Академический Документы
Профессиональный Документы
Культура Документы
LIMITED
An Internship Report
Submitted To:
Office of the Dean
Faculty of Management
Tribhuvan University
Submitted By:
Mohit Rijal
Nepal Commerce Campus
Exam Roll No.: 8633/11
T.U. Registration No.: 7-2-0025-0953-2011
RECOMMENDATION
DECLARATION
I hereby declare that the internship report entitled General Banking Services of Everest
Bank Limited submitted to Nepal commerce campus, Faculty of Management,
Tribhuvan University is my original work done for the partial fulfillment of the
requirement of Bachelor in Business Administration (BBA). This report is my own
original work and I undertake the full responsibility.
Mohit Rijal
ACKNOWLEDGEMENTS
This internship report entitled General Banking System of Everest Bank Limited is
prepared for the partial fulfillment of the requirement for the degree of Bachelor in
Business Administration (BBA) course in Nepal Commerce Campus (NCC) operating
under affiliation of Tribhuwan University (TU). I would thus like to thank TU and NCC
for providing me with an opportunity to be involved in the internship programme which
gave me the real time exposure to the work environment and bridge the gap between
theoretical learning and practical understanding to some extent.
A number of people have contributed to the completion of this report. mI would like to
thank Prof. Puskar Kumar Sharma, the programme Director of BBA at NCC and MR.
Krishna Thapa Deputy Director of BBA at NCC.. I would also like to thank Mrs. Kalpana
Pandey, the branch manager of Everest Bank Limited, Lagankhel for granting me the
permission to work in the organization. I express my sincere thanks to Mr. Ashish
Shrestha, my officer incharge during the internship. I would like to show my immense
gratitude to Ms. Asmita Basnet at Customer Service Department, Ms. Farida Manandhar,
Mr. Biswo Thapa and Mr. Rakesh Tandular at Cash and Remittance Department, Mrs.
Prity Baniya and Mrs. Sajana at Credit and Marketing Department and Mr. Jay Thapa at
Clearing Department and other stffs of Lagankhel branch for their cooperation and
guidance throughout my internship period.
Most of all, my thanks to Mr. Sudip Pandey, my instructor, for his guidance throughout
the preparation of this report. At last, I am grateful to all those people who have helped
me directly and indirectly during the internship period and in the preparation of this
report.
Thanking You
Mohit Rijal
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION.......................................................................................................1-5
1.1Background of Study......................................................................................................2
1.2Objectives of Study.........................................................................................................2
1.3Methodology of Study....................................................................................................2
1.3.1 Organization Selection........................................................................................3
1.3.2 Placement............................................................................................................3
1.3.3 Duration of Internship.........................................................................................3
1.3.4 Activities Done....................................................................................................4
Section 1.4 Limitations of Study.........................................................................................4
CHAPTER TWO
INTRODUCTION OF THE BANKING INDUSTRY....................................6-10
2.1 Meaning of Banking......................................................................................................6
2.2 Evolution of Banking.....................................................................................................6
2.3 History of Banking in Nepal..........................................................................................7
2.4 Current Situation of Banking in Nepal..........................................................................8
2.5 Opportunities and Challenges Faced by Banking Industry.........................................10
CHAPTER THREE
INTRODUCTION TO EVEREST BANK LIMITED...................................11-18
3.1 History of Everest Bank Limited.................................................................................11
Present Situation of the Bank............................................................................................12
3.3 Technology Used by the Bank.....................................................................................13
3.4 Institutional Thrust.................................................................................................13-14
3.4.1 Vision................................................................................................................13
3.4.2 Mission..............................................................................................................13
3.4.3 Objectives..........................................................................................................13
3.4.4 Future Plans and Strategies...............................................................................14
3.4.5 Awards...............................................................................................................14
3.5 Products/ Services offered by the Bank..................................................................14-18
3.5.1 Services Offered at Customer Service Department...........................................14
3.5.2 Services offered at Cash and Remittance Department......................................16
3.5.3 Services Offered at Clearing Department..........................................................17
3.5.4 Services offered at Credit & Marketing Department........................................18
3.6 Opportunities and Challenges to the Bank..................................................................18
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE................................................................19-26
4.1 Activities Performed in Customer Service Department.........................................19-22
4.2 Activities Performed in Cash and Remittance Department.........................................22
4.3 Activities Performed in Clearing Department.............................................................22
4.4 Activities Performed in Credit & Marketing Department...........................................24
4.5 Problems Identified and Solved.............................................................................24-26
CHAPTER FIVE
CONCLUSION/ LESSONS LEARNT..............................................................27-28
5.1 Summary..........................................................................................27
5.2 Lessons Learnt.............................................................................................................27
Bibliography
Appendices
LIST OF TABLES
Table No.
