AN INTERNSHIP REPORT

ON
CUSTOMER SERVICE DEPARTMENT
OF
NEPAL BANK LIMITED
ADARSH NAGAR BRANCH

Submitted by:
SOFI MANDAL
Exam Symbol: 271105
REGISTRATION NO: 052-2-2-04377-2020
BIRGUNJ PUBLIC COLLEGE

Submitted to:
Office of the Dean
Faculty of Management
Purbanchal University

In partial fulfillment for the Degree of Bachelor in Business

Administration (BBA)

Birgunj, Parsa, Nepal

December, 2024
 RECOMMENDATION
This is to certify that the Internship Report

Submitted by

SOFI MANDAL
P.U. Regd. No: - 052-2-2-04377-2020

Entitled: -
An INTERNSHIP REPORT ON CUSTOMER SERVICE
DEPARTMENT OF
NEPAL BANK LIMITED

Has been prepared independently under the guidance of Mr. Arbind Shrestha and approved by the
department. This report is forwarded for evaluation.

…………………………………….. …………………………………….
Dr. Binay Shrestha Dr. Binay Shrestha
Head of Research Department Internship Supervisor

…………………..

Asst. Campus Chief.

Mr. Arbind Shrestha
 APPROVAL SHEET

This is to certify that this report prepared by SOFI MANDAL entitled “Customer Service
Department of Rastriya Banijya Bank Ltd.” has been prepared as part of the student’s research
and observation during his period of internship in the NBL Bank. The report has been approved
by the concerned department of this institution.

Internship Supervisor Mr. Binay Shrestha Signature ……………………

Head of R.C. Dr. Binay Shrestha Signature …………………

Asst. Campus Chief Mr. Arbimd Shrestha Signature ………………

VIVA-VOCE SHEET
We have conducted the viva-voce examination of the report presented
 By
Sofi mandal
Entitled
“Customer Service Department of NEPAL BANK Ltd.”
And found the reports to be the original work of the student and written according to the
prescribed format. We recommended the internship to be accepted as partial fulfillment
of the requirement
For
Bachelor of Business Administration (B.B.A.)

VIVA-VOCE COMMITTEE

Head, Research Department Dr. Binay Shrestha ….…………………...

Internship Supervisor Mr. Binay Shrestha …….………………...

Campus Chief Dr. Binay Shrestha …….………………...

Assistant Campus Chief Mr. Arbind Shrestha …….………………...

External Expert ………………….……

CERTIFICATE

This is to certify that Miss. Sofi Mandal a student of Bachelor of Business Administration
(B.B.A), affiliated to Purbanchal University, has submitted his internship report entitled “An
Internship report on Customer Service Department of NEPAL Bank Ltd." which
is purely on original and complete personal research endeavored under my supervision. I
carefully have read this document, and, in my opinion, it is satisfactory in scope and quality
as an internship report for the partial fulfillment of B.B.A. program held at Birgunj Public
College.

……………………………..

Dr. Binay Shrestha

Report supervisor
Birgunj Public College
 DECLARATION

I hereby declare that this submission is my own work and that, to the best of my
knowledge and belief, it contains no material previously published or written by another
person nor material which to a substantial extent has been accepted for the award of any
other degree of a university or other institution of higher learning, expect where due
acknowledgements.

Further I would like to declare that the report prepared by me is only for the academic
purpose. The contents included by me are taken from the observations, secondary data,
and internet sources.

Thank you

…………………..

Sofi Mandal
 ACKNOWLEDGEMENT

It had been a great experience working in Nepal Bank Limited (NBL), Branch
Adarshanagar and making a project under the heading of CSD of NBL. This project is
dedicated to all the people who have helped directly or indirectly to complete this project.

Firstly I would like to thank Birgunj Public College for providing me an opportunity to
use the theoretical knowledge in the practical field in course of my internship program
under Purbanchal University.

I am heartily thankful to Manager for providing me the opportunity to be an internee in

NBL and gain the practical knowledge of the banking area.

Also, I am equally grateful to all of the Nepal Bank Limited who provided the valuable
information during my internship period.

Sofi Mandal

BBA 7th

Birgunj Public College

 EXECUTIVE SUMMARY
This report discusses about the Customer Service Department of Nepal Bank Ltd.
based on the service quality provided by the Bank. As per the curriculum of
Purbanchal University (P.U), I thought it was appropriate to do internship in a bank
and my choice was NBL.
They mobilize savings and make available funds for investment in trade, agriculture,
industry and so on. Different department in any bank plays great role in creating
healthy position. The core function of any bank is satisfaction of customers towards
services provided by the Bank by analyzing overall behavior of employees towards
customer, attention given by the Bank on different areas regarding sincere interest in
solving the problem; inform the service to the customers and doing supportive
actions.
This report is based on Customer Service Department of Nepal Bank Limited. This
report includes the data collected from various primary as well as secondary sources.
Nepal Bank Limited provides different types of services and products to people and
their customers. It helps the people to get closer with the Bank through effective
communication and relationship with customers.
After the analysis, we can say that the Customer Service Department of Nepal Bank
Limited had been able to maintain satisfactory level of customer service which helps
both bank and customers to maintain fair relationship. This bank is more efficient in
providing qualitative service. It means the bank is using the appropriate means for
establishing and maintaining relationship with customers.
 ABBREVIATIONS

