

Opportunities:
 Digital Transformation: Expanding digital banking platforms can improve customer
engagement and attract younger, tech-savvy clients.
 Rising Remittance Inflows: Nepal’s strong remittance market offers opportunities for
growth in remittance-related banking services.
 Expanding Rural Banking: Nepal’s under banked rural areas present an opportunity
for growth through financial inclusion.
 Economic Growth in Nepal: With increasing infrastructure development and foreign
investments, Everest Bank can capitalize on growing credit demand.
 Green Financing Initiatives: Growing emphasis on sustainability creates opportunities
in green financing and environmentally friendly banking products.

Threats:
 Intense Competition: Competition from both domestic banks and new entrants,
including digital-only banks and fintech, poses a challenge.
 Regulatory Challenges: Stricter banking regulations and compliance requirements can
increase operational costs.

37
 Economic Volatility: Nepal’s reliance on agriculture, tourism, and remittance makes
its economy vulnerable to global shocks.
 Cyber security Risks: Increasing digitization exposes the bank to potential cyber
threats and data breaches.
 Exchange Rate Fluctuations: Dependence on foreign remittances makes EBL
susceptible to currency exchange rate risks.
In the sum of above analysis Everest Bank Limited, a prominent Nepalese commercial
bank, is known for its strong brand reputation and extensive network of branches. Its
collaboration with Punjab National Bank enhances its technical expertise and
international banking experience. Everest Bank Limited (EBL) faces challenges such
as intense competition from domestic and international banks, emerging fintech
companies, and strict regulatory requirements set by Nepal Rastra Bank. The bank
must also constantly upgrade its digital infrastructure to address resource and cost
issues. The digitization of banking services exposes the bank to cyber security risks.
However, EBL has significant opportunities to leverage, such as expanding digital
platforms, focusing on financial inclusion initiatives, offering tailored remittance
products, and leveraging government-led infrastructure projects and foreign
investments. By addressing these challenges and strategically leveraging
opportunities, EBL can strengthen its market position, enhance customer satisfaction,
and achieve sustainable growth in Nepal's evolving banking sector.

38
4. ANALYSIS OF ACTIVITIES DONE/ PROBLEMS SOLVED
An organization has several departments to perform different and specific task at the
same time and flexible manner. EBL has also different departments or sections that
perform roles and responsibilities accordingly. During this 2 months internship, intern
had got opportunities to work in Customer Service Department (CSD) and clearance
department as well. The brief analysis of that intern learned in the internship is
explained below:
4.1 Introduction of the Activities / Departments / Sections
An organization contains structured form of organization i.e. organizational structure.
Organizational structure not only contains form or departments of an organization but
it shows the hierarchy of the organization. Simply, bank or financial institution
contains customer services department (CSD), Teller, Clearing or Back office, Credit
department and others according to the need of organization. As an intern, CSD is the
place mostly intern was engaged. CSS is the major department which is placed at front
of the office. CSD performs very basic but important functions, roles and
responsibilities of bank. The impression make by CSD depend that customer will
retain or not. In CSD has to tackle different kinds of problem because most of the
interactions are done in this section. Problems like communication barrier due to
language, hard to convinced customer, expectation of customers, lack of information
etc. arise in the bank, So the person who are handling CSD should be very polite, well
manner, able to tackle emotional intelligence and do behavior according to the
customer. Hence, the customer retention, success and failure of the bank are depended
upon the function of this department. And this department always focuses on the
maintaining healthy relationship with each and every customer. The major functions
carried out by the intern in EBL are as follows:
 Receive telephones and respond customer queries,
 To provide basic information about accounting opening procedures,
 To assist in fill up different form such accounting opening form, KYC form, digital
banking activation form, cheque book requisition form, debit card requisition,
accounting closing form etc.,

