CHAPTER - 1 PROFILE OF THE ORGANIZATION

Nabil Bank Limited, the first foreign joint venture bank of Nepal, started operations in July 1984 as the first joint venture bank in Nepal, Dubai Bank Limited. Dubai (Later acquired by Emirates Bank International limited, Dubai) was the first joint venture partner of Nabil. Nabil Bank limited had the official name Nepal Arab Bank Limited till 3lst December 2001. Nabil was incorporated with the objective of extending international standard modern banking services to various sectors of the society. Pursuing its objective, Nabil provides a full range of commercial banking services through its 51 points of representation across the kingdom with its head office located at Beena Marga, Durbar Marga, Kathmandu, Nepal and over 170 reputed correspondent banks across the globe. Moreover, Nabil has a good name in the market for its highly personalized services to the customers. At the time of commencement it had Rs 100 million as Authorized Capital. Now its authorized capital is above 2 billion. Nabil, as a pioneer in introducing many innovative products and services which includes business banking, privilege banking, bancassurance, personal lending, remittance, trade finance, clean bills and others and marketing concepts in the domestic banking sector, represents a milestone in the banking history of Nepal as it started an era of modern banking with customer satisfaction measured as a focal objective while doing business. Operations of the bank including day-to-day operations and risk management are managed by highly qualified and experienced management team. Bank is fully equipped with modern technology which includes ATMs, credit cards, state-of-art, world-renowned software from Infosys Technologies System, Bangalore India, Internet banking system and Telebanking system.
The Board of Directors of Nabil Consists of:S.N. Name Title

1 2. 3. 4. 5. 6. 7.

Mr. Krishna Bdr. Manandhar Mr. Shambhu Prasad Poudyal Mr. Dayaram Gopal Agrawal Mr. Krishna Prasad Acharya

Chairman Director Director Director

Mr. Nirvana Kumar Chaudhary Director Mr. Mohiuddin Ahmed Mr. Ashish Sharma Mr. Jagadish Prasad Kanoria Director Director Alternate - to Director Mohiuddin Ahmed

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Mr. Tabith Awal

Alternate - to Director Nirvana Kumar Chaudhary

The Management Team consists of :Mr. Anil Gyawali (Chief Executive Officer) Central Operations Mr. Kapil Sharma Ms Neelam Tuladhar Mr. Jyoti K.C. Mr. Roshan Koirala Finance & Planning Mr. Krishna Dutta Bhattarai Legal and Support Mr. Binay Regmi Mr. Rajesh Upadhyaya Mr. Basanta Dhakhwa Mr. Rajeshwor Lal Shrestha Risk Units Mr. Anil Khanal Mr. Rajendra Bahadur Malla Ms. Neena Thapa Mr. Binay Nath Neupane Mr. Iswar Man Shrestha Mr. Babu Ratna Bajracharya Mr. Kanhaiya Lal Rajwant

Chief Operating officer Head - Branches and Distribution Network Head - Central Trade Operations Head - Human Resources

Chief Financial Officer

Head - legal & Support Head - Information Technology Manager - IT support Head - Administration

Chief Risk Officer Head - PLU Credit Head- Credit Risk Management Sr. Credit Analyst Credit Analyst Credit Analyst Head - OR, KYC & AML

Investment Management and International Banking Mr. Bhuvan Dahal Chief Investment Officer Mr. Mohan Subba Head - Global Markets Mr. Praveen Raman Parajuli Head - Merchant Banking Mr. Satish Sagar Dawadi BM LP & Head- Bancassurance

Corporate Banking & Project Financing Mr. Deepak Shrestha Mr. Dripu Dhoj Adhikari Ms. Namita Dixit Head - NPA and CAS Head - Corporate Banking and Infrastructure Sr. Relationship Manager, Kathmandu
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Mr. Sanjay Nepal Mr. Keshav Bdr. Nepali Mr. Nischal Pandey Mr. Pushkar Bhattarai Mr. Gyanendra Pratap Shah Mr. Yugesh Lal Bijukchhe

