CHAPTER: ONE

INTRODUCTION

1.1 Background of the Internship Report

In the 21 century the education system has been developed from class to practical
because the classroom education help to get degree and the practical (i.e. internship
program) helps to makes the theories and learned examples concrete by placing the
student in a real life work situation performing actual professional tasks, which the
jobs encompasses So the Purbanchal University which is a public university in Nepal
has made a compulsory subject for the student of BBA in the 7 semester. Purbanchal
University is the pioneer university in providing management education in Nepal and
since its establishment it has been providing excellent education to the students. PU
has designed various management degrees under Faculty of Management (FOM) and
among them one of the outstanding developments is in the form of Bachelor of
Business Administration (BBA). This program is felt necessity to link between
knowledge and practice to give professionalism as the pressing requirement of HR
Development to suit micro-economy needs of the country.
BBA is a full time management program under Faculty of Management, PU with
eight semesters covering an international standard period of four years. In the second
last semester, students are required to work as interns and prepare the internship
report in order to know about the actual working environment and boost up the
performance of students in real world.
Internship is a course that has blended the management concept together with the
information technology. The internship report entitled "Customer Service Department
of HBL is undertaken as per partial fulfillment requirement of BBA program. The
report is based on internship experience of working in Himalayan Bank Limited,
Birgunj branch. The report furnishes details of work done as an intern in Customer
Service Department (CSD). Thus, the internship program can be regarded as a fruitful
opportunity for the students of B.B.A. to be familiar with the corporate working
environment of the particular organization. The report prepared consists of the intern's
work experience gained during the 8 weeks of internship at Himalayan Bank Limited.
The report is generated on the basis of the work done and the careful study made by
the intern on different sectors of the banking system.

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1.1.1 Overview of Himalayan Bank Limited (HBL)
Himalayan Bank Limited, established in 1993 as a Joint Venture of Habib Bank
Limited of Pakistan has been successfully reigning the banking industry since its
inception.
The bank holds the legacy of introducing various banking services for the first time in
Nepal from the very beginning. Products such as Premium Savings Account, HBL
Proprietary Card and Millionaire Deposit Scheme besides services such as ATMs and
Tele-banking were first introduced by HBL which was able to win customers’ hearts
during that time. Since its establishment, the bank has been highly focused on
innovative approaches and customer satisfaction. The bank started its journey from
Employees Provident Fund Building, popularly known as Sanchayakosh Building at
Thamel, Kathmandu.
HBL has also been serving Nepali citizens living in the country and abroad through
remittance service. Presently, HBL is the biggest inward remittance handling bank in
Nepal. With its exclusive and proprietary online money transfer software –
HimalRemitTM, HBL is among the top remittance service providers in Nepal having
ties with financial institutions based in the Middle East, Gulf region, UK, Australia,
USA, Japan, Israel, South Korea, Malaysia, Singapore, Portugal, Spain and
Hongkong. With respect to the Merger and Acquisition Policy introduced by Nepal
Rastra Bank, Himalayan Bank Limited acquired Civil Bank Limited at 100:80.28
swap ratio (A shareholders holding 100 scrips of CBL will get 80.28 scrips of HBL)
and commenced the joint operation as “Himalayan Bank Limited” from February 24,
2023. Currently, the Banks has been happily serving its customers from total of 174
Branch Offices and 20 Extension Counters spread all over Nepal.
1. VISION
Leading Bank of the country
2. MISSION
Preferred Provider and Quality Financial Services
3. OBJECTIVES
To become the Bank of first choice is the main objective of the Bank .

1.1.2 BRIEF HISTORY OF BANKING SYSTEM IN NEPAL

Banking industry is one of the oldest service industry in Nepal involved in lending
and borrowing activities that has gone through various stages of evolution and

