CHAPTER -1

INTRODUCTION

1.1. Background

This report is prepared in partial fulfillment for the degree of Bachelor of

Business Management (BBM). Tribhuvan University Bachelor of Business
Management (BBM) is one of the best management courses which makes path to
create business graduate. BBM helps students to deal with different sectors of the
management. As per requirement of Tribhuwan University (TU), students were
supposed to undergo internship in any organization for partial fulfillment of BBM
program. Internship is the process of applying business concepts and theories to
real world decision making which helps students to increase proficiency in
specific business disciplines; such as human resource management, operations
management, marketing, accounting, statistics, economics, finance and business
law. Internship provides platform to develop and improve business skills in
communication, technology, quantitative reasoning, and teamwork.

One of the main objectives of an internship is to expose you to a particular job

and a profession or industry. The hope of gaining an advantage for future
employment has increased both the number and quality of internship applications.
The students get chance to see how the organization works during the internship
period. Develop a solid work ethic and professional demeanor, as well as a
commitment to ethical conduct and social responsibility.

As college students work their way through college, they inch closer to the
coveted graduation date and full time job. As a college student, you may know
what type of work you want to do when you graduate, but you may not know
what the day to day looks like. An internship provides a glimpse into what the
work is like and if you will like it or not. Internships provide real-life exposure to
the work world and business without committing an entire career. Building yours

1
 professional network is just as important as building your experience. Internships
allow students to connect with professionals that are involved in similar work. It's
important to build your professional network.

As a part of BBM program, this internship program was conducted for two
months. The report is the result of internee internship experience gained during
the period at Rastriya Banijya Bank Ltd, Dhangadhi branch and is generated on
the basis of the work, research and facts that have been generated from Rastriya
Banijya Bank Ltd. This internship report is mainly entailed on “Customer service
department CSD of Rastriya Banijya Bank Limited” of Rastriya Banijya Bank
Ltd. Dhangadhi branch Kailali, Nepal.

1.2. Objectives
The objective of our internship programmed is to gain knowledge of how any
organization operates in the real world. The main objective of this report is to
explain the banking practices of Rastriya Banijya Bank Ltd. that has been
gained during the internship period.
Internee has selected to do internship at Rastriya Banijya Bank Ltd. is one of
service industry in Nepal on the customer service department. Mainly the
objectives of studies show the two types which are as:

Objectives

General Specific

Figure 1: objectives of the study

1.2.1. General Objective

 For the partial fulfillment of BBM.
 To understand the whole organization system and link the theoretical
knowledge into practice.

2
1.2.2 Specific Objectives
 To know how theories and concepts are applied in day-to-day business
operation.
 To observe and participate in a professional work situation which
represents an area of career interest.
 To develop leadership, interpersonal communication and managerial
skills.

1.3. Methodology
The internship report is based on well-designed methodology. Methodology is
the description of the procedure followed while collecting the necessary data and
information needed for the work and report generation. It helped to analyze the
data in finding the cause and effects of the relationship to see how bank is
performing. The basic components of methodology followed in this study are as
follows:
1.3.1. Selection of Organization
Selection of an organization for internship is no doubt a critical job. Interns were
supposed to select an organization which could help the intern to learn various
aspects of work and thus build confidence level. Besides, one should have a
strong reference to get enrolment in the organization. To accomplish the
internship, the intern approached Rastriya Banijya Bank Ltd., which one of the
reputed and leading commercial bank in Nepal.
In order to approach the bank, the requirements were the recommendation letter
from the college and curriculum vitae. After screening my CV by the authority of
Human Resource Department (HRD) in head office, intern was duly selected as
intern for its branch in Dhangadhi Kailali, for the partial fulfillment of internship
report in two months.

3
1.3.2. Placement
The intern was selected to complete the internship program at Rastriya Banijya
Bank Ltd., its branch that is at Mahakali HIghway Dhagarhi(10900). The Human
Resource Department placed the intern at Customer Service Department (CSD)
so as that brief knowledge about banking can be given.
1.3.3. Duration
The duration of the internship was for 8 weeks i.e. from 30 Baisakh 2076 to 4th
shrawan 2076. The internship was very helpful to gain in depth knowledge
regarding the functioning of Customer Service Department (CSD) that helped a
lot in grooming interpersonal skills. Despite of the time limitation, much
knowledge has been obtained, a lot has been learned and confidence has
developed a lot. The way of communication with people and customer
relationship skill has been developed. Intern was placed at Customer Service
Department (CSD).
1.3.4. Activities Performed
During the stay at customer service departments of the organization, the intern
was at first given the brief overview about the work. The intern was given
different work. In CSD intern has to do customer counseling, account opening,
account closing, provide balance certificate, Cheque printing, scanning files,
cheque distribution, ATM distribution and other various activities. It was a great
learning experience for intern as it helped intern to gain a lot.

4
 CHAPTER -2
INTRODUCTION OF THE INDUSTRY

2.1. Meaning and Context of Banking Industry

The word ‘bank’ comes from the Italian word ‘banco’. Latin word ‘Bancus’ and
French word ‘Banque’ meaning ‘Bench’ on which the Bankers would keep
money and its records. Banks are business houses established to safeguard
people’s money, which is used to make loans and investment.

A bank is a financial institution which deals with deposits and advances and other
related services. It receives money from those who want to save on the form of
deposits and lend money to those who need it. A bank accepts money from the
people in the form of deposits usually repayable on demand or after the expiry of
the fixed period. It gives safety to the deposits of its customers. It also acts as
custodian funds of its customers. A bank provides easy payment and withdrawal
facility to its customers in the form of cheque and drafts. It also brings back
money circulation. This money in the form of cheque, drafts etc. A bank acts as a
connecting link between borrowers and lenders of money. Bank collects money
from those who have surplus money and give to those who are in the need of
money.

Financial institutions play a major role in the proper functioning of economy.

These institutions act as an intermediary between the individuals who lend and
who borrow. These institutions accept deposits and in turn lend it to people who
are in need of financial resources. These institutions make the flow of investment
easier. So, we cannot deny the role of banks that plays in developing an economy.
It pools the funds scattered in the economy and mobilizes them to the productive
sector.