Sr. Relationship Manager, Kathmandu Relationship Manager, Birgunj Relationship Manager, Kathmandu Relationship Manager, Biratnagar Sr. Relationship Manager Relationship Manager

SME, Micro and Personal Lending Mr. Ramesh Lohani Mr. Gyaneshwor Acharya Mr. Saroj Pyakurel Mr. Pankaj Prakash Nepal Head - Retail & SME Business Head - SME Head - PLU Sr. Relationship Manager

Deposit Relation Management & E - Channels Mr. Binay K. Regmi Mr. Suresh P. Tripathee Mr. Niraj Sharma Mr. Kabindra P. Shrestha Internal Audit Ms. Anjuli Shrestha Head - Internal Audit Head- Deposit Relation Management Sr. Relationship Manager Head - Inward Sourcing Head Card Division & E-Channel Sr. Relationship Manager

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CHAPTER - 2 PROFILE OF THE DEPARTMENT (S) TRAINED IN

Customer Service Department is the department which provides customer's services, information and look after theirs grievance. The mission of the Department of Customer Services is to meet the needs of the public by providing quality service, interacting by phone, electronically, or in person. A customer service department interacts with a companys customers to provide them with information to address inquiries regarding products and services. In addition, they deal with and help resolve any customer complaints. For instance, a customer department may assist you in opening an account or help you to resolve a problem if you cannot access your account or if your order never arrived. Usually, customer service departments gather their information via a telephone call. Services of customer service department of a bank which I had learned during internship: Answer customer's questions, as well as question customers to obtain full understanding of what information is being requested. Analyze customer needs and demand and try to fulfill those demands. A/c opening in various schemes. To deal with customer. To accept debit card application, cheque request. To mail a/c opening request, card issuing request, a/c closing request to head office (CPC). To deliver cheque book to customer. To accept various applications of customers regarding signature change, undispensed cash, scheme change, re-pin of debit card, card replacement, card activation, Activation of dormant a/c etc. Promote bank products and services. Build customer relationships. Maintain and manage existing accounts. Respond to customer inquiries and resolve. Maintain customer database and update periodically. Assist customers in depositing and withdrawing cash. Refer complex issues to the management.

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Organization chart of Branch office of Nabil Bank Ltd.

Branch Manager Operation Incharge Cash Department Customer Service Department

Remittance Department

Loan Department

Clearance Department

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CHAPTER - 3 LAYOUT OF THE DEPARTMENT AND TOOL USED

3.1 Layout of the department The Kuleshwor branch of Nabil Bank Consists of five departments which are Operation, cash, remittance, loan, clearance, customer service department. The full details of department with their respective heads are as follows:-

S.N 1 2 3 4 5 6 6

Name Kishor Regmi Chanda Bajracharya Prakash Shrestha Binay Adhikari Banita D.C. Iswi Palikhey Rukman Shrestha

Department Branch Head Operation Cash & Remittance Loan & Clearance Cash CSD .

Designation Branch manager Operation incharge Head Teller Junior Assistant Junior Assistant On the job training Driver

Table no- 1 (layout of organization) 3.2 Products/Services offered by the Organization The products and services of Nabil bank have been designed in a unique manner which focuses on catering all the needs of the target customers. The bank aims on being chosen as the first bank, to satisfy all the banking needs of the customers. The bank ensures its clients with the positive attitude towards the clients needs and strong mutual relationship, the bank will be able to nurture the clients business and dedicate itself towards the clients. Some of the products and services that the bank offers are; Deposits Following types of accounts can he opened at any NABIL branches upon completion of simple documentary requirement. All the accounts can he opened in various currencies (against which rate are provided) subject to ruled of opening and fulfilling the required documents. Savings
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 Current Fixed Call