BBA: Bachelor of Business Administration

NRB: Nepal Rastra Bank

ABBS: Any Branch Banking

Service CSD: Customer Service

Department NBL: Nepal Bank

Limited

IME: International Money

Exchange ATM: Automatic Teller

Machine KYC: Know Your

Customer

LC: Letter of Credit

SMS: Short Message Service

CEO: Chief Executive

Officer BOD: Board of

Director

PU: Purbanchal University

 TABLE OF CONTENT
Title page
Approval sheet
Viva-Voce Sheet
Declaration
Acknowledgements
Abbreviation
CHAPTER I.............................................................................................................1

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

1.1 Background of the Study...........................................................................1

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

1.3 Methodology..............................................................................................3

1.4 Sources of Data..........................................................................................3

1.5 Selection of the Organization....................................................................4

1.6 Duration.....................................................................................................4

1.7 Activities....................................................................................................5

1.8 Limitation..................................................................................................5

1.9 Introduction of Banking Industry..............................................................6

1.9.1 Meaning of Bank.....................................................................................6

1.9.2 Origin of Bank.........................................................................................7

1.9.3 Modern Banking......................................................................................7

1.9.4 Functions Offered by Bank......................................................................8

1.9.5 Role of Bank..........................................................................................10

1.9.6 Meaning of Commercial Bank...............................................................10

1.9.7 Functions of Commercial Bank.............................................................11

 1.9.8 History and Development of commercial banks in Nepal.....................12

1.10 Introduction of Nepal Bank Limited.......................................................13

1.10.1 History.................................................................................................13

1.10.2 Introduction..........................................................................................15
1.10.3 Shareholding Composition...................................................................16

1.10.4 NBL Network Overview......................................................................16

1.10.5 Objectives............................................................................................16

1.10.6 Vision...............................................................................................17

1.10.7 Mission.................................................................................................17

1.10.8 SWOT Analysis...................................................................................17

CHAPTER II..........................................................................................................19

REPORT ABOUT INTERNSHIP EXPERIENCE................................................19

2.1 Activities Performed in the Organization.....................................................19

2.1.1 Customer Service Department...............................................................19

2.2 Problem Faced During Internship...........................................................24

CHAPTER III........................................................................................................26

SUMMARY, CONCLUSION AND RECOMMENDATION..............................26

3.1 Summary......................................................................................................26

3.2 Conclusion....................................................................................................26

3.3 Recommendations........................................................................................27

BIBLIOGRAPHY..................................................................................................28
 CHAPTER I

INTRODUCTION

1.1 Backgroundof the Study

An internship is a study program for the students which are carried out in an organization to
meet the requirement of the study in colleges or universities. This report is submitted to
fulfill the requirements for the completion of the degree of “Bachelor of Business
Administration” under faculty of management,Purbanchal University. BBA is a four year
undergraduate program in which emphasizes on managerial skill required for the middle
level manager. Apart from management and its allied courses.

Interns are usually college or university students to gain various skills, knowledge and
learning experiences on different aspect of organization’s environment. Internship also helps
students to know how different activities in the organization are coordinated so that the
synergistic effects are achieved and how communication takes place in corporate world.
Students are involved as non-paid authentic employees receiving academic credits for work
experiences. This will support the students to acquire social, technical and communications
skills to work effectively in industry. Today, many organizations are cooperating with the
educational institutions to provide the internship service with the specific benefits to their
students.

An internship provides the student with a greater understanding of organization’s work

environment with educational qualifications. Hence in this frenetic financial environment, the
roles of commercial banks are unavoidable. The report focuses on over all banking activities
concerned with its major functioning departments of Nepal Bank Limited.

Through internship an individual can explore the working process of an organization being a
part of the actual working environment. Here every students receives practical knowledge
through observation and develops academic credit for the work experiences as well. An

1
internship will help the individual to expose to the interpersonal relationship, which is the
demand of every job, both with the boss, co-workers, supervisors and the other lower level
staff members who are the first basic things for a bank to obtain successful and contented
career. It assists the students to identify potentiality and area of interest. Internship is the
necessary medium for enabling employers to persist students to work in up to date
competitive business environment. Internship is seen as the major way to enhance and
support the internee’s banking careers well.

As we know that, an internship is the way of learning managerial activities by practically

doing it, therefore it provides an opportunity for learning as well as developing the
managerial skills. It gives a direction and provides ideologies for the practical problems.
Every single activity that takes places daily is simultaneously observed and analyzed. Any
usual problems and the underlying causes or drawbacks are closely monitored, understood
.The potential solutions can be determined that certainly enhances the effectiveness and the
strength, minimizes the weaknesses that helps to maximize the profit and the growth rate.

An internship acts as a medium that ables an individual’s to work in group, manage work
pressure and analyze the lessons learnt in class and on the field. It can be remarkable way of
determining if the industry and the banking career is best suited or not for him or her. It
makes an individual more concerned about the options and opportunities one can get both
physically and mentally. A successful internship student has developed characteristics,
which are the essentials of the Modern commercial world. This whole internship process
ables a student to experience and gives exposure to the working pressure that a internee is
likely to face in the future by making them familiar with the corporate cultures and also by
understanding the primitive knowledge of the business settings of the international
standards. It also helps to develop the professional working habits and creates a platform to
create differences in the work style. Thus, it makes the internee’s mind pre-prepared to
pursue the career in the banking field in the future.