Tables
Page No.
Table 1.1
Duration of internship
Table 2.1
Table 3.1
12
ABBREVIATIONS
ABBS
AD
ATM
BBA
BS
Bikram Sambat
CSD
EBL
ECC
FIs
Financial Institutions
IT
Information Technology
NGO
NRB
OBC
SCT
SMS
SWIFT
SN
Serial Number
TT
Telegraphic Transfer
TU
Tribhuvan University
CHAPTER ONE
INTRODUCTION
Placement
During the two months of internship period the intern was placed in altogether four
different departments. They are Customer Service Department, Remittance & Cash
Department, Credit and Marketing Department &Cheque Clearing Department.
,
1.3.3 Duration of Internship
Internship gives an outline or frame of the activities performed in the organization and
teaches student how-to manage all the activities effectively and efficiently for the
prosperity of the organization. The intern was allowed to work for 2 month in different
department of EBL, Lagakhel Branch.
Table 1.1 Duration of Internship
SN
Departments
Duration in Weeks
Customer Service
Cheque Clearing
1. Inadequate Information
Staffs are not supposed to provide adequate information to intern. Information access was
limited. Only superficial information is supposed to be provided which are not sufficient
to know the bank deeply.
2. Time Period
The limitation of time to eight weeks is not sufficient enough to go through the in-depth
study of each and every department. Intern is not allowed to learn the overall banking
system.
CHAPTER: TWO
INTRODUCTION OF THE BANKING INDUSTRY
2.1 Meaning of Banking
Bank is a financial institution which deals with the monetary transactions. The major
function of the bank is to accept deposits and provide loans. The bank attracts deposits
from various investors by providing certain rate of interest, and investing the
accumulated funds as loans to others who are in need of fund by charging slightly higher
rate of interest than they provide to the depositors. Bank acts as an intermediary who
bridges the gap between the savers of fund and the users of fund.
According to Nepal Rastra Bank Act (2002) Banking means accepting deposits for the
purpose of lending or investment of deposits of money from the public, repayable on
demand or otherwise and withdraws by cheque draft order otherwise.
A bank generates a profit from the difference between the level of interest it pays for
deposits and other sources of funds, and the level of interest it charges in its lending
activities. This difference is referred to as the spread between the cost of funds and the
loan interest rate.
The bank of Venice, established in 1157 AD. is supposed to be the ancient bank.
Originally, it was not a bank in real sense being simply an office for the transfer of the
public debt. Subsequently, bank of Barcelona (1401 AD) and Bank of Geneva (1407 AD)
were established. The Bank of England, first English bank, was established in 1694 AD.
The bank of Hindustan established in 1770 AD is regarded as the first bank in India. The
modern Banking system is leading the world countries in the 19 th century. Therefore, this
trend of banking slowly began to increase and spread initially all over the world. Finally,
Nepal Bank Limited was in 1937 AD as the first bank in Nepal (Thapa, & Neupane,
2013).
Similarly, under the Agriculture Development Bank Act 2014 BS. Agricultural
Development Bank was established on 7th Magh 2024 BS (Thapa, & Neupane, 2013).
Later on Government become liberal and flexible, and amended many of its Acts and
Rules. A number of joint venture banks with the foreign investments started to come and
operate in Nepal. Consequently, Nepal Arab Bank (presently Nabil Bank) was
Established in 1984 AD. Similarly, Nepal Indosuez Bank was established as a joint
venture between Nepal and France in 1984 AD, Nepal Gindlays Bank (presently known
as Standard Chartered Bank) was established in 1987 AD as the country followed
economic liberalization; there was massive entrance of foreign banks in Nepal.
Himalayan Bank Limited as a joint venture with Habib Bank Limited of Pakistan was
established in 1993 AD. Likewise, Nepal SBI Bank as a joint venture with State Bank of
India was established in 1993 AD (Thapa, & Neupane, 2013).