Guarantees NABIL Bank issues guarantees and Bonds on behalf of customers to the beneficiaries in Nepal. Upon fulfillment of requirement, NABIL, also arranges issuance of guarantees in the name of foreign beneficiaries through reputed international banks. Credit Cards NABIL is the first bank in Nepal to issue Rupee (valid in Nepal and India) and international valid worldwide) Master card, cards in Nepal, a global prestigious service to its esteemed clients NABIL is also expanding credit and facilities issuing visa credit card very soon. Tele-banking Telephone banking is another product provided by NABIL bank to its customers. Under this arrangement customer can know the balance of his account through telephone with out human assistance. Western Union Money Transfer NABIL bank has established unique money remittance system with western union financial service whereby money can be remitted anywhere in the world within minutes, through online computer system funds can world. Nepali wage earners abroad can send money to their near and dear ones in Nepal within a very short time. By using the above services, you can now send and receive money within minutes in 165 countries in the world. SWIFT (Society for Worldwide Inter Bank Financial Telecommunication) NABIL has started Worldwide transfer of fund by this fast and efficient funds transfer and messaging system. Messaging and fund transfers are carried through SWIFT with minimum time and cost. Safe Deposit Locker NABIL provides safe deposit lockers to keep valuables safety at a minimum cost. Presently, this facility is available at Kantipath and Kamaladi offices.

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Automated Teller Machines (ATM) NABIL has launched the ATM facility to its account holders to enable fast withdrawal of funds in account holder need not wait long hours for withdrawing money and sign cheques anymore. A simple card with a unique PIN number known only to the account holder will suffice. Other facilities The bank provides the facilities for the customer like deposit services, loans and advances, consumer finance, cash management. Remittance services etc.

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CHAPTER 4 OPERATIONS
4.1 Activities/Functions Performed During the Internship During the period of internship, I was involved in the Customer service departments of Nabil Bank at Kuleshwor Branch. Process through which organization goes to complete those activities and the processes through which I followed to complete all those activities, various tasks performed and the roles where I was involved in:

4.2 Functions at Customer Service Department: Functions related with cheque books: Nabil Bank accepts different kinds of deposit from customers. Some are current deposit or demand deposit, saving deposit, fixed or time deposit, margin deposits and call deposits. When customers open above mentioned deposits, banks provide cheque to them. Under the department of CSD, I used to manage the disbursement of cheque books. The main objective of this function is to learn about the ordering process of the customer, and how the customer receives cheque books finally and another objective is to add customer satisfaction through the prompt delivery of services. Functions related with Account opening: Providing information to the customers about different types of accounts or the schemes of accounts. Providing information to the customers as well as potential customers about the silent features and benefits of various kinds of accounts. Satisfying the queries of the customers regarding opening a new account and procedures and documents needed for opening new accounts. Account opening form preparation and filling. Keeping the records of the customers and making copy of their details. Transforming new account records to the customer service department for further operation of issuing check books and ATM cards.

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Assisting customers for creating a good environment to open new accounts Providing information to the customers about the procedures of depositing, receiving check books and ATM cards after opening new account .