Purbanchal University offers a course for the BBA faculty, which is the best way to learn and
gain the knowledge regarding the corporate environment and culture. This way any
individual can obtain the maximum knowledge from a business world. They have the right to

2
learn and make the things more transparent. This internship was carried on in the branch
office of the Nepal Bank Limited at Adarshanagar. The internship program was for twelve
weeks, which started from…….. and ended on…….. in which the internee was placed in
different departments like Remittance Department, Customer service department (CSD),
Bills Department, clearing.

1.2 Objectives

During the internship period, the main aim is to gain and explain about the knowledge
experienced during the banking operations through observation, interaction. Likewise, the
other specific objectives are as follows:

a) To have a work experience on the bank.

b) To be familiar with the principles, manuals, provision, guidelines, regulations of the
operational activities.
c) To perceive broader knowledge by involving own self in the situation and work
environment.
d) To observe the policies and the regulations in the financial sector.

1.3 Methodology
Methodology is the description of the procedure followed while collecting the necessary data
and information needed for research work and report preparation. Various data were
collected by observation, making inquiries with concerned staffs, quantitative data collected
from the past records. The following methodologies are used in this study.

1.4 Sources of Data

For the information of the various departments, personal interviews were taken and inquiries
were made. Information was collected by observation and formal group discussions with
every related member of the organization. Regular communication and consults were made

3
with the staffs and the costumers for the reliability of the data. The books, magazines,
newspapers, journals and the past records obtained all the formal and the quantitative data.
There were formal group discussions, observation, personal inquiries as the source of the
primary data, and for other secondary data past records were referred. Consulting with the
staff members and costumers were the other source of reliable information. Data was
collected by various means and mediums such as direct interviewing, enquiring with the
staffs. The previous bank records were referred for the relative data and information.

 Information were collection from the official website [Link]

 Different books of journals and magazines, newspapers, bank profiles, regular
manuals of the departments, annual reports were gathered for the preparation of the
report.
 Information gathered from the related staff members were thoroughly studied and
hence recorded for creating better understandings with the bank and the banking
transactions.

1.5 Selection of the Organization

I choose bank as organization for internship with regarding bank as one of the service
industry where I can gain various knowledge about general management concepts. With the
aim of implementing my knowledge that I gained in college by doing internship in the
organization that is related to management field, I chose NBL as organization for internship
program. Due to the support of my college I was able to join Nepal Bank Limited for
internship.

1.6 Duration

The duration of the prolonged internship was of 8 weeks, started from …. to the date……. In
the course of the internship period, the intern worked on the different departments, performed
activities. All the factors such as discipline, attendance, regularity, interest

4
towards the work, sincerity, behavior, and the efforts that she made to understand the
banking functions were closely monitored.

1.7Activities

During the entire internship period of eight weeks, the intern had a time to visit the four
different departments like Remittance, Customer Service Department, loan Department and
clearance. In the course of the internship, I spent equal number of days in every department.
The activities performed on these departments are as given below in table.

S. No. Department Activities performed

1 Customer service department Preparing balance certificate, opening and

closing accounts, cheque printing,
statement printing, handling telephones

2 Remittance Department Preparing IDT, IBT, cheque deposits, data

entry

3 Letter of credit Studied the different types of loans and

loan files of the customers.

1.8 Limitation

There are several limitations that hindered the proper analysis of this study. These are:

 Difficult in analyzing the information obtained from respondent due to the

qualitative nature of information.
 Another limitation to this study is the lack of statistical data. Report is mainly based

5
 on the secondary data.
 The experience obtained is limited.
 The deep comprehensive analysis and study couldn’t be done due to time constraints.
 Time limitation and busy schedule of the staffs also prevented internee from
learning time to time.

1.9 Introduction of Banking Industry

1.9.1 Meaning of Bank

A bank is a type of financial institutions that are established under a certain act to perform
monetary and credit transactions. The bank accepts the deposits in the form of capital and
collateral, formulates, and implements monetary and foreign exchange policy to maintain
price and balance payment stability for a sustainable development of the country. It provides
necessary liquidity for promoting the stability of the financial sectors. It raises funds by
collecting deposits from business and consumers through saving gio sits, time deposits.
Besides this, it gives facilities to business like giving loans to business, housing, saving
deposited money, buying and selling of bonds etc.

It also helps to develop a safe, sound, and efficient payment system. Bank helps in making
regulations, inspection, supervision, and maintaining the sound development of the banking
system.

According to the American Law bank has been defined as “Any Kind of institution offering
deposit subject to withdrawal on demand and making loans of a commercial or business
nature is a Bank"

The bank regulation of India defines it as a means of accepting for the purpose of leading or
investment of deposit of money from the public repayable on demand or otherwise able by
cheque, draft or otherwise.

6
1.9.2 Origin of Bank

Actually, the word “Bank” has been originated from the Latin word “bancus”; Italian word
“Banca” and a French word banque; which all refers to the Bench. Jews, the early bankers, in
Lombardy, used to transact their business at benches in the market place. In the history of
origin of banking in the world, “The Bank of Venice”, was the first, which was originated in
Venice of Italy in the year 1157 A.D. In addition, the first central bank which was established
in 1844 A.D. was “The Bank of England”.