Nepal Bangladesh Bank as a joint venture with international finance and commercial
Bank of Bangladesh was established in 1994 AD. Similarly, Everest Bank Limited was
established as the joint venture with Punjab National Bank in 1994 AD is the examples of
the expansion of the banking industry in Nepal. And by 2010 AD Nepal has opened its
doors for the foreign banks to operate in full ownership (Thapa, & Neupane, 2013).
Presently, there are 30 Commercial Banks that are operating in Nepal that has been
clearly shown in Appendix- I.
Banks with the collaboration of other financial institutions, ITs and other organization
are always trying to attract the customers. The different ages of banking sector clarifies
the improving current scenario of banking. It can be summarized as in following points:
Shift from traditional book keeping system to computerized system for keeping
records.
Use of various financial tools and software like NEWTON, PUMORI, FINACLE
Banking System (ABBS), web remit, Swifts, e-banking, mobile banking etc.
Shift to real estate investment, housing and other various schemes. But with the
tightened policy of central bank, it is slowed down.
Table 2.1 Financial Institutions in Nepal
SN
Financial Instutions
Numbers
Commercial Banks
30
Development Banks
75
Finance Companies
48
Micro Development
Banks
36
CHAPTER THREE
INTRODUCTION TO EVEREST BANK LIMITED
Share Capital
1921239051
2137387737
4419.78crore
4845.03crore
Deposits
5772.05crore
6210.8crore
Net Profits
1471117291
1549698560
(Source: EBL Annual Report, 2015)
3.4.2 Mission
To provide excellent professional services and improve its position as a leader in
work ethos.
To use the latest technology aimed at customer satisfaction & act an effective
catalyst for socio economic developments.
3.4.3 Objectives
It is non-interest bearing account which is opened purely for business purpose. Any
individual, profit or non-profit organization can open current account in Nepalese Rupee
or in different convertible foreign currencies.
Deposits or withdraw any amount after meeting the minimum balance as set by
the bank.
Not only for saving but also for convenience.
b) Call Deposit
In call account individual can park your excess fund for short period. Interest rate is
based upon volume, tenure, nature of transactions etc.
c) Saving Deposit
These accounts are designed to help individuals saving habit to meet the future
requirement. This is interest bearing account which remains liquid and safe. Individual
can plan and save their earned money for the future financial needs.
Easy to operate EBL savings account allows having instant access to your saving
d) Fixed Deposit
A fixed time deposit is the deposit of funds in a depository institution for a specific
period. This is fixed interest bearing deposit. Generally higher interest is paid for the
deposit of longer-term and vice-versa. There are two types of fixed deposit accounts and
they are cumulative and non- cumulative fixed deposit accounts.
EBL provides varieties of deposit schemes which are shown in Appendix- IV
2. Debit Card
EBL Debit Card is key to ultimate convenience regarding day to day monetary
transactions providing customers the power of real cash in form of card. Associated with
the Smart Card Technology (SCT), it facilitates wide sharing of ATMs under SCT
network. Everest Bank Ltd (EBL), a joint venture partner of Punjab National Bank (PNB)
is always committed towards excellent services for the people who believe in quality
banking. Introduction of EBL Debit card is a step in the same direction.
3. Other Facilities
Other facilities include SMS banking and e-banking services, handling customer queries,
merchant banking activities like underwriting of locker facility, standing instructions,
consulting services etc.
3.5.2 Services offered at Cash and Remittance Department
Below is the list of services offered.
1. Demand Draft
Demand draft is a cheque drawn by a bank on its own branches or on its correspondence
banks branches. At EBL, customers can easily remit funds to beneficiaries outside Nepal
through demand drafts. Customers can use drafts of PNB for remitting in Indian Rupees
to almost every corner of India.
2. Telegraphic Transfer (TT)
Telegraphic transfer (TT) is method where two banks exchange test keys to ensure
authencity of the messages between them. EBL has test key arrangements with various
international banks. At EBL, customers may use this service to remit/ receive funds.