Documents requiring for Account Opening: Individual Saving / Current Account Citizenship/ Passport Photograph(s) of Authorized Signatures Location Map Mandate form, No Objection Letter and Citizenship/Passport of Authorized Signatures if account operator other than account holder Joint Saving / Current Account Citizenship/ Passport of all account holders Mandate form, No Objection Letter and Citizenship/Passport of Authorized Signatures if account operator other than account holder Location Map Photograph(s) of Authorized Signatures Corporate Account( Pvt. Ltd & Public Ltd) MOA (Memorandum of Articles) AOA (Association of Articles) Company Registration Certificate PAN Board Resolution Covering Letter Citizenship/Passport of Authorized Signatures Photograph(s) of Authorized Signatures Location Map Tourism / Travel Trade Industries Pvt. Ltd MOA AOA Company Registration Certificate PAN Ministry of Culture Tourism & Civil Aviation License to WORK AS TRAVEL/TREKKING AGENCY Covering Letter Board Resolution Citizenship/Passport of Authorized Signatures NRB permit for Foreign Exchange Transaction if FCY account 10)Photograph(s) of Authorized Signatures Location Map Sole Proprietorship Account Registration Certificate PAN Citizenship/Passport of Authorized Signatures Covering Letter Photograph(s) of Authorized Signatures Location Map
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Mandate form and Citizenship/Passport of Authorized Signatures if account operator other than proprietor Partnership Account Registration Certificate PAN Registered partnership deed Citizenship/Passport (of partners) Citizenship/Passport of Authorized Signatures Covering Letter Photograph(s) of Authorized Signatures Location Map Mandate form and Citizenship/Passport of Authorized Signatures if account operator other than partners Institutions/ Associations/Societies/NGO/INGO Account Registration Certificate Constitution & By-Laws Board Resolution Registration with Social Welfare Council Registration / Permission from Ministry of Education (if the institution is school or college) Citizenship/Passport of Authorized Signatures Covering Letter Photograph(s) of Authorized Signatures Location Map 10)PAN Certificate ( if applicable) Joint Venture Company Registration Certificate of both companies (separate) MOA & AOA of both companies ( separate) Joint PAN Certificate (Joint issued by NG with all the venture companies names mentioned) Board Resolution of the partner companies authorizing o member to act in favour of their company regarding account opening and operation o Board Resolution by the nominated members to open and operation of account Or Joint Board Resolution to open & operate JV account authorized by all The shareholders (authorized) of all the companies 5. Power of Attorney ( Joint) to authorize the operators 6. Identification documents & photos of the account operators 7. Covering letter from JV Company to open account 8. PAN certificates of all companies ( separate) 9. Photograph(s) of Authorized Signatures 10. Location Map

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Interpretation of sources of information, collected information To understand about different works, I personally watch the way of doing work, ask immediate supervisor, read policy manual, ask other people in senior level who have already good experienced in those task. Also by looking different forms I was able to collect information and data required for understanding the functions of CSD such as; Process of taking orders of cheque books, way to register check books and ATM cards, process of printing checks, factors that should be considered while managing and disbursing check books and ATM cards, process of filling different forms used for different purposes Information about the other departments.

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CHAPTER 5 SWOT ANALYSIS

None of the organizations is perfect in each and every way. I here are some weaknesses and threats, which affect the organizations performance. It may have lots of strength to be proud of but besides with some weakness and threats as well. And the organization does not remain same forever there will be lots of opportunities in order to expand the transactions. So NABIL has also its strength to be proud, some weakness to be recovered and threats to be faced patiently.

Strength

a. NABIL has 250 correspondent relationships besides numerous drawing arrangements with 75 banks in 40 countries of the world. Nabil has also drawing arrangement with the exchange companies and bank besides many others like Habib Qatar International Exchange Limited, Doha, Qatar. b. To add its strength. NABIL has vast network system in the nation thus helping customer to transact through bank from place to place. It has 17 branches nationwide which is the highest number of any joint venture bank in Nepal. It is the only bank to operate inside international airport of arrival and departure lounges. c. Nabil is well known for providing highly personalized services to its customers. It provides different services like ATM, credit cards, Tele banking service, safe deposit locker etc. It has also introduced a number of attractive deposit skills. d. Human resources in NABIL are well trained and they are dedicated to the bank too. NABIL is providing high remuneration and other benefits as well to its staff. e. NABIL is well supplied with latest technology. Computer does most of banking services. Thus the services of the bank are prompt and accurate. The bank is capable to maintain the standard. Weakness:

a. The Increase in the number of branches increases the cost operation. Administration expenses for personnel etc. are increased. b. The political instability in the country can he considered another weakness of the bank. c. Too much dependency in computers is not considered to be reliable.