Bank acts as payment agents by conducting checking or current accounts for

customers, paying cheques drawn by customers on the bank, and collecting

5
 cheques deposited to customers’ current accounts. Bank also enables customer’s
payments via payment methods such as telegraphic transfer and ATM. Banks
borrows money by accepting funds deposited on current accounts, by accepting
term deposits and by debt securities such as banknotes and bond. Banks lend
money making advances to customers on current count, by making installment
loans, and by investing in marketable debt securities and other forms of money
lending.

Bank is lifeblood of modern economy. Banks provides almost all payment

services, and a bank account is considered indispensable by most business,
individuals and governments. Non–banks that provides such as remittance
companies are normally considered an adequate for having bank account.
(Business Dictionary, 2010)

2.1.1. Definition of Bank

“Bank is a manufacturer of credit and machine for facilitating exchanges”

(Horace White,)

“A Banker is defined as an individual, partnership or corporation, whose sole or

predominating business is banking. That is, the receipt of money on current or
deposit account, and the payment of cheque paid in by a customer.”
(Hulsbury’s Law of England)

“Bank is an establishment, which makes to individuals such advance of money as

may be required safety made and to which individuals entrust money when not
required for use”(Prof.R.P. Kinley,)

2.1.2. Origin of Bank

The history of banking is nearly as old as the civilization. In the ancient Rome and
Greece, the practice of storing precious metals and coins at safe place and loaning
of money for the public and private purpose on internet was prevalent. In
th
England, banking had its origin with the London Goldsmith who in the 17

6
 century began to accept deposits from merchants and others for safe keeping of
the money and other valuables. As public enterprise, banking made first
appearance in Italy in 1157 AD when the “Bank of Venice” was founded. The
modern economic system cannot function without bank. According to modern
concept, banking is a business that not only deals with borrowings, lending and
remittance of funds, but it is also important instruments for fostering economic
growth.

2.1.3. History of Banking Industry in Nepal

In Nepal, the banking industries came into existence since eighteenth century. The
th
concept of modern banking system is leading the world in 19 century and it is
very new to the Himalayan region. According to Nepalese History-“Gunakama
Dev, the king of Kathmandu had borrowed money to rebuild and rule Kathmandu
in 1723 B.S.”

The history of banking in Nepal is believed to be started from the time of Prime
Minister Ranoddip Singh in 1877 A.D. he introduced many financial and
economic reforms. The Tejaratha Adda was established at that time and its basic
purpose was to provide credit facilities to the general public at a very
concessional interest rate. The Tejarath Adda disbursed credit to the people on the
basis of collateral of gold and silver. All employees of government were also
eligible for this type of loan, which was settled by deducting from their salary.
Tejaratha Adda extended credit only; it did not accept deposits from the public.

Nepal bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of
modern banking of the country. Nepal bank marks the beginning of a new era in
the history of the modern banking in Nepal. This was established in 1937 A.D.

Nepal Bank has been inaugurated by King Tribhuvan Bir Bikram Shah Dev on
30th Kartik 1994 B.S. Nepal bank was established as a semi government bank
with the authorized capital of Rs.10 million and the paid-up capital of Rs. 892
thousand. Until mid-1940s, only metallic coins were used as medium of

7
exchange. So, he Nepal Government (His Majesty Government on that time) felt
the need of separate institution or body to issue national currencies and promote
financial organization in the country.

Nepal Bank Ltd. remained the only financial institution of the country until the
foundation of Nepal Rastra Bank is 1956 A.D. Due to the absence of the central
bank, Nepal Bank has to play the role of central bank and operate the function of
central bank. Hence, the Nepal Rastra Bank Act 1955 was formulated, which was
approved by Nepal Government accordingly, the Nepal Rastra Bank was
established in 1956 A.D. as the central bank of Nepal. Nepal Rastra Bank makes
various guidelines for the banking sector of the country.

A sound banking system is important for smooth development of banking system.

It can play a key role in the economy. It gathers savings from all over the country
and provides liquidity for industry and trade. In 1957 A.D. Industrial
Development Bank was established to promote the industrialization in Nepal,
which was later converted into Nepal Industrial Development Corporation
(NIDC) in 1959 A.D.

Rastriya Banijya Bank was established in 1965 A.D. as the second commercial
bank of Nepal. The financial shapes for these two commercial banks have a
tremendous impact on the economy. That is the reason why these banks still exist
in spite of their bad position.

Nepal Bank Ltd. Remained the only financial institution of the country until the
foundation of Nepal Rastra Bank in 1956 A.D. Due to the absence of the central
bank, Nepal Rastra Bank has to play the role of central Bank and operate the
function of central bank. Hence, the Nepal Rastra Bank Act 1955 was formulated,
which was approved by Nepal Government accordingly.

8
2.1.4. Types of Banking and Financial Institution in Nepal

 Central Bank
 Commercial Bank (Class A)
 Development Bank (Class B)
 Finance Companies (Class C)
 Micro Credit Development Bank (Class D)

S.N. Types of banking and financial institution in Numbers of banking and

Nepal financial institution in Nepal
1. Central Bank 1
2. Commercial Bank (Class A) 28
3. Development Bank (Class B) 28
4. Finance Companies (Class C) 23
5. Micro Credit Development Bank (Class D) 47
Table 1: Type of Bank and Financial institution in Nepal

Numbers of Bank and financial Instituitions in Nepal

50
45
40
35
30
25
20
15
10
5
0
Central Bank Commercial Bank Development Bank Finance Companies Micro Credit
Development
Bank

Figure 2: Number of bank and financial institution in Nepal

9
2.1.5. Introduction of Commercial Bank

A commercial bank is a financial institution that is authorized by law to receive

money from businesses and individuals and lend money to them. Commercial
banks are open to the public and serve individuals, institutions, and businesses. A
commercial bank is almost certainly the type of bank you think of when you think
about a bank because it is the type of bank that most people regularly use.
According to the Commercial Bank Act, 2031, “Bank means a commercial bank
established under this act”. Banks are regulated by federal and state laws
depending on how they are organized and the services they provide. Commercial
banks are also monitored through the Federal Reserve System.

A Commercial bank is a type of financial institution that provides services such as

accepting deposits, making business loans, and offering basic investment
products.

"Commercial bank" can also refer to a bank, or a division of a large bank, which
more specifically deals with deposit and loan services provided to corporations or
large/middle-sized business - as opposed to individual members of the
public/small business - Retail banking, or Merchant banks.