39
 To helps fill up voucher including deposit voucher, withdrawal voucher, IPS voucher
etc.,
 Photocopy and scanning the documents such as citizenship, license, KYC form etc.,
 Issuing cheque book, bank statement, embossed card as per the customers
requirement,
 Keep recording of the number of cheque printing and filing the all the documents
orderly and systematically,
 Helped to resolve technical issues of customers such as login of mobile banking
application, reset password, if issues are not solved by intern than give the information
about further official procedure to resolve,
 To helps some illiterate and old age customer in transaction process
 To learn operate Finacle software that bank use. All of the works are done by this
software.
 Handover debit & credit card, cheque book, bank statement to the customers and keep
record manually in register etc.
4.2 Roles of the Intern and Fitting in the Organization
The involvement as an intern in EBL was very beneficial as the aspects of gaining the
practical insights of banking industry as well as the corporate world. Facing the
various challenging situation at the time of work helped to enhance knowledge in the
intern about core working system of banking industry. During this eight weeks period
of internship, the intern was allowed to assist the employees of EBL in different
department, mainly in Customer Service Department. Brief explanation of activities
and maintained roles by intern are mentioned here:
 Handle Customer Queries and Grievances
To handle quires and grievance comes from customer is very important because customer
wants to be hear. So, the very first task is listening to them and tries to solve their
problem in possible manner. In CSD, various queries and grievances are come such as
needed documents for account opening, mobile banking activation process, interest
rate of FD, FD scheme, balance inquiry, problem in ATM and so on. During the time
of internship, intern learned to how to tackle with queries and give answer to the
customer.

40
 Account Opening
Account opening is the initial step of deposit cash, use of locker and credit activities.
It is the most frequent activities done in customer service department. Customer has to
open account at bank at firstly and then they can make transaction like deposit and
withdrawal etc. Account can be open under various schemes that provided by bank.
EBL also provides different schemes of account such as Naari Bachat Khata, Freedom
Savings Account, Everest Special Saving, Hatemalo Savings Accounts, and Matri-
Bhumi Savings Account and so on. During the internship, intern was taught the
procedure to open account.
While opening of an account, the customers are required to fill up the account opening
form. The account opening form contains the name of account holder, permanent and
temporary address, occupation, contact number, family details, nominee details,
citizenship details, signature of account holder and type of account preferred by
customer (single saving a/c, joint a/c, minor a/c, salary a/c, current a/c etc.) while
opening of an account, intern ensured that the customer fill the account opening form
and KYC form properly and if customer is not known well about fill up the form and
helped them. Intern also knew about the latest circulars that mentioned as new rules
regarding accounting opening procedure. In overall, intern know the overall
procedures, needed documents, minimum required balance for different account types,
types of account, facilities provided in such account holders and many more of
accounting opening process.
 Issuance of Cheque Book
Checks are similar to paper money. The following describes the process an intern
should adhere to when preparing a check. A consumer receives a check when opening
an account with the bank and upon request. In the event that a customer requests a
new checkbook for the second time, they must fill out the requisition form, which is
placed at the end of the book, and give the bank the old check requisition slip. The
intern's responsibility is to file the old requisition slip in the bank's check book
requisition file. Following that, the customer's request is entered into the check book
issuing register.
Additionally, the checks' serial number is included. The CSD supervisor then uses the
Finacle system to confirm the account holder's signature, and if the

41
 signature matches, the CSD supervisor prints the check. The intern's job is to tear the
check from the printer, arrange it according to the number on the check requisition
slip, place the new slip at the end of the book, cover it with the book cover, staple it,
ask the customer to sign the check book issue register, and then give them the new
check book. New account holders receive 10 check slips, with book interns ensuring
they sign the bank's check book register before receiving the check. If the account
holder is not present, the agent who picked up the check should bring the requisition
slip, letter, and photocopy of the agent's ID.
 Issuance of ATM Card
These days, an ATM card serves as a customer's digital wallet. Because no one can
use it unless they know the pin number that was provided to the account holder, it is a
secure way to make money. The EBL account holder must complete the debit card
application form and fill up the details information.
After filling out the form, the intern attaches a self-declaration form, records it in the
debit card record book, and hands it off to the CSD supervisor so the card may be
processed further in the system.
 Distribution of Different Forms, Vouchers and Slips
CSD is all about serving out to the customers. Providing them different forms like set
of accounting opening form including AOF, KYC (personal & corporate), digital
banking form, debit card form, E-Com Dollar form, FD form, statement requisition
slip, sign specimen card, cheque lost form, ATM block request from, deposit
vouchers, IPS voucher, DEMAT form and so for different purpose.
 Providing Bank Balance Certificate & Statement
For the day to day information of transaction, maintain company’s account and for
other purpose customer requests for account statement by mentioning date of needed.
And balance certificate is needed for showing bank balance for abroad study or else
purpose. In this process of intern helped to customer fill up a form, kept record in
record book and filing it.
 Responding to phone calls
The random task was received phone calls and transfers it to clearing department,
credit department, operation in-charge and also listens to their