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d. NABIL pays high interest rates on deposits. For this reason the bank also charges high interest rates on credit, which has bad impact in investment situation in nation. e. Staff is unwilling to give even required information. It seems that they dont want to cooperate with once who are not really its customers. Opportunities

a. A lot of people deposit their fund in this bank due to its skill in attracting people by adopting attractive policies like high interest rate, prompt services, credit card service, ATM etc. b. Staff can perform their work more efficiently with the help of computers. The environment of the bank is sound which helps to enhance its stall bar its better profitability. c. People in various sectors get employed through this bank, which has highest number of branches among joint venture banks in the nation. d. Citizens of underdeveloped country like Nepal get the favorable chance to show their inner skills and talent. e. The policies of the HMG and NRB rules and regulation always give confidence to the banking sector to uplift the economy of the nation. Threats

a. Banks must land and invest its fund to parties having good reputation. Otherwise the bank will have to regret later on. b. Excess government pressure may create irregular banking transaction, which leads to bad reputation of the bank. c. The economic condition of country is deteriorating. d. There is increasing number of competitions. Now there are 13 commercial banks, which include 9 joint venture and 45 finance companies. e. The bank should be discouraged to open account for the individuals or firms having bad reputation. It May be a threat, which can ruin the bank.

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CHAPTER 6 CONCLUSION AND RECOMMENDATION

6.1 Summary

A bank is an institution which deals in money. A bank is like a reservoir. It draws surplus money from the people who save and lend them to the people who want to use it for productive purpose. In this process the bank earns commission. The rate of interest paid to the depositors is generally lower than the rate charged to the borrowers. The difference between these two rates of interest is the profit of the bank. Deposit collection is the main function of commercial bank.

The present study has been undertaken to examine and evaluate the financial performance of NABIL. The financial statements of five years that is from have been examined for the purpose the study. The study has resorted mainly to secondary data that has been first processed and analyzed comparatively. Individual interview with the management personnel has been taken whenever necessary. This study is exploratory as well as analytical sometimes.

NABIL was established in 12th July 1984, which was the first joint venture bank in Nepal. Among many joint venture banks, it is a leading one, which is always running in profit due to its proper management and good policies. Data that I have presented is all from the secondary sources, which are in the annual reports or other printed matters.

A customer can be account holder when he opens account. There are the numbers of rules and procedures regarding opening different types of accounts. The interest rates on different accounts are different.

6.2 Conclusion

i.

ii.

The deposit of NABIL is in increasing trend. The share of fixed deposit is more than that of savings, current, margin and other deposits in the deposit mix of NABIL. The trend of interest bearing deposit has been gradually increasing but there has been more fluctuation in non-interest bearing deposits, similarly, there is also more fluctuation in interest expenses on total deposits.
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iii.

iv.

v.

vi. vii.

The trend analysis shows that the deposit of NABIL is in increasing trend. In addition to this, the bank is being able to satisfy its customers and in providing higher quality and newer services to them. Interest expenses on deposit of NABIL during the year 2063 are also quite high but there has been a decreasing trend of interest expenses till the year 2068. Similarly, the cost of deposit during the year 2063 is also quite high but there has been decreasing trend in the later year. So, it helps to increase the efficiency to bank. By the analysis of deposit landing we can conclude that the bank is able to utilize its deposits a greater extent. Thus, the banks performance is effective in profitability and towards the customizing, Era and may attract more customers.

6.3 Recommendations

i.

ii. iii. iv.

v. vi.

Although NABIL has a strong financial base and capital structure as well as good market status and reputation in order to attract new customers and increase deposit collection NABIL should introduce new schemes. Customer services should be diversified and should further be accommodated. Interest rate on deposit should be competitive with other commercial banks. The bank should aim towards increasing its customers but it must also provide the quality services to the present customers. For this the bank must make plans and policies keeping customers in mind. Bank should also pay attention towards the priority sector and industrial sector for lending loans to develop the economic condition of the country. Bank should provide more facilities to the staff, it has to provide job satisfaction, training and should encourage its staff.

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