Bank is a financial intermediary accepting deposits and granting loans and also offers the
variety of services like conversion foreign currency into domestic currency and vice versa,
lending money, saving deposits etc. Even if we look at the past, banking concept is found. In
the ancient period, this concept existed, when goldsmiths and the rich people used to give
money to the common people against the promise of safekeeping their valuable items on the
presentation of the receipt, the depositors would get back their gold and valuables of the
paying a small amount for safekeeping and saving.

1.9.3 Modern Banking

Merchants, Goldsmiths, moneylenders are known as the ancient bankers. Development of

modern banking in the 15th, 16th and 17th centuries gradually shifted the Centre of the world
commerce from the Mediterranean region towards Europe and the British isles, where
banking became a leading industry. During third initial phase of modern banking
development Industrial Revolution was developed, which demanded a well-developed
financial system. Modern banking was developed to provide new methods of making
payments and credit available, which were required as economy of various countries adopted
mass production.

At previous times, banks functions were limited. They only accepted deposits of money or
valuables for safekeeping and verifying coinage or exchanging one jurisdiction’s coins for
another’s. Various banks were developed as modern banks such as Medici Bank of Italy and
Hochstetler Bank in Germany.

Now bank has become a known place for every people and it also offers wide variety of

7
services than before.

1.9.4 Functions Offered by Bank

There are various functions provided by the bank. They are as follows:

Deposit function

Accepting deposits is the primary function of the bank. The most important fund of the banks
is deposits. Without deposits, it would be difficult for the bank to invest high return sectors.
The main objective of the bank is to collect deposits in as lowest cost of fund possible. If the
bank is able to collect deposits at the lowest cost it leads the bank to earn a huge amount of
fortune.

Providing loans

This is the other function of a bank. It provides loan to a customer, company or institution.
Bank is able to gain benefit by giving loans and charging them with some amount of interest
rate to a customer as per the law and banking policies, terms and conditions. It provides loans
by accepting the security of a debtor.

Credit function

Bank provides credit to the deficit customers such as hire purchase loan, real estate loan,
leasing of the fixed assets, working capital loan and other long term loans. The interest rate
charged to the loan amount and the interest provided to the depositor’s difference leads to the
profit of the bank.

Payment function

The bank provides various payment facilities to the costumers to make the economy efficient
and effective. If the payment facilities were not developed it would be difficult for the
costumers to transfer the money from one place to another. Some of the payment instrument
is as cheques, bank overdraft, online various banks also provide payments.

8
Trust function

The most important function of the modern bank is to maintain credibility towards the
depositors as well as towards investors. If the bank fails to maintain the credibility, it
becomes difficult for the bank to attract depositors as well as investors to purchase their
security.

Investment function

Bank uses the surplus amount of money at the profitable area where the return on
investments is high. Bank also invests a huge amount of money in government securities and
bonds, as it is a 0% risk free investment.

Cash management function

It is necessary for the bank to manage the cash collection and cash disbursement to retain its
position in the markets well as credibility. If the cash management leads to deficit rather than
surplus it would be difficult for the bank to manage its environment effectively.

Insurance function

Another important function the modern banks play is insurance function. Bank provides
loans and advances to various sectors as a result of the assets or the loan amount should be
insured and various collateral must also b taken under bank’ eye. In case of providing loans
to purchase a car, it is necessary that the vehicle is insured so that the risk of not recovering
the money is low.

Underwriting function

It is necessary for each bank to issue public shares in the marketplace. Banks has the right to
under right the various securities such as common stock, preferred stock, or debentures. It is
necessary that legal bank be listed in the stock market o that the interested investors can
invest a huge amount of money in the bank by purchasing various securities.

Brokerage function

A modern bank also plays an important role as a broker for the necessary clients. Banks earns

9
a non-operating income acting as a broker. as a broker banks helps the client to purchase and
sale various securities of the banks as well of different banks. Banks may charge some
percentage of commission or may even some amount of rupees with difference between the
selling and purchasing price.

1.9.5 Role of Bank

The various roles played by the banks are as follows:

 Intermediation Role
It transforms saving received primarily from households into credit (loans) for
business firms and others in order to make investments in new building, equipment’s,
and other goods.
 Payment Role
It carries out payments for goods and services on behalf of their customers such as
issuing cheques, wiring funds, providing a conduit for electronic payment and
dispensing currency and coins.
 Guarantor Role
Bank Stands behind their costumer to pay off costumers debts when those customers
are unable to pay such an issuing letter of credit.
 Agency Role
Bank acts as an agency on behalf of the costumer to manage and protect their
property or issue and redeem their securities usually providing through the bank trust
department.
 Policy Role
It also serves as a conduit for the government policy in attempting to regulate the
growth of the economy and pursue social goals.

1.9.6 Meaning of Commercial Bank

Commercial Bank is the major sector for upgrading country economy. It is the oldest form of
the bank. It is defined as "A commercial Bank is the one which exchanges money, accepts
deposits, grant loans and performs commercial function and which is not a bank meant for

10
cooperative, agriculture, industries or for such purpose" according to the commercial Bank
Act.

In general, bank that performs all kinds of banking business and generally finances trade and
commerce is called commercial bank. Commercial banks are financial intermediaries that
accept deposits from the members of the public who do not have intermediates use foe funds
(savers) and lending such funds to those requiring funds for investment (borrowers). It also
transfers fund from one costumer to another and provides other services such as offering
advice on a wide range of matters relating to finance.