42
 queries and provided suggestion or pass the information to the related person or
department of bank. And also intern made a call to the customer for gave information
such as KYC update, to bring remaining documents and so on.
 Making calls to the Customer
Following the delivery of the ATM card, credit card, dollar card, QR stand etc. that
the client had requested for to obtain, it was the duty of the employees to contact to
the customers to collect their product. As well as it is the responsibilities to make them
know about various information like update their KYC, loan scheme and interest rate,
give and take their some information for use of banking purpose and so on.
 Photocopy and Scanning of Documents
There are many documents that need to keep in bank for special purpose, so it was
necessary to photocopy and scan of original documents. Documents are like
citizenship, national ID card, driving license, PAN card and so on.
 Filing and Documentation
Filing and documentation is very essential task in bank because it keeps each and
every report. So, not only in computer bank also keeps physical evidence of activities.
For kept recording, intern did photocopy of documents and filing them.
 Account Closing
It is an additional duty carried out within the bank's account operation. While opening
an account may be viewed as a contract between a bank and its clients, shutting an
account signifies the end of that relationship. The intern was instructed to inquire as to
why the account is being closed before doing so. Instead of terminating the account,
they are trained to provide suggestions. Customers shut their accounts for a variety of
reasons, such as the bank's low interest rate, relocation, annoyance, the account
holder's insanity or death, the emergence of other rivals in the area, and more. The
intern made sure the client completes the closing account form. Every request to close
an account must be submitted in writing and properly signed by the client, which the
intern made care of bank fees in the event that an account holder's requisition slip is
lost. When canceling an account, account holders should handover their cheque book
and ATM card to the bank.

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4.3 Experience in the Internship understanding of system, process and Rationale
Working system of banking and financial institution is different and sensitive than
other work function. Millions of money is transacted in a single day and bank should
be trust worthy because people deposit money at there. So being a worker of bank
should be very professional, trust worthy & sensible. There is a corporate work
environment where should strictly maintain the hierarchical order, chain of command
as well as should be responsible and accountable. So, intern got to valuable
opportunities to know about work environment of banking and financial institution.
This provides esteemed insights to the intern. Doing internship at Everest Bank
Limited, Itahari branch was really amazing experience for intern, intern got to learn
and experience various job related tasks and able to caught real time work exposure
how activities are performed. This internship made clear about career path in banking
sector and how fruitful job is this or what are the procedures to get job in these sectors
to the intern.

Besides all of these the most insightful skill that learned from internship was handle
the work under pressure which will useful for a life time.
Communicating and convincing to the people who are come from different
communities and having different in language, tradition, age group, education and
level of understand is really tough. To understand the sociological aspect of people
and treat accordingly is very necessary to make long term client. To being kind to
them and emotional intelligence should help to make loyal customer and they can also
feel familiar and believable environment towards the organization. So, the intern got
to chance to obtain insightful skills and knowledge not only about work process but
along with how to communicate and understand the people. It helps to enhance
communication and convincing skill which will be advantageous to the whole life
career. In overall, intern got to chance this great opportunities and this was possible
the cozy environment that provided by all of the staff members of EBL. And it would
be great decision to do internship in Everest Bank Limited, Itahari branch.