A commercial bank is a financial institution that provides services, such as

accepting deposits, giving business loans and auto loans, mortgage lending, and
basic investment products like savings accounts and certificates of deposit. The
traditional commercial bank is a brick and mortar institution with tellers, safe
deposit boxes, vaults and ATMs. However, some commercial banks do not have
any physical branches and require consumers to complete all transactions by
phone or Internet. In exchange, they generally pay higher interest rates on
investments and deposits, and charge lower fees.

Commercial banking activities are different than those of investment banking,

which include underwriting, acting as an intermediary between an issuer of
securities and the investing public, facilitating mergers and other corporate

10
reorganizations, and also acting as a broker for institutional clients. Some commercial

banks, such as Citibank and JPMorgan Chase, also have investment banking
divisions, while others, such as Ally, operate strictly on the commercial side.
Commercial banks are an institution which accepts deposits, makes business
loans, and offers related services. Commercial banks also allow for a variety of
deposit accounts, such as checking, savings, and time deposit. These institutions
are run to make a profit and owned by a group of individuals. In Nepal, Nepal
Rastra bank is central bank of Nepal. Nepal Rastra Bank, the governing body of
banking and financial institution has categorized the bank and financial institution
in four distinct categories. i.e. ‘A’ Class, ‘B’ Class, ‘C’ class and ‘D’ class
institutions. Commercial banks are categorized under ‘A’ class banks in Nepal.
These categories of banks in Nepal differ according to capital and service
provided by them.

S.N. Commercial Bank

1 Nepal Bank Limited
2 Rastriya Banijya Bank Limited
3 Agriculture Development Bank Limited
4 Nabil Bank Limited
5 Nepal Investment Bank Limited
6 Standard Chartered Bank Nepal Limited
7 Himalayan Bank Limited
8 Nepal SBI Bank Limited
9 Nepal Bangladesh Bank Limited
10 Everest Bank Limited
11 Bank of Kathmandu Limited
12 Nepal Credit and Commerce Bank Limited
13 Kumari Bank Limited
14 Laxmi Bank Limited
15 Global IME Bank Limited

11
 16 Citizen Bank International Limited
17 Prime Commercial Bank Limited
18 Sunrise Bank Limited
19 NMB Bank Nepal Limited
20 NIC Asia Bank Limited
21 Siddartha Bank Limited
22 Machhapuchchhre Bank Limited
23 Mega Bank Nepal Limited
24 Civil Bank Limited
25 Century Bank Limited
26 Sanima Bank Limited
27 Janata Bank Nepal Limited
28 Prabhu Bank Limited
Table 2: Number of commercial bank in Nepal

2.2. Functions of Commercial Bank

Functions of
Commercial
Bank

Primary Secondary Function

Function

Agency Information
Accepting Saving Fixed Deposit Foreign General
Function and other
Deposit Account Account Trade Utility
service
Financing Function

Figure 3: Functions of Commercial Bank

12
2.2.1. Primary Function

In bank there are mainly three types of primary function which are mainly used in
banking sectors. In Nepal Primary functions performed by commercial banks are:

a) Accepting Deposits

This is the oldest function conducted by commercial banks. It accepts

deposits in three forms. They are as current, saving and fixed deposit
accounts. Deposited amount is repayable on demand or on short notice.
Interest is provided in saving and fixed deposit accounts whereas in
current account interest provision is not given. Customers of fixed deposit
account are required to keep fixed amount with bank for a fixed period.

b) Saving Accounts

Saving account is suitable for non-trading and small income earners.

Saving account helps in mobilization of the saving of low income
people. The commercial banks pay interest on this type deposits.

c) Fixed Deposit Accounts

Fixed deposit account is the account in which amounts are deposited for a
certain fixed period of time. The deposits cannot be withdrawn before the
expiry of this fixed period. The longer the period of deposits, the higher is
the rate of profit.

2.2.2. Secondary Functions

Along with the primary functions each commercial bank has to perform several
secondary functions too. It includes many agency functions or general utility
functions. The secondary functions of commercial banks can be divided into
agency functions and utility functions. The secondary functions of the bank are as
follows:

13
a) Agency Functions

The commercial bank acts as an agency and performs variety of services

on behalf of its clients. The bank makes payment of the cheques, draft and
bills of exchange presented by the customers.

It can also transfer money from one place to another through use of draft,
mail transfer and telegraphic transfer on customer’s request. It also pays
utility expenses on behalf of its customers. The banks on the request of its
customers buy and sell a company’s shares and government security bonds
and also collects the interest on the same.

The various agency functions of commercial banks are:

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

 To make payment of rent, insurance premium, etc.
 To deal in foreign exchange transactions.
 To purchase and sell securities.
 To act as trusty, attorney, correspondent and executor.
 To accept tax proceeds and tax returns.
b) General Utility Functions

The banks do some services known as general utilities services. It carries

out foreign currencies transactions with central bank’s approval. Banks
provides locker facilities for safe keeping of valuable documents. It gives
economic and professional advices to its customers. It also issues
traveler’s cheques on behalf of customer’s name It also offers investment
and merchant banking services.

The general utility functions of the commercial banks include:

 To provide safety locker facility to customers.

 To provide money transfer facility.
 To issue travellers cheque.

14
  To accept various bills for payment e.g. phone bills, gas bills,
water bills, etc.
 To provide merchant banking facility.
 To provide various cards such as credit cards, debit cards, Smart
cards, etc.
c) Foreign Trade Financing
It discounts bills of exchange drawn by Nepalese exporters on the foreign
importers and enabled the exporters to receive money in the home
currency. On the other hand, it also accepts the bills drawn by foreign
exporters.

d) Information and Other Services

Some banks provide regular bulletin on trade and economic conditions at

home and abroad countries, and special reports on commodities and
markets. They may also invite enquiries for those wishing to extend their
trade and are able through their correspondents to furnish the name of
reputable and interested dealers of goods and to advice on the
appointment of suitable agents in some cases. On request, banks obtain
information for customers, for business purpose, for confidential opinions
on the financial standing of the companies or industries at home or abroad
countries.

2.2.3. Importance of Commercial Bank

The role of bank is vital in the economic development of the country. The
importance can be examines as under:

 Increase Saving:
The people deposit their savings into the banks and the banks pay
reasonable profits on these savings.