3. Everest Remit and Moneygram Exchange are one of the most accepted methods of
remitting funds by Nepalese working outside the country. EBL has its own remit i.e
Everest Remit. At EBL all customers, a/c holders or none can receive funds remitted by
their relatives and friends from different part of the world within the minutes without any
hassle. Its customers can easily remit amount to India up IRS 10000 per day.
After receiving the cheque with deposit slips the necessary signs and stamps are to be put
on the deposit slip and returned back to depositor.
3. Electronic Clearing of Cheque
The received cheques are scanned using the ECC machine, the information about the
cheque are stored in a database. The information about the cheque is authorized and send
to clearing house for the settlement of payment.
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE
As intern is placed in different departments, various activities are performed related with
customer service, clearing, credit and remittance department. As an intern assigned to
different departments, various activities are performed. The activities performed can be
explained as follows:
During account opening time intern asks customer whether customer need other services
offered by bank like the ATM Card service, internet banking service, SMS banking
service etc and if customer is interested to get those services then customers are asked to
fill up respective forms to get those services.
Customers do not open account only; sometimes they close the existing account. Intern
provides account closing form to the customer, and then helps them to fill up the form.
After the form is filled completely, intern asks customer to return remaining cheques and
ATM. Intern forwards account closing form to CSD head.
2. Statement Printing
Any customer who wants to have bank account statement print is requested to fill up
bank account statement request form and submit it, then intern verifies account number,
account name, account holders signature and then provides respective bank account
statement print to respective customer.
3. Scanning and Photocopy of Documents
Various documents like specimen signature cards, photographs, citizenship, passports etc
should be properly scanned and photocopied and entered into bank system so that it could
be accessed easily when it is needed. Intern does the above mentioned tasks.
4. Handling Customer Queries
Different queries of different customers should be handled in a very effective way so that
customer gets satisfactory solution of their queries. While dealing with customers first we
need to listen to the customer patiently and understand their queries or problems only
after that we should provide the appropriate information or the solution as per customers
need in very polite manner. If intern do not have the appropriate information about the
customers queries then intern should ask to other staff and provide appropriate
information to customer as quickly as possible.
5. ATM Card Issue
While opening a bank account, customer is inquired about the need of ATM Card. If
customer is willing to take ATM card service then ATM form is be given to customer to
fill. Once the form is filled up intern will verify it and send it for the further processing.
Customer is requested to come and collect their ATM card in one week.
After one weeks bank receives the ATM card from head office of the respective customer
if customer requests for VISA, SCT card is provided after a day of account opening.
When the customer comes to collect the ATM card, CSD staff verifies the signature of the
customer and intern issues the ATM card to the respective customer along with ATM Pin
number.
6. Chequebook Issue
When account holder used the entire cheque leaves bank issue cheque book to the
customer. When customer fill up the cheque requisition slip that is attach along with
cheque book. Cheque books are usually made in a day and are arranged in a
chronological order. In the course of this activity intern prepares chequebook,
acknowledgement letter, register the customer information and others.
7. Phone Communication Handling
The CSD department is responsible for handling phone calls coming from outside. Intern
is responsible to answer questions of the customers and provide account related
information via telephone. After receive phone calls transfer to the branch manager,
operational in charge and cash department and other departments.
8. Signature Change
If any customer is willing to change customer signature for any genuine reason, a form
called SPECIMEN SIGNATURE CARD is given to fill it, CSD staff will verify the
form along with the documents, before that inter reviews the document.
9. Instructing to Fill up Forms for Different Reasons
There are many other works to be done in the bank by intern. Some new people come to
the bank for cash deposit. They are well drilled to fill up the voucher consequently.
Similarly, some people approach there if their account is dormant. The account becomes
dormant if no transaction is made for the period of six month. For these types of
customers intern provides form and instruct them to fill up for activating their account.
As such in case of lose of debit card, people come there and they are again privileged by
a form in order to get a new card. This all is executed by intern with no negligence.
10. Filing and Documentation
Filing and documentation are very important task that the CSD staffs do. The entire paper
work has to be done simultaneously to the computer work. At the end of the office day
intern is responsible to file the documents that has been approved the whole day.