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 4Emergence / Occurrence of Issues, problems or Challenges and how these
problems were solve/ addressed
 Difficulties in use of Mobile Banking
In Nepal most of the people are not techno friendly and customers of bank are not
much known about new banking product like mobile banking, e-banking etc. related
to technology. Most of the customers were face the difficulties in login and operating
processing of such application.
Problem Addressed: As an intern at bank, it was the responsibility to make
convenience and solved their problem accordingly. So, intern helped to customer login
the application, how to operate application, convince about securities procedures such
not share OTP code, transaction pin or password to anyone.
 Challenges created by NRB New Circulars
Nepal Rastra Bank (NRB) has issued various circulars for bank and financial
institutions. Circulars mean different rules and regulations regarding banking
procedures. Now, NRB issued new circulars for account opening process. Some legal
documents are necessary such as original citizenship, PP size photo, utilities bills and
other supporting documents like voter card, PAN card etc., now from Margha 1st
National Identity Card is compulsory and the phone number that used by customer
should be registered in own name. And this circular creates some challenges in term of
convincing to the customer to bring NID compulsory for account opening and KYC
update.
Problem Address: As an intern, it was the responsibility to convince to the customer
to bring this document compulsory with them. Change is complex to everyone so it is
necessary to why this is important, so it was major duties to tell why documents are
needed for bank and brings to them. It is more beneficial to the customers to avoid
fraud and unnecessary problems.
 Nature of Different Customers
Bank is that place where many types of customers are visited to do their work. To
understand different nature of different individuals and treat them accordingly is very
challenging. Those individuals are come from different ethnic group having vary
norms, language, tradition and demographic factors such as age, gender, income level,
family size, education, occupation etc. those all factors decide the psychological and
behavioral aspect of individuals and their attitude and perspective

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 towards the organization. And this is the most challenging tasks to understand socio-
cultural factors and behave with the customers according to their nature. So, mostly
faced challenge was different nature of customers.
Problem Addressed: As an intern, it was difficult to handle such kind of problem and
be friendly with corporate work culture. But it was the duty to understand the people
and be kind with them. So, intern listened very carefully to each customer and tried to
help them in possible manners. Intern presented in very humble and respective way
with each and every individual.

4.4 Observed Gaps

The intern was faced little complexity while trying to implement the theoretical
knowledge into the practices. Interpersonal relation, socio-cultural factors etc. seems
to be simple but it is critical to handle, maintaining the relationship with each
individual and mixing it into the society and profession is quite difficult. The most
observed gap in the organization where intern did internship was lack of staff.
Everest Bank Limited, Itahari is also engaged bank among the other branches. Itahari
is the vibrant city with huge population and majorly it is the commercial place. So,
there was crowd at bank and sometimes it was difficult to handle customers by less
staff. It creates work load on staff and more time consuming for customers.
Thus, intern wants to recommend to the organization to hire or demand for more staff
in Itahari branch for more smooth function and gain more customers and branch
manager should be responsible to improve this lacking part of this organization.

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5. CONCLUSION/ LESSONS LEARNT
5.1 Inferences Drawn
Bank is the very important part of economy. By supporting companies, enabling
financial transactions, and fostering economic stability, banks play a vital role in the
economy. Bank ensures effective capital allocation by serving as a middleman
between savers and borrowers. Banks support economic growth, employment
creation, and corporate expansion by lending money.
Additionally, it provides necessary services that promote financial stability and
consumer spending, such as investment options, savings accounts, and payment
processing. Banks also help execute monetary policy by managing inflation and
interest rates. They supply liquidity to keep the financial system stable during
emergencies. In general, economic growth and prosperity depend on a robust banking
industry.
With the goal of offering competitive and cutting-edge banking services in the
Nepalese financial industry, Everest Bank Limited is one of the rapidly expanding
banks. The strength of a bank and its bankers are determined by the quality of the
loan, the borrower, the securities and its valued customer.
According to the analysis of mentioned data, EBL appears to be one of the most
diligent commercial banks committed to providing exceptional customer service. The
intern gained extensive knowledge of banking operations and activities in the
Nepalese market, specifically with regard to EBL, throughout this internship term. In
many respects, the internship has been beneficial. The intern's knowledge, perspective,
confidence, and managerial skills have all expanded as a result of the internship. The
opportunity to learn about the banking industry in a real-world setting was excellent.
Our theoretical analysis differs somewhat from the real-world examples. Additionally,
the intern has learned how to interact with a variety of individuals, including senior
staff and fellow interns, in order to create a more upbeat, pleasant, and welcoming
work atmosphere. In addition, the supervisors were very helpful in providing guidance
for our internship program.
In these eight (8) weeks internship, intern was placed at the customer service
department (CSD). Customer service department is where all the main functions of
bank are carried out and intern got an opportunity to learn about how the financial
industry operated and how corporate sector perform work in