 Increase in Investment:
15
 The money which is collected by the bank is lent to businessman or
industrialist. The increase in the investment increases the level of
employment.
 Increase in Employment:
The banks advance loan to investors. As a result the industrial units are
setup in different parts of the country thereby increasing level of
employment.
 Transfer of Money
When the people want banking to transfer their money from one place to
another place they get travelers cheque and bank draft from the bank.
 Capital Formation
The process of capital formation is completed with the aid of the banks.
 Balanced Development:
When the banks provides loan to less developed areas, the chances of
progress and development are increased in the areas. A planned banking
system is indispensable for economic growth and development of the
country.

2.3. Challenges and Opportunities of Commercial Bank

2.3.1. Challenges

Banking transaction is increasing day by day but along with it the numbers of banks
are also increasing. It is very much necessary to differentiate one bank from another
in order to occupy the higher position in customer mind. So, the banking industry is
facing high range of challenges. Some major challenges are:

 Banking habits
 Competition
 NRB policies
 Technology
2.3.2. Opportunities

16
Commercial transaction is increasing day by day eliminating the traditional system.
More liberalized, modernize and systematic management creates opportunities for
commercial banks. Some of them are:
 Emerging nation
 Merger
 Technology
 Remittance

CHAPTER – 3
17
 INTRODUCTION OF THE ORGANIZATION

3.1. Rastriya Banijya Bank limited Profile

Rastriya Banijya Bank (RBB) is a Natrional Commercial Bank. It is fully

government owned , and the largest commercial bank in Nepal. RBB was
established on January 23, 1966 (2022 Magh 10 BS) under the RBB Act. RBB
provides various banking services to a wide range of customers including banks,
insurance companies, industrial trading houses, airlines, hotels, and many other
sectors. RBB has Nepal`s most extensive banking network with 236 branches.

RBB is 0ne of the pioneer banks in the country, with a history of nearly a half
century. Earlier constituted under NRB Act 20201with a full ownership of the
government of Nepal , the bank has been running under bank and financial
institute Act (BAFIA) and Company Act (CA) 2063. The bank, licensed by NRB
as an "A" class commercial bank of the country, has grown up as an indispensable
component of the Nepalese economy. is was the highest profit earning bank for
fiscal year 2014/15. The bank has the second highest paid-up capital until the end
of FY 2015/16 after agricultural development bank. In terms of deposit, the bank
has collected Rs. more than Rs. 130 billion (FY 2015/16), which is the highest
deposit of any commercial bank in Nepal.

RBB is one of the pioneering banks in the Nepalese market that has carried out
Note Kosh Fund, Bharu Kosh Fund, NRB's draft transaction, government
transaction, and pension fund of the Nepal Government. Besides more than two
dozen bank's branches are running in losses, they provides continues services to
the general public because it is the government bank. Profit is not the only motive
of the bank. RBB provides services in remote and undeveloped areas of Nepal.

RBB has a history of contributing for the monetization of the economy,

eliminating dual currency in the market, initiating preliminary financial literacy ,
and helping industrial, commercial and financial sector of the country to flourish.
It is a modern and strong financial institute of the country. With 2600 hands, it

18
 has expanded its wings in the most part of the country through multiple
distribution outlets of 236 branches,17 counters, 93 branchless banking (BLB)
and 165 ATMs. It has high public confidence, reflected in the highest deposit base
and growing demand for branch establishment in the various parts. The bank with
an many as 1.7 million satisfied direct customers ranging from poor to elite ones
and millions of indirect ones, has drawn important imprint in the picture of the
country's economy through its significant involvement in the best use of its
resources to enhance the production, income, and employment opportunities.

3.1.1. Organization Leadership Structure

Board of
Directors

Board of
Commitee

Management
Team

Branch Managers

Figure 4: Organization Leadership Structure

3.1.2. Vision Statement of Rastriya Banijya Bank Ltd

"To provide innovative banking services to everyone, everything, and everywhere

for the economic development of the nation".

3.1.3. Mission Statement of Rastriya Banijya Bank Ltd

''To provide easy and innovative banking products and services for our customers
by implementing one stop service concept from our wide network using our
modern technology, qualified human resources in competitive environment. we

19
 always look for the benefit of the local communities supporting entrepreneurship,
social responsibility and economic prosperity of the nation."

3.1.4. Objectives of Rastriya Banijya Bank Ltd

The overall objectives of the bank is to contribute in nation building and meeting the
expectation of its shareholders, depositors, customers, and other stakeholders, the bank
has committed to continuously strive the for realizing its objectives by leading the
banking in every front with are

 Expanded presence within and outside the country

 Targeting underserved or potential services areas like SMEs and retail business
 Reshaped and restructured banks infrastructure and system
 Serviced by knowledgeable and efficient staffs
 High degree of compliance and risk management
 Focus on providing innovative financial services
 Enhance operational efficiency
 Sustainable increase in profits
 Business growth and increase in market share
 Increase in capital base of bank by meeting the minimum capital requirement

3.1.5. Capital Structure of Rastriya Banijya Bank Ltd

Authorized Capital Rs. 10 Billion

Paid-up Capital Rs. 8.59 Billion
Issue of capital Rs. 9 Billion
Table 3: Capital Structure of Rastriya Banijya Bank Ltd

3.1.6. Branch of Rastriya Banijya Bank Ltd

20
 With its head office in Singha Durbar Plaza, Kathmandu. The bank has 243
branches. The bank has started its project of extension of more branches inside as
well as outside its valley.