Documents includes: account opening and closing form, dormat form, acknowledgement
form, debitcard form, SMS banking form and others.
search the loan clients files, prepares necessary documents that is necessary to get loan at
EBL. Intern enquires about different loan schemes to the clients. Intern calculated the
installment amount of some clients and instructs them about the process of repayment of
loan. Intern makes photocopy of necessary loan documents. Intern assisted the clients in
opening flexi account that is necessary to obtain loans. Intern prepares the document of
institutional loan clients. Intern handles the telephone at credit department and forwarded
it to respective staffs.
Communication Problem
Grievances Handling
3.
4.
Hesitations of Customers
5.
It is most important problem among the problems. If it is not handled properly, it directly
affects the banks image; as a result customers are dissatisfied. They will stop transacting
with the particular bank and switch to other bank which are eagerly waiting to provide
them service.
To solve this problem customer service department can play the important role, as this
department is mainly in interaction with their customers. So, as a staff at CSD intern
interacts with customers by being keenly interested in listening their grievances properly
and try to solve them. If the problem is critical then it should be forwarded to CSD head
for solution.
3. Unsystematic Handling of Things
Unsystematic management leads to failure. Unsystematic handling of thing is also a
problem .It is not a big problem, but if it is not managed properly and timely it directly
affects the efficiency of baking activities.
To manage this problem things were managed in a systematic way, so they are readily
available wherever and whenever needed creating a mark to efficiency.
For e.g. At CSD cheques order request are taken and they are issued. Main problem was
that when the customer visits us and request for their cheque books, it would take a long
time to search for the respective cheque book. This had been a time consuming act for
customers resulting to their dissatisfaction. To handle this problem cheques were
alphabetically arranged in a date wise format. Issued cheques of the particular date were
tagged with the similar date and kept in one side. This leads to increase efficiency and
customer does not have to wait for long.
4. Hesitations of Customers
It is one of the problems faced by most of the bank nowadays. It is difficult to identify
since it is related with psychology aspects of customers (customers behaviors). Some
customers hesitate to convey their problem to the related staff. For e.g. sometimes if
customer do not know how to feel up the forms or even if they have to ask a piece of a
simple information, they prefer not to inquire about it. The bank cannot read the mind of
each and every customer who visited the bank.
To solve this problem taking initiation to ask customers regarding their problem
frequently and create the customers friendly environment so that they will feel at ease and
themselves convey their problem.
5. Work Load Problem
At the opening and closing time work load is high. So, sometimes it is difficult to provide
immediate services to customers, which leads to dissatisfaction of customers. To solve
this problem, increase in the numbers of working hands directly helps to reduce the work
load. At the same time more customers are facilitated with banking facilities, which
directly benefited the bank.
CHAPTER FIVE
CONCLUSION/ LESSONS LEARNT
5.1 Summary
The internchip period at EBL was a successful one, intern learned about general working
procedure of banks. Customer Service Department is called as front desk as customer
first contact in this department for their queries which is one of the most important
departments of any bank. The department is responsible for providing the surface level
assistance to the customers. Cash and Remittance Department is there to provide cash
related facilities to its customers. Similarly clearing department is another department
responsible for settling the interbank transaction. Credit Department is there to provide
credit facilities to customers. All these departments of EBL are working to make the
organization number one in the industry. Intern is there for two months period wherein
the internee learns about general banking activities of the bank.
All in all, Everest Banks CSD, cash and remittance department, clearing department and
credit department are good enough to lead the bank to the success. EBL is excellent in
terms of its services, despite with some pros and cons with the issue related to customer
satisfaction. It has an opportunity to increase its market shares serving large number of
customer
Acquire knowledge about the real working environment and the different aspects
of the managerial practices in the commercial banks of Nepal.
The importance of the proper organization culture and its effect on the
professional working environment. This relates to the effective communication
skills, team work, well-mannered behavior and the degree of social and
professional environment between the employees as well as with the customer.
The customer of any business organization is the key to the success of the
organization. So, the organization should not forget its existing customer and try
to retain its customer as well as attract new customer.
Learned about the system of cash collection and disbursement of banks and
maintaining records of those.
Procedures for forms fulfillment of new account, closing a/c and or for ATM
card.
About the requirements of documents needed for opening, closing and applying
for ATM card.
Knew how balance of customers is checked and how balance statement is printed.
Knew how a/c verification from old a/c number is done and how printing of
checks is done.
To use scanner for scanning a/c holders photo, a/c number, phone number and
authorized signature.