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development since the Vedic times (200 to 1400 B.C.). Towards the end of 8th
century, Gunkam Dev had borrowed money to rebuild the Kathmandu valley.
Similarly Introduction of the Nepal Sambat by Shankadhar, a sudra merchant of the
Kantipur in 880 A.D; after having paid the full outstanding debts in the country also
gives evidence of the debt service existing in Nepal from the ancient times. However
the history of modern and formalized banking practice started from the time of Rana
Prime Minister Ranoddip Singh (1877B.S.-1885 B.S.) who established the “Tejarath
Adda” To overcome the drawback of the ancient way of banking. However, the
Tejarath Adda did not accept deposits from the public due to which the financial
needs of common people were largely unfulfilled. Hence the need of the financial
institution performing the borrowing and lending facility was felt. Later on, in the
year 1937 (30th Kartik, 1994 B.S.), Nepal Bank Limited was established for the
purpose of commencing a financial institution that can fulfill the void of banking
institution in Nepal. With this Nepal the modern banking era started in Nepal. Nepal
Bank Ltd. limited came into being in 1937 A.D as the first commercial bank in Nepal
under the Nepal Bank Act 1936 A.D replacing the older system of banking with the
motive to develop the trade and industry in the country. Having a primary objective to
create an institution for issuing currency and ending the dual currency system
prevailing at that time Nepal Rastra Bank (NRB) was established in 1956 (14th
Baisakh 2013) under the Nepal Rastra Bank Act 1955. It is the Central Bank of Nepal
responsible for formulating monetary policy and the regulation of the banking
industry of Nepal.
However, as the Central Bank, Nepal Rastra Bank had its own limitations and as a
commercial Bank, it was logical for Nepal Bank Ltd. to go to unprofitable sectors. So
to catch up with these problems, the government established Rastriya Banijya Bank in
2022 B.S (1965 A.D), under Banijya Bank Act 1965 A.D. as a fully state owned
commercial Bank. The establishment of Industrial Development Bank (converted into
Nepal Industrial Development Corporation 1959A.D.) in 1957, Agriculture
Development Bank in 1968 were the other major developments in the history of
Nepalese banking industry. Only after 1984, Private Banks were allowed to operate
with a license. With the introduction of this licensing policy a number of joint venture
commercial banks came into existence. The first of those kinds are Nepal Arab Bank
Ltd., Nepal Indosuez Bank Ltd. and Nepal Grind lays Bank Ltd. With the aim to
provide quality banking service, enhance the efficiency and healthy competition,

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foreign investment and new technology in banking was introduced. NABIL is the first
foreign bank to be established in 2041 B. S. in Nepal. Initially, 50% of shares were
owned by United Arab Emirates Bank, 20% by the financial institutions and
remaining 30% shares are owned by the general public.
Then, Nepal Indosuez Bank Limited was established as a second foreign bank in 2042
B. S. In this bank, 50% share is held by Banque Indosuez, France, 15% share by
Rastriya Banijya Bank, 15% by Rastriya Beema Sansthan and 20% by the general
public. It was established with the authorized capital of Rs.120 million, issued of
Rs.60 million and paid-up capital of Rs.30 [Link] bank i.e., Nepal Grindlays
Bank (now Standard Chartered Bank) was established as the third foreign bank in
2043 B. S. In this bank also 50% share is held by ANZ Bank of Australia, 35% is held
by Nepal Bank Limited and remaining 15% share held by the general public.
There are 32 commercial banks, over 75 Development Banks and several fiancé
companies, micro-finance institutions as well as Cooperatives performing limited
banking activities. The banking institutions in Nepal offer modern facilities and some
of the international banks have tie-up with some of the commercial banks and other
financial institutions of Nepal. International banks can also open their branches in
Nepal under the commitment made by Nepal in the World Trade Organization
(WTO) to cater to the needs of foreign travelers. The banks in Nepal offer money
exchange value of almost all foreign currencies as well as profitable credit card
facilities for foreign travelers.

1.1.3 Nature of the organization

Since, the internship is completed in one of the commercial bank of Nepal; the
analysis is specifically focused on the "A” category depository institutions
(commercial bank). Commercial Banks in Nepal: Commercial Banks as already said
earlier re the "A" class depository institutions. Nepal Bank Limited was the First
commercial bank of Nepal which was established in 1937 A.D. According to NRB act
Commercial Banks are those depository financial institutions which possess the below
features:
 Have the minimum paid up capital of 8 billion.
 No limit on resource mobilization
 Can operate nationwide
 Can do all fund based as well as non-fund based activities.

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The main function of commercial bank can be summed up in one sentence: "The
Bank borrows to lend'" In-spite of these functions quoted by the American Institute of
Banking, the fundamental functions of any Commercial Banks all over the world are
the same which can be classified into miscellaneous functions as follows:
 Receiving and Handling Deposits:
Commercial banks receiving deposits from the public is the first main
function. For the benefits and convenience of the depositors,
commercial banks have opened different ANCs.
 Issuing Loan:
Bank issue loans to general public and to trading and industrial
organization against the securities of gold, silver, land, building, share
and debenture of company etc. as collaterals.
 Discounting of the Bills:
Commercial Banks discount the bills and promising notes of
businessman so as to facilitate them in their business.
 Remittances:
Money is remitted from one place to another and even from one
country to another by means of drafts, telegraphic/telex transfer, mail
transfer etc.
 Miscellaneous Function:
Opening of LC, dealing in foreign exchange, insurance of traveler's
check, underwriting of capital issues, safe custody of valuables,
furnishing of guarantee on behalf of customer etc.