It has also been defined as “Commercial bank is a financial institution that operates currency
exchange, money transactions, accepts deposits, advances loans and performs other
commercial transactions which is not specifically established with the objective of
cooperative, agricultural, industrial or any other such kind of specified purpose.” according
to the Commercial Bank Act 2031, section 2(a).

They are those banks, which gathers altogether the scattered savings of the community and
arrange for their productive use and generate profit. They accept deposits from the public and
use the money to help the community by making loans to individuals, organizations,
governments and business. Commercial banks, acquire funds from group of surplus spending
units and making these funds available to the deficit units facilitating the effective
mobilization of resources, which in return leads to sound economic growth of the country.

The main aim of the commercial bank is to earn profit like any other business entity. It lends
a certain percentage of the cash lying in deposits on higher interest rate than it pays on such
deposits. The difference on interest on deposit received and loans advanced are the main
source of its income. Thus, commercial banks are merely a business firm engaged in
financial intermediation as well as perform additional functions under strict supervision and
control of the central bank.

1.9.7 Functions of Commercial Bank

a) To accept deposits
b) To provide loan and advances

11
c) To provide general utility functions
d) To provide overseas trading services
e) To provide information and other services
f) To provide investment facilities
g) To provide remittance facilities

1.9.8 History and Development of commercial banks in Nepal

At the early stage, zamindars were known as banks, the focus was more on lending money
against securities like land and ornaments, which could be redeemed if the loan wad
defaulted. TejarathAdda, established in 1933B.S at the time of Prime Minister Ranoddip
Singh, is taken as the first step for the development of institutional banking system.

Nepal Bank Limited Came in Nepal as the first ever-commercial bank of Nepal. The
government incorporated Nepal Rastra Bank (central Bank) along with RastraBanijya Bank
and Agricultural Development Banking 2024 B.S. FDI in the banking sector, through joint
venture banks, the first being Nepal Arab Bank Limited now NABIL Bank. Nepal Bank
Limited was established on 30 Kartik 1994 B.S., the first bank of Nepal. Banking terms
started in two senses, with its establishment. It conducts dual function of both commercial
and central bank. In order to allow Nepal Bank Limited to concentrate on commercial
features, on 14 Baishakh 2013 B.S., Nepal Rastra Bank was set up under Nepal Rastra Bank
at 2012 B.S. as the central bank of Nepal. This act has been repealed and Nepal Rastra Bank
act 2058 has been in an act by the parliament. It is regarded as the apex body of the monetary
and the banking structure. RastriyaBanijya bank was set up as the fully government owned
commercial bank in 2022 B.S. with its establishment banking services spread to both urban
and rural areas. Agricultural development bank was established in 2024 B.S. for the
upliftment of the agricultural sector.

Government formulated liberal economic policy to accelerate countries growth and

development. Government encouraged foreign investment and participation of private sector
in the banking sector. The government then applied the policy of “Joint Venture Banking”.
This was a great significant event. Healthy competition prevailed and people were offered
valuable services and national as a whole begun to take benefit.
12
Commercial banks should operate under the Commercial Bank Act 2031, Nepal Rastra Bank
Act 2058. Company Act 2053 and Contract Act 2056. Nepal Arab Bank Limited (NABIL) is
the first bank established in joint investment in Nepal in 2041 B.S. A year later Nepal
Indosuez Bank Limited currently renamed as Nepal Investment Bank Limited was set up,
with passage of time several other joint venture and private bank has been established.

After the restoration of democracy in Nepal, there has been tremendous development in
banking sector. Rural development banks are formed for all development banks under the
control and supervision of Nepal Rastra Bank. These banks includes

a) Eastern Rural Development Bank

b) Central Rural Development Bank
c) Western Rural Development Bank
d) Mid-western Rural Development Bank
e) Far-western Rural Development Bank

Nepal Industrial Development Corporation (NIDC) and Agricultural Development Bank

(ADB) were only two development banks to be established before the enactment of Nepal
Development Bank Act 2052 B.S. After the introduction of Nepal Development Act 2052
B.S., many development banks were set up. Nowadays it has also been one of the attractive
places for employment, investors etc.

1.10 Introduction of Nepal Bank Limited

1.10.1 History

NepalBank Limited, The first bank of Nepal was established in November 15, 1937 A.D
(Kartik, 30, 1994). It was formed under the principle of Joint venture (Joint venture between
govt. & general public). NBL's authorized capital was Rs. 10 million & issued capital Rs. 2.5
million of which paid-up capital was Rs. 842 thousand with 10 shareholders. The bank has
been providing banking through its branch offices in the different geographical locations of
the country.

13
The history of Nepal Bank ltd is very old. It is the first bank of Nepal. His Majesty King
Tribhuvan inaugurated Nepal Bank Limited on Kartik 30,1994 Bikram Sambat. This
maarked the beginning of an era of formal banking in Nepal. Until then all monetary
tractions were carried out by private dealers and trading center.

Then Prime Minister Maharaja Juddha Shumsher J.B.R. speaking on the occasion with the
kind permission of His Majesty the King stated this work which is being done in the larger
interest of the nation is a great moment for me. Until today a bank could not be opened in
Nepal. Therefore this bank, which is being established under the name of Nepal Bank
Limited to fill that, need and to be inaugurated by His Majesty the King, is a moment of great
joy and happiness.