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systematic manners. Before an internship, intern had little knowledge about bank and
its functioning system but after this internship, intern able to know what is actually
bank and how does it work very closely. Customer Service is the front desk of any
organization, providing essential information to customers. It is the busiest department
in banks, making an early impression on clients. It handles activities like opening new
accounts, closing existing accounts, issuing cheque, balance inquiries, statements, and
issuing debit cards. Highly satisfied customers become loyal, buy new products, and
pay less attention to competitors. The efficient functioning of the Customer Service
department is crucial for organizational success. Customer service is crucial in
businesses as it focuses on customer feedback and outputs. Establishing a dedicated
department can improve sales, service quality, and delivery efficiency. Maximizing
customer service can be achieved through convenient operation hours, new
technology, excellent online service, customer service training, and other techniques
and equipment. And intern analyzed that Superior customer service may increase a
bank's capacity to attract wealthy customers, boost profitability, reduce operating
expenses, and foster client loyalty. A bank may see remarkable outcomes when it
invests in the training of its customer care representatives.
It was great experience to working as an intern in the Everest Bank Limited, Itahari
Branch. The working environment was very flexible and enjoyable. There was good
relation, communication and healthy competition between all personnel. Each and
every staffs of EBL were very professional having all kind of theoretical, practical as
well as technical knowledge and majorly had very kind and helping nature. All
personnel creates friendly environment at office where no one feel any kind of
pressure and competition to each other, that delightful working environment made
intern curious to know more about banking profession and easy to learn or able to
learn very quickly. Working at Everest Bank Limited as an intern was an outstanding
opportunity to develop conceptual and analytical insights about banking sector in
Nepal.

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5.2 Overall Experience, Learning, Knowledge Gained
Being in the exposure as the intern in Everest Bank Limited had been really immense
proficiency and working as an intern majorly offered to learn how practical
implication help to enhance our knowledge, skill and ability to set career. Hence it is a
significant platform for our future career. Besides this, intern got to chance know
themselves like ability and lacking points that should be improve for better career.
Working at corporate sector provides very professional and insightful experience to
the intern. This experience helped to the intern to shaped new concept about work
culture, interpersonal relationship, and business environment, value of customer for
business, career goals, and sociological factors which will be great lesson for life time
in professional journey. Everest Bank Limited, Itahari Branch had provided valuable
lessons and knowledge learnt as follows:
 Learned various functions and activities of CSD and few more of credit and clearance
department of bank.
 Gained social exposure with different kind of customers from different background
since EBL, Itahari branch deals with its different customers in the process of
delivering its services.
 Learned to coordinate with each of personnel for smooth operation of the bank.
 Learned about the importance and role of the banking industry in the development of
the economy and current situation of banking industry of Nepal.
 Learned to implement theoretical knowledge into the practical working environment
and also be aware of the loop holes between theoretical knowledge and real life
scenarios.
 Learned about corporate work culture, efficient management system, working
environment that the fact behind of success of Everest Bank Limited despite the heavy
workload.
 Got opportunity to learn banking software such Finacle, Nakshetra and other technical
term that use by EBL.
 Got chance to learn about Any Branch Banking System (ABBS) and Core Banking
System.

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 Learned about work flow, chain of command and hierarchy of an organization. As
well as importance of time management and punctuality.
 Learned about importance of communication skills to main relationship with
customers, colleagues, seniors and fellows and so on.
In closure, in this entire period of internship, it had been such a short time but great
journey with valuable experience, knowledge and fun. It has boost up the confidence
of intern to work more effective way and help to find gateway for future career in
banking industry. By this internship, it has given adequate feedback on how to tackle
challenges in practical terms and mix up with organization culture for betterment of
individual as well as organization success.

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