1.1.4 Financial Statement of HBL

Financial Information of commercial Banks is reported in two basic documents. The
report of condition (or Balance sheet) presents financial information on a Bank’s
assets, liabilities and equity capital. The balance sheet reports a Bank’s condition at a
single point of time. The report of Income (or the Income statement) presents the
major categories of revenues and expenses (or cost) and the net profit or loss for a
Bank over a period of time. Financial statements of commercial banks must be
submitted to regulators and stockholders. Financial institutions are also engaging in an
increase level of off-balance sheet (OBS) activities. These activities produce income
(and sometimes losses) for the FIs that are reported on the income statement. Retail

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banks focus on individual consumer banking relationship, such as residential
mortgages and consumer loans on the asset side of the portfolio, and individual
demand, savings and time deposits on banking relationship, such as residential
mortgages and consumer loans on the liability side. In contrast, wholesale banks focus
their business activities in business banking relationship, they hold more business
loans and fewer mortgages and consumer loans and use fewer consumer deposits and
more purchased funds than retail banks do.
Financial statements report both on the firm’s financial position at a point in time and
on its operations over some past couples of years regarding what they have performed
financially, this is reporting about what the company has done in terms of assets,
liabilities, income and expense. Alternatively, they highlight in important financial
aspects such as liquidity, profitability, activity capital structure and market
capitalization value. Annual report made available to the shareholders in annual
general meeting is the basic raw material of financial analysis, comments and
interpretation. Shareholders raise various issues regarding irregularities, operational
inefficiencies and internal management deficiencies causing poor performance of a
company. Financial Statements collected, consolidated and analyzed by Nepal Stock
Exchange Limited Provide better insights about the company’s performance. In other
words, financial statements comprise.

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1.1.5 Nature and Number of Employees
The nature and behavior of employees at HBL of Birgunj Branch is too good. They
are curious enough to handle the task assigned to them. They are always ready to
teach all the things they know according to their department. Currently, the total
number of employees working for 20 with 4 security guard and 2 informational staffs.
All the employees are polite and are ready to serve the best service to the customers.
They are completely dedicated towards their work.

1.1.6 Product and Services Provided by HBL

Basically, services refer to the intangible facilities provided by the bank which are
consumed by the customers. HBL being a service oriented organization has been
providing various types of services to its customer. In some context it has also been
providing the tangible products to its customers. The products and services offered by
HBL can be summarized below:
Deposit
Deposit refers to the money kept by the customers of the bank into their particular
account with the aim of earning a certain percentage of interest in near future. The
deposit also plays a role of guard by safeguarding the customers’ money and
providing them in time of money as per the rules and regulations of the bank. The
types of deposit account can be explained as below.
1. Current Deposit
Current deposit account fulfills the banking needs of the business organization. A
networked branch of Himalayan Bank gives the power to transfer funds in and across
cities (where Himalayan Bank has its offices/branches) in a flash. However these
types of account operated for daily business transaction does not provide any interest
on the balance of the account. It only ensures safe cash operation of the organization.
Basic features held by Current Account
 Standing Instruction
 Withdrawal below Minimum Balance
 Extended Banking Hours
 Proper Cash Management
 Free Cheque book.

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Documents required for opening a Current Account in HBL
The documents required for the limited liability or school organizations are given
below:
 Completed Account Opening Form
 Board Resolution to Open and Operate the Account
 Certificate of Registration/Incorporation
 Articles of Association
 Memorandum of Association
 Evidence of Identification of Account Operator (Citizenship/Passport/Driving
License/Voter's ID)
 Two Recent Passport Size Photographs of Account Operator(s)
The documents required for the proprietorship/partnership firm are as follows:
 Completed Account Opening Form
 Certificate of Registration/Incorporation
 Income Tax Certificate (PAN Card)
 Partnership Deed (in case of partnership firm)
 Evidence of Identification of Account Operator (Citizenship/Passport/Driving
License/Voter's ID)

2. Saving Deposit
The account designed with a list of features and ensuring an attractive rate of interest
is known as saving account. Such types of account are designed to encourage the
small saving of the people and attract the attention of the people.
Basic features held by Saving Account
 Limited withdraw/ deposited
 Withdrawal Below Minimum Balance
 Extended Banking Hours in Kathmandu Valley Branches
 Attractive interest rate
 Affordable Balance
 Free cheques book
Documents required for opening Saving Account in HBL
 Completed account opening form
 Evidence of identification of account operator (citizenship/passport/Driving
license/Voter’ ID)

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  Power of attorney (if the account operator is other than the
accountholder /applicant)
 Three recent passport size photograph of applicant/ Account operator