The Bank's objectives to render service to the people whether rich or poor and to contribute
to the nation's development will also need the support and best wishes of all, which I am
confident, will be coming. In that era, very few understood or had confidence in this new
concept of formal banking. Rising equity shares were not easy and mobilization of deposits
even more difficult. This was evident when the bank floated equity shares worth NRs.
2,500,000, but was successful only in raising NRs. 842,000.

"In the absence of any bank in Nepal the economic progress of the country was being
hampered and causing inconvenience to the people and therefore with the objective of
fulfilling that need by providing service to the people and for the betterment of the country,
this law in hereby promulgated for the establishment of the Bank and its operation"

The total deposits for the first year was NRs. 17,02,025 where current deposits was about
NRs. 12,98,898 fixed was about NRs. 3,88,964 and saving was NRs. 14,163. Loan disbursed
and outstanding at the end of the first year was NRs. 1,985,000.

From the very conception and its creation, Nepal Bank Ltd, was as joint venture between the

14
government and the private sector. Out of 2500 equity shares of NRs. 100 face value, 40%
was subscribed by the government and the balanced i.e. 60% was offered for the sale to
private sector. There were only 10 shareholders when the bank first started.

1.10.2 Introduction

Nepal Bank Limited, The first bank of Nepal was established in November 15, 1937 A.D
(Kartik, 30, 1994). It was formed under the principle of Joint venture (Joint venture between
govt. & general public). NBL's authorized capital was Rs. 10 million & issued capital Rs. 2.5
million of which paid-up capital was Rs. 842 thousand with 10 shareholders. The bank has
been providing banking through its branch offices in the different geographical locations of
thecountry.

Network for inclusion: Use bank's network to increase its reach all over the country from
urban areas to rural areas and help in improving the lifestyle of rural population and in turn
become the bank of choice of corporate, medium businesses and rural market.

Enhancing the value: To employees, shareholders, government and customers

World class banking services: Provide world class banking services by achieving excellence
in customer service and adopting high level technology standards.
Segmented business approach: For risk management and enhancement of efficiency.

Partnership: With all stakeholders including the Government, employees, shareholders and
customer.

Innovation: Of business areas and processes for providing Advanced banking services, and
enhance competitiveness.

Responsiveness: responding to the changing need of the market/society/business on timely

basis.

Integrity: Uphold trustworthiness and business ethics in the business processs.

Total banking solutions: To cater the need of all sections of society.

15
1.10.3 Shareholding Composition

S.N Ownership Percent

1 Government of Nepal 38.60

2 General Public 61.40

Total 100

1.10.4 NBL Network Overview

Region wise branches No of Branches

Kathmandu Region 28

Biratnagar Region 28

Birgunj Region 19

Pokhara Region 21

Nepalgunj Region 16

Total no of Branches* 118

1.10.5 Objectives

Nepal Bank Limited has the following objectives.

16
  Focus on building the positive net worth and meeting minimum capital requirement
over the coming five years.
 Focus on increasing the customer base and market share.
 Maximize the potential/efficiency of bank's staff.
 Focus on minimizing the risk associated with the business.
 Focus on providing the world class business solutions.
 Focus on increasing the sustainable profit.

1.10.6 Vision
“Pioneer bank with complete banking solution” Nepal Bank Limited holds of a vision to
become a Leading Bank of the country by providing premium products and services to the
customers. It ensures attractive and substantial returns to the stakeholders of the Bank.
1.10.7 Mission

Nepal Bank Limited seeks to provide an environment within which the bank can bring
unique financial value and services to all customers. It will be a sound institution where
depositors continue to have faith in the security of their funds and receive reasonable returns;
borrowers are assured of appropriate credit facilities at reasonable prices; other service-
seekers receive prompt and attentive service at reasonable cost; employees are paid adequate
compensation with professional career growth opportunities and stockholders receive
satisfactory return for their investment.

1.10.8 SWOT Analysis

SWOT analysis of the bank is to evaluate the Strength Weakness Opportunities and Threats
involved in its business operation and identifying the internal and external factors that are
favorable and unfavorable to achieve bank’s objectives. Further major weakness of the bank
where bank has to work on for the improvement to increase the operational efficiency and
hence increase profitability has also been analyzed.

Strength:

 Government ownership

17
  Large branch networks
 Government transactions
 Physical resources
 Composition of deposits

Weakness:

 Over staffing
 Weak automation
 Work culture
 Low brand recognition
 Low staff morale
 Minimal product line

Opportunities:

The opportunities in the bank’s SWOT analysis is considered to the area where the bank has
room for growth or could take advantage of opportunities in the market place.

 Possibility to capture growing remittance business

 Growing banking business
 Banking deregulation

Threats:

 Harsh action by NRB

 Recession
 High competition
 Trade unions
 Political instability

18
 CHAPTER II

REPORT ABOUT INTERNSHIP EXPERIENCE

As prescribed by the faculty of management Birgunj Public College, the duration of

internship has been 8 weeks. Most of the time internship period has been spent in customer
service department and also have been placed in pension and remittance department.