Areas of Rastriya Banijya Number of Rastriya Percent of Branches

Bank Ltd Branches Banijya Bank Ltd
Branches in Nepal
1 No. Province 52 21.40%
2 No. Province 33 13.58%
3 No. Province 52 21.40%
4 No. Province 29 11.93%
5 No. Province 36 14.81%
6 No. Province 19 7.81%
7 No. Province 22 9.05%
Total 243 100%
Table 4: Branch of Rastriya Banijya Bank Ltd

1 No. Province
2 No. Province
3 No. Province
4 No. Province
5 No. Province
6 No. Province
7 No. Province

Figure 5: % of Rastriya Banijya Bank Ltd Branch in Nepal

21
3.1.7. Board of Directors

The composition of board of directors of the bank is, as per the company act and
financial institution ordinance 2063. The list of Board of Directors of Rastriya
Banijya Bank Limited are as follows:

S.N. Name Level

1. Mr. Mahendra Man Gurung Chairman
2. Mr. Nirmalhari Adhikari Director
3. Mr. Rabindra Lal Shrestha Director
4. Mr. Janak Kumar Baral Director
5. Prof. Dr. Rajan Bahadur Poudel Director
6. Mr. Arjun Bahadur Adhikari Director
7. Dr. Madhav Pd. Dahal Director
8. Mr. Kiran Kumar Shrestha CEO
Table 5: Name of Board of Directors

Rastriya Banijya Bank Ltd is managed by a professional management team. The

member of the management have proven track record in the banking sector. The
board of directors consists of personalities.

3.1.8. Management Committee

The composition of Management Committee of the bank is, as per the

company act and financial institution ordinance 2063. Rastriya Banijya Bank
Ltd consists of manager and department heads in order to manage the
different function taking place in an organization. They are the ones who
take decision, implement the plan and assist and motivate their juniors to
have effective performance. This management Committee is formed in order
to achieve the organizational goals so they perform the work according to
the organization goals. The list of management Committee of Rastriya
Banijya Bank Ltd is as follow:

S.N. Name Level

22
1. Mr. Kiran Kumar Shrestha Chief Executive Officer
2. Mr. Kabiraj Adhikari Deputy CEO
3. Mr. Keshav Prasad Lamsal Deputy CEO
4. Mr. Tek Raj Joshi Deputy Executive Officer
5. Mr. Mahendra Prasad Awasthi Deputy Executive Officer
6. Mrs. Saraswati Adhikari Deputy Executive Officer
7. Mr. Debesh Pd. Lohani Deputy Executive Officer
8. Mr. Devendra Raman Khanal Deputy Executive Officer
9. Mr. Pawan Regmi Chief Manager
10. Mr. Bimal Dangol Chief Manager
11. Mr. Binaya Raman Poudel Chief Manager
12. Mr. Bholanath Poudel Member Secretary
Table 6: Name of Management team

3.1.9. Rastriya Banijya Bank Ltd Product and Service

RBB generates significant revenues through credit creation and the funds from
deposits are used for credit creation. As such, the major products of RBB are

 Deposits
 Loans and Advances

Along with these products, other services that significantly contribute for
RBB’s revenue generation and customer retention include:

 Branchless Banking
 Internet Banking
 Mobile Banking
 Extension Counter
 Visa Debit Card

23
  Cash Deposit Machine
 ABBS
 Locker
 Trade Finance

[Link]. Deposit

Deposits are the major sources of fund in Rastriya Banijya Bank

Ltd. Deposit is the amount placed by individuals and corporate
groups in the bank for safekeeping and is subject to withdrawal on
the demand of the depositor or at the time of maturity of stated
period. Deposits are the major liability for any banks and in case
of liquidation; deposits are settled first and foremost. Deposits are
facilitated through variety of accounts and they are:

a) Fixed Account
A fixed account requires the depositor to deposit a fixed sum of
money for a fixed period of time. A penal interest is charged in
case of withdrawal of fixed deposit prior maturity. The interest is
paid on quarterly basis. Fixed account can be opened by
individuals, minors, clubs, societies, associations and trusts.

Fixed Deposit MInimum Interest Rate

Account Balance (%)
Requirement
Simple fixed
deposit
3 months 5000 6.50
6 months 5000 7.00
1 year 5000 7.25
13-18 months 5000 7.50
2 year 5000 7.75
3 year 5000 8.00

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RBB Special
fixed deposit
1 year 50000 7.50
13 -18 Month 50000 7.75
2 year 50000 8.00
3 year 50000 8.25
3-4 year 50000 8.50
5 year 50000 8.50

RBB Corporate
fixed deposit
3 month 500000 6.50
6 month 500000 7.00
1 year 500000 7.50
1-1.5 year 500000 7.75
2 year 500000 8.00
3 year 500000 8.50

RBB platinum 1 crore Individual

fixed deposit 9.25
3 month to 3 Institution
year 8.50
Anniversary 100000 8.50
fixed deposit(1
year)
Golden deposit
1 year Individual 5lac 9.25
Institutional
10lac 8.50

25
 13 to 18 month individual 5lac 9.25
Institutional
10lac 8.50
2 year Individual 5 lac 9.25
Institutional 10
lac 8.50

Dirghaaayu 500000 9.25

fixed deposite
3 year

Table 7: Fixed Deposit Schedule

b) Saving Account
A saving account is an interest bearing account. In RBB, interest
is calculated on daily balance and credited to the account on
quarterly basis. The minimum balance for saving account depends
on the nature of saving account. Such balance is subject to any
incidental charges that RBB specifies during the period. To keep
the records of savings and transactions as well as to be updated
with the status of the account, a passbook is provided to the
depositor. The types of saving account in RBB are:
 Normal Saving
 Special saving
 Golden saving
 Karmayogi Bachat Khata
 Mahalaxmi Bachat Khata
 Teachers Bachat Khata

c) Current Account

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 A current account is non-interest bearing account. Only the
corporate bodies can open a current account. It is especially
designed for corporate bodies that are indulged in frequent
transactions. RBB provides the current account holder with
cheque book. A semiannual statement is sent to keep track of the
transactions carried out by the account holder. Additionally, the
bank may provide the statement daily, weekly or monthly as per
the request made.

[Link]. Loan

Rastriya Banijya Bank Ltd provides wide range of loan

products for both individual and corporate. It is the major
source for income earning of the bank. Dome of the loan
products are

a.) Housing loan

b.) Vehicle Loan
c.) Hire Purchase Loan
d.) Education Loan
e.) Apartment Loan
f.) Loan against Gold
g.) Loan against Government Bond
h.) Loan against Share
i.) Rastra Sewak Loan
j.) Teacher Loan

3.2. Present Situation in Rastriya Banijya Bank Limited

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3.2.1 Customer Service Department

CSD is the core department of the bank. Customers put their queries into this
department first and seek for the solution or the way to get the solution. CSD
provides different facilities to customers like account opening, cheque book
providing, bank statement of the customer, account closing, account activation,
ATM cards, card request etc. This department provides detail information about
the bank.