3. Fixed Deposit
Fixed deposits are the accounts that have the tenure ranging from seven days
over two years. Fixed or call deposit at HBL allows to diversify customers
portfolio to best suit their investment plans.
Features held by fixed Deposit Account
 Attractive Interest rate
 Convenient Account Opening
 Auto Renewal Possible
 Loan Facility up to 90% of Deposit Amount
Documents required for opening Fixed Deposit Account
 Completed Account Opening Form
 Evidence of Identification of Account Operator (Citizenship/Passport/Driving
License/Voter's ID)
 Power of Attorney (If the account operator is other than the
accountholder/applicant)
 Two Recent Passport Size Photographs of Applicant/Account Operator
Remittance
Remitters from any part of the world can send money from any bank to an account at
HBL. The originating bank will send the money through one of HBL's correspondent
banks. HBL both Inward and Outward remittance.
The remitter must provide the following to the sending bank:
 Beneficiary's name
 Beneficiary's bank account number
 Beneficiary’s branch name or address, and
 Beneficiary's Bank :(i.e. Nepal HBLBank-SWIFT Code: ******)

Nepal HBL Bank Loans

Loans are one of the most important factors for generating revenue. Spread, which
refers to the difference between the rate of interest which the bank collects on loan

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and the rate of interest which the bank provides on the customer’s deposit, is the
major source of income to the bank. Bank also provides various STL and LTL to
various customers to help them finance their short term, medium term as well as long
term financial needs.
 Home Loan
 Education Loan
 Apartment Loan
 Car Loan
 Auto Loan
 Loan Against Retail Banking

Others services provided by HBL

HBL Remit Online
HBL has started online web based remittance system, where by Nepali citizens
working at Qatar, Dubai and UAE can send money to Nepal instantly. Payments can
be collected from more than sixty branch offices of the Bank. NSBL has made
association with the foreign agencies for direct Remittance through HBL Remit.
SMS/Mobile Banking
SMS/Mobile banking is the service provided by HBL to the customers for the purpose
of staying connected to the activities regarding their account. SMS banking has a
charge of Rs.200 and provides the customers of every transaction alerts regarding
their account. The system can now be operated in dual channel SMS and Internet. It
can be operated with customer of both, Nepal Telecom as well Ncell
telecommunication subscribers. The mobile banking customer can keep an eye on
their financial transactions as well as carry out secure financial transaction from
anywhere, anytime. The main features of the Mobile Banking services are Balance
Enquiries, Last Transactions details, Transactions alerts, e-recharges/bill
payments/top up to utilities like NTC prepaid/postpaid/landline/ADSL, NCELL
prepaid/postpaid, inter branch funds transfer, etc.

HBL ATM/Debit Card Services

HBL is a visa associate member bank. Bank has launched Debit card services for all
the branches with in Kathmandu valley and the services has been extended to the

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other branches out of Kathmandu valley. The charge for the ATM service is minimum
Rs 1000 while the card is valid for 5 years. The renewal charge of ATM is Rs.1000
and the renewed ATM is valid for 5 years of time. Basically the following three
categories of ATM are issued for its customers.
 Visa Domestic
Valid in Nepal and India
 Visa International
Valid Worldwide
 Visa Travel Quota
Valid worldwide issued against Travellers Cheque
Functions offered at our ATMs
 Fast Cash
 Cash Withdrawal
 Enquiry ( Balance Enquiry & Statement Enquiry)
 PIN Change
Any Branch Banking Services (ABBS)
Any Branch Banking System(ABBS) is a facility for our customers to operate their
account from any of our networked branches. SBI Bank provides its Customer to
withdraw, deposit, & receive information of their account from any of its branches.
The ABBS is made available for easy, flexible, & promote service to the customer.
Branchless Banking
Branchless Banking (BLB) represents a significantly cheaper alternative to
conventional branch-based banking that allows financial institutions and other
commercial actors to offer financial services outside traditional bank premises by
using delivery channels like retail agents, mobile phone etc. BLB can be used to
increase the access of financial services to the un-banked communities.

1.1.7 Organizational Structure of HBL

An organizational structure is a system that outlines how certain activities are directed
in order to achieve the goals of an organization. These activities can include rules ,
roles, and responsibilities. The organizational structure also determines how
information flows between levels within the company . For example, in a centralized
structure, decisions flow from the top down, while in a decentralization structure,
decision-making power is distributed among various levels of the organization.

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The organization structure of HBL is designed to enable the organization to run
smoothly as well as to ensure transparency and integrity in communication and to
make available full, accurate and clear information flow to all concerned.