2.1 Activities Performed in the Organization

2.1.1 Customer Service Department

For any banks are valuable assets .keeping this in mind, NBL tries to give best to its
customers. This department is the sensitive part of a bank as it interacts directly with the
customers. People come for various enquiries about banks, its new services. Thus it should
be efficient, clean and effectively handled by the employees of the bank. This department
creates an impression of the bank towards its customers, better services, they will come for
the services again and we are a part of the bank. Here the internee carried out the following
activities:

a) Counseling the customers

b) Interacting and communicating with existing and new clients
c) Opening of new account for the new clients
d) Making of cheque book and issue of cheque book to existing and new clients.
e) Printing of financial statement for clients
f) Scanning of account holders photos and signatures
g) Checking account holders customer balance
h) Checking account holders photos signatures
i) Handling telephones and use photocopy machine for customers’ ease.

19
 Analysis of the Activities in Customer Service Department:

Customer counseling

As we know that a bank performs well when their customers are satisfied. So, in this
department an internee tries provided by the bank to its new and existing customers. They try
to solve enquiries, questions and doubts the customers are having.

Account Opening. Customer need to open new account to keep deposit in the bank to perform

other banking related activities and to enjoy several facilities provided by the bank. Opening an

account is entering into a contract with the bank. Only the party capable of contracting according

to the lass can open an account. NBL provides different schemes for opening an account.

Opening an account involves is the first step to make customers to come in its contract. A

customer can select the account according to their need and preference. Following Documents

are required to open bank account in NBL:

Personal Account (saving)

i. Citizenship card

ii. 2 Passport size photo

iii. In case of minor birth certificates, guardian's citizenship and 2 photographs

iv. Know Your Customer (KYC) supporting documents

v. Location proof document for such as voters ID, Bills payment voucher, land

ownership certificate etc.

Joint Account

i. Citizenship card photocopy of all parties

ii. Passport size photos of all parties

iii. Know Your Customer (KYC) supporting documents

20
 iv. Location proof document for such as voters ID, Bills payment voucher, land

ownership certificate etc.

Institutional Account

i. Firm registration certificate or PAN number

ii. Stamp of the institution

iii. Memorandum of Article of association of the company

iv. Resolutions/ Minutes of BOD to open and operate an account

v. List of directors, home address and phone number duly signed by respective

directors

vi. KYC along with the map

vii. Certificate of registered business

viii. Citizenship of the concern signatory and their supporting document.

Account Closing. According to the customer demand, once opened account is closed. For this,

customer needs to fill up the account closing application with the reason. After filling form

customer must pay the charge as per the bank’s rules and regulations, remaining cheque book

should be hand over to the bank and then only remaining balance of customer is refund to the

customer.

Providing Account Statement. Account statement is provided to the customer as they needed.

Account statement is recorded in the statement record book. For the corporate account holders,

statement is provided on the monthly basis. Account statement should be collected the account

holders or agent of account holders. In case of organization, statement is provided only if letter is

presented and signature of the particular persons as mentioned in the signature card

21
Cheque Printing and Binding. Cheque is the important authentic paper that is required for

customer to withdraw money from their account. The issue of new cheque is performed by CSD.

It is one of the important functions of CSD. Everyday a number of cheques are printed for which

the following steps are applied. Receiving the requisition slip from the customer with the

signature of account holder along with the agent who receives the cheque book. The signature is

verified with the signature stamp. The requisition is printed and after which cheques are printed

with same format. The cheques are bind properly. The printed cheques are recorded in the

cheque issued record file. Verifying the agent’s signature and after which the cheque is delivered

to the party or customer.

Checking Account Balance. Many customers are unsure about their balance in their account

and the signature they did while opening account. Customer must have be the same signature in

cheque which they have done while opening account. So when the customers become unsure

about their signature they come to CSD desk to see their signature in the system. Some

customers also come to CSD desk to know their balance. Intern got the chance to use system and

let customer to know their balance signature.

Responding To Phone Calls. CSD is also responsible for responding phone calls of the

customers and transferring it to different departments as per the needs of customer through

intercom. The customer generally calls to know about their balance, to know about various

facilities provided by bank, to know about various criteria and requirement to open account and

to initiate different banking activities provided by NBL Bank.

Scanning and Photocopy. The activity of making the photocopy of the documents such as the

Citizenship Certificate of the customers, the FD receipt and the other documents as asked by the

staffs of the bank was performed during the internship period. The account opening forms of the

22
customers (signatures of the accountholders and their photos) and other documents were scanned

during the period.

Filing and Record Keeping. Proper filing of the things like cheque requisition form,

ATM acknowledge form, account opening form, pension renewal form, mobile banking renewal

form etc. Updating of the account opening register for the new accounts opened, mobile banking

service provided, ATM card and pin delivered and getting the signature of the authority on the

register was also done.

Relationship Maintenance. Maintaining good customer relationship was another motto in

the CSD. As an intern the main focus was on the walk-in customers as well as the existing

customers because the walk-in customers were the potential customers of the bank who would

make the word-of-mouth advertisement of the bank and the existing customers are the assets of

the bank.

Miscellaneous Activities. Several other miscellaneous activities were performed during

the period of internship. The activities performed in the CSD may be listed below:

i. Provide customer with balance certificates, statements, customer advices as per the

rules and regulations of the bank

ii. Provide debit cards.

iii. Maintain good relationship with customers

iv. Writing the applications as instructed by the supervisor on behalf of the customers.

v. Assisting in the Financial Literacy Program organized by the bank in several colleges

and schools.