3.2.2 Marketing Department

Marketing is responsible to build an image of the bank into the customers mind
and also to innovate new products. This department always keeps an eye into the
competitor’s actions and searches for ways to deal with its competitors. This
department is also responsible for advertising, publicity, public relation and so on.

3.2.3 Credit Department

Credit department is a department in bank which is responsible in providing loan to

the customers. Bank charges some amount of fee in exchange of the services and
interest on the loan. Customers pay the principal along with the interest.

3.2.4 Share Department

This department is responsible in providing share certificate to the owners and

also to provide right shares.

3.2.5 Account Departments

This department deals with the accounts of the bank.

3.2.6 Legal Department

This department deals with the legal issues of the bank.

3.2.7 Operation Department

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 This department deals with day to day operations of banking activity.

3.3. SWOT Analysis of Rastriya Banijya Bank Limited

Categories: SWOT analysis, industry report, risk analysis

TAG: company history detailed financial ratios, financial history, key competitors

Description: higher competition might be possible. The company may gain

diversification potential. Diversification reduces the overall risk. This SWOT
analysis of Rastriya Banijya Bank Ltd provides a strategic report of businesses
and operations of the company. The SWOT analysis shows strength, weakness,
opportunity and threats. This SWOT analysis of Rastriya Banijya bank can
provide a competitive advantage.

3.3.1. Strength of Rastriya Banijya Bank Ltd

 Higher profitability and revenue
 Experienced business units
 Reduced labor costs
 Domestic market
 Monetary assistance provided
3.3.2 Weakness of Rastriya Banijya Bank Ltd
 High loan rates are possible
 High investment in research and development
3.3.3 Opportunity of Rastriya Banijya Bank Ltd
 New markets
3.3.4 Threats of Rastriya Banijya Bank Ltd
 Technological problems
 Growing competition and lower profitability

A SWOT analysis of a bank formally evaluates the financial institution’s strengths,

weaknesses, opportunities and threats. This analysis identifies these four main elements

29
to help upper management better leverage its strengths to take advantage of future
business opportunities while better understanding its operational weaknesses to combat
threats to potential growth. A SWOT analysis can also address many other scenarios,
such as new business initiatives, marketing budgets or even advertising campaigns.
SWOT analysis should list the areas where the bank is succeeding and excelling in
reaching its goals.

CHAPTER-4

30
 ANALYSIS OF ACTIVITIES
DONE/PROBLEMS SOLVED

4.1. Introduction of Customer Service Department (CSD)

As mentioned earlier, customer service is the front desk of any organization. For
any organization it is the place which makes an early impression to the clients. It
is the place where customer makes the first contact with the clients. The Image
and the reputation of bank depend upon effective functioning of this department.
It is the first place where the customer first gets the service.

It is important to know that a highly satisfied customer stays loyal, buys more as
the organization introduces new product, pays less attention to competing brand
and is sensitive to any changes made by the organization. Having significant
number of this kind of customer is only possible through the effective functioning
of customer service department of any organization. This very department is the
focal point of my study. In fact my study and my experience are focused mainly
on customer service department of my intern branch. 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.

CSD mainly targets on helping its existing or new customer who comes for
various purposes whether it is account opening or closing, balance inquiry, bank
statement and many more. CSD also commits to provide service to customers,
including providing information, technical support and quality of service in a
timely manner basically giving priority to the tasks as:

 Serves as the help desk where customer visits for inquiry

 Provide assistance with the needed information to the customers
regarding the product and services of the bank

31
  Assists the customer in filling forms, counseling the procedures,
providing suggestions and advice
 During internship, various activities need to be performed under the
direction and guidance of the supervisor.

4.1.1. Major Functions Carried Under CSD

This department introduces the basic banking procedures like opening the account
to its closing, issuing ATMs etc. The various activated of Customer service
Department are described follows:

[Link]. Customer Counseling

This is the most important function of customer service department. The

efficiency of the customer service department or an organization is the
outcome of the quality of the customer counseling that it provides. As
shown in the above chart that this department is concerned with counseling
the new as well as the existing clients regarding the product and the services
provided in this branch.

There are various kinds of product and services available in this organization.
Intern was responsible for providing detail information regarding these different
products and services. Counseling customer is a need for the bank as it wants to
increase the number of its clients. Convincing a customer is a difficult task as
well as interesting. Accordingly, intern was liable to counsel the customer from
various sectors to get introduced to the product of the organization.

[Link]. Account Opening

Account opening is one of the basic parts of customer service. Customer

from various walks of life comes to the bank for a safe deposit of their
money and to get benefit from the services of the bank. Account opening
is the basic and most usual kind of task a customer needs to do to connect
with the bank. Intern provided the materials to the customer to get their
account opened in the bank. It was also the duty of intern to respond to

32
 their queries and help them in getting the things right. Account opening
needs just a few procedures and have noted them below:

 Get an Identification card to identify as a citizen of the country.

 Provide 2 photos to get the form filled.
 Note down the address.
 Provide the bank with all the information as asked in the form.

Specific requirement under account opening for different account

Customers are required to fulfill the basic requirement before they open
their account. Those requirements are mentioned below:
a) For Personal Account
 Personal identification card (citizenship certificate, two copies of
photo).
 Nominee declaration.
b) For Partnership Account
 Letter of partnership duly signed by all partner.
 Copy of partnership duly signed by all partners.
 Copy of the partnership agreement.
 Certified copy of partnership.
c) For Cooperate Bodies
 Memorandum and article of association of the company.
 Resolution of BODs to open and operate account.
 List of all directors duly signed by respective directors with home address
and phone number.
 Copy of registration certificate.
d) For Minor
 Minor Birth certificate.
 Minor photo and nominee’s photo with citizenship/ passport with real
documents.
 Other Guardianship to be verified with other related document.

[Link]. Account Closing

33
 Customer’s demand and their wishes are as an order to the bank. People may
want to close their current account due to their various personal reasons. With
all due respect we as a bank must fulfill their demands and accordingly close
their account. Closing account needs a few procedure and have noted them
below:

 Identify which type of account the holder has.

 Check out the amount stored in the account.
 Identify the minimum balance.
 Make an entry to the system as per the bank’s rule.
 Let the customer and bank agree in canceling the account.
 Provide the customer with the amount stored in their respective
account.