1.1.8 Overall and concerned department

The departments that are operating in HBL, birgunj branch are listed below.
 Credit department - The department in charge of administering the complete
credit process inside a bank or lending organization is known as credit

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 administration Credit administrators bear the responsibility of performing
background checks on prospective clients to ascertain their capacity to repay
principal and interest.
 Teller department - A bank teller assists clients with standard banking
operations. Their regular responsibilities include depositing money, managing
withdrawals, and providing cashier's checks or money orders to bank clients.
 Electronic cheque clearing
Electronic cheque clearing is the process of converting an original paper
cheque into an image for electronic processing of the financial transactions
between banks.
 Customer service department - The front desk of any organization where
customer initially interact in order to receive the mentioned service from the
bank is known as customer service department of the bank. In other words, it
can be defined as the method by which a business provide its customer with
the products and services is known as customer service.
The concerned department where I performed my activities was Customer
Service department. The reputation and image of the bank depend heavily on
how well this department runs. To be able to answer any questions from
clients. CSD staff should have a basic understanding of banking. The
objectives of CSD are to bring in new customers and hold onto their current
ones

1.2 Objective of the internship report

The general objective of an internship program in BBA is primarily designed
to enable the students to support them as grounded career persons who know
the real-life working situations and had already felt the pressure of the job
place environment . It is also a platform to show the ability to mold the
theoretical knowledge learned throughout the BBA program as per the
requirement of the job placement . The main goal is to highlight the activities
carried out in Customer Service Department of HBL. It help the students to be
prepared for the future through the little knowledge gained from the two
months of the job like experience.
Some important objectives are as follow:

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 To know and observe about the real task performance in the CSD department.
 To gain the practical working experience
 To fulfill the partial requirement of B.B.A.
 To develop and enhance managerial and communication skills to tackle the real
life situations.
 To gather the knowledge on the various activities performed in various
department of the bank and be aware of product and services.
 To learn about the ability to handle the customers.
 To handle future challenges of business
 To develop leadership skills, creativity, etc
 To know about the clearing policy and procedure of HBL.
 To know the position of deposit and loan provide by HBL.
 To gather the knowledge on the various activities

CHAPTER 2
OBSERVATIONS AND ANALYSIS REVIEW

2.1 Function of the concerned department

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Customer Service is the front desk of any organization. It provides all necessary
information to the customers For any organization, it is the main and most important
department which needs to deal with customer more than any department in the bank
It is one of the busiest departments in the banks and it is the very place which makes
an early impression to the clients. The image and reputation of the bank depends upon
effective functioning of this department It is the first place where the customers first
get the service. As different activities such as opening new accounts of customers,
closing existing account, issuing cheque books, balance inquiry and providing
statements, issuing debit cards, etc are performed It is very important to know that the
highly satisfied customer becomes loyal and buys the organization's new products,
pays less attention to competing branch and is less effective to price. Having a
significant number of this kind of customers is only possible through the efficient
functioning of Customer Service department of any organization It would then not be
in appropriable to say that this department is the key to success of any organization.
Customer service is a very important aspect in a business because it focuses more on
the ideas of customer feedback and outputs as they are exposed with customer product
or services. Customer service is an essential part of the business team and in fact,
some business do have their own customer service department which aims to aid
customers on their concerns, queries, suggestions and complaints. Customers are the
center of the business that is why one department should be established so to enable to
hear their voice and improve the sales, quality of service and delivery of efficient
customer service whether customer are selling a product or a service. Customer
service can be maximize by using Convenient Days and Hours of Operation, using
new technology, excellent online service, customer service training and by using other
techniques and equipment Excellent customer service can improve the bank's ability
to lure affluent prospects, elevate the bank's profitability, lower bank operation costs,
and create greater customer loyalty When a bank invests in training its customer
service staff, impressive results may follow The point detailed here is mainly
associated with the customer's personal account. This is because they treat business
account information with great cares, so they respect the privacy off all their
customers. They are:
 Listen to customers' concerns, issues and questions.
 Resolve customers' concerns and answer customers' questions to customer
best ability.

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  Maintain a positive attitude and calmly respond to customers' complaints .
 Open new customer accounts .
 Protect customer information .
 Attract customers by promoting the product and company positively,
answering questions and addressing concerns as they arise
 Recommend possible products to meet the customers' needs.
 Refer issues and questions to managers if necessary.
 Prepare product and customer reports by gathering data collected during
customer interactions .

The following work flow chart can explain the function of CSD in brief manner.

Fg: Function of CSD

2.2 Details of Assigned Work Responsibility

Customer service department is concerned with counseling the new as well as the
existing clients regarding the products and the services provided in this branch. The
way of dealing and counseling the customers by the staffs builds the image of the
bank. Ultimate goal of the organization can be achieved through efficient functioning
in customer service department. Some of the functions of this department are
providing necessary information, clarifying any queries of the potential account
holder before opening their accounts. The department is also responsible for printing
out bank statements and making cheque. Therefore the intern are highly involved in
customer counseling, as it seems to be the core part of the organizational success. The
details of work assigned to the intern or the works that the intern learns at Himalayan
Bank Limited are explained below.