23
2.2 Problem Faced During Internship

While carrying out the task assigned by the supervisor, the internee faced different types of
problems. They are as follows:

a) Some of the customer disagrees to accept the charges for account closing and make
argument on this matter for long time. So, it becomes difficult to convince them about
the bank’s charges.
b) Though the instructions and required documents are clearly explained in the account
opening form, even then customers ask those for time to time and reasons for extra
documents that are already sated in back side of the form. So, it is tough to give them

24
 each and every guideline on filling different types of form as well.
c) The accountholder’s relation asks for the cheque book without bringing the letter of
authority and citizenship with accountholder’s valid signature and account number.
d) When the customers lost their cheque book and request for new one, in this case it is
difficult to find out all the used and unused cheque, valid signature and account
number from their record on the computer carefully.
e) Failure to remember the reference number on the remittance services such as Money
gram or Express money or Cash instant as the customer presented the form of
different reference number.
f) Sometime customer came to take the money but bank unable to give the payment due
delay of information in the bank website.
g) Quite confusion in inward and outward clearing bills while keeping the record in the
computer.

25
 CHAPTER III

SUMMARY, CONCLUSION AND RECOMMENDATION

3.1 Summary
Internship done under the requirement of PU to complete BBA has been proved as an
effective way of studying. It helps to get broader knowledge about the working as well as
banking environment .This report is based on the banking operation of Nepal Bank .Internee
selected this particular bank as it is one among many reputed Organization. As we know that
bank is place where financial activities are carried out. NBL was established in November
1937. It offers various services like remittance, loan, deposit products etc. The main thing
was that interne was able to learn about the various activities carried out in different
department. In remittance department internee learned to make demand drafts , balance
certificates .In clearing department internee learned about dealing with customers,
counseling them, balance checking , statement printing and so on .During these period of
internship many problems were faced by the internship and they were also solved . Thus
internee now can really understand about the banking scenario in general.

3.2 Conclusion
Nepal Bank limited culture is built on a set of core values: client focus, teamwork,
meritocracy, ethic & integrity, pioneering. The company is committed to its clients' best
interests as well as preserving a good relationship by defining realistic objectives.

Since the establishment of Nepal Bank Limited, it has aimed to become the leading bank of
Nepal by that provides outstanding services to its customers.

The services that Nepal Bank Limited provides have a great market penetration not only
because of their features but also the profit and markup rates that they charge. Also the
products that Nepal Bank Limited provides cater to sector of the economy.
26
Furthermore, as the bank is growing, new and more energetic employees are entering which
is sure to invigorate the performance of the bank.

Lastly, to become the leading bank of Nepal, Nepal Bank Limited has to benchmark its
services to its major competitors in the industry or the market leader in the industry and
provide a continuous mean of improvement in its existing products and services, while
introducing new ones to the industry.

3.3 Recommendations

 NBL should concentrate on better logistics like better maintenance of printer, good
paper quality for cheques, good UPS and the like.
 Information should be timely conveyed to customers regarding any change in
regulations.
 Training needs to be provided to employees regarding use of the system and
computer skills also needs to be brushed upon.
 Try to do better in giving services like instant ATM cards, etc. It will be better if
the bank follows new network that will also be used outside the country.
 The good communication flow between bottom to top as well as top to bottom
level, staffs etc.
 New products are necessary as there is growing competitive market.
 More number of computers are needed in the customer service department so that
there will be no rush inside the department
 Sometimes refreshment programs for the employees can be carried out to motivate
the employees.
 The provision of job rotation has to be made to make the employees familiar with
the works and to make the work done if anyone is absent.

Nepal Bank has been giving its best services toward its customers .It always thinks of new
and better way of serving its customers. Its hard work and banking facilities has able the
bank to survive as one of the leading banks of the nation despite of rapid increase of number
of banks and tough competition in the Nepalese banking environment.

27
 BIBLIOGRAPHY

Annual report of Nepal Bank Limited

Shrestha, M.K. &Bhandari, B.D (2008).Financial Markets and Institutions

Kathmandu, Asmita Publication

Nepal Bank Limited. Available

<[Link] Website: Available

<[Link] [online] Website: Available

<[Link] [online]

28
 APPENDICES

Annex 1: List of Commercial Banks in Nepal

[Link]. Commercial Banks in Nepal

1. Nepal Bank Limited

2.
Agriculture Development Bank Ltd

3. Nabil Bank Ltd.

4. Nepal Investment Bank Ltd.
5. Standard Chartered Bank Nepal Ltd.
6. Himalayan Bank Ltd.
7. Nepal SBI Bank Ltd.
8. Everest Bank Ltd.
9. RBB Bank Ltd.
10. Laxmi Bank Ltd.
11. Prabhu Bank Ltd.
12. Prime Commercial Bank Ltd.
13. Sunrise Bank Ltd.
14. Sanima Bank Ltd.
15. Machhapuchchhre Bank Ltd..
16. NIC Asia Bank Ltd.
17. Global IME Bank Ltd.
18. NMB Bank Ltd.
19. Siddhartha Bank Ltd.
20. Civil Bank Ltd.
21. Nepal Credit and Commerce Bank Ltd.
22. Rastriya Banijya Bank Ltd.

29
30