Duty of an intern in this department was also to help out customer if

they wanted to get their account closed. Approximately 2 accounts
were closed during the intern period.

[Link]. Balance Certificate

Every day around 10-20 customer come for the request of balance
certificate to know the status and fund shown for the abroad study of their
account. The bank provides certificate to only the account holder after the
request form has been filled and submitted to CSD.

[Link]. Cheque Book Distribution

Clients, especially the ones holding current account in the bank request
cheque book quite often. The client has to fill up the request slip
(requisition) available in the CSD. After the submission of the request
slip, the check book is then provided to the requester 4 days later.

[Link]. ATM Distribution

34
 Except for the fixed, and call deposit the customer holding other account
is provided with an ATM card. They can use this card in various ATM
counters all over the country to withdraw cash and even for other activates
like balance certificate, check request etc. Rastriya Banijya Bank Ltd
Dhangadhi Branch has distributed a number of ATM cards till date.
Likewise the ATM cards been destroyed accordingly to the cancellation of
account in the bank.

[Link]. Other CSD Related Activities

a) Record the Account Opening and Cheque Book Request

In CSD, opening account is recorded and cheque book request are also
recorded. The cheque book request is made on the basis of finishing of old
cheque book and for lost one. For that request a sheet of paper already
attached with the cheque book. For lost one, an application subject to
request for new cheque book for same branch by paying Rs.200 and for
other branches Rs.300 should be charged. After charging respectively
department will provides cheque.

b) Information about Visa Debit Cards to Customers

The information about visa debit card is also providing by this department.
It also provides the debit card application forms to customer and records
them. After customers fill the form, the bank will inform availability of
their card through telephone. And issue card to respective customer at the
time of their arrival.

c) Searching Files
Searching file is another activity that should be done in CSD. For account
closing the file of respective account holder is needed and depending upon
different situation.

35
d) Filling Form and Vouchers
While opening account, some customers are unable to fill their forms. At a
time Intern should have helping those customers by filling the form for
them after getting the information about them.
e) Providing Bank Balance Statement

Bank balance statement is the statement that provides the information

about the amount deposited or issued (transactions).Rastriya Banijya Bank
Ltd has made provision of providing a/c statement as per Customer
Requirement. Normally it is provided as weekly, monthly and quarterly
basis.

f) Verification

Customers service department perform the verification function. It verify

different account before opening, signature of customers is verify at the
time of issuing new cheque, issuing debit card, payment of amount etc.

g) Amendments

Customer who like to make amendments to their existing account like

address change, authority given, authority cancelled, phone number
changed were served through appropriate procedure. Signature updates
requires a valid license or a passport of citizenship. One should be present
in the bank for changing signature, then the account holder fill up the
account service form. Those details are then fed to the system for
updating. If authority is to be added to the account then account holder as
well as one to whom authority is to be given, both have to sign in the form
authority card along with photos and a valid ID of both.

h) KYC Update

KYC is an acronym for “know your Customer”, a team used for

customer identification process. It involves making reasonable efforts to

36
 determine true identity and beneficial ownership of accounts, source of
funds, the nature of customer business reasonable of operations in the
account in relation to the customers’ business, etc., which in turn helps
the banks to manage their risks prudently. The objective of the KYC
guidelines is to prevent banks being used, intentionally or
unintentionally by criminal elements for the anti-money laundering.
KYC has two components- Identity and Address. While identity remains
the same, the address may change and hence the banks are required to
periodically update their records.

4.2. Experience in the Internship Including

Understanding System and Process

Being placed in Customer department and credit administrative department was a

challenge itself for the internee who has no prior work experience. Adopting the
corporate culture, being responsible for the task that have assigned and make
report on time were the challenges that the internee had to tackle during the time
of internship program. The time at RBB of eight weeks was very fruitful. Internee
learnt, experienced and built personal relationship with staffs and client as well.

An internee preformed various activities at credit department under the direct

supervision of Branch Manager Mr. Harish Chandra Bhatta, Assistant Manager
Mr. Trichandra Bhandari, ATM Focal Mr. Raju Dev Chaudhary, IT Focal Mr.
Ravi Kanu Gupta, [Link] Khanal is Customer Service Department officers of
Rastriya Banijya Bank Ltd. They guided and taught me how to customer
counseling, filing, software operation etc. The internee knows about technical
idea of banking system like customer luring and satisfied answer provide to them.
After finished this internship program I think every-thing we can do where you
engaged field. Before the intern this is a new area for me but at least two month
working experience change my working capacity like permanent employee of
their bank. I spend maximum period for customer service department in there my
survey in this area which are as below.

37
4.2.1. Survey Study at CSD

Some of my observations during intern period at this department gave some idea,
and regarding that observation some informal data has been extracted as follows:

 Most of the customers come with purpose of opening saving accounts

 Most of the customers preferred just taking cheque book rather than
taking ATM, since minimum balance has to be deposited for taking ATM.
 Maximum customers were from age group 18-50 years
 Some of the customers were illiterate who used Power of Attorney facility
 Almost more than half of customers were such that they also had account
in other banks
 Most of the customer were having permanent resident outside valley
 While filling KYC form maximum of customers didn’t know name of
their grandmother, where name grandfather was known by all.

4.3 Emergence Problem/Challenges and Solutions

4.3.1 Problems Identified at CSD

During 8 weeks internship, intern got the opportunity to understand, identify and
solve some of the problems faced by the bank. Here are some problems and
difficulties that exist in the CSD of the bank: Several problems were identified.
They were as follows:

 Many customers come to open an account without complete documents

filling. Moreover, customers who come for closing their account their
account do not bring their ATM and remaining check leaves. Unless the
necessary documents are brought by the customers, bank could not
proceed further.