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A. Account Opening
Account opening is the frequent activity done in the CSD. Most of the customers visit
banks for opening an account. They open account for depositing money for their
safety by taking some percent as interest rate. While opening account staff involved in
customer service desk should be extremely careful to avoid opening of any fraudulent
account. The basic requirements for the opening of account photos of the prospective
account holder, Citizenship of the prospective accountholder and the official
documents as the type of account preferred. The procedure of opening the bank
account in HBL is pointed below:
 Collecting the dully filled up the accounting opening form, KYC form and the
signature card from the customer that he has collected from the CSD and has filled
up. The signature on the card should be kept by the customer in the front of the
bank official.
 The copy of legal documents which is given by the customers should be verified
and matched with the original document.
 The senior officer should put the signature on those forms after the verification
has been completed
 Then these forms are given to the staff at the CSD to open the new account.
 After the opening the new account with the use of computer software, the account
number is written on the presented filled up account form and the customer is sent
to deposit the required minimum balance in their newly opened account by giving
them the account number.
 The staff then put his own signature and the required stamp and scans the
document through the scanner so that the signature card can be updated in the
software which can be used by the officials of other departments.
 The customer’s copy of the deposit slip is presented in the CSD by the customer
for the issue of cheque book of the new account.

B. Account Closing
Customers also close their accounts because of different reasons. While closing an
account, holder should be present. The account holder needs to fill up the account
closing application. After filling up the application, it should be approved by higher
level staffs. After that, an account should be closed and refund the remaining balance

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to the holder. The cheque book and ATM card must be returned back to the Bank. The
procedure of account closing in HBL is pointed below:
 Account closure application should be filled up by the account holder.
 Signature of the account holder should be verified.
 The staff should inform the supervisor or higher levels staffs about the closing of
an account
 For the closure of accounts all the unused cheque and ATM card should be
returned back to the bank.
 Close the account in the banking system.
 The returned ATM and cheques card should be destroyed and blocked.

C. Distribution Activities
The intern working at the CSD should also perform some of the distribution
activities like,
 Cheque book issue
 ATM card
 Bank Statement

 Cheque book issue

Cheque book is defined as an instrument that is issued by the bank to the
accountholder. It is a document that orders a bank to pay a specific amount of
money from a person’s account in whose name the cheques has been issued.
Each cheques leaf contains the account number and the name of the account
holder along with the cheques number pre-printed on it. The person who draws
the cheques are called drawer, the bank on which the cheques are drawn in
called drawee and the person to whom payment is to be made is called the
payee. A sequence off steps is followed while issuing the cheques book to the
customer:
 The customer’s copy of the deposit voucher is taken from the customer in case of
the new account or the cheque request slip from the old cheque book duly filled
up is taken from the customer. The signature on the request form is matched with
that in the computer record. If the tie occurs then the following tasks are
proceeded

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 Then the cheques are printed, binded and all the details are maintained on the new
cheque book including name of the accountholder, account number, issue date,
starting cheque number and ending cheque number of the particular cheque book.
 Then the entry is made in the cheques issue register and the signature of the
account holder or the authorized agent of the account holder who brought the
cheques request slip is taken in the register.
 Then the cheque book is approved by the senior officer and handed to the account
holder or his/her agent.
In case of lost request slip or voucher, a charge of Rs.100 is levied.

 ATM card
Automated Teller Machine is a computerized telecommunications device that
provides customers a method of financial transactions in a public space without the
need of a human clerk or bank teller. ATMs are providing a wider range of services to
a wider range of users. It enables card holders to withdraw cash, check balance, etc.
from any other banks. The procedure for Issuance of ATM Card is:
 The ATM request form should be filled by the customer who includes their name,
account number and a passport size photo.
 Those collected forms are sent to the head office for making the card.
 Cards and pin code are sent separately to branch office after some days from head
office.
 After receiving the cards it should be recorded in ATM register book.
 At the time of issuing the card, the account holder should be present in the bank
for signature verification.
 Only when the signature is verified it is provided to the customer.
 Then the customer is informed that they are required to change their pin code
provided by the bank.