Knew about various loan schemes and procedures to be followed in getting loan.
Apart from above mentioned points, internee learnt various interesting things which will
help in every step of success.
BIBLIOGRAPHY
Saunders, A., & Cornett, M. M. (2007). Financial markets and institutions. New Delhi:
Tata McGraw Hill Education Private Limited.
Thapa, K., & Neupane, D.k. (2008). Banking & insurance. Kathmandu: Asmita Books
Publishers & Distributors (P) Ltd.
APPENDICES
Names
Nepal Bank Limited
Operation Dates
1937/11/15
2.
1966/01/23
3.
1968/01/02
4.
1984/07/16
5.
1986/02/27
6.
1987/01/30
7.
1993/01/18
8.
1993/07/07
9.
1994/06/05
10.
1994/10/18
11.
1995/03/12
12.
1996/10/14
13.
1998/07/17
14.
2000/10/03
15.
2001/04/03
16.
2002/04/03
17.
2002/12/24
18.
2007/01/02
19.
2007/06/21
20.
2007/09/24
21.
2007/10/12
22.
2007/10/12
23.
2008/08/25
24.
2008/06/05
25.
2009/05/07
26.
2010/04/05
27.
2010/07/23
28.
Civil Bank
2010/11/25
29.
2011/01/23
30.
Sanima Bank
2012
S.No.
1
2
3
4
5
Board of Directors
Position
Members
Mr.B.K. Shrestha
Mr.Ved K. Shrestha
Mr. Arun Man Sherchan
Mr. Bal Gopal Baidya
Mr. Bishnu Mohan Panda
Dr. Rakesh Gupta
Mr. Nabin Bhakta Shrestha
Mr. Shiva Sharan K.C
Members
Mr. A.K. Ahluwalia
Mr. A.K. Bansal
Mr. Rajesh Gautam
Hum Nath Gurang
Pramod Raj Sharma
Chairman
Director
Director
Director
Director
Director
Director
Director
Representative
Promoter
Promoter
Promoter
Promoter
PNB
PNB
Public Shareholders
Public Shareholders
Management Team
Position
CEO
DY. General Manager
DY. General Manager
DY. General Manager
Company Secretary
Capital
Authorized
Issued
Paid up
Amount in Rs.
2000000000
1921239051
1921239051
Account Types
Normal Savings (General)
Existing Rate
2% p.a.
Revised Rate
2% p.a.
2.
Savings- Shareholder
2% p.a.
2% p.a.
3.
Savings- NRN
2% p.a.
2% p.a.
4.
Pension Savings
2% p.a.
2% p.a.
5.
Freedom Savings
2% p.a.
2% p.a.
6.
Student Savings
2% p.a.
2% p.a.
7.
Saugat Savings
3%
2.50%
8.
3.25%
2.50%
9.
3.50%
2.50%
10.
Baal Bachat
3.50%
3%
11.
Naari Bachat
3.50%
3%
12.
Supreme Savings
3.50%
3%
13.
Super Savings
3.50%
3%
14.
Remit Saving
3.50%
3.25%
15.
Salary Saving
3.50%
3.25%
16.
Saving Premium
3.50%
3.25%
17.
4%
3.25%
18.
4%
4%
19.
Staff Savings
4%
4%
Account Types
USD Savings
Existing Rate
0.75%
Revised Rate
0.75%
2.
Euro Savings
0.50%
0.50%
3.
GBP Savings
0.50%
0.50%
Account Types
A/c with existing rate of above 4% p.a.
Revised Rate
Maximum up to 4%
2.
Maximum up to 3%
3.
Maximum up to 2%
4.
No change
5.
Standard Rate
Maximum up to 1%
*the revision shall not be applicable for contracted accounts viz. NTC & NEA.
Call Deposit Account (FCY)
SN
Account Types
1.
USD Call
Existing
Rate
Maximum
1%
Revised Rate
Maximum
0.75%
Period
1.
Existing Rate
Individual
Institutional
2.50%
2.50%
2.
3.00%
3.00%
2.50%
2.50%
3.
4.00%
3.50%
3.50%
3%
4.
1 year to 10 years
5.00%
4.00%
4.50%
4.00%
Above revision shall be applicable with effect from 20th July 2015
Revised Rate
Individual
Institutional
2%
2%