38
  Customers insist to tell their balance in phone even if they are told that
the bank cannot tell the balance on the Mushrooming of other financial
institution near our branches.
 Customers complaining about higher interest rate in other bank in
comparison to ours.
 Some arrogant customers just come and shout without knowing proper
reason
 Lack of co-ordination among few staffs make intern confuse at their
tasks
 No enough table for customers to keep their forms and fill up them
 Immediate demand of cheque book from the customer
 Customer do not come to take their cheque book and ATM’s for a long
period of time
4.3.2 Problems Solved at CSD

During three months internship, intern got the opportunity to understand, identify
and solve some of the problems faced by the bank. Here are some problems that
solved at CSD which are as follows:

 The intern helped to sort out uncollected cheques and ATM card for
destruction. .
 Customers finding difficulties to fill the form are helped by intern and
CSD staffs.
 If anyone comes with request for bank statement of others, they are asked
to come with signature of concerned account holder on Bank Statement
Requisition Slip.
 The intern assisted in solving the customer’s problems by responding to
their queries.
 The intern assisted in distribution of different forms and vouchers
 Customers finding difficult to change the pin number of debit card are
helped by intern.

39
  Several suggestions to customers are also given about which scheme to
follow knowing their problems.

4.4 Observed Gaps

During internship period, Internee felt many gaps in Rastriya Banijya Bank Ltd
Dhangadhi Branch. Some of them are:
 All the tasks of Customer Service Department are done only by the intern.
In the absence of intern, a CSD task has to be done by remittance staff, as
results pressurize in tasks by staff.
 Filling of form by the customer in CSD is long procedure. There should be
requirement of Computer for reducing the documentation tasks.
 There is absence of banking browser i.e. guidelines for customer to know
the types of product/ services with their features and interest. Customer
doesn’t remind about all the products/services, their features, charges and
so on. At that time browser helps them for better understanding.

40
 CHAPTER-5

SUMMARY, LESSONS LEARNT,

CONCLUSION AND RECOMMENDATIONS

5.1. Summary

Working at Rastriya Banijya Bank Ltd was an enriching experience. It was a

totally new area to intern, so it was a whole new experience. The knowledge and
skills obtained from this internship will certainly help intern in the future. It is
found that the theoretical knowledge what is learnt from the classroom is far
different from the real working experience. But after learning the theory it was
really easy to relate some topics to the real experience. This internship will really
help intern after completing BBM. As the internship was only for a time spending
of eight weeks it was difficult to gain all the detail information from different
departments. Overall this internship was a learning experience. More than
anything intern learnt about the corporate culture and organizational skills to
some extent.

Internship has been incorporated as an integral part of BBM program, which

provides student an opportunity to familiarize with organizational culture and
develop managerial skills exposing oneself to the real life functions of the
business organization. The internship period is an exciting phase of a student’s
life. It is the grooming period every budding professional need and simply
because one is not an actual member of an organization does not mean that one
can ignore their duties. It is not just a requirement to pass one’s exams and get a
degree, but it is a period where one builds professional contacts, learns the art of
listening and observing.

41
 In this study, the intern has used both primary and secondary data that have been
collected from the various sources. The main sources of primary data are the daily
observations, problems and instructions of the supervisors, queries and
discussions while the secondary sources were newsletter, annual report,
magazines, and websites of the banks. The internship program also helped to
understand the activities performed by various departments as well as the working
principles of the banks.

5.2. Lesson Learnt

Internship brings change in attitude and behavior of the intern. Internship

increases the professionalism in intern. Intern gain professional experience in an
occupational area they are considering by providing practical exposure to real
work scenario.

The most important lessons learned by intern are as follows:

 The first and the most important thing learnt throughout the internship
period were to deal with the real world situations and how to work and
behave in the corporate world.
 The exposure to practical environment has increased the experiences of
intern and confidence to tackle with the real world problems.
 In internship period the intern learnt how to behave with the seniors and
colleagues and make good relationship with them, handling customer and
branch’s complaints and queries.
 Learnt a way to answer the queries of customers and branches and provide
them with best possible solutions.
 Competition is always high. Battle to survive.

5.3 Conclusion

42
The purpose of the internship is to provide student an opportunity to practice
various management principles in the real world. In addition it provides students
with an understanding of how organization operates in real world.

The banking industry has become highly competitive and it’s essential to establish
good corporate governance policies with systematic transaction and operational
procedure. In the circumstances, Rastriya Banijya Bank Ltd, which is the pioneer
in the Nepalese commercial banking sector and is in the process restructuring, has
also to consolidate internal control mechanisms in order to maintain homogeneity
in the bank’s operations by utilizing its huge network with distinct principles and
methods. Rastriya Banijya Bank Ltd had brought the concept of making and
revolutionized banking industry of Nepal after its establishment. The general
types of activities performed by Rastriya Banijya Bank Ltd are the accounting
activities, clearing, deposits, withdrawal, drafts, remittance, providing loans
interbank fund transfer and international money exchange etc.

Since for the history of commercial bank RBB has made a positive improvement
toward the financial institution. The bank has been providing various facilities
like ABBS; pay bill, E-banking, branchless banking, banking on wheels, ATM
and credit cards. Through an extensive global network that facilitates domestic
and international transaction RBB is able to meet customer’s need of import,
export, payments through offering facilities like L/C, SWIFT transfers,
Guarantees etc. Trust Receipt loans are offered to retire import bills. The bank
also offers per shipment and post shipment loans as part of export finance.

During the internship, the intern was involved in various departments like
customer service department and credit administrative department. The intern got
real life experience and exposure of working in an organization by performing
day to day activities, dealing with customers and providing information regarding
making operation and services. The intern got chance to gain knowledge about
credit and essential factors required while making credit decision. The intern
believes this experience will support while working for an organization.

43
5.4. Recommendations

During 8 weeks of internship, intern experienced banking sector from close eye.
Working with on the job employee tended to be great practical learning for the
intern. Rastriya Banijya Bank Ltd with modern technology and experience staff
within a short period of its operation about to provide satisfaction to their client
to achieve more goal, it should adopt more new technology considering their
client facilities based on the findings and conclusion draw from study following
recommendation has to be made towards Rastriya Banijya Bank Ltd

 Bank should try to reduce customer complain about ATM problem and
M-banking services etc.
 Bank should be carried out appropriate interest rate in order to attract more
saving from general public.
 Bank should make feasibility study whether it is suitable / possible to
provide student loan against their certificates.

44
 Bibliography

Gautam, R. R. (2008). Financial Institution and Market. Kathmandu : Ayam Publication.

RBB. (2018/2019).Anuual Report
Kandel, C. (2017).An Overview on Trends of Customer Counseling at Nabil Bank
[Link]
Smith, P. R. (2015). School of Communication and jouranlism. Retrieved 2017,
from student internship comments: [Link]

[Link]

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