 Bank Statement
Bank statement contains the financial transaction of the customer’s account. All
the debit and credit balances, tax charges, interest are shown in the Bank
statement. On the demand of the customers, the bank statement for required period

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 of time is provided. It is provided to the account holder or the agent. The
procedure for Issuing Bank Statement is:
 The customer can get the Bank statement whenever they want during the Bank
hour i.e. from 10 am to 4pm only.
 In case the account holder is not present the holder’s agent need to bring
application letter signed by the authorized person.
 After receiving the letter the bank statement is provided to the agent. In case of the
demand of the statement that has already been taken by the customer, a charge of
Rs.250 is taken per statement per account.
D. Record Keeping
Proper record keeping of different documents is extremely important in the Banks.
They are the key to success of the operation. All the documents should be properly
recorded. It is the day to day function of the CSD. The entire documents are filed and
they are kept in the racks and drawers for future use. Documents may be:
- Account opening forms
- Account closing forms
- Cheque slips
- ATM request Document
- Statement Request document
- Other document relating to the account.
E. Handling Customer
CSD is the bank’s front desk and it is one of the most essential sections in establishing
a friendly relationship with the customers. This is the place where the customers take
and analyses the first impression of the bank. A smiling face with a ‘How May I Help
You’ attitude is always very important to show the overall impression of the bank.
Therefore, it is very important to show a positive attitude and be very cooperative to
the entire customer so as to make them comfortable. Customers come to bank with
different problems or queries. Some may ask for the locations of other departments or
Manager’s office, for opening account, depositing or withdrawing money or for
acquiring information about bank. All customers with these problems are handled by
the CSD properly. The CSD staff should be capable enough to deal with any type of
customer and try to satisfy them by solving their different problems in the best
possible way. The rude behavior with the customer will hamper the future business of

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the bank and make the customer feel uncomfortable in making any transaction with
the bank.
F. Stop payment of cheque
Sometimes the customer may misplace the cheque which should be immediately
stopped. The account holder who wants to stop the cheque should provide the
application letter along with their identity card to the bank. The bank should
immediately stop the cheque before any misuse occurs.
G. Update Address and other details
Some customers need to update their address, phone number, e-mail address and other
information. For this they need to fill the KYC form along with signature card and
should submit it to the bank for updating their information. It should be filled up by
the customer himself to get the accurate information of their account.
H. Change in Signature
Signature is a proof of identity and intent any person. It is one of the very powerful
mechanisms for withdrawal of money through cheque in the bank. Even a small error
in signature create problem while withdrawal of money. So customer should be very
careful while doing a signature. In case the customer forget or want to change their
signature then they can fill the new specimen signature card with KYC form and
submit it to the bank .This card is to be signed by the authorized person. The customer
must bring their copy citizenship or license along with them.
I. M-Banking
M-Banking refers to Mobile Banking. Consumers can use this facility for enquiring
their account details, recharging their mobile by debiting their account etc. Bank also
provides information to the customer through SMS whenever their account gets
debited or credited. Customers willing to get this facility provided by the bank should
submit the application form of mobile banking in which they include their name and
address, account number, their mobile number along with their signature. After few
days of submitting the form, this service will be activated.

2.3 Problems encountered during fulfilling work responsibility

 Customers with different nature are sometimes difficult to handle due to
communication problem.
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 Sometimes customers do not understand the policies due to lack of education in
them and it is difficult to deal with them.
 Sometimes customers come with the query of ATM lost or cheques lost and it is
difficult to handle them.
 Some customers are not capable of filling the forms and they need suggestion for
it which should be handled.
 It is difficult to handle the customers who insist on unnecessary matters.

2.4 ANALYSIS AND REVIEW

2.4.1 Critical analysis of the theoretical concepts relating to practical experiences
in the CSD
A number of important theoretical ideas serve as guidelines for the work that the
Customer Service Department (CSD) does in banks. The focus is on using Customer
Relationship Management (CRM) to effectively connect with customers in order to
develop long-lasting client relationships. Strict Know Your Customer (KYC)
procedures are essential for preventing fraud and adhering to regulations while
opening and canceling accounts. Operating integrity is maintained by meticulous
account management. Maintaining accurate records promotes accountability and
openness. Positive front desk operations at the CSD set the standard for client
interactions. It is essential to overall security and preventing fraud. Service
diversification meets the needs of a wide range of customers, while technology
integration improves productivity. Change management ideas are in line with
adaptability to evolving customer details and technological advancements. Adherence
to regulatory compliance and efficient communication are essential components of a
customer-centric approach.

2.4.2 Knowledge gained from the work assigned

I gained lots of knowledge regarding professional environment and also got
opportunity to match theoretical knowledge with practical experiences. It was really
fruitful learning as an intern in the HBL. I also learnt different aspects of banking
environment in the Nepalese context. Overall, the internship program helps to develop
the interpersonal, managerial, and entrepreneurial skills that are essential in every
professionals and employee career development. The internship was an excellent

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opportunity to expand the knowledge horizon. The following are the major lessons
learnt during the internship period:
 Working in the bank has helped to develop a learning habit to a great extent.
 Improved communication skills which helped to communicate effectively.
 Developed inter-personal skill which will enhance interaction ability.
 Dealing with various types of customers has improved mass facing ability .
 Gaining of the practical experience to handle the work in the bank.
 Having taken the responsibility has helped and given the time has increased the
time management ability.
 Handling the work pressure was one of the important attitudes developed while
working in the bank.
 Being a partial employee, punctuality was one of the attitudes developed while
working in the bank.
 During the work period of two months in the bank, it has helped to work in team
work and coordinate with other employees.
 Became more socialize while dealing and interacting with many people.
 Boosted confidence level to communicate and co-ordinate with strangers which
was lacking before working in this organization.

CHAPTER -3
CONCLUSION AND RECOMMENDATION

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3.1 CONCLUSION
During whole period of internship, intern learnt a lot about the banking operation of
HBL Bank Limited in particular In review of this internship at HBL Bank, Birgunj
Branch has been excellent and rewarding experience. Intern has been able to meet and
build network with so many people that may help intern to get opportunities in future.
Intern got the opportunities to know about function and activities performed in
different department Intern got insight into professional practice. The internship at
HBL. helped me to gain in depth knowledge about the real working environment,
interpersonal and communication skills, organizational culture and behavior,
professional qualities and building spirit as well as working samples of commercial
banks. During internship, I had learnt many aspects other than the banking as to
socialize make the working environment friendlier. I also learnt the importance of
behavioral issues. The customers are to be treated properly and friendly way for their
full satisfaction. This will help the bank to achieve success by creating loyal
customers and retaining them In conclusion, it can be conveyed that CSD is the most
sensitive department. It is very much clear that the bank realizes the huge part of
income through customer satisfaction. Although, other departments also play sensitive
role for the success of bank, huge credit goes to customer service department as it
gives the first impression to the customers. Hence, the bank must analyze such factors
to gain success in the future period through fulfilling customer's needs and demands.
And finally, I knew about various activities of CSD The meaning of professionalism
was only understood through it.
All the lessons learnt can't be express in the language form because much knowledge
is related to the realization rather than the new knowledge. Knowledge of both
theoretical and practical aspects and exposure in the practical field is must to be
competitive in this world. Real work setting is a diverse situation than the classroom
leaning scenario, as we enter into real work setting there arise novel problem,
difficulties and challenges which make the person more dynamic and enthusiastic.
While dealing with the 29 complexities we develop the interpersonal and
communication skills which further shape our personality. Theoretical knowledge is
not enough to know anything in a complete sense. For this practical exposure is quite
essential and program like internship grants such opportunity During the internship

25
period, one gets acquainted with various lessons and practical knowledge which could
be basic for one's career development. In the due period 1 got familiar with general
banking activities, banking transactions clerical works and operations of office
equipment, customers handling techniques, various problems that may arise in bank,
the importance of motivating factor, office layout, maintaining relations with staffs
etc. Internship for 8 weeks really taught us many things which have been listed below:
 Learned to tackle the various of the customer.
 Intern learned to maintain interpersonal relationship and public relation.
 Intern experienced that the real working environment and managerial practices
are different from theories learned.
 Intern learned the general banking transaction procedure of Customer Service
Department
 Learned account opening procedure, statement printing, account closing,
cheque issuing, ATM Card and ATM Pin issuing procedures.
 Learned to be calm under the adverse conditions and tactfully handle the
complexities and to handle the grievances.
 Learned that the customers are the main drivers of any financial institutions,
they should be pleased by offering the quality services which basically
depends on the quick service and pleasing personality of the staffs.

Lastly, the intern learnt an idea and insight knowledge of work environment and
organization culture. The intern learnt how theories and concepts are applied in
practice in the day-to-day business operation and tackle problems and handle
objection in work place. The intern learnt to develop an appropriate managerial skills
and attitude to tackle real life problems arising in the organization. The intern
acquired the knowledge about the activities performed in different departments. The
internship programme was very helpful to boost up the confidence level of the intern.

3.2 RECOMMENDATION
Working in Himalayan Bank Limited was a great experience for me to increase the
horizon of my knowledge and boost the internee knowledge. It was right place where
the theories studied in college were really implemented in practical ground. However,
the intern observed some drawbacks while working in the organization. Following
points are recommended as a feedback to make this experience even better one:

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 Re-structure and re-organize the job and responsibilities so that there is
efficiency in job completion.
 Proper maintenance of computers and other devices should be ensured timely
in regular basis.
 Increase the staffs because daily transaction is increasing continuously.
 There was not enough space available to store the files, the files may get
misplaced and the required file may not be available in the required time. The
organization should improve its departmental overload which is now for few
staff only.

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